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[House Report 115-234]
[From the U.S. Government Publishing Office]

115th Congress  }                                           {  Report
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                           {  115-234

_______________________________________________________________________

  FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2018

                               __________

                              R E P O R T

                                 OF THE

                      COMMITTEE ON APPROPRIATIONS

                        HOUSE OF REPRESENTATIVES

                             together with

                            ADDITIONAL VIEWS

                                  AND

                            DISSENTING VIEWS

                                     
                 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                     

 July 17, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
              
              
                       U.S. GOVERNMENT PUBLISHING OFFICE
                
26-263                          WASHINGTON: 2017             
              

115th Congress  }                                           {  Report
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                           {  115-234

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

 
  FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2018

                                _______
                                

 July 17, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Graves of Georgia, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                                  and

                            DISSENTING VIEWS

                        [To accompany H.R. 3280]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for financial services and general government 
for the fiscal year ending September 30, 2018.

                        INDEX TO BILL AND REPORT

                               _________

                                                            Page Number

                                                            Bill Report
Title I--Department of the Treasury........................     2
                                                                      4
Title II--Executive Office of the President and Funds 
    Appropriated to the President..........................    31
                                                                     25
Title III--The Judiciary...................................    46
                                                                     35
Title IV--District of Columbia.............................    57
                                                                     41
Title V--Independent Agencies..............................    67
                                                                     45
Administrative Conference of the United States.............    67
                                                                     45
Consumer Product Safety Commission.........................    67
                                                                     45
Election Assistance Commission.............................    69
                                                                     47
Federal Communications Commission..........................    70
                                                                     47
Federal Deposit Insurance Corporation--Office of Inspector 
    General................................................    71
                                                                     49
Federal Election Commission................................    71
                                                                     49
Federal Labor Relations Authority..........................    72
                                                                     49
Federal Trade Commission...................................    73
                                                                     50
General Services Administration............................    74
                                                                     51
Harry S Truman Scholarship Foundation......................    87
                                                                     60
Merit Systems Protection Board.............................    87
                                                                     60
National Archives and Records Administration...............    88
                                                                     61
National Credit Union Administration.......................    87
                                                                     62
Office of Government Ethics................................    89
                                                                     63
Office of Personnel Management.............................    89
                                                                     63
Office of Special Counsel..................................    94
                                                                     66
Postal Regulatory Commission...............................    95
                                                                     67
Privacy and Civil Liberties Oversight Board................    95
                                                                     67
Public Buildings Reform Board..............................    96
                                                                     68
Securities and Exchange Commission.........................    96
                                                                     68
Selective Service System...................................    98
                                                                     70
Small Business Administration..............................    99
                                                                     70
United States Postal Service...............................   104
                                                                     74
United States Tax Court....................................   105
                                                                     75
Title VI--General Provisions--This Act.....................   107
                                                                     75
Title VII--General Provisions--Government-wide: 
    Departments, Agencies, and Corporations................   121
                                                                     78
Title VIII--General Provisions--District of Columbia.......   153
                                                                     82
Title IX--Other Matters....................................   165
                                                                     83
Title X--Financial Institution Bankruptcy..................   252
                                                                     83
Title XI--Additional General Provision--Spending Reduction 
    Account................................................   253
                                                                     83
House of Representatives Report Requirements...............
                                                                     83
Dissenting Views...........................................
                                                                    535
Additional Views...........................................
                                                                    539

                         Highlights of the Bill

    The Financial Services and General Government Subcommittee 
has jurisdiction over a diverse group of agencies responsible 
for regulating the financial and telecommunications industries; 
collecting taxes and providing taxpayer assistance; supporting 
the operations of the White House, the Federal Judiciary, and 
the District of Columbia; managing Federal buildings; and 
overseeing the Federal workforce. The activities of these 
agencies impact nearly every American and are integral to the 
operations of our government.
    The bill provides a total of $20,231,000,000 in 
discretionary budget authority for fiscal year 2018 which is 
$1,284,000,000, or 5.97 percent, below the fiscal year 2017 
discretionary allocation. The bill is $2,468,000,000, or 11 
percent, below the Administration's request.

                         TOTAL BUDGET AUTHORITY
                             ($ in millions)
------------------------------------------------------------------------
                                  FY 2017      FY 2018        FY 2018
                                  Enacted      Request    Recommendation
------------------------------------------------------------------------
Discretionary.................       21,515       22,699          20,231
Mandatory.....................       21,937       22,357          22,357
------------------------------------------------------------------------

              OPERATING PLAN AND REPROGRAMMING PROCEDURES

    The Committee will continue to evaluate reprogrammings 
proposed by agencies. Although reprogrammings may not change 
either the total amount available in an account or the purposes 
for which the appropriation is legally available, they 
represent a significant departure from budget plans presented 
to the Committee in an agency's budget justification and 
supporting documents, which are the basis of this 
appropriations Act. The Committee expects agencies' 
reprogramming requests to explain thoroughly the reasons for 
the reprogramming and to include an assessment of whether the 
reprogramming will affect budget requirements for the 
subsequent fiscal year.
    Section 608 of this Act requires agencies or entities 
funded by the Act to notify the Committee and obtain prior 
approval from the Committee for any reprogramming of funds 
that: (1) creates a new program; (2) eliminates a program, 
project, or activity; (3) increases funds or personnel for any 
program, project, or activity for which funds have been denied 
or restricted by the Congress; (4) proposes to use funds 
directed for a specific activity by either the House or Senate 
Committees on Appropriations for a different purpose; (5) 
augments existing programs, projects, or activities in excess 
of $5,000,000 or 10 percent, whichever is less; (6) reduces 
existing programs, projects, or activities by $5,000,000 or 10 
percent, whichever is less; or (7) creates or reorganizes 
offices, programs, or activities.
    Additionally, the Committee expects to be promptly notified 
of all reprogramming actions which involve less than the above 
mentioned amounts if such actions would have the effect of 
significantly changing an agency's funding requirements in 
future years, or if programs or projects specifically cited in 
the Committee's reports are affected by the reprogramming. 
Reprogrammings meeting these criteria must be approved by the 
Committee regardless of the amount proposed to be reallocated.
    Section 608 also requires agencies to consult with the 
Committees on Appropriations prior to any significant 
reorganization or restructuring of offices, programs, or 
activities. This provision applies regardless of whether the 
reorganization or restructuring involves a reprogramming of 
funds. Agencies are encouraged to consult with the Committees 
early in the process so that any questions or concerns the 
Committees may have can be addressed in a timely manner.
    Except in emergency situations, reprogramming requests 
should be submitted no later than June 29, 2018. Further, the 
Committee notes that when a Department or agency submits a 
reprogramming or transfer request to the Committees on 
Appropriations and does not receive identical responses from 
the House and Senate, it is the responsibility of the 
Department or agency to reconcile the House and Senate 
differences before proceeding and, if reconciliation is not 
possible, to consider the request to reprogram funds 
unapproved.
    Agencies are directed under section 608 to submit operating 
plans for the Committee's review within 60 days of the bill's 
enactment. Each operating plan should include: (1) a table for 
each appropriation with a separate column to display the 
President's budget request, adjustments made by Congress, 
adjustments due to enacted rescissions, if appropriate, and the 
fiscal year enacted level; (2) a delineation in the table for 
each appropriation both by object class and program, project, 
and activity as detailed in the budget appendix for the 
respective appropriation; and (3) an identification of items of 
special congressional interest.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    Budget justifications are the primary tool used by the 
House and Senate Committees on Appropriations to evaluate the 
resource requirements and fiscal needs of agencies. The 
Committee is aware that the format and presentation of budget 
materials is largely left to the agency within presentation 
objectives set forth by the Office of Management and Budget 
(OMB). In fact, OMB Circular A-11, part 1 specifically 
instructs agencies to consult with congressional committees 
beforehand. The Committee expects that all agencies funded 
under this Act will heed this directive.
    The Committee continues the direction that justifications 
submitted with the fiscal year 2019 budget request by agencies 
funded under this Act contain the customary level of detailed 
data and explanatory statements to support the appropriations 
requests at the level of detail contained in the funding table 
included at the end of this report. Among other items, agencies 
shall provide a detailed discussion of proposed new 
initiatives, proposed changes in the agency's financial plan 
from prior year enactment, detailed data on all programs, and 
comprehensive information on any office or agency 
restructurings. At a minimum, each agency must also provide 
adequate justification for funding and staffing changes for 
each individual office and materials that compare programs, 
projects, and activities that are proposed for fiscal year 2019 
to the fiscal year 2018 enacted levels.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $224,376,000
Budget request, fiscal year 2018......................       201,751,000
Recommended in the bill...............................       201,751,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -22,625,000
    Budget request, fiscal year 2018..................             - - -
 

    The Departmental Offices' function in the Department of the 
Treasury is to support the Secretary of the Treasury in his 
capacity as the chief operating executive of the Department and 
in his role in determining the tax, economic, and financial 
management policies of the Federal Government. The Secretary's 
responsibilities funded by the Salaries and Expenses 
appropriation include: recommending and implementing domestic 
and international economic and tax policy; providing 
recommendations regarding fiscal policy; governing the fiscal 
operations of the government; managing the public debt; 
managing development of financial policy; representing the U.S. 
on international monetary, trade and investment issues; 
overseeing Treasury Department overseas operations; directing 
the administrative operations of the Treasury Department; and 
providing executive oversight of the bureaus within the 
Treasury Department.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $201,751,000 
for Departmental Offices, Salaries and Expenses.
    Financial Transactions.--The Committee encourages the 
Department of the Treasury to work with Federal bank 
regulators, financial institutions, and money service 
businesses to ensure that legitimate financial transactions 
move freely and globally. The Committee is frustrated that the 
Department has failed to report on its efforts to ensure the 
appropriate flow of legitimate financial transactions and 
directs the Department to submit a report to the Committees on 
Appropriations of the House and Senate on this matter not later 
than 90 days after enactment of this Act.
    Puerto Rico.--Within 90 days of the date of enactment of 
this Act, the Department is directed to provide a report to the 
Committees on Appropriations of the House and Senate describing 
how the Department has used its authority to provide technical 
assistance to Puerto Rico in fiscal year 2017 and how it plans 
to use it in fiscal year 2018.
    Terrorism Risk Insurance.--The Committee notes that the 
Terrorism Risk Insurance Program Reauthorization Act of 2015 
(TRIPRA) requires Treasury to engage in advance coordination 
with state insurance regulators and others to obtain data 
necessary to complete annual reports to Congress on the 
terrorism risk insurance market. The Committee expects that 
Treasury will engage early with state insurance regulators and 
will comply fully with TRIPRA reporting requirements.
    Cybersecurity.--The Committee recognizes the need to 
protect the financial services sector and its customers from 
the devastating effects of cyberattacks. While both industry 
and government have taken significant steps to mitigate this 
threat, there is more work to be done. The Committee encourages 
continued coordination to develop consistent and workable 
cybersecurity safeguards across the financial services sector. 
Consistent with this goal, the Committee directs the Office of 
Critical Infrastructure Protection and Compliance Policy (OCIP) 
to report to the Committees on Appropriations of the House and 
Senate, the Committee on Financial Services of the House, and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate within 60 days of enactment of this Act on the status of 
this collaboration and ways to improve cybersecurity controls 
and safeguards.
    Regulation of Community Financial Institutions.--The 
Committee remains concerned with Federal regulation of 
community banks and credit unions. The Committee requests each 
financial regulator to consider the risk profile and business 
model of a financial institution when the regulator engages in 
a regulatory action. In doing so, the regulator must determine 
the necessity, appropriateness, and impact of applying its 
regulatory action to an institution or class of institutions, 
and importantly, is directed to tailor its regulatory action in 
a manner that limits the regulatory compliance impact, cost, 
liability risk or other burdens as is appropriate for the risk 
profile and business model involved.
    Custody banks.--Federal banking regulators should examine 
regulatory approaches that may prevent custody banks from 
providing key services. U.S. prudential rules, including rules 
related to risk-weighted capital, leverage capital, and 
liquidity do not reflect this unique custody bank business 
model. For example, custody banks have a unique business model 
focused on providing services critical to the operation of 
mutual funds, pension funds, endowments and other institutional 
investors, including providing demand deposit accounts to hold 
these clients' cash. By necessity, the custody banks place such 
cash on deposit with the Federal Reserve and other central 
banks, rather than investing in loans or other higher yielding 
assets. Current and potentially future regulatory focus on this 
essentially risk-less activity, possibly impeding custody 
banks' ability to provide traditional custody services, could 
have an adverse impact on financial stability by preventing 
custody banks from being able to accept cash deposits from 
their clients during a crisis, denying those clients a safe 
haven to preserve their capital. The Financial Stability 
Oversight Council should work with banking regulators to tailor 
the one-size-fits-all prudential regulatory regime to ensure 
that custody banks can continue to provide the services 
necessary for investment and savings.
    Insurance.--Under P.L. 111-203, the Federal Reserve Board 
was given authority to oversee certain nonbank holding 
companies, including a few bank and savings and loan holding 
companies with insurance affiliates, as well as certain SIFIs, 
which currently include three insurance companies. P.L. 111-203 
also gave the Federal Insurance Office (FIO), within the 
Department of the Treasury, the authority to consult with the 
States on international issues and represent the U.S., as 
appropriate, in the International Association of Insurance 
Supervisors (IAIS).
    The Committee notes that the State-based system of 
insurance regulation has served our nation well for more than 
150 years. Any federal regulation of insurance can take final 
form only with explicit approval by Congress. It is important 
to note that other international financial agreements have had 
deleterious impacts on some of our nation's financial 
institutions.
    The Committee is concerned about the ongoing negotiations 
held by the IAIS to develop standards on a variety of issues, 
including capital and a definition of non-traditional, non-
insurance products, and believes the U.S. agencies party to 
those negotiations must appropriately fulfill their duties to 
advocate for the U.S. insurance market and State-based 
regulatory regime. The Committee also notes the importance of 
developing a domestic capital standard, pursuant to P.L. 111-
203 and P.L. 113-279, that is based on the existing domestic 
regulatory structure. The Committee believes it essential that 
a domestic standard should be set before approval of any 
international standard that will or could ultimately be applied 
to U.S. insurers. Finally, the Committee reminds those Federal 
agencies party to IAIS or Financial Stability Board (FSB) 
negotiations to not support consolidated group-wide insurance 
capital standards for domestically-chartered internationally 
active insurance groups that are inconsistent with current 
state-based insurance standards, which are designed solely for 
the protection of the policyholder.
    Cross-border Regulatory Cooperation and Harmonization.--The 
Committee is concerned that both the Dodd-Frank Act and U.S. 
prudential regulators are creating a fragmented international 
financial system through an excessive ring-fencing regime of 
U.S. subsidiaries that does not recognize, and may 
disincentivize, cross-border regulatory cooperation. U.S. 
regulators should take into account the extent to which a 
foreign financial company is subject to home country standards, 
on a consolidated basis, that are comparable to, or exceed, 
those applied to financial companies in the United States. The 
Committee expects U.S. regulators to demonstrate cross-border 
regulatory cooperation, to include the mutual recognition of 
comparable or higher standards in certain jurisdictions, and to 
better coordinate with home country regulators to establish a 
mutual recognition framework so as to create greater incentives 
for all jurisdictions to raise their standards to U.S. levels.
    Hardest Hit.--The Hardest Hit Fund (HHF) provides 
significant resources to States that were hardest hit by the 
economic crisis for 2008 and targets critical resources toward 
programs that help Americans avoid foreclosure and stabilize 
housing markets. The Committee notes that as part of HHF's 
blight elimination efforts, HHF funds may be used to secure 
vacant and abandoned properties. The Committee does not 
recommend that additional funding for the Hardest Hit Fund be 
provided through this Act.
    Financial Literacy.--The Committee believes financial 
literacy is important and that the Department can be helpful to 
entities, like universities, state and local educational 
agencies, qualified nonprofit agencies, and financial 
institutions who may want to establish centers of excellence to 
develop and implement effective standards, training and 
outreach efforts for financial literacy programs. The Committee 
encourages the Department to use the Financial Literacy and 
Education Commission to look into the feasibility of a program 
to make competitive grants to qualified institutions.

             OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $123,000,000
Budget request, fiscal year 2018......................       116,778,000
Recommended in the bill...............................       123,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................        +6,222,000
 

    Economic and trade sanctions issued and enforced by the 
Office of Terrorism and Financial Intelligence's (TFI) Office 
of Foreign Assets Control (OFAC) protect the financial system 
from being polluted with criminal and illicit activities and 
counteract national security threats from drug lords, 
terrorists, weapons of mass destruction proliferators, and 
rogue nations, among others. In addition to the enforcement of 
sanctions, TFI also produces vital analysis with regard to 
foreign intelligence and counterintelligence across all 
elements of the national security community.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $123,000,000 
for the Office of Terrorism and Financial Intelligence to carry 
out its central role in detecting and defeating security 
threats. The Committee expects these additional funds to be 
used to strengthen the development and enforcement of sanction 
programs.
    Iran Sanctions Act.--The Committee directs the Department 
of the Treasury to report to Congress on the status of 
implementation and enforcement of non-nuclear, bilateral and 
multilateral sanctions against Iran and actions taken by the 
U.S. and international community to enforce such sanctions.
  The Committee directs the Treasury Department to conduct a 
full review of all sanction designation removals related to 
Iran during the past 2 years and report to the Committees on 
Appropriations in writing for each such removal whether the 
entity has engaged in any prohibited activities since the 
removal of sanctions. If the Treasury Department determines an 
entity has engaged in any activities for which it should be 
sanctioned, the Department shall report not later than 15 days 
after any such determination to the Committees on 
Appropriations on the status of re-imposition of sanctions on 
any identified entity or provide a written justification for 
why sanctions have not been imposed.
  The Committee directs the Treasury Department to provide a 
report to the Committee, within 180 days from enactment, on the 
number of non-nuclear related sanctions designations related to 
Iran issued for the each of the past 3 fiscal years. The report 
shall provide an overall number of designations, and the number 
for each sanctions program.
  The Committee is concerned that investigations of entities 
for possible sanctions violations take considerable time and 
during the investigation period entities may continue to carry 
out sanctionable activities. The Committee directs the 
Department to begin tracking the time between the start of each 
investigation into possible sanctions violations and the 
issuance of sanctions or closure of the investigation. The 
Department shall provide a report to the Committees on 
Appropriations at the end of the fiscal year on the average 
investigation time, the number of investigations carried out, 
the number of investigations concluded, and the number of open 
investigations.
    Iran Nuclear Deal.--The Committee notes that the Joint 
Comprehensive Plan of Action (JCPOA), also known as the Iran 
nuclear deal is not binding for State and local governments. 
The existing framework under which States have passed 
restrictions on doing business with Iran is still in place, and 
States are fully within their rights to enact new restrictions, 
or maintain current laws.
    Sanctions Enforcement in Africa.--Protracted conflicts in 
nations such as Sudan, South Sudan, the Central African 
Republic, and the Democratic Republic of Congo have led to 
sanctions regimes and international arms embargoes to cut off 
the money flows that are fueling wars and contributing to 
regional destabilization. The Committee is concerned about the 
escalation of conflict and failure to abide by diplomatic 
agreements in these particular African states, even after 
sanctions have been imposed. The Committee supports the use of 
funds to enhance regional expertise and capacity for sanctions 
investigations, policy development, and enforcement of 
sanctions.

                   CYBERSECURITY ENHANCEMENT ACCOUNT

 
 
 
Appropriation, fiscal year 2017.......................       $47,743,000
Budget request, fiscal year 2018......................        27,264,000
Recommended in the bill...............................        27,264,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -20,479,000
    Budget request, fiscal year 2018..................             - - -
 

    The Cybersecurity Enhancement Account (CEA) is a dedicated 
account designed to identify and support Department-wide 
investments for critical IT improvements including the systems 
identified as High Value Assets.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $27,264,000 
for the Cybersecurity Enhancement Account.

        DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................        $3,000,000
Budget request, fiscal year 2018......................         4,426,000
Recommended in the bill...............................         3,077,000
Bill compared with:
    Appropriation, fiscal year 2017...................           +77,000
    Budget request, fiscal year 2018..................        -1,349,000
 

    The 1997 Treasury and General Government Appropriations Act 
established this account, which is authorized to be used by or 
on behalf of Treasury bureaus at the Secretary's discretion to 
modernize business processes and increase efficiency through 
technology investments, as well as other activities that 
involve more than one Treasury bureau or Treasury's interface 
with other Government agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,077,000 for 
Department-wide Systems and Capital Investments Programs 
(DSCIP).

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $37,044,000
Budget request, fiscal year 2018......................        34,112,000
Recommended in the bill...............................        34,112,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -2,932,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of Inspector General (OIG) provides agency-wide 
audit and investigative functions to identify and correct 
operational and administrative deficiencies that create 
conditions for fraud, waste, and mismanagement. The audit 
function provides contract, program, and financial statement 
audit services. Contract audits provide professional advice to 
agency contracting officials on accounting and financial 
matters relative to negotiation, award, administration, 
repricing, and settlement of contracts. Program audits review 
and evaluate all facets of agency operations. Financial 
statement audits assess whether financial statements fairly 
present the agency's financial condition and results of 
operations, the adequacy of accounting controls, and compliance 
with laws and regulations. The investigative function provides 
for the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $34,112,000 
for the OIG. The recommendation fully funds the cost of 
overseeing the Department's Resources and Ecosystems 
Sustainability, Tourism Opportunities, and Revived Economy of 
the Gulf Coast Act (RESTORE Act) activities.

           TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $169,634,000
Budget request, fiscal year 2018......................       161,113,000
Recommended in the bill...............................       165,113,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -4,521,000
    Budget request, fiscal year 2018..................        +4,000,000
 

    The Office of Treasury Inspector General for Tax 
Administration (TIGTA) conducts audits, investigations, and 
evaluations to assess the operations and programs of the IRS 
and its related entities, the IRS Oversight Board, and the 
Office of Chief Counsel. The purpose of those audits and 
investigations is as follows: (1) To promote the economic, 
efficient, and effective administration of the Nation's tax 
laws and to detect and deter fraud and abuse in IRS programs 
and operations; and (2) to recommend actions to resolve fraud 
and other serious problems, abuses, and deficiencies in these 
programs and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $165,113,000 
for TIGTA. The Committee appreciates the many issues that TIGTA 
has brought to its attention and provides funding above the 
fiscal year request to continue TIGTA's oversight of IRS 
activities and use of appropriated funds.
    Cybersecurity.--Since cyberattacks continue to be a threat 
to the Federal Government, the Committee is concerned with the 
potential damage such an attack would have on the Internal 
Revenue Service. Therefore, the Committee directs the TIGTA to 
submit a report to the Committees on Appropriations of the 
House and Senate not less than six months after enactment of 
this Act describing the cyberattacks and attempted cyberattacks 
against the agency and their consequences; as well as the steps 
taken to prevent, mitigate or otherwise respond to such 
attacks; the cybersecurity policies and procedures in place, 
including policies about ensuring safe use of computer and 
mobile devices by individual employees; and a description of 
all outreach efforts undertaken to increase awareness among 
employees and contractors of cybersecurity risks as well as an 
update on prior reported cyber incidents. The report shall 
describe the steps taken by IRS to implement previous TIGTA 
cybersecurity recommendations and identify steps the IRS needs 
to take to improve cybersecurity.

    SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $41,160,000
Budget request, fiscal year 2018......................        20,297,000
Recommended in the bill...............................        37,044,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -4,116,000
    Budget request, fiscal year 2018..................       +16,747,000
 

    The Office of the Special Inspector General for the 
Troubled Asset Relief Program (SIGTARP) was established in the 
Emergency Economic Stabilization Act of 2008 (Public Law 110-
343). Its mission is to conduct, supervise, and coordinate 
audits and investigations of the purchase, management, and sale 
of assets by the Secretary of the Treasury under programs 
established pursuant to the Troubled Asset Relief Program 
(TARP).

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $37,044,000 
for SIGTARP.

                  Financial Crimes Enforcement Network

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $115,003,000
Budget request, fiscal year 2018......................       112,764,000
Recommended in the bill...............................       115,003,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................        +2,239,000
 

    The Financial Crimes Enforcement Network (FinCEN) is 
responsible for implementing Treasury's anti-money laundering 
regulations through administration of the Bank Secrecy Act 
(BSA). It also collects and analyzes information to assist in 
the investigation of money laundering and other financial 
crimes. FinCEN supports law enforcement investigative efforts 
by Federal, State, local and international agencies, and 
fosters interagency and global cooperation against domestic and 
international financial crimes.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $115,003,000 
for FinCEN. The recommended amount is intended to ensure 
FinCEN's information is accessible to the law enforcement and 
intelligence communities and to ensure FinCEN can respond to 
requests for assistance from law enforcement. The data compiled 
and analyzed by FinCEN is a critical tool for investigating, 
among other crimes, money laundering, mortgage fraud, drug 
cartels, and terrorist financing.
    Human Trafficking.--The Committee appreciates FinCEN's 
history of supporting law enforcement cases that combat human 
trafficking, including its 2014 Guidance on Recognizing 
Activity that May be Associated with Human Smuggling and Human 
Trafficking to financial institutions, and emphasizes the 
importance of continuing this effort as part of the bureau's 
broader mission to detect and disrupt all forms of financial 
crime. Wherever possible, FinCEN shall marshal its unique 
expertise in analyzing financial flows for this important 
effort in the course of ongoing strategic operations, such as 
the Southwest Border Initiative, and provide the appropriate 
assistance to law enforcement agencies in their human 
trafficking investigations.

                        Treasury Forfeiture Fund

                              (RESCISSION)

                      (INCLUDING RETURN OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................    $1,115,000,000
Budget request, fiscal year 2018......................       876,000,000
Recommended in the bill...............................       876,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................      -239,000,000
    Budget request, fiscal year 2018..................             - - -
 

    The Treasury Forfeiture Fund collects and disburses funds 
that are incidental to law enforcement activities and 
priorities that led to the seizures and forfeitures. The Fund 
can ensure resources are managed efficiently to cover the costs 
of an effective asset seizure and forfeiture program, including 
the costs of seizing, evaluating, inventorying, maintaining, 
protecting, advertising, forfeiting and disposing of property.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a permanent rescission of 
$876,000,000 of unobligated balances in the Treasury Forfeiture 
Fund. Further, the Committee includes a paragraph, as 
requested, to return $38,800,000 from the Forfeiture Fund to 
the General Fund of the Treasury. Public Law 114-113 rescinded 
$3,800,000,000 of the $3,838,800,000 forfeited by BNP Paribas 
S.A. in 2015 and prohibited Treasury from obligating the 
remaining balance. Returning these funds to the General Fund 
does not count as savings to this bill, per scorekeeping rules, 
because the funds were already precluded from obligation.
    The Committee directs the Department to submit to the 
Committees on Appropriations of the House and Senate a detailed 
table every month reporting the interest earned, forfeiture 
revenue collected, unobligated balances, recoveries, expenses 
to date, and expenses estimated for the remainder of the fiscal 
year.

                      Bureau of the Fiscal Service

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $353,057,000
Budget request, fiscal year 2018......................       330,837,000
Recommended in the bill...............................       330,837,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -22,220,000
    Budget request, fiscal year 2018..................             - - -
 

    The mission of the Bureau of the Fiscal Service is to 
promote the financial integrity and operational efficiency of 
the U.S. Government through accounting, borrowing, collections, 
payments, and shared services. The Fiscal Service is the 
Federal Government's central financial agent. The Fiscal 
Service also develops and implements reliable and efficient 
financial methods and systems to operate the government's cash 
management, credit management, and debt collection programs in 
order to maintain government accounts and report on the status 
of the government's finances. In addition, the Fiscal Service 
is the primary agency for collecting Federal non-tax debt owed 
to the government, and is responsible for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
securities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $330,837,000 
for the Fiscal Service. Of the funds provided, $4,210,000 is 
available until September 30, 2019, for information systems 
modernization.
    The Committee is pleased that the Fiscal Service continues 
to realize cost-savings from the consolidation of the Bureau of 
Public Debt and the Financial Management Service.
    DATA Act.--The Committee is supportive of the Department's 
implementation of the DATA Act (P.L. 113-101). The Fiscal 
Service has worked to establish a DATA Act Schema that 
leverages industry standards to create a government-wide data 
structure for federal spending information. The Committee is 
concerned by the findings in a recent January 2016 GAO report 
(``Data Standards Established, but More Complete and Timely 
Guidance Is Needed to Ensure Effective Implementation''; GAO 16 
261), which found that many of the 57 draft data elements 
released by OMB and the Treasury Department in August 2015 
(``Federal Spending Transparency Data Standards''') to have 
ambiguous or vague definitions that could inhibit government-
wide aggregation of agency reported data. Moreover, final 
reporting guidance needs to be issued to agencies to clarify 
how they are to extract, compile, standardize, and report their 
spending data.
    Within this appropriation, funding is included for 
USAspending.gov. The Committee expects the Fiscal Service to 
meet its transparency goals within USAspending.gov related to 
the DATA Act and will monitor progress in achieving government 
spending transparency. The Committee directs the Fiscal Service 
to meet its transparency goals within USAspending.gov and 
coordinate with OMB to publish all unclassified vendor 
contracts and grant awards for all federal agencies on 
USAspending.gov. The Committee directs the Fiscal Service to 
display this information online and report to the Committees on 
Appropriations of the House and Senate within 90 days of the 
enactment of this Act on its progress in achieving government 
spending transparency.
    The Committee is committed to transparency and 
accountability in federal spending. As such the Committee 
directs the Fiscal Service to make basic information about the 
use of financial agents publicly available in a central 
location, including compensation paid to each financial agent 
and a description of the services provided.

                Alcohol and Tobacco Tax and Trade Bureau

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $111,439,000
Budget request, fiscal year 2018......................        98,658,000
Recommended in the bill...............................       111,439,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................       +12,781,000
 

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) is 
responsible for the enforcement of laws designed to eliminate 
certain illicit activities and to regulate lawful activities 
relating to distilled spirits, beer, wine, and nonbeverage 
alcohol products, and tobacco. TTB focuses on collecting 
revenue; reducing taxpayer burden and improving service while 
preventing diversion; and protecting the public and preventing 
consumer deception in certain regulated commodities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $111,439,000 
for the TTB. Within this amount, $5,000,000 is included for 
increased enforcement of the Federal Alcohol Administration Act 
(FAA Act).
    Enforcement.--The Committee has included $5,000,000 for TTB 
to increase enforcement efforts for industry trade practice 
violations. Enforcement of basic trade practice functions, 
required under the FAA Act, is critical to ensuring a 
competitive, fair, and safe marketplace. The Committee directs 
the TTB to report to the Committees on Appropriations of the 
House and Senate, within 60 days of enactment of this Act, on 
how the additional funding will be used to bolster enforcement, 
forensic audits, and investigations, particularly in known 
points in the supply chain that are susceptible to illegal 
activity.
    Processing Time.--The Committee will continue to monitor 
the process for securing basic label and formula approvals 
required under the FAA Act. The Committee continues to support 
additional funding for this and expects the TTB to continue to 
make efforts to shorten processing time for label and formula 
applications.
    American Viticulture Area.--The Committee recognizes that 
the use of American Viticulture Area (AVA) terms help small 
farmers and wineries grow their businesses by developing 
regional brands. The AVA system stimulates economic growth in 
the industry and also provides consumers with valuable 
information about where their purchases are sourced. The TTB 
should improve label accuracy to ensure that use of AVA terms 
are consistent with existing federal laws and regulations 
governing the use of these protected terms. The Committee is 
aware that the TTB is actively working on Notice No. 160 and 
directs the Bureau to keep the Committee appraised of any 
imminent action related to this rulemaking.
    Craft Producers.--The Committee recognizes the important 
function TTB plays in protecting the public and properly 
collecting tax revenue from the industries it oversees. The 
Committee encourages TTB to continue outreach to small craft 
producers and identify areas where the Bureau can minimize the 
regulatory burden on this industry.

                           United States Mint

               UNITED STATES MINT PUBLIC ENTERPRISE FUND

    The United States Mint manufactures coins, receives 
deposits of gold and silver bullion, and safeguards the Federal 
Government's holdings of monetary metals. In 1997, Congress 
established the United States Mint Public Enterprise Fund 
(Public Law 104-52), which authorized the Mint to use proceeds 
from the sale of coins to finance the costs of its operations 
and consolidated all existing Mint accounts into a single fund. 
Public Law 104-52 also provided that, in certain situations, 
the levels of capital investments for circulating coins and 
protective services shall factor into the decisions of the 
Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a spending level for capital 
investments by the Mint for circulating coinage and protective 
services of $30,000,000 for fiscal year 2018.

           Community Development Financial Institutions Fund

                            Program Account

 
 
 
Appropriation, fiscal year 2017.......................      $248,000,000
Budget request, fiscal year 2018......................        14,000,000
Recommended in the bill...............................       190,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -58,000,000
    Budget request, fiscal year 2018..................      +176,000,000
 

    The Community Development Financial Institutions (CDFI) 
Fund provides grants, loans, equity investments, and technical 
assistance, on a competitive basis, to new and existing CDFIs 
such as community development banks, community development 
credit unions, and housing and microenterprise loan funds. 
Recipients use the funds to support mortgages, small business 
and economic development lending in underserved and distressed 
neighborhoods and to support the availability of financial 
services in these neighborhoods. The CDFI Fund is also 
responsible for implementation of the New Markets Tax Credits.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $190,000,000 
for the CDFI Fund program. Of the amounts provided, 
$137,000,000 is for financial and technical assistance grants, 
$3,000,000 is for CDFIs to provide technical and financial 
assistance to individuals with disabilities, $15,000,000 is for 
Native Initiatives, $15,000,000 is for the Bank Enterprise 
Award Program, and $23,000,000 is for the administrative 
expenses for all. In addition, the Committee recommends a loan 
level of $500,000,000 for the Bond Guarantee Program.
    CDFIs in U.S. Insular Areas.--The Committee notes the 
absence of CDFIs serving American Samoa, Northern Mariana 
Islands and other U.S. insular areas and recommends that the 
CDFI Fund use its Capacity Building Initiative to expand 
service, to the extent practical, to these areas.
    CDFIS in the Appalachian Region.--The Committee recognizes 
that the Appalachian region continues to face economic 
hardships and high unemployment stemming from the downturn in 
the coal market. The Committee encourages the CDFI Fund to 
focus on opportunities in the region and expand service for 
businesses and industries that may lead to improved long-term 
diversification of the economy in Appalachia.
    CDFI Program Integration for Individuals with 
Disabilities.--The Committee is pleased to provide dedicated 
funds for financial and technical assistance grants to position 
more CDFI's to respond to the housing, transportation, 
education, and employment needs of underserved, low-income, 
individuals with disabilities. By increasing the visibility of 
the disability community, the Committee expects CDFI's to 
incorporate the needs of the disabled into their business plans 
and practices.
    The Committee directs the CDFI to submit a report every six 
months until all the funds are obligated, not later than six 
months after the enactment of the Act to the Committees on 
Appropriations of the House and Senate summarizing the progress 
made toward developing a competitive application pool of CDFIs 
to compete for funds for individuals with disabilities. 
Additionally, the report should include the number of awards, 
amount of each award, types of programs, impact the funding has 
made on the number of CDFIs serving the disability community, 
and findings and recommendations to improve upon the 
implementation of these activities.

                        Internal Revenue Service

    The Committee recommends providing $11,085,943,000 for the 
IRS, which is $149,057,000 below current level, but 
$110,943,000 above the request. This recommendation would fund 
the IRS, in total, below their fiscal year 2008 level. Funding 
for the Taxpayer Service account is at $2,315,754,000 which is 
slightly below their current level when factoring in the 
additional funds provided for Taxpayer Services in fiscal year 
2017.
    In addition, the Committee includes language to:
           Prohibit funds for finalizing any regulation 
        related to the standards used to determine the tax-
        exempt status of a 501(c)(4) organization;
           Prohibit funds for IRS employee bonuses and 
        awards that do not consider the conduct and tax 
        compliance of such employees;
           Prohibit funds for hiring former IRS 
        employees without considering the employees past 
        conduct and tax compliance;
           Prohibit funds for targeting groups for 
        regulatory scrutiny based on their ideological beliefs;
           Prohibit funds for targeting citizens for 
        exercising their First Amendment rights;
           Prohibit funds for conferences that do not 
        comply with the Treasury Inspector General for Tax 
        Administration's (TIGTA) recommendations regarding 
        conferences;
           Prohibit funds for the production of videos 
        that have not been reviewed for cost, topic, tone, and 
        purpose and certified to be appropriate;
           Require extensive reporting on IRS spending 
        and information technology; and
           Provide TIGTA with $165 million for its 
        audit and investigative oversight of the IRS.
    The Committee remains concerned with the level of service 
taxpayers are receiving and continued cybersecurity threats. 
Targeted reporting is included to assist the Committee monitor 
and evaluate the IRS's progress in these areas.
    A description of the Committee's recommendation by 
appropriation is provided below.

                           TAXPAYER SERVICES

 
 
 
Appropriation, fiscal year 2017.......................  \1\$2,156,554,00
                                                                       0
Budget request, fiscal year 2018......................     2,212,311,000
Recommended in the bill...............................     2,315,754,000
Bill compared with:
    Appropriation, fiscal year 2017...................      +159,200,000
    Budget request, fiscal year 2018..................      +103,443,000
 
\1\As directed by Public Law 115-31, Division E, Section 113 of the
  Administrative Provisions--Internal Revenue Service, $209,200,000 was
  transferred by the Commissioner of the Internal Revenue Service to the
  Taxpayer Services which increased the Taxpayer Services fiscal year
  2017 level to $2,365,754,000.

    The Taxpayer Services appropriation provides for taxpayer 
services, including forms and publications; processing tax 
returns and related documents; filing and account services; 
taxpayer advocacy services; and assisting taxpayers to 
understand their tax obligations, correctly file their returns, 
and pay taxes due in a timely manner.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,315,754,000 
for Taxpayer Services, which is $50,000,000 below the account's 
fiscal year 2017 total appropriated funding level. Within the 
amount provided, the Committee expects the IRS to sufficiently 
fund the Taxpayer Advocate Service.
    Identity Theft.--Identity theft remains a persistent 
obstacle to accurate, fair, and efficient tax collection. 
Innocent taxpayers, who otherwise comply with their tax 
obligations, have their refunds delayed and are drawn 
unwittingly into the IRS examination process because their 
identity was stolen and misused.
    The Committee requires a report, reviewed by the National 
Taxpayer Advocate, from the IRS that covers 2010-2017 period 
on: the number of taxpayers who have had their tax return 
rejected because their Social Security or taxpayer 
identification number was improperly used by another individual 
to commit tax fraud; the average time to resolve the situation 
and provide innocent taxpayers with their refund, when a refund 
is due; and the number of cases involving taxpayer 
identification numbers of residents of the territories. The 
report will also include a discussion on IRS's progress and 
plans to expedite resolution for these taxpayers, to prevent 
non-victims from becoming victims, to educate the public on the 
threat of identity theft, and to detect, prevent, and combat 
identity-based tax fraud and actions. The Committee directs the 
IRS to submit the report to the Committees on Appropriations of 
the House and Senate by June 1, 2018.
    Pre-Filled or Simple Tax Returns.--The Committee believes 
that converting a voluntary compliance system to a bill 
presentment model would represent a significant change in the 
relationship between taxpayers and their government. The simple 
return model would also strain IRS resources and the data 
retrieval systems required would create new burdens on 
employers, particularly small businesses. In addition, a 
fundamental conflict of interest seems to be inherent in the 
nation's tax collector and compliance enforcer taking on the 
simultaneous role of tax preparer and financial advisor. The 
Committee expects that the IRS will not begin work on a simple 
tax return pilot program or associated systems without first 
seeking specific authorization and appropriations from 
Congress, and should instead focus on helping Congress and the 
Administration achieve real tax simplification and reform.
    Level of Service Plan.--The IRS would benefit from 
exploring new customer service innovations to deliver quality 
and timely telephone and written correspondence service to 
taxpayers. The Committee agrees with the Government Accounting 
Office recommendation that the IRS should systematically and 
periodically compare its level of telephone service to the best 
in business to identify gaps between actual and desired 
performance and directs IRS to submit a plan to the Committees 
on Appropriations of the House and Senate six months after the 
enactment of this Act. This should include a customer service 
plan with specific goals, strategies, and resources to achieve 
those goals.
    Earned Income Tax Credits.--The Committee recognizes the 
importance of continued efforts to improve the administration 
of the Earned Income Tax Credits (EITC) for all taxpayers and 
encourages the IRS to submit a report to the committees on 
Appropriations of the House and Senate six months after the 
enactment of this Act that explores new strategies to reduce 
fraudulent EITC claims. The Committee directs the IRS to 
develop a report on efforts taken by the agency to protect 
taxpayer information, and how the agency is addressing the 
specific issue with the EITC.
    Safe Harbor.--The Committee instructs the Internal Revenue 
Service to follow and apply, the 75 percent math safe harbor 
test. Section 4052(f)(1) provides a safe harbor test that 
excludes from the tax previously taxed tractors that are 
refurbished as long as the restoration cost does not exceed 75-
percent of the cost of a comparable new tractor. Therefore, the 
Committee expects that the IRS apply these longstanding 
statutory provisions as written and without additional 
interpretation, modification, or added conditions.
    IRS Phone Scams.--The committee supports the IRS efforts to 
provide taxpayers with information on how to protect themselves 
from telephone scam artists calling and pretending to be with 
the IRS. However, these aggressive and threatening phone calls 
by criminals impersonating IRS agents remain a major threat to 
taxpayers. The Committee strongly encourages the IRS to partner 
with federal and state law enforcement agencies to develop a 
plan to curtail and stop these calls. The IRS shall report to 
the Committees on Appropriations of the House and Senate 120 
days after enactment of this Act on their plan of action. The 
IRS has provided public information on tips and best practices 
in this area. Currently, the IRS recommends individuals report 
these abuses to the Treasury Inspector General for tax 
Administration.
    Taxpayer Correspondence.--The Committee encourages the IRS 
to implement a system for tracking delivery status of taxpayer 
correspondence and integrating that information into its 
systems. By utilizing services provided through the USPS 
Intelligent Mail Barcode, the Committee believes that IRS can 
prevent fraud, enhance taxpayer service, and reduce costs 
through real-time awareness of delivery exceptions, updated 
address information, and the capability to automatically send 
undeliverable taxpayer correspondence to a USPS facility for 
secure destruction. The Committee directs the IRS to produce a 
report to the Committees on Appropriations of the House and 
Senate no later than six months after enactment of this Act on 
the potential future savings, benefits, timeframe and costs for 
implementation of such a system.

                              ENFORCEMENT

 
 
 
Appropriation, fiscal year 2017.......................    $4,860,000,000
Budget request, fiscal year 2018......................     4,706,500,000
Recommended in the bill...............................     4,810,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -50,000,000
    Budget request, fiscal year 2018..................      +103,500,000
 

    The Enforcement appropriation provides for the examination 
of tax returns, both domestic and international; the 
administrative and judicial settlement of taxpayer appeals of 
examination findings; technical rulings; monitoring employee 
pension plans; determining qualifications of organizations 
seeking tax-exempt status; examining tax returns of exempt 
organizations; enforcing statutes relating to detection and 
investigation of criminal violations of the internal revenue 
laws; identifying underreporting of tax obligations; securing 
unfiled tax returns; and collecting unpaid accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,810,000,000 
for Enforcement. Of the funds provided, the Committee 
recommends not less than $60,257,000 to support IRS activities 
under the Interagency Crime and Drug Enforcement program. The 
Committee carries the provision that none of the funds may be 
used by the Internal Revenue Service for implementation of the 
Patient Protection and Affordable Care Act.
    Favorable Determination Letters.--The Committee believes 
the Favorable Determination Letter program is a valuable and 
useful service, assuring tax administrators that they are 
operating employee plans in compliance with tax law.
    Printed Forms and Instructions.--The Committee encourages 
the IRS to continue to provide printed forms and instructions 
to vulnerable populations, especially rural communities where 
internet usage rates are below the national average.
    Compliance and Tax Gap.--GAO has highlighted in their April 
2017 report (GAO-17-371) the importance of the IRS's National 
Research Program (NRP) study on tax compliance issues. GAO 
reviewed how practices from NRP examination could improve 
operational examinations. GAO notes that the NRP study on 
employment tax returns provide a valuable opportunity to 
identify what noncompliance areas are contributing to the $16 
billion annual employment tax gap, and better align IRS 
resources with the most prevalent areas of noncompliance. The 
Committee encourages the IRS to review GAO's recommendations 
with the intent to improve operational examinations.
    Income Verification Express Services.--The Committee 
directs the IRS to produce a report to the Committees on 
Appropriations of the House and Senate no later than six months 
after the enactment on this Act on automating its Income 
Verification Express Services (IVES) with a data sharing 
Application Programming Interface (API) that could help reduce 
operational costs; reduce paperwork and waiting period burdens 
on borrowers; provide more safeguards to ensure the privacy and 
security of taxpayer account information; and potentially 
expand access to credit. The IRS should include the steps 
necessary to create this API, including working with U.S. 
Digital Services, to build a pilot test version of the API with 
dummy data that allows lenders to test prototype loan 
application interface and back-end system improvements as well 
as testing the user verification system to protect taxpayer 
information, all of which would inform the IRS's ultimate API 
design.

                           OPERATIONS SUPPORT

 
 
 
Appropriation, fiscal year 2017.......................  \1\$3,638,446,00
                                                                       0
Budget request, fiscal year 2018......................     3,946,189,000
Recommended in the bill...............................     3,850,189,000
Bill compared with:
    Appropriation, fiscal year 2017...................      +211,743,000
    Budget request, fiscal year 2018..................       -96,000,000
 
\1\As directed by Public Law 115-31, Division E, Section 113 of the
  Administrative Provisions--Internal Revenue Service, $80,800,000 was
  transferred by the Commissioner of the Internal Revenue Service to
  Operations Support which increased the Operations Support fiscal year
  2017 level to $3,719,246,000.

    The Operations Support appropriation provides for overall 
planning and direction of the IRS, including shared service 
support related to facilities services, rent payments, 
printing, postage, and security. Specific activities include 
headquarters management activities such as strategic planning, 
communications and liaison, finance, human resources, Equal 
Employment Opportunity and diversity, research, information 
technology, and telecommunications.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,850,189,000 
for Operations Support. The Operations Support account reflects 
a higher appropriation as the result of a permanent realignment 
of funds from Systems Modernization.
    Obligations and Employment.--Not later than 45 days after 
the end of each quarter, the Internal Revenue Service shall 
submit reports on its activities to the House and the Senate 
Committees on Appropriations. The reports shall include 
information about the obligations made during the previous 
quarter by appropriation, object class, office, and activity; 
the estimated obligations for the remainder of the fiscal year 
by appropriation, object class, office, and activity; the 
number of full-time equivalents within each office during the 
previous quarter; and the estimated number of full-time 
equivalents within each office for the remainder of the fiscal 
year.
    Information Technology Reports.--The Committee directs the 
IRS to submit quarterly reports on particular major project 
activities to the Committees on Appropriations of the House and 
the Senate and the GAO, no later than 30 days following the end 
of each calendar quarter in fiscal year 2018. The Committee 
expects the reports to include detailed, plain English 
explanations of the cumulative expenditures and schedule 
performance to date, specified by fiscal year; the costs and 
schedules for the previous 3 months; the anticipated costs and 
schedules for the upcoming 3 months; and the total expected 
costs to complete the following major information technology 
project activities: IRS.gov; Returns Remittance Processing; 
EDAS/IPM; Information Returns and Document Matching; E-
services; Taxpayer Advocate Service Integrated System; 
Affordable Care Act administration; and other projects 
associated with significant changes in law. In addition, the 
quarterly report should clearly explain when the project was 
started; the expected date of completion; the percentage of 
work completed as compared to planned work; the current and 
expected state of functionality; any changes in schedule; and 
current risks unrelated to funding amounts and mitigation 
strategies. The Committee directs the Department of the 
Treasury to conduct a semi-annual review of IRS's IT 
investments to ensure the cost, schedule, and scope of the 
projects goals are transparent. The Committee further directs 
GAO to review and provide an annual report to the Committees 
evaluating the cost and schedule of activities of all major IRS 
information technology projects for the year, with particular 
focus on the projects about which the IRS is submitting 
quarterly reports to the Committee.
    Utilization of Cloud Services.--The Committee is concerned 
the Department's largest agency, the Internal Revenue Service 
appears slow to adopt new IT strategies including transition to 
commercial cloud services that offer enhanced security and cost 
savings including the use of digital workspace technologies for 
the IRS. The IRS shall provide a report six months after 
enactment of this Act to the Committees on Appropriations of 
the House and Senate, to include the use of and plans for 
expansion of commercial cloud computing services, the security 
benefits of transitioning Federal Information Security 
Management Act (FISMA) moderate and high systems and data to 
commercial cloud computing services, the cost savings achieved 
in fiscal year 2017 by the utilization of commercial cloud 
computing services, and how the agency is performing against 
their goal for data center consolidation as required by the 
Federal Information Technology Acquisition Reform Act.
    Taxpayer Receipt.--The Committee recognizes the importance 
of empowering Americans with information to hold the federal 
government accountable over how taxpayer dollars are being 
spent. The Committee encourages the IRS to create a written 
receipt for those filing paper tax returns and an electronic 
receipt for those that e-file that will include a breakdown of 
each individual's contributions to Social Security, defense 
spending, Medicare and other federal programs, as well as the 
total amount of federal debt and how much the federal 
government has borrowed per citizen.

                     BUSINESS SYSTEMS MODERNIZATION

 
 
 
Appropriation, fiscal year 2017.......................      $290,000,000
Budget request, fiscal year 2018......................       110,000,000
Recommended in the bill...............................       110,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................      -180,000,000
    Budget request, fiscal year 2018..................             - - -
 

    The Business Systems Modernization (BSM) appropriation 
provides funding to modernize key business systems of the 
Internal Revenue Service. Funds have been permanently 
transferred from this account to Operations Support to fund 
operation and maintenance for the existing infrastructure that 
will help protect the IRS from cyber threats.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $110,000,000 
for BSM. The Committee continues to support IRS in its efforts 
to modernize its business systems such as CADE 2 and the Return 
Review Program that enhances IRS capabilities to detect, 
address, and prevent tax refund fraud as well as web 
applications that will help the IRS transition to a more 
serviceable digital government.
    Information Technology Reports.--The Committee expects the 
IRS to continue to submit quarterly reports to the Committees 
and GAO during fiscal year 2018, no later than 30 days 
following the end of each calendar quarter. The Committee 
expects the reports to include detailed, plain English 
explanations of the cumulative expenditures and schedule 
performance to date, specified by fiscal year; the costs and 
schedules for the previous 3 months; the anticipated costs and 
schedules for the upcoming 3 months; and the total expected 
costs to complete CADE2 and Return Review Program. In addition, 
the quarterly report should clearly explain when the project 
was started; the expected date of completion; the percentage of 
work completed as compared to planned work; the current and 
expected state of functionality; any changes in schedule; and 
current risks unrelated to funding amounts and mitigation 
strategies. The Committee directs the Department of the 
Treasury to conduct a semi-annual review of CADE2 and Return 
Review Program to ensure the cost, schedule, and scope goals of 
the projects are transparent. The Committee further directs GAO 
to review and provide an annual report to the Committee 
evaluating the cost and schedule of CADE2 and Return Review 
Program activities for the year, as well as an assessment of 
the functionality achieved.
    Audit Trail Compliance--Audit trails are a key component of 
effective information technology security. Maintaining 
sufficient audit trails is critical to establishing 
accountability over users and their actions within information 
systems. The Committee directs the IRS to submit quarterly 
reports to the Committees on Appropriations of the House and 
Senate and Treasury Inspector General for Tax Administration 
(TIGTA) on its progress towards implementing the audit trail 
requirements described in TIGTA's ``Semiannual Report to 
Congress April 1, 2015-September 30, 2015'', consistent with 
the Internal Revenue Manual, for legacy and planned business 
systems modernization investments with priority consideration 
to business systems presenting the most significant threats to 
taxpayer information.
    Aging Infrastructure--The IRS estimates that 64 percent of 
its information technology hardware infrastructure is beyond 
its useful life. This aging infrastructure creates significant 
risks in the American tax system. The Treasury Inspector 
General for Tax Administration is currently reviewing this 
issue and has identified that outdated hardware infrastructure 
has negatively affected the IRS's ability to ensure the 
security of taxpayer information. It has also affected IRS 
productivity and taxpayer service due to system downtime. The 
Committee looks forward to seeing TIGTA's pending report on 
this issue and encourages TIGTA to monitor and periodically 
report on the impact aging IT infrastructure has on the IRS's 
ability to operate efficiently and protect the security of 
taxpayer information.

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

                     (INCLUDING TRANSFERS OF FUNDS)

    Section 101. The Committee continues a provision that 
allows for the transfer of five percent of any appropriation 
made available to the IRS to any other IRS appropriation, upon 
the advance approval of the Committees on Appropriations of the 
House and Senate.
    Section 102. The Committee continues a provision that 
requires the IRS to maintain a training program to include 
taxpayer rights, dealing courteously with taxpayers, cross-
cultural relations, and the impartial application of tax law.
    Section 103. The Committee continues a provision that 
requires the IRS to institute and enforce policies and 
procedures that will safeguard the confidentiality of taxpayer 
information and protect taxpayers against identity theft.
    Section 104. The Committee continues a provision that makes 
funds available for improved facilities and increased staffing 
to provide efficient and effective 1-800 number help line 
service for taxpayers.
    Section 105. The Committee continues a provision with 
modifications requiring videos produced by the IRS to be 
approved in advance by the Service-Wide Video Editorial Board.
    Section 106. The Committee continues a provision that 
requires the IRS to notify employers of any address change 
request and to give special consideration to offers in 
compromise for taxpayers who have been victims of payroll tax 
preparer fraud.
    Section 107. The Committee continues a provision with 
modifications that prohibits the IRS from targeting U.S. 
citizens for exercising their First Amendment rights.
    Section 108. The Committee continues a provision with 
modifications that prohibits the IRS from targeting groups 
based on their ideological beliefs.
    Section 109. The Committee continues a provision with 
modifications that requires the IRS to comply with procedures 
and policies on conference spending as recommended by the 
Treasury Inspector General for Tax Administration.
    Section 110. The Committee continues a provision with 
modifications that prohibits funds for giving bonuses to 
employees or hiring former employees without considering 
conduct and compliance with Federal tax law.
    Section 111. The Committee continues a provision with 
modifications that prohibits funds to violate the 
confidentiality of tax returns.
    Section 112. The Committee includes a new provision that 
prohibits funds from being used to implement the individual 
mandate of the Affordable Care Act.
    Section 113. The Committee continues a provision with 
modifications that prohibits funds for pre-populated returns.
    Section 114. The Committee includes a new provision that 
prohibits funds to implement an IRS Notice on conservations 
easements.
    Section 115. The Committee includes a new provision that 
prohibits funds to finalize, implement, or enforce amendments 
related to restrictions on liquidation of an interest with 
respect to estate, gift, and generation-skipping transfer taxes 
from taking effect.
    Section 116. The Committee includes a new provision to 
prohibit funds for the Internal Revenue Service (IRS) to 
determine that a church is not exempt from taxation for 
participating in, or intervening in, any political campaign on 
behalf of (or in opposition to) any candidates for public 
office unless the IRS Commissioner consents to such 
determination, the Commissioner notifies the tax committees of 
Congress, and the determination is effective 90 days after such 
notification.

         ADMINISTRATIVE PROVISIONS--DEPARTMENT OF THE TREASURY

                     (INCLUDING TRANSFERS OF FUNDS)

    Section 117. The Committee continues a provision that 
authorizes the Department to purchase uniforms, insurance for 
motor vehicles that are overseas, and motor vehicles that are 
overseas without regard to the general purchase price 
limitations; to enter into contracts with the State Department 
for health and medical services for Treasury employees who are 
overseas; and to hire experts or consultants.
    Section 118. The Committee continues a provision that 
authorizes transfers, up to two percent, between ``Departmental 
Offices--Salaries and Expenses'', ``Office of Inspector 
General'', ``Special Inspector General for the Troubled Asset 
Relief Program'', ``Financial Crimes Enforcement Network'', 
``Bureau of the Fiscal Service'', and ``Alcohol and Tobacco Tax 
and Trade Bureau'' appropriations under certain circumstances.
    Section 119. The Committee continues a provision that 
authorizes transfers, up to two percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 120. The Committee continues a provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the one dollar Federal Reserve note.
    Section 121. The Committee includes a provision that 
provides for transfers from the Bureau of the Fiscal Service to 
the Debt Collection Fund as necessary for the purposes of debt 
collection.
    Section 122. The Committee continues a provision that 
requires congressional approval for the construction and 
operation of a museum by the United States Mint.
    Section 123. The Committee continues a provision 
prohibiting funds in this or any other Act from being used to 
merge the United States Mint and the Bureau of Engraving and 
Printing without the approval of the House and Senate 
committees of jurisdiction.
    Section 124. The Committee continues a provision deeming 
that funds for the Department of the Treasury's intelligence-
related activities are specifically authorized in fiscal year 
2018 until enactment of the Intelligence Authorization Act for 
fiscal year 2018.
    Section 125. The Committee continues a provision permitting 
the Bureau of Engraving and Printing to use $5,000 from the 
Industrial Revolving Fund for reception and representation 
expenses.
    Section 126. The Committee continues a provision that 
requires the Department to submit a capital investment plan.
    Section 127. The Committee continues a provision that 
requires quarterly reports of the Office of Financial Research 
(OFR) and Office of Financial Stability.
    Section 128. The Committee continues a provision that 
requires a report on the Department's Franchise Fund.
    Section 129. The Committee continues a provision that 
prohibits the Department from finalizing any regulation related 
to the standards used to determine the tax-exempt status of a 
501(c)(4) organization.
    Section 130. The Committee includes a new provision to 
prohibit funds to approve, license, facilitate, authorize, or 
otherwise allow the importation of property confiscated by the 
Cuban Government.
    Section 131. The Committee includes a new provision to 
prohibit funds to approve or otherwise allow the licensing of a 
mark, trade name, or commercial name that is substantially 
similar to one that was used in connection with a business or 
assets that were confiscated unless expressly consented.
    Section 132. The Committee includes a new provision 
requiring the Special Inspector General for the Troubled Asset 
Relief Program to prioritize performance audits or 
investigations of programs funded under the Emergency Economic 
Stabilization Act of 2008.
    Section 133. The Committee includes a new provision that 
prohibits the Department from enforcing guidance for U.S. 
positions on multilateral development banks which engage with 
developing countries on coal-fired power generation.

 TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

    Funds appropriated in this title provide for the staff and 
operations of the White House, along with other organizations 
within the Executive Office of the President (EOP), which 
formulate and coordinate policy on behalf of the President, 
such as the National Security Council and the Office of 
Management and Budget. The title also includes funding for the 
Office of National Drug Control Policy and certain expenses of 
the Vice President.

                            The White House

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $55,214,000
Budget request, fiscal year 2018......................        55,000,000
Recommended in the bill...............................        55,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -214,000
    Budget request, fiscal year 2018..................             - - -
 

    The White House Salaries and Expenses account supports 
staff and administrative services necessary for the direct 
support of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $55,000,000 
for the White House.

                 Executive Residence at the White House

                           OPERATING EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $12,723,000
Budget request, fiscal year 2018......................        12,917,000
Recommended in the bill...............................        12,917,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +194,000
    Budget request, fiscal year 2018..................             - - -
 

    These funds provide for the care, maintenance, staffing and 
operations of the Executive Residence, including official and 
ceremonial functions of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,917,000 
for the Operating Expenses of the Executive Residence. The bill 
continues the same restrictions on reimbursable expenses for 
use of the Executive Residence as were included in past years.

                   White House Repair and Restoration

 
 
 
Appropriation, fiscal year 2017.......................          $750,000
Budget request, fiscal year 2018......................           750,000
Recommended in the bill...............................           750,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    The White House repair and restoration account provides for 
the repair, alteration, and improvement of the Executive 
Residence at the White House.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $750,000 for 
White House Repair and Restoration.

                      Council of Economic Advisers

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................        $4,201,000
Budget request, fiscal year 2018......................         4,187,000
Recommended in the bill...............................         4,187,000
Bill compared with:
    Appropriation, fiscal year 2017...................           -14,000
    Budget request, fiscal year 2018..................             - - -
 

    The Council of Economic Advisers analyzes the national 
economy and its various segments, advises the President on 
economic developments, recommends policies for economic growth 
and stability, appraises economic programs and policies of the 
Federal Government, and assists in preparation of the annual 
Economic Report of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,187,000 for 
the Council of Economic Advisers.
    Evidence-based Policymaking.--The recent bipartisan focus 
on improving evidence-based policymaking has highlighted the 
need for stronger partnerships between researchers and 
government decision-makers to ensure that research informs 
policy and that agencies have the capacity to carry out 
rigorous evaluations that can produce actionable findings to 
improve government effectiveness. The Council of Economic 
Advisers could play a key role in helping the White House and 
federal agencies form partnerships with strong researchers, 
inside and outside government, to build knowledge about what 
works in priority areas. The Committee encourages CEA to work 
closely with the Office of Management and Budget on strategies 
for improving agency evaluation capacity, which could include 
identifying strong researchers to serve in government agencies 
under the Intergovernmental Personnel Act.

        National Security Council and Homeland Security Council

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $12,000,000
Budget request, fiscal year 2018......................        13,500,000
Recommended in the bill...............................        11,800,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -200,000
    Budget request, fiscal year 2018..................        -1,700,000
 

    The National Security Council and the Homeland Security 
Council have been combined to form the National Security Staff 
which advises and assists the President in the integration of 
domestic, foreign, military, intelligence, and economic aspects 
of national security policy, and serves as the principal means 
of coordinating executive departments and agencies in the 
development and implementation of national security and 
homeland security policies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $11,800,000 
for the National Security Council (NSC) and Homeland Security 
Council.
    Staffing report.--The Committee is awaiting delivery of the 
staffing report directed in the fiscal year 2017 Committee 
report, and reiterates concerns of overstaffing to the point of 
rendering the Council ineffective. The Committee's 
recommendation adopts the elements of the request as presented 
in the object class schedule, but adjusts the total to reflect 
2016 personnel compensation and benefits levels. The Committee 
again directs the National Security Council to submit a report 
within 90 days of enactment of this Act that outlines the roles 
and responsibilities of all of its full time equivalent (FTE) 
employees. This report shall include a breakout of all 
positions and FTEs that are assigned from other agencies to the 
NSC and all FTEs which the NSC has detailed to other agencies 
as well as associated start and end dates of assignment and any 
unreimbursed costs. Finally, the report shall contain a 
staffing reduction plan on how the NSC proposes to meet the 
budget reduction.

                        Office of Administration

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $101,041,000
Budget request, fiscal year 2018......................       100,000,000
Recommended in the bill...............................       100,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -1,041,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of Administration is responsible for providing 
administrative services to the Executive Office of the 
President. These services include financial, personnel, 
procurement, information technology, records management, and 
general office services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $100,000,000 
for the Office of Administration. Of the recommended amount, 
not to exceed $12,800,000 is available until expended for 
modernization of the information technology infrastructure 
within the Executive Office of the President.

                    Office of Management and Budget

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $95,000,000
Budget request, fiscal year 2018......................       103,000,000
Recommended in the bill...............................       100,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        +5,000,000
    Budget request, fiscal year 2018..................        -3,000,000
 

    The Office of Management and Budget (OMB) assists the 
President in the discharge of budgetary, economic, management, 
and other executive responsibilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $100,000,000 
for OMB. The recommendation also continues several long-
standing provisos, not requested by the President, limiting 
certain OMB activities.
    Budget Submission.--The recommendation provides sufficient 
funds for OMB to consult with and provide Congressional 
Committees with an appropriate number of printed and electronic 
copies of the President's fiscal year 2019 budget request, 
including documents such as the Appendix, Historical Tables, 
and Analytical Perspectives. The Committee believes that if the 
Administration wants the Congress to consider its proposed 
budget that it should provide the Congress with copies of the 
budget request.
    Personnel and Obligations Report.--The Committee directs 
OMB to provide the Committees on Appropriations of the House 
and Senate with quarterly reports on personnel and obligations 
consisting of on-board staffing levels, estimated staffing 
levels by office for the remainder of the fiscal year, total 
obligations incurred to date, estimated total obligations for 
the remainder of the fiscal year, and a narrative description 
of current hiring initiatives.
    Unobligated Balances Report.--OMB is directed to report to 
the Committees on Appropriations of the House and Senate within 
45 days of the end of each fiscal quarter on available balances 
at the start of the fiscal year, current year obligations, and 
resulting unobligated balances for each discretionary account 
within the Financial Services and General Government 
subcommittee's jurisdiction.
    Efficiency Based Contracting Models.--The Committee notes 
that contracting models for digital government services and 
information technology services are available to agencies that 
will increase efficiencies and believes that more should be 
done to take advantage of these models. These proven 
contracting models have been shown to save government money and 
enhance the user experience. A report by OMB in March 2015 
identified no-cost contracting and transaction-based models as 
ones that are beneficial to agencies both in increased 
efficiencies and cost savings. Since that time, few agencies 
have moved forward on procuring technological solutions using 
these models. The Committee encourages OMB to work with 
agencies to identify opportunities for no-cost or transaction 
based contracting models in 2018.
    Social Cost of Carbon.--The Committee directs the Office of 
Information and Regulatory Affairs (OIRA) to rely on 
instruction included in the Executive Order ``Promoting Energy 
Independence and Economic Growth,'' dated March 28, 2017, and 
ensure that any estimates developed by agencies that include 
monetizing the value of changes in greenhouse gas emissions 
resulting from regulations are consistent with Executive Order 
12866 and OMB Circular A-4 of September 17, 2003. OIRA should 
not permit any regulations to be finalized using the Technical 
Support Document: Technical Update of the Social Cost of Carbon 
for Regulatory Impact Analysis Under Executive Order 12866, 
Interagency Working Group on Social Cost of Carbon, United 
States Government, May 2013, revised August 2016; or the 
Addendum to Technical Support Document on Social Cost of Carbon 
for Regulatory Impact Analysis Under Executive Order 12866: 
Application of the Methodology to Estimate the Social Cost of 
Methane and the Social Cost of Nitrous Oxide, Interagency 
Working Group on Social Cost of Greenhouse Gases, United States 
Government, August 2016.
    Intellectual Property.--The Committee continues to strongly 
support the Office of the Intellectual Property Enforcement 
Coordinator (IPEC), and encourages the Office to continue to 
promote private sector efforts to reduce online copyright 
infringement and to implement a meaningful plan, as called for 
in the Joint Strategic Plan, to enhance capacity building, 
outreach, and training programs to promote meaningful 
protection of American intellectual property abroad. Therefore, 
the Committee recommends no less than three FTEs dedicated 
solely to the Office of IPEC from OMB. The Committee also 
directs IPEC, with FTC, to initiate educational campaigns to 
raise consumer awareness about how content-theft sites serve as 
infiltration devices with malicious software, thereby enabling 
identity theft.
    Evidence-based Policy Making.--The Committee appreciates 
the valuable role OMB has played under recent administrations 
to strengthen agency capacity for evaluation and evidence-based 
policymaking, to encourage agency adoption of evidence-focused 
grant program designs in which grantees use and build evidence 
about what works in service delivery, and to foster development 
of cross-agency data-linkage infrastructure to support program 
evaluation while protecting privacy. However, these efforts 
have not reached many parts of government that could benefit. 
The Committee encourages OMB, in consultation with the Council 
of Economic Advisers and other White House offices, to develop 
strategies to accelerate learning about what works through 
rigorous evaluations and to create connections between 
researchers and policymakers that ensure the best evidence is 
brought to bear in decision-making. These strategies should 
draw upon important innovations in several agencies, such as 
creation of learning agendas to prioritize research and 
evaluation; new program designs such as tiered evidence and Pay 
for Success grants; recruitment of strong researchers from 
academic institutions to serve in government agencies under the 
Intergovernmental Personnel Act; partnerships with state and 
local governments that foster bottoms-up innovations that are 
evaluated to learn their impact; and collaborations with 
foundations focused on increasing government's capacity for 
rigorous research in important policy areas. The Committee 
believes that performance management activities carried out 
under the Government Performance and Results Act Modernization 
Act (GPRAMA) should be integrated into government-wide 
evidence-building efforts in ways that enhance learning and 
improvement.
    Improper Payments.--The Committee encourages OMB to 
continue working with agencies across the Federal government to 
ensure processes are in place to eliminate payments to deceased 
persons. OMB is again directed to report to the Committees on 
Appropriations of the House and Senate within 120 days of 
enactment of this Act on how it is ensuring that agencies are 
not making improper payments to deceased individuals, and 
demonstrate improvements over the prior year.
    DATA Act.--The Committee recognizes OMB's responsibilities 
related to implementation of the Digital Accountability and 
Transparency Act of 2014 (DATA Act), and urges OMB to 
adequately prioritize DATA Act implementation. The Committee 
directs OMB to ensure agency compliance of the data-centric 
approach to federal financial reporting and fully standardized 
automated agency data submissions. The Committee includes 
funding for activities associated with DATA Act implementation 
and expects OMB to keep the Committee informed on its DATA Act 
implementation efforts.
    Customer Service.--The Committee continues to support 
efforts to improve customer service in accordance with 
Executive Order 13571-Streamlining Service Delivery and 
Improving Customer Service. Despite those efforts, more needs 
to be done to improve the services that the government provides 
whether it is citizens calling the Internal Revenue Service 
with questions, or Office of Personnel Management processing 
Federal employment retirement claims. The Committee continues 
direction to OMB to develop standards to improve customer 
service for all agencies, and provide to the Committees on 
Appropriations of the House and Senate a report on how these 
standards are incorporated into the performance plans required 
under 31 U.S.C. 1115 within 90 days of the enactment of this 
Act.
    Performance Measures.--The Committee continues to urge OMB 
to work with agencies to ensure that agency funding requests in 
fiscal year 2019 are directly linked to agency performance 
plans. The Committee directs OMB to report to the Committees on 
Appropriations of the House and Senate within 180 days of 
enactment of this Act on its progress improving the use of 
performance measures in the Executive Branch's budgeting 
processes, and highlight examples of where improved performance 
links to the budget in the fiscal year 2018 budget 
justifications.
    Online Budget Repository.--The Committee encourages OMB to 
develop a central online repository where all Federal agency 
budgets and their respective justifications are publicly 
available in a consistent searchable, sortable, and machine 
readable format.
    Offsetting Collections Report.--The Committee directs OMB 
to submit a report to the House and Senate Committees on 
Appropriations concurrent with the fiscal year 2019 budget 
submission detailing the offsetting collections derived from 
non-federal sources that are authorized by law and not subject 
to appropriations.
    USASpending.gov.--The Committee encourages OMB to develop 
and implement an oversight process to regularly assess the 
consistency of the information reported on USASpending.gov by 
federal agencies.
    Information Technology Acquisition.--In an effort to 
shorten lengthy procurement cycles for federal agencies working 
to acquire information technology platforms, the Committee 
recommends that the OMB designate a federal agency most in need 
of enterprise-wide information technology improvement and 
undertake a twelve-month pilot to develop a model process for 
information technology acquisition. Development of this model 
should utilize more efficient procurement strategies for 
information technology devices and systems, and should include 
the acceptance of unsolicited proposals as well as properly 
justified sole-source procurements and other innovative and 
expediting acquisition methods to acquire, test, or experiment 
with information technology and cybersecurity products, 
services, and systems.

                 Office of National Drug Control Policy

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $19,274,000
Budget request, fiscal year 2018......................        18,400,000
Recommended in the bill...............................        18,400,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -874,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of National Drug Control Policy (ONDCP) was 
established by the Anti-Drug Abuse Act of 1988. As the 
President's primary source of support for counter-drug policy 
development and program oversight, ONDCP is responsible for 
developing and updating a National Drug Control Strategy, 
developing a National Drug Control Budget, and coordinating and 
evaluating the implementation of Federal drug control 
activities. In addition, ONDCP manages several counter-drug 
programs which are discussed under the ``Federal Drug Control 
Programs'' heading below. These programs include the High 
Intensity Drug Trafficking Areas (HIDTA) program and Drug-Free 
Communities grants.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $18,400,000 
for ONDCP Salaries and Expenses. The Committee expects ONDCP to 
focus resources on the counter-drug policy development, 
coordination, and evaluation functions which are the primary 
mission of the Office and the origins of its existence.
    The Committee strongly supports the Office of National Drug 
Control Policy programs to reduce drug use and drug 
trafficking, and its unique position as the coordinator of 
Federal programs. The Committee expects ONDCP to focus 
resources on the counter-drug policy development, coordination, 
and evaluation functions, which are the primary mission of the 
Office and the origins of its existence. To the extent 
practicable, ONDCP should prioritize discretionary funds to aid 
States that have identified heroin, cocaine, methamphetamine, 
and opioid addiction as threats, and are developing community 
responses to combat those drugs that prioritize treatment and 
health services over criminal punishment. ONDCP is directed to 
report to the Committees on Appropriations of the House and 
Senate within 90 days of enactment on how its programs are 
addressing these challenges.
    The Committee commends the work that ONDCP has done to aid 
rural communities in combating the opioid epidemic. More work 
is still needed to help some of the hardest hit communities in 
both rural America and Appalachia. The Committee expects ONDCP 
to coordinate with small and rural law enforcement agencies and 
develop strategies to improve the effectiveness of drug 
eradication efforts through shared intelligence, technology, 
and manpower despite limited resources.

                     FEDERAL DRUG CONTROL PROGRAMS

             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $254,000,000
Budget request, fiscal year 2018......................       246,525,000
Recommended in the bill...............................       254,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................        +7,475,000
 

    The High Intensity Drug Trafficking Areas (HIDTA) Program 
provides resources to Federal and State, local, and tribal 
agencies in designated HIDTAs to combat the production, 
transportation and distribution of illegal drugs; to seize 
assets derived from drug trafficking; to address violence in 
drug-plagued communities; and to disrupt the drug marketplace.
    Currently, 28 HIDTAs operate in 48 States plus the District 
of Columbia, Puerto Rico, and the Virgin Islands. Each HIDTA is 
managed by an Executive Board comprised of equal numbers of 
Federal, State, local or tribal officials. Each HIDTA Executive 
Board is responsible for designing and implementing initiatives 
for the specific drug trafficking threats in its region. 
Intelligence and information sharing are key elements of all 
HIDTA programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $254,000,000 
for the HIDTA Program. The Committee believes that the HIDTA 
program has demonstrated its effectiveness and can serve as an 
important tool in combating problems of drug trafficking and 
drug-related violence.
    The Committee includes language requiring that existing 
HIDTAs receive funding at least equal to the fiscal year 2017 
level unless the Director submits a justification for doing 
otherwise to the Committees on Appropriations, based on clearly 
articulated priorities and published performance measures.
    The recommendation includes bill language directing ONDCP 
to notify the Committees on Appropriations of the initial 
allocation of HIDTA funds no later than 45 days after 
enactment, and to notify the Committees of the proposed use of 
funds no later than 90 days after enactment. The language 
directs the ONDCP Director to work in consultation with the 
HIDTA Directors in determining the uses of that discretionary 
funding.
    Finally, the Committee recommendation specifies that up to 
$2,700,000 may be used for auditing services and related 
activities.

                  OTHER FEDERAL DRUG CONTROL PROGRAMS

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $114,871,000
Budget request, fiscal year 2018......................       103,662,000
Recommended in the bill...............................       108,843,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -6,028,000
    Budget request, fiscal year 2018..................        +5,181,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $108,843,000 
for Other Federal Drug Control Programs. The recommended level 
for fiscal year 2018 is distributed among specific programs and 
activities as follows:

 
 
 
Drug-Free Communities.................................       $91,000,000
Drug court training and technical assistance..........         2,000,000
Model Drug Laws (Section 1105 of P.L. 109-469)........         1,000,000
CARA Activities (Section 103 of P.L. 114-198).........         3,000,000
Anti-Doping activities................................         9,500,000
World Anti-Doping Agency dues.........................         2,343,000
 

    Within the total for the Drug-Free Communities program, 
$2,000,000 is for training authorized by Section 4 of P.L. 107-
82.

                          Unanticipated Needs

 
 
 
Appropriation, fiscal year 2017.......................          $800,000
Budget request, fiscal year 2018......................           798,000
Recommended in the bill...............................           798,000
Bill compared with:
    Appropriation, fiscal year 2017...................            -2,000
    Budget request, fiscal year 2018..................             - - -
 

    The unanticipated needs account enable the President to 
meet unanticipated exigencies in support of the national 
interest, security, or defense.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $798,000 for unanticipated needs 
in fiscal year 2018.

              Information Technology Oversight and Reform

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................       $27,000,000
Budget request, fiscal year 2018......................        25,000,000
Recommended in the bill...............................        20,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -7,000,000
    Budget request, fiscal year 2018..................        -5,000,000
 

    These funds support efforts to make the Federal 
Government's investments in information technology (IT) more 
efficient, secure and effective.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $20,000,000 
for IT activities. The Committee appreciates OMB's efforts to 
improve program and contract management of information 
technology investments as well as the Administration's efforts 
to utilize cloud computing and consolidate data centers. The 
Committee expects OMB to improve the processes used to develop 
information technology systems. The Committee directs OMB to 
provide the Committees on Appropriations of the House and the 
Senate with quarterly reports on savings this program 
identifies by fiscal year, agency and appropriation.

                  Special Assistance to the President

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................        $4,228,000
Budget request, fiscal year 2018......................         4,288,000
Recommended in the bill...............................         4,288,000
Bill compared with:
    Appropriation, fiscal year 2017...................           +60,000
    Budget request, fiscal year 2018..................             - - -
 

    These funds support the executive functions of the Office 
of the Vice President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,288,000 for 
the Office of the Vice President.

                Official Residence of the Vice President

                           OPERATING EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................          $299,000
Budget request, fiscal year 2018......................           302,000
Recommended in the bill...............................           302,000
Bill compared with:
    Appropriation, fiscal year 2017...................            +3,000
    Budget request, fiscal year 2018..................             - - -
 

    These funds support the care and operation of the Vice 
President's residence and specifically support equipment, 
furnishings, dining facilities, and services required to 
perform and discharge the Vice President's official duties, 
functions and obligations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $302,000 for 
the Operating Expenses of the Vice President's residence.

Administrative Provisions--Executive Office of the President and Funds 
                     Appropriated to the President

                     (INCLUDING TRANSFER OF FUNDS)

    Section 201. The Committee includes language permitting the 
transfer of not to exceed ten percent of funds between various 
accounts within the Executive Office of the President, with 
advance approval of the Committees on Appropriations. The 
amount of an appropriation shall not be increased by more than 
50 percent.
    Section 202. The Committee continues language requiring the 
Director of the Office of Management and Budget to report on 
the costs of implementing the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Public Law 111-203).
    Section 203. The Committee includes language requiring the 
Director of the Office of Management and Budget to include a 
statement of budgetary impact with any Executive Order or 
Presidential Memorandum issued or rescinded during fiscal year 
2018 where the regulatory cost exceeds $100,000,000.

                        TITLE III--THE JUDICIARY

    The funds recommended by the Committee in title III of the 
accompanying bill are for the operation and maintenance of 
United States Courts and include the salaries of judges, 
probation and pretrial services officers, public defenders, 
court clerks, law clerks, and other supporting personnel, as 
well as security costs, information technology, and other 
expenses of the Federal Judiciary. The Committee recommends a 
total of $7,093,625,000 in discretionary funding for the 
Judiciary in fiscal year 2018.
    In addition to direct appropriations, the Judiciary 
collects various fees and has certain multiyear funding 
authorities. The Judiciary uses these non-appropriated funds to 
offset its direct appropriation requirements. Consistent with 
prior year practices and section 608 of this Act, the Committee 
expects the Judiciary to submit a financial plan, within 60 
days of enactment of this Act, allocating all sources of 
available funds including appropriations, fee collections, and 
carryover balances. This financial plan will be the baseline 
for purposes of reprogramming notification.
    Improving the physical security at buildings occupied by 
the Judiciary and U.S. Marshals Service (USMS) and ensuring the 
integrity of the judicial process by providing secure 
facilities to conduct judicial business is a priority for the 
Committee. Under the General Services Administration's (GSA) 
Federal Buildings Fund appropriation, the Committee recommends 
$20,000,000 for the Judiciary Capital Security program for 
alterations to improve physical security in buildings occupied 
by the Judiciary and USMS.
    The Committee notes that a fair and efficient judicial 
system depends on ensuring citizens have reasonable access to 
the federal courts. The Committee encourages the Judiciary and 
the General Services Administration to collaborate with local 
stakeholders to facilitate continued community access to court 
services. The Committee further encourages the Judiciary, when 
developing its space requirements for a particular location, to 
continue to consider factors including the number of available 
judges, local facility conditions, security, rental and 
operating costs, the number and type of proceedings handled in 
that location, the location's distance to the next closest 
federal court facility, and the population served in that 
location.
    The Committee urges the Judiciary in coordination with GSA 
to consider practical and cost effective approaches to 
providing judicial services, as appropriate, in areas that lack 
a federal facility in which civil and criminal proceedings are 
held.
    The Judiciary shall provide to the House and Senate 
Committees on Appropriations a report addressing (1) trends in 
Public Access to Court Electronic Records (PACER) revenues 
since passage of the E-Government Act of 2002; (2) sources of 
PACER revenues broken out by general types of users, such as 
federal government, corporations, and individuals, over a five 
fiscal year period; (3) an itemization of how PACER revenues 
are spent (including the annual cost of operating the PACER 
Service Center, which performs functions such as billing and 
customer support) over the same five fiscal year period; and 
(4) initiatives planned or underway by the Judiciary to improve 
PACER technology, operations, or management for the purpose of 
providing greater functionality, an improved user experience, 
or greater efficiency. This report shall be provided no later 
than 120 days after the enactment of this Act.

                   Supreme Court of the United States

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $76,668,000
Budget request, fiscal year 2018......................        78,538,000
Recommended in the bill...............................        78,538,000
Bill compared with:
    Appropriation, fiscal year 2017...................        +1,870,000
    Budget request, fiscal year 2018..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $78,538,000 
for fiscal year 2018 for the salaries and expenses of personnel 
and the cost of operating the Supreme Court, excluding the care 
of the building and grounds. The Committee includes bill 
language making $1,500,000 available until expended for the 
purpose of making information technology investments. The 
Committee directs the Court to include an annual report with 
its budget justification materials, showing information 
technology carryover balances and describing expenditures made 
in the previous fiscal year and planned expenditures in the 
budget year.

                    CARE OF THE BUILDING AND GROUNDS

 
 
 
Appropriation, fiscal year 2017.......................       $14,868,000
Budget request, fiscal year 2018......................        15,689,000
Recommended in the bill...............................        15,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +132,000
    Budget request, fiscal year 2018..................          -689,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $15,000,000 
for fiscal year 2018, to remain available until expended. The 
Architect of the Capitol has responsibility for these functions 
and supervises the use of this appropriation.

         United States Court of Appeals for the Federal Circuit

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $30,108,000
Budget request, fiscal year 2018......................        31,075,000
Recommended in the bill...............................        30,592,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +484,000
    Budget request, fiscal year 2018..................          -483,000
 

                        COMMITTEE RECOMMENDATION

    The Court of Appeals for the Federal Circuit has exclusive 
national jurisdiction over a large number of diverse subject 
areas, including government contracts, patents, trademarks, 
Federal personnel, and veterans' benefits. The Committee 
recommends an appropriation of $30,592,000 for fiscal year 
2018.

               United States Court of International Trade

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $18,462,000
Budget request, fiscal year 2018......................        18,649,000
Recommended in the bill...............................        18,556,000
Bill compared with:
    Appropriation, fiscal year 2017...................       +94,000,000
    Budget request, fiscal year 2018..................       -93,000,000
 

                        COMMITTEE RECOMMENDATION

    The Court of International Trade has exclusive nationwide 
jurisdiction of civil actions against the United States and 
certain civil actions brought by the United States, arising out 
of import transactions and administration and enforcement of 
the Federal customs and international trade laws. The Committee 
recommends an appropriation of $18,556,000 for fiscal year 
2018.

    Courts of Appeals, District Courts, and Other Judicial Services

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................    $4,996,445,000
Budget request, fiscal year 2018......................     5,168,974,000
Recommended in the bill...............................     5,082,710,000
Bill compared with:
    Appropriation, fiscal year 2017...................       +86,265,000
    Budget request, fiscal year 2018..................       -86,264,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $5,082,710,000 
for the operations of the regional courts of appeals, district 
courts, bankruptcy courts, the Court of Federal Claims, and 
probation and pretrial services offices.
    The Committee recommends a reimbursement of $7,366,000 for 
fiscal year 2018 from the Vaccine Injury Compensation Trust 
Fund to cover expenses of the United States Court of Federal 
Claims associated with processing cases under the National 
Childhood Vaccine Injury Act of 1986.

                           DEFENDER SERVICES

 
 
 
Appropriation, fiscal year 2017.......................    $1,044,647,000
Budget request, fiscal year 2018......................     1,132,284,000
Recommended in the bill...............................     1,110,375,000
Bill compared with:
    Appropriation, fiscal year 2017...................       +65,728,000
    Budget request, fiscal year 2018..................       -21,909,000
 

                        COMMITTEE RECOMMENDATION

    This account provides funding for the operation of the 
Federal Public Defender and Community Defender organizations 
and for compensation and reimbursement of expenses of panel 
attorneys appointed pursuant to the Criminal Justice Act for 
representation in criminal cases. The Committee recommends an 
appropriation of $1,110,375,000 for fiscal year 2018.

                    FEES OF JURORS AND COMMISSIONERS

 
 
 
Appropriation, fiscal year 2017.......................       $39,929,000
Budget request, fiscal year 2018......................        52,673,000
Recommended in the bill...............................        39,929,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................       -12,744,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $39,929,000 
for payments to jurors and land commissioners for fiscal year 
2018.

                             COURT SECURITY

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $565,388,000
Budget request, fiscal year 2018......................       583,799,000
Recommended in the bill...............................       574,593,000
Bill compared with:
    Appropriation, fiscal year 2017...................        +9,205,000
    Budget request, fiscal year 2018..................        -9,206,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $574,593,000 
for Court Security in fiscal year 2018 to provide for necessary 
expenses of security and protective services in courtrooms and 
adjacent areas. The recommendation will provide for the highest 
priority security needs identified by the courts and the U.S. 
Marshals Service.

           Administrative Office of the United States Courts

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $87,500,000
Budget request, fiscal year 2018......................        90,339,000
Recommended in the bill...............................        87,920,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +420,000
    Budget request, fiscal year 2018..................        -2,419,000
 

                        COMMITTEE RECOMMENDATION

    The Administrative Office of the United States Courts (AO) 
provides administrative and management support to the United 
States Courts, including the probation and bankruptcy systems. 
It also supports the Judicial Conference of the United States 
in determining Federal Judiciary policies, in developing 
methods to assist the courts to conduct business efficiently 
and economically, and in enhancing the use of information 
technology in the courts. The Committee recommends an 
appropriation of $87,920,000 for the AO for fiscal year 2018.

                        Federal Judicial Center

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $28,335,000
Budget request, fiscal year 2018......................        29,082,000
Recommended in the bill...............................        28,708,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +373,000
    Budget request, fiscal year 2018..................          -374,000
 

                        COMMITTEE RECOMMENDATION

    The Federal Judicial Center (FJC) improves the management 
of Federal Judicial dockets and court administration through 
education for judges and staff, and research, evaluation, and 
planning assistance for the courts and the Judicial Conference. 
The Committee recommends an appropriation of $28,708,000 for 
the FJC for fiscal year 2018.

                  United States Sentencing Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $18,100,000
Budget request, fiscal year 2018......................        18,576,000
Recommended in the bill...............................        18,338,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +238,000
    Budget request, fiscal year 2018..................          -238,000
 

                        COMMITTEE RECOMMENDATION

    The purpose of the U.S. Sentencing Commission is to 
establish, review, and revise sentencing guidelines, policies, 
and practices for the Federal criminal justice system. The 
Commission is also required to monitor the operation of the 
guidelines and to identify and report necessary changes to the 
Congress. The Committee recommends $18,338,000 for the 
Commission for fiscal year 2018.

                Administrative Provisions--The Judiciary

                     (INCLUDING TRANSFER OF FUNDS)

    Section 301. The Committee continues language to permit 
funds for salaries and expenses to be available for employment 
of experts and consultant services as authorized by 5 U.S.C. 
3109.
    Section 302. The Committee continues language that permits 
up to five percent of any appropriation made available for 
fiscal year 2018 to be transferred between Judiciary 
appropriations provided that no appropriation shall be 
decreased by more than five percent or increased by more than 
ten percent by any such transfer except in certain 
circumstances. In addition, the language provides that any such 
transfer shall be treated as a reprogramming of funds under 
sections 604 and 608 of the accompanying bill and shall not be 
available for obligation or expenditure except in compliance 
with the procedures set forth in those sections.
    Section 303. The Committee continues language authorizing 
not to exceed $11,000 to be used for official reception and 
representation expenses incurred by the Judicial Conference of 
the United States.
    Section 304. The Committee continues language through 
fiscal year 2018 regarding the delegation of authority to the 
Judiciary for contracts for repairs of less than $100,000.
    Section 305. The Committee continues language to authorize 
a court security pilot program.
    Section 306. The Committee includes language requested by 
the Judicial Conference of the United States to extend 
temporary judgeships in Arizona, California, Florida, Kansas, 
Missouri, New Mexico, North Carolina, and Texas.
    Section 307. The Committee includes language requested by 
the Judicial Conference of the United States to extend 
temporary bankruptcy judgeships in Virginia, Michigan, Puerto 
Rico, Delaware, and Florida.

                     TITLE IV--DISTRICT OF COLUMBIA

                             Federal Funds

              FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT

 
 
 
Appropriation, fiscal year 2017.......................       $40,000,000
Budget request, fiscal year 2018......................        30,000,000
Recommended in the bill...............................        30,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -10,000,000
    Budget request, fiscal year 2018..................             - - -
 

    The Resident Tuition Support program, also known as the 
D.C. Tuition Assistance Grant (DCTAG) program, provides up to 
$10,000 annually for undergraduate District students to attend 
eligible four-year public universities and colleges nationwide 
at in-state tuition rates. Grants of up to $2,500 per year are 
available for students to attend private universities and 
colleges in the D.C. metropolitan area, private Historically 
Black Colleges and Universities nationwide, and public two-year 
community colleges nationwide.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $30,000,000 
for the resident tuition support program. The District of 
Columbia can contribute local funds to this program and is 
authorized to prioritize applications based on income and need 
if there is demand for the program beyond the available level 
of Federal funds.

   FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE 
                          DISTRICT OF COLUMBIA

 
 
 
Appropriation, fiscal year 2017.......................       $34,895,000
Budget request, fiscal year 2018......................        13,000,000
Recommended in the bill...............................        13,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -21,895,000
    Budget request, fiscal year 2018..................             - - -
 

    As the seat of the national government, the District of 
Columbia has a unique and significant responsibility for 
protecting the property and personnel of the Federal 
government. The Federal Payment for Emergency Planning and 
Security Costs is provided to help address the impact of the 
Federal presence on public safety in the District of Columbia.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $13,000,000 
for emergency planning and security costs. The recommendation 
reflects a reduction from the prior year as additional funds 
for inauguration costs are not needed in fiscal year 2018.

           FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

 
 
 
Appropriation, fiscal year 2017.......................      $274,611,000
Budget request, fiscal year 2018......................       265,400,000
Recommended in the bill...............................       265,400,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -9,211,000
    Budget request, fiscal year 2018..................             - - -
 

    Under the National Capital Revitalization and Self-
Government Improvement Act of 1997, the Federal government is 
required to finance the District of Columbia Courts. This 
Federal payment to the District of Columbia Courts funds the 
operations of the District of Columbia Court of Appeals, 
Superior Court, the Court System, and the Capital Improvement 
Program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $265,400,000 
for operation of the District of Columbia Courts. This amount 
includes $14,000,000 for the Court of Appeals; $121,000,000 for 
the Superior Court; $71,500,000 for the Court System; and 
$58,900,000 for capital improvements to courthouse facilities.

  FEDERAL PAYMENT FOR DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................       $49,890,000
Budget request, fiscal year 2018......................        49,890,000
Recommended in the bill...............................        49,890,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    The District of Columbia Courts appoint and compensate 
attorneys to represent persons who are financially unable to 
obtain such representation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $49,890,000 for Defender Services 
in the District of Columbia Courts.

 FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY 
                      FOR THE DISTRICT OF COLUMBIA

 
 
 
Appropriation, fiscal year 2017.......................      $248,008,000
Budget request, fiscal year 2018......................       244,298,000
Recommended in the bill...............................       244,298,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -3,710,000
    Budget request, fiscal year 2018..................             - - -
 

    The Court Services and Offender Supervision Agency (CSOSA) 
for the District of Columbia is an independent Federal agency 
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997. CSOSA acquired the 
operational responsibilities for the former District agencies 
in charge of probation and parole, and houses the Pretrial 
Services Agency (PSA) for the District of Columbia within its 
framework.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $244,298,000 
for CSOSA. Of the amounts provided, $180,840,000 is for 
Community Supervision and Sex Offender Registration and 
$63,458,000 is for pretrial services.

  FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA PUBLIC DEFENDER SERVICE

 
 
 
Appropriation, fiscal year 2017.......................       $41,829,000
Budget request, fiscal year 2018......................        40,082,000
Recommended in the bill...............................        40,082,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -1,747,000
    Budget request, fiscal year 2018..................             - - -
 

    The Public Defender Service (PDS) for the District of 
Columbia is an independent organization authorized by the 
National Capital Revitalization and Self-Government Improvement 
Act of 1997, whose purpose is to provide legal representation 
services within the District of Columbia justice system.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $40,082,000 
for public defender services for the District of Columbia.

      FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL

 
 
 
Appropriation, fiscal year 2017.......................        $2,000,000
Budget request, fiscal year 2018......................         1,900,000
Recommended in the bill...............................         1,900,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -100,000
    Budget request, fiscal year 2018..................             - - -
 

    The Criminal Justice Coordinating Council (CJCC) provides a 
forum for District of Columbia and Federal law enforcement to 
identify criminal justice issues and solutions, and improve the 
coordination of their efforts. In addition, the CJCC developed 
and maintains the Justice Integrated Information System which 
provides for the seamless sharing of information with Federal 
and local law enforcement.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $1,900,000 to 
the Criminal Justice Coordinating Council.

                FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS

 
 
 
Appropriation, fiscal year 2017.......................          $585,000
Budget request, fiscal year 2018......................           565,000
Recommended in the bill...............................           565,000
Bill compared with:
    Appropriation, fiscal year 2017...................           -20,000
    Budget request, fiscal year 2018..................             - - -
 

    This appropriation provides funding for the two judicial 
commissions. The first is the Judicial Nomination Commission 
(JNC), which recommends a panel of three candidates to the 
President for each judicial vacancy in the District of Columbia 
Court of Appeals and Superior Court. From the panel selected by 
the JNC, the President nominates a person for each vacancy and 
submits his or her name for confirmation to the Senate. The 
second commission is the Commission on Judicial Disabilities 
and Tenure (CJDT), which has jurisdiction over all judges of 
the Court of Appeals and Superior Court to determine whether a 
judge's conduct warrants disciplinary action and whether 
involuntary retirement of a judge for health reasons is 
warranted. In addition, the CJDT conducts evaluations of judges 
seeking reappointment and judges who retire and wish to 
continue service as a senior judge.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $295,000 for 
the Commission on Judicial Disabilities and Tenure, and 
$270,000 for the Judicial Nomination Commission.

                 FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT

 
 
 
Appropriation, fiscal year 2017.......................       $45,000,000
Budget request, fiscal year 2018......................        45,000,000
Recommended in the bill...............................        45,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    The Scholarships for Opportunity and Results (SOAR) Act, as 
reauthorized in the Financial Services and General Government 
Appropriations Act, 2017, authorizes funds to be evenly divided 
between District of Columbia Public Schools, Public Charter 
Schools and Opportunity Scholarships.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $45,000,000 
for school improvement. Based on the statutory funding formula, 
$15,000,000 is provided for District of Columbia Public 
Schools, $15,000,000 is provided for public charter schools, 
and $15,000,000 is provided for opportunity scholarships.

      FEDERAL PAYMENT FOR THE DISTRICT OF COLUMBIA NATIONAL GUARD

 
 
 
Appropriation, fiscal year 2017.......................          $450,000
Budget request, fiscal year 2018......................           435,000
Recommended in the bill...............................           435,000
Bill compared with:
    Appropriation, fiscal year 2017...................           -15,000
    Budget request, fiscal year 2018..................             - - -
 

    The Major General David F. Wherley, Jr. District of 
Columbia National Guard Retention and College Access Program 
pays for the costs of a tuition assistance program for guard 
members.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $435,000 for 
the Major General David F. Wherley, Jr. District of Columbia 
National Guard Retention and College Access Program. The 
Committee acknowledges the unique role of the D.C. National 
Guard in addressing emergencies that may occur as a result of 
the presence of the Federal government.

         FEDERAL PAYMENT FOR TESTING AND TREATMENT OF HIV/AIDS

 
 
 
Appropriation, fiscal year 2017.......................        $5,000,000
Budget request, fiscal year 2018......................         5,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    Currently, 2 percent of the population of the District of 
Columbia has been diagnosed with HIV/AIDS. This percentage 
surpasses the generally accepted definition of an epidemic, 
which is 1 percent of the population. Between 2007 and 2015, 
the number of new HIV infections has dropped by 72 percent.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $5,000,000 for a 
Federal payment for testing, education, and treatment of HIV/
AIDS.

                       District of Columbia Funds

    The Committee continues to appropriate local funds to the 
District of Columbia in accordance with and required by Article 
I, Section 8, clause 17 and Article I, Section 9, clause 7 of 
the Constitution. The bill provides local funds for the 
operation of the District of Columbia as approved by the 
District of Columbia Council and the Mayor.
    The Committee includes language that provides the District 
with the authority to spend their local funds in the following 
fiscal year in the event of an absence of Federal 
appropriations. This authority is continued in section 816 of 
this Act.

                     TITLE V--INDEPENDENT AGENCIES

             Administrative Conference of the United States

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................        $3,100,000
Budget request, fiscal year 2018......................         3,094,000
Recommended in the bill...............................         3,100,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................            +6,000
 

    The Administrative Conference of the United States (ACUS) 
is an independent agency that studies Federal administrative 
procedures and processes to recommend improvements to the 
President, Congress and other agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,100,000 for ACUS.

                   Consumer Product Safety Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $126,000,000
Budget request, fiscal year 2018......................       123,000,000
Recommended in the bill...............................       123,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -3,000,000
    Budget request, fiscal year 2018..................             - - -
 

    The Consumer Product Safety Act established the Consumer 
Product Safety Commission (CPSC), an independent Federal 
regulatory agency, to reduce the risk of injury associated with 
consumer products.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $123,000,000 
for the CPSC for fiscal year 2018.
    Within the amount provided under this heading, $1,300,000 
is for the Virginia Graeme Baker Pool and Spa Safety Act grant 
program. The Committee commends the CPSC for continuing to 
provide resources for the national and grassroots ``Pool 
Safely'' campaign, a safety information and education program 
designed to reduce child drownings and near drowning injuries 
and maintain a zero fatality rate for drain entrapments. This 
multifaceted initiative includes consumer and industry 
education efforts, press events, partnerships, outreach, and 
advertising. The Committee expects the CPSC to maintain the 
fiscal year 2017 levels for the ``Pool Safely'' campaign.
    Voluntary Recall.--The Committee remains concerned about 
proposed changes to the voluntary recall system that would 
serve to negatively impact small businesses. Despite 
overwhelming opposition, the Commission has failed to withdraw 
its proposed rule on voluntary recalls. The Committee opposes 
making unnecessary changes to a recall system that has worked 
well over the past 40 years, owing to a successful partnership 
between businesses and the Commission. To that end, the 
Committee strongly encourages the Commission to withdraw the 
proposed rule.
    Public Disclosures of Information.--Section 6(b) of the 
Consumer Product Safety Act (CPSA) requires CPSC to take 
reasonable steps to ensure that any disclosure of information 
relating to a consumer product safety incident is accurate and 
fair. The Committee remains concerned that the Commission has 
not withdrawn a proposed rule on section 6(b) that threatens to 
undermine a successful partnership based on openness and trust 
between industry and the Commission. The Committee cautions the 
Commission about making changes to a process that has succeeded 
in both protecting the consumer against harm and protecting 
industry against inaccurate disclosures of information before 
an investigation has been completed. Consequently, the 
Committee strongly encourages the Commission to withdraw the 
proposed rule.
    Window Coverings.--The Committee continues to support the 
cooperative efforts of CPSC and the window coverings industry 
to educate consumers on window covering safety. The Committee 
encourages continued cooperation between CPSC and industry on 
developing voluntary standards for its products through the 
current voluntary standards setting process.

      ADMINISTRATIVE PROVISIONS-CONSUMER PRODUCT SAFETY COMMISSION

    Section 501. The Committee continues language prohibiting 
funds to finalize, implement, or enforce the proposed rule on 
recreational off-highway vehicles until a study is completed by 
the National Academy of Sciences.
    Section 502. The Committee includes new language 
prohibiting funds to finalize any rule by the Consumer Product 
Safety Commission relating to blade-contact injuries on table 
saws.

                     Election Assistance Commission

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................        $9,600,000
Budget request, fiscal year 2018......................         9,200,000
Recommended in the bill...............................         7,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -2,600,000
    Budget request, fiscal year 2018..................        -2,200,000
 

    The Election Assistance Commission (EAC) was established by 
the Help America Vote Act of 2002 (HAVA) and is charged with 
implementing provisions of that Act relating to the reform of 
Federal election administration.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $7,000,000 for 
the Salaries and Expenses of the EAC.

                   Federal Communications Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $356,711,000
Budget request, fiscal year 2018......................       322,035,000
Recommended in the bill...............................       322,035,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -34,676,000
    Budget request, fiscal year 2018..................             - - -
 

    The mission of the Federal Communications Commission (FCC) 
is to implement the Communications Act of 1934 and assure the 
availability of high quality communications services for all 
Americans.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $322,035,000 
for the Salaries and Expenses of the FCC, all of which is to be 
derived from offsetting collections. The Committee also 
includes a cap of $111,150,000 for the administration of 
spectrum auctions.
    Broadcaster Relocation.--The Middle Class Tax Relief and 
Job Creation Act of 2012 (P.L. 112-96) authorized the FCC to 
conduct a voluntary incentive auction and Congress allocated 
$1.75 billion to reimburse the service and equipment costs of 
channel relocation incurred by the television broadcast 
industry, such as changes to antennas, transmitters, 
transmission lines, and towers. The Committee is aware of 
concerns about the length of time and funds available to 
broadcasters to repack stations and the Committee intends to 
monitor this issue closely. Both broadcasters and entities who 
purchased spectrum participated in good faith to make the 
incentive auction successful. The Committee supported the 
Commission's administration of the incentive auction and 
expects the FCC to take into careful consideration any 
participating entity's concerns.
    Net Neutrality/Open Internet.--The Committee supports the 
recent efforts by the FCC to scale back previous actions taken 
by the Commission to regulate the internet. Imposing heavy-
handed economic regulation disincentivizes growth, particularly 
in areas of the country that need infrastructure investment the 
most. Government agencies should not get in the way of U.S. 
innovation, investment, and expansion and the Committee 
strongly supports the Commission's efforts to support broadband 
expansion and consumer choice.
    USF High Cost Program.--The committee appreciates the 
ongoing commitment of the FCC to its multi-year initiative to 
modernize and target the focus of the Universal Service Fund 
(USF), and particularly its High Cost program. Nevertheless, 
the outcome of these efforts can be troubling particularly with 
regard to stand-alone broadband services and may conflict with 
the statutory mandate of providing specific, predictable, and 
sufficient support to ensure universal consumer access to 
reasonably comparable services at reasonably comparable rates. 
Because of the inconsistent way the individual program budgets 
have been applied, the application of these control mechanisms 
to the four programs is particularly concerning. The Committee 
therefore urges the FCC to engage in a comprehensive assessment 
of each program's goals and challenges, use the resulting 
analysis to adjust the respective USF programs to allow them to 
sufficiently respond to their statutory missions, and, if 
appropriate, apply on a going-forward basis, uniform and 
consistent inflationary growth mechanisms to each program to 
further ensure their respective ability to successfully respond 
to our national universal service objectives. The Committee 
directs the FCC to submit, within 120 days of enactment of this 
Act, a report outlining its analysis, conclusions, and actions 
in this regard.
    USF Reform.--In recognition of the ongoing rapidly changing 
communications industry landscape, the Committee believes it is 
imperative that the Federal State Joint Board on Universal 
Service move aggressively to identify and provide USF 
contributions reform recommendations to the Commission. The 
Committee further urges that such recommendations should 
expressly recognize that continuing to base contributions only 
on legacy telecommunications service revenues (and a limited 
number of other service revenues) will undermine, and 
ultimately threaten universal access to advanced communications 
by eroding the sustainability of the USF program and placing 
unfair and inequitable burdens for support of the program on a 
small subset of communications network users.
    Rates.--Since 2012, the FCC has forced telecommunications 
providers in rural areas to raise the rates for local voice 
service. There are concerns about the effects of these rate 
increases on rural residents and the methodology used to 
determine the minimum rates. As the Commission works to 
complete a rule to develop a ``rate floor'' methodology, the 
Committee recommends the FCC at the very least freeze any rate 
floor increases at the current level while determining whether 
the rate floor has met its intended purposes, whether changes 
should be made to the current rate floor methodology, or 
whether it should be eliminated entirely.
    Broadband Access.--The Committee strongly encourages the 
FCC to continue to work with the Universal Service 
Administrative Company (USAC) to allocate Universal Service 
Funds (USF) for broadband expansion in rural and economically 
disadvantaged areas in order to maximize the use of USF funds. 
The Committee believes the deployment of broadband in rural and 
economically disadvantaged areas is a driver of economic 
development, jobs, and new education opportunities and expects 
the Commission to prioritize these efforts.
    Territories and Tribal Lands.--The Committee is concerned 
about the disparity in access to broadband between the 
territories, tribal lands, and the 50 states. The Committee 
encourages the Commission to implement policies that increase 
broadband access and adoption in these areas.

                 Federal Deposit Insurance Corporation

                    OFFICE OF THE INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2017.......................       $35,958,000
Budget request, fiscal year 2018......................        39,136,000
Recommended in the bill...............................        39,136,000
Bill compared with:
    Appropriation, fiscal year 2017...................         3,178,000
    Budget request, fiscal year 2018..................             - - -
 

    Funding for the Office of the Inspector General (OIG) at 
the Federal Deposit Insurance Corporation (FDIC) is provided 
pursuant to 31 U.S.C. 1105(a)(25), which requires a separate 
appropriation for each Office of Inspector General established 
under section 11(2) of the Inspector General Act of 1978.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $39,136,000 from the Deposit 
Insurance Fund and the Federal Savings and Loan Insurance 
Corporation (FSLIC) Resolution Fund to finance the OIG.

                      Federal Election Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $79,119,000
Budget request, fiscal year 2018......................        71,250,000
Recommended in the bill...............................        71,250,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -7,869,000
    Budget request, fiscal year 2018..................             - - -
 

    The Federal Election Commission (FEC) administers the 
disclosure of campaign finance information, enforces 
limitations on contributions and expenditures, and performs 
other tasks related to Federal elections.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $71,250,000 
for the Salaries and Expenses of the FEC.

                   Federal Labor Relations Authority

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $26,200,000
Budget request, fiscal year 2018......................        26,200,000
Recommended in the bill...............................        26,200,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    Established by title VII of the Civil Service Reform Act of 
1978, the Federal Labor Relations Authority (FLRA) serves as a 
neutral arbiter in the labor activities of non-postal Federal 
employees, Departments and agencies, and Federal unions on 
matters outlined in the Act, including collective bargaining 
and the settlement of disputes. Establishment of the FLRA gives 
full recognition to the role of the Federal Government as an 
employer. Under the Foreign Service Act of 1980, the FLRA also 
addresses similar issues affecting Foreign Service personnel by 
providing staff support for the Foreign Service Impasse 
Disputes Panel and the Foreign Service Labor Relations Board.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $26,200,000 
for the FLRA for fiscal year 2018.

                        Federal Trade Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $313,000,000
Budget request, fiscal year 2018......................       306,317,000
Recommended in the bill...............................       306,317,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -6,683,000
    Budget request, fiscal year 2018..................             - - -
 

    The mission of the Federal Trade Commission (FTC) is to 
enforce a variety of Federal antitrust and consumer protection 
laws. Appropriations for both the Antitrust Division of the 
Department of Justice and the Commission are partially financed 
by Hart-Scott-Rodino Act pre-merger filing fees. The 
Commission's appropriation is also partially offset by Do-Not-
Call registry fees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $306,317,000 
for the Salaries and Expenses of the FTC. The Congressional 
Budget Office estimates $126,000,000 of collections from Hart-
Scott-Rodino premerger filing fees and $16,000,000 of 
collections from Do-Not-Call list fees which partially offset 
the appropriation requirement for this account.
    Privacy.--The Committee is concerned about the confusion 
and misreporting stemming from the passage of the Congressional 
Review Act on broadband privacy. This was an important step in 
restoring the Federal Trade Commission (FTC) as the online 
privacy cop for consumers for all online activities. The FTC is 
an independent enforcement agency that has enforced a wide 
range of laws to protect the privacy of consumers' personal 
information for decades. The FTC is directed to report on its 
enforcement approach with regard to policing the privacy 
practices of ISPs and online services, and the FTC's plans to 
continue to ensure that consumer privacy is protected online 
regardless of the type of company that has the data.
    Credit Education.--The Committee believes that consumers 
should be able to obtain personalized, legitimate credit 
education products and tools in order to improve their 
financial health. However, the Committee is concerned that the 
broad scope of the Credit Repair Organizations Act (CROA) has 
created a barrier for legitimate companies from being able to 
provide these valuable services in a consumer-friendly manner. 
The Committee directs the FTC to report to the Committees on 
Appropriations of the House and Senate, the Committee on Energy 
and Commerce of the House, the Committee on Commerce, Science, 
and Transportation of the Senate, the Committee on Financial 
Services of the House, and the Committee on Banking, Housing, 
and Urban Affairs of the Senate, not later than 120 days after 
the date of enactment of this Act, on the benefits of consumer 
access to credit education and improvement services, and the 
extent to which CROA impedes the research, development, and 
provision of new credit education products, services, and 
technology in the marketplace by consumer reporting agencies as 
defined by the Fair Credit Reporting Act and other entities. 
The FTC shall publish the report on its website.
    Contact Lenses.--The Committee is aware of the FTC's 
ongoing review of its contact lens rule and urges the agency to 
make modifications to the rule that prioritize patient safety, 
consumer accessibility, and strengthen enforcement mechanisms.
    Piracy.--The online theft of creative content poses 
significant threats to both content creators and American 
consumers. The Committee encourages the FTC to help raise 
consumer awareness about the risks to consumers from content-
theft sites, many of which serve as bait to infect devices with 
malicious software enabling identity theft and other consumer 
scams.

                    General Services Administration

    The Committee continues several reporting requirements for 
the General Services Administration (GSA) for fiscal year 2018.
    Takings and Exchanges.--Using existing statutory 
authorities, GSA has been working to dispose of properties that 
no longer meet the needs of Federal agencies in exchange for 
assets of like value. Some of these exchanges are very complex 
in nature and involve multi-year, multi-party, and multi-
billion dollar contracts. In addition, GSA also has the 
statutory authority to take properties. The Committee believes 
in some instances employing such authorities can result in 
savings to the taxpayer when appropriately executed and wants 
to be kept informed of these activities. In order to provide 
increased transparency for the use and planned use of these 
authorities, the Administrator is directed to report to the 
Committees on Appropriations of the House and Senate not later 
than 30 days after the end of each quarter on the use of these 
authorities. The report shall include a description of all 
takings and exchange actions that occurred or were considered 
during the most recently completed quarter of the fiscal year, 
including the costs, benefits, and risks for each action. The 
report shall also include the planned or considered use of 
takings and exchange authorities during the remainder of the 
fiscal year, including the costs, benefits, and risks of each 
action.
    Spending Report.--Within 50 days after the end of each 
quarter, GSA shall submit spending reports to the Committees on 
Appropriations of the House and Senate. The reports shall 
include actual obligations incurred and estimated obligations 
for the remainder of the fiscal year for each appropriation in 
the Federal Buildings Fund and regular discretionary 
appropriations. The reports shall include obligations by object 
class, program, project and activity.
    State of the Portfolio.--Not later than 45 days after the 
date of enactment of this Act, the Administrator shall submit 
to the Committees on Appropriations of the House and Senate a 
report on the state of the Public Buildings Service's real 
estate portfolio for fiscal year 2017. The content included in 
the report shall be comparable to the tabular information 
provided in past State of the Portfolio reports, including, but 
not limited to, the number of leases; the number of buildings; 
amount of square feet, revenue, expenses by type, and vacant 
space; top customers by square feet and annual rent; completed 
new construction, completed major repairs and alterations, and 
disposals, in total and by region where appropriate.
    Land Ports of Entry State of the Portfolio.--Within 90 days 
of the date of enactment of this Act, GSA is directed to 
provide the Committees on Appropriations of the House and 
Senate a report on the state of the land ports of entry 
portfolio. The content of this report shall include, but shall 
not be limited to, a prioritized list of new construction and 
major repairs and alterations projects.
    Rental Rates.--The Committee expects GSA to provide 
workspace for its customers at commercially-comparable rental 
rates and at a superior value to the taxpayer. The Committee 
directs GSA to provide the Committees on Appropriations of the 
House and Senate a report describing GSA's methodology for 
calculating rental rates for Congressional offices located in 
Federal Courthouses within 45 days of the date of enactment of 
this Act.
    IT Modernization.--The Committee recognizes the importance 
of recent legislative efforts to modernize the way the Federal 
government uses technology and appreciates proposed solutions 
for replacing outdated and vulnerable legacy IT systems across 
the government. The Committee will continue to review proposed 
legislative approaches to the Federal government's digital 
infrastructure while also safeguarding the investment of 
American taxpayers.
    FBI Headquarters.--The Committee directs the Administrator 
of the General Services Administration, not later than 60 days 
after the enactment of this Act, to develop an alternate plan 
for the consolidation of the Federal Bureau of Investigation 
headquarters within the National Capital Region.

                        REAL PROPERTY ACTIVITIES

                         FEDERAL BUILDINGS FUND

                 LIMITATIONS ON AVAILABILITY OF REVENUE

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Limitations on Availability of Revenue:...............
Limitation on availability, fiscal year 2017..........    $8,845,147,000
Limitation on availability, budget request, fiscal         9,950,519,000
 year 2018............................................
Recommended in the bill...............................     7,864,111,000
Bill compared with:
    Availability limitation, fiscal year 2017.........      -981,036,000
    Availability limitation, fiscal year 2018 request.    -2,086,408,000
 

    The Federal Buildings Fund (FBF) accounts for the 
activities of the Public Buildings Service (PBS), which 
provides space and services for Federal agencies in a 
relationship similar to that of landlord and tenant. The FBF, 
established in 1975, replaces direct appropriations with income 
derived from rent assessments, which approximate commercial 
rates for comparable space and services. The Committee makes 
funds available through a process of placing limitations on 
obligations from the FBF as a way of allocating funds for 
various FBF activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on the availability 
of funds of $7,864,111,000 for the FBF.
    To carry out the purposes of the FBF, the revenues and 
collections deposited into the FBF shall be available for 
necessary expenses in the aggregate amount of $7,864,111,000 of 
which: $180,000,000 is for repairs and alterations, 
$5,462,345,000 is for rental of space, and $2,221,766,000 is 
for building operations.
    Historically, prior to obligating funding for prospectus-
level construction, alterations, or leases, the Administration 
has waited for the project to be authorized through a 
resolution approved by the Committee on Transportation and 
Infrastructure in the House and the Committee on Environment 
and Public Works in the Senate as required by title 40 of the 
United States Code and in accordance with the proviso included 
in the FBF appropriations limiting the obligation of funds to 
prospectus-level projects approved by the authorizing 
committees. The Committee supports this process and believes 
that prospectus-level projects warrant a thorough review from 
both the Appropriations Committee and the authorizing 
committees. The Committee expects the Administration to 
continue to follow this process.

                      CONSTRUCTION AND ACQUISITION

 
 
 
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2017..........      $205,749,000
Limitation on availability, budget request, fiscal           790,491,000
 year 2018............................................
Recommended in the bill...............................             - - -
Bill compared with:
    Availability limitation, fiscal year 2017.........      -205,749,000
    Availability limitation, fiscal year 2018 request.      -790,491,000
 

    The construction and acquisition fund finances the project 
cost of design, construction, and management and inspection 
costs of new Federal facilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $0 for 
construction and acquisition.

                        REPAIRS AND ALTERATIONS

 
 
 
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2017..........      $676,035,000
Limitation on availability, budget request, fiscal         1,444,494,000
 year 2018............................................
Recommended in the bill...............................       180,000,000
Bill compared with:
    Availability limitation, fiscal year 2017.........      -496,035,000
    Availability limitation, fiscal year 2018 request.    -1,264,494,000
 

    The repairs and alterations activity funds the project cost 
of design, construction, management and inspection for the 
repair, alteration, and modernization of existing real estate 
assets in addition to various special programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $180,000,000 to 
remain available until expended for repairs and alterations.
    Basic Repairs and Alterations.--The Committee recommends 
$110,000,000 for non-recurring repairs and alterations projects 
between $10,000 and the current prospectus threshold of 
$3,095,000.
    Fire and Life Safety.--The Committee recommends $30,000,000 
to improve building safety, abate hazardous material, and 
repair structural deficiencies. These projects include, but are 
not limited to, fire alarm, sprinkler, electrical, ventilation, 
heating, and elevator systems.
    Judiciary Court Security Program.--The Committee recommends 
$20,000,000 for the construction, acquisition, repair, 
alteration, and security projects for the Judiciary as 
prioritized by the Judicial Conference of the United States.
    Consolidation Activities.--The Committee recommends 
$20,000,000 for the cost of consolidating space. Given the 
reduction in the Federal workforce and Federal agency budgets, 
the Committee believes that it is prudent to reduce the GSA 
building inventory, particularly with regard to the thousands 
of surplus and underutilized buildings. Projects selected for 
consolidation should result in reduced annual rent paid by the 
agency, not exceed $10,000,000 in costs, and have an approved 
prospectus. GSA is required to submit a spend plan and 
explanation for each project including estimated savings to the 
Committees on Appropriations of the House and Senate before 
obligating funds.

                            RENTAL OF SPACE

 
 
 
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2017..........    $5,628,363,000
Limitation on availability, budget request, fiscal         5,493,768,000
 year 2018............................................
Recommended in the bill...............................     5,462,345,000
Bill compared with:
    Availability limitation, fiscal year 2017.........      -166,018,000
    Availability limitation, fiscal year 2018 request.       -31,423,000
 

    The rental of space program funds lease payments made to 
privately-owned buildings, temporary space for Federal 
employees during major repair and alteration projects, and 
relocations from Federal buildings due to forced moves and 
relocations as a result of health and safety conditions.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $5,462,345,000 for 
rental of space. The Committee expects GSA to reduce the amount 
of leased space in its inventory at a faster pace.

                          BUILDING OPERATIONS

 
 
 
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2017..........    $2,335,000,000
Limitation on availability, budget request, fiscal         2,221,766,000
 year 2018............................................
Recommended in the bill...............................     2,221,766,000
Bill compared with:
    Availability limitation, fiscal year 2017.........      -113,234,000
    Availability limitation, fiscal year 2018 request.             - - -
 

    The building operations account funds services that Federal 
agencies in GSA-owned buildings and occasionally in GSA-leased 
buildings, when not provided by the lessor, directly benefit 
from such as building security, cleaning, utilities, window 
washing, snow removal, pest control, and maintenance of 
heating, air conditioning, ventilating, plumbing, sewage, 
electrical, elevator, escalator, and fire protection systems. 
In addition, this account funds all the personnel and 
administrative expenses for carrying out construction and 
acquisition, repair and alteration, and leasing activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $2,221,766,000 for 
Building Operations and Maintenance. Within this amount, 
$1,146,089,000 is for building services and $1,075,677,000 is 
for salaries and expenses. Up to five percent of the funds may 
be transferred between these activities upon the advance 
notification to the Committees on Appropriations of the House 
and Senate. Not later than 60 days after the date of enactment 
of this Act, the Administrator shall submit a spend plan, by 
region, regarding the use of these funds to the Committees on 
Appropriations of the House and Senate.

                           GENERAL ACTIVITIES

                         GOVERNMENT-WIDE POLICY

 
 
 
Appropriation, fiscal year 2017.......................       $60,000,000
Budget request, fiscal year 2018......................        53,499,000
Recommended in the bill...............................        53,499,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -6,501,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of Government-Wide Policy provides Federal 
agencies with guidelines, best practices, and performance 
measures for complying with all the laws, regulations, and 
executive orders related to: acquisition and procurement, 
personal and real property management, travel and 
transportation management, electronic customer service 
delivery, and use of Federal advisory committees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $53,499,000 
for Government-wide Policy.
    The Committee recognizes sustainable roofing systems as a 
viable option for government buildings. The Committee notes 
that proper thermal insulation is a cost-effective and energy 
efficient technology.
    SDVOSB Participation.--The Committee encourages GSA to work 
with the Department of Veterans Affairs and other Federal 
agencies to ensure the participation of Service-Disabled 
Veteran-Owned Small Businesses (SDVOSBs), consistent with the 
provisions of P.L. 109-461 and Executive Order 13360, in 
conjunction with the Federal Strategic Sourcing Initiative 
(FSSI) for purchasing channel decisions, other agency 
contracting and procurement opportunities relevant to 
Janitorial and Sanitation products, and other areas. The 
Committee encourages GSA to take proactive steps to ensure 
SDVOSBs have fair and reasonable opportunities to participate 
in GSA procurement processes when they have valid Federal 
Supply Schedules (FSS).
    Commercial Supplier Agreements.--By December 31, 2017, GSA 
shall reduce costs to small business resellers of commercial 
software, hardware, and related products interested in doing 
business with GSA by: (1) Publishing a final rule making clear 
which commercial supplier agreement terms conflict with Federal 
Law and are thus unenforceable against the Government, and (2) 
establishing a means for small business resellers to quickly 
update commercial supplier agreements.

                           OPERATING EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $58,541,000
Budget request, fiscal year 2018......................        45,645,000
Recommended in the bill...............................        45,645,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -12,896,000
    Budget request, fiscal year 2018..................             - - -
 

    This account provides appropriations for activities that 
are not feasible for a user fee arrangement. Included under 
this heading are personal property utilization and donation 
activities of the Federal Acquisition Service; real property 
utilization and disposal activities of the Public Buildings 
Service; select management and administration activities 
including support of government-wide emergency management 
activities; and top-level, agency-wide management communication 
activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $45,645,000 
for operating expenses. Within the amount provided under this 
heading, $24,357,000 is for Real and Personal Property 
Management and Disposal, and $23,288,000 is for the Office of 
the Administrator.
    Federal Real Property Profile.--The Committee remains 
extremely frustrated with the slow pace at which GSA and other 
Federal agencies are improving the accuracy of the Federal Real 
Property Profile. The U.S. Government Accountability Office 
(GAO) named managing Federal real property to its 2017 High 
Risk List. The Committee is concerned that despite language in 
the fiscal year 2015, 2016, and 2017 reports, GSA has not made 
progress on the value and accuracy of its inventory, taken 
steps to include public lands as required by Executive Order 
13327, made the FRPP available to the public, or geo-enabling 
the FRPP. The Committee is outraged that the Federal Government 
cannot provide an accurate accounting to the American public of 
all the property that it owns. The Committee expects GSA to 
work with agencies across government and utilize geographic 
information technology to improve the data contained in this 
report and enhance transparency to the American taxpayer. The 
Committee directs GSA to report to the Committees on 
Appropriations of the House and Senate on steps taken to 
improve the quality and transparency of the profile within 60 
days after the enactment of this Act.

                   CIVILIAN BOARD OF CONTRACT APPEALS

 
 
 
Appropriation, fiscal year 2017.......................        $9,275,000
Budget request, fiscal year 2018......................         8,795,000
Recommended in the bill...............................         8,795,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -480,000
    Budget request, fiscal year 2018..................             - - -
 

    This account provides appropriations for the Civilian Board 
of Contract Appeals (CBCA). The CBCA is charged with 
facilitating the prompt, efficient, and inexpensive resolution 
of disputes through the use of alternate dispute resolution.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,795,000 for 
the Civilian Board of Contract Appeals.

                      OFFICE OF INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2017.......................       $65,000,000
Budget request, fiscal year 2018......................        65,000,000
Recommended in the bill...............................        65,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    This appropriation provides agency-wide audit and 
investigative functions to identify and correct GSA management 
and administrative deficiencies that create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides internal and 
contract audits. Internal audits review and evaluate all facets 
of GSA operations and programs, test internal control systems, 
and develop information to improve operating efficiencies and 
enhance customer services. Contract audits provide professional 
advice to GSA contracting officials on accounting and financial 
matters relative to the negotiation, award, administration, 
repricing, and settlement of contracts. The investigative 
function provides for the detection and investigation of 
improper and illegal activities involving GSA programs, 
personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $65,000,000 
for the Office of Inspector General.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

 
 
 
Appropriation, fiscal year 2017.......................        $3,865,000
Budget request, fiscal year 2018......................         4,754,000
Recommended in the bill...............................         4,754,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +889,000
    Budget request, fiscal year 2018..................             - - -
 

    This appropriation provides pensions, office staff, and 
related expenses for former Presidents Jimmy Carter, George 
H.W. Bush, William Clinton, and George W. Bush, and Barack 
Obama.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,754,000 for 
allowances and office staff for former Presidents.

                     FEDERAL CITIZEN SERVICES FUND

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................       $55,894,000
Budget request, fiscal year 2018......................        53,741,000
Recommended in the bill...............................        53,741,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -2,153,000
    Budget request, fiscal year 2018..................             - - -
 

    The Federal Citizen Services Fund (the Fund) appropriation 
provides for the salaries and expenses of GSA's Office of 
Citizen Services and Innovative Technologies (OCSIT). The Fund 
enables citizen access and engagement with government through 
an array of operational programs and direct citizen facing 
services. The Fund provides electronic or other methods of 
access to and understanding of Federal information, benefits, 
and services to citizens, businesses, local governments, and 
the media.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $53,741,000 
for the Federal Citizen Services Fund. The Committee expects 
the funds provided for these activities, combined with 
efficiency gains and resource prioritization will result in 
increased delivery of information to the public and in the ease 
of transaction with the government.
    All the income collected by the Office of Citizen Services 
and Innovative Technologies (OCSIT) in the form of 
reimbursements from Federal agencies, user fees for 
publications ordered by the public, payments from private 
entities for services rendered, and gifts from the public is 
available to the OCSIT without regard to fiscal year 
limitations, but is subject to an annual limitation of 
$100,000,000. Any revenues accruing in excess of this amount 
shall remain in the fund and are not available for expenditure 
except as authorized in Appropriation Acts.

                ASSET PROCEEDS AND SPACE MANAGEMENT FUND

 
 
 
Appropriation, fiscal year 2017.......................             - - -
Budget request, fiscal year 2018......................       $40,000,000
Recommended in the bill...............................        10,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................       +10,000,000
    Budget request, fiscal year 2018..................       -30,000,000
 

    This account provides appropriations for the purposes of 
carrying out actions pursuant to the recommendations of the 
Public Buildings Reform Board focusing on civilian real 
property.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $10,000,000 
for the Asset Proceeds and Space Management Fund.

                 ENVIRONMENTAL REVIEW IMPROVEMENT FUND

 
 
 
Appropriation, fiscal year 2017.......................             - - -
Budget request, fiscal year 2018......................       $10,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        +1,000,000
    Budget request, fiscal year 2018..................        -9,000,000
 

    This account provides appropriations for the authorized 
activities of the Environmental Review Improvement Fund and the 
Federal Permitting Improvement Steering Council. The Council 
will lead ongoing government-wide efforts to modernize the 
Federal permitting and review process for major infrastructure 
projects and work with Federal agency partners to implement and 
oversee adherence to the statutory requirements set forth in 
the Federal Assets Sale and Transfer Act of 2016.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000 for 
the Environmental Review Improvement Fund.

       Administrative Provisions--General Services Administration

              (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

    Section 510. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 511. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations with advance approval of the Committees on 
Appropriations of the House and Senate.
    Section 512. The Committee continues the provision 
requiring funds proposed for developing courthouse construction 
requests to meet appropriate standards and the priorities of 
the Judicial Conference.
    Section 513. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the assessed rent.
    Section 514. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the Federal Government.
    Section 515. The Committee continues the provision 
requiring the Administrator to ensure that the delineated area 
of procurement for all lease agreements is identical to the 
delineated area included in the prospectus unless prior notice 
is given to the committees of jurisdiction.
    Section 516. The Committee continues the provision 
requiring a spend plan for certain accounts and programs.
    Section 517. The Committee includes a new provision 
establishing the Asset Proceeds Space Management Fund as a fund 
separate from the Federal Buildings Fund.
    Section 518. The Committee includes a new provision 
rescinding prior year unobligated balances from the FBI 
Headquarters Consolidation project funded in Public Law 115-31.
    Section 519. The Committee includes a new provision 
requiring GSA to post certain draft environmental impact 
assessments on the GSA website.

                 Harry S Truman Scholarship Foundation

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................        $1,000,000
Budget request, fiscal year 2018......................             - - -
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................        +1,000,000
 

    The Harry S Truman Scholarship Foundation is an independent 
agency established by Congress in 1975 (Public Law 93-642) to 
encourage exceptional college students to pursue careers in 
public service through the Truman Scholarship program. The 
Truman Scholarship is a merit-based award available to college 
juniors who plan to pursue careers in Government or elsewhere 
in public service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000 for 
the Harry S Truman Scholarship Foundation.

                     Merit Systems Protection Board

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................       $47,131,000
Budget request, fiscal year 2018......................        46,835,000
Recommended in the bill...............................        46,835,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -296,000
    Budget request, fiscal year 2018..................             - - -
 

    The Merit Systems Protection Board (MSPB) is an 
independent, quasi-judicial agency established to protect the 
civil service merit system. The MSPB adjudicates appeals 
primarily involving personnel actions, certain Federal employee 
complaints, and retirement benefits issues. The MSPB reports to 
the President whether merit systems are sufficiently free of 
prohibited employment practices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $44,490,000 
for the MSPB. The recommendation includes a transfer of 
$2,345,000 from the Civil Service Retirement and Disability 
Fund.

              National Archives and Records Administration

                           OPERATING EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $380,634,000
Budget request, fiscal year 2018......................       364,308,000
Recommended in the bill...............................       364,308,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -16,326,000
    Budget request, fiscal year 2018..................             - - -
 

    This appropriation provides NARA with funds for its basic 
operations for management of the Federal Government's archives 
and records, services to the public, operation of Presidential 
libraries, review for declassification of classified security 
information, and includes funding for the Electronic Records 
Archives which preserves, stores, and manages digital Federal 
records for archival purposes, ensuring long-term access.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $364,308,000 
for the Operating Expenses of NARA.
    Records Management.--The Committee encourages NARA to 
leverage private sector records management capabilities, where 
private vendors have invested their own capital to develop 
facilities that are compliant with NARA's stringent building 
standards. The Committee encourages NARA to identify NARA 
records management storage facilities that can be cost 
effectively managed by private records management companies, 
especially those housing temporary Federal records.

                      OFFICE OF INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2017.......................        $4,801,000
Budget request, fiscal year 2018......................         4,241,000
Recommended in the bill...............................         4,241,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -560,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of Inspector General (OIG) provides audits and 
investigations and serves as an independent, internal advocate 
to promote economy, efficiency, and effectiveness within NARA.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,241,000 for 
the OIG for fiscal year 2018.

                        REPAIRS AND RESTORATION

 
 
 
Appropriation, fiscal year 2017.......................        $7,500,000
Budget request, fiscal year 2018......................         7,500,000
Recommended in the bill...............................         7,500,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    This appropriation provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide. It enables the National Archives to maintain its 
facilities in proper condition for visitors, researchers, and 
employees, and also maintain the structural integrity of the 
buildings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $7,500,000 for 
repairs and restoration.

 NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION GRANTS PROGRAM

 
 
 
Appropriation, fiscal year 2017.......................        $6,000,000
Budget request, fiscal year 2018......................             - - -
Recommended in the bill...............................         4,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -2,000,000
    Budget request, fiscal year 2018..................        +4,000,000
 

    The National Historical Publications and Records Commission 
(NHPRC) program provides for grants to preserve and publish 
records that document American history. Administered within the 
National Archives and Records Administration, the NHPRC helps 
State, local, and private institutions preserve non-Federal 
records, helps publish the papers of major figures in American 
history, and helps archivists and records managers improve 
their techniques, training, and ability to serve a range of 
information users.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,000,000 
NHPRC.

                  National Credit Union Administration

               COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

 
 
 
Appropriation, fiscal year 2017.......................        $2,000,000
Budget request, fiscal year 2018......................             - - -
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................        +2,000,000
 

    The Community Development Revolving Loan Fund Program 
(CDRLF) was established in 1979 to assist officially designated 
``low-income'' credit unions in providing basic financial 
services to low-income communities. Low-interest loans and 
deposits are made available to assist these credit unions. 
Loans or deposits are normally repaid in five years, although 
shorter repayment periods may be considered. Technical 
assistance grants are also available to low-income credit 
unions. Earnings generated from the CDRLF are available to fund 
technical assistance grants in addition to funds provided for 
specifically in appropriations acts. Grants are available for 
improving operations as well as addressing safety and soundness 
issues.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,000,000 for 
the National Credit Union Administration's CDRLF for technical 
assistance grants.

                      Office of Government Ethics

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $16,090,000
Budget request, fiscal year 2018......................        16,439,000
Recommended in the bill...............................        16,439,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +349,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of Government Ethics (OGE) established by the 
Ethics in Government Act of 1978, partners with other executive 
branch Departments and agencies to foster high ethical 
standards. The OGE issues and monitors rules regulations, and 
memoranda pertaining to the prevention and resolution of 
conflicts of interest, post-employment restrictions, standards 
of conduct, and financial disclosure for executive branch 
employees. The OGE is also responsible for creating and running 
an electronic financial disclosure system under the Stop 
Trading on Congressional Knowledge (STOCK) Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,439,000 
for the OGE.

                     Office of Personnel Management

                         SALARIES AND EXPENSES

                  (INCLUDING TRANSFER OF TRUST FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $259,000,000
Budget request, fiscal year 2018......................       279,755,000
Recommended in the bill...............................       260,755,000
Bill compared with:
    Appropriation, fiscal year 2017...................         1,755,000
    Budget request, fiscal year 2018..................       -19,000,000
 

    The Office of Personnel Management (OPM) is the Federal 
agency responsible for management of Federal human resources 
policy and oversight of the merit civil service system. OPM 
provides a government-wide policy framework for personnel 
matters, advises and assists agencies (often on a reimbursable 
basis), and ensures that agency operations are consistent with 
requirements of law, with emphasis on such issues as veterans 
preference. OPM oversees examining of applicants for 
employment; issues regulations and policies on hiring, 
classification and pay, training, investigations; and many 
other aspects of personnel management, and operates a 
reimbursable training program for the Federal Government's 
managers and executives. OPM is also responsible for 
administering the retirement, health benefits and life 
insurance programs affecting most Federal employees, retired 
Federal employees, and their survivors.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $129,341,000 
for the General Fund. The Committee also recommends 
$131,414,000 for administrative expenses, to be transferred 
from the appropriate trust funds.
    OPM has struggled for decades to process Federal retirees' 
pension claims quickly and accurately. As a result, tens of 
thousands of new retirees wait months to receive their complete 
annuities--some wait more than a year--and in the meantime they 
may be constrained by reduced interim pensions. The Committee 
expects OPM to continue to make retirement processing a 
priority and move to a fully-automated electronic filing 
system. The Committee believes that the backlog and delays in 
retirement processing are unacceptable and directs OPM to 
continue to provide the Committees on Appropriations of the 
House and Senate with monthly reports on its progress in 
addressing the backlog in claims.
    In the wake of the two massive data breaches, OPM must 
continue to take steps to secure the personally identifiable 
information and material relating to security clearances of all 
current, former, and prospective federal government employees. 
The Committee has provided funding which will need to be 
prioritized to meet the most critical needs outlined in the 
Administration's fiscal year 2018 request for cybersecurity. 
Additionally, the Committee expects OPM to continue with IT 
upgrades to secure its networks against future attacks.
    Security Clearance Investigations.--The Committee is 
concerned with the length of time it takes OPM to conduct 
initial security clearance investigations and reinvestigations 
when Federal employees' current level clearance expires. The 
Committee believes that security clearance delays are 
unacceptable as this reduces the ability of the Federal 
government to hire highly qualified employees to serve in 
important defense and national security positions. Therefore, 
the Committee expects OPM to continue to make security 
clearance processing a priority and to make necessary 
administrative or regulatory reforms to expedite 
investigations, reviews, and approvals.
    National Bureau of Investigations.--The Committee requests 
continued assessments on the newly created National Background 
Investigations Bureau (NBIB), and therefore directs OPM to 
submit to the Committees on Appropriations of the House and 
Senate bi-annual progress reports highlighting the NBIB 
implementation plan, timeline, and milestones; costs for each 
phase of implementation and anticipated outyear costs; 
governance, resource management, and accountability policies 
between OPM and Department of Defense; and a human capital plan 
as well as other significant issues related to standing-up the 
NBIB.
    Critical Functions.--The recent security breaches, focus on 
system upgrades, and the new National Background Investigations 
Bureau should not detract OPM from fulfilling its critical 
functions such as recruiting, retaining and developing a 
Federal workforce to serve the American people. OPM serves the 
Federal workforce by directing human resources and employee 
management services, and administering retirement benefits, 
managing healthcare and insurance programs, overseeing merit-
based and inclusive hiring into the civil service, and 
providing a secure employment process. The Committee reminds 
OPM's senior management to not lose sight of its mission as it 
responds to critical IT challenges.
    Recruitment.--The Committee is concerned with the length of 
time it often takes the Federal Government to hire qualified 
employees. Rigid rules along with long delays in the hiring and 
interview process discourage top candidates from applying for 
or accepting Federal positions. The Committee notes that a 
Presidential Memorandum--Improving the Federal Recruitment and 
Hiring Process--was issued on May 11, 2010, and the Office of 
Personnel Management (OPM) was instructed to increase the 
capacity of USAJOBS and develop a plan to improve the federal 
recruitment and hiring processes. While the Committee is 
supportive of some of the changes OPM has made to improve the 
user experience on USAJOBS, it remains concerned with the 
amount of time it takes the Federal Government to hire 
qualified employees. The committee is also concerned with the 
length and content of the questionnaire that USAJOBS candidates 
must complete, which can include up to 100 questions. This can 
discourage talented candidates from applying for or accepting 
Federal positions.
    The committee directs OPM to report to the Committees on 
Appropriations of the House and Senate no later than September 
30, 2018 on a plan to reduce barriers to Federal employment, 
reduce delays in the hiring process, and how it intends to 
improve the overall federal recruitment and hiring process.
    As part of OPM's mission to recruit and hire the most 
talented and diverse Federal workforce, the Committee 
encourages Federal agencies to increase recruitment efforts 
within the United States and the territories and at Hispanic 
Serving Institutions and Historically Black Colleges and 
Universities.
    The Committee is appreciative of GAO's reports on the 
Federal workforce, particularly report, OPM Needs to Improve 
Management and Oversight of Hiring Authorities (GAO-16-521) 
which reviewed current hiring authorities to assist Federal 
agencies onboard staff. The Committee encourages OPM to review 
GAO's recommendations to improve existing authorities, develop 
new ones, and provide educational outreach to Federal agencies 
to expand potential resources available when filling critical 
positions.
    CyberCorps.--A concern throughout the Federal Government is 
hiring qualified cyber security staff. The CyberCorps 
Scholarship for Service Program is a unique program designed to 
increase and strengthen the cadre of cyber professionals by 
providing students with academic scholarships in return for 
their service in Federal, state, or local government. A greater 
effort is needed to promote Federal cyber positions among 
recent CyberCorps graduates and to streamline the hiring 
process to attract these individuals to Federal service. OPM is 
directed to submit a report to the Committees on Appropriations 
of the House and Senate, House Permanent Select Committee on 
Intelligence, and the Senate Select Committee on Intelligence 
within 90 days of enactment of this Act outlining the steps OPM 
will take to improve the hiring process of CyberCorps 
graduates.
    Acquisition Planning.--The Committee is concerned with 
OPM's acquisition management efforts. Poor acquisition efforts 
have resulted in increased security clearance backlogs as well 
as unnecessary labor costs to correct procurement issues. The 
Committee directs the OPM to report back to the Committees on 
Appropriations of the House and Senate on measures it has taken 
to improve its acquisition planning, the expected results of 
this plan, and specifics, including timelines, on how this plan 
will impact the security clearance process.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

                  (INCLUDING TRANSFER OF TRUST FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................       $30,184,000
Budget request, fiscal year 2018......................        30,000,000
Recommended in the bill...............................        30,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -184,000
    Budget request, fiscal year 2018..................             - - -
 

    This appropriation provides for the Office of Inspector 
General's (OIG) agency-wide audit, investigative, evaluation, 
and inspection functions, which identify management and 
administrative deficiencies, fraud, waste and mismanagement. 
The OIG performs internal agency audits and insurance audits, 
and offers contract audit services. Internal audits review and 
evaluate all facets of agency operations, including financial 
statements. Evaluation and inspection services provide detailed 
technical evaluations of agency operations. Insurance audits 
review the operations of health and life insurance carriers, 
health care providers, and insurance subscribers. Contract 
auditors provide professional advice to agency contracting 
officials on accounting and financial matters regarding the 
negotiation, award, administration, repricing, and settlement 
of contracts. The investigative function provides for the 
detection and investigation of improper and illegal activities 
involving programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a general fund appropriation of 
$5,000,000 for the OIG. In addition, the recommendation 
provides $25,000,000 from appropriate trust funds.
    National Bureau of Investigations.--Of particular interest 
to the Committee is the implementation of OPM's National 
Background Investigations Bureau (NBIB). The Committee directs 
the Inspector General to submit a report to the Committees on 
Appropriations of the House and Senate not less than 12 months 
after enactment of this Act assessing the implementation of 
NBIB; staffing needs and any performance issues; current and 
future costs; governance and accountability structure among the 
NBIB, Department of Defense, OPM IG and Performance 
Accountability Council; and recommendations and weaknesses 
found.

                       Office of Special Counsel

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $24,750,000
Budget request, fiscal year 2018......................        26,535,000
Recommended in the bill...............................        24,750,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................        -1,785,000
 

    The Office of Special Counsel (OSC): (1) investigates 
Federal employee allegations of prohibited personnel practices 
(including reprisal for whistleblowing) and, when appropriate, 
prosecutes before the Merit Systems Protection Board; (2) 
provides a channel for whistleblowing by Federal employees; and 
(3) enforces the Hatch Act. The Office may transmit 
whistleblower allegations to the agency head concerned and 
require an agency investigation and a report to the Congress 
and the President when appropriate. Additionally, the Office 
enforces the civilian employment and reemployment rights of 
military service members under the Uniformed Services 
Employment and Re-employment Rights Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $24,750,000 
for the OSC.

                      Postal Regulatory Commission

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................       $16,200,000
Budget request, fiscal year 2018......................        14,440,000
Recommended in the bill...............................        15,200,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -1,000,000
    Budget request, fiscal year 2018..................          +760,000
 

    The Commission establishes and maintains the U.S. Postal 
Service's ratemaking systems, measures service and performance, 
ensures accountability, and has enforcement mechanisms, 
including the authority to issue subpoenas.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation, out of the 
Postal Fund, of $15,200,000 for the Postal Regulatory 
Commission (Commission).

              Privacy and Civil Liberties Oversight Board

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $10,100,000
Budget request, fiscal year 2018......................         8,000,000
Recommended in the bill...............................         8,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -2,100,000
    Budget request, fiscal year 2018..................             - - -
 

    The Privacy and Civil Liberties Oversight Board (the Board) 
is an independent agency within the Executive Branch whose 
purpose is to (1) analyze and review actions the Executive 
Branch takes to protect the nation from terrorism, ensuring 
that the need for such actions is balanced with the need to 
protect privacy and civil liberties; and (2) ensure that 
liberty concerns are appropriately considered in the 
development and implementation of laws, regulations, and 
policies related to efforts to protect the nation against 
terrorism. The Board consists of 4 part-time members and full-
time chairman.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $8,000,000 for the Board.

                     Public Buildings Reform Board

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................             - - -
Budget request, fiscal year 2018......................        $2,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        +5,000,000
    Budget request, fiscal year 2018..................        +3,000,000
 

    The Public Buildings Reform Board was created under the 
Federal Assets Sale and Transfer Act of 2016 to identify 
opportunities for the Government to significantly reduce its 
inventory of civilian real property and reduce cost to the 
Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $5,000,000 for the Board.

                   Securities and Exchange Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................    $1,605,000,000
Budget request, fiscal year 2018......................     1,846,507,000
Recommended in the bill...............................     1,896,507,000
Bill compared with:
    Appropriation, fiscal year 2017...................      +291,507,000
    Budget request, fiscal year 2018..................       +50,000,000
 

    The primary mission of the Securities and Exchange 
Commission (SEC) is to protect investors, maintain the 
integrity of the securities markets, and assure adequate 
information on the capital markets is made available to market 
participants and policy makers. This includes monitoring the 
rapid evolution of the capital markets, ensuring full 
disclosure of all appropriate financial information, regulating 
the Nation's securities markets, and preventing fraud and 
malpractice in the securities and financial markets.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,602,000,000 
for SEC salaries and expenses, of which $68,950,000 is for the 
Division of Economic and Risk Analysis. In addition, in lieu of 
funding from the Reserve Fund, the Committee provides 
$50,000,000 for long term information technology projects.
    The Committee also provides $244,507,000 for costs 
associated with relocation under a replacement lease for the 
Commission's headquarters facilities. The Committee expects the 
Commission to work closely with the General Services 
Administration (GSA) and to keep the Committee informed of 
progress on the replacement lease.
    Reserve Fund/Information Technology.--The Committee is 
supportive of the Commission's prioritization of robust and 
effective information technology (IT) systems within the 
Commission, and the Committee has been supportive of the use of 
these funds for long-term IT projects. However, this fund is 
not overseen by Congress and it is left to the discretion of 
the Commission as to its use. The Committee believes emergency 
reserve funds should be used for natural disaster emergencies 
and other crises, not discretionary priorities within a Federal 
agency. For fiscal year 2018, an increase of $50,000,000 for IT 
funding is provided through the Commission's overall 
appropriation. The Committee includes a limitation (section 
628) prohibiting funds from the Reserve Fund from being used by 
the Commission.
    BDC Modernization.--Congress created Business Development 
Companies (BDCs) in 1980 to facilitate capital formation in 
small and medium size companies. BDCs have recently invested in 
small and medium-size companies that provide vital services to 
the American public, including companies involved in disease 
treatment and prevention, education, information technology 
security, agriculture, and construction. Many BDCs specialize 
in financing acquisitions made by private equity firms. While 
there is a wide variation among BDCs in the size of their 
investments, the companies they invest in, and the industries 
in which they concentrate, they all share a common investment 
objective of making it easier for small and medium-sized 
companies to obtain access to capital. Funding from BDCs has 
become more important for small businesses as the stifling 
regulatory environment resulting from the regulatory 
overreaction to the financial crisis has restricted bank and 
other traditional financing options for these companies. The 
Committee instructs the SEC to modernize the business 
development company regulatory regime consistent with H.R. 
3868, the Small Business Credit Availability Act as reported by 
the Committee on Financial Services on November 3, 2015.
    BDC Acquired Fund Fee and Expense Rule.--The SEC issued its 
acquired fund fees and expenses (AFFE) rule in 2003 to deal 
with the ``Funds of Funds'' business models. As the law does 
not consider BDCs to be Funds of Funds, the SEC did not mention 
BDCs in the rule. Today the BDC industry has grown dramatically 
and the AFFE rule unnecessarily harms the industry. Retail 
investors benefit from having professional firms and indexes 
analyze BDC securities. However, retail investors are not being 
given adequate market protections because the AFFE rule 
prohibits BDC securities from inclusion in indexes, which 
results in fewer research analysts that cover the BDC industry. 
The Committee recommends that the SEC re-open the AFFE rule for 
public comment to consider the impacts on the BDC industry and 
its investors.
    Searchable Data.--The Committee encourages the SEC to 
continue its efforts to implement consistent and searchable 
open data standards for information filed and submitted by 
publicly-traded companies and financial firms. However, the 
Committee expects the Commission to take into account small 
reporting companies, their respective compliance costs, and 
whether volunteer exemptions are appropriate for such companies 
when creating these standards. The Committee continues to 
recommend that financial regulatory agencies across the U.S. 
Government take similar steps to update reporting standards 
commensurate with currently available technology.
    Joint Rulemakings.--The Committee directs the SEC to work 
cooperatively with the Commodity Futures Trading Commission 
(CFTC) on all joint rulemakings as required by the Dodd-Frank 
Wall Street Reform and Consumer Protection Act.

                        Selective Service System

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $22,900,000
Budget request, fiscal year 2018......................        22,900,000
Recommended in the bill...............................        22,900,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

    The Selective Service System was established by the 
Selective Service Act of 1948. The mission of the System is to 
be prepared to supply manpower to the Armed Forces adequate to 
ensure the security of the United States during a time of 
national emergency. Since 1973, the Armed Forces have relied on 
volunteers to fill military manpower requirements, but 
selective service registration was reinstituted in July 1980.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $22,900,000 
for the Selective Service System.

                     Small Business Administration

    The Small Business Administration (SBA) assists small 
businesses through programs including loans, grants, and 
contracting preferences. These programs maintain and strengthen 
an economy that depends on small businesses for 60 to 80 
percent of job creation. SBA programs also serve disadvantaged 
populations so that these small business enterprises may 
overcome economic and social obstacles to success.
    The recommendation provides a total of $847,798,000 for the 
SBA for fiscal year 2018. Detailed guidance for the SBA 
appropriations accounts is presented below.

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................      $269,500,000
Budget request, fiscal year 2018......................       265,000,000
Recommended in the bill...............................       265,000,000
Bill compared with:
    Appropriation, fiscal year 2017...................        -4,500,000
    Budget request, fiscal year 2018..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends $265,000,000 for the salaries and 
expenses of the SBA.
    SBIC Virtual Data Rooms.--The Committee believes the SBA 
has longstanding problems with maintaining and updating 
technology. The SBA continues to use inadequate technological 
systems to share files, reports, contracts, and other 
information that is communicated between SBA staff as well as 
between SBICs and the SBA. Virtual Data Rooms (VDR) are 
regularly used in the private sector and would make data more 
secure and increase operational efficiencies for both SBA and 
SBICs. VDRs could also streamline the collection of data by SBA 
staff, removing redundant processes at the SBA and saving time 
and resources. The Committee recommends that the SBA should 
give SBICs the option to select their own VDR provider which 
would serve as a communication vehicle for SBICs and the SBA in 
a single, secure location for all regulatory documents, 
submissions, requests, and communications. SBA has been 
supportive of the concept and should permit SBICs to use off 
the shelf virtual data room solutions that are commonly used in 
the industry.
    SBIC Program Licensing.--The Committee is aware of the 
often slow pace of licensing within the Small Business 
Investment Company (SBIC) program. SBA has a six month goal to 
approve licenses that are in the application process, and 
significant improvements were made in many cases last year, but 
not all. The Committee would like to see these improvements 
maintained, made normal and permanent with a meaningfully 
expedited and streamlined licensing process of known, repeat 
licensees, from those SBICs that have the same management teams 
and a proven track record in the SBIC Program. This fast track 
process for repeat licensees should be completed no longer than 
60 days after an application is submitted to the SBA, which 
will allow SBA to properly redirect their resources to first 
time funds. The SBA should create a meaningful green light 
letter process that clearly outlines for applicants the needed 
benchmarks for license approval without changing any of the 
terms on the applicant during licensing.

                  ENTREPRENEURIAL DEVELOPMENT PROGRAMS

 
 
 
Appropriation, fiscal year 2017.......................      $245,100,000
Budget request, fiscal year 2018......................       192,450,000
Recommended in the bill...............................       211,100,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -34,000,000
    Budget request, fiscal year 2018..................       +18,650,000
 

    The SBA's Entrepreneurial Development Programs support non-
credit business assistance to entrepreneurs. The appropriation 
includes funding for a network of resource partners located 
throughout the United States that provide training, counseling, 
and technical assistance to small business entrepreneurs.

                        COMMITTEE RECOMMENDATION

    The Committee recommendations for Entrepreneurial 
Development Programs, by program, are displayed in the 
following table:

                  ENTREPRENEURIAL DEVELOPMENT PROGRAMS

                        [In thousands of dollars]
 
 
 
7(j) Technical Assistance Program (Contracting                     2,800
 Assistance)..........................................
Entrepreneurship Education............................             2,000
HUBZone Program.......................................             3,000
Microloan Technical Assistance........................            31,000
National Women's Business Council.....................             1,500
Native American Outreach..............................             1,500
SCORE.................................................            10,000
Small Business Development Centers (SBDC).............           120,000
State Trade & Export Promotion (STEP).................            10,000
Veterans Outreach*....................................            12,300
Women's Business Centers (WBC)........................            17,000
                                                       -----------------
    Total EDP Programs................................           211,100
 
*Veterans Outreach includes funding for: Boots to Business, Veterans
  Business Outreach Centers (VBOC), Veteran Women Igniting the Spirit of
  Entrepreneurship (V-Wise), Entrepreneurship Bootcamp for Veterans with
  Disabilities (EBV), and Boots to Business reboot.

    The SBA shall not reduce these non-credit programs from the 
amounts specified above and the SBA shall not merge any of the 
non-credit programs without advance written approval from the 
Committee. The Committee strongly supports the development 
programs listed in the table above and will carefully monitor 
SBA support of these programs.
    Women's Business Centers.--The Committee notes the absence 
of WBCs serving many of the U.S. territories and other U.S. 
insular areas, and recommends that the SBA consider including 
these areas in WBC services.
  The Committee recognizes SBA's work in fostering regional 
innovation clusters which have provided business development 
services to high technology small businesses across the nation. 
These small businesses support a diverse group of sectors 
including manufacturing, energy and advanced defense 
technologies. The Committee encourages SBA to continue 
supporting these initiatives that promote the sustainment and 
creation of jobs in critical and emerging markets, and foster 
innovative entrepreneurship among high technology small 
businesses.

                      OFFICE OF INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2017.......................       $19,900,000
Budget request, fiscal year 2018......................        19,900,000
Recommended in the bill...............................        19,900,000
Bill compared with:
    Appropriation, fiscal year 2017...................             - - -
    Budget request, fiscal year 2018..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends $19,900,000 for the Office of 
Inspector General of the SBA.

                           OFFICE OF ADVOCACY

 
 
 
Appropriation, fiscal year 2017.......................        $9,220,000
Budget request, fiscal year 2018......................         9,120,000
Recommended in the bill...............................         9,120,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -100,000
    Budget request, fiscal year 2018..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends $9,120,000 for the Office of 
Advocacy of the SBA. The Committee supports the Office's 
mission to reduce regulatory burdens that Federal policies 
impose on small businesses and to maximize the benefits small 
businesses receive from the government.

                     BUSINESS LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $157,064,000
Budget request, fiscal year 2018......................       156,220,172
Recommended in the bill...............................       156,220,172
Bill compared with:
    Appropriation, fiscal year 2017...................          -843,828
    Budget request, fiscal year 2018..................             - - -
 

    The SBA Business Loans Program serves as an important 
source of capital for America's small businesses. The 
recommendation supports the 7(a) business loan program at a 
level of $29 billion, the 504 certified development company 
program at a level of $7.5 billion, Small Business Investment 
Company (SBIC) debentures, and the Secondary Market Guarantee 
Program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $156,220,172 for the 
Business Loans Program Account. Of the amount appropriated, 
$152,782,000 is for administrative expenses related to business 
loan programs. The amount provided for administrative expenses 
may be transferred to and merged with the appropriation for SBA 
salaries and expenses to cover the common overhead expenses 
associated with business loans. Funding is included to fully 
support the Microloan program.

                     DISASTER LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $185,977,000
Budget request, fiscal year 2018......................       186,458,000
Recommended in the bill...............................       186,458,000
Bill compared with:
    Appropriation, fiscal year 2017...................          +481,000
    Budget request, fiscal year 2018..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $186,458,000 for 
Disaster Loan Program administrative expenses which may be 
transferred and merged with Salaries and Expenses. The 
Committee provides $1,000,000 for the Office of Inspector 
General for audits and reviews of the disaster loans program.
    The Committee directs the SBA to continue providing updates 
on available resources for the disaster loans program on a 
monthly basis.
    Pre-mitigation activities within the Disaster Loan 
Program.--The Committee recognizes the benefit of limiting the 
financial exposure of the SBA and reducing the claims payments 
from the National Flood Insurance Program. Therefore the 
Committee urges the SBA to coordinate with Federal Emergency 
Management Agency (FEMA) to expand the SBA Disaster Loan 
Program to allow applicants in areas of high flood or natural 
disaster risk to utilize loans for pre-disaster mitigation 
projects that adhere to FEMA's standards of mitigation 
activities that significantly reduce a structure's long-term 
flood risk.

        ADMINISTRATIVE PROVISIONS--SMALL BUSINESS ADMINISTRATION

              (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

    Section 520. The Committee continues a provision for the 
SBA authorizing transfers of up to five percent of any SBA 
appropriation to other appropriations, provided that transfers 
do not increase an appropriation by more than 10 percent. The 
provision also requires that transfers be treated as a 
reprogramming of funds.
    Section 521. The Committee includes a provision rescinding 
prior year unobligated balances.
    Section 522. The Committee includes a provision amending 
requirements for the Microloan program.

                      United States Postal Service

                   PAYMENT TO THE POSTAL SERVICE FUND

 
 
 
Appropriation, fiscal year 2017.......................       $34,658,000
Budget request, fiscal year 2018......................        58,118,000
Recommended in the bill...............................        58,118,000
Bill compared with:
    Appropriation, fiscal year 2017...................       +23,460,000
    Budget request, fiscal year 2018..................             - - -
 

    The United States Postal Service (USPS) is funded almost 
entirely by Postal ratepayers rather than taxpayers. Funds 
provided to the Postal Service in the Payment to the Postal 
Service Fund include appropriations for revenue forgone, 
including providing free mail for the blind, and for overseas 
absentee voting.

                        COMMITTEE RECOMMENDATION

    The Committee recommends appropriations totaling 
$58,118,000 for Payment to the Postal Service Fund. The 
recommendation funds free mail for the blind and overseas 
voting and reconciliation of prior year cost adjustment.
    Rural Post Offices.--The Committee believes that the United 
States postal facility network is an asset of significant 
value. The closure of post offices in rural communities creates 
an economic burden for people in the United States that depend 
on the Postal Service for communication and package services. 
In addition to typical postal services, post offices are part 
of the identity of rural communities and provide a significant 
social value. The closure process of post offices does not 
adequately take into account community input.
    Notification to Congress.--Title 39 of the U.S. Code 
requires the Postal Service to provide the public with notice 
prior to closing or consolidating a post office. The Committee 
understands that it is the Postal Service's policy to inform 
Member of Congress' district and Washington, D.C. offices when 
the public receives notice. The Committee directs the Postal 
Service to keep Members of Congress informed of Postal Service 
activities impacting their constituents and expects the Postal 
Service to ensure that Members of Congress are appropriately 
informed simultaneously or prior to all public notices.
    Accessibility for Disabled Individuals.--The Committee 
notes that under the Architectural Barriers Act, the Postal 
Service is required to meet accessibility requirements for 
disabled individuals.
    Multinational Species Conservation Fund Semi-postal 
Stamp.--The Committee is pleased with the passage of the 
Multinational Species Conservation Fund Semi-postal Stamp 
Reauthorization Act, but is concerned that sales of the stamp 
will not improve without support from the Postal Service. The 
Committee directs the Postmaster General to submit a report, 
within 90 days of enactment of this Act, on the actions planned 
and taken by the Postal Service to increase sales of the stamp. 
P.L. 113-165 reauthorized the printing of the Multinational 
Species Conservation Fund semi-postal stamp for an additional 4 
years. Although the Postal Service reissued the stamp as 
directed by Congress, disappointingly little effort was made to 
make the public aware of the stamp's return and sales during 
the holiday season. The Committee directs the Postmaster 
General to report quarterly to the Committee on Appropriations 
of the House and Senate on how many stamps have been sold and 
how many remain in stock.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2017.......................      $253,600,000
Budget request, fiscal year 2018......................       234,650,000
Recommended in the bill...............................       234,650,000
Bill compared with:
    Appropriation, fiscal year 2017...................       -18,950,000
    Budget request, fiscal year 2018..................             - - -
 

    The Office of Inspector General (OIG) conducts audits, 
reviews and investigations, and keeps Congress informed on the 
efficiency and economy of United States Postal Service (USPS) 
programs and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $234,650,000 
for the OIG.

                        United States Tax Court

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2017.......................       $51,226,000
Budget request, fiscal year 2018......................        53,185,000
Recommended in the bill...............................        51,100,000
Bill compared with:
    Appropriation, fiscal year 2017...................          -126,000
    Budget request, fiscal year 2018..................        -2,085,000
 

    The U.S. Tax Court adjudicates controversies involving 
deficiencies in income, estate, and gift taxes. The Court also 
has jurisdiction to determine deficiencies in certain excise 
taxes, to issue declaratory judgments in the areas of 
qualifications of retirement plans and exemptions of charitable 
organizations, and to decide certain cases involving disclosure 
of tax information by the Commissioner of the Internal Revenue 
Service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $51,100,000 
for the U.S. Tax Court.

                 TITLE VI--GENERAL PROVISIONS--THIS ACT

                         (INCLUDING RESCISSION)

    Section 601. The Committee continues the provision 
prohibiting pay and other expenses for non-Federal parties in 
regulatory or adjudicatory proceedings funded in this Act.
    Section 602. The Committee continues the provision 
prohibiting obligations beyond the current fiscal year and 
prohibits transfers of funds unless expressly so provided 
herein.
    Section 603. The Committee continues the provision limiting 
procurement contracts for consulting service expenditures to 
contracts that are matters of public record and available for 
public inspection.
    Section 604. The Committee continues the provision 
prohibiting transfer of funds in this Act without express 
authority.
    Section 605. The Committee continues the provision 
prohibiting the use of funds to engage in activities that would 
prohibit the enforcement of section 307 of the 1930 Tariff Act.
    Section 606. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 607. The Committee continues the provision 
prohibiting the use of funds by any person or entity convicted 
of violating the Buy American Act.
    Section 608. The Committee continues the provision 
specifying reprogramming procedures. The provision requires 
that agencies or entities funded by the Act notify the 
Committee and obtain prior approval from the Committee for any 
reprogramming of funds that: (1) creates a new program; (2) 
eliminates a program, project, or activity; (3) increases funds 
or personnel for any program, project, or activity for which 
funds have been denied or restricted by the Congress; (4) 
proposes to use funds directed for a specific activity by 
either the House or Senate Committees on Appropriations for a 
different purpose; (5) augments existing programs, projects, or 
activities in excess of $5,000,000 or 10 percent, whichever is 
less; (6) reduces existing programs, projects, or activities by 
$5,000,000 or 10 percent, whichever is less; or (7) reorganizes 
offices, programs, or activities. The provision directs 
agencies funded by this Act to consult with the Committee prior 
to any significant reorganization. The provision also directs 
the agencies funded by this Act to submit operating plans for 
the Committee's review within 60 days of the bill's enactment.
    Section 609. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available through September 30, 2019, for certain purposes.
    Section 610. The Committee continues the provision 
prohibiting funding for the Executive Office of the President 
to request either a Federal Bureau of Investigation background 
investigation or Internal Revenue Service determination with 
respect to section 501(a) of the Internal Revenue Code of 1986, 
except with the express consent of the individual involved in 
an investigation or in extraordinary circumstances involving 
national security.
    Section 611. The Committee continues the provision 
regarding cost accounting standards for contracts under the 
Federal Employee Health Benefits Program.
    Section 612. The Committee continues the provision 
regarding non-foreign area cost-of-living allowances.
    Section 613. The Committee continues the provision 
prohibiting the expenditure of funds for abortion under the 
Federal Employees Health Benefits Program.
    Section 614. The Committee continues the provision making 
exceptions to the preceding provision where the life of the 
mother is in danger or the pregnancy is a result of an act of 
rape or incest.
    Section 615. The Committee continues the provision carried 
annually since 2004 waiving restrictions on the purchase of 
non-domestic articles, materials, and supplies in the case of 
acquisition of information technology by the Federal 
Government.
    Section 616. The Committee continues the provision 
prohibiting officers or employees of any regulatory agency or 
commission funded by this Act from accepting travel payments or 
reimbursements from a person or entity regulated by such agency 
or commission.
    Section 617. The Committee continues the provision 
permitting the Securities and Exchange Commission and 
Commodities Futures Trading Commission to fund a joint advisory 
committee to advise on emerging regulatory issues, 
notwithstanding section 708 of this Act.
    Section 618. The Committee continues the provision 
requiring certain agencies in this Act to consult with the 
General Services Administration before seeking new office space 
or making alterations to existing office space.
    Section 619. The Committee continues language providing for 
several appropriated mandatory accounts. These are accounts 
where authorizing language requires the payment of funds. The 
Congressional Budget Office estimates the cost for the 
following programs addressed in this provision: $450,000 for 
Compensation of the President including $50,000 for expenses, 
$167,000,000 for the Judicial Retirement Funds (Judicial 
Officers' Retirement Fund, Judicial Survivors' Annuities Fund, 
and the United States Court of Federal Claims Judges' 
Retirement Fund), $13,202,000,000 for the Government Payment 
for Annuitants, Employee Health Benefits, $48,000,000 for the 
Government Payment for Annuitants, Employee Life Insurance, and 
$8,365,000,000 for the Payment to the Civil Service Retirement 
and Disability Fund.
    Section 620. The Committee includes language prohibiting 
funds for the Federal Trade Commission to complete or publish 
the study, recommendations, or report prepared by the 
Interagency Working Group on Food Marketed to Children.
    Section 621. The Committee includes language to prevent 
conflicts of interest by prohibiting contractor security 
clearance related background investigators from undertaking 
final Federal reviews of their own work.
    Section 622. The Committee includes language requiring that 
the head of any executive branch agency ensure that the Chief 
Information Officer (CIO) has authority to participate in the 
budget planning process and approval of the information 
technology (IT) budget.
    Section 623. The Committee continues the provision 
prohibiting funds in contravention of the Federal Records Act.
    Section 624. The Committee includes language prohibiting 
agencies from requiring Internet Service Providers (ISPs) to 
disclose electronic communications information in a manner that 
violates the Fourth Amendment.
    Section 625. The Committee includes language prohibiting 
funds to be used to deny inspectors general access to records.
    Section 626. The Committee continues the provision 
prohibiting any funds made available in this Act from being 
used to establish a computer network unless such network blocks 
the viewing, downloading, and exchanging of pornography.
    Section 627. The Committee includes a provision to clarify 
the terms of the services offered to victims of the OPM 
security breaches.
    Section 628. The unobligated balance in the Securities and 
Exchange Commission Reserve Fund established by section 991 of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Public Law 111-203) is permanently rescinded.
    Section 629. The Committee includes language prohibiting 
funds for the Securities and Exchange Commission to require the 
disclosure of political contributions to tax exempt 
organizations, or dues paid to trade associations.
    Section 630. The Committee includes language that repeals 
the Federal Elections Commission's prior approval requirement 
for corporate member trade association PACs.
    Section 631. The Committee includes language prohibiting 
funds to pay for an abortion or the administrative expenses in 
connection with a multi-State qualified health plan offered 
under a contract under section 1334 of the Patient Protection 
and Affordable Care Act which provides any benefits or coverage 
for abortions, except for endangerment of the life of the 
mother, rape or incest.
    Section 632. The Committee includes a new provision 
prohibiting funds to require public electronic communication 
providers or remote computing services to disclose the contents 
of a wire or electronic communication unless required by a 
court warrant.
    Section 633. The Committee includes a new provision which 
defines a pyramid promotional scheme, and limits funds to 
enforcement actions under the definition.

             TITLE VII--GENERAL PROVISIONS--GOVERNMENT-WIDE

                Departments, Agencies, and Corporations

                     (INCLUDING TRANSFER OF FUNDS)

    Section 701. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 702. The Committee continues the provision 
establishing price limitations on vehicles to be purchased by 
the Federal Government with an exemption for the purchase of 
electric, plug-in hybrid electric, and hydrogen fuel cell 
vehicles.
    Section 703. The Committee continues the provision allowing 
funds made available to agencies for travel to also be used for 
quarters allowances and cost-of-living allowances.
    Section 704. The Committee continues the provision 
prohibiting the employment of noncitizens with certain 
exceptions.
    Section 705. The Committee continues the provision giving 
agencies the authority to pay General Services Administration 
bills for space renovation and other services.
    Section 706. The Committee continues, with modification, 
the provision allowing agencies to finance the costs of 
recycling and waste prevention programs with proceeds from the 
sale of materials recovered through such programs.
    Section 707. The Committee continues the provision 
providing that funds made available to corporations and 
agencies subject to 31 U.S.C. 91 may pay rent and other service 
costs in the District of Columbia.
    Section 708. The Committee continues the provision 
prohibiting interagency financing of groups absent prior 
statutory approval.
    Section 709. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 710. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 711. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 712. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 713. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 714. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 715. The Committee continues the provision 
prohibiting, other than for normal and recognized executive-
legislative relationships, propaganda, publicity and lobbying 
by executive agency personnel in support or defeat of 
legislative initiatives.
    Section 716. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 717. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing, telephone, or electronic mailing lists to any 
person or organization outside the government without the 
approval of the Committees on Appropriations.
    Section 718. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 719. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 720. The Committee continues the provision 
authorizing the use of funds to finance an appropriate share of 
the Federal Accounting Standards Advisory Board.
    Section 721. The Committee continues the provision 
authorizing the transfer of funds to the General Services 
Administration to finance an appropriate share of various 
government-wide boards and councils and for Federal Government 
Priority Goals under certain conditions.
    Section 722. The Committee continues the provision that 
permits breastfeeding in a Federal building or on Federal 
property if the woman and child are authorized to be there.
    Section 723. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council.
    Section 724. The Committee continues the provision 
requiring documents involving the distribution of Federal funds 
to indicate the agency providing the funds and the amount 
provided.
    Section 725. The Committee continues the provision 
prohibiting the use of funds to monitor personal access or use 
of Internet sites or to collect, review, or obtain any 
personally identifiable information relating to access to or 
use of an Internet site.
    Section 726. The Committee continues a provision requiring 
health plans participating in the Federal Employees Health 
Benefits Program to provide contraceptive coverage and provides 
exemptions to certain religious plans.
    Section 727. The Committee continues language supporting 
strict adherence to anti-doping activities.
    Section 728. The Committee continues a provision allowing 
funds for official travel to be used by departments and 
agencies, if consistent with OMB Circular A-126, to participate 
in the fractional aircraft ownership pilot program.
    Section 729. The Committee continues the provision that 
restricts the use of funds for Federal law enforcement training 
facilities.
    Section 730. The Committee continues the provision that 
prohibits Executive Branch agencies from creating prepackaged 
news stories that are broadcast or distributed in the United 
States unless the story includes a clear notification within 
the text or audio of such news story that the prepackaged news 
story was prepared or funded by that executive branch agency. 
This provision confirms the opinion of the Government 
Accountability Office dated February 17, 2005 (B-304272).
    Section 731. The Committee continues the provision 
prohibiting use of funds in contravention of section 552a of 
title 5, United States Code (the Privacy Act) and regulations 
implementing that section.
    Section 732. The Committee continues the provision 
prohibiting funds from being used for any Federal Government 
contract with any foreign incorporated entity which is treated 
as an inverted domestic corporation.
    Section 733. The Committee continues the provision 
requiring agencies to pay a fee to the Office of Personnel 
Management for processing retirement of employees who separate 
under Voluntary Early Retirement Authority or who receive 
Voluntary Separation Incentive payments.
    Section 734. The Committee includes language prohibiting 
funds to require any entity submitting an offer for a Federal 
contract or participating in an acquisition to disclose 
political contributions.
    Section 735. The Committee continues the provision 
prohibiting funds for the painting of a portrait of an employee 
of the Federal Government, including the President, the Vice 
President, a Member of Congress, the head of an executive 
branch agency, or the head of an office of the legislative 
branch.
    Section 736. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 737. The Committee continues a provision, with 
modification, requiring agencies to submit reports to 
Inspectors General concerning expenditures for agency 
conferences.
    Section 738. The Committee continues a provision 
prohibiting funds to be used to increase, eliminate, or reduce 
funding for a program or project unless such change is made 
pursuant to reprogramming or transfer provisions.
    Section 739. The Committee continues a provision 
prohibiting agencies from using funds to implement regulations 
changing the competitive areas under reductions-in-force for 
Federal employees.
    Section 740. The Committee continues the provision ensuring 
contractors are not prevented from reporting waste, fraud, or 
abuse by signing confidentiality agreements that would prohibit 
such disclosure.
    Section 741. The Committee continues the provision 
prohibiting the expenditure of funds for the implementation of 
certain nondisclosure agreements unless certain provisions are 
included in the agreements.
    Section 742. The Committee continues the provision 
prohibiting funds to any corporation with certain unpaid 
Federal tax liabilities unless an agency has considered 
suspension or debarment of the corporation and made a 
determination that further action is not necessary to protect 
the interests of the Government.
    Section 743. The Committee continues the provision 
prohibiting funds to any corporation that was convicted of a 
felony criminal violation within the preceding 24 months unless 
an agency has considered suspension or debarment of the 
corporation and made a determination that further action is not 
necessary to protect the interests of the Government.
    Section 744. The Committee continues a provision requiring 
the Bureau of Consumer Financial Protection to notify the 
Committees on Appropriations of the House and Senate, the 
Committee on Financial Services of the House, and the Committee 
on Banking, Housing, and Urban Affairs of the Senate of 
requests for a transfer of funds from the Board of Governors of 
the Federal Reserve System as well as post any such 
notifications on the Bureau's website.
    Section 745. The Committee modifies a provision on the 
conditions for implementing Executive Order 13690.
    Section 746. The Committee includes a provision which 
allows those authorized to be employed in the United States 
pursuant to the Deferred Action for Childhood Arrivals program 
to be eligible for Federal government employment.
    Section 747. The Committee continues the provision 
concerning the non-application of these general provisions to 
title IV and to title VIII.

          TITLE VIII--GENERAL PROVISIONS--DISTRICT OF COLUMBIA

                     (INCLUDING TRANSFERS OF FUNDS)

    Section 801. The Committee continues language that 
appropriates funds to refund overpayments of taxes collected 
and to pay settlements and judgments against the District of 
Columbia government.
    Section 802. The Committee continues language prohibiting 
the use of Federal funds for publicity or propaganda purposes.
    Section 803. The Committee continues language establishing 
reprogramming procedures for Federal and local funds.
    Section 804. The Committee continues language prohibiting 
the use of Federal funds to provide salaries or other costs 
associated with the offices of United States Senator or 
Representative.
    Section 805. The Committee continues language limiting the 
use of official vehicles to official duties.
    Section 806. The Committee continues language prohibiting 
the use of Federal funds for any petition drive or civil action 
which seeks to require Congress to provide for voting 
representation in Congress for the District of Columbia.
    Section 807. The Committee includes language prohibiting 
the use of Federal funds for needle exchange programs.
    Section 808. The Committee continues language providing for 
a ``conscience clause'' on legislation that pertains to 
contraceptive coverage by health insurance plans.
    Section 809. The Committee continues language prohibiting 
the use of Federal funds to legalize or reduce penalties 
associated with the possession, use, or distribution of any 
schedule I substance under the Controlled Substances Act or any 
tetrahydrocannabinols derivative.
    Language is also included prohibiting local and Federal 
funds to legalize or reduce penalties associated with the 
possession, use, or distribution of any schedule I substance 
under the Controlled Substance Act or any tetrahydrocannabinols 
derivative for recreational use.
    Section 810. The Committee continues the provision that 
prohibits the use of funds for any abortion except in the cases 
of rape or incest or if necessary to save the life of the 
mother.
    Section 811. The Committee continues language requiring the 
Chief Financial Officer (CFO) to submit a revised operating 
budget for all agencies in the D.C. government, no later than 
30 calendar days after the enactment of this Act that realigns 
budgeted data with anticipated actual expenditures.
    Section 812. The Committee continues language requiring the 
CFO to submit a revised operating budget for D.C. Public 
Schools, no later than 30 calendar days after the enactment of 
this Act that realigns school budgets to actual school 
enrollment.
    Section 813. The Committee continues language allowing the 
transfer of local funds and capital and enterprise funds.
    Section 814. The Committee continues language prohibiting 
the obligation of Federal funds beyond the current fiscal year 
and transfers of funds unless expressly provided herein.
    Section 815. The Committee continues language providing 
that not to exceed 50 percent of unobligated balances from 
Federal appropriations for salaries and expenses may remain 
available for certain purposes. This provision will apply to 
the District of Columbia Courts, the Court Services and 
Offender Supervision Agency, and the District of Columbia 
Public Defender Service.
    Section 816. The Committee continues language appropriating 
local funds during fiscal year 2019 if there is an absence of a 
continuing resolution or regular appropriation for the District 
of Columbia. Funds are provided under the same authorities and 
conditions and in the same manner and extent as provided for in 
fiscal year 2018.
    Section 817. The Committee includes a provision to repeal 
the Local Budget Autonomy Amendment Act of 2012.
    Section 818. The Committee includes a new provision 
prohibiting funds to enact any act, resolution, rule, 
regulation, guidance, or other law to permit any person to 
carry out any activity, or to reduce the penalties imposed with 
respect to any activity to which subsection (a) of section 3 of 
the Assisted Suicide Funding Restriction Act of 1997 applies, 
and repeals the District of Columbia Death With Dignity Act of 
2016.
    Section 819. The Committee continues language limiting 
references to ``this Act'' as referring to only this title and 
title IV.

                        TITLE IX--OTHER MATTERS

    The bill includes provisions from H.R. 10, the Financial 
CHOICE Act, as passed by the House of Representatives on June 
8, 2017.

               TITLE X--FINANCIAL INSTITUTION BANKRUPTCY

    The bill includes H.R. 1667, the Financial Institution 
Bankruptcy Act of 2017, which was passed by the House of 
Representatives on April 5, 2017.

                TITLE XI--ADDITIONAL GENERAL PROVISIONS

                       SPENDING REDUCTION ACCOUNT

    Section 1101. The Committee includes a provision 
establishing a ``Spending Reduction Account'' in the bill.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives:

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                          Rescission of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table is submitted 
describing the rescissions recommended in the accompanying 
bill:

 
 
 
Treasury Forfeiture Fund..............................      $876,000,000
General Services Administration.......................      $200,000,000
Securities and Exchange Commission....................       $75,000,000
Small Business Administration.........................        $2,600,000
 

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill:

               UNDER TITLE I--DEPARTMENT OF THE TREASURY

    Section 101 allows the transfer of five percent of any 
appropriation made available to the Internal Revenue Service 
(IRS) to any other IRS appropriation, subject to prior 
congressional approval.
    Section 115 authorizes the transfers of funds to IRS to 
improve customer service, fraud prevention, and cybersecurity.
    Section 118 authorizes transfers, up to two percent, 
between Departmental Offices, Office of Inspector General, 
Special Inspector General for Troubled Asset Relief Program, 
Financial Crimes Enforcement Network, Bureau of the Fiscal 
Service, Alcohol and Tobacco Tax and Trade Bureau, and 
Community Development Financial Institutions Fund Program Fund 
Account appropriations under certain circumstances.
    Section 119 authorizes transfers, up to two percent, 
between the IRS and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 121 authorizes the transfer of funds from the 
``Bureau of the Fiscal Service'' to the ``Debt Collection 
Fund'' as necessary to cover the cost of debt collection.

           UNDER TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT

    Language is included under Presidential Transition 
Administrative Support, which allows for the transfer of funds 
within the Executive Office of the President.
    Language is included under Federal Drug Control Programs, 
``High Intensity Drug Trafficking Areas Program'', which allows 
for the transfer of funds to Federal departments or agencies 
and State and local entities.
    Language is included under ``Other Federal Drug Control 
Programs'', allowing the transfers of funds to other Federal 
departments and agencies to carry out activities.
    Language is included under ``Information Technology 
Oversight and Reform'', allowing the transfer of funds to other 
agencies to carry out projects.
    Language is included under the Official Residence of the 
Vice President, ``Operating Expenses'', allowing the transfer 
of funds to other Federal departments or agencies.
    Section 201 permits the Executive Office of the President 
to transfer up to 10 percent of any appropriation, subject to 
approval of the Committee.

                     UNDER TITLE III--THE JUDICIARY

    Language is included under ``Courts of Appeals, District 
Courts, and Other Judicial Services, Court Security'', allowing 
funds to be transferred to the United States Marshals Service 
for courthouse security.
    Section 302 permits the Judiciary to transfer up to five 
percent of any appropriation with certain limitations.

                  UNDER TITLE V--INDEPENDENT AGENCIES

    Under Title V, Independent Agencies, a number of transfers 
are allowed.
    (1) Under the Election Assistance Commission, amounts may 
be transferred to the National Institute of Standards and 
Technology.
    (2) Under the General Services Administration, amounts may 
be transferred within the Federal Buildings Fund, under certain 
circumstances, after approval of the Committee on 
Appropriations.
    (3) Under the General Services Administration, ``Federal 
Citizens Services Fund'', transfers are allowed from the 
Federal Citizens Services Fund to Federal agencies.
    (4) Under the General Services Administration, ``Federal 
Citizens Services Fund'', transfers are allowed from 
unobligated funding provided to the ``Electronic Government 
Fund'' to the Federal Citizens Services Fund.
    (5) Section 511 permits the General Services Administration 
to transfer funds in the Federal Buildings Fund after approval 
of the Committee on Appropriations.
    (6) Under Merit Systems Protection Board, an amount is 
transferred from the Civil Service Retirement and Disability 
Fund.
    (7) Under Office of Personnel Management, amounts from 
certain trust funds are transferred to the Salaries and 
Expenses and Office of Inspector General accounts for 
administrative expenses;
    (8) Under the Postal Regulatory Commission, amounts are 
transferred from the Postal Service Fund;
    (9) Under Small Business Administration, Business Loans 
Program Account, amounts may be transferred to and merged with 
Salaries and Expenses.
    (10) Under Small Business Administration, Disaster Loans 
Program Account, amounts may be transferred to and merged with 
the Office of Inspector General, and Salaries and Expenses.
    (11) Section 520 permits the Small Business Administration 
to transfer funds between appropriations of the Small Business 
Administration.
    (12) Under United States Postal Service, Office of 
Inspector General, amounts are transferred from the Postal 
Service Fund.

                    UNDER TITLE VII--GOVERNMENT-WIDE

    Section 721 authorizes departments and agencies to transfer 
funds to the General Services Administration to support certain 
financial, information technology, procurement, and other 
management initiatives.

       UNDER TITLE VIII--GENERAL PROVISIONS, DISTRICT OF COLUMBIA

    Section 803 authorizes the District of Columbia to transfer 
local funds and section 813 allows transfer of funds between 
operations and capital accounts.

   Disclosure of Earmarks and Congressionally Directed Spending Items

    Neither the bill nor the report contains any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions proposed in the 
accompanying bill which may be considered, under certain 
circumstances, to change the application of existing law, 
either directly or indirectly. The bill provides that 
appropriations shall remain available for more than one year 
for a number of programs for which the basic authorizing 
legislation does not explicitly authorize such extended 
availability. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law, or 
exempting agencies from certain provisions of law, but which 
has been carried in appropriations acts for many years.
    The bill includes several limitations on official 
entertainment, reception and representation expenses. Similar 
provisions have appeared in many previous appropriations Acts. 
The bill includes a number of limitations on the purchase of 
automobiles or office furnishings that also have appeared in 
many previous appropriations Acts. Language is included in 
several instances permitting certain funds to be credited to 
the appropriations recommended. Language is also included in 
several instances permitting funding for services authorized by 
5 U.S.C. 3109 and for the hire of passenger motor vehicles.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions proposed in the 
accompanying bill which may be considered, under certain 
circumstances, to change the application of existing law, 
either directly or indirectly. The bill provides that 
appropriations shall remain available for more than one year 
for a number of programs for which the basic authorizing 
legislation does not explicitly authorize such extended 
availability. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law, or 
exempting agencies from certain provisions of law, but which 
has been carried in appropriations acts for many years.
    The bill includes several limitations on official 
entertainment, reception and representation expenses. Similar 
provisions have appeared in many previous appropriations Acts. 
The bill includes a number of limitations on the purchase of 
automobiles or office furnishings that also have appeared in 
many previous appropriations Acts. Language is included in 
several instances permitting certain funds to be credited to 
the appropriations recommended. Language is also included in 
several instances permitting funding for services authorized by 
5 U.S.C. 3109 and for the hire of passenger motor vehicles.

                  Title I--Department of the Treasury

    Language is included for ``Departmental Offices, Salaries 
and Expenses'' that provides funds for operation and 
maintenance of the Treasury Building Annex; hire of passenger 
motor vehicles; maintenance, repairs, and improvements of, and 
purchase of commercial insurance policies for real properties 
leased or owned overseas.
    Language is also included designating funds for official 
reception and representation expenses; unforeseen emergencies 
of a confidential nature; and extending the period of 
availability for certain funds.
    Language is included for the ``Office of Terrorism and 
Financial Intelligence, Salaries and Expenses'' that provides 
funds combating threats to national security.
    Language is included for ``Cybersecurity Enhancement 
Account'' that provides funds for enhanced cybersecurity for 
systems operated by the Department of the Treasury.
    Language is included for the Office of Inspector General, 
``Salaries and Expenses'', that provides funds to carry out the 
provisions of the Inspector General Act of 1978, including 
official reception and representation expenses, the hire of 
vehicles, and provides funds for unforeseen emergencies of a 
confidential nature.
    Language is included for the Treasury Inspector General for 
Tax Administration, Salaries and Expenses that provides funds 
to carry out the provisions of the Inspector General Act of 
1978, including consulting services, official reception and 
representation expenses, the purchase and hire of motor 
vehicles, unforeseen emergencies of a confidential nature, and 
specifies the period of availability for certain funds.
    Language is included for the Special Inspector General for 
the Troubled Asset Relief Program, ``Salaries and Expenses'', 
that provides funds for the necessary expenses of the SIGTARP 
in carrying out the provisions of the Emergency Economic 
Stabilization Act of 2008 (P.L. 110-343).
    Language is included for ``Financial Crimes Enforcement 
Network, Salaries and Expenses'' that provides funds for the 
hire of motor vehicles; travel and training of non-federal and 
foreign government personnel attending meetings involving 
domestic or foreign financial law enforcement, intelligence, 
and regulation; official reception and representation expenses; 
and assistance to Federal law enforcement agencies with or 
without reimbursement. Language is also included that extends 
the availability of certain amounts.
    Language is included under the heading ``Treasury 
Forfeiture Fund'' rescinding certain funds and returning funds 
to the General Fund.
    Language is included for the Bureau of the Fiscal Service, 
``Salaries and Expenses'', that provides a certain amount for 
official reception and representation expenses, and extends the 
availability for systems modernization funds. Language is also 
included specifying an amount to be derived from the Oil Spill 
Liability Trust Fund.
    Language is included for the Alcohol and Tobacco Tax and 
Trade Bureau, ``Salaries and Expenses'', that provides funds 
for the hire of passenger motor vehicles and laboratory 
assistance to State and local agencies with or without 
reimbursement. Language is also included that specifies the 
amounts for official reception and representation expenses and 
cooperative research and development.
    Language is included for the U.S. Mint, ``United States 
Mint Public Enterprise Fund'', which identifies the source of 
funding for the operations and activities of the U.S. Mint and 
specifies the level of funding for circulating coinage and 
protective service capital investments.
    Language is included for the Community Development 
Financial Institutions Fund Program Account that provides 
specific amounts for: financial and technical assistance; 
Native American initiatives; administrative expenses for the 
program and cost of direct loans; New Markets Tax Credit 
Program; and disabled community assistance. Language is 
included clarifying the cost of direct loans and the cost of 
modifying direct loans, and specifying the limitation on gross 
obligations for the principal amount of direct loans.
    Language is included under Internal Revenue Service, 
Taxpayer Services, that provides funds for pre-filing 
assistance and education, filing and account services, and 
taxpayer advocacy services, and dedicating funding for the Tax 
Counseling for the Elderly Program, low-income taxpayer clinic 
grants, and Community Volunteer Income Tax Assistance grants.
    Language is included for Internal Revenue Service, 
Enforcement, that provides funds to determine and collect owed 
taxes, provide legal and litigation support, conduct criminal 
investigations, enforce criminal statutes, purchase and hire of 
vehicles; and designates funding for the Interagency Crime and 
Drug Enforcement program. Language is included specifying the 
period of availability for certain funds.
    Language is included for the Internal Revenue Service, 
Operations Support, that provides funds for operating and 
supporting taxpayer services and tax law enforcement programs; 
rent; facilities services; printing; postage; physical 
security; headquarters and other IRS-wide administration 
activities; research and statistics of income; 
telecommunications; information technology development, 
enhancement, operations, maintenance, and security; hire of 
passenger motor vehicles; and official reception and 
representation expenses. Language is included specifying the 
period of availability for certain funds and requiring reports 
on information technology.
    Language is included for Internal Revenue Service, Business 
Systems Modernization that provides for the business systems 
modernization program, including capital asset acquisition of 
information technology, including management and related 
contractual costs and IRS labor costs of said acquisitions, 
contractual costs associated with operations, an extended 
availability of the funds and requires quarterly reports.
    In addition, the bill provides the following administrative 
provisions:
    Section 101. Language is included that allows for the 
transfer of five percent of any appropriation made available to 
the IRS to any other IRS appropriation, upon the advance 
approval of the Committees on Appropriations.
    Section 102. Language is included that requires the IRS to 
maintain a training program in taxpayers' rights, dealing 
courteously with taxpayers, cross-cultural relations, and the 
impartial application of tax law.
    Section 103. Language is included that requires the IRS to 
institute and enforce policies and procedures that will 
safeguard the confidentiality of taxpayer information and 
protect taxpayers against identity theft.
    Section 104. Language is included that makes funds 
available for improved facilities and increased staffing to 
provide efficient and effective 1-800 number help line service 
for taxpayers.
    Section 105. Language is included requiring videos produced 
by the IRS to be approved in advance by the Service-Wide Video 
Editorial Board.
    Section 106. Language is included to require the IRS to 
issue notices to employers of any address change request and to 
give special consideration to offers in compromise for 
taxpayers who have been victims of payroll tax preparer fraud.
    Section 107. Language is included to prohibit the IRS from 
targeting U.S. citizens for exercising their First Amendment 
rights.
    Section 108. Language is included to prohibit the use of 
funds by the IRS to target groups based on their ideological 
beliefs.
    Section 109. Language is included to prohibit the use of 
funds by the IRS on conferences that do not adhere to 
recommendations made by the Treasury Inspector General for Tax 
Administration.
    Section 110. Language is included prohibiting funds for IRS 
employee awards or hiring programs that do not consider 
employee conduct and Federal tax compliance.
    Section 111. Language included to prohibit the use of funds 
in contravention of section 6103 of the Internal Revenue Code 
of 1986 (relating to confidentiality and disclosure of returns 
and return information).
    Section 112. Language is included prohibiting funds from 
being used to implement the individual mandate of the 
Affordable Care Act.
    Section 113. Language is included to prohibit funds for 
pre-populated returns.
    Section 114. Language is included to prohibit funds to 
enforce new guidance on conservation easements.
    Section 115. Language is included to prohibit funds to 
finalize, implement or enforce amendments to proposed 
regulations related to estate, gift, and transfer taxes.
    Section 116. Language is included to prohibit funds for the 
IRS to make a determination that a church is not exempt from 
taxation unless specific criteria is met.
    Section 117. Language is included that authorizes the 
Department to purchase uniforms, insurance for motor vehicles 
that are overseas, and motor vehicles that are overseas without 
regard to the general purchase price limitations; to enter into 
contracts with the State Department for health and medical 
services for Treasury employees that are overseas; and to hire 
experts or consultants.
    Section 118. Language is included that authorizes 
transfers, up to two percent, between ``Departmental Offices--
Salaries and Expenses'', ``Office of Inspector General'', 
``Special Inspector General for the Troubled Asset Relief 
Program'', ``Financial Crimes Enforcement Network'', ``Bureau 
of the Fiscal Service'', and ``Alcohol and Tobacco Tax and 
Trade Bureau'', appropriations under certain circumstances.
    Section 119. Language is included that authorizes 
transfers, up to two percent, between the Internal Revenue 
Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 120. Language is included prohibiting the 
Department of the Treasury from undertaking a redesign of the 
one dollar Federal Reserve note.
    Section 121. Language is included providing for transfers 
from and reimbursements to ``Bureau of the Fiscal Service, 
Salaries and Expenses'' for the purposes of debt collection.
    Section 122. Language is included requiring congressional 
approval for the construction and operation of a museum by the 
United States Mint.
    Section 123. Language is included prohibiting funds in this 
or any other Act from being used to merge the U.S. Mint and the 
Bureau of Engraving and Printing without the approval of the 
House and Senate committees of jurisdiction.
    Section 124. Language is included deeming that funds for 
the Department of the Treasury's intelligence-related 
activities are specifically authorized in fiscal year 2018 
until enactment of the Intelligence Authorization Act for 
fiscal year 2018.
    Section 125. Language is included permitting the Bureau of 
Engraving and Printing to use $5,000 from the Industrial 
Revolving Fund for reception and representation expenses.
    Section 126. Language is included requiring the Department 
of the Treasury to submit a capital investment plan.
    Section 127. Language is included requiring a quarterly 
report from both the Office of Financial Research and Office of 
Financial Stability Oversight.
    Section 128. Language is included requiring the Department 
of the Treasury to submit a report on its Franchise Fund.
    Section 129. Language is included prohibiting the 
Department of the Treasury from finalizing any regulation 
related to the standards used to determine the tax-exempt 
status of a 501(c)(4) organization.
    Section 130. Language is included prohibiting funds to 
approve, license, facilitate, authorize, or otherwise allow the 
importation of property confiscated by the Cuban Government.
    Section 131. Language is included prohibiting funds to 
approve or otherwise allow the licensing of a mark, trade name, 
or commercial name that is substantially similar to one that 
was used in connection with a business or assets that were 
confiscated unless expressly consented.
    Section 132. Language is included requiring the Special 
Inspector General for the Troubled Asset Relief Program to 
prioritize performance audits or investigations of programs 
funded under the Emergency Economic Stabilization Act of 2008.
    Section 133. Language is included prohibit the Department 
from enforcing guidance for U.S. positions on multilateral 
development banks engaging with developing countries on coal-
fired power generation.

              Title II--Executive Office of the President

    Language under ``The White House, Salaries and Expenses'' 
provides funds for services authorized by 5 U.S.C. 3109 and 3 
U.S.C. 103, 105 and 107, hire of vehicles, and official 
reception and representation expenses; and the Office of Policy 
Development.
    Language under ``Executive Residence at the White House, 
Operating Expenses'' provides funds for necessary expenses as 
authorized by 3 U.S.C. 105, 109, 110, and 112-114.
    Language under ``Executive Residence at The White House, 
Reimbursable Expenses'' specifies the authorized use of funds; 
specifies that reimbursable expenses are the exclusive 
authority of the Executive Residence to incur obligations and 
receive offsetting collections; requires the sponsors of 
political events to make advance payments; requires the 
national committee of the political party of the President to 
maintain $25,000 on deposit; requires the Executive Residence 
to ensure that amounts owed are billed within 60 days of a 
reimbursable event and collected within 30 days of the bill 
notice; authorizes the Executive Residence to charge and assess 
interest and penalties on late payments; authorizes all 
reimbursements to be deposited into the Treasury as a 
miscellaneous receipt; requires a report to the Committee on 
the reimbursable expenses within 90 days of the end of the 
fiscal year; requires the Executive Residence to maintain a 
system for tracking and classifying reimbursable events; and 
specifies that the Executive Residence is not exempt from the 
requirements of subchapter I or II of chapter 37 of title 31, 
United States Code.
    Language under ``White House Repair and Restoration'' 
provides funds for the repair, alteration, and improvement of 
the Executive Residence at the White House; and allows funds to 
remain available until expended.
    Language under Council of Economic Advisors, ``Salaries and 
Expenses'', is provided for necessary expenses in carrying out 
the Employment Act of 1946.
    Language under ``National Security Council and Homeland 
Security Council, Salaries and Expenses'' provides for services 
authorized by 5 U.S.C. 3109.
    Language under ``Office of Administration, Salaries and 
Expenses'' provides funds for continued modernization of the 
information resources within the Executive Office of the 
President, to remain available until expended, and provides for 
services authorized by 5 U.S.C. 3109 and 3 U.S.C. 107, and for 
the hire of vehicles.
    Language under ``Office of Management and Budget, Salaries 
and Expenses'' provides funds for expenses; services authorized 
by 5 U.S.C. 3109; the hire of vehicles; carrying out provisions 
of chapter 35 of title 44 United States Code and to prepare the 
budget request; specifies funds for official representation 
expenses; prohibits the review of agricultural marketing 
orders; prohibits the use of funds for the purpose of altering 
the transcript of testimony except for OMB officials; prohibits 
the use of funds for evaluating or determining if water 
resource project or study reports submitted by the Chief of 
Engineers are in compliance with all applicable laws, 
regulations, and requirements; and specifies the amount of time 
to perform budgetary policy reviews of water resource matters 
on which the Chief of Engineers has reported before the report 
is considered approved, and specifies notification 
requirements.
    Language under ``Office of National Drug Control Policy, 
Salaries and Expenses'' provides for expenses; receptions and 
representation expenses; participation in joint projects; 
provision of services to non-profit, research or public 
organizations or agencies with or without reimbursement; and 
allows for gifts to be used without fiscal year limitation for 
the work of the Office.
    Language ``High Intensity Drug Trafficking Area Program'' 
provides funds for expenses, extends the availability of funds, 
directs the distribution and obligation of funds, allows for 
the transfer of funds, allows for the reprogramming of 
unobligated funds, and requires notification on the 
distribution of funds.
    Language under ``Other Federal Drug Control Programs'' 
extends the availability of funds, directs the distribution of 
funds, and allows for the transfer of funds.
    Language under ``Unanticipated Needs'' extends the 
availability of funds.
    Language under ``Information Technology Oversight and 
Reform'' provides for the use of funds, extends the 
availability of funds, and allows for the transfer of funds.
    Language under ``Special Assistance to the President, 
Salaries and Expenses'' enables the Vice President to provide 
assistance to the President, services authorized by 5 U.S.C. 
3109 and 3 U.S.C. 106, and the hire of vehicles.
    Language under ``Official Residence of the Vice President, 
Operating Expenses'' provides funds for operation and 
maintenance of the official residence of the Vice President, 
the hire of vehicles, expenses authorized by 3 U.S.C. 106(b)(2) 
and provides for the transfer of funds as necessary.
    In addition, the bill provides the following administrative 
provisions:
    Section 201. Language is included permitting the transfer 
of not to exceed ten percent of funds between various accounts 
within the Executive Office of the President, with advance 
approval of the Committees on Appropriations. The amount of an 
appropriation shall not be increased by more than 50 percent.
    Section 202. Language is included requiring the Director of 
the Office of Management and Budget to report on the costs of 
implementing the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Public Law 111-203).
    Section 203. Language is included requiring the Director of 
the Office of Management and Budget to include a statement of 
budgetary impact with any Executive Order or Presidential 
Memorandum issued or rescinded during fiscal year 2018.

                        Title III--The Judiciary

    Language is included under Supreme Court, ``Salaries and 
Expenses'', providing for certain funds to remain available 
until expended; the hire of passenger motor vehicles, official 
reception and representation, and miscellaneous expenses. 
Language is included providing funds for salaries of judges as 
authorized by law.
    Language is included under Supreme Court, ``Care of the 
Building and Grounds'', permitting funds to remain available 
until expended.
    Language is included under United States Court of Appeals 
for the Federal Circuit, ``Salaries and Expenses'', for 
necessary expenses of the court. Language is included providing 
funds for salaries of judges as authorized by law.
    Language is included under United States Court of 
International Trade, ``Salaries and Expenses'', for necessary 
expenses of the court. Language is included providing funds for 
salaries of judges as authorized by law.
    Language is included under Courts of Appeals, District 
Courts, and Other Judicial Services, ``Salaries and Expenses'', 
providing funds for the salaries of certain judges, and all 
other employees not otherwise provided for; necessary expenses; 
the purchase, rental, repair and cleaning of uniforms for 
Probation and Pretrial Services Office staff; firearms and 
ammunition; and specifies certain funds remain available for 
certain periods for specific purposes. Language is included 
providing funds for salaries of judges as authorized by law. 
Language is also included providing funding from the Vaccine 
Injury Compensation Trust Fund for certain purposes.
    Language is included under Defender Services, providing for 
the compensation and reimbursement of expenses for attorneys, 
investigative, expert and other services, the operation of 
Federal Defender organizations, travel, training, general 
administrative expenses and permitting funds to remain 
available until expended.
    Language is included under Fees of Jurors and 
Commissioners, permitting funds to remain available until 
expended and specifying limitations for the compensation of 
land commissioners.
    Language is included under Court Security, providing for 
protective guard services and procurement, installation and 
maintenance of security systems and equipment, building 
ingress-egress control, inspection of mail and packages, 
directed security patrols, perimeter security and services 
provided by the Federal Protective Services. Language is 
included permitting certain funds to remain available until 
expended, which may be transferred to the United States 
Marshals Service.
    Language is included under Administrative Office of the 
United States Courts, ``Salaries and Expenses'', providing for 
travel, the hire of passenger motor vehicles, advertising and 
rent in the District of Columbia. Language is included 
specifying certain amounts for official reception and 
representation expenses.
    Language is included under Federal Judicial Center, 
``Salaries and Expenses'', extending the availability of 
certain funds for education and training, and specifying 
certain amounts for official reception and representation 
expenses.
    Language is included under United States Sentencing 
Commission, ``Salaries and Expenses'', specifying certain 
amounts for official reception and representation expenses.
    In addition, the bill provides the following administrative 
provisions:
    Section 301. Language is included permitting funds for 
salaries and expenses to be available for the employment of 
experts and consultant services as authorized by 5 U.S.C. 3109.
    Section 302. Language is included permitting up to five 
percent of any appropriation made available for fiscal year 
2018 to be transferred between Judiciary appropriations 
provided that no appropriation shall be decreased by more than 
five percent or increased by more than ten percent by any such 
transfer except in certain circumstances. In addition, the 
language provides that any such transfer shall be treated as a 
reprogramming of funds under sections 604 and 608 of the 
accompanying bill and shall not be available for obligation or 
expenditure except in compliance with the procedures set forth 
in those sections.
    Section 303. Language is included allowing not to exceed 
$11,000 to be used for official reception and representation 
expenses incurred by the Judicial Conference of the United 
States.
    Section 304. Language is included allowing the delegation 
of authority to the Judiciary for contracts for repairs of less 
than $100,000 through fiscal year 2018.
    Section 305. Language is included allowing a court security 
pilot program.
    Section 306. Language is included requested by the Judicial 
Conference of the United States extending temporary judgeships 
in Arizona, California, Florida, Kansas, Missouri, New Mexico, 
North Carolina and Texas.
    Section 307. Language is included requested by the Judicial 
Conference of the United States extending temporary bankruptcy 
judgeships in Virginia, Michigan, Puerto Rico, Delaware, and 
Florida.

                     Title IV--District of Columbia

    Language is included under ``Federal Payment for Resident 
Tuition Support'', permitting the amount appropriated to remain 
available until expended; specifying conditions for the use, 
award, and financial accounting of funds; and requiring 
quarterly reports.
    Language is included under ``Federal Payment for Emergency 
Planning and Security Costs in the District of Columbia'', 
providing that the amount appropriated shall remain available 
until expended for providing public safety at events, including 
support of the United States Secret Service, and to respond to 
terrorist threats or attacks.
    Language is included under ``Federal Payment to the 
District of Columbia Courts'', authorizing official reception 
and representation expenses; specifying certain amounts for 
specific purposes; providing all amounts under this heading 
shall be apportioned quarterly by the Office of Management and 
Budget and obligated and expended in the same manner as funds 
appropriated for salaries and expenses of other Federal 
agencies; allowing funds made available for capital 
improvements to remain available until September 30, 2018; 
providing for the reallocation of funds and providing for 
certain payments.
    Language is included under ``Defender Services in the 
District of Columbia Courts'', providing that the amount 
appropriated shall remain available until expended; specifying 
who shall administer these funds; and providing that all 
amounts under this heading shall be apportioned quarterly by 
the Office of Management and Budget and obligated and expended 
in the same manner as funds appropriated for salaries and 
expenses of other Federal agencies; and that not more than 
$20,000,000 in unobligated funds provided in this account may 
be transferred to and merged with funds made available under 
the heading ``Federal Payment to District of Columbia Courts''.
    Language is included under ``Federal Payment to the Court 
Services and Offender Supervision Agency for the District of 
Columbia'', allowing the transfer and hire of motor vehicles; 
authorizing official reception and representation expenses; 
specifying certain amounts for specific purposes and programs; 
allowing $3,159,000 to remain available until September 30, 
2018; providing that all amounts under this heading shall be 
apportioned quarterly by the Office of Management and Budget 
and obligated and expended in the same manner as funds 
appropriated for salaries and expenses of other Federal 
agencies; allowing the use of programmatic incentives for 
offenders and defendants who successfully meet the terms of 
their supervision; authorizing the Director to accept, solicit 
and use on the behalf of the Agency any monetary or nonmonetary 
gift to support offenders and defendants successfully meeting 
terms of supervision; specifying for recording the acceptance 
of such gifts; and authorizing the acceptance and use of space 
and services on a cost reimbursable basis from the District of 
Columbia Government.
    Language is included under ``Federal Payment to District of 
Columbia Public Defender Service'', allowing the transfer and 
hire of motor vehicles; providing that all amounts under this 
heading shall be apportioned quarterly by the Office of 
Management and Budget and obligated and expended in the same 
manner as funds appropriated for salaries and expenses of other 
Federal agencies; and authorizing the acceptance and use of 
voluntary and uncompensated services to facilitate the work of 
the District of Columbia Public Defender Service.
    Language is included under ``Federal Payment to the 
Criminal Justice Coordinating Council'', specifying that the 
amount appropriated shall remain available until expended to 
support initiatives related to the coordination of Federal and 
local criminal justice resources.
    Language is included under ``Federal Payment for Judicial 
Commissions'', specifying certain amounts for certain 
commissions and allowing for appropriations to remain available 
until September 30, 2018.
    Language is included under ``Federal Payment for School 
Improvement'', allowing for appropriations to remain available 
until expended for payments authorized under the Scholarship 
for Opportunity and Results Act.
    Language is included under ``Federal Payment for the 
District of Columbia National Guard'', providing funds for the 
National Guard Retention and College Access Program to remain 
available until expended.
    Language is included under ``Federal Payment for Testing 
and Treatment of HIV/AIDS'' for testing and treatment.
    Language is included under ``District of Columbia Funds'': 
(1) providing funds as proposed in the Fiscal Year 2018 Budget 
Request Act of 2017 submitted to Congress by the District of 
Columbia; (2) limits the amount provided in this Act for the 
District of Columbia to the amount of the proposed budget or 
the sum of total revenues; (3) providing conditions for 
increasing the amount provided; and (4) directing the Chief 
Financial Officer to ensure the District of Columbia meets all 
requirements, but prohibits the reprogramming of capital 
projects.

                     Title V--Independent Agencies

    Language is included for the Administrative Conference of 
the United States, ``Salaries and Expenses'', providing for 
expenses, including official reception and representation and 
allowing funds to be available until September 30, 2019.
    Language is included for the Consumer Product Safety 
Commission, ``Salaries and Expenses'', that provides funds for 
expenses, the hire of motor vehicles, services as authorized by 
5 U.S.C. 3109 (with a limitation on rates for individuals), and 
official reception and representation expenses. Language is 
included that provides funds for the Virginia Graeme Baker Pool 
and Spa Safety Act grant program.
    The bill includes the following administrative provisions 
under the Consumer Product Safety Commission:
    Section 501. Language is included prohibiting funds to 
finalize, implement, or enforce the proposed rule on 
recreational off-highway vehicles until a study is completed by 
the National Academy of Sciences.
    Section 502. Language is included prohibiting funds to 
finalize any rule by the Consumer Product Safety Commission 
relating to blade-contact injuries on table saws.
    Language is included for the Election Assistance 
Commission, ``Salaries and Expenses'', that provides necessary 
funds to carry out the Help America Vote Act of 2002.
    Language is included under the Federal Communications 
Commission, ``Salaries and Expenses'', permitting funds for 
uniforms and allowances therefor, official reception and 
representation expenses, purchase and hire of motor vehicles, 
special counsel fees, and services as authorized by 5 U.S.C. 
3109. Language provides for the assessment and collection of 
offsetting collections, authorizes retention of such 
collections, and provides that they remain available until 
expended. Language prohibits the availability for obligation of 
excess collections. Language limits the use of proceeds from 
the use of a competitive bidding system. Language provides 
funding for the Office of Inspector General.
    Language is included for the Federal Deposit Insurance 
Corporation, ``Office of Inspector General'', that provides for 
the funds to be derived from the Deposit Insurance Fund, and 
the FSLIC Resolution Fund.
    Language is included for the Federal Election Commission, 
``Salaries and Expenses'', providing for expenses including 
official reception and representation.
    Language is included for the Federal Labor Relations 
Authority, ``Salaries and Expenses'', that provides funds for 
services authorized by 5 U.S.C. 3109, the hire of experts and 
consultants, hire of motor vehicles, reception and 
representation expenses and the rental of conference rooms; 
authorizes travel payments to public members of the Federal 
Service Impasses Panel; and allows for fees collected to be 
transferred to and merged with the appropriation.
    Language is included for the Federal Trade Commission, 
``Salaries and Expenses'', permitting funds for uniforms and 
allowances therefor, services authorized by 5 U.S.C. 3109, 
official reception and representation expenses, hire of motor 
vehicles, and contract for collection services. Language 
provides for the crediting and retention of certain fees. 
Language also prohibits funds from being used to implement 
subsection (e)(2)(B) of section 43 of the Federal Deposit 
Insurance Act.
    Language is included for the General Services 
Administration, ``Federal Buildings Fund'' that allows for 
revenues and collections to be spent from the Fund; specifies 
the conditions under which funds made available can be used; 
limits the availability of funds for certain purposes; 
specifies funding for construction and acquisition projects; 
specifies funding for special emphasis programs; provides for 
certain transfers of funds; requires spending plans; and 
prohibits excess funds from being available.
    Language is included for the General Services 
Administration, ``Government-wide Policy'', that provides funds 
for policy and evaluation activities associated with the 
management of real and personal property assets and certain 
administrative services; support responsibilities relating to 
acquisition, telecommunications, motor vehicles, information 
technology management, and related technology activities; and 
services authorized by 5 U.S.C. 3109.
    Language is included for the General Services 
Administration, ``Operating Expenses'' that provides funds for 
Government-wide activities associated with personal and real 
property disposal, and services authorized by 5 U.S.C. 3109; 
for expenses for activities associated with agency-wide policy 
direction and management; for necessary expenses of the 
Civilian Board of Contract Appeals; for official reception and 
representation; designates funds for certain purposes; and 
provides for certain transfers.
    Language is included for the General Services 
Administration, ``Office of Inspector General'' that makes 
certain funds available until expended and provides for awards 
in recognition of efforts that enhance the office. Language is 
included for services authorized by 5 U.S.C. 3109 and 
designates funds for information and detection of fraud.
    Language is included for the General Services 
Administration, ``Allowances and Office Staff for Former 
Presidents'', for carrying out the provisions of 3 U.S.C. 102 
note and Public Law 95-138.
    Language is included for the General Services 
Administration, ``Federal Citizen Services Fund'', that 
provides funds for the Office of Citizen Services and other 
information technology costs. Language is included allowing for 
certain transfers to the Federal Citizen Services Fund. 
Language is also included for the ``Federal Citizen Services 
Fund'' that authorizes funds to be deposited in the Fund and 
limits the availability of funds in the Fund.
    Language is included for the General Services 
Administration, ``Asset Proceeds and Space Management Fund'' 
for the purposes of carrying out actions pursuant to 
recommendations of the Public Buildings Reform Board focusing 
on civilian real property.
    Language is included for the General Services 
Administration, ``Environmental Review Improvement Fund'' for 
the authorized activities of the Environmental Review 
Improvement Fund and the Federal Permitting Improvement 
Steering Council.
    In addition, the bill includes the following administrative 
provisions under the General Services Administration (GSA):
    Section 510. Language is included providing authority for 
the use of funds for the hire of motor vehicles.
    Section 511. Language is included providing that funds made 
available for activities of the Federal Buildings Fund may be 
transferred between appropriations with advance approval of the 
Congress to apply to funds provided in prior appropriations 
Acts.
    Section 512. Language is included requiring funds proposed 
for developing courthouse construction requests to meet 
appropriate standards and the priorities of the Judicial 
Conference.
    Section 513. Language is included providing that no funds 
may be used to increase the amount of occupiable square feet, 
provide cleaning services, security enhancements, or any other 
service usually provided, to any agency which does not pay the 
assessed rent.
    Section 514. Language is included permitting GSA to pay 
small claims (up to $250,000) made against the Federal 
Government.
    Section 515. Language is included requiring the 
Administrator to ensure that the delineated area of procurement 
for all lease agreements is identical to the delineated area 
included in the prospectus unless prior notice is given to the 
Committees.
    Section 516. Language is included requiring a spend plan 
for certain accounts and programs.
    Section 517. Language is included establishing the Asset 
Proceeds Space Management Fund as a fund separate from the 
Federal Buildings Fund.
    Section 518. Language is included rescinding prior year 
unobligated balances from the FBI Headquarters Consolidation 
project funded in Public Law 115-31.
    Section 519. Language is included requiring GSA to post 
certain draft environmental impact assessments on the GSA 
website.
    Language is included for the Harry S Truman Scholarship 
Foundation as established by section 10 of Public Law 93-642.
    Language is included for the Merit Systems Protection 
Board, ``Salaries and Expenses'', that provides funds for 
services authorized by 5 U.S.C. 3109, rental of conference 
rooms, hire of passenger motor vehicles, direct procurement of 
survey printing, official reception and representation 
expenses, specifies the period of availability for certain 
funds, provides for administration expenses to adjudicate 
retirement appeals, and provides for the transfer of some 
funds.
    Language is included for the National Archives and Records 
Administration, ``Operating Expenses'', that provides funds for 
uniforms or allowances therefor, as authorized by 5 U.S.C. 5901 
et seq., including maintenance, repairs, and cleaning, the hire 
of passenger motor vehicles, activities of the Public Interest 
Declassification Board, the review and declassification of 
documents, and the operations and maintenance of the electronic 
records archive.
    Language is included for the National Archives and Records 
Administration, ``Office of Inspector General'', that provides 
funds for the hire of motor vehicles.
    Language is included for the National Archives and Records 
Administration, ``Repairs and Restoration'', that provides 
funds for the repair, alteration, improvement, and provision of 
adequate storage; and provides that funds remain available 
until expended.
    Language is included under the National Archives and 
Records Administration, ``National Historical Publications and 
Records Commission Grants Program'', that provides funds for 
allocations and grants for historical publications and records; 
and provides that funds remain available until expended.
    Language is included under the National Credit Union 
Administration, ``Community Development Credit Union Revolving 
Loan Fund'', that provides funds for technical assistance and 
extends the availability of funds.
    Language is included under the Office of Government Ethics, 
``Salaries and Expenses'', that provides funds for services 
authorized by 5 U.S.C. 3109, rental of conference rooms, hire 
of passenger motor vehicles, and official reception and 
representation expenses.
    Language is included under the Office of Personnel 
Management, ``Salaries and Expenses'', that provides funds for 
services authorized by 5 U.S.C. 3109, medical examinations for 
veterans, rental of conference rooms, hire of passenger motor 
vehicles, official reception and representation expenses, 
advances for reimbursements, payment of per diem or subsistence 
allowances, and the transfer of administrative expenses; 
directs that provisions shall not affect other authorities; 
prohibits funds for the Legal Examining Unit; and authorizes 
the acceptance of donations under certain conditions. Language 
is also included specifying the period of availability for 
certain funds and requiring a report on information technology.
    Language is included for the Office of Personnel 
Management, Office of Inspector General, ``Salaries and 
Expenses'', that provides funds for services authorized by 5 
U.S.C. 3109, hire of passenger motor vehicles, rental of 
conference rooms, and a transfer for administrative expenses.
    Language is included for the Office of Special Counsel, 
``Salaries and Expenses'', that provides funds for services 
authorized by 5 U.S.C. 3109, payment of fees and expenses for 
witnesses, rental of conference rooms, and the hire of 
passenger motor vehicles.
    Language is included for the Postal Regulatory Commission, 
``Salaries and Expenses'', that provides for transfer of funds 
from the Postal Service Fund.
    Language is included for the Privacy and Civil Liberties 
Oversight Board, ``Salaries and Expenses'', that provides funds 
authorized by section 1061 of 42 U.S.C. 2000ee.
    Language is included for the Public Buildings Reform Board, 
``Salaries and Expenses, that provides funds for carrying out 
the Federal Assets Sale and Transfer Act of 2016 (P.L. 114-
287).
    Language is included for the Securities and Exchange 
Commission, ``Salaries and Expenses'', that provides for rental 
of space, services, reception and representation expenses, a 
permanent secretariat for the International Organization of 
Securities Commissions, and consultations and meetings hosted 
by the Commission. Language is included designating funds for 
information technology initiatives and the economics division. 
Language is included that provides for the crediting of 
offsetting collections. Language provides for the assessment 
and collection of offsetting collections, authorizes retention 
of such collections, and provides that they remain available 
until expended.
    Language is included for the Selective Service System, 
``Salaries and Expenses'', that provides funds for attendance 
of meetings, training, hire of passenger motor vehicles, 
services authorized by 5 U.S.C. 3109, and official reception 
and representation expenses; authorizes certain exemptions 
under certain conditions; and prohibits funds used in 
connection with the induction of any person into the Armed 
Forces of the United States.
    Language is included for the Small Business Administration, 
``Salaries and Expenses'', that provides for hire of motor 
vehicles and official reception and representation expenses. 
Language is also included to provide authority to charge fees 
and credit such fees to the account without further 
appropriation. Language is also included designating funds for 
lender oversight. Language is also included for the Loan 
Modernization and Accounting System and co-sponsor activities.
    Language is included for the Small Business Administration, 
``Entrepreneurial Development Programs'', that provides for 
supporting entrepreneurial and small business development grant 
programs. Language is included extending the availability of 
funds.
    Language is included for the Small Business Administration, 
``Office of Inspector General'', that provides funds to carry 
out the provisions of the Inspector General Act of 1978.
    Language is included for the Small Business Administration, 
``Office of Advocacy'', that provides funds to carry out the 
provisions of the Independent Office of Advocacy Act of 2003 
and the Regulatory Flexibility Act of 1980 and allows funds to 
remain available until expended.
    Language is included for the Small Business Administration, 
``Business Loans Program Account'', limiting commitments for 
certain guaranteed loan programs and for providing for the cost 
of direct loans and guaranteed loans. Language is also included 
authorizing the transfer of funds to ``Salaries and Expenses'' 
for administrative expenses.
    Language is included for the Small Business Administration 
``Disaster Loan Program Account'', that provides for 
administrative expenses, the transfer of funds to the ``Office 
of Inspector General'' and to ``Salaries and Expenses'' and 
allows funds to remain available until expended.
    Section 520 allows for the transfer of funds between Small 
Business Administration appropriations.
    Section 521 rescinds prior year unobligated balances.
    Section 522 amends requirements for the Microloan program.
    Language is included for the United States Postal Service, 
``Payment to the Postal Service Fund'', that provides funds for 
revenue forgone; stipulates that mail for overseas voting and 
mail for the blind is free; provides that 6-day delivery shall 
continue at not less than the 1983 level; prohibits funds in 
this Act from being used to charge a fee to a child support 
enforcement agency seeking the address of a postal customer; 
prohibits funds from being used to consolidate or close small 
rural and other small post offices; and requires the Postal 
Service to maintain and comply with service standards for First 
Class Mail and periodicals effective on July 1, 2012.
    Language is included for the United States Postal Service, 
``Office of Inspector General'', that provides for transfer 
from the Postal Service Fund.
    Language is included for the United States Tax Court, 
``Salaries and Expenses'', that provides funds for contract 
reporting and services authorized by 5 U.S.C. 3109, and that 
travel expenses of the judges shall be paid upon the written 
certificate of the judge.

                 Title VI--General Provisions--This Act

    In addition, the bill provides the following provisions 
under this title:
    Section 601. Language is included prohibiting pay and other 
expenses for non-Federal parties in regulatory or adjudicatory 
proceedings funded in this Act.
    Section 602. Language is included prohibiting obligations 
beyond the current fiscal year and prohibits transfers of funds 
unless expressly so provided herein.
    Section 603. Language is included limiting procurement 
contracts for consulting service expenditures to contracts that 
are matters of public record and available for public 
inspection.
    Section 604. Language is included prohibiting transfer of 
funds in this Act without express authority.
    Section 605. Language is included prohibiting the use of 
funds to engage in activities that would prohibit the 
enforcement of section 307 of the 1930 Tariff Act.
    Section 606. Language is included concerning compliance 
with the Buy American Act.
    Section 607. Language is included prohibiting the use of 
funds by any person or entity convicted of violating the Buy 
American Act.
    Section 608. Language is included specifying reprogramming 
procedures. The provision requires that agencies or entities 
funded by the Act notify the Committee and obtain prior 
approval from the Committee for any reprogramming of funds 
that: (1) creates a new program; (2) eliminates a program, 
project, or activity; (3) increases funds or personnel for any 
program, project, or activity for which funds have been denied 
or restricted by the Congress; (4) proposes to use funds 
directed for a specific activity by either the House or Senate 
Committees on Appropriations for a different purpose; (5) 
augments existing programs, projects, or activities in excess 
of $5,000,000 or 10 percent, whichever is less; (6) reduces 
existing programs, projects, or activities by $5,000,000 or 10 
percent, whichever is less; or (7) reorganizes offices, 
programs, or activities. The provision also directs the 
agencies funded by this Act to submit operating plans for the 
Committee's review within 60 days of the bill's enactment.
    Section 609. Language is included providing that fifty 
percent of unobligated balances may remain available for 
certain purposes.
    Section 610. Language is included prohibiting funding for 
the Executive Office of the President to request either a 
Federal Bureau of Investigation background investigation or 
Internal Revenue Service determination with respect to section 
501(a) of the Internal Revenue Code of 1986, except with the 
express consent of the individual involved in an investigation 
or in extraordinary circumstances involving national security.
    Section 611. Language is included regarding cost accounting 
standards for contracts under the Federal Employee Health 
Benefits Program.
    Section 612. Language is included regarding non-foreign 
area cost of living allowances.
    Section 613. Language is included prohibiting the 
expenditure of funds for abortion under the Federal Employees 
Health Benefits program.
    Section 614. Language is included making exceptions to the 
preceding provision where the life of the mother is in danger 
or the pregnancy is a result of an act of rape or incest.
    Section 615. Language is included waiving restrictions on 
the purchase of non-domestic articles, materials, and supplies 
in the case of acquisition of information technology by the 
Federal government.
    Section 616. Language is included prohibiting officers or 
employees of any regulatory agency or commission funded by this 
Act from accepting travel payments or reimbursements from a 
person or entity regulated by such agency or commission.
    Section 617. Language is included permitting the Securities 
and Exchange Commission and Commodities Futures Trading 
Commission to fund a joint advisory committee to advise on 
emerging regulatory issues, notwithstanding Section 708 of this 
Act.
    Section 618. Language is included requiring certain 
agencies in this Act to consult with the General Services 
Administration before seeking new office space or making 
alterations to existing office space.
    Section 619. Language is included providing for several 
appropriated mandatory accounts. These are accounts where 
authorizing language requires the payment of funds. The 
Congressional Budget Office estimates the cost for the 
following programs addressed in this provision: $450,000 for 
Compensation of the President including $50,000 for expenses, 
$167,000,000 for the Judicial Retirement Funds (Judicial 
Officers' Retirement Fund, Judicial Survivors' Annuities Fund, 
and the United States Court of Federal Claims Judges' 
Retirement Fund), $13,202,000,000 for the Government Payment 
for Annuitants, Employee Health Benefits, $48,000,000 for the 
Government Payment for Annuitants, Employee Life Insurance, and 
$8,365,000,000 for the Payment to the Civil Service Retirement 
and Disability Fund.
    Section 620. Language is included prohibiting funds for the 
Federal Trade Commission to complete or publish the study, 
recommendations, or report prepared by the Interagency Working 
Group on Food Marketed to Children.
    Section 621. Language is included preventing conflicts of 
interest by prohibiting contractor security clearance related 
background investigators from undertaking final Federal reviews 
of their own work.
    Section 622. Language is included requiring that the head 
of any executive branch agency ensure that the Chief 
Information Officer (CIO) has authority to participate in the 
budget planning process and approval of the information 
technology (IT) budget.
    Section 623. Language is included prohibiting funds in 
contravention of the Federal Records Act.
    Section 624. Language is included prohibiting agencies from 
requiring Internet Service Providers (ISPs) to disclose 
electronic communications information in a manner that violates 
the Fourth Amendment.
    Section 625. Language is included prohibiting funds to be 
used to deny inspectors general access to records.
    Section 626. Language is included prohibiting any funds 
made available in this Act from being used to establish a 
computer network unless such network blocks the viewing, 
downloading, and exchanging of pornography.
    Section 627. Language is included to clarify the period of 
time offered to the victims of the OPM security breaches that 
occurred in 2015.
    Section 628. Language is included permanently rescinding 
the unobligated balance in the Securities and Exchange 
Commission Reserve Fund established by section 991 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Public 
Law 111-203).
    Section 629. Language is included prohibiting funds for the 
Securities and Exchange Commission to require the disclosure of 
political contributions to tax exempt organizations, or dues 
paid to trade associations.
    Section 630. Language is included repealing the Federal 
Election Commission's prior approval requirement for corporate 
member trade association PACs.
    Section 631. Language is included prohibiting funds to pay 
for an abortion or the administrative expenses in connection 
with a multi-State qualified health plan offered under a 
contract under section 1334 of the Patient Protection and 
Affordable Care Act which provides any benefits or coverage for 
abortions, except for endangerment of the life of the mother, 
rape or incest.
    Section 632. Language is included prohibiting funds to 
require public electronic communications providers or remote 
computing services to disclose the contents of a wire or 
electronic communication unless required by a court warrant.
    Section 633. The Committee includes a new provision which 
defines a pyramid promotional scheme, and limits funds to 
enforcement actions under the definition.

             Title VII--General Provisions--Government-Wide

    In addition, the bill provides the following provisions 
under this title:
    Section 701. Language is included requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from the illegal use of controlled 
substances.
    Section 702. Language is included establishing price 
limitations on vehicles to be purchased by the Federal 
Government with certain exceptions.
    Section 703. Language is included allowing funds made 
available to agencies for travel to also be used for quarters 
allowances and cost-of-living allowances.
    Section 704. Language is included prohibiting the 
employment of noncitizens with certain exceptions.
    Section 705. Language is included giving agencies the 
authority to pay General Services Administration bills for 
space renovation and other services.
    Section 706. Language is included allowing agencies to 
finance the costs of recycling and waste prevention programs 
with proceeds from the sale of materials recovered through such 
programs.
    Section 707. Language is included providing that funds made 
available to corporations and agencies subject to 31 U.S.C. 91 
may pay rent and other service costs in the District of 
Columbia.
    Section 708. Language is included prohibiting interagency 
financing of groups absent prior statutory approval.
    Section 709. Language is included prohibiting the use of 
funds for enforcing regulations disapproved in accordance with 
the applicable law of the U.S.
    Section 710. Language is included limiting the amount of 
funds that can be used for redecoration of offices under 
certain circumstances.
    Section 711. Language is included allowing for interagency 
funding of national security and emergency telecommunications 
initiatives.
    Section 712. Language is included requiring agencies to 
certify that a Schedule C appointment was not created solely or 
primarily to detail the employee to the White House.
    Section 713. Language is included prohibiting the payment 
of any employee who prohibits, threatens or prevents another 
employee from communicating with Congress.
    Section 714. Language is included prohibiting Federal 
training not directly related to the performance of official 
duties.
    Section 715. Language is included prohibiting, other than 
for normal and recognized executive-legislative relationships, 
propaganda, publicity and lobbying by executive agency 
personnel in support or defeat of legislative initiatives.
    Section 716. Language is included prohibiting any Federal 
agency from disclosing an employee's home address to any labor 
organization, absent employee authorization or court order.
    Section 717. Language is included prohibiting funds to be 
used to provide non-public information such as mailing, 
telephone, or electronic mailing lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 718. Language is included prohibiting the use of 
funds for propaganda and publicity purposes not authorized by 
Congress.
    Section 719. Language is included directing agency 
employees to use official time in an honest effort to perform 
official duties.
    Section 720. Language is included allowing the use of funds 
to finance an appropriate share of the Federal Accounting 
Standards Advisory Board.
    Section 721. Language is included allowing the transfer of 
funds to the General Services Administration to finance an 
appropriate share of various government-wide boards and 
councils and for Federal Government Priority Goals under 
certain conditions.
    Section 722. Language is included permitting breast feeding 
in a Federal building or on Federal property if the woman and 
child are authorized to be there.
    Section 723. Language is included permitting interagency 
funding of the National Science and Technology Council and 
provides for a report on the budget and resources of the 
National Science and Technology Council.
    Section 724. Language is included requiring documents 
involving the distribution of Federal funds to indicate the 
agency providing the funds and the amount provided.
    Section 725. Language is included prohibiting the use of 
funds to monitor personal access or use of Internet sites or to 
collect, review, or obtain any personally identifiable 
information relating to access to or use of an Internet site.
    Section 726. Language is included requiring health plans 
participating in the Federal Employees Health Benefits Program 
to provide contraceptive coverage and provides exemptions to 
certain religious plans.
    Section 727. Language is included supporting strict 
adherence to anti-doping activities.
    Section 728. Language is included allowing funds for 
official travel to be used by departments and agencies, if 
consistent with OMB Circular A-126, to participate in the 
fractional aircraft ownership pilot program.
    Section 729. Language is included restricting the use of 
funds for Federal law enforcement training facilities.
    Section 730. Language is included prohibiting Executive 
Branch agencies from creating prepackaged news stories that are 
broadcast or distributed in the United States unless the story 
includes a clear notification within the text or audio of that 
news story that the prepackaged news story was prepared or 
funded by that executive branch agency.
    Section 731. Language is included prohibiting use of funds 
in contravention of section 552a of title 5, United States Code 
(the Privacy Act) and regulations implementing that section.
    Section 732. Language is included prohibiting funds from 
being used for any Federal Government contract with any foreign 
incorporated entity which is treated as an inverted domestic 
corporation.
    Section 733. Language is included requiring agencies to pay 
a fee to the Office of Personnel Management for processing 
retirement of employees who separate under Voluntary Early 
Retirement Authority or who receive Voluntary Separation 
Incentive payments.
    Section 734. Language is included prohibiting funds to 
require any entity submitting an offer for a Federal contract 
or participating in an acquisition to disclose political 
contributions.
    Section 735. Language is included prohibiting funds for the 
painting of a portrait of an employee of the Federal government 
including the President, the Vice President, a Member of 
Congress, the head of an executive branch agency, or the head 
of an office of the legislative branch.
    Section 736. Language is included limiting the pay 
increases of certain prevailing rate employees.
    Section 737. Language is included requiring agencies to 
submit reports to Inspectors General concerning expenditures 
for agency conferences.
    Section 738. Language is included prohibiting funds to be 
used to increase, eliminate, or reduce funding for a program or 
project unless such change is made pursuant to reprogramming or 
transfer provisions.
    Section 739. Language is included prohibiting agencies from 
using funds to implement regulations changing the competitive 
areas under reductions-in-force for Federal employees.
    Section 740. Language is included ensuring contractors are 
not prevented from reporting waste, fraud, or abuse by signing 
confidentiality agreements that would prohibit such disclosure.
    Section 741. Language is included prohibiting the 
expenditure of funds for the implementation of certain 
nondisclosure agreements unless certain provisions are included 
in the agreements.
    Section 742. Language is included prohibiting funds to any 
corporation with certain unpaid Federal tax liabilities unless 
an agency has considered suspension or debarment of the 
corporation and made a determination that further action is not 
necessary to protect the interests of the Government.
    Section 743. Language is included prohibiting funds to any 
corporation that was convicted of a felony criminal violation 
within the preceding 24 months unless an agency has considered 
suspension or debarment of the corporation and made a 
determination that further action is not necessary to protect 
the interests of the Government.
    Section 744. Language is included requiring the Bureau of 
Consumer Financial Protection to notify certain Committees of 
requests for a transfer of funds from the Federal Reserve 
System and to post any such notifications on the Bureau's 
website.
    Section 745. Language is included prohibiting funds from 
implementing, administering, carrying out, modifying, revising, 
or enforcing Executive Order 13690.
    Section 746. Language is included allowing those 
individuals authorized to be employed under the Deferred Action 
for Childhood Arrivals program to be eligible for employment by 
the federal government.
    Section 747. Language is included concerning the non-
application of these general provisions to title IV and to 
title VIII.

          Title VIII--General Provisions--District of Columbia

    In addition, the bill provides the following provisions 
under this title:
    Section 801. Language is included that appropriates funds 
for refunding overpayments of taxes collected and for paying 
settlements and judgments against the District of Columbia 
government.
    Section 802. Language is included prohibiting the use of 
Federal funds for publicity or propaganda purposes.
    Section 803. Language is included establishing 
reprogramming procedures for Federal and local funds.
    Section 804. Language is included prohibiting the use of 
Federal funds to provide salaries or other costs associated 
with the offices of United States Senator or Representative.
    Section 805. Language is included restricting the use of 
official vehicles to official duties.
    Section 806. Language is included prohibiting the use of 
Federal funds for any petition drive or civil action which 
seeks to require Congress to provide for voting representation 
in Congress for the District of Columbia.
    Section 807. Language is included prohibiting the use of 
Federal funds for needle exchange programs.
    Section 808. Language is included providing for a 
``conscience clause'' on legislation that pertains to 
contraceptive coverage by health insurance plans.
    Section 809. Language is included prohibiting the use of 
Federal funds to legalize or reduce penalties associated with 
the possession, use, or distribution on any schedule I 
substance under the Controlled Substances Act or any 
tetrahydrocannabinols derivative.
    Language is also included prohibiting local and Federal 
funds to legalize or reduce penalties associated with the 
possession, use, or distribution of any schedule I substance 
under the Controlled Substance Act or any tetrahydrocannabinols 
derivative for recreational use.
    Section 810. Language is included prohibiting the use of 
funds for abortion except in the cases of rape or incest or if 
necessary to save the life of the mother.
    Section 811. Language is included requiring the Chief 
Financial Officer (CFO) to submit a revised operating budget 
for all agencies in the D.C. government, no later than 30 
calendar days after the enactment of this Act that realigns 
budgeted data with anticipated actual expenditures.
    Section 812. Language is included requiring the CFO to 
submit a revised operating budget for D.C. Public Schools, no 
later than 30 calendar days after the enactment of this Act, 
that realigns school budgets to actual school enrollment.
    Section 813. Language is included allowing the transfer of 
local funds and capital and enterprise funds.
    Section 814. Language is included prohibiting the 
obligation of Federal funds beyond the current fiscal year and 
transfers of funds unless expressly provided herein.
    Section 815. Language is included providing that not to 
exceed 50 percent of unobligated balances from Federal 
appropriations for salaries and expenses may remain available 
for certain purposes.
    Section 816. Language is included appropriating local funds 
during fiscal year 2019 if there is an absence of a continuing 
resolution or regular appropriation for the District of 
Columbia. Funds are provided under the same authorities and 
conditions and in the same manner and extent as provided for in 
fiscal year 2018.
    Section 817. Language is included repealing the Local 
Budget Autonomy Amendment Act of 2012.
    Section 818. Language is included prohibiting funds to 
enact any act, resolution, rule, regulation, guidance, or other 
law to permit any person to carry out any activity, or to 
reduce the penalties imposed with respect to any activity to 
which subsection (a) of section 3 of the Assisted Suicide 
Funding Restriction Act of 1997 applies, and repeals with Death 
with Dignity Act of 2016.
    Section 819. Language is included limiting references to 
``this Act'' as referring to only this title and title IV.

                        Title IX--Other Matters

    Language is included from H.R. 10, the Financial CHOICE 
Act, as passed by the House of Representatives on June 8, 2017.

               Title X--Financial Institution Bankruptcy

    Language is included from H.R. 1667, the Financial 
Institution Bankruptcy Act of 2017, as passed by the House of 
Representatives on April 5, 2017.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                   Appropriation
                                                   Last Year of    Authorization   in Last Year   Appropriations
                     Account                       Authorization       Level            of         in this bill
                                                                                   Authorization
----------------------------------------------------------------------------------------------------------------
Title I--Department of the Treasury
    Departmental Offices........................             n/a             n/a             n/a         201,751
    Office of Terrorism and Financial                        n/a             n/a             n/a         123,000
     Intelligence...............................
    Cybersecurity Enhancement Account...........             n/a             n/a             n/a          27,264
    Department-Wide Systems and Capital                     1997  ..............  ..............           3,077
     Investments Program........................
    Office of Inspector General.................  ..............  ..............  ..............          34,112
    Treasury Inspector General for Tax                       n/a             n/a             n/a         165,113
     Administration.............................
    Special Inspector General for the Troubles    ..............  ..............  ..............          37,044
     Asset Relief Program.......................
    Financial Crimes Enforcement Network........            2013         100,419         111,788         115,003
    Bureau of the Fiscal Service................             n/a             n/a             n/a         330,837
    Alcohol and Trade Tax and Trade Bureau......             n/a             n/a             n/a         111,439
    Community Development and Financial                     1998         111,000          45,000         190,000
     Institutions Fund..........................
    Internal Revenue Service:
        Taxpayer Services.......................             n/a             n/a             n/a       2,315,754
        Enforcement.............................             n/a             n/a             n/a       4,810,000
        Operations Support......................             n/a             n/a             n/a       3,850,189
        Business Systems Modernization..........             n/a             n/a             n/a         110,000
Title II--Executive Office of the President
    Office of Managment and Budget Policy.......            2003         various          61,988         100,000
        Salaries and Expenses...................            2010             n/a          29,575          18,400
        High Intensity Drug Trafficking Areas...            2011         280,000         238,522         254,000
        Other Federal Drug Control Programs.....         various         various         105,550         108,843
        Information Technology Oversight and                 n/a             n/a             n/a          20,000
         Reform.................................
Title IV--District of Columbia
    Federal Payment for Resident Tuition Support            2012       such sums          30,000          30,000
    Federal Payment for the Judicial Commissions             n/a             n/a             n/a             565
    Federal Payment for School Improvement......            2016          60,000          45,000          45,000
    Federal Payment for the DC National Guard...             n/a             n/a             n/a             435
    Federal Payment for Testing and Treatment of             n/a             n/a             n/a           5,000
     HIV/AIDS...................................
Title V--Independent Agencies
    Administrative Conference of the United                 2011           3,200           2,750           3,100
     States.....................................
    Consumer Safety Product Commission..........            2014         136,409         118,000         123,000
    Election Assistance Commission..............            2005             n/a          13,888           7,000
    Federal Communications Commission...........            1991       such sums         115,794         322,035
    Federal Election Commission.................            1981           9,400           9,662          71,250
    Federal Trade Commission....................            1998         111,000         106,500         306,317
    General Services Administration:
        Government-wide Policy..................             n/a             n/a             n/a          53,499
        Operating Expenses......................             n/a             n/a             n/a          46,645
        Federal Citizen Services Fund...........             n/a             n/a             n/a          53,741
        Merit Systems Protection Board..........            2007       such sums          29,110          46,835
        National Historical Public Records                  2009          10,000          11,250           4,000
         Commission.............................
        Office of Government Ethics.............            2007       such sums          11,148          16,439
        Office of Special Counsel...............            2007       such sums          15,524          24,750
        Securities and Exchange Commission......            2015       2,250,000       1,500,000       1,896,507
----------------------------------------------------------------------------------------------------------------

                 Comparison With the Budget Resolution

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and Section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocations under section 302(b) of the Budget 
Act:

 BUDGETARY IMPACT OF FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 2018 (AS ORDER REPORTED ON 14
JULY 2017)--PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-
                                                 344, AS AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) Allocation             This Bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               Authority     Outlays     Authority     Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees: Subcommittee on Financial Services
    Mandatory...............................................  ...........  ...........       22,388    \1\22,380
    Discretionary...........................................  ...........  ...........       20,231       22,487
        General Purpose.....................................         n.a.         n.a.  ...........  ...........
        Overseas Contingency................................         n.a.         n.a.  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
n.a.: not applicable.

                      Five-Year Outlay Projections

    Pursuant to section 308(a)(1)(B) of the Congressional 
Budget Act of 1974, the following table contains five-year 
projections prepared by the Congressional Budget Office of 
outlays associated with the budget authority provided in the 
accompanying bill, as provided to the Committee by the 
Congressional Budget Office:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) Allocation             This Bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               Authority     Outlays     Authority     Outlays
----------------------------------------------------------------------------------------------------------------
Projection of outlays associated with the recommendation:
    2018....................................................         n.a.         n.a.         n.a.    \1\39,053
    2019....................................................         n.a.         n.a.         n.a.        1,758
    2020....................................................         n.a.         n.a.         n.a.       -1,623
    2021....................................................         n.a.         n.a.         n.a.       -1,890
    2022 and future years...................................         n.a.         n.a.         n.a.      -12,294
----------------------------------------------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.
n.a.: not applicable.

               Assistance to State and Local Governments

    Pursuant to section 308(a)(1)(C) of the Congressional 
Budget Act of 1974, the amounts of financial assistance to 
State and local governments is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                  302(b) Allocation             This Bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               Authority     Outlays     Authority     Outlays
----------------------------------------------------------------------------------------------------------------
Financial assistance to State and local governments for 2018         n.a.         n.a.          663       \1\160
----------------------------------------------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.
n.a.: not applicable.

                          Program Duplication

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                          Directed Rule Making

    The bill does not direct any rule making.

      Comparative Statement of New Budget (Obligational) Authority

    The following table provides a detailed summary, for each 
Department and agency, comparing the amounts recommended in the 
bill with amounts enacted for fiscal year 2017 and budget 
estimates presented for fiscal year 2018.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

JUDICIAL IMPROVEMENTS ACT OF 1990

           *       *       *       *       *       *       *

TITLE II--FEDERAL JUDGESHIPS

           *       *       *       *       *       *       *

SEC. 203. DISTRICT JUDGES FOR THE DISTRICT COURTS.

  (a) In General.--The President shall appoint, by and with the 
advice and consent of the Senate--
          (1) 1 additional district judge for the western 
        district of Arkansas;
          (2) 2 additional district judges for the northern 
        district of California;
          (3) 5 additional district judges for the central 
        district of California;
          (4) 1 additional district judge for the southern 
        district of California;
          (5) 2 additional district judges for the district of 
        Connecticut;
          (6) 2 additional district judges for the middle 
        district of Florida;
          (7) 1 additional district judge for the northern 
        district of Florida;
          (8) 1 additional district judge for the southern 
        district of Florida;
          (9) 1 additional district judge for the middle 
        district of Georgia;
          (10) 1 additional district judge for the northern 
        district of Illinois;
          (11) 1 additional district judge for the southern 
        district of Iowa;
          (12) 1 additional district judge for the western 
        district of Louisiana;
          (13) 1 additional district judge for the district of 
        Maine;
          (14) 1 additional district judge for the district of 
        Massachusetts;
          (15) 1 additional district judge for the southern 
        district of Mississippi;
          (16) 1 additional district judge for the eastern 
        district of Missouri;
          (17) 1 additional district judge for the district of 
        New Hampshire;
          (18) 3 additional district judges for the district of 
        New Jersey;
          (19) 1 additional district judge for the district of 
        New Mexico;
          (20) 1 additional district judge for the southern 
        district of New York;
          (21) 3 additional district judges for the eastern 
        district of New York;
          (22) 1 additional district judge for the middle 
        district of North Carolina;
          (23) 1 additional district judge for the southern 
        district of Ohio;
          (24) 1 additional district judge for the northern 
        district of Oklahoma;
          (25) 1 additional district judge for the western 
        district of Oklahoma;
          (26) 1 additional district judge for the district of 
        Oregon;
          (27) 3 additional district judges for the eastern 
        district of Pennsylvania;
          (28) 1 additional district judge for the middle 
        district of Pennsylvania;
          (29) 1 additional district judge for the district of 
        South Carolina;
          (30) 1 additional district judge for the eastern 
        district of Tennessee;
          (31) 1 additional district judge for the western 
        district of Tennessee;
          (32) 1 additional district judge for the middle 
        district of Tennessee;
          (33) 2 additional district judges for the northern 
        district of Texas;
          (34) 1 additional district judge for the eastern 
        district of Texas;
          (35) 5 additional district judges for the southern 
        district of Texas;
          (36) 3 additional district judges for the western 
        district of Texas;
          (37) 1 additional district judge for the district of 
        Utah;
          (38) 1 additional district judge for the eastern 
        district of Washington;
          (39) 1 additional district judge for the northern 
        district of West Virginia;
          (40) 1 additional district judge for the southern 
        district of West Virginia; and
          (41) 1 additional district judge for the district of 
        Wyoming.
  (b) Existing Judgeships.--(1) The existing district 
judgeships for the western district of Arkansas, the northern 
district of Illinois, the northern district of Indiana, the 
district of Massachusetts, the western district of New York, 
the eastern district of North Carolina, the northern district 
of Ohio, and the western district of Washington authorized by 
section 202(b) of the Bankruptcy Amendments and Federal 
Judgeship Act of 1984 (Public Law 98-353, 98 Stat. 347-348) 
shall, as of the effective date of this title, be authorized 
under section 133 of title 28, United States Code, and the 
incumbents in those offices shall hold the office under section 
133 of title 28, United States Code, as amended by this title.
  (2)(A) The existing 2 district judgeships for the eastern and 
western districts of Arkansas (provided by section 133 of title 
28, United States Code, as in effect on the day before the 
effective date of this title) shall be district judgeships for 
the eastern district of Arkansas only, and the incumbents of 
such judgeships shall hold the offices under section 133 of 
title 28, United States Code, as amended by this title.
  (B) The existing district judgeship for the northern and 
southern districts of Iowa (provided by section 133 of title 
28, United States Code, as in effect on the day before the 
effective date of this title) shall be a district judgeship for 
the northern district of Iowa only, and the incumbent of such 
judgeship shall hold the office under section 133 of title 28, 
United States Code, as amended by this title.
  (C) The existing district judgeship for the northern, 
eastern, and western districts of Oklahoma (provided by section 
133 of title 28, United States Code, as in effect on the day 
before the effective date of this title) and the occupant of 
which has his or her official duty station at Oklahoma City on 
the date of the enactment of this title, shall be a district 
judgeship for the western district of Oklahoma only, and the 
incumbent of such judgeship shall hold the office under section 
133 of title 28, United States Code, as amended by this title.
  (c) Temporary Judgeships.--The President shall appoint, by 
and with the advice and consent of the Senate--
          (1) 1 additional district judge for the eastern 
        district of California;
          (2) 1 additional district judge for the district of 
        Hawaii;
          (3) 1 additional district judge for the central 
        district of Illinois;
          (4) 1 additional district judge for the southern 
        district of Illinois;
          (5) 1 additional district judge for the district of 
        Kansas;
          (6) 1 additional district judge for the western 
        district of Michigan;
          (7) 1 additional district judge for the eastern 
        district of Missouri;
          (8) 1 additional district judge for the district of 
        Nebraska;
          (9) 1 additional district judge for the northern 
        district of New York;
          (10) 1 additional district judge for the northern 
        district of Ohio;
          (11) 1 additional district judge for the eastern 
        district of Pennsylvania; and
          (12) 1 additional district judge for the eastern 
        district of Virginia.
Except with respect to the district of Kansas, the western 
district of Michigan, the eastern district of Pennsylvania, the 
district of Hawaii, and the northern district of Ohio, the 
first vacancy in the office of district judge in each of the 
judicial districts named in this subsection, occurring 10 years 
or more after the confirmation date of the judge named to fill 
the temporary judgeship created by this subsection, shall not 
be filled. The first vacancy in the office of district judge in 
the district of Kansas occurring [26 years and 6 months] 27 
years and 6 months or more after the confirmation date of the 
judge named to fill the temporary judgeship created for such 
district under this subsection, shall not be filled. The first 
vacancy in the office of district judge in the western district 
of Michigan, occurring after December 1, 1995, shall not be 
filled. The first vacancy in the office of district judge in 
the eastern district of Pennsylvania, occurring 5 years or more 
after the confirmation date of the judge named to fill the 
temporary judgeship created for such district under this 
subsection, shall not be filled. The first vacancy in the 
office of district judge in the northern district of Ohio 
occurring 19 years or more after the confirmation date of the 
judge named to fill the temporary judgeship created under this 
subsection shall not be filled. The first vacancy in the office 
of the district judge in the district of Hawaii occurring 21 
years and 6 months or more after the confirmation date of the 
judge named to fill the temporary judgeship created under this 
subsection shall not be filled. For districts named in this 
subsection for which multiple judgeships are created by this 
Act, the last of those judgeships filled shall be the 
judgeships created under this section.

           *       *       *       *       *       *       *

                              ----------                              

TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY, 
THE DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 
                                  2006

 DIVISION A--TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, 
THE JUDICIARY, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2006

           *       *       *       *       *       *       *

TITLE IV--THE JUDICIARY

           *       *       *       *       *       *       *

  Sec. 406. The existing judgeship for the eastern district of 
Missouri authorized by section 203(c) of the Judicial 
Improvements Act of 1990 (Public Law 101-650, 104 Stat. 5089) 
as amended by Public Law 105-53, as of the effective date of 
this Act, shall be extended. The first vacancy in the office of 
district judge in this district occurring [24 years and 6 
months] 25 years and 6 months or more after the confirmation 
date of the judge named to fill the temporary judgeship created 
by section 203(c) shall not be filled.

           *       *       *       *       *       *       *

                              ----------                              

21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS AUTHORIZATION ACT

           *       *       *       *       *       *       *

     DIVISION A--21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS 
AUTHORIZATION ACT

           *       *       *       *       *       *       *

TITLE III--MISCELLANEOUS

           *       *       *       *       *       *       *

SEC. 312. ADDITIONAL FEDERAL JUDGESHIPS.

  (a) Permanent District Judges for the District Courts.--
          (1) In general.--The President shall appoint, by and 
        with the advice and consent of the Senate--
                  (A) 5 additional district judges for the 
                southern district of California;
                  (B) 1 additional district judge for the 
                western district of North Carolina; and
                  (C) 2 additional district judges for the 
                western district of Texas.
          (2) [Omitted--Amendatory]
  (b) District Judgeships for the Central and Southern 
Districts of Illinois, the Northern District of New York, and 
the Eastern District of Virginia.--
          (1) Conversion of temporary judgeships to permanent 
        judgeships.--The existing district judgeships for the 
        central district and the southern district of Illinois, 
        the northern district of New York, and the eastern 
        district of Virginia authorized by section 203(c) (3), 
        (4), (9), and (12) of the Judicial Improvements Act of 
        1990 (Public Law 101-650, 28 U.S.C. 133 note) shall be 
        authorized under section 133 of title 28, United States 
        Code, and the incumbents in such offices shall hold the 
        offices under section 133 of title 28, United States 
        Code (as amended by this section).
          (2) [Omitted--Amendatory]
          (3) Effective date.--With respect to the central or 
        southern district of Illinois, the northern district of 
        New York, or the eastern district of Virginia, this 
        subsection shall take effect on the earlier of--
                  (A) the date on which the first vacancy in 
                the office of district judge occurs in such 
                district; or
                  (B) July 15, 2003.
  (c) Temporary Judgeships.--
          (1) In general.--The President shall appoint, by and 
        with the advice and consent of the Senate--
                  (A) 1 additional district judge for the 
                northern district of Alabama;
                  (B) 1 additional judge for the district of 
                Arizona;
                  (C) 1 additional judge for the central 
                district of California;
                  (D) 1 additional judge for the southern 
                district of Florida;
                  (E) 1 additional district judge for the 
                district of New Mexico;
                  (F) 1 additional district judge for the 
                western district of North Carolina; and
                  (G) 1 additional district judge for the 
                eastern district of Texas.
          (2) Vacancies not filled.--The first vacancy in the 
        office of district judge in each of the offices of 
        district judge authorized by this subsection, except in 
        the case of the northern district of Alabama, the 
        central district of California, and the western 
        district of North Carolina, occurring [15 years] 16 
        years or more after the confirmation date of the judge 
        named to fill the temporary district judgeship created 
        in the applicable district by this subsection, shall 
        not be filled. The first vacancy in the office of 
        district judge in the district of Alabama occurring 15 
        years or more after the confirmation date of the judge 
        named to fill the temporary district judgeship created 
        in that district by this subsection, shall not be 
        filled. The first vacancy in the office of district 
        judge in the central district of California occurring 
        [14 years and 6 months] 15 years and six months or more 
        after the confirmation date of the judge named to fill 
        the temporary district judgeship created in that 
        district by this subsection, shall not be filled. The 
        first vacancy in the office of district judge in the 
        western district of North Carolina occurring [13 years] 
        14 years or more after the confirmation date of the 
        judge named to fill the temporary district judgeship 
        created in that district by this subsection, shall not 
        be filled.
          (3) Effective date.--This subsection shall take 
        effect on July 15, 2003.
  (d) Extension of Temporary Federal District Court Judgeship 
for the Northern District of Ohio.--
          (1)  In general.--[Omitted--Amendatory]
          (2) Effective date.--The amendments made by this 
        subsection shall take effect on the date of enactment 
        of this Act.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section, including such sums as may be necessary to provide 
appropriate space and facilities for the judicial positions 
created by this section.

           *       *       *       *       *       *       *

                              ----------                              

TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012

           *       *       *       *       *       *       *

SEC. 2. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES IN CERTAIN 
                    JUDICIAL DISTRICTS.

  (a) Temporary Office of Bankruptcy Judges Authorized by 
Public Law 109-8.--
          (1) Extensions.--The temporary office of bankruptcy 
        judges authorized for the following districts by 
        section 1223(b) of Public Law 109-8 (28 U.S.C. 152 
        note) are extended until the applicable vacancy 
        specified in paragraph (2) in the office of a 
        bankruptcy judge for the respective district occurs:
                  (A) The central district of California.
                  (B) The eastern district of California.
                  (C) The district of Delaware.
                  (D) The southern district of Florida.
                  (E) The southern district of Georgia.
                  (F) The district of Maryland.
                  (G) The eastern district of Michigan.
                  (H) The district of New Jersey.
                  (I) The northern district of New York.
                  (J) The eastern district of North Carolina.
                  (K) The eastern district of Pennsylvania.
                  (L) The middle district of Pennsylvania.
                  (M) The district of Puerto Rico.
                  (N) The district of South Carolina.
                  (O) The western district of Tennessee.
                  (P) The eastern district of Virginia.
                  (Q) The district of Nevada.
          (2) Vacancies.--
                  (A) Single vacancies.--Except as provided in 
                subparagraphs (B), (C), (D), (E), (F), (G), and 
                (H), the 1st vacancy in the office of a 
                bankruptcy judge for each district specified in 
                paragraph (1)--
                          (i) occurring more than 5 years after 
                        the date of the enactment of this Act, 
                        and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (B) Central district of california.--The 1st, 
                2d, and 3d vacancies in the office of a 
                bankruptcy judge for the central district of 
                California--
                          (i) occurring 5 years or more after 
                        the date of the enactment of this Act, 
                        and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (C) District of delaware.--The 1st, 2d, 3d, 
                and 4th vacancies in the office of a bankruptcy 
                judge for the district of Delaware--
                          (i) in the case of the 1st and 2d 
                        vacancies, occurring more than [6 
                        years] 7 years after the date of the 
                        enactment of this Act,
                          (ii) in the case of the 3d and 4th 
                        vacancies, occurring more than 5 years 
                        after the date of the enactment of this 
                        Act, and
                          (iii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (D) Southern district of florida.--The 1st 
                and 2d vacancies in the office of a bankruptcy 
                judge for the southern district of Florida--
                          (i) occurring more than [6 years] 7 
                        years after the date of the enactment 
                        of this Act, and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (E) District of maryland.--The 1st, 2d, and 
                3d vacancies in the office of a bankruptcy 
                judge for the district of Maryland--
                          (i) occurring more than 5 years after 
                        the date of the enactment of this Act, 
                        and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (F) Eastern district of michigan.--The 1st 
                vacancy in the office of a bankruptcy judge for 
                the eastern district of Michigan--
                          (i) occurring [6 years] 7 years or 
                        more after the date of the enactment of 
                        this Act, and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge, shall not be 
                        filled.
                  (G) District of puerto rico.--The 1st vacancy 
                in the office of a bankruptcy judge for the 
                district of Puerto Rico--
                          (i) occurring [6 years] 7 years or 
                        more after the date of the enactment of 
                        this Act, and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge, shall not be 
                        filled.
                  (H) Eastern district of virginia.--The 1st 
                vacancy in the office of a bankruptcy judge for 
                the eastern district of Virginia--
                          (i) occurring [6 years] 7 years or 
                        more after the date of the enactment of 
                        this Act, and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge, shall not be 
                        filled.
          (3) Applicability of other provisions.--Except as 
        provided in paragraphs (1) and (2), all other 
        provisions of section 1223(b) of Public Law 109-8 (28 
        U.S.C. 152 note) remain applicable to the temporary 
        office of bankruptcy judges referred to in paragraph 
        (1).
  (b) Temporary Office of Bankruptcy Judges Extended by Public 
Law 109-8.--
          (1) Extensions.--The temporary office of bankruptcy 
        judges authorized by section 3 of the Bankruptcy 
        Judgeship Act of 1992 (28 U.S.C. 152 note) and extended 
        by section 1223(c) of Public Law 109-8 (28 U.S.C. 152 
        note) for the district of Delaware, the district of 
        Puerto Rico, and the eastern district of Tennessee are 
        extended until the applicable vacancy specified in 
        paragraph (2) in the office of a bankruptcy judge for 
        the respective district occurs.
          (2) Vacancies.--
                  (A) District of delaware.--The 5th vacancy in 
                the office of a bankruptcy judge for the 
                district of Delaware--
                          (i) occurring more than 5 years after 
                        the date of the enactment of this Act, 
                        and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (B) District of puerto rico.--The 2d vacancy 
                in the office of a bankruptcy judge for the 
                district of Puerto Rico--
                          (i) occurring more than 5 years after 
                        the date of the enactment of this Act, 
                        and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
                  (C) Eastern district of tennessee.--The 1st 
                vacancy in the office of a bankruptcy judge for 
                the eastern district of Tennessee--
                          (i) occurring more than 5 years after 
                        the date of the enactment of this Act, 
                        and
                          (ii) resulting from the death, 
                        retirement, resignation, or removal of 
                        a bankruptcy judge,
                shall not be filled.
          (3) Applicability of other provisions.--Except as 
        provided in paragraphs (1) and (2), all other 
        provisions of section 3 of the Bankruptcy Judgeship Act 
        of 1992 (28 U.S.C. 152 note) and section 1223(c) of 
        Public Law 109-8 (28 U.S.C. 152 note) remain applicable 
        to the temporary office of bankruptcy judges referred 
        to in paragraph (1).
  (c) Temporary Office of the Bankruptcy Judge Authorized by 
Public Law 102-361 for the Middle District of North Carolina.--
          (1) Extension.--The temporary office of the 
        bankruptcy judge authorized by section 3 of the 
        Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note) 
        for the middle district of North Carolina is extended 
        until the vacancy specified in paragraph (2) occurs.
          (2) Vacancy.--The 1st vacancy in the office of a 
        bankruptcy judge for the middle district of North 
        Carolina--
                  (A) occurring more than 5 years after the 
                date of the enactment of this Act, and
                  (B) resulting from the death, retirement, 
                resignation, or removal of a bankruptcy judge,
        shall not be filled.
          (3) Applicability of other provisions.--Except as 
        provided in paragraphs (1) and (2), all other 
        provisions of section 3 of the Bankruptcy Judgeship Act 
        of 1992 (28 U.S.C. 152 note) remain applicable to the 
        temporary office of the bankruptcy judge referred to in 
        paragraph (1).

           *       *       *       *       *       *       *

                              ----------                              

FEDERAL ASSETS SALE AND TRANSFER ACT OF 2016

           *       *       *       *       *       *       *

SEC. 16. FUNDING.

  (a) Salaries and Expenses Account.--
          (1) Establishment.--There is established in the 
        Treasury of the United States an account to be known as 
        the ``Public Buildings Reform Board Salaries and 
        Expenses Account'' (in this subsection referred to as 
        the ``Account''). The Account shall be under the 
        custody and control of the Chairperson of the Board and 
        deposits in the Account shall remain available until 
        expended.
          (2) Necessary payments.--There shall be deposited 
        into the Account such amounts, as are provided in 
        appropriations Acts, for those necessary payments for 
        salaries and expenses to accomplish the administrative 
        needs of the Board.
  (b) Asset Proceeds and Space Management Fund.--
          [(1) Establishment.--There is established within the 
        Federal Buildings Fund established under section 592 of 
        title 40, United States Code, an account to be known as 
        the Public Buildings Reform Board--Asset Proceeds and 
        Space Management Fund (in this subsection referred to 
        as the ``Fund'').]
          (1) Establishment.--There is established in the 
        Treasury of the United States an account to be known as 
        the ``Public Buildings Reform Board - Asset Proceeds 
        and Space Management Fund'' (in this subsection 
        referred to as the ``Fund''). The Fund shall be under 
        the custody and control of the Administrator of General 
        Services and deposits in the Fund shall remain 
        available until expended.
          (2) Use of amounts.--Amounts in the Fund shall be 
        used solely for the purposes of carrying out actions 
        pursuant to the Board recommendations approved under 
        section 13.
          (3) Deposits.--The following amounts shall be 
        deposited into the Fund and made available for 
        obligation or expenditure only as provided in advance 
        in appropriations Acts (subject to section 3307 of 
        title 40, United States Code, to the extent an 
        appropriation normally covered by that section exceeds 
        $20,000,000) for the purposes specified:
                  (A) Such amounts as are provided in 
                appropriations Acts, to remain available until 
                expended, for the consolidation, co-location, 
                exchange, redevelopment, reconfiguration of 
                space, disposal, and other actions recommended 
                by the Board for Federal agencies.
                  (B) Amounts received from the sale of any 
                civilian real property action taken pursuant to 
                a recommendation of the Board.
          (4) Use of amounts to cover costs.--As provided in 
        appropriations Acts, amounts in the Fund may be made 
        available to cover necessary costs associated with 
        implementing the recommendations pursuant to section 
        14, including costs associated with--
                  (A) sales transactions;
                  (B) acquiring land, construction, 
                constructing replacement facilities, and 
                conducting advance planning and design as may 
                be required to transfer functions from a 
                Federal asset or property to another Federal 
                civilian property;
                  (C) co-location, redevelopment, disposal, and 
                reconfiguration of space; and
                  (D) other actions recommended by the Board 
                for Federal agencies.
  (c) Additional Requirement for Budget Contents.--The 
President shall transmit along with the President's budget 
submitted pursuant to section 1105 of title 31, United States 
Code, an estimate of proceeds that are the result of the 
Board's recommendations and the obligations and expenditures 
needed to support such recommendations.

           *       *       *       *       *       *       *

                              ----------                              

SMALL BUSINESS ACT

           *       *       *       *       *       *       *

  Sec. 7. (a) Loans to Small Business Concerns; Allowable 
Purposes; Qualified Business; Restrictions and Limitations.--
The Administration is empowered to the extent and in such 
amounts as provided in advance in appropriation Acts to make 
loans for plant acquisition, construction, conversion, or 
expansion, including the acquisition of land, material, 
supplies, equipment, and working capital, and to make loans to 
any qualified small business concern, including those owned by 
qualified Indian tribes, for purposes of this Act. Such 
financings may be made either directly or in cooperation with 
banks or other financial institutions through agreements to 
participate on an immediate or deferred (guaranteed) basis. 
These powers shall be subject, however, to the following 
restrictions, limitations, and provisions:
          (1) In general.--
                  (A) Credit elsewhere.--
                          (i) In general.--No financial 
                        assistance shall be extended pursuant 
                        to this subsection if the applicant can 
                        obtain credit elsewhere. No immediate 
                        participation may be purchased unless 
                        it is shown that a deferred 
                        participation is not available; and no 
                        direct financing may be made unless it 
                        is shown that a participation is not 
                        available.
                          (ii) Liquidity.--On and after October 
                        1, 2015, the Administrator may not 
                        guarantee a loan under this subsection 
                        if the lender determines that the 
                        borrower is unable to obtain credit 
                        elsewhere solely because the liquidity 
                        of the lender depends upon the 
                        guaranteed portion of the loan being 
                        sold on the secondary market.
                  (B) Background checks.--Prior to the approval 
                of any loan made pursuant to this subsection, 
                or section 503 of the Small Business Investment 
                Act of 1958, the Administrator may verify the 
                applicant's criminal background, or lack 
                thereof, through the best available means, 
                including, if possible, use of the National 
                Crime Information Center computer system at the 
                Federal Bureau of Investigation.
                  (C) Lending limits of lenders.--On and after 
                October 1, 2015, the Administrator may not 
                guarantee a loan under this subsection if the 
                sole purpose for requesting the guarantee is to 
                allow the lender to exceed the legal lending 
                limit of the lender.
          (2) Level of participation in guaranteed loans.--
                  (A) In general.--Except as provided in 
                subparagraphs (B), (D), and (E), in an 
                agreement to participate in a loan on a 
                deferred basis under this subsection (including 
                a loan made under the Preferred Lenders 
                Program), such participation by the 
                Administration shall be equal to--
                          (i) 75 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such 
                        balance exceeds $150,000; or
                          (ii) 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such 
                        balance is less than or equal to 
                        $150,000.
                  (B) Reduced participation upon request.--
                          (i) In general.--The guarantee 
                        percentage specified by subparagraph 
                        (A) for any loan under this subsection 
                        may be reduced upon the request of the 
                        participating lender.
                          (ii) Prohibition.--The Administration 
                        shall not use the guarantee percentage 
                        requested by a participating lender 
                        under clause (i) as a criterion for 
                        establishing priorities in approving 
                        loan guarantee requests under this 
                        subsection.
                  (C) Interest rate under preferred lenders 
                program.--
                          (i) In general.--The maximum interest 
                        rate for a loan guaranteed under the 
                        Preferred Lenders Program shall not 
                        exceed the maximum interest rate, as 
                        determined by the Administration, 
                        applicable to other loans guaranteed 
                        under this subsection.
                          (ii) Export-import bank lenders.--Any 
                        lender that is participating in the 
                        Delegated Authority Lender Program of 
                        the Export-Import Bank of the United 
                        States (or any successor to the 
                        Program) shall be eligible to 
                        participate in the Preferred Lenders 
                        Program.
                          (iii) Preferred lenders program 
                        defined.--For purposes of this 
                        subparagraph, the term ``Preferred 
                        Lenders Program'' means any program 
                        established by the Administrator, as 
                        authorized under the proviso in section 
                        5(b)(7), under which a written 
                        agreement between the lender and the 
                        Administration delegates to the 
                        lender--
                                  (I) complete authority to 
                                make and close loans with a 
                                guarantee from the 
                                Administration without 
                                obtaining the prior specific 
                                approval of the Administration; 
                                and
                                  (II) complete authority to 
                                service and liquidate such 
                                loans without obtaining the 
                                prior specific approval of the 
                                Administration for routine 
                                servicing and liquidation 
                                activities, but shall not take 
                                any actions creating an actual 
                                or apparent conflict of 
                                interest.
                  (D) Participation under export working 
                capital program.--In an agreement to 
                participate in a loan on a deferred basis under 
                the Export Working Capital Program established 
                pursuant to paragraph (14)(A), such 
                participation by the Administration shall be 90 
                percent.
                  (E) Participation in international trade 
                loan.--In an agreement to participate in a loan 
                on a deferred basis under paragraph (16), the 
                participation by the Administration may not 
                exceed 90 percent.
          (3) No loan shall be made under this subsection--
                  (A) if the total amount outstanding and 
                committed (by participation or otherwise) to 
                the borrower from the business loan and 
                investment fund established by this Act would 
                exceed $3,750,000 (or if the gross loan amount 
                would exceed $5,000,000), except as provided in 
                subparagraph (B);
                  (B) if the total amount outstanding and 
                committed (on a deferred basis) solely for the 
                purposes provided in paragraph (16) to the 
                borrower from the business loan and investment 
                fund established by this Act would exceed 
                $4,500,000 (or if the gross loan amount would 
                exceed $5,000,000), of which not more than 
                $4,000,000 may be used for working capital, 
                supplies, or financings under section 7(a)(14) 
                for export purposes; and
                  (C) if effected either directly or in 
                cooperation with banks or other lending 
                institutions through agreements to participate 
                on an immediate basis if the amount would 
                exceed $350,000.
          (4) Interest rates and prepayment charges.--
                  (A) Interest rates.--Notwithstanding the 
                provisions of the constitution of any State or 
                the laws of any State limiting the rate or 
                amount of interest which may be charged, taken, 
                received, or reserved, the maximum legal rate 
                of interest on any financing made on a deferred 
                basis pursuant to this subsection shall not 
                exceed a rate prescribed by the Administration, 
                and the rate of interest for the 
                Administration's share of any direct or 
                immediate participation loan shall not exceed 
                the current average market yield on outstanding 
                marketable obligations of the United States 
                with remaining periods to maturity comparable 
                to the average maturities of such loans and 
                adjusted to the nearest one-eighth of 1 per 
                centum, and an additional amount as determined 
                by the Administration, but not to exceed 1 per 
                centum per annum: Provided, That for those 
                loans to assist any public or private 
                organization for the handicapped or to assist 
                any handicapped individual as provided in 
                paragraph (10) of this subsection, the interest 
                rate shall be 3 per centum per annum.
                  (B) Payment of accrued interest.--
                          (i) In general.--Any bank or other 
                        lending institution making a claim for 
                        payment on the guaranteed portion of a 
                        loan made under this subsection shall 
                        be paid the accrued interest due on the 
                        loan from the earliest date of default 
                        to the date of payment of the claim at 
                        a rate not to exceed the rate of 
                        interest on the loan on the date of 
                        default, minus one percent.
                          (ii) Loans sold on secondary 
                        market.--If a loan described in clause 
                        (i) is sold on the secondary market, 
                        the amount of interest paid to a bank 
                        or other lending institution described 
                        in that clause from the earliest date 
                        of default to the date of payment of 
                        the claim shall be no more than the 
                        agreed upon rate, minus one percent.
                          (iii) Applicability.--Clauses (i) and 
                        (ii) shall not apply to loans made on 
                        or after October 1, 2000.
                  (C) Prepayment charges.--
                          (i) In general.--A borrower who 
                        prepays any loan guaranteed under this 
                        subsection shall remit to the 
                        Administration a subsidy recoupment fee 
                        calculated in accordance with clause 
                        (ii) if--
                                  (I) the loan is for a term of 
                                not less than 15 years;
                                  (II) the prepayment is 
                                voluntary;
                                  (III) the amount of 
                                prepayment in any calendar year 
                                is more than 25 percent of the 
                                outstanding balance of the 
                                loan; and
                                  (IV) the prepayment is made 
                                within the first 3 years after 
                                disbursement of the loan 
                                proceeds.
                          (ii) Subsidy recoupment fee.--The 
                        subsidy recoupment fee charged under 
                        clause (i) shall be--
                                  (I) 5 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the first year 
                                after disbursement;
                                  (II) 3 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the second year 
                                after disbursement; and
                                  (III) 1 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the third year 
                                after disbursement.
          (5) No such loans including renewals and extensions 
        thereof may be made for a period or periods exceeding 
        twenty-five years, except that such portion of a loan 
        made for the purpose of acquiring real property or 
        constructing, converting, or expanding facilities may 
        have a maturity of twenty-five years plus such 
        additional period as is estimated may be required to 
        complete such construction, conversion, or expansion.
          (6) All loans made under this subsection shall be of 
        such sound value or so secured as reasonably to assure 
        repayment: Provided, however, That--
                  (A) for loans to assist any public or private 
                organization or to assist any handicapped 
                individual as provided in paragraph (10) of 
                this subsection any reasonable doubt shall be 
                resolved in favor of the applicant;
                  (B) recognizing that greater risk may be 
                associated with loans for energy measures as 
                provided in paragraph (12) of this subsection, 
                factors in determining ``sound value'' shall 
                include, but not be limited to, quality of the 
                product or service; technical qualifications of 
                the applicant or his employees; sales 
                projections; and the financial status of the 
                business concern: Provided further, That such 
                status need not be as sound as that required 
                for general loans under this subsection; and
        On that portion of the loan used to refinance existing 
        indebtedness held by a bank or other lending 
        institution, the Administration shall limit the amount 
        of deferred participation to 80 per centum of the 
        amount of the loan at the time of disbursement: 
        Provided further, That any authority conferred by this 
        subparagraph on the Administration shall be exercised 
        solely by the Administration and shall not be delegated 
        to other than Administration personnel.
          (7) The Administration may defer payments on the 
        principal of such loans for a grace period and use such 
        other methods as it deems necessary and appropriate to 
        assure the successful establishment and operation of 
        such concern.
          (8) The Administration may make loans under this 
        subsection to small business concerns owned and 
        controlled by disabled veterans (as defined in section 
        4211(3) of title 38, United States Code).
          (9) The Administration may provide loans under this 
        subsection to finance residential or commercial 
        construction or rehabilitation for sale: Provided, 
        however, That such loans shall not be used primarily 
        for the acquisition of land.
          (10) The Administration may provide guaranteed loans 
        under this subsection to assist any public or private 
        organization for the handicapped or to assist any 
        handicapped individual, including service-disabled 
        veterans, in establishing, acquiring, or operating a 
        small business concern.
          (11) The Administration may provide loans under this 
        subsection to any small business concern, or to any 
        qualified person seeking to establish such a concern 
        when it determines that such loan will further the 
        policies established in section 2(c) of this Act, with 
        particular emphasis on the preservation or 
        establishment of small business concerns located in 
        urban or rural areas with high proportions of 
        unemployed or low-income individuals or owned by low-
        income individuals.
          (12)(A) The Administration may provide loans under 
        this subsection to assist any small business concern, 
        including start up, to enable such concern to design 
        architecturally or engineer, manufacture, distribute, 
        market, install, or service energy measures: Provided, 
        however, That such loan proceeds shall not be used 
        primarily for research and development.
  (b) The Administration may provide deferred participation 
loans under this subsection to finance the planning, design, or 
installation of pollution control facilities for the purposes 
set forth in section 404 of the Small Business Investment Act 
of 1958. Notwithstanding the limitation expressed in paragraph 
(3) of this subsection, a loan made under this paragraph may 
not result in a total amount outstanding and committed to a 
borrower from the business loan and investment fund of more 
than $1,000,000.
          (13) The Administration may provide financing under 
        this subsection to State and local development 
        companies for the purposes of, and subject to the 
        restrictions in, title V of the Small Business 
        Investment Act of 1958.
          (14) Export working capital program.--
                  (A) In general.--The Administrator may 
                provide extensions of credit, standby letters 
                of credit, revolving lines of credit for export 
                purposes, and other financing to enable small 
                business concerns, including small business 
                export trading companies and small business 
                export management companies, to develop foreign 
                markets. A bank or participating lending 
                institution may establish the rate of interest 
                on such financings as may be legal and 
                reasonable.
                  (B) Terms.--
                          (i) Loan amount.--The Administrator 
                        may not guarantee a loan under this 
                        paragraph of more than $5,000,000.
                          (ii) Fees.--
                                  (I) In general.--For a loan 
                                under this paragraph, the 
                                Administrator shall collect the 
                                fee assessed under paragraph 
                                (23) not more frequently than 
                                once each year.
                                  (II) Untapped credit.--The 
                                Administrator may not assess a 
                                fee on capital that is not 
                                accessed by the small business 
                                concern.
                  (C) Considerations.--When considering loan or 
                guarantee applications, the Administration 
                shall give weight to export-related benefits, 
                including opening new markets for United States 
                goods and services abroad and encouraging the 
                involvement of small businesses, including 
                agricultural concerns, in the export market.
                  (D) Marketing.--The Administrator shall 
                aggressively market its export financing 
                program to small businesses.
          (15)(A) The Administration may guarantee loans under 
        this subsection to qualified employee trusts with 
        respect to a small business concern for the purpose of 
        purchasing stock of the concern under a plan approved 
        by the Administrator which, when carried out, results 
        in the qualified employee trust owning at least 51 per 
        centum of the stock of the concern.
          (B) The plan requiring the Administrator's approval 
        under subparagraph (A) shall be submitted to the 
        Administration by the trustee of such trust with its 
        application for the guarantee. Such plan shall include 
        an agreement with the Administrator which is binding on 
        such trust and on the small business concern and which 
        provides that--
                  (i) not later than the date the loan 
                guaranteed under subparagraph (A) is repaid (or 
                as soon thereafter as is consistent with the 
                requirements of section 401(a) of the Internal 
                Revenue Code of 1954), at least 51 per centum 
                of the total stock of such concern shall be 
                allocated to the accounts of at least 51 per 
                centum of the employees of such concern who are 
                entitled to share in such allocation,
                  (ii) there will be periodic reviews of the 
                role in the management of such concern of 
                employees to whose accounts stock is allocated, 
                and
                  (iii) there will be adequate management to 
                assure management expertise and continuity.
          (C) In determining whether to guarantee any loan 
        under this paragraph, the individual business 
        experience or personal assets of employee-owners shall 
        not be used as criteria, except inasmuch as certain 
        employee-owners may assume managerial responsibilities, 
        in which case business experience may be considered.
          (D) For purposes of this paragraph, a corporation 
        which is controlled by any other person shall be 
        treated as a small business concern if such corporation 
        would, after the plan described in subparagraph (B) is 
        carried out, be treated as a small business concern.
          (E) The Administration shall compile a separate list 
        of applications for assistance under this paragraph, 
        indicating which applications were accepted and which 
        were denied, and shall report periodically to the 
        Congress on the status of employee-owned firms assisted 
        by the Administration.
          (16) International trade.--
                  (A) In general.--If the Administrator 
                determines that a loan guaranteed under this 
                subsection will allow an eligible small 
                business concern that is engaged in or 
                adversely affected by international trade to 
                improve its competitive position, the 
                Administrator may make such loan to assist such 
                concern--
                          (i) in the financing of the 
                        acquisition, construction, renovation, 
                        modernization, improvement, or 
                        expansion of productive facilities or 
                        equipment to be used in the United 
                        States in the production of goods and 
                        services involved in international 
                        trade;
                          (ii) in the refinancing of existing 
                        indebtedness that is not structured 
                        with reasonable terms and conditions, 
                        including any debt that qualifies for 
                        refinancing under any other provision 
                        of this subsection; or
                          (iii) by providing working capital.
                  (B) Security.--
                          (i) In general.--Except as provided 
                        in clause (ii), each loan made under 
                        this paragraph shall be secured by a 
                        first lien position or first mortgage 
                        on the property or equipment financed 
                        by the loan or on other assets of the 
                        small business concern.
                          (ii) Exception.--A loan under this 
                        paragraph may be secured by a second 
                        lien position on the property or 
                        equipment financed by the loan or on 
                        other assets of the small business 
                        concern, if the Administrator 
                        determines the lien provides adequate 
                        assurance of the payment of the loan.
                  (C) Engaged in international trade.--For 
                purposes of this paragraph, a small business 
                concern is engaged in international trade if, 
                as determined by the Administrator, the small 
                business concern is in a position to expand 
                existing export markets or develop new export 
                markets.
                  (D) Adversely affected by international 
                trade.--For purposes of this paragraph, a small 
                business concern is adversely affected by 
                international trade if, as determined by the 
                Administrator, the small business concern--
                          (i) is confronting increased 
                        competition with foreign firms in the 
                        relevant market; and
                          (ii) is injured by such competition.
                  (E) Findings by certain federal agencies.--
                For purposes of subparagraph (D)(ii) the 
                Administrator shall accept any finding of 
                injury by the International Trade Commission or 
                any finding of injury by the Secretary of 
                Commerce pursuant to chapter 3 of title II of 
                the Trade Act of 1974.
                  (F) List of export finance lenders.--
                          (i) Publication of list required.--
                        The Administrator shall publish an 
                        annual list of the banks and 
                        participating lending institutions 
                        that, during the 1-year period ending 
                        on the date of publication of the list, 
                        have made loans guaranteed by the 
                        Administration under--
                                  (I) this paragraph;
                                  (II) paragraph (14); or
                                  (III) paragraph (34).
                          (ii) Availability of list.--The 
                        Administrator shall--
                                  (I) post the list published 
                                under clause (i) on the website 
                                of the Administration; and
                                  (II) make the list published 
                                under clause (i) available, 
                                upon request, at each district 
                                office of the Administration.
          (17) The Administration shall authorize lending 
        institutions and other entities in addition to banks to 
        make loans authorized under this subsection.
          (18) Guarantee fees.--
                  (A) In general.--With respect to each loan 
                guaranteed under this subsection (other than a 
                loan that is repayable in 1 year or less), the 
                Administration shall collect a guarantee fee, 
                which shall be payable by the participating 
                lender, and may be charged to the borrower, as 
                follows:
                          (i) A guarantee fee not to exceed 2 
                        percent of the deferred participation 
                        share of a total loan amount that is 
                        not more than $150,000.
                          (ii) A guarantee fee not to exceed 3 
                        percent of the deferred participation 
                        share of a total loan amount that is 
                        more than $150,000, but not more than 
                        $700,000.
                          (iii) A guarantee fee not to exceed 
                        3.5 percent of the deferred 
                        participation share of a total loan 
                        amount that is more than $700,000.
                          (iv) In addition to the fee under 
                        clause (iii), a guarantee fee equal to 
                        0.25 percent of any portion of the 
                        deferred participation share that is 
                        more than $1,000,000.
                  (B) Retention of certain fees.--Lenders 
                participating in the programs established under 
                this subsection may retain not more than 25 
                percent of a fee collected under subparagraph 
                (A)(i).
          (19)(A) In addition to the Preferred Lenders Program 
        authorized by the proviso in section 5(b)(7), the 
        Administration is authorized to establish a Certified 
        Lenders Program for lenders who establish their 
        knowledge of Administration laws and regulations 
        concerning the guaranteed loan program and their 
        proficiency in program requirements. The designation of 
        a lender as a certified lender shall be suspended or 
        revoked at any time that the Administration determines 
        that the lender is not adhering to its rules and 
        regulations or that the loss experience of the lender 
        is excessive as compared to other lenders, but such 
        suspension or revocation shall not affect any 
        outstanding guarantee.
          (B) In order to encourage all lending institutions 
        and other entities making loans authorized under this 
        subsection to provide loans of $50,000 or less in 
        guarantees to eligible small business loan applicants, 
        the Administration shall develop and allow 
        participating lenders to solely utilize a uniform and 
        simplified loan form for such loans.
                  (C) Authority to liquidate loans.--
                          (i) In general.--The Administrator 
                        may permit lenders participating in the 
                        Certified Lenders Program to liquidate 
                        loans made with a guarantee from the 
                        Administration pursuant to a 
                        liquidation plan approved by the 
                        Administrator.
                          (ii) Automatic approval.--If the 
                        Administrator does not approve or deny 
                        a request for approval of a liquidation 
                        plan within 10 business days of the 
                        date on which the request is made (or 
                        with respect to any routine liquidation 
                        activity under such a plan, within 5 
                        business days) such request shall be 
                        deemed to be approved.
          (20)(A) The Administration is empowered to make loans 
        either directly or in cooperation with banks or other 
        financial institutions through agreements to 
        participate on an immediate or deferred (guaranteed) 
        basis to small business concerns eligible for 
        assistance under subsection (j)(10) and section 8(a). 
        Such assistance may be provided only if the 
        Administration determines that--
                  (i) the type and amount of such assistance 
                requested by such concern is not otherwise 
                available on reasonable terms from other 
                sources;
                  (ii) with such assistance such concern has a 
                reasonable prospect for operating soundly and 
                profitably within a reasonable period of time;
                  (iii) the proceeds of such assistance will be 
                used within a reasonable time for plant 
                construction, conversion, or expansion, 
                including the acquisition of equipment, 
                facilities, machinery, supplies, or material or 
                to supply such concern with working capital to 
                be used in the manufacture of articles, 
                equipment, supplies, or material for defense or 
                civilian production or as may be necessary to 
                insure a well-balanced national economy; and
                  (iv) such assistance is of such sound value 
                as reasonably to assure that the terms under 
                which it is provided will not be breached by 
                the small business concern.
          (B)(i) No loan shall be made under this paragraph if 
        the total amount outstanding and committed (by 
        participation or otherwise) to the borrower would 
        exceed $750,000.
          (ii) Subject to the provisions of clause (i), in 
        agreements to participate in loans on a deferred 
        (guaranteed) basis, participation by the Administration 
        shall be not less than 85 per centum of the balance of 
        the financing outstanding at the time of disbursement.
          (iii) The rate of interest on financings made on a 
        deferred (guaranteed) basis shall be legal and 
        reasonable.
          (iv) Financings made pursuant to this paragraph shall 
        be subject to the following limitations:
                  (I) No immediate participation may be 
                purchased unless it is shown that a deferred 
                participation is not available.
                  (II) No direct financing may be made unless 
                it is shown that a participation is 
                unavailable.
          (C) A direct loan or the Administration's share of an 
        immediate participation loan made pursuant to this 
        paragraph shall be any secured debt instrument--
                  (i) that is subordinated by its terms to all 
                other borrowings of the issuer;
                  (ii) the rate of interest on which shall not 
                exceed the current average market yield on 
                outstanding marketable obligations of the 
                United States with remaining periods to 
                maturity comparable to the average maturities 
                of such loan and adjusted to the nearest one-
                eighth of 1 per centum;
                  (iii) the term of which is not more than 
                twenty-five years; and
                  (iv) the principal on which is amortized at 
                such rate as may be deemed appropriate by the 
                Administration, and the interest on which is 
                payable not less often than annually.
  (21)(A) The Administration may make loans on a guaranteed 
basis under the authority of this subsection--
          (i) to a small business concern that has been (or can 
        reasonably be expected to be) detrimentally affected 
        by--
                  (I) the closure (or substantial reduction) of 
                a Department of Defense installation; or
                  (II) the termination (or substantial 
                reduction) of a Department of Defense program 
                on which such small business was a prime 
                contractor or subcontractor (or supplier) at 
                any tier; or
          (ii) to a qualified individual or a veteran seeking 
        to establish (or acquire) and operate a small business 
        concern.
  (B) Recognizing that greater risk may be associated with a 
loan to a small business concern described in subparagraph 
(A)(i), any reasonable doubts concerning the firm's proposed 
business plan for transition to nondefense-related markets 
shall be resolved in favor of the loan applicant when making 
any determination regarding the sound value of the proposed 
loan in accordance with paragraph (6).
  (C) Loans pursuant to this paragraph shall be authorized in 
such amounts as provided in advance in appropriation Acts for 
the purposes of loans under this paragraph.
  (D) For purposes of this paragraph a qualified individual 
is--
          (i) a member of the Armed Forces of the United 
        States, honorably discharged from active duty 
        involuntarily or pursuant to a program providing 
        bonuses or other inducements to encourage voluntary 
        separation or early retirement;
          (ii) a civilian employee of the Department of Defense 
        involuntarily separated from Federal service or retired 
        pursuant to a program offering inducements to encourage 
        early retirement; or
          (iii) an employee of a prime contractor, 
        subcontractor, or supplier at any tier of a Department 
        of Defense program whose employment is involuntarily 
        terminated (or voluntarily terminated pursuant to a 
        program offering inducements to encourage voluntary 
        separation or early retirement) due to the termination 
        (or substantial reduction) of a Department of Defense 
        program.
          (E) Job creation and community benefit.--In providing 
        assistance under this paragraph, the Administration 
        shall develop procedures to ensure, to the maximum 
        extent practicable, that such assistance is used for 
        projects that--
                  (i) have the greatest potential for--
                          (I) creating new jobs for individuals 
                        whose employment is involuntarily 
                        terminated due to reductions in Federal 
                        defense expenditures; or
                          (II) preventing the loss of jobs by 
                        employees of small business concerns 
                        described in subparagraph (A)(i); and
                  (ii) have substantial potential for 
                stimulating new economic activity in 
                communities most affected by reductions in 
                Federal defense expenditures.
          (22) The Administration is authorized to permit 
        participating lenders to impose and collect a 
        reasonable penalty fee on late payments of loans 
        guaranteed under this subsection in an amount not to 
        exceed 5 percent of the monthly loan payment per month 
        plus interest.
          (23) Yearly fee.--
                  (A) In general.--With respect to each loan 
                approved under this subsection, the 
                Administration shall assess, collect, and 
                retain a fee, not to exceed 0.55 percent per 
                year of the outstanding balance of the deferred 
                participation share of the loan, in an amount 
                established once annually by the Administration 
                in the Administration's annual budget request 
                to Congress, as necessary to reduce to zero the 
                cost to the Administration of making guarantees 
                under this subsection. As used in this 
                paragraph, the term ``cost'' has the meaning 
                given that term in section 502 of the Federal 
                Credit Reform Act of 1990 (2 U.S.C. 661a).
                  (B) Payer.--The yearly fee assessed under 
                subparagraph (A) shall be payable by the 
                participating lender and shall not be charged 
                to the borrower.
                  (C) Lowering of borrower fees.--If the 
                Administration determines that fees paid by 
                lenders and by small business borrowers for 
                guarantees under this subsection may be 
                reduced, consistent with reducing to zero the 
                cost to the Administration of making such 
                guarantees--
                          (i) the Administration shall first 
                        consider reducing fees paid by small 
                        business borrowers under clauses (i) 
                        through (iii) of paragraph (18)(A), to 
                        the maximum extent possible; and
                          (ii) fees paid by small business 
                        borrowers shall not be increased above 
                        the levels in effect on the date of 
                        enactment of this subparagraph.
          (24) Notification requirement.--The Administration 
        shall notify the Committees on Small Business of the 
        Senate and the House of Representatives not later than 
        15 days before making any significant policy or 
        administrative change affecting the operation of the 
        loan program under this subsection.
          (25) Limitation on conducting pilot projects.--
                  (A) In general.--Not more than 10 percent of 
                the total number of loans guaranteed in any 
                fiscal year under this subsection may be 
                awarded as part of a pilot program which is 
                commenced by the Administrator on or after 
                October 1, 1996.
                  (B) Pilot program defined.--In this 
                paragraph, the term ``pilot program'' means any 
                lending program initiative, project, 
                innovation, or other activity not specifically 
                authorized by law.
                  (C) Low documentation loan program.--The 
                Administrator may carry out the low 
                documentation loan program for loans of 
                $100,000 or less only through lenders with 
                significant experience in making small business 
                loans. Not later than 90 days after the date of 
                enactment of this subsection, the Administrator 
                shall promulgate regulations defining the 
                experience necessary for participation as a 
                lender in the low documentation loan program.
          (26) Calculation of subsidy rate.--All fees, 
        interest, and profits received and retained by the 
        Administration under this subsection shall be included 
        in the calculations made by the Director of the Office 
        of Management and Budget to offset the cost (as that 
        term is defined in section 502 of the Federal Credit 
        Reform Act of 1990) to the Administration of purchasing 
        and guaranteeing loans under this Act.
          (28) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the 
        Administration, a borrower may permanently lease to one 
        or more tenants not more than 20 percent of any 
        property constructed with the proceeds of a loan 
        guaranteed under this subsection, if the borrower 
        permanently occupies and uses not less than 60 percent 
        of the total business space in the property.
          (29) Real estate appraisals.--With respect to a loan 
        under this subsection that is secured by commercial 
        real property, an appraisal of such property by a State 
        licensed or certified appraiser--
                  (A) shall be required by the Administration 
                in connection with any such loan for more than 
                $250,000; or
                  (B) may be required by the Administration or 
                the lender in connection with any such loan for 
                $250,000 or less, if such appraisal is 
                necessary for appropriate evaluation of 
                creditworthiness.
          (30) Ownership requirements.--Ownership requirements 
        to determine the eligibility of a small business 
        concern that applies for assistance under any credit 
        program under this Act shall be determined without 
        regard to any ownership interest of a spouse arising 
        solely from the application of the community property 
        laws of a State for purposes of determining marital 
        interests.
          (31) Express loans.--
                  (A) Definitions.--As used in this paragraph:
                          (i) The term ``disaster area'' means 
                        the area for which the President has 
                        declared a major disaster, during the 
                        5-year period beginning on the date of 
                        the declaration.
                          (ii) The term ``express lender'' 
                        means any lender authorized by the 
                        Administration to participate in the 
                        Express Loan Program.
                          (iii) The term ``express loan'' means 
                        any loan made pursuant to this 
                        paragraph in which a lender utilizes to 
                        the maximum extent practicable its own 
                        loan analyses, procedures, and 
                        documentation.
                          (iv) The term ``Express Loan 
                        Program'' means the program for express 
                        loans established by the Administration 
                        under paragraph (25)(B), as in 
                        existence on April 5, 2004, with a 
                        guaranty rate of not more than 50 
                        percent.
                  (B) Restriction to express lender.--The 
                authority to make an express loan shall be 
                limited to those lenders deemed qualified to 
                make such loans by the Administration. 
                Designation as an express lender for purposes 
                of making an express loan shall not prohibit 
                such lender from taking any other action 
                authorized by the Administration for that 
                lender pursuant to this subsection.
                  (C) Grandfathering of existing lenders.--Any 
                express lender shall retain such designation 
                unless the Administration determines that the 
                express lender has violated the law or 
                regulations promulgated by the Administration 
                or modifies the requirements to be an express 
                lender and the lender no longer satisfies those 
                requirements.
                  (D) Maximum loan amount.--The maximum loan 
                amount under the Express Loan Program is 
                $350,000.
                  (E) Option to participate.--Except as 
                otherwise provided in this paragraph, the 
                Administration shall take no regulatory, 
                policy, or administrative action, without 
                regard to whether such action requires 
                notification pursuant to paragraph (24), that 
                has the effect of requiring a lender to make an 
                express loan pursuant to subparagraph (D).
                  (F) Express loans for renewable energy and 
                energy efficiency.--
                          (i) Definitions.--In this 
                        subparagraph--
                                  (I) the term ``biomass''--
                                          (aa) means any 
                                        organic material that 
                                        is available on a 
                                        renewable or recurring 
                                        basis, including--
                                                  (AA) 
                                                agricultural 
                                                crops;
                                                  (BB) trees 
                                                grown for 
                                                energy 
                                                production;
                                                  (CC) wood 
                                                waste and wood 
                                                residues;
                                                  (DD) plants 
                                                (including 
                                                aquatic plants 
                                                and grasses);
                                                  (EE) 
                                                residues;
                                                  (FF) fibers;
                                                  (GG) animal 
                                                wastes and 
                                                other waste 
                                                materials; and
                                                  (HH) fats, 
                                                oils, and 
                                                greases 
                                                (including 
                                                recycled fats, 
                                                oils, and 
                                                greases); and
                                          (bb) does not 
                                        include--
                                                  (AA) paper 
                                                that is 
                                                commonly 
                                                recycled; or
                                                  (BB) 
                                                unsegregated 
                                                solid waste;
                                  (II) the term ``energy 
                                efficiency project'' means the 
                                installation or upgrading of 
                                equipment that results in a 
                                significant reduction in energy 
                                usage; and
                                  (III) the term ``renewable 
                                energy system'' means a system 
                                of energy derived from--
                                          (aa) a wind, solar, 
                                        biomass (including 
                                        biodiesel), or 
                                        geothermal source; or
                                          (bb) hydrogen derived 
                                        from biomass or water 
                                        using an energy source 
                                        described in item (aa).
                          (ii) Loans.--The Administrator may 
                        make a loan under the Express Loan 
                        Program for the purpose of--
                                  (I) purchasing a renewable 
                                energy system; or
                                  (II) carrying out an energy 
                                efficiency project for a small 
                                business concern.
                  (G) Guarantee fee waiver for veterans.--
                          (i) Guarantee fee waiver.--The 
                        Administrator may not collect a 
                        guarantee fee described in paragraph 
                        (18) in connection with a loan made 
                        under this paragraph to a veteran or 
                        spouse of a veteran on or after October 
                        1, 2015.
                          (ii) Exception.--If the President's 
                        budget for the upcoming fiscal year, 
                        submitted to Congress pursuant to 
                        section 1105(a) of title 31, United 
                        States Code, includes a cost for the 
                        program established under this 
                        subsection that is above zero, the 
                        requirements of clause (i) shall not 
                        apply to loans made during such 
                        upcoming fiscal year.
                          (iii) Definition.--In this 
                        subparagraph, the term ``veteran or 
                        spouse of a veteran'' means--
                                  (I) a veteran, as defined in 
                                section 3(q)(4);
                                  (II) an individual who is 
                                eligible to participate in the 
                                Transition Assistance Program 
                                established under section 1144 
                                of title 10, United States 
                                Code;
                                  (III) a member of a reserve 
                                component of the Armed Forces 
                                named in section 10101 of title 
                                10, United States Code;
                                  (IV) the spouse of an 
                                individual described in 
                                subclause (I), (II), or (III); 
                                or
                                  (V) the surviving spouse (as 
                                defined in section 101 of title 
                                38, United States Code) of an 
                                individual described in 
                                subclause (I), (II), or (III) 
                                who died while serving on 
                                active duty or as a result of a 
                                disability that is service-
                                connected (as defined in such 
                                section).
                  (H) Recovery opportunity loans.--
                          (i) In general.--The Administrator 
                        may guarantee an express loan to a 
                        small business concern located in a 
                        disaster area in accordance with this 
                        subparagraph.
                          (ii) Maximums.--For a loan guaranteed 
                        under clause (i)--
                                  (I) the maximum loan amount 
                                is $150,000; and
                                  (II) the guarantee rate shall 
                                be not more than 85 percent.
                          (iii) Overall cap.--A loan guaranteed 
                        under clause (i) shall not be counted 
                        in determining the amount of loans made 
                        to a borrower for purposes of 
                        subparagraph (D).
                          (iv) Operations.--A small business 
                        concern receiving a loan guaranteed 
                        under clause (i) shall certify that the 
                        small business concern was in operation 
                        on the date on which the applicable 
                        major disaster occurred as a condition 
                        of receiving the loan.
                          (v) Repayment ability.--A loan 
                        guaranteed under clause (i) may only be 
                        made to a small business concern that 
                        demonstrates, to the satisfaction of 
                        the Administrator, sufficient capacity 
                        to repay the loan.
                          (vi) Timing of payment of 
                        guarantees.--
                                  (I) In general.--Not later 
                                than 90 days after the date on 
                                which a request for purchase is 
                                filed with the Administrator, 
                                the Administrator shall 
                                determine whether to pay the 
                                guaranteed portion of the loan.
                                  (II) Recapture.--
                                Notwithstanding any other 
                                provision of law, unless there 
                                is a subsequent finding of 
                                fraud by a court of competent 
                                jurisdiction relating to a loan 
                                guaranteed under clause (i), on 
                                and after the date that is 6 
                                months after the date on which 
                                the Administrator determines to 
                                pay the guaranteed portion of 
                                the loan, the Administrator may 
                                not attempt to recapture the 
                                paid guarantee.
                          (vii) Fees.--
                                  (I) In general.--Unless the 
                                Administrator has waived the 
                                guarantee fee that would 
                                otherwise be collected by the 
                                Administrator under paragraph 
                                (18) for a loan guaranteed 
                                under clause (i), and except as 
                                provided in subclause (II), the 
                                guarantee fee for the loan 
                                shall be equal to the guarantee 
                                fee that the Administrator 
                                would collect if the guarantee 
                                rate for the loan was 50 
                                percent.
                                  (II) Exception.--Subclause 
                                (I) shall not apply if the cost 
                                of carrying out the program 
                                under this subsection in a 
                                fiscal year is more than zero 
                                and such cost is directly 
                                attributable to the cost of 
                                guaranteeing loans under clause 
                                (i).
                          (viii) Rules.--Not later than 270 
                        days after the date of enactment of 
                        this subparagraph, the Administrator 
                        shall promulgate rules to carry out 
                        this subparagraph.
          (32) Loans for energy efficient technologies.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``cost'' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          (ii) the term ``covered energy 
                        efficiency loan'' means a loan--
                                  (I) made under this 
                                subsection; and
                                  (II) the proceeds of which 
                                are used to purchase energy 
                                efficient designs, equipment, 
                                or fixtures, or to reduce the 
                                energy consumption of the 
                                borrower by 10 percent or more; 
                                and
                          (iii) the term ``pilot program'' 
                        means the pilot program established 
                        under subparagraph (B)
                  (B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for covered energy efficiency loans.
                  (C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  (D) Maximum participation.--A covered energy 
                efficiency loan shall include the maximum 
                participation levels by the Administrator 
                permitted for loans made under this subsection.
                  (E) Fees.--
                          (i) In general.--The fee on a covered 
                        energy efficiency loan shall be equal 
                        to 50 percent of the fee otherwise 
                        applicable to that loan under paragraph 
                        (18).
                          (ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  (I) for the fiscal year 
                                before that fiscal year, the 
                                annual rate of default of 
                                covered energy efficiency loans 
                                exceeds that of loans made 
                                under this subsection that are 
                                not covered energy efficiency 
                                loans;
                                  (II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making covered energy 
                                efficiency loans; and
                                  (III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          (iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  (I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  (II) shall reinstate the fee 
                                reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          (iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        covered energy efficiency loans as a 
                        direct result of the pilot program.
                  (F) GAO report.--
                          (i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          (ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                  (I) the number of covered 
                                energy efficiency loans for 
                                which fees were reduced under 
                                the pilot program;
                                  (II) a description of the 
                                energy efficiency savings with 
                                the pilot program;
                                  (III) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  (IV) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  (V) recommendations for 
                                improving the pilot program.
          (33) Increased veteran participation program.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``cost'' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          (ii) the term ``pilot program'' means 
                        the pilot program established under 
                        subparagraph (B); and
                          (iii) the term ``veteran 
                        participation loan'' means a loan made 
                        under this subsection to a small 
                        business concern owned and controlled 
                        by veterans of the Armed Forces or 
                        members of the reserve components of 
                        the Armed Forces.
                  (B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for veteran participation loans.
                  (C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  (D) Maximum participation.--A veteran 
                participation loan shall include the maximum 
                participation levels by the Administrator 
                permitted for loans made under this subsection.
                  (E) Fees.--
                          (i) In general.--The fee on a veteran 
                        participation loan shall be equal to 50 
                        percent of the fee otherwise applicable 
                        to that loan under paragraph (18).
                          (ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  (I) for the fiscal year 
                                before that fiscal year, the 
                                annual estimated rate of 
                                default of veteran 
                                participation loans exceeds 
                                that of loans made under this 
                                subsection that are not veteran 
                                participation loans;
                                  (II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making veteran 
                                participation loans; and
                                  (III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          (iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  (I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  (II) shall reinstate the fee 
                                reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          (iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        veteran participation loans as a direct 
                        result of the pilot program.
                  (F) GAO report.--
                          (i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          (ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                  (I) the number of veteran 
                                participation loans for which 
                                fees were reduced under the 
                                pilot program;
                                  (II) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  (III) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  (IV) recommendations for 
                                improving the pilot program.
          (34) Export express program.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``export development 
                        activity'' includes--
                                  (I) obtaining a standby 
                                letter of credit when required 
                                as a bid bond, performance 
                                bond, or advance payment 
                                guarantee;
                                  (II) participation in a trade 
                                show that takes place outside 
                                the United States;
                                  (III) translation of product 
                                brochures or catalogues for use 
                                in markets outside the United 
                                States;
                                  (IV) obtaining a general line 
                                of credit for export purposes;
                                  (V) performing a service 
                                contract from buyers located 
                                outside the United States;
                                  (VI) obtaining transaction-
                                specific financing associated 
                                with completing export orders;
                                  (VII) purchasing real estate 
                                or equipment to be used in the 
                                production of goods or services 
                                for export;
                                  (VIII) providing term loans 
                                or other financing to enable a 
                                small business concern, 
                                including an export trading 
                                company and an export 
                                management company, to develop 
                                a market outside the United 
                                States; and
                                  (IX) acquiring, constructing, 
                                renovating, modernizing, 
                                improving, or expanding a 
                                production facility or 
                                equipment to be used in the 
                                United States in the production 
                                of goods or services for 
                                export; and
                          (ii) the term ``express loan'' means 
                        a loan in which a lender uses to the 
                        maximum extent practicable the loan 
                        analyses, procedures, and documentation 
                        of the lender to provide expedited 
                        processing of the loan application.
                  (B) Authority.--The Administrator may 
                guarantee the timely payment of an express loan 
                to a small business concern made for an export 
                development activity.
                  (C) Level of participation.--
                          (i) Maximum amount.--The maximum 
                        amount of an express loan guaranteed 
                        under this paragraph shall be $500,000.
                          (ii) Percentage.--For an express loan 
                        guaranteed under this paragraph, the 
                        Administrator shall guarantee--
                                  (I) 90 percent of a loan that 
                                is not more than $350,000; and
                                  (II) 75 percent of a loan 
                                that is more than $350,000 and 
                                not more than $500,000.
  (b) Except as to agricultural enterprises as defined in 
section 18(b)(1) of this Act, the Administration also is 
empowered to the extent and in such amounts as provided in 
advance in appropriation Acts--
          (1)(A) to make such loans (either directly or in 
        cooperation with banks or other lending institutions 
        through agreements to participate on an immediate or 
        deferred (guaranteed) basis) as the Administration may 
        determine to be necessary or appropriate to repair, 
        rehabilitate or replace property, real or personal, 
        damaged or destroyed by or as a result of natural or 
        other disasters: Provided, That such damage or 
        destruction is not compensated for by insurance or 
        otherwise: And provided further, That the 
        Administration may increase the amount of the loan by 
        up to an additional 20 per centum of the aggregate 
        costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise) if it 
        determines such increase to be necessary or appropriate 
        in order to protect the damaged or destroyed property 
        from possible future disasters by taking mitigating 
        measures, including--
                  (i) construction of retaining walls and sea 
                walls;
                  (ii) grading and contouring land; and
                  (iii) relocating utilities and modifying 
                structures, including construction of a safe 
                room or similar storm shelter designed to 
                protect property and occupants from tornadoes 
                or other natural disasters, if such safe room 
                or similar storm shelter is constructed in 
                accordance with applicable standards issued by 
                the Federal Emergency Management Agency;
          (B) to refinance any mortgage or other lien against a 
        totally destroyed or substantially damaged home or 
        business concern: Provided, That no loan or guarantee 
        shall be extended unless the Administration finds that 
        (i) the applicant is not able to obtain credit 
        elsewhere; (ii) such property is to be repaired, 
        rehabilitated, or replaced; (iii) the amount refinanced 
        shall not exceed the amount of physical loss sustained; 
        and (iv) such amount shall be reduced to the extent 
        such mortgage or lien is satisfied by insurance or 
        otherwise; and
          (C) during fiscal years 2000 through 2004, to 
        establish a predisaster mitigation program to make such 
        loans (either directly or in cooperation with banks or 
        other lending institutions through agreements to 
        participate on an immediate or deferred (guaranteed) 
        basis), as the Administrator may determine to be 
        necessary or appropriate, to enable small businesses to 
        use mitigation techniques in support of a formal 
        mitigation program established by the Federal Emergency 
        Management Agency, except that no loan or guarantee may 
        be extended to a small business under this subparagraph 
        unless the Administration finds that the small business 
        is otherwise unable to obtain credit for the purposes 
        described in this subparagraph;
          (2) to make sure loans (either directly or in 
        cooperation with banks or other lending institutions 
        through agreements to participate on an immediate or 
        deferred (guaranteed) basis) as the Administration may 
        determine to be necessary or appropriate to any small 
        business concern, private nonprofit organization, or 
        small agricultural cooperative located in an area 
        affected by a disaster, (including drought), with 
        respect to both farm-related and nonfarm-related small 
        business concerns, if the Administration determines 
        that the concern, the organization, or the cooperative 
        has suffered a substantial economic injury as a result 
        of such disaster and if such disaster constitutes--
                  (A) a major disaster, as determined by the 
                President under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.); or
                  (B) a natural disaster, as determined by the 
                Secretary of Agriculture pursuant to section 
                321 of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1961), in which case, 
                assistance under this paragraph may be provided 
                to farm-related and nonfarm-related small 
                business concerns, subject to the other 
                applicable requirements of this paragraph; or
                  (C) a disaster, as determined by the 
                Administrator of the Small Business 
                Administration; or
                  (D) if no disaster declaration has been 
                issued pursuant to subparagraph (A), (B), or 
                (C), the Governor of a State in which a 
                disaster has occurred may certify to the Small 
                Business Administration that small business 
                concerns, private nonprofit organizations, or 
                small agricultural cooperatives (1) have 
                suffered economic injury as a result of such 
                disaster, and (2) are in need of financial 
                assistance which is not available on reasonable 
                terms in the disaster stricken area. Not later 
                than 30 days after the date of receipt of such 
                certification by a Governor of a State, the 
                Administration shall respond in writing to that 
                Governor on its determination and the reasons 
                therefore, and may then make such loans as 
                would have been available under this paragraph 
                if a disaster declaration had been issued.
         Provided, That no loan or guarantee shall be extended 
        pursuant to this paragraph (2) unless the 
        Administration finds that the applicant is not able to 
        obtain credit elsewhere.
          (3)(A) In this paragraph--
                  (i) the term ``essential employee'' means an 
                individual who is employed by a small business 
                concern and whose managerial or technical 
                expertise is critical to the successful day-to-
                day operations of that small business concern;
                  (ii) the term ``period of military conflict'' 
                has the meaning given the term in subsection 
                (n)(1); and
                  (iii) the term ``substantial economic 
                injury'' means an economic harm to a business 
                concern that results in the inability of the 
                business concern--
                          (I) to meet its obligations as they 
                        mature;
                          (II) to pay its ordinary and 
                        necessary operating expenses; or
                          (III) to market, produce, or provide 
                        a product or service ordinarily 
                        marketed, produced, or provided by the 
                        business concern.
          (B) The Administration may make such disaster loans 
        (either directly or in cooperation with banks or other 
        lending institutions through agreements to participate 
        on an immediate or deferred basis) to assist a small 
        business concern that has suffered or that is likely to 
        suffer substantial economic injury as the result of an 
        essential employee of such small business concern being 
        ordered to active military duty during a period of 
        military conflict.
          (C) A small business concern described in 
        subparagraph (B) shall be eligible to apply for 
        assistance under this paragraph during the period 
        beginning on the date on which the essential employee 
        is ordered to active duty and ending on the date that 
        is 1 year after the date on which such essential 
        employee is discharged or released from active duty. 
        The Administrator may, when appropriate (as determined 
        by the Administrator), extend the ending date specified 
        in the preceding sentence by not more than 1 year.
          (D) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as 
        economic injury loans under paragraph (2).
          (E) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred basis, if the total amount 
        outstanding and committed to the borrower under this 
        subsection would exceed $1,500,000, unless such 
        applicant constitutes, or have become due to changed 
        economic circumstances, a major source of employment in 
        its surrounding area, as determined by the 
        Administration, in which case the Administration, in 
        its discretion, may waive the $1,500,000 limitation.
          (F) For purposes of assistance under this paragraph, 
        no declaration of a disaster area shall be required.
                  (G)(i) Notwithstanding any other provision of 
                law, the Administrator may make a loan under 
                this paragraph of not more than $50,000 without 
                collateral.
                  (ii) The Administrator may defer payment of 
                principal and interest on a loan described in 
                clause (i) during the longer of--
                          (I) the 1-year period beginning on 
                        the date of the initial disbursement of 
                        the loan; and
                          (II) the period during which the 
                        relevant essential employee is on 
                        active duty.
                  (H) The Administrator shall give priority to 
                any application for a loan under this paragraph 
                and shall process and make a determination 
                regarding such applications prior to processing 
                or making a determination on other loan 
                applications under this subsection, on a 
                rolling basis.
          (4) Coordination with fema.--
                  (A) In general.--Notwithstanding any other 
                provision of law, for any disaster declared 
                under this subsection or major disaster 
                (including any major disaster relating to which 
                the Administrator declares eligibility for 
                additional disaster assistance under paragraph 
                (9)), the Administrator, in consultation with 
                the Administrator of the Federal Emergency 
                Management Agency, shall ensure, to the maximum 
                extent practicable, that all application 
                periods for disaster relief under this Act 
                correspond with application deadlines 
                established under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5121 et seq.), or as extended by the 
                President.
                  (B) Deadlines.--Notwithstanding any other 
                provision of law, not later than 10 days before 
                the closing date of an application period for a 
                major disaster (including any major disaster 
                relating to which the Administrator declares 
                eligibility for additional disaster assistance 
                under paragraph (9)), the Administrator, in 
                consultation with the Administrator of the 
                Federal Emergency Management Agency, shall 
                submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives a report that includes--
                          (i) the deadline for submitting 
                        applications for assistance under this 
                        Act relating to that major disaster;
                          (ii) information regarding the number 
                        of loan applications and disbursements 
                        processed by the Administrator relating 
                        to that major disaster for each day 
                        during the period beginning on the date 
                        on which that major disaster was 
                        declared and ending on the date of that 
                        report; and
                          (iii) an estimate of the number of 
                        potential applicants that have not 
                        submitted an application relating to 
                        that major disaster.
          (5) Public awareness of disasters.--If a disaster is 
        declared under this subsection or the Administrator 
        declares eligibility for additional disaster assistance 
        under paragraph (9), the Administrator shall make every 
        effort to communicate through radio, television, print, 
        and web-based outlets, all relevant information needed 
        by disaster loan applicants, including--
                  (A) the date of such declaration;
                  (B) cities and towns within the area of such 
                declaration;
                  (C) loan application deadlines related to 
                such disaster;
                  (D) all relevant contact information for 
                victim services available through the 
                Administration (including links to small 
                business development center websites);
                  (E) links to relevant Federal and State 
                disaster assistance websites, including links 
                to websites providing information regarding 
                assistance available from the Federal Emergency 
                Management Agency;
                  (F) information on eligibility criteria for 
                Administration loan programs, including where 
                such applications can be found; and
                  (G) application materials that clearly state 
                the function of the Administration as the 
                Federal source of disaster loans for homeowners 
                and renters.
          (6) Authority for qualified private contractors.--
                  (A) Disaster loan processing.--The 
                Administrator may enter into an agreement with 
                a qualified private contractor, as determined 
                by the Administrator, to process loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the contractor a fee for each loan 
                processed.
                  (B) Loan loss verification services.--The 
                Administrator may enter into an agreement with 
                a qualified lender or loss verification 
                professional, as determined by the 
                Administrator, to verify losses for loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the lender or verification 
                professional a fee for each loan for which such 
                lender or verification professional verifies 
                losses.
          (7) Disaster assistance employees.--
                  (A) In general.--In carrying out this 
                section, the Administrator may, where 
                practicable, ensure that the number of full-
                time equivalent employees--
                          (i) in the Office of the Disaster 
                        Assistance is not fewer than 800; and
                          (ii) in the Disaster Cadre of the 
                        Administration is not fewer than 1,000.
                  (B) Report.--In carrying out this subsection, 
                if the number of full-time employees for either 
                the Office of Disaster Assistance or the 
                Disaster Cadre of the Administration is below 
                the level described in subparagraph (A) for 
                that office, not later than 21 days after the 
                date on which that staffing level decreased 
                below the level described in subparagraph (A), 
                the Administrator shall submit to the Committee 
                on Appropriations and the Committee on Small 
                Business and Entrepreneurship of the Senate and 
                the Committee on Appropriations and Committee 
                on Small Business of the House of 
                Representatives, a report--
                          (i) detailing staffing levels on that 
                        date;
                          (ii) requesting, if practicable and 
                        determined appropriate by the 
                        Administrator, additional funds for 
                        additional employees; and
                          (iii) containing such additional 
                        information, as determined appropriate 
                        by the Administrator.
          (8) Increased loan caps.--
                  (A) Aggregate loan amounts.--Except as 
                provided in subparagraph (B), and 
                notwithstanding any other provision of law, the 
                aggregate loan amount outstanding and committed 
                to a borrower under this subsection may not 
                exceed $2,000,000.
                  (B) Waiver authority.--The Administrator may, 
                at the discretion of the Administrator, 
                increase the aggregate loan amount under 
                subparagraph (A) for loans relating to a 
                disaster to a level established by the 
                Administrator, based on appropriate economic 
                indicators for the region in which that 
                disaster occurred.
          (9) Declaration of eligibility for additional 
        disaster assistance.--
                  (A) In general.--If the President declares a 
                major disaster, the Administrator may declare 
                eligibility for additional disaster assistance 
                in accordance with this paragraph.
                  (B) Threshold.--A major disaster for which 
                the Administrator declares eligibility for 
                additional disaster assistance under this 
                paragraph shall--
                          (i) have resulted in extraordinary 
                        levels of casualties or damage or 
                        disruption severely affecting the 
                        population (including mass 
                        evacuations), infrastructure, 
                        environment, economy, national morale, 
                        or government functions in an area;
                          (ii) be comparable to the description 
                        of a catastrophic incident in the 
                        National Response Plan of the 
                        Administration, or any successor 
                        thereto, unless there is no successor 
                        to such plan, in which case this clause 
                        shall have no force or effect; and
                          (iii) be of such size and scope 
                        that--
                                  (I) the disaster assistance 
                                programs under the other 
                                paragraphs under this 
                                subsection are incapable of 
                                providing adequate and timely 
                                assistance to individuals or 
                                business concerns located 
                                within the disaster area; or
                                  (II) a significant number of 
                                business concerns outside the 
                                disaster area have suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the incident.
                  (C) Additional economic injury disaster loan 
                assistance.--
                          (i) In general.--If the Administrator 
                        declares eligibility for additional 
                        disaster assistance under this 
                        paragraph, the Administrator may make 
                        such loans under this subparagraph 
                        (either directly or in cooperation with 
                        banks or other lending institutions 
                        through agreements to participate on an 
                        immediate or deferred basis) as the 
                        Administrator determines appropriate to 
                        eligible small business concerns 
                        located anywhere in the United States.
                          (ii) Processing time.--
                                  (I) In general.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 15 days, 
                                the Administrator shall give 
                                priority to the processing of 
                                such applications submitted by 
                                eligible small business 
                                concerns located inside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                                  (II) Suspension of 
                                applications from outside 
                                disaster area.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 30 days, 
                                the Administrator shall suspend 
                                the processing of such 
                                applications submitted by 
                                eligible small business 
                                concerns located outside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                          (iii) Loan terms.--A loan under this 
                        subparagraph shall be made on the same 
                        terms as a loan under paragraph (2).
                  (D) Definitions.--In this paragraph--
                          (i) the term ``disaster area'' means 
                        the area for which the applicable major 
                        disaster was declared;
                          (ii) the term ``disaster-related 
                        substantial economic injury'' means 
                        economic harm to a business concern 
                        that results in the inability of the 
                        business concern to--
                                  (I) meet its obligations as 
                                it matures;
                                  (II) meet its ordinary and 
                                necessary operating expenses; 
                                or
                                  (III) market, produce, or 
                                provide a product or service 
                                ordinarily marketed, produced, 
                                or provided by the business 
                                concern because the business 
                                concern relies on materials 
                                from the disaster area or sells 
                                or markets in the disaster 
                                area; and
                          (iii) the term ``eligible small 
                        business concern'' means a small 
                        business concern--
                                  (I) that has suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the applicable major disaster; 
                                and
                                  (II)(aa) for which not less 
                                than 25 percent of the market 
                                share of that small business 
                                concern is from business 
                                transacted in the disaster 
                                area;
                                  (bb) for which not less than 
                                25 percent of an input into a 
                                production process of that 
                                small business concern is from 
                                the disaster area; or
                                  (cc) that relies on a 
                                provider located in the 
                                disaster area for a service 
                                that is not readily available 
                                elsewhere.
          (10) Reducing closing and disbursement delays.--The 
        Administrator shall provide a clear and concise 
        notification on all application materials for loans 
        made under this subsection and on relevant websites 
        notifying an applicant that the applicant may submit 
        all documentation necessary for the approval of the 
        loan at the time of application and that failure to 
        submit all documentation could delay the approval and 
        disbursement of the loan.
          (11) Increasing transparency in loan approvals.--The 
        Administrator shall establish and implement clear, 
        written policies and procedures for analyzing the 
        ability of a loan applicant to repay a loan made under 
        this subsection.
          (12) Additional awards to small business development 
        centers, women's business centers, and score for 
        disaster recovery.--
                  (A) In general.--The Administration may 
                provide financial assistance to a small 
                business development center, a women's business 
                center described in section 29, the Service 
                Corps of Retired Executives, or any proposed 
                consortium of such individuals or entities to 
                spur disaster recovery and growth of small 
                business concerns located in an area for which 
                the President has declared a major disaster.
                  (B) Form of financial assistance.--Financial 
                assistance provided under this paragraph shall 
                be in the form of a grant, contract, or 
                cooperative agreement.
                  (C) No matching funds required.--Matching 
                funds shall not be required for any grant, 
                contract, or cooperative agreement under this 
                paragraph.
                  (D) Requirements.--A recipient of financial 
                assistance under this paragraph shall provide 
                counseling, training, and other related 
                services, such as promoting long-term 
                resiliency, to small business concerns and 
                entrepreneurs impacted by a major disaster.
                  (E) Performance.--
                          (i) In general.--The Administrator, 
                        in cooperation with the recipients of 
                        financial assistance under this 
                        paragraph, shall establish metrics and 
                        goals for performance of grants, 
                        contracts, and cooperative agreements 
                        under this paragraph, which shall 
                        include recovery of sales, recovery of 
                        employment, reestablishment of business 
                        premises, and establishment of new 
                        small business concerns.
                          (ii) Use of estimates.--The 
                        Administrator shall base the goals and 
                        metrics for performance established 
                        under clause (i), in part, on the 
                        estimates of disaster impact prepared 
                        by the Office of Disaster Assistance 
                        for purposes of estimating loan-making 
                        requirements.
                  (F) Term.--
                          (i) In general.--The term of any 
                        grant, contract, or cooperative 
                        agreement under this paragraph shall be 
                        for not more than 2 years.
                          (ii) Extension.--The Administrator 
                        may make 1 extension of a grant, 
                        contract, or cooperative agreement 
                        under this paragraph for a period of 
                        not more than 1 year, upon a showing of 
                        good cause and need for the extension.
                  (G) Exemption from other program 
                requirements.--Financial assistance provided 
                under this paragraph is in addition to, and 
                wholly separate from, any other form of 
                assistance provided by the Administrator under 
                this Act.
                  (H) Competitive basis.--The Administration 
                shall award financial assistance under this 
                paragraph on a competitive basis.
          (13) Supplemental assistance for contractor 
        malfeasance.--
                  (A) In general.--If a contractor or other 
                person engages in malfeasance in connection 
                with repairs to, rehabilitation of, or 
                replacement of real or personal property 
                relating to which a loan was made under this 
                subsection and the malfeasance results in 
                substantial economic damage to the recipient of 
                the loan or substantial risks to health or 
                safety, upon receiving documentation of the 
                substantial economic damage or the substantial 
                risk to health and safety from an independent 
                loss verifier, and subject to subparagraph (B), 
                the Administrator may increase the amount of 
                the loan under this subsection, as necessary 
                for the cost of repairs, rehabilitation, or 
                replacement needed to address the cause of the 
                economic damage or health or safety risk.
                  (B) Requirements.--The Administrator may only 
                increase the amount of a loan under 
                subparagraph (A) upon receiving an appropriate 
                certification from the borrower and person 
                performing the mitigation attesting to the 
                reasonableness of the mitigation costs and an 
                assignment of any proceeds received from the 
                person engaging in the malfeasance. The 
                assignment of proceeds recovered from the 
                person engaging in the malfeasance shall be 
                equal to the amount of the loan under this 
                section. Any mitigation activities shall be 
                subject to audit and independent verification 
                of completeness and cost reasonableness.
          (14) Business recovery centers.--
                  (A) In general.--The Administrator, acting 
                through the district offices of the 
                Administration, shall identify locations that 
                may be used as recovery centers by the 
                Administration in the event of a disaster 
                declared under this subsection or a major 
                disaster.
                  (B) Requirements for identification.--Each 
                district office of the Administration shall--
                          (i) identify a location described in 
                        subparagraph (A) in each county, 
                        parish, or similar unit of general 
                        local government in the area served by 
                        the district office; and
                          (ii) ensure that the locations 
                        identified under subparagraph (A) may 
                        be used as a recovery center without 
                        cost to the Government, to the extent 
                        practicable.
          (15) Increased oversight of economic injury disaster 
        loans.--The Administrator shall increase oversight of 
        entities receiving loans under paragraph (2), and may 
        consider--
                  (A) scheduled site visits to ensure borrower 
                eligibility and compliance with requirements 
                established by the Administrator; and
                  (B) reviews of the use of the loan proceeds 
                by an entity described in paragraph (2) to 
                ensure compliance with requirements established 
                by the Administrator.
   No loan under this subsection, including renewals and 
extensions thereof, may be made for a period or periods 
exceeding thirty years: Provided, That the Administrator may 
consent to a suspension in the payment of principal and 
interest charges on, and to an extension in the maturity of, 
the Federal share of any loan under this subsection for a 
period not to exceed five years, if (A) the borrower under such 
loan is a homeowner or a small business concern, (B) the loan 
was made to enable (i) such homeowner to repair or replace his 
home, or (ii) such concern to repair or replace plant or 
equipment which was damaged or destroyed as the result of a 
disaster meeting the requirements of clause (A) or (B) of 
paragraph (2) of this subsection, and (C) the Administrator 
determines such action is necessary to avoid severe financial 
hardship: Provided further, That the provisions of paragraph 
(1) of subsection (d) of this section shall not be applicable 
to any such loan having a maturity in excess of twenty years. 
Notwithstanding any other provision of law, and except as 
provided in subsection (d), the interest rate on the 
Administration's share of any loan made under subsection (b), 
shall not exceed the average annual interest rate on all 
interest-bearing obligations of the United States then forming 
a part of the public debt as computed at the end of the fiscal 
year next preceding the date of the loan and adjusted to the 
nearest one-eight of 1 per centum plus one-quarter of 1 per 
centum: Provided, however, That the interest rate for loans 
made under paragraphs (1) and (2) hereof shall not exceed the 
rate of interest which is in effect at the time of the 
occurrence of the disaster. In agreements to participate in 
loans on a deferred basis under this subsection, such 
participation by the Administration shall not be in excess of 
90 per centum of the balance of the loan outstanding at the 
time of disbursement. Notwithstanding any other provision of 
law, the interest rate on the Administration's share of any 
loan made pursuant to paragraph (1) of this subsection to 
repair or replace a primary residence and/or replace or repair 
damaged or destroyed personal property, less the amount of 
compensation by insurance or otherwise, with respect to a 
disaster occurring on or after July 1, 1976, and prior to 
October 1, 1978, shall be: 1 per centum on the amount of such 
loan not exceeding $10,000, and 3 per centum on the amount of 
such loan over $10,000 but not exceeding $40,000. The interest 
rate on the Administration's share of the first $250,000 of all 
other loans made pursuant to paragraph (1) of this subsection, 
with respect to a disaster occurring on or after July 1, 1976, 
and prior to October 1, 1978, shall be 3 per centum. All 
repayments of principal on the Administration's share of any 
loan made under the above provisions shall first be applied to 
reduce the principal sum of such loan which bears interest at 
the lower rates provided in this paragraph. The principal 
amount of any loan made pursuant to paragraph (1) in connection 
with a disaster which occurs on or after April 1, 1977, but 
prior to January 1, 1978, may be increased by such amount, but 
not more than $2,000, as the Administration determines to be 
reasonable in light of the amount and nature of loss, damage, 
or injury sustained in order to finance the installation of 
insulation in the property which was lost, damaged, or injured, 
if the uninsured, damaged portion of the property is 10 per 
centum or more of the market value of the property at the time 
of the disaster. No later than June 1, 1978, the Administration 
shall prepare and transmit to the Select Committee on Small 
Business of the Senate, the Committee on Small Business of the 
House of Representatives, and the Committee of the Senate and 
House of Representatives having jurisdiction over measures 
relating to energy conservation, a report on its activities 
under this paragraph, including therein an evaluation of the 
effect of such activities on encouraging the installation of 
insulation in property which is repaired or replaced after a 
disaster which is subject to this paragraph, and its 
recommendations with respect to the continuation, modification, 
or termination of such activities.
   In the administration of the disaster loan program under 
paragraphs (1) and (2) of this subsection, in the case of 
property loss or damage or injury resulting from a major 
disaster as determined by the President or a disaster as 
determined by the Administrator which occurs on or after 
January 1, 1971, and prior to July 1, 1973, the Small Business 
Administration, to the extent such loss or damage or injury is 
not compensated for by insurance or otherwise--
          (A) may make any loan for repair, rehabilitation, or 
        replacement of property damaged or destroyed without 
        regard to whether the required financial assistance is 
        otherwise available from private sources;
          (B) may, in the case of the total destruction or 
        substantial property damage of a home or business 
        concern, refinance any mortgage or other liens 
        outstanding against the destroyed or damaged property 
        if such project is to be repaired, rehabilitated, or 
        replaced, except that (1) in the case of a business 
        concern, the amount refinanced shall not exceed the 
        amount of the physical loss sustained, and (2) in the 
        case of a home, the amount of each monthly payment of 
        principal and interest on the loan after refinancing 
        under this clause shall be not less than the amount of 
        each such payment made prior to such refinancing;
          (C) may, in the case of a loan made under clause (A) 
        or a mortgage or other lien refinanced under clause (B) 
        in connection with the destruction of, or substantial 
        damage to, property owned and used as a residence by an 
        individual who by reason of retirement, disability, or 
        other similar circumstances relies for support on 
        survivor, disability, or retirement benefits under a 
        pension, insurance, or other program, consent to the 
        suspension of the payments of the principal of that 
        loan, mortgage, or lien during the lifetime of that 
        individual and his souse for so long as the 
        Administration determines that making such payments 
        would constitute a substantial hardship;
          (D) shall, notwithstanding the provisions of any 
        other law and upon presentation by the applicant of 
        proof of loss or damage or injury and a bona fide 
        estimate of cost of repair, rehabilitation, or 
        replacement, cancel the principal of any loan made to 
        cover a loss or damage or injury resulting from such 
        disaster, except that--
                  (i) with respect to a loan made in connection 
                with a disaster occurring on or after January 
                1, 1971 but prior to January 1, 1972, the total 
                amount so canceled shall not exceed $2,500, and 
                the interest on the balance of the loan shall 
                be at a rate of 3 per centum per annum; and
                  (ii) with respect to a loan made in 
                connection with a disaster occurring on or 
                after January 1, 1972 but prior to July 1, 
                1973, the total amount so canceled shall not 
                exceed $5,000, and the interest on the balance 
                of the loan shall be at a rate of 1 per centum 
                per annum.
  With respect to any loan referred to in clause (D) which is 
outstanding on the date of enactment of this paragraph, the 
Administrator shall--
          (i) make sure change in the interest rate on the 
        balance of such loan as is required under that clause 
        effective as of such date of enactment; and
          (ii) in applying the limitation set forth in that 
        clause with respect to the total amount of such loan 
        which may be canceled, consider as part of the amount 
        so canceled any part of such loan which was previously 
        canceled pursuant to section 231 of the Disaster Relief 
        Act of 1970.
  Whoever wrongfully misapplies the proceeds of a loan obtained 
under this subsection shall be civilly liable to the 
Administrator in an amount equal to one-and-one-half times the 
original principal amount of the loan.
          (E) A State grant made on or prior to July 1, 1979, 
        shall not be considered compensation for the purpose of 
        applying the provisions of section 312(a) of the 
        Disaster Relief and Emergency Assistance Act to a 
        disaster loan under paragraph (1) (2)of this 
        subsection.
  (c) Private Disaster Loans.--
          (1) Definitions.--In this subsection--
                  (A) the term ``disaster area'' means any area 
                for which the President declared a major 
                disaster relating to which the Administrator 
                declares eligibility for additional disaster 
                assistance under subsection (b)(9), during the 
                period of that major disaster declaration;
                  (B) the term ``eligible individual'' means an 
                individual who is eligible for disaster 
                assistance under subsection (b)(1) relating to 
                a major disaster relating to which the 
                Administrator declares eligibility for 
                additional disaster assistance under subsection 
                (b)(9);
                  (C) the term ``eligible small business 
                concern'' means a business concern that is--
                          (i) a small business concern, as 
                        defined under this Act; or
                          (ii) a small business concern, as 
                        defined in section 103 of the Small 
                        Business Investment Act of 1958;
                  (D) the term ``preferred lender'' means a 
                lender participating in the Preferred Lender 
                Program;
                  (E) the term ``Preferred Lender Program'' has 
                the meaning given that term in subsection 
                (a)(2)(C)(ii); and
                  (F) the term ``qualified private lender'' 
                means any privately-owned bank or other lending 
                institution that--
                          (i) is not a preferred lender; and
                          (ii) the Administrator determines 
                        meets the criteria established under 
                        paragraph (10).
          (2) Program required.--The Administrator shall carry 
        out a program, to be known as the Private Disaster 
        Assistance program, under which the Administration may 
        guarantee timely payment of principal and interest, as 
        scheduled, on any loan made to an eligible small 
        business concern located in a disaster area and to an 
        eligible individual.
          (3) Use of loans.--A loan guaranteed by the 
        Administrator under this subsection may be used for any 
        purpose authorized under subsection (b).
          (4) Online applications.--
                  (A) Establishment.--The Administrator may 
                establish, directly or through an agreement 
                with another entity, an online application 
                process for loans guaranteed under this 
                subsection.
                  (B) Other federal assistance.--The 
                Administrator may coordinate with the head of 
                any other appropriate Federal agency so that 
                any application submitted through an online 
                application process established under this 
                paragraph may be considered for any other 
                Federal assistance program for disaster relief.
                  (C) Consultation.--In establishing an online 
                application process under this paragraph, the 
                Administrator shall consult with appropriate 
                persons from the public and private sectors, 
                including private lenders.
          (5) Maximum amounts.--
                  (A) Guarantee percentage.--The Administrator 
                may guarantee not more than 85 percent of a 
                loan under this subsection.
                  (B) Loan amount.--The maximum amount of a 
                loan guaranteed under this subsection shall be 
                $2,000,000.
          (6) Terms and conditions.--A loan guaranteed under 
        this subsection shall be made under the same terms and 
        conditions as a loan under subsection (b).
          (7) Lenders.--
                  (A) In general.--A loan guaranteed under this 
                subsection made to--
                          (i) a qualified individual may be 
                        made by a preferred lender; and
                          (ii) a qualified small business 
                        concern may be made by a qualified 
                        private lender or by a preferred lender 
                        that also makes loans to qualified 
                        individuals.
                  (B) Compliance.--If the Administrator 
                determines that a preferred lender knowingly 
                failed to comply with the underwriting 
                standards for loans guaranteed under this 
                subsection or violated the terms of the 
                standard operating procedure agreement between 
                that preferred lender and the Administration, 
                the Administrator shall do 1 or more of the 
                following:
                          (i) Exclude the preferred lender from 
                        participating in the program under this 
                        subsection.
                          (ii) Exclude the preferred lender 
                        from participating in the Preferred 
                        Lender Program for a period of not more 
                        than 5 years.
          (8) Fees.--
                  (A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                  (B) Origination fee.--The Administrator may 
                pay a qualified private lender or preferred 
                lender an origination fee for a loan guaranteed 
                under this subsection in an amount agreed upon 
                in advance between the qualified private lender 
                or preferred lender and the Administrator.
          (9) Documentation.--A qualified private lender or 
        preferred lender may use its own loan documentation for 
        a loan guaranteed by the Administrator under this 
        subsection, to the extent authorized by the 
        Administrator. The ability of a lender to use its own 
        loan documentation for a loan guaranteed under this 
        subsection shall not be considered part of the criteria 
        for becoming a qualified private lender under the 
        regulations promulgated under paragraph (10).
          (10) Implementation regulations.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of the Small Business 
                Disaster Response and Loan Improvements Act of 
                2008, the Administrator shall issue final 
                regulations establishing permanent criteria for 
                qualified private lenders.
                  (B) Report to congress.--Not later than 6 
                months after the date of enactment of the Small 
                Business Disaster Response and Loan 
                Improvements Act of 2008, the Administrator 
                shall submit a report on the progress of the 
                regulations required by subparagraph (A) to the 
                Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
          (11) Authorization of appropriations.--
                  (A) In general.--Amounts necessary to carry 
                out this subsection shall be made available 
                from amounts appropriated to the Administration 
                to carry out subsection (b).
                  (B) Authority to reduce interest rates and 
                other terms and conditions.--Funds appropriated 
                to the Administration to carry out this 
                subsection, may be used by the Administrator to 
                meet the loan terms and conditions specified in 
                paragraph (6).
          (12) Purchase of loans.--The Administrator may enter 
        into an agreement with a qualified private lender or 
        preferred lender to purchase any loan guaranteed under 
        this subsection.
  (d)(1) The Administration may further extend the maturity of 
or renew any loan made pursuant to this section, or any loan 
transferred to the Administration pursuant to Reorganization 
Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 
1957, for additional periods not to exceed ten years beyond the 
period stated therein, if such extension or renewal will aid in 
the orderly liquidation of such loan.
          (2) During any period in which principal and interest 
        charges are suspended on the Federal share of any loan, 
        as provided in subsection (b), the Administrator shall, 
        upon the request of any person, firm, or corporation 
        having a participation in such loan, purchase such 
        participation, or assume the obligation of the 
        borrower, for the balance of such period, to make 
        principal and interest payments on the non-Federal 
        share of such loan: Provided, That no such payments 
        shall be made by the Administrator in behalf of any 
        borrower unless (i) the Administrator determines that 
        such action is necessary in order to avoid a default, 
        and (ii) the borrower agrees to make payments to the 
        Administration in an agreegate amount equal to the 
        amount paid in its behalf by the Administrator, in such 
        manner and at such time (during or after the term of 
        the loan) as the Administrator shall determine having 
        due regard to the purposes sought to be achieved by 
        this paragraph.
          (3) With respect to a disaster occurring on or after 
        October 1, 1978, and prior the effective date of this 
        Act, on the Administration's share of loans made 
        pursuant to paragraph (1) of subsection (b)--
                          (A) if the loan proceeds are to 
                        repair or replace a primary residence 
                        and/or repair or replace damaged or 
                        destroyed personal property, the 
                        interest rate shall be 3 percent on the 
                        first $55,000 of such loan;
                          (B) if the loan proceeds are to 
                        repair or replace property damaged or 
                        destroyed and if the applicant is a 
                        business concern which is unable to 
                        obtain sufficient credit elsewhere, the 
                        interest rate shall be as determined by 
                        the Administration, but not in excess 
                        of 5 percent per annum; and
                  (C) if the loan proceeds are to repair or 
                replace property damaged or destroyed and if 
                the applicant is a business concern which is 
                able to obtain sufficient credit elsewhere, the 
                interest rate shall not exceed the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans and adjusted to the 
                nearest one-eight of 1 percent, and an 
                additional amount as determined by the 
                Administration, but not to exceed 1 percent: 
                Provided, That three years after such loan is 
                fully disbursed and every two years thereafter 
                for the term of the loan, if the Administration 
                determines that the borrower is able to obtain 
                a loan from one-Federal sources at reasonable 
                rates and terms for loans of similar purposes 
                and periods of time, the borrower shall, upon 
                request by the Administration, apply for and 
                accept such a loan in sufficient amount to 
                repay the Administration: Provided further, 
                That no loan under subsection (b)(1) shall be 
                made, either directly or in cooperation with 
                banks or other lending institutions through 
                agreements to participate on an immediate or 
                deferred basis, if the total amount outstanding 
                and committed to the borrower under such 
                subsection would exceed $500,000 for each 
                disaster, unless an applicant constitutes a 
                major source of employment in an area suffering 
                a disaster, in which case the Administration, 
                in its discretion, may waive the $500,000 
                limitation.
          (4) Notwithstanding the provisions of any other law, 
        the interest rate on the Federal share of any loan made 
        under subsection (b) shall be--
                  (A) in the case of a homeowner unable to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than one-half 
                the rate determined by the Secretary of the 
                Treasury taking into consideration the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eight of 1 per 
                centum but not to exceed 8 per centum per 
                annum;
                  (B) in the case of a homeowner able to secure 
                credit elsewhere, the rate prescribed by the 
                Administration but not more than the rate 
                determined by the Secretary of the Treasury 
                taking into consideration the current average 
                market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum;
                  (C) in the case of a business concern unable 
                to obtain credit elsewhere, not to exceed 8 per 
                centum per annum;
                  (D) in the case of a business concern able to 
                obtain credit elsewhere, the rate prescribed by 
                the Administration but not in excess of the 
                rate prevailing in private market for similar 
                loans and not more than the rate prescribed by 
                the Administration as the maximum interest rate 
                for deferred participation (guaranteed) loans 
                under section 7(a) of this Act. Loans under 
                this subparagraph shall be limited to a maximum 
                term of three years.
          (5) Notwithstanding the provisions of any other law, 
        the interest rate on the Federal share of any loan made 
        under subsection (b)(1) and (b)(2) on account of a 
        disaster commencing on or after October 1, 1982, shall 
        be--
                  (A) in the case of a homeowner unable to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than one-half 
                the rate determined by the Secretary of the 
                Treasury taking into consideration the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loan plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum, but not to exceed 4 per centum per 
                annum;
                  (B) in the case of a homeowner, able to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than the rate 
                determined by the Secretary of the Treasury 
                taking into consideration the current average 
                market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum, but not to exceed 8 per centum per 
                annum;
                  (C) in the case of a business, private 
                nonprofit organization, or other concern, 
                including agricultural cooperatives, unable to 
                obtain credit elsewhere, not to exceed 4 per 
                centum per annum;
                  (D) in the case of a business concern able to 
                obtain credit elsewhere, the rate prescribed by 
                the Administration but not in excess of the 
                lowest of (i) the rate prevailing in the 
                private market for similar loans, (ii) the rate 
                prescribed by the Administration as the maximum 
                interest rate for deferred participation 
                (guaranteed) loans under section 7(a) of this 
                Act, or (iii) 8 per centum per annum. Loans 
                under this subparagraph shall be limited to a 
                maximum term of 7 years.
          (6) Notwithstanding the provisions of any other law, 
        such loans, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        be in amounts equal to 100 per centum of loss. The 
        interest rate for loans made under paragraphs 7(b)(1) 
        and (2), as determined pursuant to paragraph (5), shall 
        be the rate of interest which is in effect on the date 
        of the disaster commenced: Provided, That no loan under 
        paragraphs 7(b) (1) and (2) shall be made, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred (guaranteed) basis, if the total 
        amount outstanding and committed to the borrower under 
        subsection 7(b) would exceed $500,000 for each disaster 
        unless an applicant constitutes a major source of 
        employment in an area suffering a disaster, in which 
        case the Administration, in its discretion, may waive 
        the $500,000 limitation: Provided further, That the 
        Administration, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        not reduce the amount of eligibility for any homeowner 
        on account of loss of real estate to less than $100,000 
        for each disaster nor for any homeowner or lessee on 
        account of loss of personal property to less than 
        $20,000 for each disaster, such sums being in addition 
        to any eligible refinancing: Provided further, That the 
        Administration shall not require collateral for loans 
        of $25,000 or less (or such higher amount as the 
        Administrator determines appropriate in the event of a 
        disaster) which are made under paragraph (1) of 
        subsection (b): Provided further, That the 
        Administrator, in obtaining the best available 
        collateral for a loan of not more than $200,000 under 
        paragraph (1) or (2) of subsection (b) relating to 
        damage to or destruction of the property of, or 
        economic injury to, a small business concern, shall not 
        require the owner of the small business concern to use 
        the primary residence of the owner as collateral if the 
        Administrator determines that the owner has other 
        assets of equal quality and with a value equal to or 
        greater than the amount of the loan that could be used 
        as collateral for the loan: Provided further, That 
        nothing in the preceding proviso may be construed to 
        reduce the amount of collateral required by the 
        Administrator in connection with a loan described in 
        the preceding proviso or to modify the standards used 
        to evaluate the quality (rather than the type) of such 
        collateral. Employees of concerns sharing a common 
        business premises shall be aggregated in determining 
        ``major source of employment'' status for nonprofit 
        applicants owning such premises.
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the 
Administrator shall made such change in the interest rate on 
the balance of such loan as is required herein effective as of 
the date of enactment.
=======================================================================

[Note: Effective on November 25, 2018, section 2102(b) of 
Public Law 114-88 provides for amendments to the third proviso 
of section 7(d)(6). Upon such date, paragraph (6) will read as 
follows:]

          (6) Notwithstanding the provisions of any other law, 
        such loans, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        be in amounts equal to 100 per centum of loss. The 
        interest rate for loans made under paragraphs 7(b)(1) 
        and (2), as determined pursuant to paragraph (5), shall 
        be the rate of interest which is in effect on the date 
        of the disaster commenced: Provided, That no loan under 
        paragraphs 7(b) (1) and (2) shall be made, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred (guaranteed) basis, if the total 
        amount outstanding and committed to the borrower under 
        subsection 7(b) would exceed $500,000 for each disaster 
        unless an applicant constitutes a major source of 
        employment in an area suffering a disaster, in which 
        case the Administration, in its discretion, may waive 
        the $500,000 limitation: Provided further, That the 
        Administration, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        not reduce the amount of eligibility for any homeowner 
        on account of loss of real estate to less than $100,000 
        for each disaster nor for any homeowner or lessee on 
        account of loss of personal property to less than 
        $20,000 for each disaster, such sums being in addition 
        to any eligible refinancing: Provided further, That the 
        Administration shall not require collateral for loans 
        of $14,000 or less (or such higher amount as the 
        Administrator determines appropriate in the event of a 
        major disaster) which are made under paragraph (1) of 
        subsection (b): Provided further, That the 
        Administrator, in obtaining the best available 
        collateral for a loan of not more than $200,000 under 
        paragraph (1) or (2) of subsection (b) relating to 
        damage to or destruction of the property of, or 
        economic injury to, a small business concern, shall not 
        require the owner of the small business concern to use 
        the primary residence of the owner as collateral if the 
        Administrator determines that the owner has other 
        assets of equal quality and with a value equal to or 
        greater than the amount of the loan that could be used 
        as collateral for the loan: Provided further, That 
        nothing in the preceding proviso may be construed to 
        reduce the amount of collateral required by the 
        Administrator in connection with a loan described in 
        the preceding proviso or to modify the standards used 
        to evaluate the quality (rather than the type) of such 
        collateral. Employees of concerns sharing a common 
        business premises shall be aggregated in determining 
        ``major source of employment'' status for nonprofit 
        applicants owning such premises.
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the 
Administrator shall made such change in the interest rate on 
the balance of such loan as is required herein effective as of 
the date of enactment.
=======================================================================

  (7) The Administration shall not withhold disaster assistance 
pursuant to this paragraph to nurseries who are victims of 
drought disasters. As used in section 7(b)(2) the term ``an 
area affected by a disaster'' includes any county, or county 
contiguous thereto, determined to be a disaster by the 
President, the Secretary of Agriculture or the Administrator of 
the Small Business Administration.
          (8) Disaster loans for superstorm sandy.--
                  (A) In general.--Notwithstanding any other 
                provision of law, and subject to the same 
                requirements and procedures that are used to 
                make loans pursuant to subsection (b), a small 
                business concern, homeowner, nonprofit entity, 
                or renter that was located within an area and 
                during the time period with respect to which a 
                major disaster was declared by the President 
                under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5170) by reason of Superstorm Sandy 
                may apply to the Administrator--
                          (i) for a loan to repair, 
                        rehabilitate, or replace property 
                        damaged or destroyed by reason of 
                        Superstorm Sandy; or
                          (ii) if such a small business concern 
                        has suffered substantial economic 
                        injury by reason of Superstorm Sandy, 
                        for a loan to assist such a small 
                        business concern.
                  (B) Timing.--The Administrator shall select 
                loan recipients and make available loans for a 
                period of not less than 1 year after the date 
                on which the Administrator carries out this 
                authority.
                  (C) Inspector general review.--Not later than 
                6 months after the date on which the 
                Administrator begins carrying out this 
                authority, the Inspector General of the 
                Administration shall initiate a review of the 
                controls for ensuring applicant eligibility for 
                loans made under this paragraph.
  (e) The Administration shall not fund any Small Business 
Development Center or any variation thereof, except as 
authorized in section 21 of this Act.
  (f) Additional Requirements for 7(b) Loans.--
          (1) Increased deferment authorized.--
                  (A) In general.--In making loans under 
                subsection (b), the Administrator may provide, 
                to the person receiving the loan, an option to 
                defer repayment on the loan.
                  (B) Period.--The period of a deferment under 
                subparagraph (A) may not exceed 4 years.
  (g) Net Earnings Clauses Prohibited for 7(b) Loans.--In 
making loans under subsection (b), the Administrator shall not 
require the borrower to pay any non-amortized amount for the 
first five years after repayment begins.
  (e) [RESERVED].
  (f) [RESERVED].
  (h)(1) The Administration also is empowered, where other 
financial assistance is not available on reasonable terms, to 
make such loans (either directly or in cooperation with Banks 
or other lending institutions through agreements to participate 
on an immediate or deferred basis) as the Administration may 
determine to be necessary or appropriate--
          (A) to assist any public or private organization--
                  (i) which is organized under the laws of the 
                United States or of any State, operated in the 
                interest of handicapped individuals, the net 
                income of which does not inure in whole or in 
                part to the benefit of any shareholder or other 
                individual;
                  (ii) which complies with any applicable 
                occupational health and safety standard 
                prescribed by the Secretary of Labor; and
                  (iii) which, in the production of commodities 
                and in the provision of services during any 
                fiscal year in which it receives financial 
                assistance under this subsection, employs 
                handicapped individuals for not less than 75 
                per centum of the man-hours required for the 
                production or provision of the commodities or 
                services; or
          (B) to assist any handicapped individual in 
        establishing, acquiring, or operating a small business 
        concern.
  (2) The Administration's share of any loan made under this 
subsection shall not exceed $350,000, nor may any such loan be 
made if the total amount outstanding and committed (by 
participation or otherwise) to the borrower from the business 
loan and investment fund established by section 4(c)(1)(B) of 
this Act would exceed $350,000. In agreements to participate in 
loans on a deferred basis under this subsection, the 
Administration's participation may total 100 per centum of the 
balance of the loan at the time of disbursement. The 
Administration's share of any loan made under this subsection 
shall bear interest at the rate of 3 per centum per annum. The 
maximum term of any such loan, including extensions and 
renewals thereof, may not exceed fifteen years. All loans made 
under this subsection shall be of such sound value or so 
secured as reasonably to assure repayment: Provided, however, 
That any reasonable doubt shall be resolved in favor of the 
applicant.
  (3) For purposes of this subsection, the term ``handicapped 
individual'' means a person who has a physical, mental, or 
emotional impairment, defect, ailment, disease, or disability 
of a permanent nature which in any way limits the selection of 
any type of employment for which the person would otherwise be 
qualified or qualifiable.
  (i)(1) The Administration also is empowered to make, 
participate (on an immediate basis) in, or guarantee loans, 
repayable in not more than fifteen years, to any small business 
concern, or to any qualified person seeking to establish such a 
concern, when it determines that such loans will further the 
policies established in section 2(b) of this Act, with 
particular emphasis on the preservation or establishment of 
small business concerns located in urban or rural areas with 
high proportions of unemployed or low-income individuals, or 
owned by low-income individuals: Provided, however, That no 
such loans shall be made, participated in, or guaranteed if the 
total of such Federal assistance to a single borrower 
outstanding at any one time would exceed $100,000. The 
Administration may defer payments on the principal of such 
loans for a grace period and use such other methods as it deems 
necessary and appropriate to assure the successful 
establishment and operation of such concern. The Administration 
may, in its discretion, as a condition of such financial 
assistance, require that the borrower take steps to improve his 
management skills by participating in a management training 
program approved by the Administration: Provided, however, That 
any management training program so approved must be of 
sufficient scope and duration to provide reasonable opportunity 
for the individuals served to develop entrepreneurial and 
managerial self-sufficiency.
  (2) The Administration shall encourage, as far as possible, 
the participation of the private business community in the 
program of assistance to such concerns, and shall seek to 
stimulate new private lending activities to such concerns 
through the use of the loan guarantees, participations in 
loans, and pooling arrangements authorized by this subsection.
  (3) To insure an equitable distribution between urban and 
rural areas for loans between $3,500 and $100,000 made under 
this subsection, the Administration is authorized to use the 
agencies and agreements and delegations developed under title 
III of the Economic Opportunity Act of 1964, as amended, as it 
shall determine necessary.
  (4) The Administration shall provide for the continuing 
evaluation of programs under this subsection, including full 
information on the location, income characteristics, and types 
of businesses and individuals assisted, and on new private 
lending activity stimulated, and the results of such evaluation 
together with recommendations shall be included in the report 
required by section 10(a) of this Act.
  (5) Loans made pursuant to this subsection (including 
immediate participation in and guarantees of such loans) shall 
have such terms and conditions as the Administration shall 
determine, subject to the following limitations--
          (A) there is reasonable assurance of repayment of the 
        loan;
          (B) the financial assistance is not otherwise 
        available on reasonable terms from private sources or 
        other Federal, State, or local programs;
          (C) the amount of the loan, together with other funds 
        available, is adequate to assure completion of the 
        project or achievement of the purposes for which the 
        loan is made;
          (D) the loan bears interest at a rate not less than 
        (i) a rate determined by the Secretary of the Treasury, 
        taking into consideration the average market yield on 
        outstanding Treasury obligations of comparable 
        maturity, plus (ii) such additional charge, if any, 
        toward covering other costs of the program as the 
        Administration may determine to be consistent with its 
        purposes: Provided, however, That the rate of interest 
        charged on loans made in redevelopment areas designated 
        under the Public Works and Economic Development Act of 
        1965 (42 U.S.C. 3108 et seq.) shall not exceed the rate 
        currently applicable to new loans made under section 
        201 of that Act (42 U.S.C. 3142); and
          (E) fees not in excess of amounts necessary to cover 
        administrative expenses and probable losses may be 
        required on loan guarantees.
  (6) The Administration shall take such steps as may be 
necessary to insure that, in any fiscal year, at least 50 per 
centum of the amounts loaned or guaranteed pursuant to this 
subsection are allotted to small business concerns located in 
urban areas identified by the Administration as having high 
concentrations of unemployed or low-income individuals or to 
small business concerns owned by low-income individuals. The 
Administration shall define the meaning of low income as it 
applies to owners of small business concerns eligible to be 
assisted under this subsection.
  (7) No financial assistance shall be extended pursuant to 
this subsection when the Administration determines that the 
assistance will be used in relocating establishments from one 
area to another if such relocation would result in an increase 
in unemployment in the area of original location.
  (j)(1) the Administration shall provide financial assistance 
to public or private organizations to pay all or part of the 
cost of projects designated to provide technical or management 
assistance to individuals or enterprises eligible for 
assistance under sections 7(i), 7(j)(10), and 8(a) of this Act, 
with special attention to small businesses located in areas of 
high concentration of unemployed or low-income individuals, to 
small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
  (2) Financial assistance under this subsection may be 
provided for projects, including, but not limited to--
          (A) planning and research, including feasibility 
        studies and market research;
          (B) the identification and development of new 
        business opportunities;
          (C) the furnishing of centralized services with 
        regard to public services and Federal Government 
        programs including programs authorized under sections 
        7(i), (7)(j)(10), and 8(a) of this Act;
          (D) the establishment and strengthening of business 
        service agencies, including trade associations and 
        cooperative; and
          (E) the furnishing of business counseling, management 
        training, and legal and other related services, with 
        special emphasis on the development of management 
        training programs using the resources of the business 
        community, including the development of management 
        training opportunities in existing business, and with 
        emphasis in all cases upon providing management 
        training of sufficient scope and duration to develop 
        entrepreneurial and managerial self-sufficiency on the 
        part of the individuals served.
  (3) The Administration shall encourage the placement of 
subcontracts by businesses with small business concerns located 
in area of high concentration of unemployed or low-income 
individuals, with small businesses owned by low-income 
individuals, and with small businesses eligible to receive 
contracts pursuant to section 8(a) of this Act. The 
Administration may provide incentives and assistance to such 
businesses that will aid in the training and upgrading of 
potential subcontractors or other small business concerns 
eligible for assistance under section 7(i), 7(j), and 8(a), of 
this Act.
  (4) The Administration shall give preference to projects 
which promote the ownership, participation in ownership, or 
management of small businesses owned by low-income individuals 
and small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
  (5) The financial assistance authorized for projects under 
this subsection includes assistance advanced by grant, 
agreement, or contract.
  (6) The Administration is authorized to make payments under 
grants and contracts entered into under this subsection in lump 
sum or installments, and in advance or by way of reimbursement, 
and in the case of grants, with necessary adjustments on 
account of overpayments or underpayments.
  (7) To the extent feasible, services under this subsection 
shall be provided in a location which is easily accessible to 
the individuals and small business concerns served.
  (9) The Administration shall take such steps as may be 
necessary and appropriate, in coordination and cooperation with 
the heads of other Federal departments and agencies, to insure 
that contracts, subcontracts, and deposits made by the Federal 
Government or with programs aided with Federal funds are placed 
in such way as to further the purposes of sections 7(i), 7(j), 
and 8(a) of this Act.
  (10) There is established with the Administration a small 
business and capital ownership development program (hereinafter 
referred to as the ``Program'') which shall provide assistance 
exclusively for small business concerns eligible to receive 
contracts pursuant to section 8(a) of this Act. The program, 
and all other services and activities authorized under section 
7(j) and 8(a) of this Act, shall be managed by the Associate 
Administrator for Minority Small Business and Capital Ownership 
Development under the supervision of, and responsible to, the 
Administrator.
          (A) The Program shall--
                  (i) assist small business concerns 
                participating in the Program (either through 
                public or private organizations) to develop and 
                maintain comprehensive business plans which set 
                forth the Program Participant's specific 
                business targets, objectives, and goals 
                developed and maintained in conformity with 
                subparagraph (D).
                  (ii) provide for such other nonfinancial 
                services as deemed necessary for the 
                establishment, preservation, and growth of 
                small business concerns participating in the 
                Program, including but not limited to (I) loan 
                packaging, (II) financing counseling, (III) 
                accounting and bookkeeping assistance, (IV) 
                marketing assistance, and (V) management 
                assistance;
                  (iii) assist small business concerns 
                participating in the Program to obtain equity 
                and debt financing;
                  (iv) establish regular performance monitoring 
                and reporting systems for small business 
                concerns participating in the Program to assure 
                compliance with their business plans;
                  (v) analyze and report the causes of success 
                and failure of small business concerns 
                participating in the Program; and
                  (vi) provide assistance necessary to help 
                small business concerns participating in the 
                Program to procure surety bonds, with such 
                assistance including, but not limited to, (I) 
                the preparation of application forms required 
                to receive a surety bond, (II) special 
                management and technical assistance designed to 
                meet the specific needs of small business 
                concerns participating in the Program and which 
                have received or are applying to receive a 
                surety bond, and (III) guarantee from the 
                Administration pursuant to title IV, part B of 
                the Small Business Investment Act of 1958.
          (B) Small business concerns eligible to receive 
        contracts pursuant to section 8(a) of this Act shall 
        participate in the Program.
          (C)(i) A small business concern participating in any 
        program or activity conducted under the authority of 
        this paragraph or eligible for the award of contracts 
        pursuant to section 8(a) on September 1, 1988, shall be 
        permitted continued participation and eligibility in 
        such program or activity for a period of time which is 
        the greater of--
                  (I) 9 years less the number of years since 
                the award of its first contract pursuant to 
                section 8(a); or
                  (II) its original fixed program participation 
                term (plus any extension thereof) assigned 
                prior to the effective date of this paragraph 
                plus eighteen months.
          (ii) Nothing contained in this subparagraph shall be 
        deemed to prevent the Administration from instituting a 
        termination or graduation pursuant to subparagraph (F) 
        or (H) for issues unrelated to the expiration of any 
        time period limitation.
          (D)(i) Promptly after certification under paragraph 
        (11) a Program Participant shall submit a business plan 
        (hereinafter referred to as the plan'') as described in 
        clause (ii) of this subparagraph for review by the 
        Business Opportunity Specialist assigned to assist such 
        Program Participant. The plan may be a revision of a 
        preliminary business plan submitted by the Program 
        Participant or required by the Administration as a part 
        of the application for certification under this section 
        and shall be designed to result in the Program 
        Participant eliminating the conditions or circumstances 
        upon which the Administration determined eligibility 
        pursuant to section 8(a)(6). Such plan, and subsequent 
        modifications submitted under clause (iii) of this 
        subparagraph, shall be approved by the business 
        opportunity specialist prior to the Program Participant 
        being eligible for award of a contract pursuant to 
        section 8(a).
                  (ii) The plans submitted under this 
                subparagraph shall include the following:
                          (I) An analysis of market potential, 
                        competitive environment, and other 
                        business analyses estimating the 
                        Program Participant's prospects for 
                        profitable operations during the term 
                        of program participation and after 
                        graduation.
                          (II) An analysis of the Program 
                        Participant's strengths and weaknesses 
                        with particular attention to correcting 
                        any financial, managerial, technical, 
                        or personnel conditions which are 
                        likely to impede the small business 
                        concern from receiving contracts other 
                        than those awarded under section 8(a).
                          (III) Specific targets, objectives, 
                        and goals, for the business development 
                        of the Program Participant during the 
                        next and succeeding years utilizing the 
                        results of the analyses conducted 
                        pursuant to subclauses (I) and (II).
                          (IV) A transition management plan 
                        outlining specific steps to assure 
                        profitable business operations after 
                        graduation (to be incorporated into the 
                        Program Participant's plan during the 
                        first year of the transitional stage of 
                        Program participation).
                          (V) Estimates of contract awards 
                        pursuant to section 8(a) and from other 
                        sources, which the Program Participant 
                        will require to meet the specific 
                        targets, objectives, and goals for the 
                        years covered by its plan. The 
                        estimates established shall be 
                        consistent with the provisions of 
                        subparagraph (I) and section 8(a).
                  (iii) Each Program Participant shall annually 
                review its currently approved plan with its 
                Business Opportunity Specialist and modify such 
                plan as may be appropriate. Any modified plan 
                shall be submitted to the Administration for 
                approval. The currently approved plan shall be 
                considered valid until such time as a modified 
                plan is approved by the Business Opportunity 
                Specialist. Annual reviews pertaining to years 
                in the transitional stage of program 
                participation shall require, as appropriate, a 
                written verification that such Program 
                Participant has complied with the requirements 
                of subparagraph (I) relating to attaining 
                business activity from sources other than 
                contracts awarded pursuant to section 8(a).
                  (iv) Each Program Participant shall annually 
                forecast its needs for contract awards under 
                section 8(a) for the next program year and the 
                succeeding program year during the review of 
                its business plan, conducted pursuant to clause 
                (iii). Such forecast shall be known as the 
                section 8(a) contract support level and shall 
                be included in the Program Participant's 
                business plan. Such forecast shall include--
                          (I) the aggregate dollar value of 
                        contract support to be sought on a 
                        noncompetitive basis under section 
                        8(a), reflecting compliance with the 
                        requirements of subparagraph (I) 
                        relating to attaining business activity 
                        from sources other than contracts 
                        awarded pursuant to section 8(a),
                          (II) the types of contract 
                        opportunities being sought, identified 
                        by Standard Industrial Classification 
                        (SIC) Code or otherwise,
                          (III) an estimate of the dollar value 
                        of contract support to be sought on a 
                        competitive basis, and
                          (IV) such other information as may be 
                        requested by the Business Opportunity 
                        Specialist to provide effective 
                        business development assistance to the 
                        Program Participant.
          (E) A small business concern participating in the 
        program conducted under the authority of this paragraph 
        and eligible for the award of contracts pursuant to 
        section 8(a) shall be denied all such assistance if 
        such concern--
                  (i) voluntarily elects not to continue 
                participation;
                  (ii) completes the period of Program 
                participation as prescribed by paragraph (15);
                  (iii) is terminated pursuant to a termination 
                proceeding conducted in accordance with section 
                8(a)(9); or
                  (iv) is graduated pursuant to a graduation 
                proceeding conducted in accordance with section 
                8(a)(9).
          (F) For the purposes of section and 8(a), the terms 
        ``terminated'' or ``termination'' means the total 
        denial or suspension of assistance under this paragraph 
        or under section 8(a) prior to the graduation of the 
        participating small business concern or prior to the 
        expiration of the maximum program participation in 
        term. An action for termination shall be based upon 
        good cause, including--
                  (i) the failure by such concern to maintain 
                its eligibility for Program participation;
                  (ii) the failure of the concern to engage in 
                business practices that will promote its 
                competitiveness within a reasonable period of 
                time as evidenced by, among other indicators, a 
                pattern of unjustified delinquent performance 
                or terminations for default with respect to 
                contracts awarded under the authority of 
                section 8(a);
                  (iii) a demonstrated pattern of failing to 
                make required submissions or responses to the 
                Administration in a timely manner;
                  (iv) the willful violation of any rule or 
                regulation of the Administration pertaining to 
                material issues;
                  (v) the debarment of the concern or its 
                disadvantaged owners by any agency pursuant to 
                subpart 9.4 of title 48, Code of Federal 
                Regulations (or any successor regulation); or
                  (vi) the conviction of the disadvantaged 
                owner or an officer of the concern for any 
                offense indicating a lack of business integrity 
                including any conviction for embezzlement, 
                theft, forgery, bribery, falsification or 
                violation of section 16. For purposes of this 
                clause, no termination action shall be taken 
                with respect to a disadvantaged owner solely 
                because of the conviction of an officer of the 
                concern (who is other than a disadvantaged 
                owner) unless such owner conspired with, 
                abetted, or otherwise knowingly acquiesced in 
                the activity or omission that was the basis of 
                such officer's conviction.
          (G) The Director of the Division may initiate a 
        termination proceeding by recommending such action to 
        the Associate Administrator for Minority Small Business 
        and Capital Ownership Development. Whenever the 
        Associate Administrator, or a designee of such officer, 
        determines such termination is appropriate, within 15 
        days after making such a determination the Program 
        Participant shall be provided a written notice of 
        intent to terminate, specifying the reasons for such 
        action. No Program Participant shall be terminated from 
        the Program pursuant to subparagraph (F) without first 
        being afforded an opportunity for a hearing in 
        accordance with section 8(a)(9).
          (H) For the purposes of sections 7(j) and 8(a) the 
        term ``graduated'' or ``graduation'' means that the 
        Program Participant is recognized as successfully 
        completing the program by substantially achieving the 
        targets, objectives, and goals contained in the 
        concern's business plan thereby demonstrating its 
        ability to compete in the marketplace without 
        assistance under this section or section 8(a).
          (I)(i) During the developmental stage of its 
        participation in the Program, a Program Participant 
        shall take all reasonable efforts within its control to 
        attain the targets contained in its business plan for 
        contracts awarded other than pursuant to section 8(a) 
        (hereinafter referred to as ``business activity 
        targets.''). Such efforts shall be made a part of the 
        business plan and shall be sufficient in scope and 
        duration to satisfy the Administration that the Program 
        Participant will engage a reasonable marketing strategy 
        that will maximize its potential to achieve its 
        business activity targets.
          (ii) During the transitional stage of the Program a 
        Program Participant shall be subject to regulations 
        regarding business activity targets that are 
        promulgated by the Administration pursuant to clause 
        (iii);
          (iii) The regulations referred to in clause (ii) 
        shall:
                  (I) establish business activity targets 
                applicable to Program Participants during the 
                fifth year and each succeeding year of Program 
                Participation; such targets, for such period of 
                time, shall reflect a reasonably consistent 
                increase in contracts awarded other than 
                pursuant to section 8(a), expressed as a 
                percentage of total sales; when promulgating 
                business activity targets the Administration 
                may establish modified targets for Program 
                Participants that have participated in the 
                Program for a period of longer than four years 
                on the effective date of this subparagraph;
                  (II) require a Program Participant to attain 
                its business activity targets;
                  (III) provide that, before the receipt of any 
                contract to be awarded pursuant to section 
                8(a), the Program Participant (if it is in the 
                transitional stage) must certify that it has 
                complied with the regulations promulgated 
                pursuant to subclause (II), or that it is in 
                compliance with such remedial measures as may 
                have been ordered pursuant to regulations 
                issued under subclause (V);
                  (IV) require the Administration to review 
                each Program Participant's performance 
                regarding attainment of business activity 
                targets during periodic reviews of such 
                Participant's business plan; and
                  (V) authorize the Administration to take 
                appropriate remedial measures with respect to a 
                Program Participant that has failed to attain a 
                required business activity target for the 
                purpose of reducing such Participant's 
                dependence on contracts awarded pursuant to 
                section 8(a); such remedial actions may 
                include, but are not limited to assisting the 
                Program Participant to expand the dollar volume 
                of its competitive business activity or 
                limiting the dollar volume of contracts awarded 
                to the Program Participant pursuant to section 
                8(a); except for actions that would constitute 
                a termination, remedial measures taken pursuant 
                to this subclause shall not be reviewable 
                pursuant to section 8(a)(9).
          (J)(i) The Administration shall conduct an evaluation 
        of a Program Participant's eligibility for continued 
        participation in the Program whenever it receives 
        specific and credible information alleging that such 
        Program Participant no longer meets the requirements 
        for Program eligibility. Upon making a finding that a 
        Program Participant is no longer eligible, the 
        Administration shall initiate a termination proceeding 
        in accordance with subparagraph (F). A Program 
        Participant's eligibility for award of any contract 
        under the authority of section 8(a) may be suspended 
        pursuant to subpart 9.4 of title 48, Code of Federal 
        Regulations (or any successor regulation).
          (ii)(I) Except as authorized by subclauses (II) or 
        (III), no award shall be made pursuant to section 8(a) 
        to a concern other than a small business concern.
          (II) In determining the size of a small business 
        concern owned by a socially and economically 
        disadvantaged Indian tribe (or a wholly owned business 
        entity of such tribe), each firm's size shall be 
        independently determined without regard to its 
        affiliation with the tribe, any entity of the tribal 
        government, or any other business enterprise owned by 
        the tribe, unless the Administrator determines that one 
        or more such tribally owned business concerns have 
        obtained, or are likely to obtain, a substantial unfair 
        competitive advantage within an industry category.
          (III) Any joint venture established under the 
        authority of section 602(b) of Public Law 100-656, the 
        ``Business Opportunity Development Reform Act of 
        1988'', shall be eligible for award of a contract 
        pursuant to section 8(a).
  (11)(A) The Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be responsible 
for coordinating and formulating policies relating to Federal 
assistance to small business concerns eligible for assistance 
under section 7(i) of this Act and small business concerns 
eligible to receive contracts pursuant to section 8(a) of this 
Act.
          (B)(i) Except as provided in clause (iii), no 
        individual who was determined pursuant to section 8(a) 
        to be socially and economically disadvantaged before 
        the effective date of this subparagraph shall be 
        permitted to assert such disadvantage with respect to 
        any other concern making application for certification 
        after such effective date.
                  (ii) Except as provided in clause (iii), any 
                individual upon whom eligibility is based 
                pursuant to section 8(a)(4) shall be permitted 
                to assert such eligibility for only one small 
                business concern.
                  (iii) A socially and economically 
                disadvantaged Indian tribe may own more than 
                one small business concern eligible for 
                assistance pursuant to section 7(j)(10) and 
                section 8(a) if--
                          (I) the Indian tribe does not own 
                        another firm in the same industry which 
                        has been determined to be eligible to 
                        receive contracts under this program, 
                        and
                          (II) the individuals responsible for 
                        the management and daily operations of 
                        the concern do not manage more than two 
                        Program Participants.
  (C) No concern, previously eligible for the award of 
contracts pursuant to section 8(a), shall be subsequently 
recertified for program participation if its prior 
participation in the program was concluded for any of the 
reasons described in paragraph (10)(E).
  (D) A concern eligible for the award of contracts pursuant to 
this subsection shall remain eligible for such contracts if 
there is a transfer of ownership and control (as defined 
pursuant to section 8(a)(4)) to individuals who are determined 
to be socially and economically disadvantaged pursuant to 
section 8(a). In the event of such a transfer, the concern, if 
not terminated or graduated, shall be eligible for a period of 
continued participation in the program not to exceed the time 
limitations prescribed in paragraph (15).
  (E) There is established a Division of Program Certification 
and Eligibility (hereinafter referred to in this paragraph as 
the Division'') that shall be made part of the Office of 
Minority Small Business and Capital Ownership Development. The 
Division shall be headed by a Director who shall report 
directly to the Associate Administrator for Minority Small 
Business and Capital Ownership Development. The Division shall 
establish field offices within such regional offices of the 
Administration as may be necessary to perform efficiently its 
functions and responsibilities.
  (F) Subject to the provisions of section 8(a)(9), the 
functions and responsibility of the Division are to--
          (i) receive, review and evaluate applications for 
        certification pursuant to paragraphs (4), (5), (6) and 
        (7) of section 8(a);
          (ii) advise each program applicant within 15 days 
        after the receipt of an application as to whether such 
        application is complete and suitable for evaluation 
        and, if not, what matters must be rectified;
          (iii) render recommendations on such applications to 
        the Associate Administrator for Minority Small Business 
        and Capital Ownership Development;
          (iv) review and evaluate financial statements and 
        other submissions from concerns participating in the 
        program established by paragraph (10) to ascertain 
        continued eligibility to receive subcontracts pursuant 
        to section 8(a);
          (v) make a request for the initiation of termination 
        or graduation proceedings, as appropriate, to the 
        Associate Administrator for Minority Small Business and 
        Capital Ownership Development;
          (vi) make recommendations to the Associate 
        Administrator for Minority Small Business and Capital 
        Ownership Development concerning protests from 
        applicants that have been denied program admission;
          (vii) decide protests regarding the status of a 
        concern as a disadvantaged concern for purposes of any 
        program or activity conducted under the authority of 
        subsection (d) of section 8, or any other provision of 
        Federal law that references such subsection for a 
        definition of program eligibility; and
          (vii) implement such policy directives as may be 
        issued by the Associate Administrator for Minority 
        Small Business and Capital Ownership Development 
        pursuant to subparagraph (I) regarding, among other 
        things, the geographic distribution of concerns to be 
        admitted to the program and the industrial make-up of 
        such concerns.
  (G) An applicant shall not be denied admission into the 
program established by paragraph (10) due solely to a 
determination by the Division that specific contract 
opportunities are unavailable to assist in the development of 
such concern unless--
          (i) the Government has not previously procured and is 
        unlikely to procure the types of products or services 
        offered by the concern; or
          (ii) the purchases of such products or services by 
        the Federal Government will not be in quantities 
        sufficient to support the developmental needs of the 
        applicant and other Program Participants providing the 
        same or similar items or services.
          (H) Not later than 90 days after receipt of a 
        completed application for Program certification, the 
        Associate Administrator for Minority Small Business and 
        Capital Ownership Development shall certify a small 
        business concern as a Program Participant or shall deny 
        such application.
  (I) Thirty days before the conclusion of each fiscal year, 
the Director of the Division shall review all concerns that 
have been admitted into the Program during the preceding 12-
month period. The review shall ascertain the number of 
entrants, their geographic distribution and industrial 
classification. The Director shall also estimate the expected 
growth of the Program during the next fiscal year and the 
number of additional Business Opportunity Specialists, if any, 
that will be needed to meet the anticipated demand for the 
Program. The findings and conclusions of the Director shall be 
reported to the Associate Administrator for Minority Small 
Business and Capital Ownership Development by September 30 of 
each year. Based on such report and such additional data as may 
be relevant, the Associate Administrator shall, by October 31 
of each year, issue policy and program directives applicable to 
such fiscal year that--
          (i) establish priorities for the solicitation of 
        program applications from underrepresented regions and 
        industry categories;
          (ii) assign staffing levels and allocate other 
        program resources as necessary to meet program needs; 
        and
          (iii) establish priorities in the processing and 
        admission of new Program Participants as may be 
        necessary to achieve an equitable geographic 
        distribution of concerns and a distribution of concerns 
        across all industry categories in proportions needed to 
        increase significantly contract awards to small 
        business concerns owned and controlled by socially and 
        economically disadvantaged individuals. When 
        considering such increase the Administration shall give 
        due consideration to those industrial categories where 
        Federal purchases have been substantial but where the 
        participation rate of such concerns has been limited.
  (12)(A) The Administration shall segment the Capital 
Ownership Development Program into two stages: a developmental 
stage; and a transitional stage.
  (B) The developmental stage of program participation shall be 
designed to assist the concern in its effort to overcome its 
economic disadvantage by providing such assistance as may be 
necessary and appropriate to access its markets and to 
strengthen its financial and managerial skills.
  (C) The transitional stage of program participation shall be 
designed to overcome, insofar as practicable, the remaining 
elements of economic disadvantage and to prepare such concern 
for graduation from the program.
  (13) A Program Participant, if otherwise eligible, shall be 
qualified to receive the following assistance during the stages 
of program participation specified in paragraph 12:
          (A) Contract support pursuant to section 8(a).
          (B) Financial assistance pursuant to section 
        7(a)(20).
          (C) A maximum of two exemptions from the requirements 
        of section 1(a) of the Act entitled ``An Act providing 
        conditions for the purchase of supplies and the making 
        of contracts by the United States, and for other 
        purposes'', approved June 30, 1936 (49 Stat. 2036), 
        which exemptions shall apply only to contracts awarded 
        pursuant to section (8)(a) and shall only be used to 
        allow for contingent agreements by a small business 
        concern to acquire the machinery, equipment, 
        facilities, or labor needed to perform such contracts. 
        No exemption shall be made pursuant to this 
        subparagraph if the contract to which it pertains has 
        an anticipated value in excess of $10,000,000. This 
        subparagraph shall cease to be effective on October 1, 
        1992.
          (D) A maximum of five exemptions from the 
        requirements of the Act entitled ``An Act requiring 
        contracts for the construction, alteration and repair 
        of any public building or public work of the United 
        States to be accompanied by a performance bond 
        protecting the United States and by an additional bond 
        for the protection of persons furnishing material and 
        labor for the construction, alteration, or repair of 
        said public buildings or public works'', approved 
        August 24, 1935 (49 Stat. 793), which exemptions shall 
        apply only to contracts awarded pursuant to section 
        8(a), except that, such exemptions may be granted under 
        this subparagraph only if--
                  (i) the Administration finds that such 
                concern is unable to obtain the requisite bond 
                or bonds from a surety and that no surety is 
                willing to issue a bond subject to the 
                guarantee provision of title IV of the Small 
                Business Investment Act of 1958 (15 U.S.C. 692 
                et seq.);
                  (ii) the Administration and the agency 
                providing the contracting opportunity have 
                provided for the protection of persons 
                furnishing materials or labor to the Program 
                Participant by arranging for the direct 
                disbursement of funds due to such persons by 
                the procuring agency or through any bank the 
                deposits of which are insured by the Federal 
                Deposit Insurance Corporation; and
                  (iii) the contract to which it pertains does 
                not exceed $3,000,000 in amount. This 
                subparagraph shall cease to be effective on 
                October 1, 1994.
          (E) Financial assistance whereby the Administration 
        may purchase in whole or in part, and on behalf of such 
        concerns, skills training or upgrading for employees or 
        potential employees of such concerns. Such assistance 
        may be made without regard to section 18(a). Assistance 
        may be made by direct payment to the training provider 
        or by reimbursing the Program Participant or the 
        Participant's employee, if such reimbursement is found 
        to be reasonable and appropriate. For purposes of this 
        subparagraph the term ``training provider'' shall mean 
        an institution of higher education, a community or 
        vocational college, or an institution eligible to 
        provide skills training or upgrading under title I of 
        the Workforce Innovation and Opportunity Act. The 
        Administration shall, in consultation with the 
        Secretary of Labor, promulgate rules and regulations to 
        implement this subparagraph that establish acceptable 
        training and upgrading performance standards and 
        provide for such monitoring or audit requirements as 
        may be necessary to ensure the integrity of the 
        training effort. No financial assistance shall be 
        granted under the subparagraph unless the Administrator 
        determines that--
                  (i) such concern has documented that it has 
                first explored the use of existing cost-free or 
                cost-subsidized training programs offered by 
                public and private sector agencies working with 
                programs of employment and training and 
                economic development;
                  (ii) no more than five employees or potential 
                employees of such concern are recipients of any 
                benefits under this subparagraph at any one 
                time;
                  (iii) no more than $2,500 shall be made 
                available for any one employee or potential 
                employee;
                  (iv) the length of training or upgrading 
                financed by this subparagraph shall be no less 
                than one month nor more than six months;
                  (v) such concern has given adequate assurance 
                it will employ the trainee or upgraded employee 
                for at least six months after the training or 
                upgrading financed by this subparagraph has 
                been completed and each trainee or upgraded 
                employee has provided a similar assurance to 
                remain within the employ of such concern for 
                such period; if such concern, trainee, or 
                upgraded employee breaches this agreement, the 
                Administration shall be entitled to and shall 
                make diligent efforts to obtain from the 
                violating party the repayment of all funds 
                expended on behalf of the violating party, such 
                repayment shall be made to the Administration 
                together with such interest and costs of 
                collection as may be reasonable; the violating 
                party shall be barred from receiving any 
                further assistance under this subparagraph;
                  (vi) the training to be financed may take 
                place either at such concern's facilities or at 
                those of the training provider; and
                  (vii) such concern will maintain such records 
                as the Administration deems appropriate to 
                ensure that the provisions of this paragraph 
                and any other applicable law have not been 
                violated.
          (F)(i) The transfer of technology or surplus property 
        owned by the United States to such a concern. 
        Activities designed to effect such transfer shall be 
        developed in cooperation with the heads of Federal 
        agencies and shall include the transfer by grant, 
        license, or sale of such technology or property to such 
        a concern. Such property may be transferred to Program 
        Participants on a priority basis. Technology or 
        property transferred under this subparagraph shall be 
        used by the concern during the normal conduct of its 
        business operation and shall not be sold or transferred 
        to any other party (other than the Government) during 
        such concern's term of participation in the Program and 
        for one year thereafter.
                  (ii)(I) In this clause--
                          (aa) the term ``covered period'' 
                        means the 2-year period beginning on 
                        the date on which the President 
                        declared the applicable major disaster; 
                        and
                          (bb) the term ``disaster area'' means 
                        the area for which the President has 
                        declared a major disaster, during the 
                        covered period.
                  (II) The Administrator may transfer 
                technology or surplus property under clause (i) 
                on a priority basis to a small business concern 
                located in a disaster area if--
                          (aa) the small business concern meets 
                        the requirements for such a transfer, 
                        without regard to whether the small 
                        business concern is a Program 
                        Participant; and
                          (bb) for a small business concern 
                        that is a Program Participant, on and 
                        after the date on which the President 
                        declared the applicable major disaster, 
                        the small business concern has not 
                        received property under this 
                        subparagraph on the basis of the status 
                        of the small business concern as a 
                        Program Participant.
                  (III) For any transfer of property under this 
                clause to a small business concern, the terms 
                and conditions shall be the same as a transfer 
                to a Program Participant, except that the small 
                business concern shall agree not to sell or 
                transfer the property to any party other than 
                the Federal Government during the covered 
                period.
                  (IV) A small business concern that receives a 
                transfer of property under this clause may not 
                receive a transfer of property under clause (i) 
                during the covered period.
                  (V) If a small business concern sells or 
                transfers property in violation of the 
                agreement described in subclause (III), the 
                Administrator may initiate proceedings to 
                prohibit the small business concern from 
                receiving a transfer of property under this 
                clause or clause (i), in addition to any other 
                remedy available to the Administrator.
          (G) Training assistance whereby the Administration 
        shall conduct training sessions to assist individuals 
        and enterprises eligible to receive contracts under 
        section 8(a) in the development of business principles 
        and strategies to enhance their ability to successfully 
        compete for contracts in the marketplace.
          (H) Joint ventures, leader-follower arrangements, and 
        teaming agreements between the Program Participant and 
        other Program Participants and other business concerns 
        with respect to contracting opportunities for the 
        research, development, full-scale engineering or 
        production of major systems. Such activities shall be 
        undertaken on the basis of programs developed by the 
        agency responsible for the procurement of the major 
        system, with the assistance of the Administration.
          (I) Transitional management business planning 
        training and technical assistance.
          (J) Program Participants in the developmental stage 
        of Program participation shall be eligible for the 
        assistance provided by subparagraphs (A), (B), (C), 
        (D), (E), (F), and (G).
  (14) Program Participants in the transitional stage of 
Program participation shall be eligible for the assistance 
provided by subparagraphs (A), (B), (F), (G), (H), and (I) of 
paragraph (13).
  (15) Subject to the provisions of paragraph (10)(C), a small 
business concern may receive developmental assistance under the 
Program and contracts under section 8(a) for a total period of 
not longer than nine years, measured from the date of its 
certification under the authority of such section, of which--
          (A) no more than four years may be spent in the 
        developmental stage of Program Participation; and
          (B) no more than five years may be spent in the 
        transitional stage of Program Participation.
  (16)(A) The Administrator shall develop and implement a 
process for the systematic collection of data on the operations 
of the Program established pursuant to paragraph (10).
  (B) Not later than April 30 of each year, the Administrator 
shall submit a report to the Congress on the Program that shall 
include the following:
          (i) The average personal net worth of individuals who 
        own and control concerns that were initially certified 
        for participation in the Program during the immediately 
        preceding fiscal year. The Administrator shall also 
        indicate the dollar distribution of net worths, at 
        $50,000 increments, of all such individuals found to be 
        socially and economically disadvantaged. For the first 
        report required pursuant to this paragraph the 
        Administrator shall also provide the data specified in 
        the preceding sentence for all eligible individuals in 
        the Program as of the effective date of this paragraph.
          (ii) A description and estimate of the benefits and 
        costs that have accrued to the economy and the 
        Government in the immediately preceding fiscal year due 
        to the operations of those business concerns that were 
        performing contracts awarded pursuant to section 8(a).
          (iii) A compilation and evaluation of those business 
        concerns that have exited the Program during the 
        immediately preceding three fiscal years. Such 
        compilation and evaluation shall detail the number of 
        concerns actively engaged in business operations, those 
        that have ceased or substantially curtailed such 
        operations, including the reasons for such actions, and 
        those concerns that have been acquired by other firms 
        or organizations owned and controlled by other than 
        socially and economically disadvantaged individuals. 
        For those businesses that have continued operations 
        after they exited from the Program, the Administrator 
        shall also separately detail the benefits and costs 
        that have accrued to the economy during the immediately 
        preceding fiscal year due to the operations of such 
        concerns.
          (iv) A listing of all participants in the Program 
        during the preceding fiscal year identifying, by State 
        and by Region, for each firm: the name of the concern, 
        the race or ethnicity, and gender of the disadvantaged 
        owners, the dollar value of all contracts received in 
        the preceding year, the dollar amount of advance 
        payments received by each concern pursuant to contracts 
        awarded under section 8(a), and a description including 
        (if appropriate) an estimate of the dollar value of all 
        benefits received pursuant to paragraphs (13) and (14) 
        and section 7(a)(20) during such year.
          (v) The total dollar value of contracts and options 
        awarded during the preceding fiscal year pursuant to 
        section 8(a) and such amount expressed as a percentage 
        of total sales of (I) all firms participating in the 
        Program during such year; and (II) of firms in each of 
        the nine years of program participation.
          (vi) A description of such additional resources or 
        program authorities as may be required to provide the 
        types of services needed over the next two-year period 
        to service the expected portfolio of firms certified 
        pursuant to section 8(a).
          (vii) The total dollar value of contracts and options 
        awarded pursuant to section 8(a), at such dollar 
        increments as the Administrator deems appropriate, for 
        each four digit standard industrial classification code 
        under which such contracts and options were classified.
  (C) The first report required by subparagraph (B) shall 
pertain to fiscal year 1990.
  (k) In carrying out its functions under subsections 7(i), 
7(j), and 8(a) of this Act, the Administration is authorized--
          (1) to utilize, with their consent, the services and 
        facilities of Federal agencies without reimbursement, 
        and, with the consent of any State or political 
        subdivision of a State, accept and utilize the services 
        and facilities of such State or subdivision without 
        reimbursement;
          (2) to accept, in the name of the Administration, and 
        employ or dispose of in furtherance of the purposes of 
        this Act, any money or property, real, personal, or 
        mixed, tangible, or intangible, received by gift, 
        device, bequest, or otherwise;
          (3) to accept voluntary and uncompensated services, 
        notwithstanding the provisions of section 3679(b) of 
        the Revised Statutes (31 U.S.C. 655(b)); and
          (4) to employ experts and consultants or 
        organizations thereof as authorized by section 15 of 
        the Administrative Expenses Act of 1946 (5 U.S.C. 55a), 
        except that no individual may be employed under the 
        authority of this subsection for more than one hundred 
        days in any fiscal year; to compensate individuals so 
        employed at rates not in excess of the daily equivalent 
        of the highest rate payable under section 5332 of title 
        5, United States Code, including traveltime; and to 
        allow them, while away from their homes or regular 
        places of business, travel expenses (including per diem 
        in lieu of subsistence) a authorized by section 5 of 
        such Act (5 U.S.C. 73b-2) for persons in the Government 
        service employed intermittently, while so employed: 
        Provided, however, That contracts for such employment 
        may be renewed annually.
  (l) Small Business Intermediary Lending Pilot Program.--
          (1) Definitions.--In this subsection--
                  (A) the term ``eligible intermediary''--
                          (i) means a private, nonprofit entity 
                        that--
                                  (I) seeks or has been awarded 
                                a loan from the Administrator 
                                to make loans to small business 
                                concerns under this subsection; 
                                and
                                  (II) has not less than 1 year 
                                of experience making loans to 
                                startup, newly established, or 
                                growing small business 
                                concerns; and
                          (ii) includes--
                                  (I) a private, nonprofit 
                                community development 
                                corporation;
                                  (II) a consortium of private, 
                                nonprofit organizations or 
                                nonprofit community development 
                                corporations; and
                                  (III) an agency of or 
                                nonprofit entity established by 
                                a Native American Tribal 
                                Government; and
                  (B) the term ``Program'' means the small 
                business intermediary lending pilot program 
                established under paragraph (2).
          (2) Establishment.--There is established a 3-year 
        small business intermediary lending pilot program, 
        under which the Administrator may make direct loans to 
        eligible intermediaries, for the purpose of making 
        loans to startup, newly established, and growing small 
        business concerns.
          (3) Purposes.--The purposes of the Program are--
                  (A) to assist small business concerns in 
                areas suffering from a lack of credit due to 
                poor economic conditions or changes in the 
                financial market; and
                  (B) to establish a loan program under which 
                the Administrator may provide loans to eligible 
                intermediaries to enable the eligible 
                intermediaries to provide loans to startup, 
                newly established, and growing small business 
                concerns for working capital, real estate, or 
                the acquisition of materials, supplies, or 
                equipment.
          (4) Loans to eligible intermediaries.--
                  (A) Application.--Each eligible intermediary 
                desiring a loan under this subsection shall 
                submit an application to the Administrator that 
                describes--
                          (i) the type of small business 
                        concerns to be assisted;
                          (ii) the size and range of loans to 
                        be made;
                          (iii) the interest rate and terms of 
                        loans to be made;
                          (iv) the geographic area to be served 
                        and the economic, poverty, and 
                        unemployment characteristics of the 
                        area;
                          (v) the status of small business 
                        concerns in the area to be served and 
                        an analysis of the availability of 
                        credit; and
                          (vi) the qualifications of the 
                        applicant to carry out this subsection.
                  (B) Loan limits.--No loan may be made to an 
                eligible intermediary under this subsection if 
                the total amount outstanding and committed to 
                the eligible intermediary by the Administrator 
                would, as a result of such loan, exceed 
                $1,000,000 during the participation of the 
                eligible intermediary in the Program.
                  (C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be 
                for a term of 20 years.
                  (D) Applicable interest rates.--Loans made by 
                the Administrator to an eligible intermediary 
                under the Program shall bear an annual interest 
                rate equal to 1.00 percent.
                  (E) Fees; collateral.--The Administrator may 
                not charge any fees or require collateral with 
                respect to any loan made to an eligible 
                intermediary under this subsection.
                  (F) Delayed payments.--The Administrator 
                shall not require the repayment of principal or 
                interest on a loan made to an eligible 
                intermediary under the Program during the 2-
                year period beginning on the date of the 
                initial disbursement of funds under that loan.
                  (G) Maximum participants and amounts.--During 
                each of fiscal years 2011, 2012, and 2013, the 
                Administrator may make loans under the 
                Program--
                          (i) to not more than 20 eligible 
                        intermediaries; and
                          (ii) in a total amount of not more 
                        than $20,000,000.
          (5) Loans to small business concerns.--
                  (A) In general.--The Administrator, through 
                an eligible intermediary, shall make loans to 
                startup, newly established, and growing small 
                business concerns for working capital, real 
                estate, and the acquisition of materials, 
                supplies, furniture, fixtures, and equipment.
                  (B) Maximum loan.--An eligible intermediary 
                may not make a loan under this subsection of 
                more than $200,000 to any 1 small business 
                concern.
                  (C) Applicable interest rates.--A loan made 
                by an eligible intermediary to a small business 
                concern under this subsection, may have a fixed 
                or a variable interest rate, and shall bear an 
                interest rate specified by the eligible 
                intermediary in the application of the eligible 
                intermediary for a loan under this subsection.
                  (D) Review restrictions.--The Administrator 
                may not review individual loans made by an 
                eligible intermediary to a small business 
                concern before approval of the loan by the 
                eligible intermediary.
          (6) Termination.--The authority of the Administrator 
        to make loans under the Program shall terminate 3 years 
        after the date of enactment of the Small Business Job 
        Creation and Access to Capital Act of 2010.
  (m) Microloan Program.--
          (1)(A) Purposes.--The purposes of the Microloan 
        Program are--
                  (i) to assist women, low-income, veteran 
                (within the meaning of such term under section 
                3(q)), and minority entrepreneurs and business 
                owners and other individuals possessing the 
                capability to operate successful business 
                concerns;
                  (ii) to assist small business concerns in 
                those areas suffering from a lack of credit due 
                to economic downturns;
                  (iii) to establish a microloan program to be 
                administered by the Small Business 
                Administration--
                          (I) to make loans to eligible 
                        intermediaries to enable such 
                        intermediaries to provide small-scale 
                        loans, particularly loans in amounts 
                        averaging not more than $10,000, to 
                        startup, newly established, or growing 
                        small business concerns for working 
                        capital or the acquisition of 
                        materials, supplies, or equipment;
                          (II) to make grants to eligible 
                        intermediaries that, together with non-
                        Federal matching funds, will enable 
                        such intermediaries to provide 
                        intensive marketing, management, and 
                        technical assistance to microloan 
                        borrowers;
                          (III) to make grants to eligible 
                        nonprofit entities that, together with 
                        non-Federal matching funds, will enable 
                        such entities to provide intensive 
                        marketing, management, and technical 
                        assistance to assist low-income 
                        entrepreneurs and other low-income 
                        individuals obtain private sector 
                        financing for their businesses, with or 
                        without loan guarantees; and
                          (IV) to report to the Committees on 
                        Small Business of the Senate and the 
                        House of Representatives on the 
                        effectiveness of the microloan program 
                        and the advisability and feasibility of 
                        implementing such a program nationwide; 
                        and
                  (iv) to establish a welfare-to-work microloan 
                initiative, which shall be administered by the 
                Administration, in order to test the 
                feasibility of supplementing the technical 
                assistance grants provided under clauses (ii) 
                and (iii) of subparagraph (B) to individuals 
                who are receiving assistance under the State 
                program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.), or 
                under any comparable State funded means tested 
                program of assistance for low-income 
                individuals, in order to adequately assist 
                those individuals in--
                          (I) establishing small businesses; 
                        and
                          (II) eliminating their dependence on 
                        that assistance.
          (B) Establishment.--There is established a microloan 
        program, under which the Administration may--
                  (i) make direct loans to eligible 
                intermediaries, as provided under paragraph 
                (3), for the purpose of making short-term, 
                fixed interest rate microloans to startup, 
                newly established, and growing small business 
                concerns under paragraph (6);
                  (ii) in conjunction with such loans and 
                subject to the requirements of paragraph (4), 
                make grants to such intermediaries for the 
                purpose of providing intensive marketing, 
                management, and technical assistance to small 
                business concerns that are borrowers under this 
                subsection; and
                  (iii) subject to the requirements of 
                paragraph (5), make grants to nonprofit 
                entities for the purpose of providing 
                marketing, management, and technical assistance 
                to low-income individuals seeking to start or 
                enlarge their own businesses, if such 
                assistance includes working with the grant 
                recipient to secure loans in amounts not to 
                exceed $50,000 from private sector lending 
                institutions, with or without a loan guarantee 
                from the nonprofit entity.
          (2) Eligibility for participation.--An intermediary 
        shall be eligible to receive loans and grants under 
        subparagraphs (B)(i) and (B)(ii) of paragraph (1) if 
        it--
                  (A) meets the definition in paragraph (10); 
                and
                  (B) has at least 1 year of experience making 
                microloans to startup, newly established, or 
                growing small business concerns and providing, 
                as an integral part of its microloan program, 
                intensive marketing, management, and technical 
                assistance to its borrowers.
          (3) Loans to intermediaries.--
                  (A) Intermediary applications.--(i) In 
                general.--As part of its application for a 
                loan, each intermediary shall submit a 
                description to the Administration of--
                          (I) the type of businesses to be 
                        assisted;
                          (II) the size and range of loans to 
                        be made;
                          (III) the geographic area to be 
                        served and its economic, proverty, and 
                        unemployment characteristics;
                          (IV) the status of small business 
                        concerns in the area to be served and 
                        an analysis of their credit and 
                        technical assistance needs;
                          (V) any marketing, management, and 
                        technical assistance to be provided in 
                        connection with a loan made under this 
                        subsection;
                          (VI) the local economic credit 
                        markets, including the costs associated 
                        with obtaining credit locally;
                          (VII) the qualifications of the 
                        applicant to carry out the purpose of 
                        this subsection; and
                          (VIII) any plan to involve other 
                        technical assistance providers (such as 
                        counselors from the Service Corps of 
                        Retired Executives or small business 
                        development centers) or private sector 
                        lenders in assisting selected business 
                        concerns.
                  (ii) Selection of intermediaries.--In 
                selecting intermediaries to participate in the 
                program established under this subsection, the 
                Administration shall give priority to those 
                applicants that provide loans in amounts 
                averaging not more than $10,000.
                  (B) Intermediary contribution.--As a 
                condition of any loan made to an intermediary 
                under subparagraph (B)(i) of paragraph (1), the 
                Administrator shall require the intermediary to 
                contribute not less than 15 percent of the loan 
                amount in cash from non-Federal sources.
                  (C) Loan limits.--Notwithstanding subsection 
                (a)(3), no loan shall be made under this 
                subsection if the total amount outstanding and 
                committed to one intermediary (excluding 
                outstanding grants) from the business loan and 
                investment fund established by this Act would, 
                as a result of such loan, exceed $750,000 in 
                the first year of such intermediary's 
                participation in the program, and $5,000,000 in 
                the remaining years of the intermediary's 
                participation in the program.
                  (D)(i) In general.--The Administrator shall, 
                by regulation, require each intermediary to 
                establish a loan loss reserve fund, and to 
                maintain such reserve fund until all 
                obligations owed to the Administration under 
                this subsection are repaid.
                  (ii) Level of loan loss reserve fund.--
                          (I) In general.--Subject to subclause 
                        (III), the Administrator shall require 
                        the loan loss reserve fund of an 
                        intermediary to be maintained at a 
                        level equal to 15 percent of the 
                        outstanding balance of the notes 
                        receivable owed to the intermediary.
                          (II) Review of loan loss reserve.--
                        After the initial 5 years of an 
                        intermediary's participation in the 
                        program authorized by this subsection, 
                        the Administrator shall, at the request 
                        of the intermediary, conduct a review 
                        of the annual loss rate of the 
                        intermediary. Any intermediary in 
                        operation under this subsection prior 
                        to October 1, 1994, that requests a 
                        reduction in its loan loss reserve 
                        shall be reviewed based on the most 
                        recent 5-year period preceding the 
                        request.
                          (III) Reduction of loan loss 
                        reserve.--Subject to the requirements 
                        of clause IV, the Administrator may 
                        reduce the annual loan loss reserve 
                        requirement of an intermediary to 
                        reflect the actual average loan loss 
                        rate for the intermediary during the 
                        preceding 5-year period, except that in 
                        no case shall the loan loss reserve be 
                        reduced to less than 10 percent of the 
                        outstanding balance of the notes 
                        receivable owed to the intermediary.
                          (IV) Requirements.--The Administrator 
                        may reduce the annual loan loss reserve 
                        requirement of an intermediary only if 
                        the intermediary demonstrates to the 
                        satisfaction of the Administrator 
                        that--
                                  (aa) the average annual loss 
                                rate for the intermediary 
                                during the preceding 5-year 
                                period is less than 15 percent; 
                                and
                                  (bb) that no other factors 
                                exist that may impair the 
                                ability of the intermediary to 
                                repay all obligations owed to 
                                the Administration under this 
                                subsection.
                  (E) Unavailability of comparable credit.--An 
                intermediary may make a loan under this 
                subsection of more than $20,000 to a small 
                business concern only if such small business 
                concern demonstrates that it is unable to 
                obtain credit elsewhere at comparable interest 
                rates and that it has good prospects for 
                success. In no case shall an intermediary make 
                a loan under this subsection of more than 
                $50,000, or have outstanding or committed to 
                any 1 borrower more than $50,000.
                  (F) Loan duration; interest rates.--
                          (i) Loan duration.--Loans made by the 
                        Administration under this subsection 
                        shall be for a term of 10 years.
                          (ii) Applicable interest rates.--
                        Except as provided in clause (iii), 
                        loans made by the Administration under 
                        this subsection to an intermediary 
                        shall bear an interest rate equal to 
                        1.25 percentage points below the rate 
                        determined by the Secretary of the 
                        Treasury for obligations of the United 
                        States with a period of maturity of 5 
                        years, adjusted to the nearest one-
                        eighth of 1 percent.
                          (iii) Rates applicable to certain 
                        small loans.--Loans made by the 
                        Administration to an intermediary that 
                        makes loans to small business concerns 
                        and entrepreneurs averaging not more 
                        than $7,500, shall bear an interest 
                        rate that is 2 percentage points below 
                        the rate determined by the Secretary of 
                        the Treasury for obligations of the 
                        United States with a period of maturity 
                        of 5 years, adjusted to the nearest 
                        one-eighth of 1 percent.
                          (iv) Rates applicable to multiple 
                        sites or offices.--The interest rate 
                        prescribed in clause (ii) or (iii) 
                        shall apply to each separate loan-
                        making site or office of 1 intermediary 
                        only if such site or office meets the 
                        requirements of that clause.
                          (v) Rate basis.--The applicable rate 
                        of interest under this paragraph 
                        shall--
                                  (I) be applied retroactively 
                                for the first year of an 
                                intermediary's participation in 
                                the program, based upon the 
                                actual lending practices of the 
                                intermediary as determined by 
                                the Administration prior to the 
                                end of such year; and
                                  (II) be based in the second 
                                and subsequent years of an 
                                intermediary's participation in 
                                the program, upon the actual 
                                lending practices of the 
                                intermediary during the term of 
                                the intermediary's 
                                participation in the program.
                          (vii) Covered intermediaries.--The 
                        interest rates prescribed in this 
                        subparagraph shall apply to all loans 
                        made to intermediaries under this 
                        subsection on or after October 28, 
                        1991.
                  (G) Delayed payments.--The Administration 
                shall not require repayment of interest or 
                principal of a loan made to an intermediary 
                under this subsection during the first year of 
                the loan.
                  (H) Fees; collateral.--Except as provided in 
                subparagraphs (B) and (D), the Administration 
                shall not charge any fees or require collateral 
                other than an assignment of the notes 
                receivable of the microloans with respect to 
                any loan made to an intermediary under this 
                subsection.
          (4) Marketing, management and technical assistance 
        grants to intermediaries.--Grants made in accordance 
        with subparagraph (B)(ii) of paragraph (1) shall be 
        subject to the following requirements:
                  (A) Grant amounts.--Except as otherwise 
                provided in subparagraph (C) and subject to 
                subparagraph (B), each intermediary that 
                receives a loan under subparagraph (B)(i) of 
                paragraph (1) shall be eligible to receive a 
                grant to provide marketing, management, and 
                technical assistance to small business concerns 
                that are borrowers under this subsection. 
                Except as provided in subparagraph (C), each 
                intermediary meeting the requirements of 
                subparagraph (B) may receive a grant of not 
                more than 25 percent of the total outstanding 
                balance of loans made to it under this 
                subsection.
                  (B) Contribution.--As a condition of a grant 
                made under subparagraph (A), the Administrator 
                shall require the intermediary to contribute an 
                amount equal to 25 percent of the amount of the 
                grant, obtained solely from non-Federal 
                sources. In addition to cash or other direct 
                funding, the contribution may include indirect 
                costs or in-kind contributions paid for under 
                non-Federal programs.
                  (C) Additional technical assistance grants 
                for making certain loans.--
                          (i) In general.--In addition to 
                        grants made under subparagraph (A), 
                        each intermediary shall be eligible to 
                        receive a grant equal to 5 percent of 
                        the total outstanding balance of loans 
                        made to the intermediary under this 
                        subsection if--
                                  (I) the intermediary provides 
                                not less than 25 percent of its 
                                loans to small business 
                                concerns located in or owned by 
                                one or more residents of an 
                                economically distressed area; 
                                or
                                  (II) the intermediary has a 
                                portfolio of loans made under 
                                this subsection that averages 
                                not more than $10,000 during 
                                the period of the 
                                intermediary's participation in 
                                the program.
                          (ii) Purposes.--A grant awarded under 
                        clause (i) may be used to provide 
                        marketing, management, and technical 
                        assistance to small business concerns 
                        that are borrowers under this 
                        subsection.
                          (iii) Contribution exception.--The 
                        contribution requirements in 
                        subparagraph (B) do not apply to grants 
                        made under this subparagraph.
                  (D) Eligibility for multiple sites or 
                offices.--The eligibility for a grant described 
                in subparagraph (A) or (C) shall be determined 
                separately for each loan-making site or office 
                of 1 intermediary.
                  (E) Assistance to certain small business 
                concerns.--
                          (i) In general.--Each intermediary 
                        may expend an amount not to exceed [25] 
                        50 percent of the grant funds received 
                        under paragraph (1)(B)(ii) to provide 
                        information and technical assistance to 
                        small business concerns that are 
                        prospective borrowers under this 
                        subsection.
                          (ii) Technical assistance.--An 
                        intermediary may expend not more than 
                        [25] 50 percent of the funds received 
                        under paragraph (1)(B)(ii) to enter 
                        into third party contracts for the 
                        provision of technical assistance.
                  (F) Supplemental grant.--
                          (i) In general.--The Administration 
                        may accept any funds transferred to the 
                        Administration from other departments 
                        or agencies of the Federal Government 
                        to make grants in accordance with this 
                        subparagraph and section 202(b) of the 
                        Small Business Reauthorization Act of 
                        1997 to participating intermediaries 
                        and technical assistance providers 
                        under paragraph (5), for use in 
                        accordance with clause (iii) to provide 
                        additional technical assistance and 
                        related services to recipients of 
                        assistance under a State program 
                        described in paragraph (1)(A)(iv) at 
                        the time they initially apply for 
                        assistance under this subparagraph.
                          (ii) Eligible recipients; grant 
                        amounts.--In making grants under this 
                        subparagraph, the Administration may 
                        select, from among participating 
                        intermediaries and technical assistance 
                        providers described in clause (i), not 
                        more than 20 grantees in fiscal year 
                        1998, not more than 25 grantees in 
                        fiscal year 1999, and not more than 30 
                        grantees in fiscal year 2000, each of 
                        whom may receive a grant under this 
                        subparagraph in an amount not to exceed 
                        $200,000 per year.
                          (iii) Use of grant amounts.--Grants 
                        under this subparagraph--
                                  (I) are in addition to other 
                                grants provided under this 
                                subsection and shall not 
                                require the contribution of 
                                matching amounts as a condition 
                                of eligibility; and
                                  (II) may be used by a 
                                grantee--
                                          (aa) to pay or 
                                        reimburse a portion of 
                                        child care and 
                                        transportation costs of 
                                        recipients of 
                                        assistance described in 
                                        clause (i), to the 
                                        extent such costs are 
                                        not otherwise paid by 
                                        State block grants 
                                        under the Child Care 
                                        Development Block Grant 
                                        Act of 1990 (42 U.S.C. 
                                        9858 et seq.) or under 
                                        part A of title IV of 
                                        the Social Security Act 
                                        (42 U.S.C. 601 et 
                                        seq.); and
                                          (bb) for marketing, 
                                        management, and 
                                        technical assistance to 
                                        recipients of 
                                        assistance described in 
                                        clause (i).
                          (iv) Memorandum of understanding.--
                        Prior to accepting any transfer of 
                        funds under clause (i) from a 
                        department or agency of the Federal 
                        Government, the Administration shall 
                        enter into a Memorandum of 
                        Understanding with the department or 
                        agency, which shall--
                                  (I) specify the terms and 
                                conditions of the grants under 
                                this subparagraph; and
                                  (II) provide for appropriate 
                                monitoring of expenditures by 
                                each grantee under this 
                                subparagraph and each recipient 
                                of assistance described in 
                                clause (i) who receives 
                                assistance from a grantee under 
                                this subparagraph, in order to 
                                ensure compliance with this 
                                subparagraph by those grantees 
                                and recipients of assistance.
          (5) Private sector borrowing technical assistance 
        grants.--Grants made in accordance with subparagraph 
        (B)(iii) of paragraph (1) shall be subject to the 
        following requirements:
                  (A) Grant amounts.--Subject to the 
                requirements of subparagraph (B), the 
                Administration may make not more than 55 grants 
                annually, each in amounts not to exceed 
                $200,000 for the purposes specified in 
                subparagraph (B)(iii) of paragraph (1).
                  (B) Contribution.--As a condition of any 
                grant made under subparagraph (A), the 
                Administration shall require the grant 
                recipient to contribute an amount equal to 20 
                percent of the amount of the grant, obtained 
                solely from non-Federal sources. In addition to 
                cash or other direct funding, the contribution 
                may include indirect costs or in-kind 
                contributions paid for under non-Federal 
                programs.
          (6) Loans to small business concerns from eligible 
        intermediaries.--
                  (A) In general.--An eligible intermediary 
                shall make short-term, fixed rate loans to 
                startup, newly established, and growing small 
                business concerns from the funds made available 
                to it under subparagraph (B)(i) of paragraph 
                (1) for working capital and the acquisition of 
                materials, supplies, furniture, fixtures, and 
                equipment.
                  (B) Portfolio requirement.--To the extent 
                practicable, each intermediary that operates a 
                microloan program under this subsection shall 
                maintain a microloan portfolio with an average 
                loan size of not more than $15,000.
                  (C) Interest limit.--Notwithstanding any 
                provision of the laws of any State or the 
                constitution of any State pertaining to the 
                rate or amount of interest that may be charged, 
                taken, received, or reserved on a loan, the 
                maximum rate of interest to be charged on a 
                microloan funded under this subsection shall 
                not exceed the rate of interest applicable to a 
                loan made to an intermediary by the 
                Administration--
                          (i) in the case of a loan of more 
                        than $7,500 made by the intermediary to 
                        a small business concern or 
                        entrepreneur by more than 7.75 
                        percentage points; and
                          (ii) in the case of a loan of not 
                        more than $7,500 made by the 
                        intermediary to a small business 
                        concern or entrepreneur by more than 
                        8.5 percentage points.
                  (D) Review restriction.--The Administration 
                shall not review individual microloans made by 
                intermediaries prior to approval.
                  (E) Establishment of child care or 
                transportation businesses.--In addition to 
                other eligible small businesses concerns, 
                borrowers under any program under this 
                subsection may include individuals who will use 
                the loan proceeds to establish for-profit or 
                nonprofit child care establishments or 
                businesses providing for-profit transportation 
                services.
          (7) Program funding for microloans.--
                  (A) Number of participants.--Under the 
                program authorized by this subsection, the 
                Administration may fund, on a competitive 
                basis, not more than 300 intermediaries.
                  (B) Allocation.--
                          (i) Minimum allocation.--Subject to 
                        the availability of appropriations, of 
                        the total amount of new loan funds made 
                        available for award under this 
                        subsection in each fiscal year, the 
                        Administration shall make available for 
                        award in each State (including the 
                        District of Columbia, the Commonwealth 
                        of Puerto Rico, the United States 
                        Virgin Islands, Guam, and American 
                        Samoa) an amount equal to the sum of--
                                  (I) the lesser of--
                                          (aa) $800,000; or
                                          (bb) \1/55\ of the 
                                        total amount of new 
                                        loan funds made 
                                        available for award 
                                        under this subsection 
                                        for that fiscal year; 
                                        and
                                  (II) any additional amount, 
                                as determined by the 
                                Administration.
                          (ii) Redistribution.--If, at the 
                        beginning of the third quarter of a 
                        fiscal year, the Administration 
                        determines that any portion of the 
                        amount made available to carry out this 
                        subsection is unlikely to be made 
                        available under clause (i) during that 
                        fiscal year, the Administration may 
                        make that portion available for award 
                        in any one or more States (including 
                        the District of Columbia, the 
                        Commonwealth of Puerto Rico, the United 
                        States Virgin Islands, Guam, and 
                        American Samoa) without regard to 
                        clause (i).
          (8) Equitable distribution of intermediaries.--In 
        approving microloan program applicants and providing 
        funding to intermediaries under this subsection, the 
        Administration shall select and provide funding to such 
        intermediaries as will ensure appropriate availability 
        of loans for small businesses in all industries located 
        throughout each State, particularly those located in 
        urban and in rural areas.
          (9) Grants for management, marketing, technical 
        assistance, and related services.--
                  (A) In general.--The Administration may 
                procure technical assistance for intermediaries 
                participating in the Microloan Program to 
                ensure that such intermediaries have the 
                knowledge, skills, and understanding of 
                microlending practices necessary to operate 
                successful microloan programs.
                  (B) Assistance amount.--The Administration 
                shall transfer 7 percent of its annual 
                appropriation for loans and loan guarantees 
                under this subsection to the Administration's 
                Salaries and Expense Account for the specific 
                purpose of providing 1 or more technical 
                assistance grants to experienced microlending 
                organizations and national and regional 
                nonprofit organizations that have demonstrated 
                experience in providing training support for 
                microenterprise development and financing. to 
                achieve the purpose set forth in subparagraph 
                (A).
                  (C) Welfare-to-work microloan initiative.--Of 
                amounts made available to carry out the 
                welfare-to-work microloan initiative under 
                paragraph (1)(A)(iv) in any fiscal year, the 
                Administration may use not more than 5 percent 
                to provide technical assistance, either 
                directly or through contractors, to welfare-to-
                work microloan initiative grantees, to ensure 
                that, as grantees, they have the knowledge, 
                skills, and understanding of microlending and 
                welfare-to-work transition, and other related 
                issues, to operate a successful welfare-to-work 
                microloan initiative.
          (10) Report to congress.--On November 1, 1995, the 
        Administration shall submit to the Committees on Small 
        Business of the Senate and the House of Representatives 
        a report, including the Administration's evaluation of 
        the effectiveness of the first 3\1/2\ years of the 
        microloan program and the following:
                  (A) the numbers and locations of the 
                intermediaries funded to conduct microloan 
                programs;
                  (B) the amounts of each loan and each grant 
                to intermediaries;
                  (C) a description of the matching 
                contributions of each intermediary;
                  (D) the numbers and amounts of microloans 
                made by the intermediaries to small business 
                concern borrowers;
                  (E) the repayment history of each 
                intermediary;
                  (F) a description of the loan portfolio of 
                each intermediary including the extent to which 
                it provides microloans to small business 
                concerns in rural areas; and
                  (G) any recommendations for legislative 
                changes that would improve program operations.
          (11) Definitions.--For purposes of this subsection--
                  (A) the term ``intermediary'' means--
                          (i) a private, nonprofit entity;
                          (ii) a private, nonprofit community 
                        development corporation;
                          (iii) a consortium of private, 
                        nonprofit organizations or nonprofit 
                        community development corporations;
                          (iv) a quasi-governmental economic 
                        development entity (such as a planning 
                        and development district), other than a 
                        State, county, municipal government, or 
                        any agency thereof, if--
                                  (I) no application is 
                                received from an eligible 
                                nonprofit organization; or
                                  (II) the Administration 
                                determines that the needs of a 
                                region or geographic area are 
                                not adequately served by an 
                                existing, eligible nonprofit 
                                organization that has submitted 
                                an application; or
                          (v) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government,
                that seeks to borrow or has borrowed funds from 
                the Administration to make microloans to small 
                business concerns under this subsection;
                  (B) the term ``microloan'' means a short-
                term, fixed rate loan of not more than $50,000, 
                made by an intermediary to a startup, newly 
                established, or growing small business concern;
                  (C) the term ``rural area'' means any 
                political subdivision or unincorporated area--
                          (i) in a nonmetropolitan county (as 
                        defined by the Secretary of 
                        Agriculture) or its equivalent thereof; 
                        or
                          (ii) in a metropolitan county or its 
                        equivalent that has a resident 
                        population of less than 20,000 if the 
                        Small Business Administration has 
                        determined such political subdivision 
                        or area to be rural; and
                  (D) the term ``economically distressed 
                area'', as used in paragraph (4), means a 
                county or equivalent division of local 
                government of a State in which the small 
                business concern is located, in which, 
                according to the most recent data available 
                from the Bureau of the Census, Department of 
                Commerce, not less than 40 percent of residents 
                have an annual income that is at or below the 
                poverty level.
          (12) Deferred participation loan pilot.--In lieu of 
        making direct loans to intermediaries as authorized in 
        paragraph (1)(B), during fiscal years 1998 through 
        2000, the Administration may, on a pilot program basis, 
        participate on a deferred basis of not less than 90 
        percent and not more than 100 percent on loans made to 
        intermediaries by a for-profit or nonprofit entity or 
        by alliances of such entities, subject to the following 
        conditions:
                  (A) Number of loans.--In carrying out this 
                paragraph, the Administration shall not 
                participate in providing financing on a 
                deferred basis to more than 10 intermediaries 
                in urban areas or more than 10 intermediaries 
                in rural areas.
                  (B) Term of loans.--The term of each loan 
                shall be 10 years. During the first year of the 
                loan, the intermediary shall not be required to 
                repay any interest or principal. During the 
                second through fifth years of the loan, the 
                intermediary shall be required to pay interest 
                only. During the sixth through tenth years of 
                the loan, the intermediary shall be required to 
                make interest payments and fully amortize the 
                principal.
                  (C) Interest rate.--The interest rate on each 
                loan shall be the rate specified by paragraph 
                (3)(F) for direct loans.
          (13) Evaluation of welfare-to-work microloan 
        initiative.--On January 31, 1999, and annually 
        thereafter, the Administration shall submit to the 
        Committees on Small Business of the House of 
        Representatives and the Senate a report on any monies 
        distributed pursuant to paragraph (4)(F).
  (n) Repayment Deferred for Active Duty Reservists.--
          (1) Definitions.--In this subsection:
                  (A) Eligible reservist.--The term ``eligible 
                reservist'' means a member of a reserve 
                component of the Armed Forces ordered to active 
                duty during a period of military conflict.
                  (B) Essential employee.--The term ``essential 
                employee'' means an individual who is employed 
                by a small business concern and whose 
                managerial or technical expertise is critical 
                to the successful day-to-day operations of that 
                small business concern.
                  (C) Period of military conflict.--The term 
                ``period of military conflict'' means--
                          (i) a period of war declared by the 
                        Congress;
                          (ii) a period of national emergency 
                        declared by the Congress or by the 
                        President; or
                          (iii) a period of a contingency 
                        operation, as defined in section 101(a) 
                        of title 10, United States Code.
                  (D) Qualified borrower.--The term ``qualified 
                borrower'' means--
                          (i) an individual who is an eligible 
                        reservist and who received a direct 
                        loan under subsection (a) or (b) before 
                        being ordered to active duty; or
                          (ii) a small business concern that 
                        received a direct loan under subsection 
                        (a) or (b) before an eligible 
                        reservist, who is an essential 
                        employee, was ordered to active duty.
          (2) Deferral of direct loans.--
                  (A) In general.--The Administration shall, 
                upon written request, defer repayment of 
                principal and interest due on a direct loan 
                made under subsection (a) or (b), if such loan 
                was incurred by a qualified borrower.
                  (B) Period of deferral.--The period of 
                deferral for repayment under this paragraph 
                shall begin on the date on which the eligible 
                reservist is ordered to active duty and shall 
                terminate on the date that is 180 days after 
                the date such eligible reservist is discharged 
                or released from active duty.
                  (C) Interest rate reduction during 
                deferral.--Notwithstanding any other provision 
                of law, during the period of deferral described 
                in subparagraph (B), the Administration may, in 
                its discretion, reduce the interest rate on any 
                loan qualifying for a deferral under this 
                paragraph.
          (3) Deferral of loan guarantees and other 
        financings.--The Administration shall--
                  (A) encourage intermediaries participating in 
                the program under subsection (m) to defer 
                repayment of a loan made with proceeds made 
                available under that subsection, if such loan 
                was incurred by a small business concern that 
                is eligible to apply for assistance under 
                subsection (b)(3); and
                  (B) not later than 30 days after the date of 
                the enactment of this subsection, establish 
                guidelines to--
                          (i) encourage lenders and other 
                        intermediaries to defer repayment of, 
                        or provide other relief relating to, 
                        loan guarantees under subsection (a) 
                        and financings under section 504 of the 
                        Small Business Investment Act of 1958 
                        that were incurred by small business 
                        concerns that are eligible to apply for 
                        assistance under subsection (b)(3), and 
                        loan guarantees provided under 
                        subsection (m) if the intermediary 
                        provides relief to a small business 
                        concern under this paragraph; and
                          (ii) implement a program to provide 
                        for the deferral of repayment or other 
                        relief to any intermediary providing 
                        relief to a small business borrower 
                        under this paragraph.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 633 OF DIVISION E OF THE CONSOLIDATED APPROPRIATIONS ACT, 2017

  Sec. 633. (a) For fiscal years 2016 through 2026, the Office 
of Personnel Management shall provide to each affected 
individual as defined in subsection (b) complimentary identity 
protection coverage that--
          (1) is not less comprehensive than the complimentary 
        identity protection coverage that the Office provided 
        to affected individuals before the date of enactment of 
        this Act; and
          [(2) is effective for a period of not less than 10 
        years; and]
          [(3)] (2) includes not less than $5,000,000 in 
        identity theft insurance.
  (b) Definition In this section, the term ``affected 
individual'' means any individual whose Social Security Number 
was compromised during--
          (1) the data breach of personnel records of current 
        and former Federal employees, at a network maintained 
        by the Department of the Interior, that was announced 
        by the Office of Personnel Management on June 4, 2015; 
        or
          (2) the data breach of systems of the Office of 
        Personnel Management containing information related to 
        the background investigations of current, former, and 
        prospective Federal employees, and of other 
        individuals.
                              ----------                              

              LOCAL BUDGET AUTONOMY AMENDMENT ACT OF 2012

 An Act To amend the District of Columbia Home Rule Act to provide for 
                         local budget autonomy.

    Be It Enacted by the Council of the District of Columbia, 
[That this act may be cited as the ``Local Budget Autonomy 
Amendment Act of 2012''.
    [Sec. 2. The District of Columbia Home Rule Act, approved 
December 24, 1973 (87 Stat. 777; D.C. Official Code Sec. 1-
201.01 et seq.), is amended as follows:
    [(a) The table of contents is amended by striking the 
phrase ``Sec. 446. Enactment of Appropriations by Congress'' 
and inserting the phrase ``Sec. 446. Enactment of local budget 
by Council'' in its place.
    [(b). Section 404(f) (D.C. Official Code Sec. 1-204.04(f) 
is amended by striking the phrase ``transmitted by the Chairman 
to the President of the United States'' both times it appears 
and inserting the phrase ``incorporated in the budget act and 
become law subject to the provisions of section 602(c)'' in its 
place.
    [(c) Section 412 (D.C. Official Code Sec. 1-204.12) is 
amended by striking the phrase 14. ``(other than an act to 
which section 446 applies)''.
    [(d) Section 441(a) (D.C. Official Code Sec. 1-204.41(a)) 
is amended--by striking the phrase ``budget and accounting 
year.'' and inserting the phrase ``budget and accounting year. 
The District may change the fiscal year of the District by an 
act of the Council. If a change occurs, such fiscal year shall 
also constitute the budget and accounting year.'' in its place.
    [(e) Section 446 (D.C. Official Code Sec. 1-204.46) is 
amended to read as follows:
    [``ENACTMENT OF LOCAL BUDGET BY COUNCIL.
    [``Sec. 446. (a) Adoption of Budgets and Supplements.--The 
Council, within 70 calendar days, or as otherwise provided by 
law, after receipt of the budget proposal from the Mayor, and 
after public hearing, and by a vote of a majority of the 
members present and voting, shall by act adopt the annual 
budget for the District of Columbia government. The federal 
portion of the annual budget shall be submitted by the Mayor to 
the President for transmission to Congress. The local portion 
of the annual budget shall be submitted by the Chairman of the 
Council to the Speaker of the House of Representatives pursuant 
to the. procedure set forth in section 602(c). Any supplements 
to the annual budget shall also be adopted by act of the 
Council, after public hearing, by a vote of a majority of the 
members present and voting.
    [``(b) Transmission to President During Control Years.--
In'the case of a budget for a fiscal year which is a control 
year, the budget so adopted shall be submitted by the Mayor to 
the President for transmission by the President to the 
Congress; except, that the Mayor shall not transmit any such 
budget, or amendments or supplements to the budget, to the 
President until the completion of the budget procedures 
contained in this Act and the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995.
    [(c) Prohibiting Obligations and Expenditures Not 
Authorized Under Budget.--Except as provided in section 
445A(b), section 446B, section 467(d), section 47I(c), section 
472(d)(2), section 475(e)(2), section 483(d), and subsections 
(f), (g), (h)(3), and (i)(3) of section 490, no amount may be 
obligated or expended by any officer or employee of the 
District of Columbia government unless--
          [``(1) such amount has been approved by an act of the 
        Council (and then only in accordance with such 
        authorization) and such act has been transmitted by the 
        Chairman to the Congress and has completed the review 
        process under section 602(c)(3); or
          [``(2) in the case of an amount obligated or expended 
        during a control year, such amount has been approved by 
        an Act of Congress (and then only in accordance with 
        such authorization).
    [``(d) Restrictions on Reprogramming of Amounts.--After the 
adoption of the annual budget or a fiscal year (beginning with 
the annual budget for fiscal year 1995), no reprogramming of 
amounts in the budget may occur unless the Mayor submits to the 
Council a request for such reprogramming and the Council 
approves the request, but and only if any additional 
expenditures provided under such request for an activity are 
offset by reductions in expenditures for another activity.
    [``(e) Definition.--In this part, the term ``control year'' 
has the meaning given such term in section 305(4) of the 
District of Columbia Financial Responsibility and Management 
Assistance Act of 1995.''.
    [(f) Section 446B(a) (D.C., Official Code Sec. 1-
204.46b(a)) is amended as follows:
          [(1) Strike the phrase ``the fourth sentence of 
        section 446'' and insert the phrase ``section 446(c)'' 
        in its place.
          [(2) Strike the phrase ``approved by Act of 
        Congress''.
    [(g) Section 447 (D.C. Official Code Sec. 1-204.47) is 
amended as follows:
          [(1) Strike the phrase. ``Act of Congress'' each time 
        it appears and insert the phrase ``act of the Council 
        (or Act of Congress, in the case of a year which is a 
        control year)'' in its place.
          [(2) Strike the phrase ``Acts of Congress'' each time 
        it appears and insert the phrase ``acts of the Council 
        (or Acts of Congress, in the case of a year which is a 
        control year)'' in its place.
    [(h) Sections 467(d), 471(c), 472(d)(2), 475(e)(2), and 
483(d), and 490(f), (g)(3), (h)(3), and (i)(3) are amended by 
striking the phrase ``The fourth sentence of section 446'' and 
inserting the phrase ``Section 446(c)'' in its place.
    [Sec. 3. Applicability.
    [Section 2 shall apply as of January 1, 2014.
    [Sec. 4. Fiscal impact statement.
    [The Council adopts the fiscal impact statement in the 
committee report as the fiscal impact statement required by 
section 602(c)(3) of the District of Columbia Home Rule Act, 
approved December 24, 1973 (87 Stat. 813; D.C. Official Code 
Sec. 1-206.02(c)(3)).
    [Sec. 5. Effective date.
    [This act shall take effect as provided in section 303 of 
the District of Columbia Home Rule Act, approved December 24, 
1973 (87 Stat. 784; D.C. Official Code Sec. 1-203.03).]
                              ----------                              

                   DISTRICT OF COLUMBIA HOME RULE ACT

           *       *       *       *       *       *       *
TITLE IV--THE DISTRICT CHARTER

           *       *       *       *       *       *       *

            Part D--District Budget and Financial Management

Subpart 1--Budget and Financial Management

           *       *       *       *       *       *       *

                       general and special funds

  Sec. 450. [The General Fund] (a) In General._The General Fund 
of the District shall be composed of those District revenues 
which on the effective date of this title are paid into the 
Treasury of the United States and credited either to the 
General Fund of the District or its miscellaneous receipts, but 
shall not include any revenues which are applied by law to any 
special fund existing on the date of enactment of this title. 
The Council may from time to time establish such additional 
special funds as may be necessary for the efficient operation 
of the government of the District. All money received by any 
agency, officer, or employee of the District in its or his 
official capacity shall belong to the District government and 
shall be paid promptly to the Mayor for deposit in the 
appropriate fund, except that all money received by the 
District of Columbia Courts shall be deposited in the Treasury 
of the United States or the Crime Victims Fund.
  (b) Application of Federal Appropriations Process.--Nothing 
in this Act shall be construed as creating a continuing 
appropriation of the General Fund described in subsection (a). 
All funds provided for the District of Columbia shall be 
appropriated on an annual fiscal year basis through the Federal 
appropriations process. For each fiscal year, the District 
shall be subject to all applicable requirements of subchapter 
III of chapter 13 and subchapter II of chapter 15 of title 31, 
United States Code (commonly known as the ``Anti-Deficiency 
Act''), the Budget and Accounting Act of 1921, and all other 
requirements and restrictions applicable to appropriations for 
such fiscal year.

           *       *       *       *       *       *       *

TITLE VI--RESERVATION OF CONGRESSIONAL AUTHORITY

           *       *       *       *       *       *       *

         budget process; limitations on borrowing and spending

  Sec. 603. (a) Nothing in this Act shall be construed as 
making any change in [existing] law, regulation, or basic 
procedure and practice relating to the respective roles of the 
Congress, the President, the Federal Office of Management and 
Budget, and the Comptroller General of the United States in the 
preparation, review, submission, examination, authorization, 
and appropriation of the total budget of the District of 
Columbia government[.], or as authorizing the District of 
Columbia to make any such change.
  (b)(1) No general obligation bonds (other than bonds to 
refund outstanding indebtedness) or Treasury capital project 
loans shall be issued during any fiscal year in an amount which 
would cause the amount of principal and interest required to be 
paid both serially and into a sinking fund in any fiscal year 
on the aggregate amounts of all outstanding general obligation 
bonds and such Treasury loans, to exceed 17 percent of the 
District revenues (less any fees or revenues directed to 
servicing revenue bonds, any revenues, charges, or fees 
dedicated for the purposes of water and sewer facilities 
described in section 490(a) (including fees or revenues 
directed to servicing or securing revenue bonds issued for such 
purposes), retirement contributions, revenues from retirement 
systems, and revenues derived from such Treasury loans and the 
sale or general obligation or revenue bonds) which the Mayor 
estimates, and the District of Columbia Auditor certifies, will 
be credited to the District during the fiscal year in which the 
bonds will be issued. Treasury capital project loans include 
all borrowing from the United States Treasury, except those 
funds advanced to the District by the Secretary of the Treasury 
under the provisions of title VI of the District of Columbia 
Revenue Act of 1939.
  (2) Obligations incurred pursuant to the authority contained 
in the District of Columbia Stadium Act of 1957 (71 Stat. 619; 
D.C. Code title 2, chapter 17, subchapter II), obligations 
incurred by the agencies transferred or established by sections 
201 and 202, whether incurred before or after such transfer or 
establishment, and obligations incurred pursuant to general 
obligation bonds of the District of Columbia issued prior to 
October 1, 1996, for the financing of Department of Public 
Works, Water and Sewer Utility Administration capital projects, 
shall not be included in determining the aggregate amount of 
all outstanding obligations subject to the limitation specified 
in the preceding subsection.
  (3) The 17 percent limitation specified in paragraph (1) 
shall be calculated in the following manner:
          (A) Determine the dollar amount equivalent to 14 
        percent of the District revenues (less any fees or 
        revenues directed to servicing revenue bonds, any 
        revenues, charges, or fees dedicated for the purposes 
        of water and sewer facilities described in section 
        490(a) (including fees or revenues directed to 
        servicing or securing revenue bonds issued for such 
        purposes), retirement, contributions, revenues from 
        retirement systems, and revenues derived from such 
        Treasury loans and the sale of general obligation or 
        revenue bonds) which the Mayor estimates, and the 
        District of Columbia Auditor certifies, will be 
        credited to the District during the fiscal year for 
        which the bonds will be issued.
          (B) Determine the actual total amount of principal 
        and interest to be paid in each fiscal year for all 
        outstanding general obligation bonds (less the 
        allocable portion of principal and interest to be paid 
        during the year on general obligation bonds of the 
        District of Columbia issued prior to October 1, 1996, 
        for the financing of Department of Public Works, Water 
        and Sewer Utility Administration capital projects) and 
        such Treasury loans.
          (C) Determine the amount of principal and interest to 
        be paid during each fiscal year over the term of the 
        proposed general obligation bond or such Treasury loan 
        to be issued.
          (D) If in any one fiscal year the sum arrived at by 
        adding subparagraphs (B) and (C) exceeds the amount 
        determined under subparagraph (A), then the proposed 
        general obligation bond or such Treasury loan in 
        subparagraph (C) cannot be issued.
  (c) Except as provided in subsection (f), the Council shall 
not approve any budget which would result in expenditures being 
made by the District Government, during any fiscal year, in 
excess of all resources which the Mayor estimates will be 
available from all funds available to the District for such 
fiscal year. The budget shall identify any tax increases which 
shall be required in order to balance the budget as submitted. 
The Council shall be required to adopt such tax increases to 
the extent its budget is approved.
  (d) Except as provided in subsection (f), the Mayor shall not 
forward to the President for submission to Congress a budget 
which is not balanced according to the provision of subsection 
603(c).
  (e) Nothing in this Act shall be construed as affecting the 
applicability to the District government of the provisions of 
section 3679 of the Revised Statutes of the United States (31 
U.S.C. 665), the so-called Anti-Deficiency Act.
  (f) In the case of a fiscal year which is a control year (as 
defined in section 305(4) of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995), the 
Council may not approve, and the Mayor may not forward to the 
President, any budget which is not consistent with the 
financial plan and budget established for the fiscal year under 
subtitle A of title II of such Act.

           *       *       *       *       *       *       *

                              ----------                              

FINANCIAL STABILITY ACT OF 2010

           *       *       *       *       *       *       *

TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *

SEC. 102. DEFINITIONS.

  (a) In General.--For purposes of this title, unless the 
context otherwise requires, the following definitions shall 
apply:
          (1) Bank holding company.--The term ``bank holding 
        company'' has the same meaning as in section 2 of the 
        Bank Holding Company Act of 1956 (12 U.S.C. 1841). A 
        foreign bank or company that is treated as a bank 
        holding company for purposes of the Bank Holding 
        Company Act of 1956, pursuant to section 8(a) of the 
        International Banking Act of 1978 (12 U.S.C. 3106(a)), 
        shall be treated as a bank holding company for purposes 
        of this title.
          (2) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of the Council.
          (3) Member agency.--The term ``member agency'' means 
        an agency represented by a voting member of the 
        Council.
          (4) Nonbank financial company definitions.--
                  (A) Foreign nonbank financial company.--The 
                term ``foreign nonbank financial company'' 
                means a company (other than a company that is, 
                or is treated in the United States as, a bank 
                holding company) that is--
                          (i) incorporated or organized in a 
                        country other than the United States; 
                        and
                          (ii) predominantly engaged in, 
                        including through a branch in the 
                        United States, financial activities, as 
                        defined in paragraph (6).
                  (B) U.S. nonbank financial company.--The term 
                ``U.S. nonbank financial company'' means a 
                company (other than a bank holding company, a 
                Farm Credit System institution chartered and 
                subject to the provisions of the Farm Credit 
                Act of 1971 (12 U.S.C. 2001 et seq.), or a 
                national securities exchange (or parent 
                thereof), clearing agency (or parent thereof, 
                unless the parent is a bank holding company), 
                security-based swap execution facility, or 
                security-based swap data repository registered 
                with the Commission, or a board of trade 
                designated as a contract market (or parent 
                thereof), or a derivatives clearing 
                organization (or parent thereof, unless the 
                parent is a bank holding company), swap 
                execution facility or a swap data repository 
                registered with the Commodity Futures Trading 
                Commission), that is--
                          (i) incorporated or organized under 
                        the laws of the United States or any 
                        State; and
                          (ii) predominantly engaged in 
                        financial activities, as defined in 
                        paragraph (6).
                  (C) Nonbank financial company.--The term 
                ``nonbank financial company'' means a U.S. 
                nonbank financial company and a foreign nonbank 
                financial company.
                  (D) Nonbank financial company supervised by 
                the board of governors.--The term ``nonbank 
                financial company supervised by the Board of 
                Governors'' means a nonbank financial company 
                that the Council has determined under section 
                113 shall be supervised by the Board of 
                Governors.
          [(5) Office of financial research.--The term ``Office 
        of Financial Research'' means the office established 
        under section 152.]
          (6) Predominantly engaged.--A company is 
        ``predominantly engaged in financial activities'' if--
                  (A) the annual gross revenues derived by the 
                company and all of its subsidiaries from 
                activities that are financial in nature (as 
                defined in section 4(k) of the Bank Holding 
                Company Act of 1956) and, if applicable, from 
                the ownership or control of one or more insured 
                depository institutions, represents 85 percent 
                or more of the consolidated annual gross 
                revenues of the company; or
                  (B) the consolidated assets of the company 
                and all of its subsidiaries related to 
                activities that are financial in nature (as 
                defined in section 4(k) of the Bank Holding 
                Company Act of 1956) and, if applicable, 
                related to the ownership or control of one or 
                more insured depository institutions, 
                represents 85 percent or more of the 
                consolidated assets of the company.
          (7) Significant institutions.--The terms 
        ``significant nonbank financial company'' and 
        ``significant bank holding company'' have the meanings 
        given those terms by rule of the Board of Governors, 
        but in no instance shall the term ``significant nonbank 
        financial company'' include those entities that are 
        excluded under paragraph (4)(B).
  (b) Definitional Criteria.--The Board of Governors shall 
establish, by regulation, the requirements for determining if a 
company is predominantly engaged in financial activities, as 
defined in subsection (a)(6).
  (c) Foreign Nonbank Financial Companies.--For purposes of the 
application of subtitles A and C (other than section 113(b)) 
with respect to a foreign nonbank financial company, references 
in this title to ``company'' or ``subsidiary'' include only the 
United States activities and subsidiaries of such foreign 
company, except as otherwise provided.

           Subtitle A--Financial Stability Oversight Council

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.

  (a) Establishment.--Effective on the date of enactment of 
this Act, there is established the Financial Stability 
Oversight Council.
  (b) Membership.--The Council shall consist of the following 
members:
          (1) Voting members.--The voting members, [who shall 
        each] who shall, except as provided below, each have 1 
        vote on the Council shall be--
                  (A) the Secretary of the Treasury, who shall 
                serve as Chairperson of the Council;
                  [(B) the Chairman of the Board of Governors;
                  [(C) the Comptroller of the Currency;
                  [(D) the Director of the Bureau;
                  [(E) the Chairman of the Commission;
                  [(F) the Chairperson of the Corporation;
                  [(G) the Chairperson of the Commodity Futures 
                Trading Commission;
                  [(H) the Director of the Federal Housing 
                Finance Agency;
                  [(I) the Chairman of the National Credit 
                Union Administration Board; and]
                  (B) each member of the Board of Governors, 
                who shall collectively have 1 vote on the 
                Council;
                  (C) the Comptroller of the Currency;
                  (D) the Director of the Bureau;
                  (E) each member of the Commission, who shall 
                collectively have 1 vote on the Council;
                  (F) each member of the Corporation, who shall 
                collectively have 1 vote on the Council;
                  (G) each member of the Commodity Futures 
                Trading Commission, who shall collectively have 
                1 vote on the Council;
                  (H) the Director of the Federal Housing 
                Finance Agency;
                  (I) each member of the National Credit Union 
                Administration Board, who shall collectively 
                have 1 vote on the Council; and
                  (J) an independent member appointed by the 
                President, by and with the advice and consent 
                of the Senate, having insurance expertise.
          (2) Nonvoting members.--The nonvoting members, who 
        shall serve in an advisory capacity as a nonvoting 
        member of the Council, shall be--
                  [(A) the Director of the Office of Financial 
                Research;]
                  [(B)] (A) the Director of the Federal 
                Insurance Office;
                  [(C)] (B) a State insurance commissioner, to 
                be designated by a selection process determined 
                by the State insurance commissioners;
                  [(D)] (C) a State banking supervisor, to be 
                designated by a selection process determined by 
                the State banking supervisors; and
                  [(E)] (D) a State securities commissioner (or 
                an officer performing like functions), to be 
                designated by a selection process determined by 
                such State securities commissioners.
          (3) Nonvoting member participation.--The nonvoting 
        members of the Council shall not be excluded from any 
        of the proceedings, meetings, discussions, or 
        deliberations of the Council, except that the 
        Chairperson may, upon an affirmative vote of the member 
        agencies, exclude the nonvoting members from any of the 
        proceedings, meetings, discussions, or deliberations of 
        the Council when necessary to safeguard and promote the 
        free exchange of confidential supervisory information.
          (4) Voting by multi-person entity.--
                  (A) Voting within the entity.--An entity 
                described under subparagraph (B), (E), (F), 
                (G), or (I) of paragraph (1) shall determine 
                the entity's Council vote by using the voting 
                process normally applicable to votes by the 
                entity's members.
                  (B) Casting of entity vote.--The 1 collective 
                Council vote of an entity described under 
                subparagraph (A) shall be cast by the head of 
                such agency or, in the event such head is 
                unable to cast such vote, the next most senior 
                member of the entity available.
  (c) Terms; Vacancy.--
          (1) Terms.--[The independent member of the Council 
        shall serve for a term of 6 years, and each nonvoting 
        member described in subparagraphs (C), (D), and (E) of] 
        Each nonvoting members described under subsection 
        (b)(2) shall serve for a term of 2 years.
          (2) Vacancy.--Any vacancy on the Council shall be 
        filled in the manner in which the original appointment 
        was made.
          (3) Acting officials may serve.--In the event of a 
        vacancy in the office of the head of a member agency or 
        department, and pending the appointment of a successor, 
        or during the absence or disability of the head of a 
        member agency or department, the acting head of the 
        member agency or department shall serve as a member of 
        the Council in the place of that agency or department 
        head.
  (d) Technical and Professional Advisory Committees.--The 
Council may appoint such special advisory, technical, or 
professional committees as may be useful in carrying out the 
functions of the Council, including an advisory committee 
consisting of State regulators, and the members of such 
committees may be members of the Council, or other persons, or 
both.
  (e) Meetings.--
          (1) Timing.--The Council shall meet at the call of 
        the Chairperson or a majority of the members then 
        serving, but not less frequently than quarterly.
          (2) Rules for conducting business.--The Council shall 
        adopt such rules as may be necessary for the conduct of 
        the business of the Council. Such rules shall be rules 
        of agency organization, procedure, or practice for 
        purposes of section 553 of title 5, United States Code.
          (3) Staff access.--Any member of the Council may 
        select to have one or more individuals on the member's 
        staff attend a meeting of the Council, including any 
        meeting of representatives of the member agencies other 
        than the members themselves.
          (4) Congressional oversight.--All public meetings of 
        the Council shall be open to the attendance by members 
        of the authorization and oversight committees of the 
        House of Representatives and the Senate.
          (5) Transcription requirement for non-public 
        meetings.--The Council shall create and preserve 
        transcripts for all non-public meetings of the Council.
          (6) Member agency meetings.--Any meeting of 
        representatives of the member agencies other than the 
        members themselves shall be open to attendance by staff 
        of the authorization and oversight committees of the 
        House of Representatives and the Senate.
  (f) Voting.--Unless otherwise specified, the Council shall 
make all decisions that it is authorized or required to make by 
a majority vote of the voting members then serving.
  [(g) Nonapplicability of FACA.--The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Council, 
or to any special advisory, technical, or professional 
committee appointed by the Council, except that, if an 
advisory, technical, or professional committee has one or more 
members who are not employees of or affiliated with the United 
States Government, the Council shall publish a list of the 
names of the members of such committee.]
  (g) Open Meeting Requirement.--The Council shall be an agency 
for purposes of section 552b of title 5, United States Code 
(commonly referred to as the ``Government in the Sunshine 
Act'').
  (h) Confidential Congressional Briefings.--The Chairperson 
shall at regular times but not less than annually provide 
confidential briefings to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate, which may in the 
discretion of the Chairman of the respective committee be 
attended by any combination of the committee's members or 
staff.
  [(h)] (i) Assistance From Federal Agencies.--Any department 
or agency of the United States may provide to the Council and 
any special advisory, technical, or professional committee 
appointed by the Council, such services, funds, facilities, 
staff, and other support services as the Council may determine 
advisable.
  [(i)] (j) Compensation of Members.--
          (1) Federal employee members.--All members of the 
        Council who are officers or employees of the United 
        States shall serve without compensation in addition to 
        that received for their services as officers or 
        employees of the United States.
          (2) Compensation for non-federal member.--Section 
        5314 of title 5, United States Code, is amended by 
        adding at the end the following:``Independent Member of 
        the Financial Stability Oversight Council (1).''.
  [(j)] (k) Detail of Government Employees.--Any employee of 
the Federal Government may be detailed to the Council without 
reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. An employee of the 
Federal Government detailed to the Council shall report to and 
be subject to oversight by the Council during the assignment to 
the Council, and shall be compensated by the department or 
agency from which the employee was detailed.

SEC. 112. COUNCIL AUTHORITY.

  (a) Purposes and Duties of the Council.--
          (1) In general.--The purposes of the Council are--
                  (A) to identify risks to the financial 
                stability of the United States that could arise 
                from the material financial distress or 
                failure, or ongoing activities, of large, 
                interconnected bank holding companies or 
                nonbank financial companies, or that could 
                arise outside the financial services 
                marketplace;
                  (B) to promote market discipline, by 
                eliminating expectations on the part of 
                shareholders, creditors, and counterparties of 
                such companies that the Government will shield 
                them from losses in the event of failure; and
                  (C) to respond to emerging threats to the 
                stability of the United States financial 
                system.
          (2) Duties.--The Council shall, in accordance with 
        this title--
                  (A) collect information from member agencies, 
                other Federal and State financial regulatory 
                agencies, the Federal Insurance Office and, if 
                necessary to assess risks to the United States 
                financial system, [direct the Office of 
                Financial Research to] collect information from 
                bank holding companies and nonbank financial 
                companies;
                  [(B) provide direction to, and request data 
                and analyses from, the Office of Financial 
                Research to support the work of the Council;]
                  [(C)] (B) monitor the financial services 
                marketplace in order to identify potential 
                threats to the financial stability of the 
                United States;
                  [(D)] (C) to monitor domestic and 
                international financial regulatory proposals 
                and developments, including insurance and 
                accounting issues, and to advise Congress and 
                make recommendations in such areas that will 
                enhance the integrity, efficiency, 
                competitiveness, and stability of the U.S. 
                financial markets;
                  [(E)] (D) facilitate information sharing and 
                coordination among the member agencies and 
                other Federal and State agencies regarding 
                domestic financial services policy development, 
                rulemaking, examinations, reporting 
                requirements, and enforcement actions;
                  [(F)] (E) recommend to the member agencies 
                general supervisory priorities and principles 
                reflecting the outcome of discussions among the 
                member agencies;
                  [(G)] (F) identify gaps in regulation that 
                could pose risks to the financial stability of 
                the United States;
                  [(H) require supervision by the Board of 
                Governors for nonbank financial companies that 
                may pose risks to the financial stability of 
                the United States in the event of their 
                material financial distress or failure, or 
                because of their activities pursuant to section 
                113;
                  [(I) make recommendations to the Board of 
                Governors concerning the establishment of 
                heightened prudential standards for risk-based 
                capital, leverage, liquidity, contingent 
                capital, resolution plans and credit exposure 
                reports, concentration limits, enhanced public 
                disclosures, and overall risk management for 
                nonbank financial companies and large, 
                interconnected bank holding companies 
                supervised by the Board of Governors;]
                  [(J)] (G) identify systemically important 
                financial market utilities and payment, 
                clearing, and settlement activities (as that 
                term is defined in title VIII);
                  [(K)] (H) make recommendations to primary 
                financial regulatory agencies to apply new or 
                heightened standards and safeguards for 
                financial activities or practices that could 
                create or increase risks of significant 
                liquidity, credit, or other problems spreading 
                among bank holding companies, nonbank financial 
                companies, and United States financial markets;
                                  [(L)] (I) review and, as 
                                appropriate, may submit 
                                comments to the Commission and 
                                any standard-setting body with 
                                respect to an existing or 
                                proposed accounting principle, 
                                standard, or procedure;
                  [(M)] (J) provide a forum for--
                          (i) discussion and analysis of 
                        emerging market developments and 
                        financial regulatory issues; and
                          (ii) resolution of jurisdictional 
                        disputes among the members of the 
                        Council; and
                  [(N)] (K) annually report to and testify 
                before Congress on--
                          (i) the activities of the Council;
                          (ii) significant financial market and 
                        regulatory developments, including 
                        insurance and accounting regulations 
                        and standards, along with an assessment 
                        of those developments on the stability 
                        of the financial system;
                          (iii) potential emerging threats to 
                        the financial stability of the United 
                        States; and
                          [(iv) all determinations made under 
                        section 113 or title VIII, and the 
                        basis for such determinations;
                          [(v) all recommendations made under 
                        section 119 and the result of such 
                        recommendations; and]
                          [(vi)] (iv) recommendations--
                                  (I) to enhance the integrity, 
                                efficiency, competitiveness, 
                                and stability of United States 
                                financial markets;
                                  (II) to promote market 
                                discipline; and
                                  (III) to maintain investor 
                                confidence.
  (b) Statements by Voting Members of the Council.--At the time 
at which each report is submitted under subsection (a), each 
voting member of the Council shall--
          (1) if such member believes that the Council, the 
        Government, and the private sector are taking all 
        reasonable steps to ensure financial stability and to 
        mitigate systemic risk that would negatively affect the 
        economy, submit a signed statement to Congress stating 
        such belief; or
          (2) if such member does not believe that all 
        reasonable steps described under paragraph (1) are 
        being taken, submit a signed statement to Congress 
        stating what actions such member believes need to be 
        taken in order to ensure that all reasonable steps 
        described under paragraph (1) are taken.
  (c) Testimony by the Chairperson.--The Chairperson shall 
appear before the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate at an annual hearing, after the 
report is submitted under subsection (a)--
          (1) to discuss the efforts, activities, objectives, 
        and plans of the Council; and
          (2) to discuss and answer questions concerning such 
        report.
  (d) Authority To Obtain Information.--
          (1) In general.--The Council may receive, and may 
        request the submission of, any data or information from 
        [the Office of Financial Research, member agencies,] 
        member agencies and the Federal Insurance Office, as 
        necessary--
                  (A) to monitor the financial services 
                marketplace to identify potential risks to the 
                financial stability of the United States; or
                  (B) to otherwise carry out any of the 
                provisions of this title.
          (2) Submissions by the office and member agencies.--
        Notwithstanding any other provision of law, [the Office 
        of Financial Research, any member agency,] member 
        agencies and the Federal Insurance Office, are 
        authorized to submit information to the Council.
          (3) Financial data collection.--
                  (A) In general.--The Council[, acting through 
                the Office of Financial Research,] may require 
                the submission of periodic and other reports 
                from any nonbank financial company or bank 
                holding company for the purpose of assessing 
                the extent to which a financial activity or 
                financial market in which the nonbank financial 
                company or bank holding company participates, 
                or the nonbank financial company or bank 
                holding company itself, poses a threat to the 
                financial stability of the United States.
                  (B) Mitigation of report burden.--Before 
                requiring the submission of reports from any 
                nonbank financial company or bank holding 
                company that is regulated by a member agency or 
                any primary financial regulatory agency, the 
                Council[, acting through the Office of 
                Financial Research,] shall coordinate with such 
                agencies and shall, whenever possible, rely on 
                information available from [the Office of 
                Financial Research or] such agencies.
                  (C) Mitigation in case of foreign financial 
                companies.--Before requiring the submission of 
                reports from a company that is a foreign 
                nonbank financial company or foreign-based bank 
                holding company, the Council shall[, acting 
                through the Office of Financial Research,] to 
                the extent appropriate, consult with the 
                appropriate foreign regulator of such company 
                and, whenever possible, rely on information 
                already being collected by such foreign 
                regulator, with English translation.
          (4) Back-up examination by the board of governors.--
        If the Council is unable to determine whether the 
        financial activities of a U.S. nonbank financial 
        company pose a threat to the financial stability of the 
        United States, based on information or reports obtained 
        under paragraphs (1) and (3), discussions with 
        management, and publicly available information, the 
        Council may request the Board of Governors, and the 
        Board of Governors is authorized, to conduct an 
        examination of the U.S. nonbank financial company for 
        the sole purpose of determining whether the nonbank 
        financial company should be supervised by the Board of 
        Governors for purposes of this title.
          (5) Confidentiality.--
                  (A) In general.--The Council[, the Office of 
                Financial Research,] and the other member 
                agencies shall maintain the confidentiality of 
                any data, information, and reports submitted 
                under this title.
                  (B) Retention of privilege.--The submission 
                of any nonpublicly available data or 
                information under this subsection and subtitle 
                B shall not constitute a waiver of, or 
                otherwise affect, any privilege arising under 
                Federal or State law (including the rules of 
                any Federal or State court) to which the data 
                or information is otherwise subject.
                  (C) Freedom of information act.--Section 552 
                of title 5, United States Code, including the 
                exceptions thereunder, shall apply to any data 
                or information submitted under this subsection 
                and subtitle B.

[SEC. 113. AUTHORITY TO REQUIRE SUPERVISION AND REGULATION OF CERTAIN 
                    NONBANK FINANCIAL COMPANIES.

  [(a) U.S. Nonbank Financial Companies Supervised by the Board 
of Governors.--
          [(1) Determination.--The Council, on a nondelegable 
        basis and by a vote of not fewer than \2/3\ of the 
        voting members then serving, including an affirmative 
        vote by the Chairperson, may determine that a U.S. 
        nonbank financial company shall be supervised by the 
        Board of Governors and shall be subject to prudential 
        standards, in accordance with this title, if the 
        Council determines that material financial distress at 
        the U.S. nonbank financial company, or the nature, 
        scope, size, scale, concentration, interconnectedness, 
        or mix of the activities of the U.S. nonbank financial 
        company, could pose a threat to the financial stability 
        of the United States.
          [(2) Considerations.--In making a determination under 
        paragraph (1), the Council shall consider--
                  [(A) the extent of the leverage of the 
                company;
                  [(B) the extent and nature of the off-
                balance-sheet exposures of the company;
                  [(C) the extent and nature of the 
                transactions and relationships of the company 
                with other significant nonbank financial 
                companies and significant bank holding 
                companies;
                  [(D) the importance of the company as a 
                source of credit for households, businesses, 
                and State and local governments and as a source 
                of liquidity for the United States financial 
                system;
                  [(E) the importance of the company as a 
                source of credit for low-income, minority, or 
                underserved communities, and the impact that 
                the failure of such company would have on the 
                availability of credit in such communities;
                  [(F) the extent to which assets are managed 
                rather than owned by the company, and the 
                extent to which ownership of assets under 
                management is diffuse;
                  [(G) the nature, scope, size, scale, 
                concentration, interconnectedness, and mix of 
                the activities of the company;
                  [(H) the degree to which the company is 
                already regulated by 1 or more primary 
                financial regulatory agencies;
                  [(I) the amount and nature of the financial 
                assets of the company;
                  [(J) the amount and types of the liabilities 
                of the company, including the degree of 
                reliance on short-term funding; and
                  [(K) any other risk-related factors that the 
                Council deems appropriate.
  [(b) Foreign Nonbank Financial Companies Supervised by the 
Board of Governors.--
          [(1) Determination.--The Council, on a nondelegable 
        basis and by a vote of not fewer than \2/3\ of the 
        voting members then serving, including an affirmative 
        vote by the Chairperson, may determine that a foreign 
        nonbank financial company shall be supervised by the 
        Board of Governors and shall be subject to prudential 
        standards, in accordance with this title, if the 
        Council determines that material financial distress at 
        the foreign nonbank financial company, or the nature, 
        scope, size, scale, concentration, interconnectedness, 
        or mix of the activities of the foreign nonbank 
        financial company, could pose a threat to the financial 
        stability of the United States.
          [(2) Considerations.--In making a determination under 
        paragraph (1), the Council shall consider--
                  [(A) the extent of the leverage of the 
                company;
                  [(B) the extent and nature of the United 
                States related off-balance-sheet exposures of 
                the company;
                  [(C) the extent and nature of the 
                transactions and relationships of the company 
                with other significant nonbank financial 
                companies and significant bank holding 
                companies;
                  [(D) the importance of the company as a 
                source of credit for United States households, 
                businesses, and State and local governments and 
                as a source of liquidity for the United States 
                financial system;
                  [(E) the importance of the company as a 
                source of credit for low-income, minority, or 
                underserved communities in the United States, 
                and the impact that the failure of such company 
                would have on the availability of credit in 
                such communities;
                  [(F) the extent to which assets are managed 
                rather than owned by the company and the extent 
                to which ownership of assets under management 
                is diffuse;
                  [(G) the nature, scope, size, scale, 
                concentration, interconnectedness, and mix of 
                the activities of the company;
                  [(H) the extent to which the company is 
                subject to prudential standards on a 
                consolidated basis in its home country that are 
                administered and enforced by a comparable 
                foreign supervisory authority;
                  [(I) the amount and nature of the United 
                States financial assets of the company;
                  [(J) the amount and nature of the liabilities 
                of the company used to fund activities and 
                operations in the United States, including the 
                degree of reliance on short-term funding; and
                  [(K) any other risk-related factors that the 
                Council deems appropriate.
  [(c) Antievasion.--
          [(1) Determinations.--In order to avoid evasion of 
        this title, the Council, on its own initiative or at 
        the request of the Board of Governors, may determine, 
        on a nondelegable basis and by a vote of not fewer than 
        \2/3\ of the voting members then serving, including an 
        affirmative vote by the Chairperson, that--
                  [(A) material financial distress related to, 
                or the nature, scope, size, scale, 
                concentration, interconnectedness, or mix of, 
                the financial activities conducted directly or 
                indirectly by a company incorporated or 
                organized under the laws of the United States 
                or any State or the financial activities in the 
                United States of a company incorporated or 
                organized in a country other than the United 
                States would pose a threat to the financial 
                stability of the United States, based on 
                consideration of the factors in subsection 
                (a)(2) or (b)(2), as applicable;
                  [(B) the company is organized or operates in 
                such a manner as to evade the application of 
                this title; and
                  [(C) such financial activities of the company 
                shall be supervised by the Board of Governors 
                and subject to prudential standards in 
                accordance with this title, consistent with 
                paragraph (3).
          [(2) Report.--Upon making a determination under 
        paragraph (1), the Council shall submit a report to the 
        appropriate committees of Congress detailing the 
        reasons for making such determination.
          [(3) Consolidated supervision of only financial 
        activities; establishment of an intermediate holding 
        company.--
                  [(A) Establishment of an intermediate holding 
                company.--Upon a determination under paragraph 
                (1), the company that is the subject of the 
                determination may establish an intermediate 
                holding company in which the financial 
                activities of such company and its subsidiaries 
                shall be conducted (other than the activities 
                described in section 167(b)(2)) in compliance 
                with any regulations or guidance provided by 
                the Board of Governors. Such intermediate 
                holding company shall be subject to the 
                supervision of the Board of Governors and to 
                prudential standards under this title as if the 
                intermediate holding company were a nonbank 
                financial company supervised by the Board of 
                Governors.
                  [(B) Action of the board of governors.--To 
                facilitate the supervision of the financial 
                activities subject to the determination in 
                paragraph (1), the Board of Governors may 
                require a company to establish an intermediate 
                holding company, as provided for in section 
                167, which would be subject to the supervision 
                of the Board of Governors and to prudential 
                standards under this title, as if the 
                intermediate holding company were a nonbank 
                financial company supervised by the Board of 
                Governors.
          [(4) Notice and opportunity for hearing and final 
        determination; judicial review.--Subsections (d) 
        through (h) shall apply to determinations made by the 
        Council pursuant to paragraph (1) in the same manner as 
        such subsections apply to nonbank financial companies.
          [(5) Covered financial activities.--For purposes of 
        this subsection, the term ``financial activities''--
                  [(A) means activities that are financial in 
                nature (as defined in section 4(k) of the Bank 
                Holding Company Act of 1956);
                  [(B) includes the ownership or control of one 
                or more insured depository institutions; and
                  [(C) does not include internal financial 
                activities conducted for the company or any 
                affiliate thereof, including internal treasury, 
                investment, and employee benefit functions.
          [(6) Only financial activities subject to prudential 
        supervision.--Nonfinancial activities of the company 
        shall not be subject to supervision by the Board of 
        Governors and prudential standards of the Board. For 
        purposes of this Act, the financial activities that are 
        the subject of the determination in paragraph (1) shall 
        be subject to the same requirements as a nonbank 
        financial company supervised by the Board of Governors. 
        Nothing in this paragraph shall prohibit or limit the 
        authority of the Board of Governors to apply prudential 
        standards under this title to the financial activities 
        that are subject to the determination in paragraph (1).
  [(d) Reevaluation and Rescission.--The Council shall--
          [(1) not less frequently than annually, reevaluate 
        each determination made under subsections (a) and (b) 
        with respect to such nonbank financial company 
        supervised by the Board of Governors; and
          [(2) rescind any such determination, if the Council, 
        by a vote of not fewer than \2/3\ of the voting members 
        then serving, including an affirmative vote by the 
        Chairperson, determines that the nonbank financial 
        company no longer meets the standards under subsection 
        (a) or (b), as applicable.
  [(e) Notice and Opportunity for Hearing and Final 
Determination.--
          [(1) In general.--The Council shall provide to a 
        nonbank financial company written notice of a proposed 
        determination of the Council, including an explanation 
        of the basis of the proposed determination of the 
        Council, that a nonbank financial company shall be 
        supervised by the Board of Governors and shall be 
        subject to prudential standards in accordance with this 
        title.
          [(2) Hearing.--Not later than 30 days after the date 
        of receipt of any notice of a proposed determination 
        under paragraph (1), the nonbank financial company may 
        request, in writing, an opportunity for a written or 
        oral hearing before the Council to contest the proposed 
        determination. Upon receipt of a timely request, the 
        Council shall fix a time (not later than 30 days after 
        the date of receipt of the request) and place at which 
        such company may appear, personally or through counsel, 
        to submit written materials (or, at the sole discretion 
        of the Council, oral testimony and oral argument).
          [(3) Final determination.--Not later than 60 days 
        after the date of a hearing under paragraph (2), the 
        Council shall notify the nonbank financial company of 
        the final determination of the Council, which shall 
        contain a statement of the basis for the decision of 
        the Council.
          [(4) No hearing requested.--If a nonbank financial 
        company does not make a timely request for a hearing, 
        the Council shall notify the nonbank financial company, 
        in writing, of the final determination of the Council 
        under subsection (a) or (b), as applicable, not later 
        than 10 days after the date by which the company may 
        request a hearing under paragraph (2).
  [(f) Emergency Exception.--
          [(1) In general.--The Council may waive or modify the 
        requirements of subsection (e) with respect to a 
        nonbank financial company, if the Council determines, 
        by a vote of not fewer than \2/3\ of the voting members 
        then serving, including an affirmative vote by the 
        Chairperson, that such waiver or modification is 
        necessary or appropriate to prevent or mitigate threats 
        posed by the nonbank financial company to the financial 
        stability of the United States.
          [(2) Notice.--The Council shall provide notice of a 
        waiver or modification under this subsection to the 
        nonbank financial company concerned as soon as 
        practicable, but not later than 24 hours after the 
        waiver or modification is granted.
          [(3) International coordination.--In making a 
        determination under paragraph (1), the Council shall 
        consult with the appropriate home country supervisor, 
        if any, of the foreign nonbank financial company that 
        is being considered for such a determination.
          [(4) Opportunity for hearing.--The Council shall 
        allow a nonbank financial company to request, in 
        writing, an opportunity for a written or oral hearing 
        before the Council to contest a waiver or modification 
        under this subsection, not later than 10 days after the 
        date of receipt of notice of the waiver or modification 
        by the company. Upon receipt of a timely request, the 
        Council shall fix a time (not later than 15 days after 
        the date of receipt of the request) and place at which 
        the nonbank financial company may appear, personally or 
        through counsel, to submit written materials (or, at 
        the sole discretion of the Council, oral testimony and 
        oral argument).
          [(5) Notice of final determination.--Not later than 
        30 days after the date of any hearing under paragraph 
        (4), the Council shall notify the subject nonbank 
        financial company of the final determination of the 
        Council under this subsection, which shall contain a 
        statement of the basis for the decision of the Council.
  [(g) Consultation.--The Council shall consult with the 
primary financial regulatory agency, if any, for each nonbank 
financial company or subsidiary of a nonbank financial company 
that is being considered for supervision by the Board of 
Governors under this section before the Council makes any final 
determination with respect to such nonbank financial company 
under subsection (a), (b), or (c).
  [(h) Judicial Review.--If the Council makes a final 
determination under this section with respect to a nonbank 
financial company, such nonbank financial company may, not 
later than 30 days after the date of receipt of the notice of 
final determination under subsection (d)(2), (e)(3), or (f)(5), 
bring an action in the United States district court for the 
judicial district in which the home office of such nonbank 
financial company is located, or in the United States District 
Court for the District of Columbia, for an order requiring that 
the final determination be rescinded, and the court shall, upon 
review, dismiss such action or direct the final determination 
to be rescinded. Review of such an action shall be limited to 
whether the final determination made under this section was 
arbitrary and capricious.
  [(i) International Coordination.--In exercising its duties 
under this title with respect to foreign nonbank financial 
companies, foreign-based bank holding companies, and cross-
border activities and markets, the Council shall consult with 
appropriate foreign regulatory authorities, to the extent 
appropriate.

[SEC. 114. REGISTRATION OF NONBANK FINANCIAL COMPANIES SUPERVISED BY 
                    THE BOARD OF GOVERNORS.

  [Not later than 180 days after the date of a final Council 
determination under section 113 that a nonbank financial 
company is to be supervised by the Board of Governors, such 
company shall register with the Board of Governors, on forms 
prescribed by the Board of Governors, which shall include such 
information as the Board of Governors, in consultation with the 
Council, may deem necessary or appropriate to carry out this 
title.

[SEC. 115. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR NONBANK 
                    FINANCIAL COMPANIES SUPERVISED BY THE BOARD OF 
                    GOVERNORS AND CERTAIN BANK HOLDING COMPANIES.

  [(a) In General.--
          [(1) Purpose.--In order to prevent or mitigate risks 
        to the financial stability of the United States that 
        could arise from the material financial distress, 
        failure, or ongoing activities of large, interconnected 
        financial institutions, the Council may make 
        recommendations to the Board of Governors concerning 
        the establishment and refinement of prudential 
        standards and reporting and disclosure requirements 
        applicable to nonbank financial companies supervised by 
        the Board of Governors and large, interconnected bank 
        holding companies, that--
                  [(A) are more stringent than those applicable 
                to other nonbank financial companies and bank 
                holding companies that do not present similar 
                risks to the financial stability of the United 
                States; and
                  [(B) increase in stringency, based on the 
                considerations identified in subsection (b)(3).
          [(2) Recommended application of required standards.--
        In making recommendations under this section, the 
        Council may--
                  [(A) differentiate among companies that are 
                subject to heightened standards on an 
                individual basis or by category, taking into 
                consideration their capital structure, 
                riskiness, complexity, financial activities 
                (including the financial activities of their 
                subsidiaries), size, and any other risk-related 
                factors that the Council deems appropriate; or
                  [(B) recommend an asset threshold that is 
                higher than $50,000,000,000 for the application 
                of any standard described in subsections (c) 
                through (g).
  [(b) Development of Prudential Standards.--
          [(1) In general.--The recommendations of the Council 
        under subsection (a) may include--
                  [(A) risk-based capital requirements;
                  [(B) leverage limits;
                  [(C) liquidity requirements;
                  [(D) resolution plan and credit exposure 
                report requirements;
                  [(E) concentration limits;
                  [(F) a contingent capital requirement;
                  [(G) enhanced public disclosures;
                  [(H) short-term debt limits; and
                  [(I) overall risk management requirements.
          [(2) Prudential standards for foreign financial 
        companies.--In making recommendations concerning the 
        standards set forth in paragraph (1) that would apply 
        to foreign nonbank financial companies supervised by 
        the Board of Governors or foreign-based bank holding 
        companies, the Council shall--
                  [(A) give due regard to the principle of 
                national treatment and equality of competitive 
                opportunity; and
                  [(B) take into account the extent to which 
                the foreign nonbank financial company or 
                foreign-based bank holding company is subject 
                on a consolidated basis to home country 
                standards that are comparable to those applied 
                to financial companies in the United States.
          [(3) Considerations.--In making recommendations 
        concerning prudential standards under paragraph (1), 
        the Council shall--
                  [(A) take into account differences among 
                nonbank financial companies supervised by the 
                Board of Governors and bank holding companies 
                described in subsection (a), based on--
                          [(i) the factors described in 
                        subsections (a) and (b) of section 113;
                          [(ii) whether the company owns an 
                        insured depository institution;
                          [(iii) nonfinancial activities and 
                        affiliations of the company; and
                          [(iv) any other factors that the 
                        Council determines appropriate;
                  [(B) to the extent possible, ensure that 
                small changes in the factors listed in 
                subsections (a) and (b) of section 113 would 
                not result in sharp, discontinuous changes in 
                the prudential standards established under 
                section 165; and
                  [(C) adapt its recommendations as appropriate 
                in light of any predominant line of business of 
                such company, including assets under management 
                or other activities for which particular 
                standards may not be appropriate.
  [(c) Contingent Capital.--
          [(1) Study required.--The Council shall conduct a 
        study of the feasibility, benefits, costs, and 
        structure of a contingent capital requirement for 
        nonbank financial companies supervised by the Board of 
        Governors and bank holding companies described in 
        subsection (a), which study shall include--
                  [(A) an evaluation of the degree to which 
                such requirement would enhance the safety and 
                soundness of companies subject to the 
                requirement, promote the financial stability of 
                the United States, and reduce risks to United 
                States taxpayers;
                  [(B) an evaluation of the characteristics and 
                amounts of contingent capital that should be 
                required;
                  [(C) an analysis of potential prudential 
                standards that should be used to determine 
                whether the contingent capital of a company 
                would be converted to equity in times of 
                financial stress;
                  [(D) an evaluation of the costs to companies, 
                the effects on the structure and operation of 
                credit and other financial markets, and other 
                economic effects of requiring contingent 
                capital;
                  [(E) an evaluation of the effects of such 
                requirement on the international 
                competitiveness of companies subject to the 
                requirement and the prospects for international 
                coordination in establishing such requirement; 
                and
                  [(F) recommendations for implementing 
                regulations.
          [(2) Report.--The Council shall submit a report to 
        Congress regarding the study required by paragraph (1) 
        not later than 2 years after the date of enactment of 
        this Act.
          [(3) Recommendations.--
                  [(A) In general.--Subsequent to submitting a 
                report to Congress under paragraph (2), the 
                Council may make recommendations to the Board 
                of Governors to require any nonbank financial 
                company supervised by the Board of Governors 
                and any bank holding company described in 
                subsection (a) to maintain a minimum amount of 
                contingent capital that is convertible to 
                equity in times of financial stress.
                  [(B) Factors to consider.--In making 
                recommendations under this subsection, the 
                Council shall consider--
                          [(i) an appropriate transition period 
                        for implementation of a conversion 
                        under this subsection;
                          [(ii) the factors described in 
                        subsection (b)(3);
                          [(iii) capital requirements 
                        applicable to a nonbank financial 
                        company supervised by the Board of 
                        Governors or a bank holding company 
                        described in subsection (a), and 
                        subsidiaries thereof;
                          [(iv) results of the study required 
                        by paragraph (1); and
                          [(v) any other factor that the 
                        Council deems appropriate.
  [(d) Resolution Plan and Credit Exposure Reports.--
          [(1) Resolution plan.--The Council may make 
        recommendations to the Board of Governors concerning 
        the requirement that each nonbank financial company 
        supervised by the Board of Governors and each bank 
        holding company described in subsection (a) report 
        periodically to the Council, the Board of Governors, 
        and the Corporation, the plan of such company for rapid 
        and orderly resolution in the event of material 
        financial distress or failure.
          [(2) Credit exposure report.--The Council may make 
        recommendations to the Board of Governors concerning 
        the advisability of requiring each nonbank financial 
        company supervised by the Board of Governors and bank 
        holding company described in subsection (a) to report 
        periodically to the Council, the Board of Governors, 
        and the Corporation on--
                  [(A) the nature and extent to which the 
                company has credit exposure to other 
                significant nonbank financial companies and 
                significant bank holding companies; and
                  [(B) the nature and extent to which other 
                such significant nonbank financial companies 
                and significant bank holding companies have 
                credit exposure to that company.
  [(e) Concentration Limits.--In order to limit the risks that 
the failure of any individual company could pose to nonbank 
financial companies supervised by the Board of Governors or 
bank holding companies described in subsection (a), the Council 
may make recommendations to the Board of Governors to prescribe 
standards to limit such risks, as set forth in section 165.
  [(f) Enhanced Public Disclosures.--The Council may make 
recommendations to the Board of Governors to require periodic 
public disclosures by bank holding companies described in 
subsection (a) and by nonbank financial companies supervised by 
the Board of Governors, in order to support market evaluation 
of the risk profile, capital adequacy, and risk management 
capabilities thereof.
  [(g) Short-term Debt Limits.--The Council may make 
recommendations to the Board of Governors to require short-term 
debt limits to mitigate the risks that an over-accumulation of 
such debt could pose to bank holding companies described in 
subsection (a), nonbank financial companies supervised by the 
Board of Governors, or the financial system.

[SEC. 116. REPORTS.

  [(a) In General.--Subject to subsection (b), the Council, 
acting through the Office of Financial Research, may require a 
bank holding company with total consolidated assets of 
$50,000,000,000 or greater or a nonbank financial company 
supervised by the Board of Governors, and any subsidiary 
thereof, to submit certified reports to keep the Council 
informed as to--
          [(1) the financial condition of the company;
          [(2) systems for monitoring and controlling 
        financial, operating, and other risks;
          [(3) transactions with any subsidiary that is a 
        depository institution; and
          [(4) the extent to which the activities and 
        operations of the company and any subsidiary thereof, 
        could, under adverse circumstances, have the potential 
        to disrupt financial markets or affect the overall 
        financial stability of the United States.
  [(b) Use of Existing Reports.--
          [(1) In general.--For purposes of compliance with 
        subsection (a), the Council, acting through the Office 
        of Financial Research, shall, to the fullest extent 
        possible, use--
                  [(A) reports that a bank holding company, 
                nonbank financial company supervised by the 
                Board of Governors, or any functionally 
                regulated subsidiary of such company has been 
                required to provide to other Federal or State 
                regulatory agencies or to a relevant foreign 
                supervisory authority;
                  [(B) information that is otherwise required 
                to be reported publicly; and
                  [(C) externally audited financial statements.
          [(2) Availability.--Each bank holding company 
        described in subsection (a) and nonbank financial 
        company supervised by the Board of Governors, and any 
        subsidiary thereof, shall provide to the Council, at 
        the request of the Council, copies of all reports 
        referred to in paragraph (1).
          [(3) Confidentiality.--The Council shall maintain the 
        confidentiality of the reports obtained under 
        subsection (a) and paragraph (1)(A) of this subsection.

[SEC. 117. TREATMENT OF CERTAIN COMPANIES THAT CEASE TO BE BANK HOLDING 
                    COMPANIES.

  [(a) Applicability.--This section shall apply to--
          [(1) any entity that--
                  [(A) was a bank holding company having total 
                consolidated assets equal to or greater than 
                $50,000,000,000 as of January 1, 2010; and
                  [(B) received financial assistance under or 
                participated in the Capital Purchase Program 
                established under the Troubled Asset Relief 
                Program authorized by the Emergency Economic 
                Stabilization Act of 2008; and
          [(2) any successor entity (as defined by the Board of 
        Governors, in consultation with the Council) to an 
        entity described in paragraph (1).
  [(b) Treatment.--If an entity described in subsection (a) 
ceases to be a bank holding company at any time after January 
1, 2010, then such entity shall be treated as a nonbank 
financial company supervised by the Board of Governors, as if 
the Council had made a determination under section 113 with 
respect to that entity.
  [(c) Appeal.--
          [(1) Request for hearing.--An entity may request, in 
        writing, an opportunity for a written or oral hearing 
        before the Council to appeal its treatment as a nonbank 
        financial company supervised by the Board of Governors 
        in accordance with this section. Upon receipt of the 
        request, the Council shall fix a time (not later than 
        30 days after the date of receipt of the request) and 
        place at which such entity may appear, personally or 
        through counsel, to submit written materials (or, at 
        the sole discretion of the Council, oral testimony and 
        oral argument).
          [(2) Decision.--
                  [(A) Proposed decision.--A Council decision 
                to grant an appeal under this subsection shall 
                be made by a vote of not fewer than \2/3\ of 
                the voting members then serving, including an 
                affirmative vote by the Chairperson. Not later 
                than 60 days after the date of a hearing under 
                paragraph (1), the Council shall submit a 
                report to, and may testify before, the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Financial Services of the House of 
                Representatives on the proposed decision of the 
                Council regarding an appeal under paragraph 
                (1), which report shall include a statement of 
                the basis for the proposed decision of the 
                Council.
                  [(B) Notice of final decision.--The Council 
                shall notify the subject entity of the final 
                decision of the Council regarding an appeal 
                under paragraph (1), which notice shall contain 
                a statement of the basis for the final decision 
                of the Council, not later than 60 days after 
                the later of--
                          [(i) the date of the submission of 
                        the report under subparagraph (A); or
                          [(ii) if, not later than 1 year after 
                        the date of submission of the report 
                        under subparagraph (A), the Committee 
                        on Banking, Housing, and Urban Affairs 
                        of the Senate or the Committee on 
                        Financial Services of the House of 
                        Representatives holds one or more 
                        hearings regarding such report, the 
                        date of the last such hearing.
                  [(C) Considerations.--In making a decision 
                regarding an appeal under paragraph (1), the 
                Council shall consider whether the company 
                meets the standards under section 113(a) or 
                113(b), as applicable, and the definition of 
                the term ``nonbank financial company'' under 
                section 102. The decision of the Council shall 
                be final, subject to the review under paragraph 
                (3).
          [(3) Review.--If the Council denies an appeal under 
        this subsection, the Council shall, not less frequently 
        than annually, review and reevaluate the decision.

[SEC. 118. COUNCIL FUNDING.

  [Any expenses of the Council shall be treated as expenses of, 
and paid by, the Office of Financial Research.

[SEC. 119. RESOLUTION OF SUPERVISORY JURISDICTIONAL DISPUTES AMONG 
                    MEMBER AGENCIES.

  [(a) Request for Council Recommendation.--The Council shall 
seek to resolve a dispute among 2 or more member agencies, if--
          [(1) a member agency has a dispute with another 
        member agency about the respective jurisdiction over a 
        particular bank holding company, nonbank financial 
        company, or financial activity or product (excluding 
        matters for which another dispute mechanism 
        specifically has been provided under title X);
          [(2) the Council determines that the disputing 
        agencies cannot, after a demonstrated good faith 
        effort, resolve the dispute without the intervention of 
        the Council; and
          [(3) any of the member agencies involved in the 
        dispute--
                  [(A) provides all other disputants prior 
                notice of the intent to request dispute 
                resolution by the Council; and
                  [(B) requests in writing, not earlier than 14 
                days after providing the notice described in 
                subparagraph (A), that the Council seek to 
                resolve the dispute.
  [(b) Council Recommendation.--The Council shall seek to 
resolve each dispute described in subsection (a)--
          [(1) within a reasonable time after receiving the 
        dispute resolution request;
          [(2) after consideration of relevant information 
        provided by each agency party to the dispute; and
          [(3) by agreeing with 1 of the disputants regarding 
        the entirety of the matter, or by determining a 
        compromise position.
  [(c) Form of Recommendation.--Any Council recommendation 
under this section shall--
          [(1) be in writing;
          [(2) include an explanation of the reasons therefor; 
        and
          [(3) be approved by the affirmative vote of \2/3\ of 
        the voting members of the Council then serving.
  [(d) Nonbinding Effect.--Any recommendation made by the 
Council under subsection (c) shall not be binding on the 
Federal agencies that are parties to the dispute.

[SEC. 120. ADDITIONAL STANDARDS APPLICABLE TO ACTIVITIES OR PRACTICES 
                    FOR FINANCIAL STABILITY PURPOSES.

  [(a) In General.--The Council may provide for more stringent 
regulation of a financial activity by issuing recommendations 
to the primary financial regulatory agencies to apply new or 
heightened standards and safeguards, including standards 
enumerated in section 115, for a financial activity or practice 
conducted by bank holding companies or nonbank financial 
companies under their respective jurisdictions, if the Council 
determines that the conduct, scope, nature, size, scale, 
concentration, or interconnectedness of such activity or 
practice could create or increase the risk of significant 
liquidity, credit, or other problems spreading among bank 
holding companies and nonbank financial companies, financial 
markets of the United States, or low-income, minority, or 
underserved communities.
  [(b) Procedure for Recommendations to Regulators.--
          [(1) Notice and opportunity for comment.--The Council 
        shall consult with the primary financial regulatory 
        agencies and provide notice to the public and 
        opportunity for comment for any proposed recommendation 
        that the primary financial regulatory agencies apply 
        new or heightened standards and safeguards for a 
        financial activity or practice.
          [(2) Criteria.--The new or heightened standards and 
        safeguards for a financial activity or practice 
        recommended under paragraph (1)--
                  [(A) shall take costs to long-term economic 
                growth into account; and
                  [(B) may include prescribing the conduct of 
                the activity or practice in specific ways (such 
                as by limiting its scope, or applying 
                particular capital or risk management 
                requirements to the conduct of the activity) or 
                prohibiting the activity or practice.
  [(c) Implementation of Recommended Standards.--
          [(1) Role of primary financial regulatory agency.--
                  [(A) In general.--Each primary financial 
                regulatory agency may impose, require reports 
                regarding, examine for compliance with, and 
                enforce standards in accordance with this 
                section with respect to those entities for 
                which it is the primary financial regulatory 
                agency.
                  [(B) Rule of construction.--The authority 
                under this paragraph is in addition to, and 
                does not limit, any other authority of a 
                primary financial regulatory agency. Compliance 
                by an entity with actions taken by a primary 
                financial regulatory agency under this section 
                shall be enforceable in accordance with the 
                statutes governing the respective jurisdiction 
                of the primary financial regulatory agency over 
                the entity, as if the agency action were taken 
                under those statutes.
          [(2) Imposition of standards.--The primary financial 
        regulatory agency shall impose the standards 
        recommended by the Council in accordance with 
        subsection (a), or similar standards that the Council 
        deems acceptable, or shall explain in writing to the 
        Council, not later than 90 days after the date on which 
        the Council issues the recommendation, why the agency 
        has determined not to follow the recommendation of the 
        Council.
  [(d) Report to Congress.--The Council shall report to 
Congress on--
          [(1) any recommendations issued by the Council under 
        this section;
          [(2) the implementation of, or failure to implement, 
        such recommendation on the part of a primary financial 
        regulatory agency; and
          [(3) in any case in which no primary financial 
        regulatory agency exists for the nonbank financial 
        company conducting financial activities or practices 
        referred to in subsection (a), recommendations for 
        legislation that would prevent such activities or 
        practices from threatening the stability of the 
        financial system of the United States.
  [(e) Effect of Rescission of Identification.--
          [(1) Notice.--The Council may recommend to the 
        relevant primary financial regulatory agency that a 
        financial activity or practice no longer requires any 
        standards or safeguards implemented under this section.
          [(2) Determination of primary financial regulatory 
        agency to continue.--
                  [(A) In general.--Upon receipt of a 
                recommendation under paragraph (1), a primary 
                financial regulatory agency that has imposed 
                standards under this section shall determine 
                whether such standards should remain in effect.
                  [(B) Appeal process.--Each primary financial 
                regulatory agency that has imposed standards 
                under this section shall promulgate regulations 
                to establish a procedure under which entities 
                under its jurisdiction may appeal a 
                determination by such agency under this 
                paragraph that standards imposed under this 
                section should remain in effect.

[SEC. 121. MITIGATION OF RISKS TO FINANCIAL STABILITY.

  [(a) Mitigatory Actions.--If the Board of Governors 
determines that a bank holding company with total consolidated 
assets of $50,000,000,000 or more, or a nonbank financial 
company supervised by the Board of Governors, poses a grave 
threat to the financial stability of the United States, the 
Board of Governors, upon an affirmative vote of not fewer than 
\2/3\ of the voting members of the Council then serving, 
shall--
          [(1) limit the ability of the company to merge with, 
        acquire, consolidate with, or otherwise become 
        affiliated with another company;
          [(2) restrict the ability of the company to offer a 
        financial product or products;
          [(3) require the company to terminate one or more 
        activities;
          [(4) impose conditions on the manner in which the 
        company conducts 1 or more activities; or
          [(5) if the Board of Governors determines that the 
        actions described in paragraphs (1) through (4) are 
        inadequate to mitigate a threat to the financial 
        stability of the United States in its recommendation, 
        require the company to sell or otherwise transfer 
        assets or off-balance-sheet items to unaffiliated 
        entities.
  [(b) Notice and Hearing.--
          [(1) In general.--The Board of Governors, in 
        consultation with the Council, shall provide to a 
        company described in subsection (a) written notice that 
        such company is being considered for mitigatory action 
        pursuant to this section, including an explanation of 
        the basis for, and description of, the proposed 
        mitigatory action.
          [(2) Hearing.--Not later than 30 days after the date 
        of receipt of notice under paragraph (1), the company 
        may request, in writing, an opportunity for a written 
        or oral hearing before the Board of Governors to 
        contest the proposed mitigatory action. Upon receipt of 
        a timely request, the Board of Governors shall fix a 
        time (not later than 30 days after the date of receipt 
        of the request) and place at which such company may 
        appear, personally or through counsel, to submit 
        written materials (or, at the discretion of the Board 
        of Governors, in consultation with the Council, oral 
        testimony and oral argument).
          [(3) Decision.--Not later than 60 days after the date 
        of a hearing under paragraph (2), or not later than 60 
        days after the provision of a notice under paragraph 
        (1) if no hearing was held, the Board of Governors 
        shall notify the company of the final decision of the 
        Board of Governors, including the results of the vote 
        of the Council, as described in subsection (a).
  [(c) Factors for Consideration.--The Board of Governors and 
the Council shall take into consideration the factors set forth 
in subsection (a) or (b) of section 113, as applicable, in 
making any determination under subsection (a).
  [(d) Application to Foreign Financial Companies.--The Board 
of Governors may prescribe regulations regarding the 
application of this section to foreign nonbank financial 
companies supervised by the Board of Governors and foreign-
based bank holding companies--
          [(1) giving due regard to the principle of national 
        treatment and equality of competitive opportunity; and
          [(2) taking into account the extent to which the 
        foreign nonbank financial company or foreign-based bank 
        holding company is subject on a consolidated basis to 
        home country standards that are comparable to those 
        applied to financial companies in the United States.]

SEC. 118. COUNCIL FUNDING.

  There is authorized to be appropriated to the Council 
$4,000,000 for fiscal year 2018 and each fiscal year thereafter 
to carry out the duties of the Council.

           *       *       *       *       *       *       *

               [Subtitle B--Office of Financial Research

[SEC. 151. DEFINITIONS.

  [For purposes of this subtitle--
          [(1) the terms ``Office'' and ``Director'' mean the 
        Office of Financial Research established under this 
        subtitle and the Director thereof, respectively;
          [(2) the term ``financial company'' has the same 
        meaning as in title II, and includes an insured 
        depository institution and an insurance company;
          [(3) the term ``Data Center'' means the data center 
        established under section 154;
          [(4) the term ``Research and Analysis Center'' means 
        the research and analysis center established under 
        section 154;
          [(5) the term ``financial transaction data'' means 
        the structure and legal description of a financial 
        contract, with sufficient detail to describe the rights 
        and obligations between counterparties and make 
        possible an independent valuation;
          [(6) the term ``position data''--
                  [(A) means data on financial assets or 
                liabilities held on the balance sheet of a 
                financial company, where positions are created 
                or changed by the execution of a financial 
                transaction; and
                  [(B) includes information that identifies 
                counterparties, the valuation by the financial 
                company of the position, and information that 
                makes possible an independent valuation of the 
                position;
          [(7) the term ``financial contract'' means a legally 
        binding agreement between 2 or more counterparties, 
        describing rights and obligations relating to the 
        future delivery of items of intrinsic or extrinsic 
        value among the counterparties; and
          [(8) the term ``financial instrument'' means a 
        financial contract in which the terms and conditions 
        are publicly available, and the roles of one or more of 
        the counterparties are assignable without the consent 
        of any of the other counterparties (including common 
        stock of a publicly traded company, government bonds, 
        or exchange traded futures and options contracts).

[SEC. 152. OFFICE OF FINANCIAL RESEARCH ESTABLISHED.

  [(a) Establishment.--There is established within the 
Department of the Treasury the Office of Financial Research.
  [(b) Director.--
          [(1) In general.--The Office shall be headed by a 
        Director, who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
          [(2) Term of service.--The Director shall serve for a 
        term of 6 years, except that, in the event that a 
        successor is not nominated and confirmed by the end of 
        the term of service of a Director, the Director may 
        continue to serve until such time as the next Director 
        is appointed and confirmed.
          [(3) Executive level.--The Director shall be 
        compensated at Level III of the Executive Schedule.
          [(4) Prohibition on dual service.--The individual 
        serving in the position of Director may not, during 
        such service, also serve as the head of any financial 
        regulatory agency.
          [(5) Responsibilities, duties, and authority.--The 
        Director shall have sole discretion in the manner in 
        which the Director fulfills the responsibilities and 
        duties and exercises the authorities described in this 
        subtitle.
  [(c) Budget.--The Director, in consultation with the 
Chairperson, shall establish the annual budget of the Office.
  [(d) Office Personnel.--
          [(1) In general.--The Director, in consultation with 
        the Chairperson, may fix the number of, and appoint and 
        direct, all employees of the Office.
          [(2) Compensation.--The Director, in consultation 
        with the Chairperson, shall fix, adjust, and administer 
        the pay for all employees of the Office, without regard 
        to chapter 51 or subchapter III of chapter 53 of title 
        5, United States Code, relating to classification of 
        positions and General Schedule pay rates.
          [(3) Comparability.--Section 1206(a) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 1833b(a)) is amended--
                  [(A) by striking ``Finance Board,'' and 
                inserting ``Finance Board, the Office of 
                Financial Research, and the Bureau of Consumer 
                Financial Protection''; and
                  [(B) by striking ``and the Office of Thrift 
                Supervision,''.
          [(4) Senior executives.--Section 3132(a)(1)(D) of 
        title 5, United States Code, is amended by striking 
        ``and the National Credit Union Administration;'' and 
        inserting ``the National Credit Union Administration, 
        the Bureau of Consumer Financial Protection, and the 
        Office of Financial Research;''.
  [(e) Assistance From Federal Agencies.--Any department or 
agency of the United States may provide to the Office and any 
special advisory, technical, or professional committees 
appointed by the Office, such services, funds, facilities, 
staff, and other support services as the Office may determine 
advisable. Any Federal Government employee may be detailed to 
the Office without reimbursement, and such detail shall be 
without interruption or loss of civil service status or 
privilege.
  [(f) Procurement of Temporary and Intermittent Services.--The 
Director may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, at rates for 
individuals which do not exceed the daily equivalent of the 
annual rate of basic pay prescribed for Level V of the 
Executive Schedule under section 5316 of such title.
  [(g) Post-employment Prohibitions.--The Secretary, with the 
concurrence of the Director of the Office of Government Ethics, 
shall issue regulations prohibiting the Director and any 
employee of the Office who has had access to the transaction or 
position data maintained by the Data Center or other business 
confidential information about financial entities required to 
report to the Office from being employed by or providing advice 
or consulting services to a financial company, for a period of 
1 year after last having had access in the course of official 
duties to such transaction or position data or business 
confidential information, regardless of whether that entity is 
required to report to the Office. For employees whose access to 
business confidential information was limited, the regulations 
may provide, on a case-by-case basis, for a shorter period of 
post-employment prohibition, provided that the shorter period 
does not compromise business confidential information.
  [(h) Technical and Professional Advisory Committees.--The 
Office, in consultation with the Chairperson, may appoint such 
special advisory, technical, or professional committees as may 
be useful in carrying out the functions of the Office, and the 
members of such committees may be staff of the Office, or other 
persons, or both.
  [(i) Fellowship Program.--The Office, in consultation with 
the Chairperson, may establish and maintain an academic and 
professional fellowship program, under which qualified 
academics and professionals shall be invited to spend not 
longer than 2 years at the Office, to perform research and to 
provide advanced training for Office personnel.
  [(j) Executive Schedule Compensation.--Section 5314 of title 
5, United States Code, is amended by adding at the end the 
following new item:Director of the Office of Financial 
Research.''.

[SEC. 153. PURPOSE AND DUTIES OF THE OFFICE.

  [(a) Purpose and Duties.--The purpose of the Office is to 
support the Council in fulfilling the purposes and duties of 
the Council, as set forth in subtitle A, and to support member 
agencies, by--
          [(1) collecting data on behalf of the Council, and 
        providing such data to the Council and member agencies;
          [(2) standardizing the types and formats of data 
        reported and collected;
          [(3) performing applied research and essential long-
        term research;
          [(4) developing tools for risk measurement and 
        monitoring;
          [(5) performing other related services;
          [(6) making the results of the activities of the 
        Office available to financial regulatory agencies; and
          [(7) assisting such member agencies in determining 
        the types and formats of data authorized by this Act to 
        be collected by such member agencies.
  [(b) Administrative Authority.--The Office may--
          [(1) share data and information, including software 
        developed by the Office, with the Council, member 
        agencies, and the Bureau of Economic Analysis, which 
        shared data, information, and software--
                  [(A) shall be maintained with at least the 
                same level of security as is used by the 
                Office; and
                  [(B) may not be shared with any individual or 
                entity without the permission of the Council;
          [(2) sponsor and conduct research projects; and
          [(3) assist, on a reimbursable basis, with financial 
        analyses undertaken at the request of other Federal 
        agencies that are not member agencies.
  [(c) Rulemaking Authority.--
          [(1) Scope.--The Office, in consultation with the 
        Chairperson, shall issue rules, regulations, and orders 
        only to the extent necessary to carry out the purposes 
        and duties described in paragraphs (1), (2), and (7) of 
        subsection (a).
          [(2) Standardization.--Member agencies, in 
        consultation with the Office, shall implement 
        regulations promulgated by the Office under paragraph 
        (1) to standardize the types and formats of data 
        reported and collected on behalf of the Council, as 
        described in subsection (a)(2). If a member agency 
        fails to implement such regulations prior to the 
        expiration of the 3-year period following the date of 
        publication of final regulations, the Office, in 
        consultation with the Chairperson, may implement such 
        regulations with respect to the financial entities 
        under the jurisdiction of the member agency. This 
        paragraph shall not supersede or interfere with the 
        independent authority of a member agency under other 
        law to collect data, in such format and manner as the 
        member agency requires.
  [(d) Testimony.--
          [(1) In general.--The Director of the Office shall 
        report to and testify before the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives annually on the activities of the 
        Office, including the work of the Data Center and the 
        Research and Analysis Center, and the assessment of the 
        Office of significant financial market developments and 
        potential emerging threats to the financial stability 
        of the United States.
          [(2) No prior review.--No officer or agency of the 
        United States shall have any authority to require the 
        Director to submit the testimony required under 
        paragraph (1) or other congressional testimony to any 
        officer or agency of the United States for approval, 
        comment, or review prior to the submission of such 
        testimony. Any such testimony to Congress shall include 
        a statement that the views expressed therein are those 
        of the Director and do not necessarily represent the 
        views of the President.
  [(e) Additional Reports.--The Director may provide additional 
reports to Congress concerning the financial stability of the 
United States. The Director shall notify the Council of any 
such additional reports provided to Congress.
  [(f) Subpoena.--
          [(1) In general.--The Director may require from a 
        financial company, by subpoena, the production of the 
        data requested under subsection (a)(1) and section 
        154(b)(1), but only upon a written finding by the 
        Director that--
                  [(A) such data is required to carry out the 
                functions described under this subtitle; and
                  [(B) the Office has coordinated with the 
                relevant primary financial regulatory agency, 
                as required under section 154(b)(1)(B)(ii).
          [(2) Format.--Subpoenas under paragraph (1) shall 
        bear the signature of the Director, and shall be served 
        by any person or class of persons designated by the 
        Director for that purpose.
          [(3) Enforcement.--In the case of contumacy or 
        failure to obey a subpoena, the subpoena shall be 
        enforceable by order of any appropriate district court 
        of the United States. Any failure to obey the order of 
        the court may be punished by the court as a contempt of 
        court.

[SEC. 154. ORGANIZATIONAL STRUCTURE; RESPONSIBILITIES OF PRIMARY 
                    PROGRAMMATIC UNITS.

  [(a) In General.--There are established within the Office, to 
carry out the programmatic responsibilities of the Office--
          [(1) the Data Center; and
          [(2) the Research and Analysis Center.
  [(b) Data Center.--
          [(1) General duties.--
                  [(A) Data collection.--The Data Center, on 
                behalf of the Council, shall collect, validate, 
                and maintain all data necessary to carry out 
                the duties of the Data Center, as described in 
                this subtitle. The data assembled shall be 
                obtained from member agencies, commercial data 
                providers, publicly available data sources, and 
                financial entities under subparagraph (B).
                  [(B) Authority.--
                          [(i) In general.--The Office may, as 
                        determined by the Council or by the 
                        Director in consultation with the 
                        Council, require the submission of 
                        periodic and other reports from any 
                        financial company for the purpose of 
                        assessing the extent to which a 
                        financial activity or financial market 
                        in which the financial company 
                        participates, or the financial company 
                        itself, poses a threat to the financial 
                        stability of the United States.
                          [(ii) Mitigation of report burden.--
                        Before requiring the submission of a 
                        report from any financial company that 
                        is regulated by a member agency, any 
                        primary financial regulatory agency, a 
                        foreign supervisory authority, or the 
                        Office shall coordinate with such 
                        agencies or authority, and shall, 
                        whenever possible, rely on information 
                        available from such agencies or 
                        authority.
                          [(iii) Collection of financial 
                        transaction and position data.--The 
                        Office shall collect, on a schedule 
                        determined by the Director, in 
                        consultation with the Council, 
                        financial transaction data and position 
                        data from financial companies.
                  [(C) Rulemaking.--The Office shall promulgate 
                regulations pursuant to subsections (a)(1), 
                (a)(2), (a)(7), and (c)(1) of section 153 
                regarding the type and scope of the data to be 
                collected by the Data Center under this 
                paragraph.
          [(2) Responsibilities.--
                  [(A) Publication.--The Data Center shall 
                prepare and publish, in a manner that is easily 
                accessible to the public--
                          [(i) a financial company reference 
                        database;
                          [(ii) a financial instrument 
                        reference database; and
                          [(iii) formats and standards for 
                        Office data, including standards for 
                        reporting financial transaction and 
                        position data to the Office.
                  [(B) Confidentiality.--The Data Center shall 
                not publish any confidential data under 
                subparagraph (A).
          [(3) Information security.--The Director shall ensure 
        that data collected and maintained by the Data Center 
        are kept secure and protected against unauthorized 
        disclosure.
          [(4) Catalog of financial entities and instruments.--
        The Data Center shall maintain a catalog of the 
        financial entities and instruments reported to the 
        Office.
          [(5) Availability to the council and member 
        agencies.--The Data Center shall make data collected 
        and maintained by the Data Center available to the 
        Council and member agencies, as necessary to support 
        their regulatory responsibilities.
          [(6) Other authority.--The Office shall, after 
        consultation with the member agencies, provide certain 
        data to financial industry participants and to the 
        general public to increase market transparency and 
        facilitate research on the financial system, to the 
        extent that intellectual property rights are not 
        violated, business confidential information is properly 
        protected, and the sharing of such information poses no 
        significant threats to the financial system of the 
        United States.
  [(c) Research and Analysis Center.--
          [(1) General duties.--The Research and Analysis 
        Center, on behalf of the Council, shall develop and 
        maintain independent analytical capabilities and 
        computing resources--
                  [(A) to develop and maintain metrics and 
                reporting systems for risks to the financial 
                stability of the United States;
                  [(B) to monitor, investigate, and report on 
                changes in systemwide risk levels and patterns 
                to the Council and Congress;
                  [(C) to conduct, coordinate, and sponsor 
                research to support and improve regulation of 
                financial entities and markets;
                  [(D) to evaluate and report on stress tests 
                or other stability-related evaluations of 
                financial entities overseen by the member 
                agencies;
                  [(E) to maintain expertise in such areas as 
                may be necessary to support specific requests 
                for advice and assistance from financial 
                regulators;
                  [(F) to investigate disruptions and failures 
                in the financial markets, report findings, and 
                make recommendations to the Council based on 
                those findings;
                  [(G) to conduct studies and provide advice on 
                the impact of policies related to systemic 
                risk; and
                  [(H) to promote best practices for financial 
                risk management.
  [(d) Reporting Responsibilities.--
          [(1) Required reports.--Not later than 2 years after 
        the date of enactment of this Act, and not later than 
        120 days after the end of each fiscal year thereafter, 
        the Office shall prepare and submit a report to 
        Congress.
          [(2) Content.--Each report required by this 
        subsection shall assess the state of the United States 
        financial system, including--
                  [(A) an analysis of any threats to the 
                financial stability of the United States;
                  [(B) the status of the efforts of the Office 
                in meeting the mission of the Office; and
                  [(C) key findings from the research and 
                analysis of the financial system by the Office.

[SEC. 155. FUNDING.

  [(a) Financial Research Fund.--
          [(1) Fund established.--There is established in the 
        Treasury of the United States a separate fund to be 
        known as the ``Financial Research Fund''.
          [(2) Fund receipts.--All amounts provided to the 
        Office under subsection (c), and all assessments that 
        the Office receives under subsection (d) shall be 
        deposited into the Financial Research Fund.
          [(3) Investments authorized.--
                  [(A) Amounts in fund may be invested.--The 
                Director may request the Secretary to invest 
                the portion of the Financial Research Fund that 
                is not, in the judgment of the Director, 
                required to meet the needs of the Office.
                  [(B) Eligible investments.--Investments shall 
                be made by the Secretary in obligations of the 
                United States or obligations that are 
                guaranteed as to principal and interest by the 
                United States, with maturities suitable to the 
                needs of the Financial Research Fund, as 
                determined by the Director.
          [(4) Interest and proceeds credited.--The interest 
        on, and the proceeds from the sale or redemption of, 
        any obligations held in the Financial Research Fund 
        shall be credited to and form a part of the Financial 
        Research Fund.
  [(b) Use of Funds.--
          [(1) In general.--Funds obtained by, transferred to, 
        or credited to the Financial Research Fund shall be 
        immediately available to the Office, and shall remain 
        available until expended, to pay the expenses of the 
        Office in carrying out the duties and responsibilities 
        of the Office.
          [(2) Fees, assessments, and other funds not 
        government funds.--Funds obtained by, transferred to, 
        or credited to the Financial Research Fund shall not be 
        construed to be Government funds or appropriated 
        moneys.
          [(3) Amounts not subject to apportionment.--
        Notwithstanding any other provision of law, amounts in 
        the Financial Research Fund shall not be subject to 
        apportionment for purposes of chapter 15 of title 31, 
        United States Code, or under any other authority, or 
        for any other purpose.
  [(c) Interim Funding.--During the 2-year period following the 
date of enactment of this Act, the Board of Governors shall 
provide to the Office an amount sufficient to cover the 
expenses of the Office.
  [(d) Permanent Self-funding.--Beginning 2 years after the 
date of enactment of this Act, the Secretary shall establish, 
by regulation, and with the approval of the Council, an 
assessment schedule, including the assessment base and rates, 
applicable to bank holding companies with total consolidated 
assets of 50,000,000,000 or greater and nonbank financial 
companies supervised by the Board of Governors, that takes into 
account differences among such companies, based on the 
considerations for establishing the prudential standards under 
section 115, to collect assessments equal to the total expenses 
of the Office.

[SEC. 156. TRANSITION OVERSIGHT.

  [(a) Purpose.--The purpose of this section is to ensure that 
the Office--
          [(1) has an orderly and organized startup;
          [(2) attracts and retains a qualified workforce; and
          [(3) establishes comprehensive employee training and 
        benefits programs.
  [(b) Reporting Requirement.--
          [(1) In general.--The Office shall submit an annual 
        report to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives that includes 
        the plans described in paragraph (2).
          [(2) Plans.--The plans described in this paragraph 
        are as follows:
                  [(A) Training and workforce development 
                plan.--The Office shall submit a training and 
                workforce development plan that includes, to 
                the extent practicable--
                          [(i) identification of skill and 
                        technical expertise needs and actions 
                        taken to meet those requirements;
                          [(ii) steps taken to foster 
                        innovation and creativity;
                          [(iii) leadership development and 
                        succession planning; and
                          [(iv) effective use of technology by 
                        employees.
                  [(B) Workplace flexibility plan.--The Office 
                shall submit a workforce flexibility plan that 
                includes, to the extent practicable--
                          [(i) telework;
                          [(ii) flexible work schedules;
                          [(iii) phased retirement;
                          [(iv) reemployed annuitants;
                          [(v) part-time work;
                          [(vi) job sharing;
                          [(vii) parental leave benefits and 
                        childcare assistance;
                          [(viii) domestic partner benefits;
                          [(ix) other workplace flexibilities; 
                        or
                          [(x) any combination of the items 
                        described in clauses (i) through (ix).
                  [(C) Recruitment and retention plan.--The 
                Office shall submit a recruitment and retention 
                plan that includes, to the extent practicable, 
                provisions relating to--
                          [(i) the steps necessary to target 
                        highly qualified applicant pools with 
                        diverse backgrounds;
                          [(ii) streamlined employment 
                        application processes;
                          [(iii) the provision of timely 
                        notification of the status of 
                        employment applications to applicants; 
                        and
                          [(iv) the collection of information 
                        to measure indicators of hiring 
                        effectiveness.
  [(c) Expiration.--The reporting requirement under subsection 
(b) shall terminate 5 years after the date of enactment of this 
Act.
  [(d) Rule of Construction.--Nothing in this section may be 
construed to affect--
          [(1) a collective bargaining agreement, as that term 
        is defined in section 7103(a)(8) of title 5, United 
        States Code, that is in effect on the date of enactment 
        of this Act; or
          [(2) the rights of employees under chapter 71 of 
        title 5, United States Code.]

Subtitle C--Additional Board of Governors Authority for Certain Nonbank 
             Financial Companies and Bank Holding Companies

[SEC. 161. REPORTS BY AND EXAMINATIONS OF NONBANK FINANCIAL COMPANIES 
                    BY THE BOARD OF GOVERNORS.

  [(a) Reports.--
          [(1) In general.--The Board of Governors may require 
        each nonbank financial company supervised by the Board 
        of Governors, and any subsidiary thereof, to submit 
        reports under oath, to keep the Board of Governors 
        informed as to--
                  [(A) the financial condition of the company 
                or subsidiary, systems of the company or 
                subsidiary for monitoring and controlling 
                financial, operating, and other risks, and the 
                extent to which the activities and operations 
                of the company or subsidiary pose a threat to 
                the financial stability of the United States; 
                and
                  [(B) compliance by the company or subsidiary 
                with the requirements of this title.
          [(2) Use of existing reports and information.--In 
        carrying out subsection (a), the Board of Governors 
        shall, to the fullest extent possible, use--
                  [(A) reports and supervisory information that 
                a nonbank financial company or subsidiary 
                thereof has been required to provide to other 
                Federal or State regulatory agencies;
                  [(B) information otherwise obtainable from 
                Federal or State regulatory agencies;
                  [(C) information that is otherwise required 
                to be reported publicly; and
                  [(D) externally audited financial statements 
                of such company or subsidiary.
          [(3) Availability.--Upon the request of the Board of 
        Governors, a nonbank financial company supervised by 
        the Board of Governors, or a subsidiary thereof, shall 
        promptly provide to the Board of Governors any 
        information described in paragraph (2).
  [(b) Examinations.--
          [(1) In general.--Subject to paragraph (2), the Board 
        of Governors may examine any nonbank financial company 
        supervised by the Board of Governors and any subsidiary 
        of such company, to inform the Board of Governors of--
                  [(A) the nature of the operations and 
                financial condition of the company and such 
                subsidiary;
                  [(B) the financial, operational, and other 
                risks of the company or such subsidiary that 
                may pose a threat to the safety and soundness 
                of such company or subsidiary or to the 
                financial stability of the United States;
                  [(C) the systems for monitoring and 
                controlling such risks; and
                  [(D) compliance by the company or such 
                subsidiary with the requirements of this title.
          [(2) Use of examination reports and information.--For 
        purposes of this subsection, the Board of Governors 
        shall, to the fullest extent possible, rely on reports 
        of examination of any subsidiary depository institution 
        or functionally regulated subsidiary made by the 
        primary financial regulatory agency for that 
        subsidiary, and on information described in subsection 
        (a)(2).
  [(c) Coordination With Primary Financial Regulatory Agency.--
The Board of Governors shall--
          [(1) provide reasonable notice to, and consult with, 
        the primary financial regulatory agency for any 
        subsidiary before requiring a report or commencing an 
        examination of such subsidiary under this section; and
          [(2) avoid duplication of examination activities, 
        reporting requirements, and requests for information, 
        to the fullest extent possible.

[SEC. 162. ENFORCEMENT.

  [(a) In General.--Except as provided in subsection (b), a 
nonbank financial company supervised by the Board of Governors 
and any subsidiaries of such company (other than any depository 
institution subsidiary) shall be subject to the provisions of 
subsections (b) through (n) of section 8 of the Federal Deposit 
Insurance Act (12 U.S.C. 1818), in the same manner and to the 
same extent as if the company were a bank holding company, as 
provided in section 8(b)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(b)(3)).
  [(b) Enforcement Authority for Functionally Regulated 
Subsidiaries.--
          [(1) Referral.--If the Board of Governors determines 
        that a condition, practice, or activity of a depository 
        institution subsidiary or functionally regulated 
        subsidiary of a nonbank financial company supervised by 
        the Board of Governors does not comply with the 
        regulations or orders prescribed by the Board of 
        Governors under this Act, or otherwise poses a threat 
        to the financial stability of the United States, the 
        Board of Governors may recommend, in writing, to the 
        primary financial regulatory agency for the subsidiary 
        that such agency initiate a supervisory action or 
        enforcement proceeding. The recommendation shall be 
        accompanied by a written explanation of the concerns 
        giving rise to the recommendation.
          [(2) Back-up authority of the board of governors.--
        If, during the 60-day period beginning on the date on 
        which the primary financial regulatory agency receives 
        a recommendation under paragraph (1), the primary 
        financial regulatory agency does not take supervisory 
        or enforcement action against a subsidiary that is 
        acceptable to the Board of Governors, the Board of 
        Governors (upon a vote of its members) may take the 
        recommended supervisory or enforcement action, as if 
        the subsidiary were a bank holding company subject to 
        supervision by the Board of Governors.]

SEC. 163. ACQUISITIONS.

  [(a) Acquisitions of Banks; Treatment as a Bank Holding 
Company.--For purposes of section 3 of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1842), a nonbank financial company 
supervised by the Board of Governors shall be deemed to be, and 
shall be treated as, a bank holding company.]
  [(b)] (a) Acquisition of Nonbank Companies.--
          (1) Prior notice for large acquisitions.--
        Notwithstanding section 4(k)(6)(B) of the Bank Holding 
        Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)), a bank 
        holding company with total consolidated assets equal to 
        or greater than $50,000,000,000 [or a nonbank financial 
        company supervised by the Board of Governors] shall not 
        acquire direct or indirect ownership or control of any 
        voting shares of any company (other than an insured 
        depository institution) that is engaged in activities 
        described in section 4(k) of the Bank Holding Company 
        Act of 1956 having total consolidated assets of 
        $10,000,000,000 or more, without providing written 
        notice to the Board of Governors in advance of the 
        transaction.
          (2) Exemptions.--The prior notice requirement in 
        paragraph (1) shall not apply with regard to the 
        acquisition of shares that would qualify for the 
        exemptions in section 4(c) or section 4(k)(4)(E) of the 
        Bank Holding Company Act of 1956 (12 U.S.C. 1843(c) and 
        (k)(4)(E)).
          (3) Notice procedures.--The notice procedures set 
        forth in section 4(j)(1) of the Bank Holding Company 
        Act of 1956 (12 U.S.C. 1843(j)(1)), without regard to 
        section 4(j)(3) of that Act, shall apply to an 
        acquisition of any company (other than an insured 
        depository institution) by a bank holding company with 
        total consolidated assets equal to or greater than 
        $50,000,000,000 [or a nonbank financial company 
        supervised by the Board of Governors], as described in 
        paragraph (1), including any such company engaged in 
        activities described in section 4(k) of that Act.
          (4) Standards for review.--In addition to the 
        standards provided in section 4(j)(2) of the Bank 
        Holding Company Act of 1956 (12 U.S.C. 1843(j)(2)), the 
        Board of Governors shall consider the extent to which 
        the proposed acquisition would result in greater or 
        more concentrated risks to global or United States 
        financial stability or the United States economy.
          (5) Hart-Scott-Rodino filing requirement.--Solely for 
        purposes of section 7A(c)(8) of the Clayton Act (15 
        U.S.C. 18a(c)(8)), the transactions subject to the 
        requirements of paragraph (1) shall be treated as if 
        Board of Governors approval is not required.

[SEC. 164. PROHIBITION AGAINST MANAGEMENT INTERLOCKS BETWEEN CERTAIN 
                    FINANCIAL COMPANIES.

  [A nonbank financial company supervised by the Board of 
Governors shall be treated as a bank holding company for 
purposes of the Depository Institutions Management Interlocks 
Act (12 U.S.C. 3201 et seq.), except that the Board of 
Governors shall not exercise the authority provided in section 
7 of that Act (12 U.S.C. 3207) to permit service by a 
management official of a nonbank financial company supervised 
by the Board of Governors as a management official of any bank 
holding company with total consolidated assets equal to or 
greater than $50,000,000,000, or other nonaffiliated nonbank 
financial company supervised by the Board of Governors (other 
than to provide a temporary exemption for interlocks resulting 
from a merger, acquisition, or consolidation).]

SEC. 165. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR [NONBANK 
                    FINANCIAL COMPANIES SUPERVISED BY THE BOARD OF 
                    GOVERNORS AND] CERTAIN BANK HOLDING COMPANIES.

  (a) In General.--
          (1) Purpose.--In order to prevent or mitigate risks 
        to the financial stability of the United States that 
        could arise from the material financial distress or 
        failure, or ongoing activities, of large, 
        interconnected financial institutions, the Board of 
        Governors shall, on its own or pursuant to 
        recommendations by the Council under section 115, 
        establish prudential standards for [nonbank financial 
        companies supervised by the Board of Governors and] 
        bank holding companies with total consolidated assets 
        equal to or greater than $50,000,000,000 that--
                  (A) are more stringent than the standards and 
                requirements applicable to nonbank financial 
                companies and bank holding companies that do 
                not present similar risks to the financial 
                stability of the United States; and
                  (B) increase in stringency, based on the 
                considerations identified in subsection (b)(3).
          [(2) Tailored application.--
                  [(A) In general.--In prescribing more 
                stringent prudential standards under this 
                section, the Board of Governors may, on its own 
                or pursuant to a recommendation by the Council 
                in accordance with section 115, differentiate 
                among companies on an individual basis or by 
                category, taking into consideration their 
                capital structure, riskiness, complexity, 
                financial activities (including the financial 
                activities of their subsidiaries), size, and 
                any other risk-related factors that the Board 
                of Governors deems appropriate.
                  [(B) Adjustment of threshold for application 
                of certain standards.--The Board of Governors 
                may, pursuant to a recommendation by the 
                Council in accordance with section 115, 
                establish an asset threshold above 
                $50,000,000,000 for the application of any 
                standard established under subsections (c) 
                through (g).]
          (2) Tailored application.--In prescribing more 
        stringent prudential standards under this section, the 
        Board of Governors may differentiate among companies on 
        an individual basis or by category, taking into 
        consideration their capital structure, riskiness, 
        complexity, financial activities (including the 
        financial activities of their subsidiaries), size, and 
        any other risk-related factors that the Board of 
        Governors deems appropriate.
  (b) Development of Prudential Standards.--
          (1) In general.--
                  (A) Required standards.--The Board of 
                Governors shall establish prudential standards 
                for [nonbank financial companies supervised by 
                the Board of Governors and] bank holding 
                companies described in subsection (a), that 
                shall include--
                          (i) risk-based capital requirements 
                        and leverage limits, unless the Board 
                        of Governors, in consultation with the 
                        Council, determines that such 
                        requirements are not appropriate for a 
                        company subject to more stringent 
                        prudential standards because of the 
                        activities of such company (such as 
                        investment company activities or assets 
                        under management) or structure, in 
                        which case, the Board of Governors 
                        shall apply other standards that result 
                        in similarly stringent risk controls;
                          (ii) liquidity requirements;
                          (iii) overall risk management 
                        requirements;
                          (iv) resolution plan and credit 
                        exposure report requirements; and
                          (v) concentration limits.
                  (B) Additional standards authorized.--The 
                Board of Governors may establish additional 
                prudential standards for [nonbank financial 
                companies supervised by the Board of Governors 
                and] bank holding companies described in 
                subsection (a), that include--
                          (i) a contingent capital requirement;
                          (ii) enhanced public disclosures;
                          (iii) short-term debt limits; and
                          (iv) such other prudential standards 
                        as the Board or Governors[, on its own 
                        or pursuant to a recommendation made by 
                        the Council in accordance with section 
                        115,] determines are appropriate.
          (2) Standards for foreign financial companies.--In 
        applying the standards set forth in paragraph (1) to 
        any [foreign nonbank financial company supervised by 
        the Board of Governors or] foreign-based bank holding 
        company, the Board of Governors [shall--]
                  [(A) give due] shall give due regard to the 
                principle of national treatment and equality of 
                competitive opportunity[; and].
                  [(B) take into account the extent to which 
                the foreign financial company is subject on a 
                consolidated basis to home country standards 
                that are comparable to those applied to 
                financial companies in the United States.]
          (3) Considerations.--In prescribing prudential 
        standards under paragraph (1), the Board of Governors 
        shall--
                  (A) take into account differences among 
                [nonbank financial companies supervised by the 
                Board of Governors and] bank holding companies 
                described in subsection (a), based on--
                          [(i) the factors described in 
                        subsections (a) and (b) of section 
                        113;]
                          [(ii)] (i) whether the company owns 
                        an insured depository institution;
                          [(iii)] (ii) nonfinancial activities 
                        and affiliations of the company; and
                          [(iv)] (iii) any other risk-related 
                        factors that the Board of Governors 
                        determines appropriate; and
                  [(B) to the extent possible, ensure that 
                small changes in the factors listed in 
                subsections (a) and (b) of section 113 would 
                not result in sharp, discontinuous changes in 
                the prudential standards established under 
                paragraph (1) of this subsection;
                  [(C) take into account any recommendations of 
                the Council under section 115; and]
                  [(D)] (B) adapt the required standards as 
                appropriate in light of any predominant line of 
                business of such company, including assets 
                under management or other activities for which 
                particular standards may not be appropriate.
          (4) Consultation.--Before imposing prudential 
        standards or any other requirements pursuant to this 
        section, including notices of deficiencies in 
        resolution plans and more stringent requirements or 
        divestiture orders resulting from such notices, that 
        are likely to have a significant impact on a 
        functionally regulated subsidiary or depository 
        institution subsidiary of [a nonbank financial company 
        supervised by the Board of Governors or] a bank holding 
        company described in subsection (a), the Board of 
        Governors shall consult with each Council member that 
        primarily supervises any such subsidiary with respect 
        to any such standard or requirement.
          (5) Report.--The Board of Governors shall submit an 
        annual report to Congress regarding the implementation 
        of the prudential standards required pursuant to 
        paragraph (1), including the use of such standards to 
        mitigate risks to the financial stability of the United 
        States.
  (c) Contingent Capital.--
          (1) In general.--Subsequent to submission by the 
        Council of a report to Congress [under section 115(c)], 
        the Board of Governors may issue regulations that 
        require each [nonbank financial company supervised by 
        the Board of Governors and] bank holding companies 
        described in subsection (a) to maintain a minimum 
        amount of contingent capital that is convertible to 
        equity in times of financial stress.
          (2) Factors to consider.--In issuing regulations 
        under this subsection, the Board of Governors shall 
        consider--
                  [(A) the results of the study undertaken by 
                the Council, and any recommendations of the 
                Council, under section 115(c);]
                  (A) any recommendations of the Council;
                  (B) an appropriate transition period for 
                implementation of contingent capital under this 
                subsection;
                  (C) the factors described in subsection 
                (b)(3)(A);
                  (D) capital requirements applicable to the 
                [nonbank financial company supervised by the 
                Board of Governors or] a bank holding company 
                described in subsection (a), and subsidiaries 
                thereof; and
                  (E) any other factor that the Board of 
                Governors deems appropriate.
  (d) Resolution Plan and Credit Exposure Reports.--
          (1) Resolution plan.--The Board of Governors shall 
        require each [nonbank financial company supervised by 
        the Board of Governors and] bank holding companies 
        described in subsection (a) to report [periodically] 
        not more often than every 2 years to the Board of 
        Governors, the Council, and the Corporation the plan of 
        such company for rapid and orderly resolution in the 
        event of material financial distress or failure, which 
        shall include--
                  (A) information regarding the manner and 
                extent to which any insured depository 
                institution affiliated with the company is 
                adequately protected from risks arising from 
                the activities of any nonbank subsidiaries of 
                the company;
                  (B) full descriptions of the ownership 
                structure, assets, liabilities, and contractual 
                obligations of the company;
                  (C) identification of the cross-guarantees 
                tied to different securities, identification of 
                major counterparties, and a process for 
                determining to whom the collateral of the 
                company is pledged; and
                  (D) any other information that the Board of 
                Governors and the Corporation jointly require 
                by rule or order.
          (2) Credit exposure report.--The Board of Governors 
        shall require each [nonbank financial company 
        supervised by the Board of Governors and] bank holding 
        companies described in subsection (a) to report 
        periodically to the Board of Governors, the Council, 
        and the Corporation on--
                  (A) the nature and extent to which the 
                company has credit exposure to other 
                significant nonbank financial companies and 
                significant bank holding companies; and
                  (B) the nature and extent to which other 
                significant nonbank financial companies and 
                significant bank holding companies have credit 
                exposure to that company.
          (3) Review.--[The Board]
                  (A) In general._The Board of Governors and 
                the Corporation [shall review] shall--
                          (i) review the information provided 
                        in accordance with this subsection by 
                        each [nonbank financial company 
                        supervised by the Board of Governors 
                        and] bank holding company described in 
                        subsection (a)[.]; and
                          (ii) not later than the end of the 6-
                        month period beginning on the date the 
                        bank holding company submits the 
                        resolution plan, provide feedback to 
                        the bank holding company on such plan.
                  (B) Disclosure of assessment framework.--The 
                Board of Governors shall publicly disclose, 
                including on the website of the Board of 
                Governors, the assessment framework that is 
                used to review information under this paragraph 
                and shall provide the public with a notice and 
                comment period before finalizing such 
                assessment framework.
          (4) Notice of deficiencies.--If the Board of 
        Governors and the Corporation jointly determine, based 
        on their review under paragraph (3), that the 
        resolution plan of [a nonbank financial company 
        supervised by the Board of Governors or] a bank holding 
        company described in subsection (a) is not credible or 
        would not facilitate an orderly resolution of the 
        company under title 11, United States Code--
                  (A) the Board of Governors and the 
                Corporation shall notify the company of the 
                deficiencies in the resolution plan; and
                  (B) the company shall resubmit the resolution 
                plan within a timeframe determined by the Board 
                of Governors and the Corporation, with 
                revisions demonstrating that the plan is 
                credible and would result in an orderly 
                resolution under title 11, United States Code, 
                including any proposed changes in business 
                operations and corporate structure to 
                facilitate implementation of the plan.
          (5) Failure to resubmit credible plan.--
                  (A) In general.--If [a nonbank financial 
                company supervised by the Board of Governors 
                or] a bank holding company described in 
                subsection (a) fails to timely resubmit the 
                resolution plan as required under paragraph 
                (4), with such revisions as are required under 
                subparagraph (B), the Board of Governors and 
                the Corporation may jointly impose more 
                stringent capital, leverage, or liquidity 
                requirements, or restrictions on the growth, 
                activities, or operations of the company, or 
                any subsidiary thereof, until such time as the 
                company resubmits a plan that remedies the 
                deficiencies.
                  (B) Divestiture.--The Board of Governors and 
                the Corporation, in consultation with the 
                Council, may jointly direct [a nonbank 
                financial company supervised by the Board of 
                Governors or] a bank holding company described 
                in subsection (a), by order, to divest certain 
                assets or operations identified by the Board of 
                Governors and the Corporation, to facilitate an 
                orderly resolution of such company under title 
                11, United States Code, in the event of the 
                failure of such company, in any case in which--
                          (i) the Board of Governors and the 
                        Corporation have jointly imposed more 
                        stringent requirements on the company 
                        pursuant to subparagraph (A); and
                          (ii) the company has failed, within 
                        the 2-year period beginning on the date 
                        of the imposition of such requirements 
                        under subparagraph (A), to resubmit the 
                        resolution plan with such revisions as 
                        were required under paragraph (4)(B).
          (6) No limiting effect.--A resolution plan submitted 
        in accordance with this subsection shall not be binding 
        on a bankruptcy court, a receiver appointed under title 
        II, or any other authority that is authorized or 
        required to resolve the [nonbank financial company 
        supervised by the Board, any bank holding company,] 
        bank holding company or any subsidiary or affiliate of 
        the foregoing.
          (7) No private right of action.--No private right of 
        action may be based on any resolution plan submitted in 
        accordance with this subsection.
          (8) Rules.--Not later than 18 months after the date 
        of enactment of this Act, the Board of Governors and 
        the Corporation shall jointly issue final rules 
        implementing this subsection.
  (e) Concentration Limits.--
          (1) Standards.--In order to limit the risks that the 
        failure of any individual company could pose to [a 
        nonbank financial company supervised by the Board of 
        Governors or] a bank holding company described in 
        subsection (a), the Board of Governors, by regulation, 
        shall prescribe standards that limit such risks.
          (2) Limitation on credit exposure.--The regulations 
        prescribed by the Board of Governors under paragraph 
        (1) shall prohibit each [nonbank financial company 
        supervised by the Board of Governors and] bank holding 
        company described in subsection (a) from having credit 
        exposure to any unaffiliated company that exceeds 25 
        percent of the capital stock and surplus (or such lower 
        amount as the Board of Governors may determine by 
        regulation to be necessary to mitigate risks to the 
        financial stability of the United States) of the 
        company.
          (3) Credit exposure.--For purposes of paragraph (2), 
        ``credit exposure'' to a company means--
                  (A) all extensions of credit to the company, 
                including loans, deposits, and lines of credit;
                  (B) all repurchase agreements and reverse 
                repurchase agreements with the company, and all 
                securities borrowing and lending transactions 
                with the company, to the extent that such 
                transactions create credit exposure for [the 
                nonbank financial company supervised by the 
                Board of Governors or] a bank holding company 
                described in subsection (a);
                  (C) all guarantees, acceptances, or letters 
                of credit (including endorsement or standby 
                letters of credit) issued on behalf of the 
                company;
                  (D) all purchases of or investment in 
                securities issued by the company;
                  (E) counterparty credit exposure to the 
                company in connection with a derivative 
                transaction between [the nonbank financial 
                company supervised by the Board of Governors 
                or] a bank holding company described in 
                subsection (a) and the company; and
                  (F) any other similar transactions that the 
                Board of Governors, by regulation, determines 
                to be a credit exposure for purposes of this 
                section.
          (4) Attribution rule.--For purposes of this 
        subsection, any transaction by [a nonbank financial 
        company supervised by the Board of Governors or] a bank 
        holding company described in subsection (a) with any 
        person is a transaction with a company, to the extent 
        that the proceeds of the transaction are used for the 
        benefit of, or transferred to, that company.
          (5) Rulemaking.--The Board of Governors may issue 
        such regulations and orders, including definitions 
        consistent with this section, as may be necessary to 
        administer and carry out this subsection.
          (6) Exemptions.--This subsection shall not apply to 
        any Federal home loan bank. The Board of Governors may, 
        by regulation or order, exempt transactions, in whole 
        or in part, from the definition of the term ``credit 
        exposure'' for purposes of this subsection, if the 
        Board of Governors finds that the exemption is in the 
        public interest and is consistent with the purpose of 
        this subsection.
          (7) Transition period.--
                  (A) In general.--This subsection and any 
                regulations and orders of the Board of 
                Governors under this subsection shall not be 
                effective until 3 years after the date of 
                enactment of this Act.
                  (B) Extension authorized.--The Board of 
                Governors may extend the period specified in 
                subparagraph (A) for not longer than an 
                additional 2 years.
  (f) Enhanced Public Disclosures.--The Board of Governors may 
prescribe, by regulation, periodic public disclosures by 
[nonbank financial companies supervised by the Board of 
Governors and] bank holding companies described in subsection 
(a) in order to support market evaluation of the risk profile, 
capital adequacy, and risk management capabilities thereof.
  (g) Short-term Debt Limits.--
          (1) In general.--In order to mitigate the risks that 
        an over-accumulation of short-term debt could pose to 
        financial companies and to the stability of the United 
        States financial system, the Board of Governors may, by 
        regulation, prescribe a limit on the amount of short-
        term debt, including off-balance sheet exposures, that 
        may be accumulated by any bank holding company 
        described in subsection (a) [and any nonbank financial 
        company supervised by the Board of Governors].
          (2) Basis of limit.--Any limit prescribed under 
        paragraph (1) shall be based on the short-term debt of 
        the company described in paragraph (1) as a percentage 
        of capital stock and surplus of the company or on such 
        other measure as the Board of Governors considers 
        appropriate.
          (3) Short-term debt defined.--For purposes of this 
        subsection, the term ``short-term debt'' means such 
        liabilities with short-dated maturity that the Board of 
        Governors identifies, by regulation, except that such 
        term does not include insured deposits.
          (4) Rulemaking authority.--In addition to prescribing 
        regulations under paragraphs (1) and (3), the Board of 
        Governors may prescribe such regulations, including 
        definitions consistent with this subsection, and issue 
        such orders, as may be necessary to carry out this 
        subsection.
          (5) Authority to issue exemptions and adjustments.--
        Notwithstanding the Bank Holding Company Act of 1956 
        (12 U.S.C. 1841 et seq.), the Board of Governors may, 
        if it determines such action is necessary to ensure 
        appropriate heightened prudential supervision, with 
        respect to a company described in paragraph (1) that 
        does not control an insured depository institution, 
        issue to such company an exemption from or adjustment 
        to the limit prescribed under paragraph (1).
  (h) Risk Committee.--
          [(1) Nonbank financial companies supervised by the 
        board of governors.--The Board of Governors shall 
        require each nonbank financial company supervised by 
        the Board of Governors that is a publicly traded 
        company to establish a risk committee, as set forth in 
        paragraph (3), not later than 1 year after the date of 
        receipt of a notice of final determination under 
        section 113(e)(3) with respect to such nonbank 
        financial company supervised by the Board of 
        Governors.]
          [(2)] (1) Certain bank holding companies.--
                  (A) Mandatory regulations.--The Board of 
                Governors shall issue regulations requiring 
                each bank holding company that is a publicly 
                traded company and that has total consolidated 
                assets of not less than $10,000,000,000 to 
                establish a risk committee, as set forth in 
                [paragraph (3)] paragraph (2).
                  (B) Permissive regulations.--The Board of 
                Governors may require each bank holding company 
                that is a publicly traded company and that has 
                total consolidated assets of less than 
                $10,000,000,000 to establish a risk committee, 
                as set forth in [paragraph (3)] paragraph (2), 
                as determined necessary or appropriate by the 
                Board of Governors to promote sound risk 
                management practices.
          [(3)] (2) Risk committee.--A risk committee required 
        by this subsection shall--
                  (A) be responsible for the oversight of the 
                enterprise-wide risk management practices of 
                [the nonbank financial company supervised by 
                the Board of Governors or bank holding company 
                described in subsection (a), as applicable] a 
                bank holding company described in subsection 
                (a);
                  (B) include such number of independent 
                directors as the Board of Governors may 
                determine appropriate, based on the nature of 
                operations, size of assets, and other 
                appropriate criteria related to [the nonbank 
                financial company supervised by the Board of 
                Governors or a bank holding company described 
                in subsection (a), as applicable] a bank 
                holding company described in subsection (a); 
                and
                  (C) include at least 1 risk management expert 
                having experience in identifying, assessing, 
                and managing risk exposures of large, complex 
                firms.
          [(4)] (3) Rulemaking.--The Board of Governors shall 
        issue final rules to carry out this subsection, not 
        later than 1 year after the transfer date, to take 
        effect not later than 15 months after the transfer 
        date.
  (i) Stress Tests.--
          (1) By the board of governors.--
                  (A) Annual tests required.--The Board of 
                Governors[, in coordination with the 
                appropriate primary financial regulatory 
                agencies and the Federal Insurance Office,] 
                shall conduct annual analyses in which [nonbank 
                financial companies supervised by the Board of 
                Governors and] bank holding companies described 
                in subsection (a) are subject to evaluation of 
                whether such companies have the capital, on a 
                total consolidated basis, necessary to absorb 
                losses as a result of adverse economic 
                conditions.
                  (B) Test parameters and consequences.--The 
                Board of Governors--
                          [(i) shall provide for at least 3 
                        different sets of conditions under 
                        which the evaluation required by this 
                        subsection shall be conducted, 
                        including baseline, adverse, and 
                        severely adverse;]
                          (i) shall--
                                  (I) issue regulations, after 
                                providing for public notice and 
                                comment, that provide for at 
                                least 3 different sets of 
                                conditions under which the 
                                evaluation required by this 
                                subsection shall be conducted, 
                                including baseline, adverse, 
                                and severely adverse, and 
                                methodologies, including models 
                                used to estimate losses on 
                                certain assets, and the Board 
                                of Governors shall not carry 
                                out any such evaluation until 
                                60 days after such regulations 
                                are issued; and
                                  (II) provide copies of such 
                                regulations to the Comptroller 
                                General of the United States 
                                and the Panel of Economic 
                                Advisors of the Congressional 
                                Budget Office before publishing 
                                such regulations;
                          (ii) may require the tests described 
                        in subparagraph (A) at bank holding 
                        companies [and nonbank financial 
                        companies], in addition to those for 
                        which annual tests are required under 
                        subparagraph (A);
                          (iii) may develop and apply such 
                        other analytic techniques as are 
                        necessary to identify, measure, and 
                        monitor risks to the financial 
                        stability of the United States;
                          (iv) shall require the companies 
                        described in subparagraph (A) to update 
                        their resolution plans required under 
                        subsection (d)(1), as the Board of 
                        Governors determines appropriate, based 
                        on the results of the analyses; [and]
                          (v) shall publish a summary of the 
                        results of the tests required under 
                        subparagraph (A) or clause (ii) of this 
                        subparagraph[.], including any results 
                        of a resubmitted test;
                          (vi) shall, in establishing the 
                        severely adverse condition under clause 
                        (i), provide detailed consideration of 
                        the model's effects on financial 
                        stability and the cost and availability 
                        of credit;
                          (vii) shall, in developing the models 
                        and methodologies and providing them 
                        for notice and comment under this 
                        subparagraph, publish a process to test 
                        the models and methodologies for their 
                        potential to magnify systemic and 
                        institutional risks instead of 
                        facilitating increased resiliency;
                          (viii) shall design and publish a 
                        process to test and document the 
                        sensitivity and uncertainty associated 
                        with the model system's data quality, 
                        specifications, and assumptions; and
                          (ix) shall communicate the range and 
                        sources of uncertainty surrounding the 
                        models and methodologies.
                  (C) CCAR requirements.--
                          (i) Parameters and consequences 
                        applicable to ccar.--The requirements 
                        of subparagraph (B) shall apply to 
                        CCAR.
                          (ii) Two-year limitation.--The Board 
                        of Governors may not subject a company 
                        to CCAR more than once every two years.
                          (iii) Mid-cycle resubmission.--If a 
                        company receives a quantitative 
                        objection to, or otherwise desires to 
                        amend the company's capital plan, the 
                        company may file a new streamlined plan 
                        at any time after a capital planning 
                        exercise has been completed and before 
                        a subsequent capital planning exercise.
                          (iv) Limitation on qualitative 
                        capital planning objections.--In 
                        carrying out CCAR, the Board of 
                        Governors may not object to a company's 
                        capital plan on the basis of 
                        qualitative deficiencies in the 
                        company's capital planning process.
                          (v) Company inquiries.--The Board of 
                        Governors shall establish and publish 
                        procedures for responding to inquiries 
                        from companies subject to CCAR, 
                        including establishing the time frame 
                        in which such responses will be made, 
                        and make such procedures publicly 
                        available.
                          (vi) CCAR defined.--For purposes of 
                        this subparagraph and subparagraph (E), 
                        the term ``CCAR'' means the 
                        Comprehensive Capital Analysis and 
                        Review established by the Board of 
                        Governors.
          (2) By the company.--
                  (A) Requirement.--A [nonbank financial 
                company supervised by the Board of Governors 
                and] [a bank holding company] bank holding 
                company described in subsection (a) shall 
                conduct [semiannual] annual stress tests. [All 
                other financial companies] All other bank 
                holding companies that have total consolidated 
                assets of more than $10,000,000,000 [and are 
                regulated by a primary Federal financial 
                regulatory agency] shall conduct annual stress 
                tests. The tests required under this 
                subparagraph shall be conducted in accordance 
                with the regulations prescribed under 
                subparagraph (C).
                  (B) Report.--A company required to conduct 
                stress tests under subparagraph (A) shall 
                submit a report to the Board of Governors [and 
                to its primary financial regulatory agency] at 
                such time, in such form, and containing such 
                information as the [primary financial 
                regulatory agency] Board of Governors shall 
                require.
                  (C) Regulations.--[Each Federal primary 
                financial regulatory agency, in coordination 
                with the Board of Governors and the Federal 
                Insurance Office,] The Board of Governors shall 
                issue [consistent and comparable] regulations 
                to implement this paragraph that shall--
                          (i) define the term ``stress test'' 
                        for purposes of this paragraph;
                          (ii) establish methodologies for the 
                        conduct of stress tests required by 
                        this paragraph that shall provide for 
                        at least 3 different sets of 
                        conditions, including baseline, 
                        adverse, and severely adverse;
                          (iii) establish the form and content 
                        of the report required by subparagraph 
                        (B); and
                          (iv) require companies subject to 
                        this paragraph to publish a summary of 
                        the results of the required stress 
                        tests.
          (3) Accountability and appropriateness in bank 
        holding company stress tests.--
                  (A) Quality and accountability assurance.--No 
                annual test or exercise conducted by the Board 
                of Governors under this subsection or any other 
                provision of law shall serve as a basis for 
                restricting a capital distribution by a bank 
                holding company unless the Board of Governor's 
                Vice Chair for Supervision certifies in writing 
                to the Congress that any model or combination 
                of models used therein are demonstrably more 
                accurate than any similar model or combination 
                of models utilized by the bank holding company 
                in a stress test conducted under paragraph (2).
                  (B) Process.--Any action taken by the Board 
                of Governors to restrict a capital distribution 
                by a bank holding company on the basis of a 
                stress test or exercise conducted by the Board 
                of Governors under this subsection or any other 
                provision of law shall be conducted pursuant to 
                a capital directive subject to, and issued in 
                accordance with, section 908(b)(2) of the 
                International Lending Supervision Act of 1983 
                (12 U.S.C. 3907(b)(2).
  (j) Leverage Limitation.--
          (1) Requirement.--The Board of Governors shall 
        require a bank holding company with total consolidated 
        assets equal to or greater than $50,000,000,000 [or a 
        nonbank financial company supervised by the Board of 
        Governors] to maintain a debt to equity ratio of no 
        more than 15 to 1, upon a determination by the Council 
        that such company poses a grave threat to the financial 
        stability of the United States and that the imposition 
        of such requirement is necessary to mitigate the risk 
        that such company poses to the financial stability of 
        the United States. Nothing in this paragraph shall 
        apply to a Federal home loan bank.
          (2) Considerations.--In making a determination under 
        this subsection, the Council shall consider [the 
        factors described in subsections (a) and (b) of section 
        113 and any other] any risk-related factors that the 
        Council deems appropriate.
          (3) Regulations.--The Board of Governors shall 
        promulgate regulations to establish procedures and 
        timelines for complying with the requirements of this 
        subsection.
  (k) Inclusion of Off-balance-sheet Activities in Computing 
Capital Requirements.--
          (1) In general.--In the case of any bank holding 
        company described in subsection (a) [or nonbank 
        financial company supervised by the Board of 
        Governors], the computation of capital for purposes of 
        meeting capital requirements shall take into account 
        any off-balance-sheet activities of the company.
          (2) Exemptions.--If the Board of Governors determines 
        that an exemption from the requirement under paragraph 
        (1) is appropriate, the Board of Governors may exempt a 
        company, or any transaction or transactions engaged in 
        by such company, from the requirements of paragraph 
        (1).
          (3) Off-balance-sheet activities defined.--For 
        purposes of this subsection, the term ``off-balance-
        sheet activities'' means an existing liability of a 
        company that is not currently a balance sheet 
        liability, but may become one upon the happening of 
        some future event, including the following 
        transactions, to the extent that they may create a 
        liability:
                  (A) Direct credit substitutes in which a bank 
                substitutes its own credit for a third party, 
                including standby letters of credit.
                  (B) Irrevocable letters of credit that 
                guarantee repayment of commercial paper or tax-
                exempt securities.
                  (C) Risk participations in bankers' 
                acceptances.
                  (D) Sale and repurchase agreements.
                  (E) Asset sales with recourse against the 
                seller.
                  (F) Interest rate swaps.
                  (G) Credit swaps.
                  (H) Commodities contracts.
                  (I) Forward contracts.
                  (J) Securities contracts.
                  (K) Such other activities or transactions as 
                the Board of Governors may, by rule, define.

[SEC. 166. EARLY REMEDIATION REQUIREMENTS.

  [(a) In General.--The Board of Governors, in consultation 
with the Council and the Corporation, shall prescribe 
regulations establishing requirements to provide for the early 
remediation of financial distress of a nonbank financial 
company supervised by the Board of Governors or a bank holding 
company described in section 165(a), except that nothing in 
this subsection authorizes the provision of financial 
assistance from the Federal Government.
  [(b) Purpose of the Early Remediation Requirements.--The 
purpose of the early remediation requirements under subsection 
(a) shall be to establish a series of specific remedial actions 
to be taken by a nonbank financial company supervised by the 
Board of Governors or a bank holding company described in 
section 165(a) that is experiencing increasing financial 
distress, in order to minimize the probability that the company 
will become insolvent and the potential harm of such insolvency 
to the financial stability of the United States.
  [(c) Remediation Requirements.--The regulations prescribed by 
the Board of Governors under subsection (a) shall--
          [(1) define measures of the financial condition of 
        the company, including regulatory capital, liquidity 
        measures, and other forward-looking indicators; and
          [(2) establish requirements that increase in 
        stringency as the financial condition of the company 
        declines, including--
                  [(A) requirements in the initial stages of 
                financial decline, including limits on capital 
                distributions, acquisitions, and asset growth; 
                and
                  [(B) requirements at later stages of 
                financial decline, including a capital 
                restoration plan and capital-raising 
                requirements, limits on transactions with 
                affiliates, management changes, and asset 
                sales.

[SEC. 167. AFFILIATIONS.

  [(a) Affiliations.--Nothing in this subtitle shall be 
construed to require a nonbank financial company supervised by 
the Board of Governors, or a company that controls a nonbank 
financial company supervised by the Board of Governors, to 
conform the activities thereof to the requirements of section 4 
of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).
  [(b) Requirement.--
          [(1) In general.--
                  [(A) Board authority.--If a nonbank financial 
                company supervised by the Board of Governors 
                conducts activities other than those that are 
                determined to be financial in nature or 
                incidental thereto under section 4(k) of the 
                Bank Holding Company Act of 1956, the Board of 
                Governors may require such company to establish 
                and conduct all or a portion of such activities 
                that are determined to be financial in nature 
                or incidental thereto in or through an 
                intermediate holding company established 
                pursuant to regulation of the Board of 
                Governors, not later than 90 days (or such 
                longer period as the Board of Governors may 
                deem appropriate) after the date on which the 
                nonbank financial company supervised by the 
                Board of Governors is notified of the 
                determination of the Board of Governors under 
                this section.
                  [(B) Necessary actions.--Notwithstanding 
                subparagraph (A), the Board of Governors shall 
                require a nonbank financial company supervised 
                by the Board of Governors to establish an 
                intermediate holding company if the Board of 
                Governors makes a determination that the 
                establishment of such intermediate holding 
                company is necessary to--
                          [(i) appropriately supervise 
                        activities that are determined to be 
                        financial in nature or incidental 
                        thereto; or
                          [(ii) to ensure that supervision by 
                        the Board of Governors does not extend 
                        to the commercial activities of such 
                        nonbank financial company.
          [(2) Internal financial activities.--For purposes of 
        this subsection, activities that are determined to be 
        financial in nature or incidental thereto under section 
        4(k) of the Bank Holding Company Act of 1956, as 
        described in paragraph (1), shall not include internal 
        financial activities, including internal treasury, 
        investment, and employee benefit functions. With 
        respect to any internal financial activity engaged in 
        for the company or an affiliate and a non-affiliate of 
        such company during the year prior to the date of 
        enactment of this Act, such company (or an affiliate 
        that is not an intermediate holding company or 
        subsidiary of an intermediate holding company) may 
        continue to engage in such activity, as long as not 
        less than 2/3 of the assets or 2/3 of the revenues 
        generated from the activity are from or attributable to 
        such company or an affiliate, subject to review by the 
        Board of Governors, to determine whether engaging in 
        such activity presents undue risk to such company or to 
        the financial stability of the United States.
          [(3) Source of strength.--A company that directly or 
        indirectly controls an intermediate holding company 
        established under this section shall serve as a source 
        of strength to its subsidiary intermediate holding 
        company.
          [(4) Parent company reports.--The Board of Governors 
        may, from time to time, require reports under oath from 
        a company that controls an intermediate holding 
        company, and from the appropriate officers or directors 
        of such company, solely for purposes of ensuring 
        compliance with the provisions of this section, 
        including assessing the ability of the company to serve 
        as a source of strength to its subsidiary intermediate 
        holding company pursuant to paragraph (3) and enforcing 
        such compliance.
          [(5) Limited parent company enforcement.--
                  [(A) In general.--In addition to any other 
                authority of the Board of Governors, the Board 
                of Governors may enforce compliance with the 
                provisions of this subsection that are 
                applicable to any company described in 
                paragraph (1) that controls an intermediate 
                holding company under section 8 of the Federal 
                Deposit Insurance Act, and such company shall 
                be subject to such section (solely for such 
                purposes) in the same manner and to the same 
                extent as if such company were a bank holding 
                company.
                  [(B) Application of other act.--Any violation 
                of this subsection by any company that controls 
                an intermediate holding company may also be 
                treated as a violation of the Federal Deposit 
                Insurance Act for purposes of subparagraph (A).
                  [(C) No effect on other authority.--No 
                provision of this paragraph shall be construed 
                as limiting any authority of the Board of 
                Governors or any other Federal agency under any 
                other provision of law.
  [(c) Regulations.--The Board of Governors--
          [(1) shall promulgate regulations to establish the 
        criteria for determining whether to require a nonbank 
        financial company supervised by the Board of Governors 
        to establish an intermediate holding company under 
        subsection (b); and
          [(2) may promulgate regulations to establish any 
        restrictions or limitations on transactions between an 
        intermediate holding company or a nonbank financial 
        company supervised by the Board of Governors and its 
        affiliates, as necessary to prevent unsafe and unsound 
        practices in connection with transactions between such 
        company, or any subsidiary thereof, and its parent 
        company or affiliates that are not subsidiaries of such 
        company, except that such regulations shall not 
        restrict or limit any transaction in connection with 
        the bona fide acquisition or lease by an unaffiliated 
        person of assets, goods, or services.

[SEC. 168. REGULATIONS.

  [The Board of Governors shall have authority to issue 
regulations to implement subtitles A and C and the amendments 
made thereunder. Except as otherwise specified in subtitle A or 
C, not later than 18 months after the effective date of this 
Act, the Board of Governors shall issue final regulations to 
implement subtitles A and C, and the amendments made 
thereunder.]

           *       *       *       *       *       *       *

[SEC. 170. SAFE HARBOR.

  [(a) Regulations.--The Board of Governors shall promulgate 
regulations on behalf of, and in consultation with, the Council 
setting forth the criteria for exempting certain types or 
classes of U.S. nonbank financial companies or foreign nonbank 
financial companies from supervision by the Board of Governors.
  [(b) Considerations.--In developing the criteria under 
subsection (a), the Board of Governors shall take into account 
the factors for consideration described in subsections (a) and 
(b) of section 113 in determining whether a U.S. nonbank 
financial company or foreign nonbank financial company shall be 
supervised by the Board of Governors.
  [(c) Rule of Construction.--Nothing in this section shall be 
construed to require supervision by the Board of Governors of a 
U.S. nonbank financial company or foreign nonbank financial 
company, if such company does not meet the criteria for 
exemption established under subsection (a).
  [(d) Revisions.--
          [(1) In general.--The Board of Governors shall, in 
        consultation with the Council, review the regulations 
        promulgated under subsection (a), not less frequently 
        than every 5 years, and based upon the review, the 
        Board of Governors may revise such regulations on 
        behalf of, and in consultation with, the Council to 
        update as necessary the criteria set forth in such 
        regulations.
          [(2) Transition period.--No revisions under paragraph 
        (1) shall take effect before the end of the 2-year 
        period after the date of publication of such revisions 
        in final form.
  [(e) Report.--The Chairman of the Board of Governors and the 
Chairperson of the Council shall submit a joint report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of 
Representatives not later than 30 days after the date of the 
issuance in final form of regulations under subsection (a), or 
any subsequent revision to such regulations under subsection 
(d), as applicable. Such report shall include, at a minimum, 
the rationale for exemption and empirical evidence to support 
the criteria for exemption.]

           *       *       *       *       *       *       *

[SEC. 172. EXAMINATION AND ENFORCEMENT ACTIONS FOR INSURANCE AND 
                    ORDERLY LIQUIDATION PURPOSES.

  [(a) Examinations for Insurance and Resolution Purposes.--
Section 10(b)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(b)(3)) is amended--
          [(1) by striking ``In addition'' and inserting the 
        following:
                  [``(A) In general.--In addition''; and
          [(2) by striking ``whenever the board of directors 
        determines'' and all that follows through the period 
        and inserting the following:or nonbank financial 
        company supervised by the Board of Governors or a bank 
        holding company described in section 165(a) of the 
        Financial Stability Act of 2010, whenever the Board of 
        Directors determines that a special examination of any 
        such depository institution is necessary to determine 
        the condition of such depository institution for 
        insurance purposes, or of such nonbank financial 
        company supervised by the Board of Governors or bank 
        holding company described in section 165(a) of the 
        Financial Stability Act of 2010, for the purpose of 
        implementing its authority to provide for orderly 
        liquidation of any such company under title II of that 
        Act, provided that such authority may not be used with 
        respect to any such company that is in a generally 
        sound condition.
                  [``(B) Limitation.--Before conducting a 
                special examination of a nonbank financial 
                company supervised by the Board of Governors or 
                a bank holding company described in section 
                165(a) of the Financial Stability Act of 2010, 
                the Corporation shall review any available and 
                acceptable resolution plan that the company has 
                submitted in accordance with section 165(d) of 
                that Act, consistent with the nonbinding effect 
                of such plan, and available reports of 
                examination, and shall coordinate to the 
                maximum extent practicable with the Board of 
                Governors, in order to minimize duplicative or 
                conflicting examinations.''.
  [(b) Enforcement Authority.--Section 8(t) of the Federal 
Deposit Insurance Act (12 U.S.C. 1818(t)) is amended--
          [(1) in paragraph (1), by inserting ``, any 
        depository institution holding company,'' before ``or 
        any institution-affiliated party'';
          [(2) in paragraph (2)--
                  [(A) by striking ``or'' at the end of 
                subparagraph (B);
                  [(B) at the end of subparagraph (C), by 
                striking the period and inserting ``or''; and
                  [(C) by inserting at the end the following 
                new subparagraph:
                  [``(D) the conduct or threatened conduct 
                (including any acts or omissions) of the 
                depository institution holding company poses a 
                risk to the Deposit Insurance Fund, provided 
                that such authority may not be used with 
                respect to a depository institution holding 
                company that is in generally sound condition 
                and whose conduct does not pose a foreseeable 
                and material risk of loss to the Deposit 
                Insurance Fund;''; and
          [(3) by adding at the end the following:
          [``(6) Powers and duties with respect to depository 
        institution holding companies.--For purposes of 
        exercising the backup authority provided in this 
        subsection--
                  [``(A) the Corporation shall have the same 
                powers with respect to a depository institution 
                holding company and its affiliates as the 
                appropriate Federal banking agency has with 
                respect to the holding company and its 
                affiliates; and
                  [``(B) the holding company and its affiliates 
                shall have the same duties and obligations with 
                respect to the Corporation as the holding 
                company and its affiliates have with respect to 
                the appropriate Federal banking agency.''.
  [(c) Rule of Construction.--Nothing in this Act shall be 
construed to limit or curtail the Corporation's current 
authority to examine or bring enforcement actions with respect 
to any insured depository institution or institution-affiliated 
party.]

           *       *       *       *       *       *       *

[SEC. 174. STUDIES AND REPORTS ON HOLDING COMPANY CAPITAL REQUIREMENTS.

  [(a) Study of Hybrid Capital Instruments.--The Comptroller 
General of the United States, in consultation with the Board of 
Governors, the Comptroller of the Currency, and the 
Corporation, shall conduct a study of the use of hybrid capital 
instruments as a component of Tier 1 capital for banking 
institutions and bank holding companies. The study shall 
consider--
          [(1) the current use of hybrid capital instruments, 
        such as trust preferred shares, as a component of Tier 
        1 capital;
          [(2) the differences between the components of 
        capital permitted for insured depository institutions 
        and those permitted for companies that control insured 
        depository institutions;
          [(3) the benefits and risks of allowing such 
        instruments to be used to comply with Tier 1 capital 
        requirements;
          [(4) the economic impact of prohibiting the use of 
        such capital instruments for Tier 1;
          [(5) a review of the consequences of disqualifying 
        trust preferred instruments, and whether it could lead 
        to the failure or undercapitalization of existing 
        banking organizations;
          [(6) the international competitive implications 
        prohibiting hybrid capital instruments for Tier 1;
          [(7) the impact on the cost and availability of 
        credit in the United States from such a prohibition;
          [(8) the availability of capital for financial 
        institutions with less than $10,000,000,000 in total 
        assets; and
          [(9) any other relevant factors relating to the 
        safety and soundness of our financial system and 
        potential economic impact of such a prohibition.
  [(b) Study of Foreign Bank Intermediate Holding Company 
Capital Requirements.--The Comptroller General of the United 
States, in consultation with the Secretary, the Board of 
Governors, the Comptroller of the Currency, and the 
Corporation, shall conduct a study of capital requirements 
applicable to United States intermediate holding companies of 
foreign banks that are bank holding companies or savings and 
loan holding companies. The study shall consider--
          [(1) current Board of Governors policy regarding the 
        treatment of intermediate holding companies;
          [(2) the principle of national treatment and equality 
        of competitive opportunity for foreign banks operating 
        in the United States;
          [(3) the extent to which foreign banks are subject on 
        a consolidated basis to home country capital standards 
        comparable to United States capital standards;
          [(4) potential effects on United States banking 
        organizations operating abroad of changes to United 
        States policy regarding intermediate holding companies;
          [(5) the impact on the cost and availability of 
        credit in the United States from a change in United 
        States policy regarding intermediate holding companies; 
        and
          [(6) any other relevant factors relating to the 
        safety and soundness of our financial system and 
        potential economic impact of such a prohibition.
  [(c) Report.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United 
States shall submit reports to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives summarizing 
the results of the studies required under subsection (a). The 
reports shall include specific recommendations for legislative 
or regulatory action regarding the treatment of hybrid capital 
instruments, including trust preferred shares, and shall 
explain the basis for such recommendations.

[SEC. 175. INTERNATIONAL POLICY COORDINATION.

  [(a) By the President.--The President, or a designee of the 
President, may coordinate through all available international 
policy channels, similar policies as those found in United 
States law relating to limiting the scope, nature, size, scale, 
concentration, and interconnectedness of financial companies, 
in order to protect financial stability and the global economy.
  [(b) By the Council.--The Chairperson of the Council, in 
consultation with the other members of the Council, shall 
regularly consult with the financial regulatory entities and 
other appropriate organizations of foreign governments or 
international organizations on matters relating to systemic 
risk to the international financial system.
  [(c) By the Board of Governors and the Secretary.--The Board 
of Governors and the Secretary shall consult with their foreign 
counterparts and through appropriate multilateral organizations 
to encourage comprehensive and robust prudential supervision 
and regulation for all highly leveraged and interconnected 
financial companies.]

           *       *       *       *       *       *       *

                              ----------                              

BANK HOLDING COMPANY ACT OF 1956

           *       *       *       *       *       *       *

                  acquisition of bank shares or assets

  Sec. 3. (a) It shall be unlawful, except with the prior 
approval of the Board, (1) for any action to be taken that 
causes any company to become a bank holding company; (2) for 
any action to be taken that causes a bank to become a 
subsidiary of a bank holding company; (3) for any bank holding 
company to acquire direct or indirect ownership or control of 
any voting shares of any bank if, after such acquisition, such 
company will directly or indirectly own or control more than 5 
per centum of the voting shares of such bank; (4) for any bank 
holding company or subsidiary thereof, other than a bank, to 
acquire all or substantially all of the assets of a bank; or 
(5) for any bank holding company to merge or consolidate with 
any other bank holding company. Notwithstanding the foregoing 
this prohibition shall not apply to (A) shares acquired by a 
bank, (i) in good faith in a fiduciary capacity, except where 
such shares are held under a trust that constitutes a company 
as defined in section 2(b) and except as provided in paragraphs 
(2) and (3) of section 2(g), or (ii) in the regular course of 
securing or collecting a debt previously contracted in good 
faith, but any shares acquired after the date of enactment of 
this Act in securing or collecting any such previously 
contracted debt shall be disposed of within a period of two 
years from the date on which they were acquired; (B) additional 
shares acquired by a bank holding company in a bank in which 
such bank holding company owned or controlled a majority of the 
voting shares prior to such acquisition; or (C) the 
acquisition, by a company, of control of a bank in a 
reorganization in which a person or group of persons exchanges 
their shares of the bank for shares of a newly formed bank 
holding company and receives after the reorganization 
substantially the same proportional share interest in the 
holding company as they held in the bank except for changes in 
shareholders' interests resulting from the exercise of 
dissenting shareholders' rights under State or Federal law if--
          
                  
                          (i) immediately following the 
                        acquisition--
                                  (I) the bank holding company 
                                meets the capital and other 
                                financial standards prescribed 
                                by the Board by regulation for 
                                such a bank holding company; 
                                and
                                  (II) the bank is adequately 
                                capitalized (as defined in 
                                section 38 of the Federal 
                                Deposit Insurance Act);
                          (ii) the holding company does not 
                        engage in any activities other than 
                        those of managing and controlling banks 
                        as a result of the reorganization;
                          (iii) the company provides 30 days 
                        prior notice to the Board and the Board 
                        does not object to such transaction 
                        during such 30-day period; and
                          (iv) the holding company will not 
                        acquire control of any additional bank 
                        as a result of the reorganization..
The Board is authorized upon application by a bank to extend, 
from time to time for not more than one year at a time, the 
two-year period referred to above for disposing of any shares 
acquired by a bank in the regular course of securing or 
collecting a debt previously contracted in good faith, if, in 
the Board's judgment, such an extension would not be 
detrimental to the public interest, but no such extension shall 
in the aggregate exceed three years. For the purpose of the 
preceding sentence, bank shares acquired after the date of 
enactment of the Bank Holding Company Act Amendments of 1970 
shall not be deemed to have been acquired in good faith in a 
fiduciary capacity if the acquiring bank or company has sole 
discretionary authority to exercise voting rights with respect 
thereto, but in such instances acquisitions may be made without 
prior approval of the Board if the Board, upon application 
filed within ninety days after the shares are acquired, 
approves retention or, if retention is disapproved, the 
acquiring bank disposes of the shares or its sole discretionary 
voting rights within two years after issuance of the order of 
disapproval.
  (b)(1) Notice and Hearing Requirements.--[Upon receiving]
                  (A) In general._Upon receiving from a company 
                any application for approval under this 
                section, the Board shall give notice to the 
                Comptroller of the Currency, if the applicant 
                company or any bank the voting shares or assets 
                of which are sought to be required is a 
                national banking association, or to the 
                appropriate supervisory authority of the 
                interested State, if the applicant company or 
                any bank the voting shares or assets of which 
                are sought to be acquired is a State bank, in 
                order to provide for the submission of the 
                views and recommendations of the Comptroller of 
                the Currency or the State supervisory 
                authority, as the case may be. The views and 
                recommendations shall be submitted within 
                thirty calendar days of the date on which 
                notice is given, or within ten calendar days of 
                such date if the Board advises the Comptroller 
                of the Currency or the State supervisory 
                authority that an emergency exists requiring 
                expeditious action. If the thirty-day notice 
                period applies and if the Comptroller of the 
                Currency or the State supervisory authority so 
                notified by the Board disapproves the 
                application in writing within this period, the 
                Board shall forthwith give written notice of 
                that fact to the applicant. Within three days 
                after giving such notice to the applicant, the 
                Board shall notify in writing the applicant and 
                the disapproving authority of the date for 
                commencement of a hearing by it on such 
                application. Any such hearing shall be 
                commenced not less than ten nor more than 
                thirty days after the Board has given written 
                notice to the applicant of the action of the 
                disapproving authority. The length of any such 
                hearing shall be determined by the Board, but 
                it shall afford all interested parties a 
                reasonable opportunity to testify at such 
                hearing. At the conclusion thereof, the Board 
                shall, by order, grant or deny the application 
                on the basis of the record made at such 
                hearing. In the event of the failure of the 
                Board to act on any application for approval 
                under this section within the ninety-one-day 
                period which begins on the date of submission 
                to the Board of the complete record on that 
                application, the application shall be deemed to 
                have been granted. [Notwithstanding any other 
                provision]
                  (B) Immediate action._
                          (i) In general._Notwithstanding any 
                        other provision of this subsection, if 
                        the Board finds that it must act 
                        immediately on any application for 
                        approval under this section in order to 
                        prevent the probable failure of a bank 
                        or bank holding company involved in a 
                        proposed acquisition, merger, or 
                        consolidation transaction, the Board 
                        may dispense with the notice 
                        requirements of this subsection, and if 
                        notice is given, the Board may request 
                        that the views and recommendations of 
                        the Comptroller of the Currency or the 
                        State supervisory authority, as the 
                        case may be, be submitted immediately 
                        in any form or by any means acceptable 
                        to the Board. If the Board has found 
                        pursuant to this subsection either that 
                        an emergency exists requiring 
                        expeditious action or that it must act 
                        immediately to prevent probable 
                        failure, the Board may grant or deny 
                        any such application without a hearing 
                        not withstanding any recommended 
                        disapproval by the appropriate 
                        supervisory authority.
                          (ii) Exception.--The Board may not 
                        take any action pursuant to clause (i) 
                        on an application that would cause any 
                        company to become a bank holding 
                        company unless such application 
                        involves the company acquiring a bank 
                        that is critically undercapitalized (as 
                        such term is defined under section 
                        38(b) of the Federal Deposit Insurance 
                        Act).
  (2) Waiver in Case of Bank in Danger of Closing.--If the 
Board receives a certification described in section 13(f)(8)(D) 
of the Federal Deposit Insurance Act from the appropriate 
Federal or State chartering authority that a bank is in danger 
of closing, the Board may dispense with the notice and hearing 
requirements of paragraph (1) with respect to any application 
received by the Board relating to the acquisition of such bank, 
the bank holding company which controls such bank, or any other 
affiliated bank.
  (c) Factors for Consideration by Board.--
          (1) Competitive factors.--The Board shall not 
        approve--
          (A) any acquisition or merger or consolidation under 
        this section which would result in a monopoly, or which 
        would be in furtherance of any combination or 
        conspiracy to monopolize or to attempt to monopolize 
        the business of banking in any part of the United 
        States, or
          (B) any other proposed acquisition or merger or 
        consolidation under this section whose effect in any 
        section of the country may be substantially to lessen 
        competition, or to tend to create a monopoly, or which 
        in any other manner would be in restraint or trade, 
        unless it finds that the anticompetitive effects of the 
        proposed transaction are clearly outweighed in the 
        public interest by the probable effect of the 
        transaction in meeting the convenience and needs of the 
        community to be served.
          (2) Banking and community factors.--In every case, 
        the Board shall take into consideration the financial 
        and managerial resources and future prospects of the 
        company or companies and the banks concerned, and the 
        convenience and needs of the community to be served.
          (3) Supervisory factors.--The Board shall disapprove 
        any application under this section by any company if--
                  (A) the company fails to provide the Board 
                with adequate assurances that the company will 
                make available to the Board such information on 
                the operations or activities of the company, 
                and any affiliate of the company, as the Board 
                determines to be appropriate to determine and 
                enforce compliance with this Act; or
                  (B) in the case of an application involving a 
                foreign bank, the foreign bank is not subject 
                to comprehensive supervision or regulation on a 
                consolidated basis by the appropriate 
                authorities in the bank's home country.
          (4) Treatment of certain bank stock loans.--
        Notwithstanding any other provision of law, the Board 
        shall not follow any practice or policy in the 
        consideration of any application for the formation of a 
        one-bank holding company if following such practice or 
        policy would result in the rejection of such 
        application solely because the transaction to form such 
        one-bank holding company involves a bank stock loan 
        which is for a period of not more than twenty-five 
        years. The previous sentence shall not be construed to 
        prohibit the Board from rejecting any application 
        solely because the other financial arrangements are 
        considered unsatisfactory. The Board shall consider 
        transactions involving bank stock loans for the 
        formation of a one-bank holding company having a 
        maturity of twelve years or more on a case by case 
        basis and no such transaction shall be approved if the 
        Board believes the safety or soundness of the bank may 
        be jeopardized.
          (5) Managerial resources.--Consideration of the 
        managerial resources of a company or bank under 
        paragraph (2) shall include consideration of the 
        competence, experience, and integrity of the officers, 
        directors, and principal shareholders of the company or 
        bank.
          (6) Money laundering.--In every case, the Board shall 
        take into consideration the effectiveness of the 
        company or companies in combatting money laundering 
        activities, including in overseas branches.
          (7) Financial stability.--In every case, the Board 
        shall take into consideration the extent to which a 
        proposed acquisition, merger, or consolidation would 
        result in greater or more concentrated risks to the 
        stability of the United States banking or financial 
        system.
  (d) Interstate Banking.--
          (1) Approvals authorized.--
                  (A) Acquisition of banks.--The Board may 
                approve an application under this section by a 
                bank holding company that is well capitalized 
                and well managed to acquire control of, or 
                acquire all or substantially all of the assets 
                of, a bank located in a State other than the 
                home State of such bank holding company, 
                without regard to whether such transaction is 
                prohibited under the law of any State.
                  (B) Preservation of state age laws.--
                          (i) In general.--Notwithstanding 
                        subparagraph (A), the Board may not 
                        approve an application pursuant to such 
                        subparagraph that would have the effect 
                        of permitting an out-of-State bank 
                        holding company to acquire a bank in a 
                        host State that has not been in 
                        existence for the minimum period of 
                        time, if any, specified in the 
                        statutory law of the host State.
                          (ii) Special rule for state age laws 
                        specifying a period of more than 5 
                        years.--Notwithstanding clause (i), the 
                        Board may approve, pursuant to 
                        subparagraph (A), the acquisition of a 
                        bank that has been in existence for at 
                        least 5 years without regard to any 
                        longer minimum period of time specified 
                        in a statutory law of the host State.
                  (C) Shell banks.--For purposes of this 
                subsection, a bank that has been chartered 
                solely for the purpose of, and does not open 
                for business prior to, acquiring control of, or 
                acquiring all or substantially all of the 
                assets of, an existing bank shall be deemed to 
                have been in existence for the same period of 
                time as the bank to be acquired.
                  (D) Effect on state contingency laws.--No 
                provision of this subsection shall be construed 
                as affecting the applicability of a State law 
                that makes an acquisition of a bank contingent 
                upon a requirement to hold a portion of such 
                bank's assets available for call by a State-
                sponsored housing entity established pursuant 
                to State law, if--
                          (i) the State law does not have the 
                        effect of discriminating against out-
                        of-State banks, out-of-State bank 
                        holding companies, or subsidiaries of 
                        such banks or bank holding companies;
                          (ii) that State law was in effect as 
                        of the date of enactment of the Riegle-
                        Neal Interstate Banking and Branching 
                        Efficiency Act of 1994;
                          (iii) the Federal Deposit Insurance 
                        Corporation has not determined that 
                        compliance with such State law would 
                        result in an unacceptable risk to the 
                        Deposit Insurance Fund; and
                          (iv) the appropriate Federal banking 
                        agency for such bank has not found that 
                        compliance with such State law would 
                        place the bank in an unsafe or unsound 
                        condition.
          (2) Concentration limits.--
                  (A) Nationwide concentration limits.--The 
                Board may not approve an application pursuant 
                to paragraph (1)(A) if the applicant (including 
                all insured depository institutions which are 
                affiliates of the applicant) controls, or upon 
                consummation of the acquisition for which such 
                application is filed would control, more than 
                10 percent of the total amount of deposits of 
                insured depository institutions in the United 
                States.
                  (B) Statewide concentration limits other than 
                with respect to initial entries.--The Board may 
                not approve an application pursuant to 
                paragraph (1)(A) if--
                          (i) immediately before the 
                        consummation of the acquisition for 
                        which such application is filed, the 
                        applicant (including any insured 
                        depository institution affiliate of the 
                        applicant) controls any insured 
                        depository institution or any branch of 
                        an insured depository institution in 
                        the home State of any bank to be 
                        acquired or in any host State in which 
                        any such bank maintains a branch; and
                          (ii) the applicant (including all 
                        insured depository institutions which 
                        are affiliates of the applicant), upon 
                        consummation of the acquisition, would 
                        control 30 percent or more of the total 
                        amount of deposits of insured 
                        depository institutions in any such 
                        State.
                  (C) Effectiveness of state deposit caps.--No 
                provision of this subsection shall be construed 
                as affecting the authority of any State to 
                limit, by statute, regulation, or order, the 
                percentage of the total amount of deposits of 
                insured depository institutions in the State 
                which may be held or controlled by any bank or 
                bank holding company (including all insured 
                depository institutions which are affiliates of 
                the bank or bank holding company) to the extent 
                the application of such limitation does not 
                discriminate against out-of-State banks, out-
                of-State bank holding companies, or 
                subsidiaries of such banks or holding
                companies.
                  (D) Exceptions to subparagraph (b).--The 
                Board may approve an application pursuant to 
                paragraph (1)(A) without regard to the 
                applicability of subparagraph (B) with respect 
                to any State if--
                          (i) there is a limitation described 
                        in subparagraph (C) in a State statute, 
                        regulation, or order which has the 
                        effect of permitting a bank or bank 
                        holding company (including all insured 
                        depository institutions which are 
                        affiliates of the bank or bank holding 
                        company) to control a greater 
                        percentage of total deposits of all 
                        insured depository institutions in the 
                        State than the percentage permitted 
                        under subparagraph (B); or
                          (ii) the acquisition is approved by 
                        the appropriate State bank supervisor 
                        of such State and the standard on which 
                        such approval is based does not have 
                        the effect of discriminating against 
                        out-of-State banks, out-of-State bank 
                        holding companies, or subsidiaries of 
                        such banks or holding companies.
                  (E) Deposit defined.--For purposes of this 
                paragraph, the term ``deposit'' has the same 
                meaning as in section 3(l) of the Federal 
                Deposit Insurance Act.
          (3) Community reinvestment compliance.--In 
        determining whether to approve an application under 
        paragraph (1)(A), the Board shall--
                  (A) comply with the responsibilities of the 
                Board regarding such application under section 
                804 of the Community Reinvestment Act of 1977; 
                and
                  (B) take into account the applicant's record 
                of compliance with applicable State community 
                reinvestment laws.
          (4) Applicability of antitrust laws.--No provision of 
        this subsection shall be construed as affecting--
                  (A) the applicability of the antitrust laws; 
                or
                  (B) the applicability, if any, of any State 
                law which is similar to the antitrust laws.
          (5) Exception for banks in default or in danger of 
        default.--The Board may approve an application pursuant 
        to paragraph (1)(A) which involves--
                  (A) an acquisition of 1 or more banks in 
                default or in danger of default; or
                  (B) an acquisition with respect to which 
                assistance is provided under section 13(c) of 
                the Federal Deposit Insurance Act;
        without regard to subparagraph (B) or (D) of paragraph 
        (1) or paragraph (2) or (3).
  (e) Every bank that is a holding company and every bank that 
is a subsidiary of such a company shall become and remain an 
insured depository institution as such term is defined in 
section 3 of the Federal Deposit Insurance Act.
  (g) Mutual Bank Holding Company.--
          (1) Establishment.--Notwithstanding any provision of 
        Federal law other than this Act, a savings bank or 
        cooperative bank operating in mutual form may 
        reorganize so as to form a holding company.
          (2) Regulations.--A bank holding company organized as 
        a mutual holding company shall be regulated on terms, 
        and shall be subject to limitations, comparable to 
        those applicable to any other bank holding company.

           *       *       *       *       *       *       *

SEC. 14. CONCENTRATION LIMITS ON LARGE FINANCIAL FIRMS.

  (a) Definitions.--In this section--
          (1) the term ``Council'' means the Financial 
        Stability Oversight Council;
          [(2) the term ``financial company'' means--
                  [(A) an insured depository institution;
                  [(B) a bank holding company;
                  [(C) a savings and loan holding company;
                  [(D) a company that controls an insured 
                depository institution;
                  [(E) a nonbank financial company supervised 
                by the Board under title I of the Dodd-Frank 
                Wall Street Reform and Consumer Protection Act; 
                and
                  [(F) a foreign bank or company that is 
                treated as a bank holding company for purposes 
                of this Act; and]
          (2) the term ``banking organization'' means--
                  (A) an insured depository institution;
                  (B) a bank holding company;
                  (C) a savings and loan holding company;
                  (D) a company that controls an insured 
                depository institution; and
                  (E) a foreign bank or company that is treated 
                as a bank holding company for purposes of this 
                Act; and
          (3) the term ``liabilities'' means--
                  (A) with respect to a United States 
                [financial company] banking organization--
                          (i) the total risk-weighted assets of 
                        the [financial company] banking 
                        organization, as determined under the 
                        risk-based capital rules applicable to 
                        bank holding companies, as adjusted to 
                        reflect exposures that are deducted 
                        from regulatory capital; less
                          (ii) the total regulatory capital of 
                        the [financial company] banking 
                        organization under the risk-based 
                        capital rules applicable to bank 
                        holding companies; and
                  (B) with respect to a foreign-based 
                [financial company] banking organization--
                          (i) the total risk-weighted assets of 
                        the United States operations of the 
                        [financial company] banking 
                        organization, as determined under the 
                        applicable risk-based capital rules, as 
                        adjusted to reflect exposures that are 
                        deducted from regulatory capital; less
                          (ii) the total regulatory capital of 
                        the United States operations of the 
                        [financial company] banking 
                        organization, as determined under the 
                        applicable risk-based capital rules[; 
                        and].
                  [(C) with respect to an insurance company or 
                other nonbank financial company supervised by 
                the Board, such assets of the company as the 
                Board shall specify by rule, in order to 
                provide for consistent and equitable treatment 
                of such companies.]
  (b) Concentration Limit.--Subject to the recommendations by 
the Council under subsection (e), a [financial company] banking 
organization may not merge or consolidate with, acquire all or 
substantially all of the assets of, or otherwise acquire 
control of, another company, if the total consolidated 
liabilities of the acquiring [financial company] banking 
organization upon consummation of the transaction would exceed 
10 percent of the aggregate consolidated liabilities of all 
[financial companies] banking organizations at the end of the 
calendar year preceding the transaction.
  (c) Exception to Concentration Limit.--With the prior written 
consent of the Board, the concentration limit under subsection 
(b) shall not apply to an acquisition--
          (1) of a bank in default or in danger of default;
          (2) with respect to which assistance is provided by 
        the Federal Deposit Insurance Corporation under section 
        13(c) of the Federal Deposit Insurance Act (12 U.S.C. 
        1823(c)); or
          (3) that would result only in a de minimis increase 
        in the liabilities of the [financial company] banking 
        organization.
  (d) Rulemaking and Guidance.--The Board shall issue 
regulations implementing this section in accordance with the 
recommendations of the Council under subsection (e), including 
the definition of terms, as necessary. The Board may issue 
interpretations or guidance regarding the application of this 
section to an individual [financial company] banking 
organization or to financial companies in general.
  (e) Council Study and Rulemaking.--
          (1) Study and recommendations.--Not later than 6 
        months after the date of enactment of this section, the 
        Council shall--
                  (A) complete a study of the extent to which 
                the concentration limit under this section 
                would affect financial stability, moral hazard 
                in the financial system, the efficiency and 
                competitiveness of United States financial 
                firms and financial markets, and the cost and 
                availability of credit and other financial 
                services to households and businesses in the 
                United States; and
                  (B) make recommendations regarding any 
                modifications to the concentration limit that 
                the Council determines would more effectively 
                implement this section.
          (2) Rulemaking.--Not later than 9 months after the 
        date of completion of the study under paragraph (1), 
        and notwithstanding subsections (b) and (d), the Board 
        shall issue final regulations implementing this 
        section, which shall reflect any recommendations by the 
        Council under paragraph (1)(B).
                              ----------                              

TITLE 44, UNITED STATES CODE

           *       *       *       *       *       *       *

CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

           *       *       *       *       *       *       *

SUBCHAPTER I--FEDERAL INFORMATION POLICY

           *       *       *       *       *       *       *

Sec. 3502. Definitions

  As used in this subchapter--
          (1) the term ``agency'' means any executive 
        department, military department, Government 
        corporation, Government controlled corporation, or 
        other establishment in the executive branch of the 
        Government (including the Executive Office of the 
        President), or any independent regulatory agency, but 
        does not include--
                  (A) the Government Accountability Office;
                  (B) Federal Election Commission;
                  (C) the governments of the District of 
                Columbia and of the territories and possessions 
                of the United States, and their various 
                subdivisions; or
                  (D) Government-owned contractor-operated 
                facilities, including laboratories engaged in 
                national defense research and production 
                activities;
          (2) the term ``burden'' means time, effort, or 
        financial resources expended by persons to generate, 
        maintain, or provide information to or for a Federal 
        agency, including the resources expended for--
                  (A) reviewing instructions;
                  (B) acquiring, installing, and utilizing 
                technology and systems;
                  (C) adjusting the existing ways to comply 
                with any previously applicable instructions and 
                requirements;
                  (D) searching data sources;
                  (E) completing and reviewing the collection 
                of information; and
                  (F) transmitting, or otherwise disclosing the 
                information;
          (3) the term ``collection of information''--
                  (A) means the obtaining, causing to be 
                obtained, soliciting, or requiring the 
                disclosure to third parties or the public, of 
                facts or opinions by or for an agency, 
                regardless of form or format, calling for 
                either--
                          (i) answers to identical questions 
                        posed to, or identical reporting or 
                        recordkeeping requirements imposed on, 
                        ten or more persons, other than 
                        agencies, instrumentalities, or 
                        employees of the United States; or
                          (ii) answers to questions posed to 
                        agencies, instrumentalities, or 
                        employees of the United States which 
                        are to be used for general statistical 
                        purposes; and
                  (B) shall not include a collection of 
                information described under section 3518(c)(1);
          (4) the term ``Director'' means the Director of the 
        Office of Management and Budget;
          (5) the term ``independent regulatory agency'' means 
        the Board of Governors of the Federal Reserve System, 
        the Commodity Futures Trading Commission, the Consumer 
        Product Safety Commission, the Federal Communications 
        Commission, the Federal Deposit Insurance Corporation, 
        the Federal Energy Regulatory Commission, the Federal 
        Housing Finance Agency, the Federal Maritime 
        Commission, the Federal Trade Commission, the 
        Interstate Commerce Commission, the Mine Enforcement 
        Safety and Health Review Commission, the National Labor 
        Relations Board, the Nuclear Regulatory Commission, the 
        Occupational Safety and Health Review Commission, the 
        Postal Regulatory Commission, the Securities and 
        Exchange Commission, the Bureau of Consumer Financial 
        Protection, [the Office of Financial Research,] Office 
        of the Comptroller of the Currency, and any other 
        similar agency designated by statute as a Federal 
        independent regulatory agency or commission;
          (6) the term ``information resources'' means 
        information and related resources, such as personnel, 
        equipment, funds, and information technology;
          (7) the term ``information resources management'' 
        means the process of managing information resources to 
        accomplish agency missions and to improve agency 
        performance, including through the reduction of 
        information collection burdens on the public;
          (8) the term ``information system'' means a discrete 
        set of information resources organized for the 
        collection, processing, maintenance, use, sharing, 
        dissemination, or disposition of information;
          (9) the term ``information technology'' has the 
        meaning given that term in section 11101 of title 40 
        but does not include national security systems as 
        defined in section 11103 of title 40;
          (10) the term ``person'' means an individual, 
        partnership, association, corporation, business trust, 
        or legal representative, an organized group of 
        individuals, a State, territorial, tribal, or local 
        government or branch thereof, or a political 
        subdivision of a State, territory, tribal, or local 
        government or a branch of a political subdivision;
          (11) the term ``practical utility'' means the ability 
        of an agency to use information, particularly the 
        capability to process such information in a timely and 
        useful fashion;
          (12) the term ``public information'' means any 
        information, regardless of form or format, that an 
        agency discloses, disseminates, or makes available to 
        the public;
          (13) the term ``recordkeeping requirement'' means a 
        requirement imposed by or for an agency on persons to 
        maintain specified records, including a requirement 
        to--
                  (A) retain such records;
                  (B) notify third parties, the Federal 
                Government, or the public of the existence of 
                such records;
                  (C) disclose such records to third parties, 
                the Federal Government, or the public; or
                  (D) report to third parties, the Federal 
                Government, or the public regarding such 
                records; and
          (14) the term ``penalty'' includes the imposition by 
        an agency or court of a fine or other punishment; a 
        judgment for monetary damages or equitable relief; or 
        the revocation, suspension, reduction, or denial of a 
        license, privilege, right, grant, or benefit.

           *       *       *       *       *       *       *

                              ----------                              

       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 I--FINANCIAL STABILITY

     * * * * * * *

            Subtitle A--Financial Stability Oversight Council

     * * * * * * *
[Sec. 113. Authority to require supervision and regulation of certain 
          nonbank financial companies.
[Sec. 114. Registration of nonbank financial companies supervised by the 
          Board of Governors.
[Sec. 115. Enhanced supervision and prudential standards for nonbank 
          financial companies supervised by the Board of Governors and 
          certain bank holding companies.
[Sec. 116. Reports.
[Sec. 117. Treatment of certain companies that cease to be bank holding 
          companies.]
     * * * * * * *
[Sec. 119. Resolution of supervisory jurisdictional disputes among 
          member agencies.
[Sec. 120. Additional standards applicable to activities or practices 
          for financial stability purposes.
[Sec. 121. Mitigation of risks to financial stability.]
     * * * * * * *

                [Subtitle B--Office of Financial Research

[Sec. 151. Definitions.
[Sec. 152. Office of Financial Research established.
[Sec. 153. Purpose and duties of the Office.
[Sec. 154. Organizational structure; responsibilities of primary 
          programmatic units.
[Sec. 155. Funding.
[Sec. 156. Transition oversight. ]

Subtitle C--Additional Board of Governors Authority for Certain Nonbank 
             Financial Companies and Bank Holding Companies

[Sec. 161. Reports by and examinations of nonbank financial companies by 
          the Board of Governors.
[Sec. 162. Enforcement.]
     * * * * * * *
[Sec. 164. Prohibition against management interlocks between certain 
          financial companies.]
     * * * * * * *
[Sec. 166. Early remediation requirements.
[Sec. 167. Affiliations.
[Sec. 168. Regulations.]
     * * * * * * *
[Sec. 170. Safe harbor.]
     * * * * * * *
[Sec. 172. Examination and enforcement actions for insurance and orderly 
          liquidation purposes.]
     * * * * * * *
[Sec. 174. Studies and reports on holding company capital requirements.
[Sec. 175. International policy coordination.]
     * * * * * * *

  TITLE VI--IMPROVEMENTS TO REGULATION OF BANK AND SAVINGS ASSOCIATION 
              HOLDING COMPANIES AND DEPOSITORY INSTITUTIONS

     * * * * * * *
[Sec. 618. Securities holding companies.
[Sec. 619. Prohibitions on proprietary trading and certain relationships 
          with hedge funds and private equity funds.
[Sec. 620. Study of bank investment activities.]
     * * * * * * *

            TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

     * * * * * * *

                Subtitle B--General Powers of the Bureau

     * * * * * * *
Sec. 1024. [Supervision of]Authority with respect to certain 
          nondepository covered persons.
[Sec. 1025. Supervision of very large banks, savings associations, and 
          credit unions.]
     * * * * * * *
[Sec. 1028. Authority to restrict mandatory pre-dispute arbitration.]
     * * * * * * *

                 Subtitle C--Specific Bureau Authorities

[Sec. 1031. Prohibiting unfair, deceptive, or abusive acts or 
          practices.]

           *       *       *       *       *       *       *

TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *

Subtitle C--Additional Board of Governors Authority for Certain Nonbank 
Financial Companies and Bank Holding Companies

           *       *       *       *       *       *       *

SEC. 171. LEVERAGE AND RISK-BASED CAPITAL REQUIREMENTS.

  (a) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Generally applicable leverage capital 
        requirements.--The term ``generally applicable leverage 
        capital requirements'' means--
                  (A) the minimum ratios of tier 1 capital to 
                average total assets, as established by the 
                appropriate Federal banking agencies to apply 
                to insured depository institutions under the 
                prompt corrective action regulations 
                implementing section 38 of the Federal Deposit 
                Insurance Act, regardless of total consolidated 
                asset size or foreign financial exposure; and
                  (B) includes the regulatory capital 
                components in the numerator of that capital 
                requirement, average total assets in the 
                denominator of that capital requirement, and 
                the required ratio of the numerator to the 
                denominator.
          (2) Generally applicable risk-based capital 
        requirements.--The term ``generally applicable risk-
        based capital requirements'' means--
                  (A) the risk-based capital requirements, as 
                established by the appropriate Federal banking 
                agencies to apply to insured depository 
                institutions under the prompt corrective action 
                regulations implementing section 38 of the 
                Federal Deposit Insurance Act, regardless of 
                total consolidated asset size or foreign 
                financial exposure; and
                  (B) includes the regulatory capital 
                components in the numerator of those capital 
                requirements, the risk-weighted assets in the 
                denominator of those capital requirements, and 
                the required ratio of the numerator to the 
                denominator.
          (3) Definition of depository institution holding 
        company.--The term ``depository institution holding 
        company'' means a bank holding company or a savings and 
        loan holding company (as those terms are defined in 
        section 3 of the Federal Deposit Insurance Act) that is 
        organized in the United States, including any bank or 
        savings and loan holding company that is owned or 
        controlled by a foreign organization, but does not 
        include the foreign organization.
          (4) Business of insurance.--The term ``business of 
        insurance'' has the same meaning as in section 1002(3).
          (5) Person regulated by a state insurance 
        regulator.--The term ``person regulated by a State 
        insurance regulator'' has the same meaning as in 
        section 1002(22).
          (6) Regulated foreign subsidiary and regulated 
        foreign affiliate.--The terms ``regulated foreign 
        subsidiary'' and ``regulated foreign affiliate'' mean a 
        person engaged in the business of insurance in a 
        foreign country that is regulated by a foreign 
        insurance regulatory authority that is a member of the 
        International Association of Insurance Supervisors or 
        other comparable foreign insurance regulatory authority 
        as determined by the Board of Governors following 
        consultation with the State insurance regulators, 
        including the lead State insurance commissioner (or 
        similar State official) of the insurance holding 
        company system as determined by the procedures within 
        the Financial Analysis Handbook adopted by the National 
        Association of Insurance Commissioners, where the 
        person, or its principal United States insurance 
        affiliate, has its principal place of business or is 
        domiciled, but only to the extent that--
                  (A) such person acts in its capacity as a 
                regulated insurance entity; and
                  (B) the Board of Governors does not determine 
                that the capital requirements in a specific 
                foreign jurisdiction are inadequate.
          (7) Capacity as a regulated insurance entity.--The 
        term ``capacity as a regulated insurance entity''--
                  (A) includes any action or activity 
                undertaken by a person regulated by a State 
                insurance regulator or a regulated foreign 
                subsidiary or regulated foreign affiliate of 
                such person, as those actions relate to the 
                provision of insurance, or other activities 
                necessary to engage in the business of 
                insurance; and
                  (B) does not include any action or activity, 
                including any financial activity, that is not 
                regulated by a State insurance regulator or a 
                foreign agency or authority and subject to 
                State insurance capital requirements or, in the 
                case of a regulated foreign subsidiary or 
                regulated foreign affiliate, capital 
                requirements imposed by a foreign insurance 
                regulatory authority.
  (b) Minimum Capital Requirements.--
          (1) Minimum leverage capital requirements.--The 
        appropriate Federal banking agencies shall establish 
        minimum leverage capital requirements on a consolidated 
        basis for insured depository institutions, depository 
        institution holding companies, and nonbank financial 
        companies supervised by the Board of Governors. The 
        minimum leverage capital requirements established under 
        this paragraph shall not be less than the generally 
        applicable leverage capital requirements, which shall 
        serve as a floor for any capital requirements that the 
        agency may require, nor quantitatively lower than the 
        generally applicable leverage capital requirements that 
        were in effect for insured depository institutions as 
        of the date of enactment of this Act.
          (2) Minimum risk-based capital requirements.--The 
        appropriate Federal banking agencies shall establish 
        minimum risk-based capital requirements on a 
        consolidated basis for insured depository institutions, 
        depository institution holding companies, and nonbank 
        financial companies supervised by the Board of 
        Governors. The minimum risk-based capital requirements 
        established under this paragraph shall not be less than 
        the generally applicable risk-based capital 
        requirements, which shall serve as a floor for any 
        capital requirements that the agency may require, nor 
        quantitatively lower than the generally applicable 
        risk-based capital requirements that were in effect for 
        insured depository institutions as of the date of 
        enactment of this Act.
          (3) Investments in financial subsidiaries.--For 
        purposes of this section, investments in financial 
        subsidiaries that insured depository institutions are 
        required to deduct from regulatory capital under 
        section 5136A of the Revised Statutes of the United 
        States or section 46(a)(2) of the Federal Deposit 
        Insurance Act need not be deducted from regulatory 
        capital by depository institution holding companies or 
        nonbank financial companies supervised by the Board of 
        Governors, unless such capital deduction is required by 
        the Board of Governors or the primary financial 
        regulatory agency in the case of nonbank financial 
        companies supervised by the Board of Governors.
          (4) Effective dates and phase-in periods.--
                  (A) Debt or equity instruments on or after 
                may 19, 2010.--For debt or equity instruments 
                issued on or after May 19, 2010, by depository 
                institution holding companies or by nonbank 
                financial companies supervised by the Board of 
                Governors, this section shall be deemed to have 
                become effective as of May 19, 2010.
                  (B) Debt or equity instruments issued before 
                may 19, 2010.--For debt or equity instruments 
                issued before May 19, 2010, by depository 
                institution holding companies or by nonbank 
                financial companies supervised by the Board of 
                Governors, any regulatory capital deductions 
                required under this section shall be phased in 
                incrementally over a period of 3 years, with 
                the phase-in period to begin on January 1, 
                2013, except as set forth in subparagraph (C).
                  (C) Debt or equity instruments of smaller 
                institutions.--For debt or equity instruments 
                issued before May 19, 2010, by depository 
                institution holding companies with total 
                consolidated assets of less than 
                $15,000,000,000 as of December 31, 2009, or 
                March 31, 2010, and by organizations that were 
                mutual holding companies on May 19, 2010, the 
                capital deductions that would be required for 
                other institutions under this section are not 
                required as a result of this section.
                  (D) Depository institution holding companies 
                not previously supervised by the board of 
                governors.--For any depository institution 
                holding company that was not supervised by the 
                Board of Governors as of May 19, 2010, the 
                requirements of this section, except as set 
                forth in subparagraphs (A) and (B), shall be 
                effective 5 years after the date of enactment 
                of this Act
                  (E) Certain bank holding company subsidiaries 
                of foreign banking organizations.--For bank 
                holding company subsidiaries of foreign banking 
                organizations that have relied on Supervision 
                and Regulation Letter SR-01-1 issued by the 
                Board of Governors (as in effect on May 19, 
                2010), the requirements of this section, except 
                as set forth in subparagraph (A), shall be 
                effective 5 years after the date of enactment 
                of this Act.
          (5) Exceptions.--This section shall not apply to--
                  (A) debt or equity instruments issued to the 
                United States or any agency or instrumentality 
                thereof pursuant to the Emergency Economic 
                Stabilization Act of 2008, and prior to October 
                4, 2010;
                  (B) any Federal home loan bank; or
                  [(C) any bank holding company or savings and 
                loan holding company having less than 
                $1,000,000,000 in total consolidated assets 
                that complies with the requirements of the 
                Small Bank Holding Company Policy Statement on 
                Assessment of Financial and Managerial Factors 
                of the Board of Governors (12 CFR part 225 
                appendix C), as the requirements of such Policy 
                Statement are amended pursuant to section 1 of 
                an Act entitled ``To enhance the ability of 
                community financial institutions to foster 
                economic growth and serve their communities, 
                boost small businesses, increase individual 
                savings, and for other purposes''.]
                  (C) any bank holding company or savings and 
                loan holding company that is subject to the 
                application of the Small Bank Holding Company 
                Policy Statement on Assessment of Financial and 
                Managerial Factors of the Board of Governors 
                (12 CFR part 225--appendix C).
          (6) Study and report on small institution access to 
        capital.--
                  (A) Study required.--The Comptroller General 
                of the United States, after consultation with 
                the Federal banking agencies, shall conduct a 
                study of access to capital by smaller insured 
                depository institutions.
                  (B) Scope.--For purposes of this study 
                required by subparagraph (A), the term 
                ``smaller insured depository institution'' 
                means an insured depository institution with 
                total consolidated assets of $5,000,000,000 or 
                less.
                  (C) Report to congress.--Not later than 18 
                months after the date of enactment of this Act, 
                the Comptroller General of the United States 
                shall submit to the Committee on Banking, 
                Housing, and Urban Affairs of the Senate and 
                the Committee on Financial Services of the 
                House of Representatives a report summarizing 
                the results of the study conducted under 
                subparagraph (A), together with any 
                recommendations for legislative or regulatory 
                action that would enhance the access to capital 
                of smaller insured depository institutions, in 
                a manner that is consistent with safe and sound 
                banking operations.
          (7) Capital requirements to address activities that 
        pose risks to the financial system.--
                  (A) In general.--Subject to the 
                recommendations of the Council, in accordance 
                with section 120, the Federal banking agencies 
                shall develop capital requirements applicable 
                to insured depository institutions, depository 
                institution holding companies, and nonbank 
                financial companies supervised by the Board of 
                Governors that address the risks that the 
                activities of such institutions pose, not only 
                to the institution engaging in the activity, 
                but to other public and private stakeholders in 
                the event of adverse performance, disruption, 
                or failure of the institution or the activity.
                  (B) Content.--Such rules shall address, at a 
                minimum, the risks arising from--
                          (i) significant volumes of activity 
                        in derivatives, securitized products 
                        purchased and sold, financial 
                        guarantees purchased and sold, 
                        securities borrowing and lending, and 
                        repurchase agreements and reverse 
                        repurchase agreements;
                          (ii) concentrations in assets for 
                        which the values presented in financial 
                        reports are based on models rather than 
                        historical cost or prices deriving from 
                        deep and liquid 2-way markets; and
                          (iii) concentrations in market share 
                        for any activity that would 
                        substantially disrupt financial markets 
                        if the institution is forced to 
                        unexpectedly cease the activity.
  (c) Clarification.--
          (1) In general.--In establishing the minimum leverage 
        capital requirements and minimum risk-based capital 
        requirements on a consolidated basis for a depository 
        institution holding company or a nonbank financial 
        company supervised by the Board of Governors as 
        required under paragraphs (1) and (2) of subsection 
        (b), the appropriate Federal banking agencies shall not 
        be required to include, for any purpose of this section 
        (including in any determination of consolidation), a 
        person regulated by a State insurance regulator or a 
        regulated foreign subsidiary or a regulated foreign 
        affiliate of such person engaged in the business of 
        insurance, to the extent that such person acts in its 
        capacity as a regulated insurance entity.
          (2) Rule of construction on board's authority.--This 
        subsection shall not be construed to prohibit, modify, 
        limit, or otherwise supersede any other provision of 
        Federal law that provides the Board of Governors 
        authority to issue regulations and orders relating to 
        capital requirements for depository institution holding 
        companies or nonbank financial companies supervised by 
        the Board of Governors.
          (3) Rule of construction on accounting principles.--
                  (A) In general.--A depository institution 
                holding company or nonbank financial company 
                supervised by the Board of Governors of the 
                Federal Reserve that is also a person regulated 
                by a State insurance regulator that is engaged 
                in the business of insurance that files 
                financial statements with a State insurance 
                regulator or the National Association of 
                Insurance Commissioners utilizing only 
                Statutory Accounting Principles in accordance 
                with State law, shall not be required by the 
                Board under the authority of this section or 
                the authority of the Home Owners' Loan Act to 
                prepare such financial statements in accordance 
                with Generally Accepted Accounting Principles.
                  (B) Preservation of authority.--Nothing in 
                subparagraph (A) shall limit the authority of 
                the Board under any other applicable provision 
                of law to conduct any regulatory or supervisory 
                activity of a depository institution holding 
                company or non-bank financial company 
                supervised by the Board of Governors, including 
                the collection or reporting of any information 
                on an entity or group-wide basis. Nothing in 
                this paragraph shall excuse the Board from its 
                obligations to comply with section 161(a) of 
                the Dodd-Frank Wall Street Reform and Consumer 
                Protection Act (12 U.S.C. 5361(a)) and section 
                10(b)(2) of the Home Owners' Loan Act (12 
                U.S.C. 1467a(b)(2)), as appropriate.

           *       *       *       *       *       *       *

 TITLE VI--IMPROVEMENTS TO REGULATION OF BANK AND SAVINGS ASSOCIATION 
HOLDING COMPANIES AND DEPOSITORY INSTITUTIONS

           *       *       *       *       *       *       *

[SEC. 618. SECURITIES HOLDING COMPANIES.

  [(a) Definitions.--In this section--
          [(1) the term ``associated person of a securities 
        holding company'' means a person directly or indirectly 
        controlling, controlled by, or under common control 
        with, a securities holding company;
          [(2) the term ``foreign bank'' has the same meaning 
        as in section 1(b)(7) of the International Banking Act 
        of 1978 (12 U.S.C. 3101(7));
          [(3) the term ``insured bank'' has the same meaning 
        as in section 3 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813);
          [(4) the term ``securities holding company''--
                  [(A) means--
                          [(i) a person (other than a natural 
                        person) that owns or controls 1 or more 
                        brokers or dealers registered with the 
                        Commission; and
                          [(ii) the associated persons of a 
                        person described in clause (i); and
                  [(B) does not include a person that is--
                          [(i) a nonbank financial company 
                        supervised by the Board under title I;
                          [(ii) an insured bank (other than an 
                        institution described in subparagraphs 
                        (D), (F), or (H) of section 2(c)(2) of 
                        the Bank Holding Company Act of 1956 
                        (12 U.S.C. 1841(c)(2)) or a savings 
                        association;
                          [(iii) an affiliate of an insured 
                        bank (other than an institution 
                        described in subparagraphs (D), (F), or 
                        (H) of section 2(c)(2) of the Bank 
                        Holding Company Act of 1956 (12 U.S.C. 
                        1841(c)(2)) or an affiliate of a 
                        savings association;
                          [(iv) a foreign bank, foreign 
                        company, or company that is described 
                        in section 8(a) of the International 
                        Banking Act of 1978 (12 U.S.C. 
                        3106(a));
                          [(v) a foreign bank that controls, 
                        directly or indirectly, a corporation 
                        chartered under section 25A of the 
                        Federal Reserve Act (12 U.S.C. 611 et 
                        seq.); or
                          [(vi) subject to comprehensive 
                        consolidated supervision by a foreign 
                        regulator;
          [(5) the term ``supervised securities holding 
        company'' means a securities holding company that is 
        supervised by the Board of Governors under this 
        section; and
          [(6) the terms ``affiliate'', ``bank'', ``bank 
        holding company'', ``company'', ``control'', ``savings 
        association'', and ``subsidiary'' have the same 
        meanings as in section 2 of the Bank Holding Company 
        Act of 1956.
  [(b) Supervision of a Securities Holding Company Not Having a 
Bank or Savings Association Affiliate.--
          [(1) In general.--A securities holding company that 
        is required by a foreign regulator or provision of 
        foreign law to be subject to comprehensive consolidated 
        supervision may register with the Board of Governors 
        under paragraph (2) to become a supervised securities 
        holding company. Any securities holding company filing 
        such a registration shall be supervised in accordance 
        with this section, and shall comply with the rules and 
        orders prescribed by the Board of Governors applicable 
        to supervised securities holding companies.
          [(2) Registration as a supervised securities holding 
        company.--
                  [(A) Registration.--A securities holding 
                company that elects to be subject to 
                comprehensive consolidated supervision shall 
                register by filing with the Board of Governors 
                such information and documents as the Board of 
                Governors, by regulation, may prescribe as 
                necessary or appropriate in furtherance of the 
                purposes of this section.
                  [(B) Effective date.--A securities holding 
                company that registers under subparagraph (A) 
                shall be deemed to be a supervised securities 
                holding company, effective on the date that is 
                45 days after the date of receipt of the 
                registration information and documents under 
                subparagraph (A) by the Board of Governors, or 
                within such shorter period as the Board of 
                Governors, by rule or order, may determine.
  [(c) Supervision of Securities Holding Companies.--
          [(1) Recordkeeping and reporting.--
                  [(A) Recordkeeping and reporting required.--
                Each supervised securities holding company and 
                each affiliate of a supervised securities 
                holding company shall make and keep for periods 
                determined by the Board of Governors such 
                records, furnish copies of such records, and 
                make such reports, as the Board of Governors 
                determines to be necessary or appropriate to 
                carry out this section, to prevent evasions 
                thereof, and to monitor compliance by the 
                supervised securities holding company or 
                affiliate with applicable provisions of law.
                  [(B) Form and contents.--
                          [(i) In general.--Any record or 
                        report required to be made, furnished, 
                        or kept under this paragraph shall--
                                  [(I) be prepared in such form 
                                and according to such 
                                specifications (including 
                                certification by a registered 
                                public accounting firm), as the 
                                Board of Governors may require; 
                                and
                                  [(II) be provided promptly to 
                                the Board of Governors at any 
                                time, upon request by the Board 
                                of Governors.
                          [(ii) Contents.--Records and reports 
                        required to be made, furnished, or kept 
                        under this paragraph may include--
                                  [(I) a balance sheet or 
                                income statement of the 
                                supervised securities holding 
                                company or an affiliate of a 
                                supervised securities holding 
                                company;
                                  [(II) an assessment of the 
                                consolidated capital and 
                                liquidity of the supervised 
                                securities holding company;
                                  [(III) a report by an 
                                independent auditor attesting 
                                to the compliance of the 
                                supervised securities holding 
                                company with the internal risk 
                                management and internal control 
                                objectives of the supervised 
                                securities holding company; and
                                  [(IV) a report concerning the 
                                extent to which the supervised 
                                securities holding company or 
                                affiliate has complied with the 
                                provisions of this section and 
                                any regulations prescribed and 
                                orders issued under this 
                                section.
          [(2) Use of existing reports.--
                  [(A) In general.--The Board of Governors 
                shall, to the fullest extent possible, accept 
                reports in fulfillment of the requirements of 
                this paragraph that a supervised securities 
                holding company or an affiliate of a supervised 
                securities holding company has been required to 
                provide to another regulatory agency or a self-
                regulatory organization.
                  [(B) Availability.--A supervised securities 
                holding company or an affiliate of a supervised 
                securities holding company shall promptly 
                provide to the Board of Governors, at the 
                request of the Board of Governors, any report 
                described in subparagraph (A), as permitted by 
                law.
          [(3) Examination authority.--
                  [(A) Focus of examination authority.--The 
                Board of Governors may make examinations of any 
                supervised securities holding company and any 
                affiliate of a supervised securities holding 
                company to carry out this subsection, to 
                prevent evasions thereof, and to monitor 
                compliance by the supervised securities holding 
                company or affiliate with applicable provisions 
                of law.
                  [(B) Deference to other examinations.--For 
                purposes of this subparagraph, the Board of 
                Governors shall, to the fullest extent 
                possible, use the reports of examination made 
                by other appropriate Federal or State 
                regulatory authorities with respect to any 
                functionally regulated subsidiary or any 
                institution described in subparagraph (D), (F), 
                or (H) of section 2(c)(2) of the Bank Holding 
                Company Act of 1956 (12 U.S.C. 1841(c)(2)).
  [(d) Capital and Risk Management.--
          [(1) In general.--The Board of Governors shall, by 
        regulation or order, prescribe capital adequacy and 
        other risk management standards for supervised 
        securities holding companies that are appropriate to 
        protect the safety and soundness of the supervised 
        securities holding companies and address the risks 
        posed to financial stability by supervised securities 
        holding companies.
          [(2) Differentiation.--In imposing standards under 
        this subsection, the Board of Governors may 
        differentiate among supervised securities holding 
        companies on an individual basis, or by category, 
        taking into consideration the requirements under 
        paragraph (3).
          [(3) Content.--Any standards imposed on a supervised 
        securities holding company under this subsection shall 
        take into account--
                  [(A) the differences among types of business 
                activities carried out by the supervised 
                securities holding company;
                  [(B) the amount and nature of the financial 
                assets of the supervised securities holding 
                company;
                  [(C) the amount and nature of the liabilities 
                of the supervised securities holding company, 
                including the degree of reliance on short-term 
                funding;
                  [(D) the extent and nature of the off-balance 
                sheet exposures of the supervised securities 
                holding company;
                  [(E) the extent and nature of the 
                transactions and relationships of the 
                supervised securities holding company with 
                other financial companies;
                  [(F) the importance of the supervised 
                securities holding company as a source of 
                credit for households, businesses, and State 
                and local governments, and as a source of 
                liquidity for the financial system; and
                  [(G) the nature, scope, and mix of the 
                activities of the supervised securities holding 
                company.
          [(4) Notice.--A capital requirement imposed under 
        this subsection may not take effect earlier than 180 
        days after the date on which a supervised securities 
        holding company is provided notice of the capital 
        requirement.
  [(e) Other Provisions of Law Applicable to Supervised 
Securities Holding Companies.--
          [(1) Federal deposit insurance act.--Subsections (b), 
        (c) through (s), and (u) of section 8 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1818) shall apply to 
        any supervised securities holding company, and to any 
        subsidiary (other than a bank or an institution 
        described in subparagraph (D), (F), or (H) of section 
        2(c)(2) of the Bank Holding Company Act of 1956 (12 
        U.S.C. 1841(c)(2))) of a supervised securities holding 
        company, in the same manner as such subsections apply 
        to a bank holding company for which the Board of 
        Governors is the appropriate Federal banking agency. 
        For purposes of applying such subsections to a 
        supervised securities holding company or a subsidiary 
        (other than a bank or an institution described in 
        subparagraph (D), (F), or (H) of section 2(c)(2) of the 
        Bank Holding Company Act of 1956 (12 U.S.C. 
        1841(c)(2))) of a supervised securities holding 
        company, the Board of Governors shall be deemed the 
        appropriate Federal banking agency for the supervised 
        securities holding company or subsidiary.
          [(2) Bank holding company act of 1956.--Except as the 
        Board of Governors may otherwise provide by regulation 
        or order, a supervised securities holding company shall 
        be subject to the provisions of the Bank Holding 
        Company Act of 1956 (12 U.S.C. 1841 et seq.) in the 
        same manner and to the same extent a bank holding 
        company is subject to such provisions, except that a 
        supervised securities holding company may not, by 
        reason of this paragraph, be deemed to be a bank 
        holding company for purposes of section 4 of the Bank 
        Holding Company Act of 1956 (12 U.S.C. 1843).

[SEC. 619. PROHIBITIONS ON PROPRIETARY TRADING AND CERTAIN 
                    RELATIONSHIPS WITH HEDGE FUNDS AND PRIVATE EQUITY 
                    FUNDS

  [The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et 
seq.) is amended by adding at the end the following:

[``SEC. 13. PROHIBITIONS ON PROPRIETARY TRADING AND CERTAIN 
                    RELATIONSHIPS WITH HEDGE FUNDS AND PRIVATE EQUITY 
                    FUNDS

  [``(a) In general.--
          [``(1) Prohibition.--Unless otherwise provided in 
        this section, a banking entity shall not--
                  [``(A) engage in proprietary trading; or
                  [``(B) acquire or retain any equity, 
                partnership, or other ownership interest in or 
                sponsor a hedge fund or a private equity fund.
          [``(2) Nonbank financial companies supervised by the 
        board.--Any nonbank financial company supervised by the 
        Board that engages in proprietary trading or takes or 
        retains any equity, partnership, or other ownership 
        interest in or sponsors a hedge fund or a private 
        equity fund shall be subject, by rule, as provided in 
        subsection (b)(2), to additional capital requirements 
        for and additional quantitative limits with regards to 
        such proprietary trading and taking or retaining any 
        equity, partnership, or other ownership interest in or 
        sponsorship of a hedge fund or a private equity fund, 
        except that permitted activities as described in 
        subsection (d) shall not be subject to the additional 
        capital and additional quantitative limits except as 
        provided in subsection (d)(3), as if the nonbank 
        financial company supervised by the Board were a 
        banking entity.
  [``(b) Study and Rulemaking.--
          [``(1) Study.--Not later than 6 months after the date 
        of enactment of this section, the Financial Stability 
        Oversight Council shall study and make recommendations 
        on implementing the provisions of this section so as 
        to--
                  [``(A) promote and enhance the safety and 
                soundness of banking entities;
                  [``(B) protect taxpayers and consumers and 
                enhance financial stability by minimizing the 
                risk that insured depository institutions and 
                the affiliates of insured depository 
                institutions will engage in unsafe and unsound 
                activities;
                  [``(C) limit the inappropriate transfer of 
                Federal subsidies from institutions that 
                benefit from deposit insurance and liquidity 
                facilities of the Federal Government to 
                unregulated entities;
                  [``(D) reduce conflicts of interest between 
                the self-interest of banking entities and 
                nonbank financial companies supervised by the 
                Board, and the interests of the customers of 
                such entities and companies;
                  [``(E) limit activities that have caused 
                undue risk or loss in banking entities and 
                nonbank financial companies supervised by the 
                Board, or that might reasonably be expected to 
                create undue risk or loss in such banking 
                entities and nonbank financial companies 
                supervised by the Board;
                  [``(F) appropriately accommodate the business 
                of insurance within an insurance company, 
                subject to regulation in accordance with the 
                relevant insurance company investment laws, 
                while protecting the safety and soundness of 
                any banking entity with which such insurance 
                company is affiliated and of the United States 
                financial system; and
                  [``(G) appropriately time the divestiture of 
                illiquid assets that are affected by the 
                implementation of the prohibitions under 
                subsection (a).
          [``(2) Rulemaking.--
                  [``(A) In general.--Unless otherwise provided 
                in this section, not later than 9 months after 
                the completion of the study under paragraph 
                (1), the appropriate Federal banking agencies, 
                the Securities and Exchange Commission, and the 
                Commodity Futures Trading Commission, shall 
                consider the findings of the study under 
                paragraph (1) and adopt rules to carry out this 
                section, as provided in subparagraph (B).
                  [``(B) Coordinated rulemaking.--
                          [``(i) Regulatory Authority.--The 
                        regulations issued under this paragraph 
                        shall be issued by--
                                  [``(I) the appropriate 
                                Federal banking agencies, 
                                jointly, with respect to 
                                insured depository 
                                institutions;
                                  [``(II) the Board, with 
                                respect to any company that 
                                controls an insured depository 
                                institution, or that is treated 
                                as a bank holding company for 
                                purposes of section 8 of the 
                                International Banking Act, any 
                                nonbank financial company 
                                supervised by the Board, and 
                                any subsidiary of any of the 
                                foregoing (other than a 
                                subsidiary for which an agency 
                                described in subclause (I), 
                                (III), or (IV) is the primary 
                                financial regulatory agency);
                                  [``(III) the Commodity 
                                Futures Trading Commission, 
                                with respect to any entity for 
                                which the Commodity Futures 
                                Trading Commission is the 
                                primary financial regulatory 
                                agency, as defined in section 2 
                                of the Dodd-Frank Wall Street 
                                Reform and Consumer Protection 
                                Act; and
                                  [``(IV) the Securities and 
                                Exchange Commission, with 
                                respect to any entity for which 
                                the Securities and Exchange 
                                Commission is the primary 
                                financial regulatory agency, as 
                                defined in section 2 of the 
                                Dodd-Frank Wall Street Reform 
                                and Consumer Protection Act.
                          [``(ii) Coordination, consistency, 
                        and comparability.--In developing and 
                        issuing regulations pursuant to this 
                        section, the appropriate Federal 
                        banking agencies, the Securities and 
                        Exchange Commission, and the Commodity 
                        Futures Trading Commission shall 
                        consult and coordinate with each other, 
                        as appropriate, for the purposes of 
                        assuring, to the extent possible, that 
                        such regulations are comparable and 
                        provide for consistent application and 
                        implementation of the applicable 
                        provisions of this section to avoid 
                        providing advantages or imposing 
                        disadvantages to the companies affected 
                        by this subsection and to protect the 
                        safety and soundness of banking 
                        entities and nonbank financial 
                        companies supervised by the Board.
                          [``(iii) Council role.--The 
                        Chairperson of the Financial Stability 
                        Oversight Council shall be responsible 
                        for coordination of the regulations 
                        issued under this section.
  [``(c) Effective Date.--
          [``(1) In general.--Except as provided in paragraphs 
        (2) and (3), this section shall take effect on the 
        earlier of--
                  [``(A) 12 months after the date of the 
                issuance of final rules under subsection (b); 
                or
                  [``(B) 2 years after the date of enactment of 
                this section.
          [``(2) Conformance period for divestiture.--A banking 
        entity or nonbank financial company supervised by the 
        Board shall bring its activities and investments into 
        compliance with the requirements of this section not 
        later than 2 years after the date on which the 
        requirements become effective pursuant to this section 
        or 2 years after the date on which the entity or 
        company becomes a nonbank financial company supervised 
        by the Board. The Board may, by rule or order, extend 
        this two-year period for not more than one year at a 
        time, if, in the judgment of the Board, such an 
        extension is consistent with the purposes of this 
        section and would not be detrimental to the public 
        interest. The extensions made by the Board under the 
        preceding sentence may not exceed an aggregate of 3 
        years.
          [``(3) Extended transition for illiquid funds.--
                  [``(A) Application.--The Board may, upon the 
                application of a banking entity, extend the 
                period during which the banking entity, to the 
                extent necessary to fulfill a contractual 
                obligation that was in effect on May 1, 2010, 
                may take or retain its equity, partnership, or 
                other ownership interest in, or otherwise 
                provide additional capital to, an illiquid 
                fund.
                  [``(B) Time limit on approval.--The Board may 
                grant 1 extension under subparagraph (A), which 
                may not exceed 5 years.
          [``(4) Divestiture required.--Except as otherwise 
        provided in subsection (d)(1)(G), a banking entity may 
        not engage in any activity prohibited under subsection 
        (a)(1)(B) after the earlier of--
                  [``(A) the date on which the contractual 
                obligation to invest in the illiquid fund 
                terminates; and
                  [``(B) the date on which any extensions 
                granted by the Board under paragraph (3) 
                expire.
          [``(5) Additional capital during transition period.--
        Notwithstanding paragraph (2), on the date on which the 
        rules are issued under subsection (b)(2), the 
        appropriate Federal banking agencies, the Securities 
        and Exchange Commission, and the Commodity Futures 
        Trading Commission shall issue rules, as provided in 
        subsection (b)(2), to impose additional capital 
        requirements, and any other restrictions, as 
        appropriate, on any equity, partnership, or ownership 
        interest in or sponsorship of a hedge fund or private 
        equity fund by a banking entity.
          [``(6) Special rulemaking.--Not later than 6 months 
        after the date of enactment of this section, the Board 
        shall issues rules to implement paragraphs (2) and (3).
  [``(d) Permitted Activities.--
          [``(1) In general.--Notwithstanding the restrictions 
        under subsection (a), to the extent permitted by any 
        other provision of Federal or State law, and subject to 
        the limitations under paragraph (2) and any 
        restrictions or limitations that the appropriate 
        Federal banking agencies, the Securities and Exchange 
        Commission, and the Commodity Futures Trading 
        Commission, may determine, the following activities (in 
        this section referred to as `permitted activities') are 
        permitted:
                  [``(A) The purchase, sale, acquisition, or 
                disposition of obligations of the United States 
                or any agency thereof, obligations, 
                participations, or other instruments of or 
                issued by the Government National Mortgage 
                Association, the Federal National Mortgage 
                Association, the Federal Home Loan Mortgage 
                Corporation, a Federal Home Loan Bank, the 
                Federal Agricultural Mortgage Corporation, or a 
                Farm Credit System institution chartered under 
                and subject to the provisions of the Farm 
                Credit Act of 1971 (12 U.S.C. 2001 et seq.), 
                and obligations of any State or of any 
                political subdivision thereof.
                  [``(B) The purchase, sale, acquisition, or 
                disposition of securities and other instruments 
                described in subsection (h)(4) in connection 
                with underwriting or market-making-related 
                activities, to the extent that any such 
                activities permitted by this subparagraph are 
                designed not to exceed the reasonably expected 
                near term demands of clients, customers, or 
                counterparties.
                  [``(C) Risk-mitigating hedging activities in 
                connection with and related to individual or 
                aggregated positions, contracts, or other 
                holdings of a banking entity that are designed 
                to reduce the specific risks to the banking 
                entity in connection with and related to such 
                positions, contracts, or other holdings.
                  [``(D) The purchase, sale, acquisition, or 
                disposition of securities and other instruments 
                described in subsection (h)(4) on behalf of 
                customers.
                  [``(E) Investments in one or more small 
                business investment companies, as defined in 
                section 102 of the Small Business Investment 
                Act of 1958 (15 U.S.C. 662), investments 
                designed primarily to promote the public 
                welfare, of the type permitted under paragraph 
                (11) of section 5136 of the Revised Statutes of 
                the United States (12 U.S.C. 24), or 
                investments that are qualified rehabilitation 
                expenditures with respect to a qualified 
                rehabilitated building or certified historic 
                structure, as such terms are defined in section 
                47 of the Internal Revenue Code of 1986 or a 
                similar State historic tax credit program.
                  [``(F) The purchase, sale, acquisition, or 
                disposition of securities and other instruments 
                described in subsection (h)(4) by a regulated 
                insurance company directly engaged in the 
                business of insurance for the general account 
                of the company and by any affiliate of such 
                regulated insurance company, provided that such 
                activities by any affiliate are solely for the 
                general account of the regulated insurance 
                company, if--
                          [``(i) the purchase, sale, 
                        acquisition, or disposition is 
                        conducted in compliance with, and 
                        subject to, the insurance company 
                        investment laws, regulations, and 
                        written guidance of the State or 
                        jurisdiction in which each such 
                        insurance company is domiciled; and
                          [``(ii) the appropriate Federal 
                        banking agencies, after consultation 
                        with the Financial Stability Oversight 
                        Council and the relevant insurance 
                        commissioners of the States and 
                        territories of the United States, have 
                        not jointly determined, after notice 
                        and comment, that a particular law, 
                        regulation, or written guidance 
                        described in clause (i) is insufficient 
                        to protect the safety and soundness of 
                        the banking entity, or of the financial 
                        stability of the United States.
                  [``(G) Organizing and offering a private 
                equity or hedge fund, including serving as a 
                general partner, managing member, or trustee of 
                the fund and in any manner selecting or 
                controlling (or having employees, officers, 
                directors, or agents who constitute) a majority 
                of the directors, trustees, or management of 
                the fund, including any necessary expenses for 
                the foregoing, only if--
                          [``(i) the banking entity provides 
                        bona fide trust, fiduciary, or 
                        investment advisory services;
                          [``(ii) the fund is organized and 
                        offered only in connection with the 
                        provision of bona fide trust, 
                        fiduciary, or investment advisory 
                        services and only to persons that are 
                        customers of such services of the 
                        banking entity;
                          [``(iii) the banking entity does not 
                        acquire or retain an equity interest, 
                        partnership interest, or other 
                        ownership interest in the funds except 
                        for a de minimis investment subject to 
                        and in compliance with paragraph (4);
                          [``(iv) the banking entity complies 
                        with the restrictions under paragraphs 
                        (1) and (2) of subparagraph (f);
                          [``(v) the banking entity does not, 
                        directly or indirectly, guarantee, 
                        assume, or otherwise insure the 
                        obligations or performance of the hedge 
                        fund or private equity fund or of any 
                        hedge fund or private equity fund in 
                        which such hedge fund or private equity 
                        fund invests;
                          [``(vi) the banking entity does not 
                        share with the hedge fund or private 
                        equity fund, for corporate, marketing, 
                        promotional, or other purposes, the 
                        same name or a variation of the same 
                        name;
                          [``(vii) no director or employee of 
                        the banking entity takes or retains an 
                        equity interest, partnership interest, 
                        or other ownership interest in the 
                        hedge fund or private equity fund, 
                        except for any director or employee of 
                        the banking entity who is directly 
                        engaged in providing investment 
                        advisory or other services to the hedge 
                        fund or private equity fund; and
                          [``(viii) the banking entity 
                        discloses to prospective and actual 
                        investors in the fund, in writing, that 
                        any losses in such hedge fund or 
                        private equity fund are borne solely by 
                        investors in the fund and not by the 
                        banking entity, and otherwise complies 
                        with any additional rules of the 
                        appropriate Federal banking agencies, 
                        the Securities and Exchange Commission, 
                        or the Commodity Futures Trading 
                        Commission, as provided in subsection 
                        (b)(2), designed to ensure that losses 
                        in such hedge fund or private equity 
                        fund are borne solely by investors in 
                        the fund and not by the banking entity.
                  [``(H) Proprietary trading conducted by a 
                banking entity pursuant to paragraph (9) or 
                (13) of section 4(c), provided that the trading 
                occurs solely outside of the United States and 
                that the banking entity is not directly or 
                indirectly controlled by a banking entity that 
                is organized under the laws of the United 
                States or of one or more States.
                  [``(I) The acquisition or retention of any 
                equity, partnership, or other ownership 
                interest in, or the sponsorship of, a hedge 
                fund or a private equity fund by a banking 
                entity pursuant to paragraph (9) or (13) of 
                section 4(c) solely outside of the United 
                States, provided that no ownership interest in 
                such hedge fund or private equity fund is 
                offered for sale or sold to a resident of the 
                United States and that the banking entity is 
                not directly or indirectly controlled by a 
                banking entity that is organized under the laws 
                of the United States or of one or more States.
                  [``(J) Such other activity as the appropriate 
                Federal banking agencies, the Securities and 
                Exchange Commission, and the Commodity Futures 
                Trading Commission determine, by rule, as 
                provided in subsection (b)(2), would promote 
                and protect the safety and soundness of the 
                banking entity and the financial stability of 
                the United States.
          [``(2) Limitation on permitted activities.--
                  [``(A) In general.--No transaction, class of 
                transactions, or activity may be deemed a 
                permitted activity under paragraph (1) if the 
                transaction, class of transactions, or 
                activity--
                          [``(i) would involve or result in a 
                        material conflict of interest (as such 
                        term shall be defined by rule as 
                        provided in subsection (b)(2)) between 
                        the banking entity and its clients, 
                        customers, or counterparties;
                          [``(ii) would result, directly or 
                        indirectly, in a material exposure by 
                        the banking entity to high-risk assets 
                        or high-risk trading strategies (as 
                        such terms shall be defined by rule as 
                        provided in subsection (b)(2));
                          [``(iii) would pose a threat to the 
                        safety and soundness of such banking 
                        entity; or
                          [``(iv) would pose a threat to the 
                        financial stability of the United 
                        States.
                  [``(B) Rulemaking.--The appropriate Federal 
                banking agencies, the Securities and Exchange 
                Commission, and the Commodity Futures Trading 
                Commission shall issue regulations to implement 
                subparagraph (A), as part of the regulations 
                issued under subsection (b)(2).
          [``(3) Capital and quantitative limitations.--The 
        appropriate Federal banking agencies, the Securities 
        and Exchange Commission, and the Commodity Futures 
        Trading Commission shall, as provided in subsection 
        (b)(2), adopt rules imposing additional capital 
        requirements and quantitative limitations, including 
        diversification requirements, regarding the activities 
        permitted under this section if the appropriate Federal 
        banking agencies, the Securities and Exchange 
        Commission, and the Commodity Futures Trading 
        Commission determine that additional capital and 
        quantitative limitations are appropriate to protect the 
        safety and soundness of banking entities engaged in 
        such activities.
          [``(4) De minimis investment.--
                  [``(A) In general.--A banking entity may make 
                and retain an investment in a hedge fund or 
                private equity fund that the banking entity 
                organizes and offers, subject to the 
                limitations and restrictions in subparagraph 
                (B) for the purposes of--
                          [``(i) establishing the fund and 
                        providing the fund with sufficient 
                        initial equity for investment to permit 
                        the fund to attract unaffiliated 
                        investors; or
                          [``(ii) making a de minimis 
                        investment.
                  [``(B) Limitations and restrictions on 
                investments.--
                          [``(i) Requirement to seek other 
                        investors.--A banking entity shall 
                        actively seek unaffiliated investors to 
                        reduce or dilute the investment of the 
                        banking entity to the amount permitted 
                        under clause (ii).
                          [``(ii) Limitations on size of 
                        investments.--Notwithstanding any other 
                        provision of law, investments by a 
                        banking entity in a hedge fund or 
                        private equity fund shall--
                                  [``(I) not later than 1 year 
                                after the date of establishment 
                                of the fund, be reduced through 
                                redemption, sale, or dilution 
                                to an amount that is not more 
                                than 3 percent of the total 
                                ownership interests of the 
                                fund;
                                  [``(II) be immaterial to the 
                                banking entity, as defined, by 
                                rule, pursuant to subsection 
                                (b)(2), but in no case may the 
                                aggregate of all of the 
                                interests of the banking entity 
                                in all such funds exceed 3 
                                percent of the Tier 1 capital 
                                of the banking entity.
                          [``(iii) Capital.--For purposes of 
                        determining compliance with applicable 
                        capital standards under paragraph (3), 
                        the aggregate amount of the outstanding 
                        investments by a banking entity under 
                        this paragraph, including retained 
                        earnings, shall be deducted from the 
                        assets and tangible equity of the 
                        banking entity, and the amount of the 
                        deduction shall increase commensurate 
                        with the leverage of the hedge fund or 
                        private equity fund.
                  [``(C) Extension.--Upon an application by a 
                banking entity, the Board may extend the period 
                of time to meet the requirements under 
                subparagraph (B)(ii)(I) for 2 additional years, 
                if the Board finds that an extension would be 
                consistent with safety and soundness and in the 
                public interest.
  [``(e) Anti-evasion.--
          [``(1) Rulemaking.--The appropriate Federal banking 
        agencies, the Securities and Exchange Commission, and 
        the Commodity Futures Trading Commission shall issue 
        regulations, as part of the rulemaking provided for in 
        subsection (b)(2), regarding internal controls and 
        recordkeeping, in order to insure compliance with this 
        section.
          [``(2) Termination of activities or investment.--
        Notwithstanding any other provision of law, whenever an 
        appropriate Federal banking agency, the Securities and 
        Exchange Commission, or the Commodity Futures Trading 
        Commission, as appropriate, has reasonable cause to 
        believe that a banking entity or nonbank financial 
        company supervised by the Board under the respective 
        agency's jurisdiction has made an investment or engaged 
        in an activity in a manner that functions as an evasion 
        of the requirements of this section (including through 
        an abuse of any permitted activity) or otherwise 
        violates the restrictions under this section, the 
        appropriate Federal banking agency, the Securities and 
        Exchange Commission, or the Commodity Futures Trading 
        Commission, as appropriate, shall order, after due 
        notice and opportunity for hearing, the banking entity 
        or nonbank financial company supervised by the Board to 
        terminate the activity and, as relevant, dispose of the 
        investment. Nothing in this paragraph shall be 
        construed to limit the inherent authority of any 
        Federal agency or State regulatory authority to further 
        restrict any investments or activities under otherwise 
        applicable provisions of law.
  [``(f) Limitations on Relationships With Hedge Funds and 
Private Equity Funds.--
          [``(1) In general.--No banking entity that serves, 
        directly or indirectly, as the investment manager, 
        investment adviser, or sponsor to a hedge fund or 
        private equity fund, or that organizes and offers a 
        hedge fund or private equity fund pursuant to paragraph 
        (d)(1)(G), and no affiliate of such entity, may enter 
        into a transaction with the fund, or with any other 
        hedge fund or private equity fund that is controlled by 
        such fund, that would be a covered transaction, as 
        defined in section 23A of the Federal Reserve Act (12 
        U.S.C. 371c), with the hedge fund or private equity 
        fund, as if such banking entity and the affiliate 
        thereof were a member bank and the hedge fund or 
        private equity fund were an affiliate thereof.
          [``(2) Treatment as member bank.--A banking entity 
        that serves, directly or indirectly, as the investment 
        manager, investment adviser, or sponsor to a hedge fund 
        or private equity fund, or that organizes and offers a 
        hedge fund or private equity fund pursuant to paragraph 
        (d)(1)(G), shall be subject to section 23B of the 
        Federal Reserve Act (12 U.S.C. 371c-1), as if such 
        banking entity were a member bank and such hedge fund 
        or private equity fund were an affiliate thereof.
          [``(3) Permitted services.--
                  [``(A) In general.--Notwithstanding paragraph 
                (1), the Board may permit a banking entity to 
                enter into any prime brokerage transaction with 
                any hedge fund or private equity fund in which 
                a hedge fund or private equity fund managed, 
                sponsored, or advised by such banking entity 
                has taken an equity, partnership, or other 
                ownership interest, if--
                          [``(i) the banking entity is in 
                        compliance with each of the limitations 
                        set forth in subsection (d)(1)(G) with 
                        regard to a hedge fund or private 
                        equity fund organized and offered by 
                        such banking entity;
                          [``(ii) the chief executive officer 
                        (or equivalent officer) of the banking 
                        entity certifies in writing annually 
                        (with a duty to update the 
                        certification if the information in the 
                        certification materially changes) that 
                        the conditions specified in subsection 
                        (d)(1)(g)(v) are satisfied; and
                          [``(iii) the Board has determined 
                        that such transaction is consistent 
                        with the safe and sound operation and 
                        condition of the banking entity.
                  [``(B) Treatment of prime brokerage 
                transactions.--For purposes of subparagraph 
                (A), a prime brokerage transaction described in 
                subparagraph (A) shall be subject to section 
                23B of the Federal Reserve Act (12 U.S.C. 371c-
                1) as if the counterparty were an affiliate of 
                the banking entity.
          [``(4) Application to nonbank financial companies 
        supervised by the board.--The appropriate Federal 
        banking agencies, the Securities and Exchange 
        Commission, and the Commodity Futures Trading 
        Commission shall adopt rules, as provided in subsection 
        (b)(2), imposing additional capital charges or other 
        restrictions for nonbank financial companies supervised 
        by the Board to address the risks to and conflicts of 
        interest of banking entities described in paragraphs 
        (1), (2), and (3) of this subsection.
  [``(g) Rules of construction.--
          [``(1) Limitation on contrary authority.--Except as 
        provided in this section, notwithstanding any other 
        provision of law, the prohibitions and restrictions 
        under this section shall apply to activities of a 
        banking entity or nonbank financial company supervised 
        by the Board, even if such activities are authorized 
        for a banking entity or nonbank financial company 
        supervised by the Board.
          [``(2) Sale or securitization of loans.--Nothing in 
        this section shall be construed to limit or restrict 
        the ability of a banking entity or nonbank financial 
        company supervised by the Board to sell or securitize 
        loans in a manner otherwise permitted by law.
          [``(3) Authority of federal agencies and state 
        regulatory authorities.--Nothing in this section shall 
        be construed to limit the inherent authority of any 
        Federal agency or State regulatory authority under 
        otherwise applicable provisions of law.
  [``(h) Definitions.--In this section, the following 
definitions shall apply:
          [``(1) Banking entity.--The term `banking entity' 
        means any insured depository institution (as defined in 
        section 3 of the Federal Deposit Insurance Act (12 
        U.S.C. 1813)), any company that controls an insured 
        depository institution, or that is treated as a bank 
        holding company for purposes of section 8 of the 
        International Banking Act of 1978, and any affiliate or 
        subsidiary of any such entity. For purposes of this 
        paragraph, the term `insured depository institution' 
        does not include an institution that functions solely 
        in a trust or fiduciary capacity, if--
                  [``(A) all or substantially all of the 
                deposits of such institution are in trust funds 
                and are received in a bona fide fiduciary 
                capacity;
                  [``(B) no deposits of such institution which 
                are insured by the Federal Deposit Insurance 
                Corporation are offered or marketed by or 
                through an affiliate of such institution;
                  [``(C) such institution does not accept 
                demand deposits or deposits that the depositor 
                may withdraw by check or similar means for 
                payment to third parties or others or make 
                commercial loans; and
                  [``(D) such institution does not--
                          [``(i) obtain payment or payment 
                        related services from any Federal 
                        Reserve bank, including any service 
                        referred to in section 11A of the 
                        Federal Reserve Act (12 U.S.C. 248a); 
                        or
                          [``(ii) exercise discount or 
                        borrowing privileges pursuant to 
                        section 19(b)(7) of the Federal Reserve 
                        Act (12 U.S.C. 461(b)(7)).
          [``(2) Hedge fund; private equity fund.--The terms 
        `hedge fund' and `private equity fund' mean an issuer 
        that would be an investment company, as defined in the 
        Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
        seq.), but for section 3(c)(1) or 3(c)(7) of that Act, 
        or such similar funds as the appropriate Federal 
        banking agencies, the Securities and Exchange 
        Commission, and the Commodity Futures Trading 
        Commission may, by rule, as provided in subsection 
        (b)(2), determine.
          [``(3) Nonbank financial company supervised by the 
        board.--The term `nonbank financial company supervised 
        by the Board' means a nonbank financial company 
        supervised by the Board of Governors, as defined in 
        section 102 of the Financial Stability Act of 2010.
          [``(4) Proprietary trading.--The term `proprietary 
        trading', when used with respect to a banking entity or 
        nonbank financial company supervised by the Board, 
        means engaging as a principal for the trading account 
        of the banking entity or nonbank financial company 
        supervised by the Board in any transaction to purchase 
        or sell, or otherwise acquire or dispose of, any 
        security, any derivative, any contract of sale of a 
        commodity for future delivery, any option on any such 
        security, derivative, or contract, or any other 
        security or financial instrument that the appropriate 
        Federal banking agencies, the Securities and Exchange 
        Commission, and the Commodity Futures Trading 
        Commission may, by rule as provided in subsection 
        (b)(2), determine.
          [``(5) Sponsor.--The term to `sponsor' a fund means--
                  [``(A) to serve as a general partner, 
                managing member, or trustee of a fund;
                  [``(B) in any manner to select or to control 
                (or to have employees, officers, or directors, 
                or agents who constitute) a majority of the 
                directors, trustees, or management of a fund; 
                or
                  [``(C) to share with a fund, for corporate, 
                marketing, promotional, or other purposes, the 
                same name or a variation of the same name.
          [``(6) Trading account.--The term `trading account' 
        means any account used for acquiring or taking 
        positions in the securities and instruments described 
        in paragraph (4) principally for the purpose of selling 
        in the near term (or otherwise with the intent to 
        resell in order to profit from short-term price 
        movements), and any such other accounts as the 
        appropriate Federal banking agencies, the Securities 
        and Exchange Commission, and the Commodity Futures 
        Trading Commission may, by rule as provided in 
        subsection (b)(2), determine.
          [``(7) Illiquid fund.--
                  [``(A) In general.--The term `illiquid fund' 
                means a hedge fund or private equity fund 
                that--
                          [``(i) as of May 1, 2010, was 
                        principally invested in, or was 
                        invested and contractually committed to 
                        principally invest in, illiquid assets, 
                        such as portfolio companies, real 
                        estate investments, and venture capital 
                        investments; and
                          [``(ii) makes all investments 
                        pursuant to, and consistent with, an 
                        investment strategy to principally 
                        invest in illiquid assets. In issuing 
                        rules regarding this subparagraph, the 
                        Board shall take into consideration the 
                        terms of investment for the hedge fund 
                        or private equity fund, including 
                        contractual obligations, the ability of 
                        the fund to divest of assets held by 
                        the fund, and any other factors that 
                        the Board determines are appropriate.
                  [``(B) Hedge fund.--For the purposes of this 
                paragraph, the term `hedge fund' means any fund 
                identified under subsection (h)(2), and does 
                not include a private equity fund, as such term 
                is used in section 203(m) of the Investment 
                Advisers Act of 1940 (15 U.S.C. 80b-3(m)).''.

[SEC. 620. STUDY OF BANK INVESTMENT ACTIVITIES

  [(a) Study.--
          [(1) In general.--Not later than 18 months after the 
        date of enactment of this Act, the appropriate Federal 
        banking agencies shall jointly review and prepare a 
        report on the activities that a banking entity, as such 
        term is defined in the Bank Holding Company Act of 1956 
        (12 U.S.C. 1841 et. seq.), may engage in under Federal 
        and State law, including activities authorized by 
        statute and by order, interpretation and guidance.
          [(2) Content.--In carrying out the study under 
        paragraph (1), the appropriate Federal banking agencies 
        shall review and consider--
                  [(A) the type of activities or investments;
                  [(B) any financial, operational, managerial, 
                or reputation risks associated with or 
                presented as a result of the banking entity 
                engaged in the activity or making the 
                investment; and
                  [(C) risk mitigation activities undertaken by 
                the banking entity with regard to the risks.
  [(b) Report and Recommendations to the Council and to 
Congress.--The appropriate Federal banking agencies shall 
submit to the Council, the Committee on Financial Services of 
the House of Representatives, and the Committee on Banking, 
Housing, and Urban Affairs of the Senate the study conducted 
pursuant to subsection (a) no later than 2 months after its 
completion. In addition to the information described in 
subsection (a), the report shall include recommendations 
regarding--
          [(1) whether each activity or investment has or could 
        have a negative effect on the safety and soundness of 
        the banking entity or the United States financial 
        system;
          [(2) the appropriateness of the conduct of each 
        activity or type of investment by banking entities; and
          [(3) additional restrictions as may be necessary to 
        address risks to safety and soundness arising from the 
        activities or types of investments described in 
        subsection (a).]

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

           *       *       *       *       *       *       *

  Subtitle D--Improvements to the Asset-Backed Securitization Process

SEC. 941. REGULATION OF CREDIT RISK RETENTION

  (a) Definition of Asset-backed Security.--Section 3(a) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended 
by adding at the end the following:
          ``(77) Asset-backed security.--The term `asset-backed 
        security'--
                  ``(A) means a fixed-income or other security 
                collateralized by any type of self-liquidating 
                financial asset (including a loan, a lease, a 
                mortgage, or a secured or unsecured receivable) 
                that allows the holder of the security to 
                receive payments that depend primarily on cash 
                flow from the asset, including--
                          ``(i) a collateralized mortgage 
                        obligation;
                          ``(ii) a collateralized debt 
                        obligation;
                          ``(iii) a collateralized bond 
                        obligation;
                          ``(iv) a collateralized debt 
                        obligation of asset-backed securities;
                          ``(v) a collateralized debt 
                        obligation of collateralized debt 
                        obligations; and
                          ``(vi) a security that the 
                        Commission, by rule, determines to be 
                        an asset-backed security for purposes 
                        of this section; and
                  ``(B) does not include a security issued by a 
                finance subsidiary held by the parent company 
                or a company controlled by the parent company, 
                if none of the securities issued by the finance 
                subsidiary are held by an entity that is not 
                controlled by the parent company.''.
  (b) Credit Risk Retention.--The Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) is amended by inserting after 
section 15F, as added by this Act, the following:

``SEC. 15G. CREDIT RISK RETENTION

  ``(a) Definitions.--In this section--
          ``(1) the term `Federal banking agencies' means the 
        Office of the Comptroller of the Currency, the Board of 
        Governors of the Federal Reserve System, and the 
        Federal Deposit Insurance Corporation;
          ``(2) the term `insured depository institution' has 
        the same meaning as in section 3(c) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(c));
          ``(3) the term `securitizer' means--
                  ``(A) an issuer of an asset-backed security; 
                or
                  ``(B) a person who organizes and initiates an 
                asset-backed securities transaction by selling 
                or transferring assets, either directly or 
                indirectly, including through an affiliate, to 
                the issuer; and
          ``(4) the term `originator' means a person who--
                  ``(A) through the extension of credit or 
                otherwise, creates a financial asset that 
                collateralizes an asset-backed security; and
                  ``(B) sells an asset directly or indirectly 
                to a securitizer.
  ``(b) Regulations required.--
          ``(1) In general.--Not later than 270 days after the 
        date of enactment of this section, the Federal banking 
        agencies and the Commission shall jointly prescribe 
        regulations to require any securitizer to retain an 
        economic interest in a portion of the credit risk for 
        any asset that the securitizer, through the issuance of 
        an asset-backed security, transfers, sells, or conveys 
        to a third party.
          ``(2) Residential mortgages.--Not later than 270 days 
        after the date of the enactment of this section, the 
        Federal banking agencies, the Commission, the Secretary 
        of Housing and Urban Development, and the Federal 
        Housing Finance Agency, shall jointly prescribe 
        regulations to require any securitizer to retain an 
        economic interest in a portion of the credit risk for 
        any residential mortgage asset that the securitizer, 
        through the issuance of an asset-backed security, 
        transfers, sells, or conveys to a third party.
  ``(c) Standards for Regulations.--
          ``(1) Standards.--The regulations prescribed under 
        subsection (b) shall--
                  ``(A) prohibit a securitizer from directly or 
                indirectly hedging or otherwise transferring 
                the credit risk that the securitizer is 
                required to retain with respect to an asset;
                  ``(B) require a securitizer to retain--
                          ``(i) not less than 5 percent of the 
                        credit risk for any asset--
                                  ``(I) that is not a qualified 
                                residential mortgage that is 
                                transferred, sold, or conveyed 
                                through the issuance of an 
                                asset-backed security by the 
                                securitizer; or
                                  ``(II) that is a qualified 
                                residential mortgage that is 
                                transferred, sold, or conveyed 
                                through the issuance of an 
                                asset-backed security by the 
                                securitizer, if 1 or more of 
                                the assets that collateralize 
                                the asset-backed security are 
                                not qualified residential 
                                mortgages; or
                          ``(ii) less than 5 percent of the 
                        credit risk for an asset that is not a 
                        qualified residential mortgage that is 
                        transferred, sold, or conveyed through 
                        the issuance of an asset-backed 
                        security by the securitizer, if the 
                        originator of the asset meets the 
                        underwriting standards prescribed under 
                        paragraph (2)(B);
                  ``(C) specify--
                          ``(i) the permissible forms of risk 
                        retention for purposes of this section;
                          ``(ii) the minimum duration of the 
                        risk retention required under this 
                        section; and
                          ``(iii) that a securitizer is not 
                        required to retain any part of the 
                        credit risk for an asset that is 
                        transferred, sold or conveyed through 
                        the issuance of an asset-backed 
                        security by the securitizer, if all of 
                        the assets that collateralize the 
                        asset-backed security are qualified 
                        residential mortgages;
                  ``(D) apply, regardless of whether the 
                securitizer is an insured depository 
                institution;
                  ``(E) with respect to a commercial mortgage, 
                specify the permissible types, forms, and 
                amounts of risk retention that would meet the 
                requirements of subparagraph (B), which in the 
                determination of the Federal banking agencies 
                and the Commission may include--
                          ``(i) retention of a specified amount 
                        or percentage of the total credit risk 
                        of the asset;
                          ``(ii) retention of the first-loss 
                        position by a third-party purchaser 
                        that specifically negotiates for the 
                        purchase of such first loss position, 
                        holds adequate financial resources to 
                        back losses, provides due diligence on 
                        all individual assets in the pool 
                        before the issuance of the asset-backed 
                        securities, and meets the same 
                        standards for risk retention as the 
                        Federal banking agencies and the 
                        Commission require of the securitizer;
                          ``(iii) a determination by the 
                        Federal banking agencies and the 
                        Commission that the underwriting 
                        standards and controls for the asset 
                        are adequate; and
                          ``(iv) provision of adequate 
                        representations and warranties and 
                        related enforcement mechanisms; and
                  ``(F) establish appropriate standards for 
                retention of an economic interest with respect 
                to collateralized debt obligations, securities 
                collateralized by collateralized debt 
                obligations, and similar instruments 
                collateralized by other asset-backed 
                securities; and
                  ``(G) provide for--
                          ``(i) a total or partial exemption of 
                        any securitization, as may be 
                        appropriate in the public interest and 
                        for the protection of investors;
                          ``(ii) a total or partial exemption 
                        for the securitization of an asset 
                        issued or guaranteed by the United 
                        States, or an agency of the United 
                        States, as the Federal banking agencies 
                        and the Commission jointly determine 
                        appropriate in the public interest and 
                        for the protection of investors, except 
                        that, for purposes of this clause, the 
                        Federal National Mortgage Association 
                        and the Federal Home Loan Mortgage 
                        Corporation are not agencies of the 
                        United States;
                          ``(iii) a total or partial exemption 
                        for any asset-backed security that is a 
                        security issued or guaranteed by any 
                        State of the United States, or by any 
                        political subdivision of a State or 
                        territory, or by any public 
                        instrumentality of a State or territory 
                        that is exempt from the registration 
                        requirements of the Securities Act of 
                        1933 by reason of section 3(a)(2) of 
                        that Act (15 U.S.C. 77c(a)(2)), or a 
                        security defined as a qualified 
                        scholarship funding bond in section 
                        150(d)(2) of the Internal Revenue Code 
                        of 1986, as may be appropriate in the 
                        public interest and for the protection 
                        of investors; and
                          ``(iv) the allocation of risk 
                        retention obligations between a 
                        securitizer and an originator in the 
                        case of a securitizer that purchases 
                        assets from an originator, as the 
                        Federal banking agencies and the 
                        Commission jointly determine 
                        appropriate.
          ``(2) Asset classes.--
                  ``(A) Asset classes.--The regulations 
                prescribed under subsection (b) shall establish 
                asset classes with separate rules for 
                securitizers of different classes of assets, 
                including residential mortgages, commercial 
                mortgages, commercial loans, auto loans, and 
                any other class of assets that the Federal 
                banking agencies and the Commission deem 
                appropriate.
                  ``(B) Contents.--For each asset class 
                established under subparagraph (A), the 
                regulations prescribed under subsection (b) 
                shall include underwriting standards 
                established by the Federal banking agencies 
                that specify the terms, conditions, and 
                characteristics of a loan within the asset 
                class that indicate a low credit risk with 
                respect to the loan.
  ``(d) Originators.--In determining how to allocate risk 
retention obligations between a securitizer and an originator 
under subsection (c)(1)(E)(iv), the Federal banking agencies 
and the Commission shall--
          ``(1) reduce the percentage of risk retention 
        obligations required of the securitizer by the 
        percentage of risk retention obligations required of 
        the originator; and
          ``(2) consider--
                  ``(A) whether the assets sold to the 
                securitizer have terms, conditions, and 
                characteristics that reflect low credit risk;
                  ``(B) whether the form or volume of 
                transactions in securitization markets creates 
                incentives for imprudent origination of the 
                type of loan or asset to be sold to the 
                securitizer; and
                  ``(C) the potential impact of the risk 
                retention obligations on the access of 
                consumers and businesses to credit on 
                reasonable terms, which may not include the 
                transfer of credit risk to a third party.
  ``(e) Exemptions, Exceptions, and Adjustments.--
          ``(1) In general.--The Federal banking agencies and 
        the Commission may jointly adopt or issue exemptions, 
        exceptions, or adjustments to the rules issued under 
        this section, including exemptions, exceptions, or 
        adjustments for classes of institutions or assets 
        relating to the risk retention requirement and the 
        prohibition on hedging under subsection (c)(1).
          ``(2) Applicable standards.--Any exemption, 
        exception, or adjustment adopted or issued by the 
        Federal banking agencies and the Commission under this 
        paragraph shall--
                  ``(A) help ensure high quality underwriting 
                standards for the securitizers and originators 
                of assets that are securitized or available for 
                securitization; and
                  ``(B) encourage appropriate risk management 
                practices by the securitizers and originators 
                of assets, improve the access of consumers and 
                businesses to credit on reasonable terms, or 
                otherwise be in the public interest and for the 
                protection of investors.
          ``(3) Certain institutions and programs exempt.--
                  ``(A) Farm credit system institutions.--
                Notwithstanding any other provision of this 
                section, the requirements of this section shall 
                not apply to any loan or other financial asset 
                made, insured, guaranteed, or purchased by any 
                institution that is subject to the supervision 
                of the Farm Credit Administration, including 
                the Federal Agricultural Mortgage Corporation.
                  ``(B) Other federal programs.--This section 
                shall not apply to any residential, 
                multifamily, or health care facility mortgage 
                loan asset, or securitization based directly or 
                indirectly on such an asset, which is insured 
                or guaranteed by the United States or an agency 
                of the United States. For purposes of this 
                subsection, the Federal National Mortgage 
                Association, the Federal Home Loan Mortgage 
                Corporation, and the Federal home loan banks 
                shall not be considered an agency of the United 
                States.
          ``(4) Exemption for qualified residential 
        mortgages.--
                  ``(A) In general.--The Federal banking 
                agencies, the Commission, the Secretary of 
                Housing and Urban Development, and the Director 
                of the Federal Housing Finance Agency shall 
                jointly issue regulations to exempt qualified 
                residential mortgages from the risk retention 
                requirements of this subsection.
                  ``(B) Qualified residential mortgage.--The 
                Federal banking agencies, the Commission, the 
                Secretary of Housing and Urban Development, and 
                the Director of the Federal Housing Finance 
                Agency shall jointly define the term `qualified 
                residential mortgage' for purposes of this 
                subsection, taking into consideration 
                underwriting and product features that 
                historical loan performance data indicate 
                result in a lower risk of default, such as--
                          ``(i) documentation and verification 
                        of the financial resources relied upon 
                        to qualify the mortgagor;
                          ``(ii) standards with respect to--
                                  ``(I) the residual income of 
                                the mortgagor after all monthly 
                                obligations;
                                  ``(II) the ratio of the 
                                housing payments of the 
                                mortgagor to the monthly income 
                                of the mortgagor;
                                  ``(III) the ratio of total 
                                monthly installment payments of 
                                the mortgagor to the income of 
                                the mortgagor;
                          ``(iii) mitigating the potential for 
                        payment shock on adjustable rate 
                        mortgages through product features and 
                        underwriting standards;
                          ``(iv) mortgage guarantee insurance 
                        or other types of insurance or credit 
                        enhancement obtained at the time of 
                        origination, to the extent such 
                        insurance or credit enhancement reduces 
                        the risk of default; and
                          ``(v) prohibiting or restricting the 
                        use of balloon payments, negative 
                        amortization, prepayment penalties, 
                        interest-only payments, and other 
                        features that have been demonstrated to 
                        exhibit a higher risk of borrower 
                        default.
                  ``(C) Limitation on definition.--The Federal 
                banking agencies, the Commission, the Secretary 
                of Housing and Urban Development, and the 
                Director of the Federal Housing Finance Agency 
                in defining the term `qualified residential 
                mortgage', as required by subparagraph (B), 
                shall define that term to be no broader than 
                the definition `qualified mortgage' as the term 
                is defined under section 129C(c)(2) of the 
                Truth in Lending Act, as amended by the 
                Consumer Financial Protection Act of 2010, and 
                regulations adopted thereunder.
          ``(5) Condition for qualified residential mortgage 
        exemption.--The regulations issued under paragraph (4) 
        shall provide that an asset-backed security that is 
        collateralized by tranches of other asset-backed 
        securities shall not be exempt from the risk retention 
        requirements of this subsection.
          ``(6) Certification.--The Commission shall require an 
        issuer to certify, for each issuance of an asset-backed 
        security collateralized exclusively by qualified 
        residential mortgages, that the issuer has evaluated 
        the effectiveness of the internal supervisory controls 
        of the issuer with respect to the process for ensuring 
        that all assets that collateralize the asset-backed 
        security are qualified residential mortgages.
  ``(f) Enforcement.--The regulations issued under this section 
shall be enforced by--
          ``(1) the appropriate Federal banking agency, with 
        respect to any securitizer that is an insured 
        depository institution; and
          ``(2) the Commission, with respect to any securitizer 
        that is not an insured depository institution.
  ``(g) Authority of commission.--The authority of the 
Commission under this section shall be in addition to the 
authority of the Commission to otherwise enforce the securities 
laws.
  ``(h) Authority to Coordinate on Rulemaking.--The Chairperson 
of the Financial Stability Oversight Council shall coordinate 
all joint rulemaking required under this section.
  ``(i) Effective Date of Regulations.--The regulations issued 
under this section shall become effective--
          ``(1) with respect to securitizers and originators of 
        asset-backed securities backed by residential 
        mortgages, 1 year after the date on which final rules 
        under this section are published in the Federal 
        Register; and
          ``(2) with respect to securitizers and originators of 
        all other classes of asset-backed securities, 2 years 
        after the date on which final rules under this section 
        are published in the Federal Register.''.
  [(c) Study on Risk Retention.--
          [(1) Study.--The Board of Governors of the Federal 
        Reserve System, in coordination and consultation with 
        the Comptroller of the Currency, the Director of the 
        Office of Thrift Supervision, the Chairperson of the 
        Federal Deposit Insurance Corporation, and the 
        Securities and Exchange Commission shall conduct a 
        study of the combined impact on each individual class 
        of asset-backed security established under section 
        15G(c)(2) of the Securities Exchange Act of 1934, as 
        added by subsection (b), of--
                  [(A) the new credit risk retention 
                requirements contained in the amendment made by 
                subsection (b), including the effect credit 
                risk retention requirements have on increasing 
                the market for Federally subsidized loans; and
                  [(B) the Financial Accounting Statements 166 
                and 167 issued by the Financial Accounting 
                Standards Board.
          [(2) Report.--Not later than 90 days after the date 
        of enactment of this Act, the Board of Governors of the 
        Federal Reserve System shall submit to Congress a 
        report on the study conducted under paragraph (1). Such 
        report shall include statutory and regulatory 
        recommendations for eliminating any negative impacts on 
        the continued viability of the asset-backed 
        securitization markets and on the availability of 
        credit for new lending identified by the study 
        conducted under paragraph (1).]

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FEDERAL DEPOSIT INSURANCE ACT

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  Sec. 10. [(a) The] (a)  Powers._
          (1) In general._The Board of Directors shall 
        administer the affairs of the Corporation fairly and 
        impartially and without discrimination. The Board of 
        Directors of the Corporation, subject to paragraph (2), 
        shall determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed 
        and paid. The Corporation shall be entitled to the free 
        use of the United States mails in the same manner as 
        the executive departments of the Government. The 
        Corporation with the consent of any Federal Reserve 
        bank or of any board, commission, independent 
        establishment, or executive department of the 
        Government, including any field service thereof, may 
        avail itself of the use of information, services, and 
        facilities thereof in carrying out the provisions of 
        this Act.
          (2) Appropriations requirement.--Except as provided 
        under paragraph (3), the Corporation may, only to the 
        extent as provided in advance by appropriations Acts, 
        cover the costs incurred in carrying out the provisions 
        of this Act, including with respect to the 
        administrative costs of the Corporation and the costs 
        of the examination and supervision of insured 
        depository institutions.
          (3) Exception for certain programs.--Paragraph (2) 
        shall not apply to the Corporation's Insurance Business 
        Line Programs and Receivership Management Business Line 
        Programs, as in existence on the date of enactment of 
        this paragraph, and the proportion of the 
        administrative costs of the Corporation related to such 
        programs.
  (b) Examinations.--
          (1) Appointment of examiners and claims agents.--The 
        Board of Directors shall appoint examiners and claims 
        agents.
          (2) Regular examinations.--Any examiner appointed 
        under paragraph (1) shall have power, on behalf of the 
        Corporation, to examine--
                  (A) any insured State nonmember bank or 
                insured State branch of any foreign bank;
                  (B) any depository institution which files an 
                application with the Corporation to become an 
                insured depository institution; and
                  (C) any insured depository institution in 
                default,
        whenever the Board of Directors determines an 
        examination of any such depository institution is 
        necessary.
          (3) Special examination of any insured depository 
        institution.--
                  (A) In general.--In addition to the 
                examinations authorized under paragraph (2), 
                any examiner appointed under paragraph (1) 
                shall have power, on behalf of the Corporation, 
                to make any special examination of any insured 
                depository institution or nonbank financial 
                company supervised by the Board of Governors or 
                a bank holding company described in section 
                165(a) of the Financial Stability Act of 2010, 
                whenever the Board of Directors determines that 
                a special examination of any such depository 
                institution is necessary to determine the 
                condition of such depository institution for 
                insurance purposes, or of such nonbank 
                financial company supervised by the Board of 
                Governors or bank holding company described in 
                section 165(a) of the Financial Stability Act 
                of 2010, for the purpose of implementing its 
                authority to provide for orderly liquidation of 
                any such company under title II of that Act, 
                provided that such authority may not be used 
                with respect to any such company that is in a 
                generally sound condition.
                  (B) Limitation.--Before conducting a special 
                examination of a nonbank financial company 
                supervised by the Board of Governors or a bank 
                holding company described in section 165(a) of 
                the Financial Stability Act of 2010, the 
                Corporation shall review any available and 
                acceptable resolution plan that the company has 
                submitted in accordance with section 165(d) of 
                that Act, consistent with the nonbinding effect 
                of such plan, and available reports of 
                examination, and shall coordinate to the 
                maximum extent practicable with the Board of 
                Governors, in order to minimize duplicative or 
                conflicting examinations.
          (4) Examination of affiliates.--
                  (A) In general.--In making any examination 
                under paragraph (2) or (3), any examiner 
                appointed under paragraph (1) shall have power, 
                on behalf of the Corporation, to make such 
                examinations of the affairs of any affiliate of 
                any depository institution as may be necessary 
                to disclose fully--
                          (i) the relationship between such 
                        depository institution and any such 
                        affiliate; and
                          (ii) the effect of such relationship 
                        on the depository institution.
                  (B) Commitment by foreign banks to allow 
                examinations of affiliates.--No branch or 
                depository institution subsidiary of a foreign 
                bank may become an insured depository 
                institution unless such foreign bank submits a 
                written binding commitment to the Board of 
                Directors to permit any examination of any 
                affiliate of such branch or depository 
                institution subsidiary pursuant to subparagraph 
                (A) to the extent determined by the Board of 
                Directors to be necessary to carry out the 
                purposes of this Act.
          (5) Examination of insured state branches.--The Board 
        of Directors shall--
                  (A) coordinate examinations of insured State 
                branches of foreign banks with examinations 
                conducted by the Board of Governors of the 
                Federal Reserve System under section 7(c)(1) of 
                the International Banking Act of 1978; and
                  (B) to the extent possible, participate in 
                any simultaneous examination of the United 
                States operations of a foreign bank requested 
                by the Board under such section.
          (6) Power and duty of examiners.--Each examiner 
        appointed under paragraph (1) shall--
                  (A) have power to make a thorough examination 
                of any insured depository institution or 
                affiliate under paragraph (2), (3), (4), or 
                (5); and
                  (B) shall make a full and detailed report of 
                condition of any insured depository institution 
                or affiliate examined to the Corporation.
          (7) Power of claim agents.--Each claim agent 
        appointed under paragraph (1) shall have power to 
        investigate and examine all claims for insured 
        deposits.
  (c) In connection with examinations of insured depository 
institutions and any State nonmember bank, savings association, 
or other institution making application to become insured 
depository institutions, and affiliates thereof, or with other 
types of investigations to determine compliance with applicable 
law and regulations, the appropriate Federal banking agency, or 
its designated representatives, are authorized to administer 
oaths and affirmations, and to examine and and to take and 
preserve testimony under oath as to any matter in respect to 
the affairs or ownership of any such bank or institution or 
affiliate thereof, and to exercise such other powers as are set 
forth in section 8(n) of this Act.
  (d) Annual On-Site Examinations of All Insured Depository 
Institutions Required.--
          (1) In general.--The appropriate Federal banking 
        agency shall, not less than once during each 12-month 
        period, conduct a full-scope, on-site examination of 
        each insured depository institution.
          (2) Examinations by corporation.--Paragraph (1) shall 
        not apply during any 12-month period in which the 
        Corporation has conducted a full-scope, on-site 
        examination of the insured depository institution.
          (3) State examinations acceptable.--The examinations 
        required by paragraph (1) may be conducted in alternate 
        12-month periods, as appropriate, if the appropriate 
        Federal banking agency determines that an examination 
        of the insured depository institution conducted by the 
        State during the intervening 12-month period carries 
        out the purpose of this subsection.
          (4)  18-month rule for certain small institutions.--
        Paragraphs (1), (2), and (3) shall apply with ``18-
        month'' substituted for ``12-month'' if--
                  (A) the insured depository institution has 
                total assets of less than $1,000,000,000;
                  (B) the institution is well capitalized, as 
                defined in section 38;
                  (C) when the institution was most recently 
                examined, it was found to be well managed, and 
                its composite condition--
                          (i) was found to be outstanding; or
                          (ii) was found to be outstanding or 
                        good, in the case of an insured 
                        depository institution that has total 
                        assets of not more than $200,000,000;
                  (D) the insured institution is not currently 
                subject to a formal enforcement proceeding or 
                order by the Corporation or the appropriate 
                Federal banking agency; and
                  (E) no person acquired control of the 
                institution during the 12-month period in which 
                a full-scope, on-site examination would be 
                required but for this paragraph.
          (5) Certain government-controlled institutions 
        exempted.--Paragraph (1) does not apply to--
                  (A) any institution for which the Corporation 
                is conservator; or
                  (B) any bridge depository institution, none 
                of the voting securities of which are owned by 
                a person or agency other than the Corporation.
          (6) Coordinated examinations.--To minimize the 
        disruptive effects of examinations on the operations of 
        insured depository institutions--
                  (A) each appropriate Federal banking agency 
                shall, to the extent practicable and consistent 
                with principles of safety and soundness and the 
                public interest--
                          (i) coordinate examinations to be 
                        conducted by that agency at an insured 
                        depository institution and its 
                        affiliates;
                          (ii) coordinate with the other 
                        appropriate Federal banking agencies in 
                        the conduct of such examinations;
                          (iii) work to coordinate with the 
                        appropriate State bank supervisor--
                                  (I) the conduct of all 
                                examinations made pursuant to 
                                this subsection; and
                                  (II) the number, types, and 
                                frequency of reports required 
                                to be submitted to such 
                                agencies and supervisors by 
                                insured depository 
                                institutions, and the type and 
                                amount of information required 
                                to be included in such reports; 
                                and
                          (iv) use copies of reports of 
                        examinations of insured depository 
                        institutions made by any other Federal 
                        banking agency or appropriate State 
                        bank supervisor to eliminate 
                        duplicative requests for information; 
                        and
                  (B) not later than 2 years after the date of 
                enactment of the Riegle Community Development 
                and Regulatory Improvement Act of 1994, the 
                Federal banking agencies shall jointly 
                establish and implement a system for 
                determining which one of the Federal banking 
                agencies or State bank supervisors shall be the 
                lead agency responsible for managing a unified 
                examination of each insured depository 
                institution and its affiliates, as required by 
                this subsection.
          (7) Separate examinations permitted.--Notwithstanding 
        paragraph (6), each appropriate Federal banking agency 
        may conduct a separate examination in an emergency or 
        under other exigent circumstances, or when the agency 
        believes that a violation of law may have occurred.
          (8) Report.--At the time the system provided for in 
        paragraph (6) is established, the Federal banking 
        agencies shall submit a joint report describing the 
        system to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Banking, 
        Finance and Urban Affairs of the House of 
        Representatives. Thereafter, the Federal banking 
        agencies shall annually submit a joint report to the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Banking, Finance and Urban 
        Affairs of the House of Representatives regarding the 
        progress of the agencies in implementing the system and 
        indicating areas in which enhancements to the system, 
        including legislature improvements, would be 
        appropriate.
          (9) Standards for determining adequacy of state 
        examinations.--The Federal Financial Institutions 
        Examination Council shall issue guidelines establishing 
        standards to be used at the discretion of the 
        appropriate Federal banking agency for purposes of 
        making a determination under paragraph (3).
          (10) Agencies authorized to increase maximum asset 
        amount of institutions for certain purposes.--At any 
        time after the end of the 2-year period beginning on 
        the date of enactment of the Riegle Community 
        Development and Regulatory Improvement Act of 1994, the 
        appropriate Federal banking agency, in the agency's 
        discretion, may increase the maximum amount limitation 
        contained in paragraph (4)(C)(ii), by regulation, from 
        $200,000,000 to an amount not to exceed $1,000,000,000 
        for purposes of such paragraph, if the agency 
        determines that the greater amount would be consistent 
        with the principles of safety and soundness for insured 
        depository institutions.
  (e) Examination Fees.--
          (1) Regular and special examinations of depository 
        institutions.--The cost of conducting any regular 
        examination or special examination of any depository 
        institution under subsection (b)(2), (b)(3), or (d) or 
        of any entity described in section 3(q)(2) may be 
        assessed by the Corporation against the institution or 
        entity [to meet the expenses of the Corporation in 
        carrying out such examinations] and may be expended by 
        the Board only to the extent as provided in advance by 
        appropriations Acts to cover the costs incurred in 
        carrying out such examinations.
          (2) Examination of affiliates.--The cost of 
        conducting any examination of any affiliate of any 
        insured depository institution under subsection (b)(4) 
        may be assessed by the Corporation against each 
        affiliate which is examined to meet the Corporation's 
        expenses in carrying out such examination.
          (3) Assessment against depository institution in case 
        of affiliate's refusal to pay.--
                  (A) In general.--Subject to subparagraph (B), 
                if any affiliate of any insured depository 
                institution--
                          (i) refuses to pay any assessment 
                        under paragraph (2); or
                          (ii) fails to pay any such assessment 
                        before the end of the 60-day period 
                        beginning on the date the affiliate 
                        receives notice of the assessment,
                the Corporation may assess such cost against, 
                and collect such cost from, the depository 
                institution.
                  (B) Affiliate of more than 1 depository 
                institution.--If any affiliate referred to in 
                subparagraph (A) is an affiliate of more than 1 
                insured depository institution, the assessment 
                under subparagraph (A) may be assessed against 
                the depository institutions in such proportions 
                as the Corporation determines to be 
                appropriate.
          (4) Civil money penalty for affiliate's refusal to 
        cooperate.--
                  (A) Penalty imposed.--If any affiliate of any 
                insured depository institution--
                          (i) refuses to permit an examiner 
                        appointed by the Board of Directors 
                        under subsection (b)(1) to conduct an 
                        examination; or
                          (ii) refuses to provide any 
                        information required to be disclosed in 
                        the course of any examination,
                the depository institution shall forfeit and 
                pay a penalty of not more than $5,000 for each 
                day that any such refusal continues.
                  (B) Assessment and collection.--Any penalty 
                imposed under subparagraph (A) shall be 
                assessed and collected by the Corporation in 
                the manner provided in section 8(i)(2).
          (5) Deposits of examination assessment.--Amounts 
        received by the Corporation under this subsection 
        (other than paragraph (4)) may be deposited in the 
        manner provided in section 13.
  (f) Preservation of Agency Records.--
          (1) In general.--A Federal banking agency may cause 
        any and all records, papers, or documents kept by the 
        agency or in the possession or custody of the agency to 
        be--
                  (A) photographed or microphotographed or 
                otherwise reproduced upon film; or
                  (B) preserved in any electronic medium or 
                format which is capable of--
                          (i) being read or scanned by 
                        computer; and
                          (ii) being reproduced from such 
                        electronic medium or format by printing 
                        any other form of reproduction of 
                        electronically stored data.
          (2) Treatment as original records.--Any photographs, 
        microphotographs, or photographic film or copies 
        thereof described in paragraph (1)(A) or reproduction 
        of electronically stored data described in paragraph 
        (1)(B) shall be deemed to be an original record for all 
        purposes, including introduction in evidence in all 
        State and Federal courts or administrative agencies, 
        and shall be admissible to prove any act, transaction, 
        occurrence, or event therein recorded.
          (3) Authority of the federal banking agencies.--Any 
        photographs, microphotographs, or photographic film or 
        copies thereof described in paragraph (1)(A) or 
        reproduction of electronically stored data described in 
        paragraph (1)(B) shall be preserved in such manner as 
        the Federal banking agency shall prescribe, and the 
        original records, papers, or documents may be destroyed 
        or otherwise disposed of as the Federal banking agency 
        may direct.
  (g) Authority To Prescribe Regulations and Definitions.--
Except to the extent that authority under this Act is conferred 
on any of the Federal banking agencies other than the 
Corporation, the Corporation may--
          (1) prescribe regulations to carry out this Act; and
          (2) by regulation define terms as necessary to carry 
        out this Act.
  (h) Coordination of Examination Authority.--
          (1) State bank supervisors of home and host states.--
                  (A) Home state of bank.--The appropriate 
                State bank supervisor of the home State of an 
                insured State bank has authority to examine and 
                supervise the bank.
                  (B) Host state branches.--The State bank 
                supervisor of the home State of an insured 
                State bank and any State bank supervisor of an 
                appropriate host State shall exercise its 
                respective authority to supervise and examine 
                the branches of the bank in a host State in 
                accordance with the terms of any applicable 
                cooperative agreement between the home State 
                bank supervisor and the State bank supervisor 
                of the relevant host State.
                  (C) Supervisory fees.--Except as expressly 
                provided in a cooperative agreement between the 
                State bank supervisors of the home State and 
                any host State of an insured State bank, only 
                the State bank supervisor of the home State of 
                an insured State bank may levy or charge State 
                supervisory fees on the bank.
          (2) Host state examination.--
                  (A) In general.--With respect to a branch 
                operated in a host State by an out-of-State 
                insured State bank that resulted from an 
                interstate merger transaction approved under 
                section 44, or that was established in such 
                State pursuant to section 5155(g) of the 
                Revised Statutes of the United States, the 
                third undesignated paragraph of section 9 of 
                the Federal Reserve Act or section 18(d)(4) of 
                this Act, the appropriate State bank supervisor 
                of such host State may--
                          (i) with written notice to the State 
                        bank supervisor of the bank's home 
                        State and subject to the terms of any 
                        applicable cooperative agreement with 
                        the State bank supervisor of such home 
                        State, examine such branch for the 
                        purpose of determining compliance with 
                        host State laws that are applicable 
                        pursuant to section 24(j), including 
                        those that govern community 
                        reinvestment, fair lending, and 
                        consumer protection; and
                          (ii) if expressly permitted under and 
                        subject to the terms of a cooperative 
                        agreement with the State bank 
                        supervisor of the bank's home State or 
                        if such out-of-State insured State bank 
                        has been determined to be in a troubled 
                        condition by either the State bank 
                        supervisor of the bank's home State or 
                        the bank's appropriate Federal banking 
                        agency, participate in the examination 
                        of the bank by the State bank 
                        supervisor of the bank's home State to 
                        ascertain that the activities of the 
                        branch in such host State are not 
                        conducted in an unsafe or unsound 
                        manner.
                  (B) Notice of determination.--
                          (i) In general.--The State bank 
                        supervisor of the home State of an 
                        insured State bank shall notify the 
                        State bank supervisor of each host 
                        State of the bank if there has been a 
                        final determination that the bank is in 
                        a troubled condition.
                          (ii) Timing of notice.--The State 
                        bank supervisor of the home State of an 
                        insured State bank shall provide notice 
                        under clause (i) as soon as is 
                        reasonably possible, but in all cases 
                        not later than 15 business days after 
                        the date on which the State bank 
                        supervisor has made such final 
                        determination or has received written 
                        notification of such final 
                        determination.
          (3) Host state enforcement.--If the State bank 
        supervisor of a host State determines that a branch of 
        an out-of-State insured State bank is violating any law 
        of the host State that is applicable to such branch 
        pursuant to section 24(j), including a law that governs 
        community reinvestment, fair lending, or consumer 
        protection, the State bank supervisor of the host State 
        or, to the extent authorized by the law of the host 
        State, a host State law enforcement officer may, with 
        written notice to the State bank supervisor of the 
        bank's home State and subject to the terms of any 
        applicable cooperative agreement with the State bank 
        supervisor of the bank's home State, undertake such 
        enforcement actions and proceedings as would be 
        permitted under the law of the host State as if the 
        branch were a bank chartered by that host State.
          (4) Cooperative agreement.--
                  (A) In general.--The State bank supervisors 
                from 2 or more States may enter into 
                cooperative agreements to facilitate State 
                regulatory supervision of State banks, 
                including cooperative agreements relating to 
                the coordination of examinations and joint 
                participation in examinations.
                  (B) Definition.--For purposes of this 
                subsection, the term ``cooperative agreement'' 
                means a written agreement that is signed by the 
                home State bank supervisor and the host State 
                bank supervisor to facilitate State regulatory 
                supervision of State banks, and includes 
                nationwide or multi-State cooperative 
                agreements and cooperative agreements solely 
                between the home State and host State.
                  (C) Rule of construction.--Except for State 
                bank supervisors, no provision of this 
                subsection relating to such cooperative 
                agreements shall be construed as limiting in 
                any way the authority of home State and host 
                State law enforcement officers, regulatory 
                supervisors, or other officials that have not 
                signed such cooperative agreements to enforce 
                host State laws that are applicable to a branch 
                of an out-of-State insured State bank located 
                in the host State pursuant to section 24(j).
          (5) Federal regulatory authority.--No provision of 
        this subsection shall be construed as limiting in any 
        way the authority of any Federal banking agency.
          (6) State taxation authority not affected.--No 
        provision of this subsection shall be construed as 
        affecting the authority of any State or political 
        subdivision of any State to adopt, apply, or administer 
        any tax or method of taxation to any bank, bank holding 
        company, or foreign bank, or any affiliate of any bank, 
        bank holding company, or foreign bank, to the extent 
        that such tax or tax method is otherwise permissible by 
        or under the Constitution of the United States or other 
        Federal law.
          (7) Definitions.--For purpose of this section, the 
        following definitions shall apply:
                  (A) Host state, home state, out-of-State 
                bank.--The terms ``host State'', ``home 
                State'', and ``out-of-State bank'' have the 
                same meanings as in section 44(g).
                  (B) State supervisory fees.--The term ``State 
                supervisory fees'' means assessments, 
                examination fees, branch fees, license fees, 
                and all other fees that are levied or charged 
                by a State bank supervisor directly upon an 
                insured State bank or upon branches of an 
                insured State bank.
                  (C) Troubled condition.--Solely for purposes 
                of paragraph (2)(B), an insured State bank has 
                been determined to be in ``troubled condition'' 
                if the bank--
                          (i) has a composite rating, as 
                        determined in its most recent report of 
                        examination, of 4 or 5 under the 
                        Uniform Financial Institutions Ratings 
                        System;
                          (ii) is subject to a proceeding 
                        initiated by the Corporation for 
                        termination or suspension of deposit 
                        insurance; or
                          (iii) is subject to a proceeding 
                        initiated by the State bank supervisor 
                        of the bank's home State to vacate, 
                        revoke, or terminate the charter of the 
                        bank, or to liquidate the bank, or to 
                        appoint a receiver for the bank.
                  (D) Final determination.--For purposes of 
                paragraph (2)(B), the term ``final 
                determination'' means the transmittal of a 
                report of examination to the bank or 
                transmittal of official notice of proceedings 
                to the bank.
  (i) Flood Insurance Compliance by Insured Depository 
Institutions.--
          (1) Examinations.--The appropriate Federal banking 
        agency shall, during each scheduled on-site examination 
        required by this section, determine whether the insured 
        depository institution is complying with the 
        requirements of the national flood insurance program.
          (2) Report.--
                  (A) Requirement.--Not later than 1 year after 
                the date of enactment of the Riegle Community 
                Development and Regulatory Improvement Act of 
                1994 and biennially thereafter for the next 4 
                years, each appropriate Federal banking agency 
                shall submit a report to the Congress on 
                compliance by insured depository institutions 
                with the requirements of the national flood 
                insurance program.
                  (B) Contents.--Each report submitted under 
                this paragraph shall include a description of 
                the methods used to determine compliance, the 
                number of institutions examined during the 
                reporting year, a listing and total number of 
                institutions found not to be in compliance, 
                actions taken to correct incidents of 
                noncompliance, and an analysis of compliance, 
                including a discussion of any trends, patterns, 
                and problems, and recommendations regarding 
                reasonable actions to improve the efficiency of 
                the examinations processes.
  (j) Consultation Among Examiners.--
          (1) In general.--Each appropriate Federal banking 
        agency shall take such action as may be necessary to 
        ensure that examiners employed by the agency--
                  (A) consult on examination activities with 
                respect to any depository institution; and
                  (B) achieve an agreement and resolve any 
                inconsistencies in the recommendations to be 
                given to such institution as a consequence of 
                any examinations.
          (2) Examiner-in-charge.--Each appropriate Federal 
        banking agency shall consider appointing an examiner-
        in-charge with respect to a depository institution to 
        ensure consultation on examination activities among all 
        of the examiners of that agency involved in 
        examinations of the institution.
  (k) One-Year Restrictions on Federal Examiners of Financial 
Institutions.--
          (1) In general.--In addition to other applicable 
        restrictions set forth in title 18, United States Code, 
        the penalties set forth in paragraph (6) of this 
        subsection shall apply to any person who--
                  (A) was an officer or employee (including any 
                special Government employee) of a Federal 
                banking agency or a Federal reserve bank;
                  (B) served 2 or more months during the final 
                12 months of his or her employment with such 
                agency or entity as the senior examiner (or a 
                functionally equivalent position) of a 
                depository institution or depository 
                institution holding company with continuing, 
                broad responsibility for the examination (or 
                inspection) of that depository institution or 
                depository institution holding company on 
                behalf of the relevant agency or Federal 
                reserve bank; and
                  (C) within 1 year after the termination date 
                of his or her service or employment with such 
                agency or entity, knowingly accepts 
                compensation as an employee, officer, director, 
                or consultant from--
                          (i) such depository institution, any 
                        depository institution holding company 
                        that controls such depository 
                        institution, or any other company that 
                        controls such depository institution; 
                        or
                          (ii) such depository institution 
                        holding company or any depository 
                        institution that is controlled by such 
                        depository institution holding company.
          (2) Definitions.--For purposes of this subsection--
                  (A) the term ``depository institution'' 
                includes an uninsured branch or agency of a 
                foreign bank, if such branch or agency is 
                located in any State; and
                  (B) the term ``depository institution holding 
                company'' includes any foreign bank or company 
                described in section 8(a) of the International 
                Banking Act of 1978.
          (3) Rules of construction.--For purposes of this 
        subsection, a foreign bank shall be deemed to control 
        any branch or agency of the foreign bank, and a person 
        shall be deemed to act as a consultant for a depository 
        institution, depository institution holding company, or 
        other company, only if such person directly works on 
        matters for, or on behalf of, such depository 
        institution, depository institution holding company, or 
        other company.
          (4) Regulations.--
                  (A) In general.--Each Federal banking agency 
                shall prescribe rules or regulations to 
                administer and carry out this subsection, 
                including rules, regulations, or guidelines to 
                define the scope of persons referred to in 
                paragraph (1)(B).
                  (B) Consultation required.--The Federal 
                banking agencies shall consult with each other 
                for the purpose of assuring that the rules and 
                regulations issued by the agencies under 
                subparagraph (A) are, to the extent possible, 
                consistent, comparable, and practicable, taking 
                into account any differences in the supervisory 
                programs utilized by the agencies for the 
                supervision of depository institutions and 
                depository institution holding companies.
          (5) Waiver.--
                  (A) Agency authority.--A Federal banking 
                agency may grant a waiver, on a case by case 
                basis, of the restriction imposed by this 
                subsection to any officer or employee 
                (including any special Government employee) of 
                that agency, and the Board of Governors of the 
                Federal Reserve System may grant a waiver of 
                the restriction imposed by this subsection to 
                any officer or employee of a Federal reserve 
                bank, if the head of such agency certifies in 
                writing that granting the waiver would not 
                affect the integrity of the supervisory program 
                of the relevant Federal banking agency.
                  (B) Definition.--For purposes of this 
                paragraph, the head of an agency is--
                          (i) the Comptroller of the Currency, 
                        in the case of the Office of the 
                        Comptroller of the Currency;
                          (ii) the Chairman of the Board of 
                        Governors of the Federal Reserve 
                        System, in the case of the Board of 
                        Governors of the Federal Reserve 
                        System; and
                          (iii) the Chairperson of the Board of 
                        Directors, in the case of the 
                        Corporation.
          (6) Penalties.--
                  (A) In general.--In addition to any other 
                administrative, civil, or criminal remedy or 
                penalty that may otherwise apply, whenever a 
                Federal banking agency determines that a person 
                subject to paragraph (1) has become associated, 
                in the manner described in paragraph (1)(C), 
                with a depository institution, depository 
                institution holding company, or other company 
                for which such agency serves as the appropriate 
                Federal banking agency, the agency shall impose 
                upon such person one or more of the following 
                penalties:
                          (i) Industry-wide prohibition 
                        order.--The Federal banking agency 
                        shall serve a written notice or order 
                        in accordance with and subject to the 
                        provisions of section 8(e)(4) for 
                        written notices or orders under 
                        paragraph (1) or (2) of section 8(e), 
                        upon such person of the intention of 
                        the agency--
                                  (I) to remove such person 
                                from office or to prohibit such 
                                person from further 
                                participation in the conduct of 
                                the affairs of the depository 
                                institution, depository 
                                institution holding company, or 
                                other company for a period of 
                                up to 5 years; and
                                  (II) to prohibit any further 
                                participation by such person, 
                                in any manner, in the conduct 
                                of the affairs of any insured 
                                depository institution for a 
                                period of up to 5 years.
                          (ii) Civil monetary penalty.--The 
                        Federal banking agency may, in an 
                        administrative proceeding or civil 
                        action in an appropriate United States 
                        district court, impose on such person a 
                        civil monetary penalty of not more than 
                        $250,000. Any administrative proceeding 
                        under this clause shall be conducted in 
                        accordance with section 8(i). In lieu 
                        of an action by the Federal banking 
                        agency under this clause, the Attorney 
                        General of the United States may bring 
                        a civil action under this clause in the 
                        appropriate United States district 
                        court.
                  (B) Scope of prohibition order.--Any person 
                subject to an order issued under subparagraph 
                (A)(i) shall be subject to paragraphs (6) and 
                (7) of section 8(e) in the same manner and to 
                the same extent as a person subject to an order 
                issued under such section.
                  (C) Definitions.--Solely for purposes of this 
                paragraph, the ``appropriate Federal banking 
                agency'' for a company that is not a depository 
                institution or depository institution holding 
                company shall be the Federal banking agency on 
                whose behalf the person described in paragraph 
                (1) performed the functions described in 
                paragraph (1)(B).

           *       *       *       *       *       *       *

  Sec. 27. (a) In order to prevent discrimination against 
State-chartered insured depository institutions, including 
insured savings banks, or insured branches of foreign banks 
with respect to interest rates, if the applicable rate 
prescribed in this subsection exceeds the rate such State bank 
or insured branch of a foreign bank would be permitted to 
charge in the absence of this subsection, such State bank or 
such insured branch of a foreign bank may, notwithstanding any 
State constitution or statute which is hereby preempted for the 
purposes of this section, take, receive, reserve, and charge on 
any loan or discount made, or upon any note, bill of exchange, 
or other evidence of debt, interest at a rate of not more than 
1 per centum in excess of the discount rate on ninety-day 
commercial paper in effect at the Federal Reserve bank in the 
Federal Reserve district where such State bank or such insured 
branch of a foreign bank is located or at the rate allowed by 
the laws of the State, territory, or district where the bank is 
located, whichever may be greater. A loan that is valid when 
made as to its maximum rate of interest in accordance with this 
section shall remain valid with respect to such rate regardless 
of whether the loan is subsequently sold, assigned, or 
otherwise transferred to a third party, and may be enforced by 
such third party notwithstanding any State law to the contrary.
  (b) If the rate prescribed in subsection (a) exceeds the rate 
such State bank or such insured branch of a foreign bank would 
be permitted to charge in the absence of this section, and such 
State fixed rate is thereby preempted by the rate described in 
subsection (a), the taking, receiving, reserving, or charging a 
greater rate of interest than is allowed by subsection (a), 
when knowingly done, shall be deemed a forfeiture of the entire 
interest which the note, bill, or other evidence of debt 
carries with it, or which has been agreed to be paid thereon. 
If such greater rate of interest has been paid, the person who 
paid it may recover in a civil action commenced in a court of 
appropriate jurisdiction not later than two years after the 
date of such payment, an amount equal to twice the amount of 
the interest paid from such State bank or such insured branch 
of a foreign bank taking, receiving, reserving, or charging 
such interest.

           *       *       *       *       *       *       *

                              ----------                              

HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992

           *       *       *       *       *       *       *

TITLE XIII--GOVERNMENT SPONSORED ENTERPRISES

           *       *       *       *       *       *       *

         Subtitle A--Supervision and Regulation of Enterprises

PART 1--FINANCIAL SAFETY AND SOUNDNESS REGULATOR

           *       *       *       *       *       *       *

SEC. 1316. FUNDING.

  [(a) Annual Assessments.--The Director shall establish and 
collect from the regulated entities annual assessments in an 
amount not exceeding the amount sufficient to provide for 
reasonable costs (including administrative costs) and expenses 
of the Agency, including--
          [(1) the expenses of any examinations under section 
        1317 of this Act and under section 20 of the Federal 
        Home Loan Bank Act;
          [(2) the expenses of obtaining any reviews and credit 
        assessments under section 1319;
          [(3) such amounts in excess of actual expenses for 
        any given year as deemed necessary by the Director to 
        maintain a working capital fund in accordance with 
        subsection (e); and
          [(4) the windup of the affairs of the Office of 
        Federal Housing Enterprise Oversight and the Federal 
        Housing Finance Board under title III of the Federal 
        Housing Finance Regulatory Reform Act of 2008.]
  (a) Appropriations Requirement.--
          (1) Recovery of costs of annual appropriation.--The 
        Agency shall collect assessments and other fees that 
        are designed to recover the costs to the Government of 
        the annual appropriation to the Agency by Congress.
          (2) Offsetting collections.--Assessments and other 
        fees described under paragraph (1) for any fiscal 
        year--
                  (A) shall be deposited and credited as 
                offsetting collections to the account providing 
                appropriations to the Agency; and
                  (B) shall not be collected for any fiscal 
                year except to the extent provided in advance 
                in appropriation Acts.
  (b) Allocation of Annual Assessment to Enterprises.--
          (1) Amount of payment.--Each enterprise shall pay to 
        the Director a proportion of the annual assessment made 
        pursuant to subsection (a) that bears the same ratio to 
        the total annual assessment that the total assets of 
        each enterprise bears to the total assets of both 
        enterprises.
          (2) Separate treatment of federal home loan bank and 
        enterprise assessments.--Assessments collected from the 
        enterprises shall not exceed the amounts sufficient to 
        provide for the costs and expenses described in 
        subsection (a) relating to the enterprises. Assessments 
        collected from the Federal Home Loan Banks shall not 
        exceed the amounts sufficient to provide for the costs 
        and expenses described in subsection (a) relating to 
        the Federal Home Loan Banks.
          (3) Timing of payment.--The annual assessment shall 
        be payable semiannually for each fiscal year, on 
        October 1 and April 1.
          (4) Definition.--For the purpose of this section, the 
        term ``total assets'' means, with respect to an 
        enterprise, the sum of--
                  (A) on-balance-sheet assets of the 
                enterprise, as determined in accordance with 
                generally accepted accounting principles;
                  (B) the unpaid principal balance of 
                outstanding mortgage-backed securities issued 
                or guaranteed by the enterprise that are not 
                included in subparagraph (A); and
                  (C) other off-balance-sheet obligations as 
                determined by the Director.
  (c) Increased Costs of Regulation.--
          (1) Increase for inadequate capitalization.--The 
        semiannual payments made pursuant to subsection (b) by 
        any regulated entity that is not classified (for 
        purposes of subtitle B) as adequately capitalized may 
        be increased, as necessary, in the discretion of the 
        Director to pay additional estimated costs of 
        regulation of the regulated entity.
          (2) Adjustment for enforcement activities.--The 
        Director may adjust the amounts of any semiannual 
        payments for an assessment under subsection (a) that 
        are to be paid pursuant to subsection (b) by a 
        regulated entity, as necessary in the discretion of the 
        Director, to ensure that the costs of enforcement 
        activities under this Act for a regulated entity are 
        borne only by such regulated entity.
          (3) Additional assessment for deficiencies.--If at 
        any time, as a result of increased costs of regulation 
        of a regulated entity that is not classified (for 
        purposes of subtitle B) as adequately capitalized or as 
        the result of supervisory or enforcement activities 
        under this Act for a regulated entity, the amount 
        available from any semiannual payment made by such 
        regulated entity pursuant to subsection (b) is 
        insufficient to cover the costs of the Agency with 
        respect to such entity, the Director may make and 
        collect from such regulated entity an immediate 
        assessment to cover the amount of such deficiency for 
        the semiannual period. If, at the end of any semiannual 
        period during which such an assessment is made, any 
        amount remains from such assessment, such remaining 
        amount shall be deducted from the assessment for such 
        regulated entity for the following semiannual period.
  (d) Surplus.--Except with respect to amounts collected 
pursuant to subsection (a)(3), if any amount from any annual 
assessment collected from an enterprise remains unobligated at 
the end of the year for which the assessment was collected, 
such amount shall be credited to the assessment to be collected 
from the enterprise for the following year.
  (e) Working Capital Fund.--At the end of each year for which 
an assessment under this section is made, the Director shall 
remit to each regulated entity any amount of assessment 
collected from such regulated entity that is attributable to 
subsection (a)(3) and is in excess of the amount the Director 
deems necessary to maintain a working capital fund.
  [(f) Treatment of Assessments.--
          [(1) Deposit.--Amounts received by the Director from 
        assessments under this section may be deposited by the 
        Director in the manner provided in section 5234 of the 
        Revised Statutes of the United States (12 U.S.C. 192) 
        for monies deposited by the Comptroller of the 
        Currency.
          [(2) Not government funds.--The amounts received by 
        the Director from any assessment under this section 
        shall not be construed to be Government or public funds 
        or appropriated money.
          [(3) No apportionment of funds.--Notwithstanding any 
        other provision of law, the amounts received by the 
        Director from any assessment under this section shall 
        not be subject to apportionment for the purpose of 
        chapter 15 of title 31, United States Code, or under 
        any other authority.
          [(4) Use of funds.--The Director may use any amounts 
        received by the Director from assessments under this 
        section for compensation of the Director and other 
        employees of the Agency and for all other expenses of 
        the Director and the Agency.
          [(5) Availability of oversight fund amounts.--
        Notwithstanding any other provision of law, any amounts 
        remaining in the Federal Housing Enterprises Oversight 
        Fund established under this section (as in effect 
        before the effective date of the Federal Housing 
        Finance Regulatory Reform Act of 2008, and any amounts 
        remaining from assessments on the Federal Home Loan 
        Banks pursuant to section 18(b) of the Federal Home 
        Loan Bank Act (12 U.S.C. 1438(b)), shall, upon such 
        effective date, be treated for purposes of this 
        subsection as amounts received from assessments under 
        this section.
          [(6) Treasury investments.--
                  [(A) Authority.--The Director may request the 
                Secretary of the Treasury to invest such 
                portions of amounts received by the Director 
                from assessments paid under this section that, 
                in the Director's discretion, are not required 
                to meet the current working needs of the 
                Agency.
                  [(B) Government obligations.--Pursuant to a 
                request under subparagraph (A), the Secretary 
                of the Treasury shall invest such amounts in 
                Government obligations guaranteed as to 
                principal and interest by the United States 
                with maturities suitable to the needs of the 
                Agency and bearing interest at a rate 
                determined by the Secretary of the Treasury 
                taking into consideration current market yields 
                on outstanding marketable obligations of the 
                United States of comparable maturity.]
  (g) Budget and Financial Management.--
          (1) Financial operating plans and forecasts.--The 
        Director shall provide to the Director of the Office of 
        Management and Budget copies of the Director's 
        financial operating plans and forecasts, as prepared by 
        the Director in the ordinary course of the Agency's 
        operations, and copies of the quarterly reports of the 
        Agency's financial condition and results of operations, 
        as prepared by the Director in the ordinary course of 
        the Agency's operations.
          (2) Financial statements.--The Agency shall prepare 
        annually a statement of--
                  (A) assets and liabilities and surplus or 
                deficit;
                  (B) income and expenses; and
                  (C) sources and application of funds.
          (3) Financial management systems.--The Agency shall 
        implement and maintain financial management systems 
        that--
                  (A) comply substantially with Federal 
                financial management systems requirements and 
                applicable Federal accounting standards; and
                  (B) use a general ledger system that accounts 
                for activity at the transaction level.
          (4) 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 Agency, using the standards established in section 
        3512(c) of title 31, United States Code.
          (5) 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 paragraph (1) or 
        any jurisdiction or oversight over the affairs or 
        operations of the Agency.
  (h) Audit of Agency.--
          (1) In general.--The Comptroller General shall 
        annually audit the financial transactions of the Agency 
        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 Agency 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 
        Agency 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 Agency shall remain 
        in possession and custody of the Agency. 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 Comptroller General's right of access to such 
        information shall be enforceable pursuant to section 
        716(c) of title 31, United States Code.
          (2) 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 Agency, 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 Agency at the 
        time submitted to the Congress.
          (3) 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 
        Agency 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.

           *       *       *       *       *       *       *

                              ----------                              

FEDERAL CREDIT UNION ACT

           *       *       *       *       *       *       *

TITLE I--FEDERAL CREDIT UNIONS

           *       *       *       *       *       *       *

                                  fees

  Sec. 105. (a) In accordance with rules prescribed by the 
Board, each Federal credit union shall pay to the 
Administration an annual operating fee which may be composed of 
one or more charges identified as to the function or functions 
for which assessed.
  (b) The fee assessed under this section shall be determined 
according to a schedule, or schedules, or other method 
determined by the Board to be appropriate, which gives due 
consideration to the expenses of the Administration in carrying 
out its responsibilities under this Act and to the ability of 
Federal credit unions to pay the fee. The Board shall, among 
other things, determine the periods for which the fee shall be 
assessed and the date or dates for the payment of the fee or 
increments thereof.
  (c) If the annual operating fee is composed of separate 
charges, no supervision charge shall be payable by a Federal 
credit union, and the Board may waive payment of any or all 
other charges comprising the fee, with respect to the year in 
which its charter is issued, or in which final distribution is 
made in its liquidation or the charter is canceled.
  (d) [All] (1) All operating fees shall be deposited with the 
Treasurer of the United States [for the account of the 
Administration and may be expended by the Board to defray the 
expenses incurred in carrying out the provisions of this Act 
including the examination and supervision of Federal credit 
unions] and may be expended by the Board only to the extent as 
provided in advance by appropriations Acts, to cover the costs 
incurred in carrying out the provisions of this Act with 
respect to the costs of the examination and supervision of 
Federal credit unions and the proportion of the administrative 
costs of the Board related to the examination and supervision 
of Federal credit unions.
  (2)(A) The Board may only use amounts in the NCUA Operating 
Fund to the extent as provided in advance by appropriations 
Acts, including to pay for the costs incurred by the Board in 
carrying out the examination and supervision of Federal credit 
unions and the proportion of the administrative costs of the 
Board related to the examination and supervision of Federal 
credit unions.
  (B) Subparagraph (A) shall not apply to the Board's 
activities carried out pursuant to title II.
  (e)(1) Upon request of the Board, the Secretary of the 
Treasury shall invest and reinvest such portions of the annual 
operating fees deposited under subsection (d) as the Board 
determines are not needed for current operations.
  (2) Such investments may be made only in interest bearing 
securities of the United States with maturities requested by 
the Board bearing interest at rates determined by the Secretary 
of the Treasury, taking into consideration current market 
yields on outstanding marketable obligations of the United 
States of comparable maturities.
  (3) All income derived from such investments and 
reinvestments shall be deposited to the account of the 
Administration described in subsection (d).

           *       *       *       *       *       *       *

                        certain powers of board

  Sec. 120. (a) The Board may prescribe rules and regulations 
for the administration of this Act (including, but not by way 
of limitation, the merger, consolidation, and dissolution of 
corporations organized under this Act). Any central credit 
union chartered by the Board shall be subject to such rules, 
regulations, and orders as the Board deems appropriate and, 
except as otherwise specifically provided in such rules, 
regulations, or orders, shall be vested with or subject to the 
same rights, privileges, duties, restrictions, penalties, 
liabilities, conditions, and limitations that would apply to 
all Federal credit unions under this Act.
  (b)(1) The Board may suspend or revoke the charter of any 
Federal credit union, or place the same in involuntary 
liquidation and appoint a liquidating agent therefor, upon its 
finding that the organization is bankrupt or insolvent, or has 
violated any of the provisions of its charter, its bylaws, this 
Act, or any regulations issued thereunder.
  (2) The Board, through such persons as it shall designate, 
may examine any Federal credit union in voluntary liquidation 
and, upon its finding that such voluntary liquidation is not 
being conducted in an orderly or efficient manner or in the 
best interests of its members, may terminate such voluntary 
liquidation and place such organization in involuntary 
liquidation and appoint a liquidating agent therefor.
  (3) Such liquidating agent shall have power and authority, 
subject to the control and supervision of the Board and under 
such rules and regulations as the Board may prescribe, (A) to 
receive and take possession of the books, records, assets, and 
property of every description of the Federal credit union in 
liquidation, to sell, enforce collection of, and liquidate all 
such assets and property, to compound all bad or doubtful 
debts, and to sue in his own name or in the name of the Federal 
credit union in liquidation, and defend such actions as may be 
brought against him as liquidating agent or against the Federal 
credit union; (B) to receive, examine, and pass upon all claims 
against the Federal credit union in liquidation, including 
claims of members on member accounts; (C) to make distribution 
and payment to creditors and members as their interests may 
appear; and (D) to execute such documents and papers and to do 
such other acts and things which he may deem necessary or 
desirable to discharge his duties hereunder.
  (4) Subject to the control and supervision of the Board and 
under such rules and regulations as the Board may prescribe, 
the liquidating agent of a Federal credit union in involuntary 
liquidation shall (A) cause notice to be given to creditors and 
members to present their claims and make legal proof thereof, 
which notice shall be published once a week in each of three 
successive weeks in a newspaper of general circulation in each 
county in which the Federal credit union in liquidation 
maintained an office or branch for the transaction of business 
on the date it ceased unrestricted operations; except that 
whenever the aggregate book value of the assets and property of 
a Federal credit union in involuntary liquidation is less than 
$1,000, unless the Board shall find that its books and records 
do not contain a true and accurate record of its liabilities, 
he shall declare such Federal credit union in liquidation to be 
a ``no publication'' liquidation, and publication of notice to 
creditors and members shall not be required in such case; (B) 
from time to time make a ratable dividend on all such claims as 
may have been proved to his satisfaction or adjudicated in a 
court of competent jurisdiction and, after the assets of such 
organization have been liquidated, make further dividends on 
all claims previously proved or adjudicated, and he may accept 
in lieu of a formal proof of claim on behalf of any creditor or 
member the statement of any amount due to such creditor or 
member as shown on the books and records of the credit union; 
but all claims not filed before payment of the final dividend 
shall be barred and claims rejected or disallowed by the 
liquidating agent shall be likewise barred unless suit be 
instituted thereon within three months after notice of 
rejection or disallowance; and (C) in a ``no publication'' 
liquidation, determine from all sources available to him, and 
within the limits of available funds of the Federal credit 
union, the amounts due to creditors and members, and after 
sixty days shall have elapsed from the date of his appointment 
distribute the funds of the Federal credit union to creditors 
and members ratably and as their interests may appear.
  (5) Upon certification by the liquidating agent in the case 
of an involuntary liquidation, and upon such proof as shall be 
satisfactory to the Board in the case of a voluntary 
liquidation, that distribution has been made and that 
liquidation has been completed, as provided herein, the Board 
shall cancel the charter of such Federal credit union; but the 
corporate existence of the Federal credit union shall continue 
for a period of three years from the date of such cancellation 
of its charter, during which period the liquidating agent, or 
his duly appointed successor, or such persons as the Board 
shall designate, may act on behalf of the Federal credit union 
for the purpose of paying, satisfying, and discharging any 
existing liabilities or obligations, collecting and 
distributing its assets, and doing all other acts required to 
adjust and wind up its business and affairs, and it may sue and 
be sued in its corporate name.
  (c) After the expiration of five years from the date of 
cancellation of the charter of a Federal credit union the Board 
may, in its discretion, destroy any or all books and records of 
such Federal credit union in its possession or under its 
control.
  (d) The Board is authorized and empowered to execute any and 
all functions and perform any and all duties vested in it 
hereby, through such persons as it shall designate or employ; 
and it may delegate to any person or persons, including any 
institution operating under the general supervision of the 
Administration, the performance and discharge of any authority, 
power, or function vested in it by this Act.
  (e) All books and records of Federal credit unions shall be 
kept and reports shall be made in accordance with forms 
approved by the Board.
  (f)(1) The Board is authorized to make investigations and to 
conduct researches and studies of the problems of persons of 
small means in obtaining credit at reasonable rates of 
interest, and of the methods and benefits of cooperative saving 
and lending among such persons. It is further authorized to 
make reports of such investigations and to publish and 
disseminate the same.
  (2)(A) The Board is authorized to conduct directly, or to 
make grants to or contracts with colleges or universities, 
State or local educational agencies, or other appropriate 
public or private nonprofit organizations to conduct, programs 
for the training of persons engaged, or preparing to engage, in 
the operation of credit unions, and in related consumer 
counseling programs, serving the poor. It is authorized to 
establish a program of experimental, developmental, 
demonstration, and pilot projects, either directly or by grants 
to public or private nonprofit organizations, including credit 
unions, or by contracts with such organizations or other 
private organizations, designed to promote more effective 
operation of credit unions, and related consumer counseling 
programs, serving the poor.
  (B) In carrying out its authority under this paragraph, the 
Board shall consult with officials of the Office of Economic 
Opportunity and other appropriate Federal agencies responsible 
for the administration of projects or programs concerned with 
problems of the poor. The development and operation of programs 
and projects under this paragraph shall involve maximum 
feasible participation of residents of the areas and members of 
the groups served by such programs and projects, with community 
action agencies established under the provisions of the 
Economic Opportunity Act of 1964 serving, to the extent 
feasible, as the means through which such participation is 
achieved.
  (C) In order to carry out the purposes of this paragraph, 
there is authorized to be appropriated, as a supplement to any 
funds that may be expended by the Board pursuant to sections 
105 and 106 for such purposes, not to exceed $300,000 for the 
fiscal year ending June 30, 1970, and not to exceed $1,000,000 
for the fiscal year ending June 30, 1971.
  (g) Any officer or employee of the Administration is 
authorized, when designated for the purpose by the Board, to 
administer oaths and affirmations and to take affidavits and 
depositions touching upon any matter within the jurisdiction of 
the Administration.
  (h) The Board is authorized, empowered, and directed to 
require that every person appointed or elected by any Federal 
credit union to any position requiring the receipt, payment, or 
custody of money or other personal property owned by a Federal 
credit union, or in its custody or control as collateral or 
otherwise, give bond in a corporate surety company holding a 
certificate of authority from the Secretary of the Treasury 
under chapter 93 of title 31, United States Code, as an 
acceptable surety on Federal bonds. Any such bond or bonds 
shall be in a form approved by the Board with a view to 
providing surety coverage to the Federal credit union with 
reference to loss by reason of acts of fraud or dishonesty 
including forgery, theft, embezzlement, wrongful abstraction, 
or misapplication on the part of the person, directly or 
through connivance with others, and such other surety coverages 
as the Board may determine to be reasonably appropriate or as 
elsewhere required by this Act. Any such bond or bonds shall be 
in such an amount in relation to the money or other personal 
property involved or in relation to the assets of the Federal 
credit union as the Board may from time to time prescribe by 
regulation for the purpose of requiring reasonable coverage. In 
lieu of individual bonds the Board may approve the use of a 
form of schedule or blanket bond which covers all of the 
officers and employees of a Federal credit union whose duties 
include the receipt, payment, or custody of money or other 
personal property for or on behalf of the Federal credit union. 
The Board may also approve the use of a form of excess coverage 
bond whereby a Federal credit union may obtain an amount of 
coverage in excess of the basic surety coverage.
  (i) In addition to the authority conferred upon them by other 
sections of this Act, the Board is authorized in carrying out 
its functions under this Act--
          (1) to appoint such personnel as may be necessary to 
        enable the Administration to carry out its functions;
          (2) to expend such funds, enter into such contracts 
        with public and private organizations and persons, make 
        such payments in advance or by way of reimbursement, 
        acquire and dispose of, by lease or purchase, real or 
        personal property, without regard to the provisions of 
        any other law applicable to executive or independent 
        agencies of the United States, and perform such other 
        functions or acts as it may deem necessary or 
        appropriate to carry out the provisions of this Act, in 
        accordance with the rules and regulations or policies 
        established by the Board not inconsistent with this 
        Act; and
          (3) to pay stipends, including allowances for travel 
        to and from the place of residence, to any individual 
        to study in a program assisted under this Act upon a 
        determination by the Board that assistance to such 
        individual in such studies will be in furtherance of 
        the purposes of this Act.
  (j) Staff.--
          (1) Appointment and compensation.--The Board shall 
        fix the compensation and number of, and appoint and 
        direct, employees of the Board. Rates of basic pay for 
        employees of the Board may be set and adjusted by the 
        Board without regard to the provisions of chapter 51 or 
        subchapter III of chapter 53 of title 5, United States 
        Code.
          (2) Additional compensation and benefits.--The Board 
        may provide additional compensation and benefits to 
        employees of the Board if the same type of compensation 
        or benefits are then being provided by any other 
        Federal bank regulatory agency or, if not then being 
        provided, could be provided by such an agency under 
        applicable provisions of law, rule, or regulation. In 
        setting and adjusting the total amount of compensation 
        and benefits for employees of the Board, the Board 
        shall seek to maintain comparability with other Federal 
        bank regulatory agencies.
          (3) Funding.--The salaries and expenses of the Board 
        and employees of the Board related to the examination 
        and supervision of Federal credit unions under this Act 
        and the proportion of the administrative costs of the 
        Board related to the examination and supervision of 
        Federal credit unions under this Act shall be paid from 
        fees and assessments (including income earned on 
        insurance deposits) levied on [insured credit unions 
        under this Act] Federal credit unions under this title, 
        only to the extent as provided in advance by 
        appropriations Acts.

           *       *       *       *       *       *       *

TITLE II--SHARE INSURANCE

           *       *       *       *       *       *       *

   reports of condition; certified statements; premiums for insurance

  Sec. 202. (a)(1) Each insured credit union shall make reports 
of condition to the Board upon dates which shall be selected by 
them. Such reports of condition shall be in such form and shall 
contain such information as the Board may require. The 
reporting dates selected for reports of condition shall be the 
same for all insured credit unions except that when any of said 
reporting dates is a nonbusiness day for any credit union the 
preceding business day shall be its reporting date. The total 
amount of the member accounts of each insured credit union as 
of each reporting date shall be reported in such reports of 
condition in accordance with regulations prescribed by the 
Board. Each report of condition shall contain a declaration by 
the president, by a vice president, by the treasurer, or by any 
other officer designated by the board of directors of the 
reporting credit union to make such declaration, that the 
report is true and correct to the best of such officer's 
knowledge and belief. Unless such requirement is waived by the 
Board, the correctness of each report of condition shall be 
attested by the signatures of three of the officers of the 
reporting credit union with the declaration that the report has 
been examined by them and to the best of their knowledge and 
belief is true and correct.
  (2) The Board may call for such other reports as it may from 
time to time require.
  (3) The Board may require reports of condition to be 
published in such manner, not inconsistent with any applicable 
law, as it may direct. Any insured credit union which maintains 
procedures reasonably adapted to avoid any inadvertent error 
and, unintentionally and as a result of such an error, fails to 
submit or publish any report required under this subsection or 
section 106, within the period of time specified by the Board, 
or submits or publishes any false or misleading report or 
information, or inadvertently transmits or publishes any report 
which is minimally late, shall be subject to a penalty of not 
more than $2,000 for each day during which such failure 
continues or such false or misleading information is not 
corrected. The insured credit union shall have the burden of 
proving that an error was inadvertent and that a report was 
inadvertently transmitted or published late. Any insured credit 
union which fails to submit or publish any report required 
under this subsection or section 106, within the period of time 
specified by the Board, or submits or publishes any false or 
misleading report or information, in a manner not described in 
the 2nd preceding sentence shall be subject to a penalty of not 
more than $20,000 for each day during which such failure 
continues or such false or misleading information is not 
corrected. Notwithstanding the preceding sentence, if any 
insured credit union knowingly or with reckless disregard for 
the accuracy of any information or report described in such 
sentence submits or publishes any false or misleading report or 
information, the Board may assess a penalty of not more than 
$1,000,000 or 1 percent of total assets of such credit union, 
whichever is less, per day for each day during which such 
failure continues or such false or misleading information is 
not corrected. Any penalty imposed under any of the 4 preceding 
sentences shall be assessed and collected by the Board in the 
manner provided in section 206(k)(2) (for penalties imposed 
under such section) and any such assessment (including the 
determination of the amount of the penalty) shall be subject to 
the provisions of such section. Any insured credit union 
against which any penalty is assessed under this subsection 
shall be afforded an agency hearing if such insured credit 
union submits a request for such hearing within 20 days after 
the issuance of the notice of assessment. Section 206(j) shall 
apply to any proceeding under this subsection.
  (4) The Board may accept any report of condition made to any 
commission, board, or authority having supervision of a State-
chartered credit union and may furnish to any such commission, 
board, or authority reports of condition made to the Board.
  (5) Reports required under title I of this Act shall be so 
prepared that they can be used for share insurance purposes. To 
the maximum extent feasible, the Board shall use for insurance 
purposes reports submitted to State regulatory agencies by 
State-chartered credit unions.
          (6) Audit requirement.--
                  (A) In general.--Before the end of the 120-
                day period beginning on the date of the 
                enactment of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989 and 
                notwithstanding any other provision of Federal 
                or State law, the Board shall prescribe, by 
                regulation, audit standards which require an 
                outside, independent audit of any insured 
                credit union by a certified public accountant 
                for any fiscal year (of such credit union)--
                          (i) for which such credit union has 
                        not conducted an annual supervisory 
                        committee audit;
                          (ii) for which such credit union has 
                        not received a complete and 
                        satisfactory supervisory committee 
                        audit; or
                          (iii) during which such credit union 
                        has experienced persistent and serious 
                        recordkeeping deficiencies, as 
                        determined by the Board.
                  (B) Unsafe or unsound practice.--The Board 
                may treat the failure of any insured credit 
                union to obtain an outside, independent audit 
                for any fiscal year for which such audit is 
                required under subparagraph (A) or (D) as an 
                unsafe or unsound practice within the meaning 
                of section 206(b).
                  (C) Accounting principles.--
                          (i) In general.--Accounting 
                        principles applicable to reports or 
                        statements required to be filed with 
                        the Board by each insured credit union 
                        shall be uniform and consistent with 
                        generally accepted accounting 
                        principles.
                          (ii) Board determination.--If the 
                        Board determines that the application 
                        of any generally accepted accounting 
                        principle to any insured credit union 
                        is not appropriate, the Board may 
                        prescribe an accounting principle for 
                        application to the credit union that is 
                        no less stringent than generally 
                        accepted accounting principles.
                          (iii) De minimus exception.--This 
                        subparagraph shall not apply to any 
                        insured credit union, the total assets 
                        of which are less than $10,000,000, 
                        unless prescribed by the Board or an 
                        appropriate State credit union 
                        supervisor.
                  (D) Large credit union audit requirement.--
                          (i) In general.--Each insured credit 
                        union having total assets of 
                        $500,000,000 or more shall have an 
                        annual independent audit of the 
                        financial statements of the credit 
                        union, performed in accordance with 
                        generally accepted auditing standards 
                        by an independent certified public 
                        accountant or public accountant 
                        licensed by the appropriate State or 
                        jurisdiction to perform those services.
                          (ii) Voluntary audits.--If a Federal 
                        credit union that is not required to 
                        conduct an audit under clause (i), and 
                        that has total assets of more than 
                        $10,000,000 conducts such an audit for 
                        any purpose, using an independent 
                        auditor who is compensated for his or 
                        her audit services with respect to that 
                        audit, the audit shall be performed 
                        consistent with the accountancy laws of 
                        the appropriate State or jurisdiction, 
                        including licensing requirements.
          (7) Report to independent auditor.--
                  (A) In general.--Each insured credit union 
                which has engaged the services of an 
                independent auditor to audit such depository 
                institution within the past 2 years shall 
                transmit to such auditor a copy of the most 
                recent report of condition made by such credit 
                union (pursuant to this Act or any other 
                provision of law) and a copy of the most recent 
                report of examination received by such credit 
                union.
                  (B) Additional information.--In addition to 
                the copies of the reports required to be 
                provided to an auditor under subparagraph (A), 
                each insured credit union shall provide such 
                auditor with--
                          (i) a copy of any supervisory 
                        memorandum of understanding with such 
                        credit union and any written agreement 
                        between the Board or a State regulatory 
                        agency and the credit union which is in 
                        effect during the period covered by the 
                        audit; and
                          (ii) a report of any action initiated 
                        or taken by the Board during such 
                        period under subsection (e), (f), (g), 
                        (i), (l), or (q) of section 206, or any 
                        similar action taken by a State 
                        regulatory dagency under State law, or 
                        any other civil money penalty assessed 
                        by the Board under this Act, with 
                        respect to--
                                  (I) the credit union; or
                                  (II) any institution-
                                affiliated party.
          (8) Data sharing with other agencies and persons.--In 
        addition to reports of examination, reports of 
        condition, and other reports required to be regularly 
        provided to the Board (with respect to all insured 
        credit unions, including a credit union for which the 
        Corporation has been appointed conservator or 
        liquidating agent) or an appropriate State commission, 
        board, or authority having supervision of a State-
        chartered credit union, the Board may, in the 
        discretion of the Board, furnish any report of 
        examination or other confidential supervisory 
        information concerning any credit union or other entity 
        examined by the Board under authority of any Federal 
        law, to--
                  (A) any other Federal or State agency or 
                authority with supervisory or regulatory 
                authority over the credit union or other 
                entity;
                  (B) any officer, director, or receiver of 
                such credit union or entity; and
                  (C) any other person that the Board 
                determines to be appropriate.
  (b) Certified Statement.--
          (1) Statement required.--
                  (A) In general.--For each calendar year, in 
                the case of an insured credit union with total 
                assets of not more than $50,000,000, and for 
                each semi-annual period in the case of an 
                insured credit union with total assets of 
                $50,000,000 or more, an insured credit union 
                shall file with the Board, at such time as the 
                Board prescribes, a certified statement showing 
                the total amount of insured shares in the 
                credit union at the close of the relevant 
                period and both the amount of its deposit or 
                adjustment of deposit and the amount of the 
                insurance charge due to the Fund for that 
                period, both as computed under subsection (c).
                  (B) Exception for newly insured credit 
                union.--Subparagraph (A) shall not apply with 
                respect to a credit union that became insured 
                during the reporting period.
          (2) Form.--The certified statements required to be 
        filed with the Board pursuant to this subsection shall 
        be in such form and shall set forth such supporting 
        information as the Board shall require.
          (3) Certification.--The president of the credit union 
        or any officer designated by the board of directors 
        shall certify, with respect to each statement required 
        to be filed with the Board pursuant to this subsection, 
        that to the best of his or her knowledge and belief the 
        statement is true, correct, complete, and in accordance 
        with this title and the regulations issued under this 
        title.
  (c)(1)(A)(i) Each insured credit union shall pay to and 
maintain with the National Credit Union Share Insurance Fund a 
deposit in an amount equaling 1 per centum of the credit 
union's insured shares.
  (ii) The Board may, in its discretion, authorize insured 
credit unions to initially fund such deposit over a period of 
time in excess of one year if necessary to avoid adverse 
effects on the condition of insured credit unions.
                          (iii) Periodic adjustment.--The 
                        amount of each insured credit union's 
                        deposit shall be adjusted as follows, 
                        in accordance with procedures 
                        determined by the Board, to reflect 
                        changes in the credit union's insured 
                        shares:
                                  (I) annually, in the case of 
                                an insured credit union with 
                                total assets of not more than 
                                $50,000,000; and
                                  (II) semi-annually, in the 
                                case of an insured credit union 
                                with total assets of 
                                $50,000,000 or more.
  (B)(i) The deposit shall be returned to an insured credit 
union in the event that its insurance coverage is terminated, 
it converts to insurance coverage from another source, or in 
the event the operations of the fund are transferred from the 
National Credit Union Administration Board.
  (ii) The deposit shall be returned in accordance with 
procedures and valuation methods determined by the Board, but 
in no event shall the deposit be returned any later than one 
year after the final date on which no shares of the credit 
union are insured by the Board.
  (iii) The deposit shall not be returned in the event of 
liquidation on account of bankruptcy or insolvency.
  (iv) [The] To the extent provided for in advance by 
appropriations Acts, the deposit funds may be used by the fund 
if necessary to meet its expenses, in which case the amount so 
used shall be expensed and shall be replenished by insured 
credit unions in accordance with procedures established by the 
Board. This clause shall not apply to the Board's activities 
carried out pursuant to this title.
          (2) Insurance premium charges.--
                  (A) In general.--Each insured credit union 
                shall, at such times as the Board prescribes 
                (but not more than twice in any calendar year), 
                pay to the Fund a premium charge for insurance 
                in an amount stated as a percentage of insured 
                shares (which shall be the same for all insured 
                credit unions).
                  (B) Relation of premium charge to equity 
                ratio of fund.--The Board may assess a premium 
                charge only if--
                          (i) the Fund's equity ratio is less 
                        than 1.3 percent; and
                          (ii) the premium charge does not 
                        exceed the amount necessary to restore 
                        the equity ratio to 1.3 percent.
                  (C) Premium charge required if equity ratio 
                falls below 1.2 percent.--If the Fund's equity 
                ratio is less than 1.2 percent, the Board 
                shall, subject to subparagraph (B), assess a 
                premium charge in such an amount as the Board 
                determines to be necessary to restore the 
                equity ratio to, and maintain that ratio at, 
                1.2 percent.
                  (D) Fund restoration plans.--
                          (i) In general.--Whenever--
                                  (I) the Board projects that 
                                the equity ratio of the Fund 
                                will, within 6 months of such 
                                determination, fall below the 
                                minimum amount specified in 
                                subparagraph (C); or
                                  (II) the equity ratio of the 
                                Fund actually falls below the 
                                minimum amount specified in 
                                subparagraph (C) without any 
                                determination under sub-clause 
                                (I) having been made,
                        the Board shall establish and implement 
                        a restoration plan within 90 days that 
                        meets the requirements of clause (ii) 
                        and such other conditions as the Board 
                        determines to be appropriate.
                          (ii) Requirements of restoration 
                        plan.--A restoration plan meets the 
                        requirements of this clause if the plan 
                        provides that the equity ratio of the 
                        Fund will meet or exceed the minimum 
                        amount specified in subparagraph (C) 
                        before the end of the 8-year period 
                        beginning upon the implementation of 
                        the plan (or such longer period as the 
                        Board may determine to be necessary due 
                        to extraordinary circumstances).
                          (iii) Transparency.--Not more than 30 
                        days after the Board establishes and 
                        implements a restoration plan under 
                        clause (i), the Board shall publish in 
                        the Federal Register a detailed 
                        analysis of the factors considered and 
                        the basis for the actions taken with 
                        regard to the plan.
          (3) Distributions from fund required.--
                  (A) In general.--The Board shall, subject to 
                the requirements of section 217(e), effect a 
                pro rata distribution to insured credit unions 
                after each calendar year if, as of the end of 
                that calendar year--
                          (i) any loans to the Fund from the 
                        Federal Government, and any interest on 
                        those loans, have been repaid;
                          (ii) the Fund's equity ratio exceeds 
                        the normal operating level; and
                          (iii) the Fund's available assets 
                        ratio exceeds 1.0 percent.
                  (B) Amount of distribution.--The Board shall 
                distribute under subparagraph (A) the maximum 
                possible amount that--
                          (i) does not reduce the Fund's equity 
                        ratio below the normal operating level; 
                        and
                          (ii) does not reduce the Fund's 
                        available assets ratio below 1.0 
                        percent.
                  (C) Calculation based on certified 
                statements.--In calculating the Fund's equity 
                ratio and available assets ratio for purposes 
                of this paragraph, the Board shall determine 
                the aggregate amount of the insured shares in 
                all insured credit unions from insured credit 
                unions certified statements under subsection 
                (b) for the final reporting period of the 
                calendar year referred to in subparagraph (A).
          (4) Timeliness and accuracy of data.--In calculating 
        the available assets ratio and equity ratio of the 
        Fund, the Board shall use the most current and accurate 
        data reasonably available.
  (d)
          (1) If, in the judgment of the Board, a loan to the 
        insurance fund, or to the stabilization fund described 
        in section 217 of this title, is required at any time 
        for purposes of this subchapter, the Secretary of the 
        Treasury shall make the loan, but loans under this 
        paragraph shall not exceed in the aggregate 
        $6,000,000,000 outstanding at any one time. Except as 
        otherwise provided in this subsection, section 217, and 
        in subsection (e) of this section, each loan under this 
        paragraph shall be made on such terms as may be fixed 
        by agreement between the Board and the Secretary of the 
        Treasury.
          (2) Penalty for failure to make accurate certified 
        statement or to pay deposit or premium.--
                  (A) First tier.--Any insured credit union 
                which--
                          (i) maintains procedures reasonably 
                        adapted to avoid any inadvertent error 
                        and, unintentionally and as a result of 
                        such an error, fails to submit any 
                        certified statement under subsection 
                        (b)(1) within the period of time 
                        required or submits a false or 
                        misleading certified statement under 
                        such subsection; or
                          (ii) submits the statement at a time 
                        which is minimally after the time 
                        required,
                shall be subject to a penalty of not more than 
                $2,000 for each day during which such failure 
                continues or such false and misleading 
                information is not corrected. The insured 
                credit union shall have the burden of proving 
                that an error was inadvertent or that a 
                statement was inadvertently submitted late.
                  (B) Second tier.--Any insured credit union 
                which--
                          (i) fails to submit any certified 
                        statement under subsection (b)(1) 
                        within the period of time required or 
                        submits a false or misleading certified 
                        statement in a manner not described in 
                        subparagraph (A); or
                          (ii) fails or refuses to pay any 
                        deposit or premium for insurance 
                        required under this title,
                shall be subject to a penalty of not more than 
                $20,000 for each day during which such failure 
                continues, such false and misleading 
                information is not corrected, or such deposit 
                or premium is not paid.
                  (C) Third tier.--Notwithstanding 
                subparagraphs (A) and (B), if any insured 
                credit union knowingly or with reckless 
                disregard for the accuracy of any certified 
                statement under subsection (b)(1) submits a 
                false or misleading certified statement under 
                such subsection, the Board may assess a penalty 
                of not more than $1,000,000 or not more than 1 
                percent of the total assets of the credit 
                union, whichever is less, per day for each day 
                during which the failure continues or the false 
                or misleading information in such statement is 
                not corrected.
                  (D) Assessment procedure.--Any penalty 
                imposed under this paragraph shall be assessed 
                and collected by the Board in the manner 
                provided in section 206(k)(2) (for penalties 
                imposed under such section) and any such 
                assessment (including the determination of the 
                amount of the penalty) shall be subject to the 
                provisions of such section.
                  (E) Hearing.--Any insured credit union 
                against which any penalty is assessed under 
                this paragraph shall be afforded an agency 
                hearing if the credit union submits a request 
                for such hearing within 20 days after the 
                issuance of the notice of the assessment. 
                Section 206(j) shall apply to any proceeding 
                under this subparagraph.
                  (F) Special rule for disputed payments.--No 
                penalty may be assessed for the failure of any 
                insured credit union to pay any deposit or 
                premium for insurance if--
                          (i) the failure is due to a dispute 
                        between the credit union and the Board 
                        over the amount of the deposit or 
                        premium which is due from the credit 
                        union; and
                          (ii) the credit union deposits 
                        security satisfactory to the Board for 
                        payment of the deposit or insurance 
                        premium upon final determination of the 
                        dispute.
  (3) No insured credit union shall pay any dividends on its 
insured shares or distribute any of its assets while it remains 
in default in the payment of its deposit or any premium charge 
for insurance due to the fund. Any director or officer of any 
insured credit union who knowingly participates in the 
declaration or payment of any such dividend or in any such 
distribution shall, upon conviction, be fined not more than 
$1,000 or imprisoned not more than one year, or both. The 
provisions of this paragraph shall not be applicable in any 
case in which the default is due to a dispute between the 
credit union and the Board over the amount of its deposit or 
the premium charge due to the fund if the credit union deposits 
security satisfactory to the Board for payment of its deposit 
or the premium charge upon final determination of the issue.
          (4) Temporary increases authorized.--
                  (A) Recommendations for increase.--During the 
                period beginning on the date of enactment of 
                this paragraph and ending on December 31, 2010, 
                if, upon the written recommendation of the 
                Board (upon a vote of not less than two-thirds 
                of the members of the Board) and the Board of 
                Governors of the Federal Reserve System (upon a 
                vote of not less than two-thirds of the members 
                of such Board), the Secretary of the Treasury 
                (in consultation with the President) determines 
                that additional amounts above the 
                $6,000,000,000 amount specified in paragraph 
                (1) are necessary, such amount shall be 
                increased to the amount so determined to be 
                necessary, not to exceed $30,000,000,000.
                  (B) Report required.--If the borrowing 
                authority of the Board is increased above 
                $6,000,000,000 pursuant to subparagraph (A), 
                the Board shall promptly submit a report to the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Financial Services of the House of 
                Representatives describing the reasons and need 
                for the additional borrowing authority and its 
                intended uses.
  (e) The Board, in a suit brought at law or in equity in any 
court of competent jurisdiction, shall be entitled to recover 
from any insured credit union the amount of any unpaid deposit 
or premium charge for insurance lawfully payable by the credit 
union to the fund, whether or not such credit union shall have 
made any report of condition under subsection (a) of this 
section or filed any certified statement required under 
subsection (b) of this section and whether or not suit shall 
have been brought to compel the credit union to make any such 
report or to file any such statement. No action or proceeding 
shall be brought for the recovery of any deposit or premium 
charge due to the fund, or for the recovery of any amount paid 
to the fund in excess of the amount due it, unless such action 
or proceeding shall have been brought within five years after 
the right accrued for which the claim is made. Where the 
insured credit union has made or filed with the Board a false 
or fraudulent certified statement with the intent to evade, in 
whole or in part, the payment of its deposit or any premium 
charge, the claim shall not be deemed to have accrued until the 
discovery by the Board of the fact that the certified statement 
is false or fraudulent.
  (f) Should any Federal credit union fail to make any report 
of condition under subsection (a) of this section or to file 
any certified statement required to be filed under subsection 
(b) of this section or to pay its deposit or any premium charge 
for insurance required to be paid under any provision of this 
title, and should the credit union fail to correct such failure 
within thirty days after written notice has been given by the 
Board to an officer of the credit union, citing this subsection 
and stating that the credit union has failed to make any such 
report or file any such statement or pay any such deposit or 
premium charge as required by law, all the rights, privileges, 
and franchises of the credit union granted to it under title I 
of this Act shall be thereby forfeited. Whether or not the 
penalty provided in this subsection has been incurred shall be 
determined and adjudged by any court of the United States of 
competent jurisdiction in a suit brought for that purpose in 
the district or territory in which the principal office of such 
credit union is located, under direction of and by the Board in 
its own name, before the credit union shall be declared 
dissolved. The remedies provided in this subsection and in 
subsections (d) and (e) of this section shall not be construed 
as limiting any other remedies against any insured credit union 
but shall be in addition thereto.
  (g) Each insured credit union shall maintain such records as 
will readily permit verification of the correctness of its 
reports of condition, certified statements, and deposit and 
premium charges for insurance. However, no insured credit union 
shall be required to retain such records for such purpose for a 
period in excess of five years from the date of the making of 
any such report, the filing of any such statement, or the 
payment of any deposit or adjustment thereof or any premium 
charge, except that when there is a dispute between the insured 
credit union and the Board over the amount of any deposit or 
adjustment thereof or any premium charge for insurance the 
credit union shall retain such records until final 
determination of the issue.
  (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Available assets ratio.--The term ``available 
        assets ratio'', when applied to the Fund, means the 
        ratio of--
                  (A) the amount determined by subtracting--
                          (i) direct liabilities of the Fund 
                        and contingent liabilities for which no 
                        provision for losses has been made, 
                        from
                          (ii) the sum of cash and the market 
                        value of unencumbered investments 
                        authorized under section 203(c), to
                  (B) the aggregate amount of the insured 
                shares in all insured credit unions.
          (2) Equity ratio.--The term ``equity ratio'', which 
        shall be calculated using the financial statements of 
        the Fund alone, without any consolidation or 
        combination with the financial statements of any other 
        fund or entity, means the ratio of--
                  (A) the amount of Fund capitalization, 
                including insured credit unions' 1 percent 
                capitalization deposits and the retained 
                earnings balance of the Fund (net of direct 
                liabilities of the Fund and contingent 
                liabilities for which no provision for losses 
                has been made); to
                  (B) the aggregate amount of the insured 
                shares in all insured credit unions.
          (3) Insured shares.--The term ``insured shares'', 
        when applied to this section, includes share, share 
        draft, share certificate, and other similar accounts as 
        determined by the Board, but does not include amounts 
        exceeding the insured account limit set forth in 
        section 207(k)(1).
          (4) Normal operating level.--The term ``normal 
        operating level'', when applied to the Fund, means an 
        equity ratio specified by the Board, which shall be not 
        less than 1.2 percent and not more than 1.5 percent.

           *       *       *       *       *       *       *

              requirements governing insured credit unions

  Sec. 205. (a) Insurance Logo.--
          (1) Insured credit unions.--
                  (A) In general.--Each insured credit union 
                shall display at each place of business 
                maintained by that credit union a sign or signs 
                relating to the insurance of the share accounts 
                of the institution, in accordance with 
                regulations to be prescribed by the Board.
                  (B) Statement to be included.--Each sign 
                required under subparagraph (A) shall include a 
                statement that insured share accounts are 
                backed by the full faith and credit of the 
                United States Government.
          (2) Regulations.--The Board shall prescribe 
        regulations to carry out this subsection, including 
        regulations governing the substance of signs required 
        by paragraph (1) and the manner of display or use of 
        such signs.
          (3) Penalties.--For each day that an insured credit 
        union continues to violate this subsection or any 
        regulation issued under this subsection, it shall be 
        subject to a penalty of not more than $100, which the 
        Board may recover for its use.
  (b)(1) Except as provided in paragraph (2), no insured credit 
union shall, without the prior approval of the Board--
          (A) merge or consolidate with any noninsured credit 
        union or institution;
          (B) assume liability to pay any member accounts in, 
        or similar liabilities of, any noninsured credit union 
        or institution;
          (C) transfer assets to any noninsured credit union or 
        institution in consideration of the assumption of 
        liabilities for any portion of the member accounts in 
        such insured credit union; or
          (D) convert into a noninsured credit union or 
        institution.
          (2) Conversion of insured credit unions to mutual 
        savings banks.--
                  (A) In general.--Notwithstanding paragraph 
                (1), an insured credit union may convert to a 
                mutual savings bank or savings association (if 
                the savings association is in mutual form), as 
                those terms are defined in section 3 of the 
                Federal Deposit Insurance Act, without the 
                prior approval of the Board, subject to the 
                requirements and procedures set forth in the 
                laws and regulations governing mutual savings 
                banks and savings associations.
                  (B) Conversion proposal.--A proposal for a 
                conversion described in subparagraph (A) shall 
                first be approved, and a date set for a vote 
                thereon by the members (either at a meeting to 
                be held on that date or by written ballot to be 
                filed on or before that date), by a majority of 
                the directors of the insured credit union. 
                Approval of the proposal for conversion shall 
                be by the affirmative vote of a majority of the 
                members of the insured credit union who vote on 
                the proposal.
                  (C) Notice of proposal to members.--An 
                insured credit union that proposes to convert 
                to a mutual savings bank or savings association 
                under subparagraph (A) shall submit notice to 
                each of its members who is eligible to vote on 
                the matter of its intent to convert--
                          (i) 90 days before the date of the 
                        member vote on the conversion;
                          (ii) 60 days before the date of the 
                        member vote on the conversion; and
                          (iii) 30 days before the date of the 
                        member vote on the conversion.
                  (D) Notice of proposal to board.--The Board 
                may require an insured credit union that 
                proposes to convert to a mutual savings bank or 
                savings association under subparagraph (A) to 
                submit a notice to the Board of its intent to 
                convert during the 90-day period preceding the 
                date of the completion of the conversion.
                  (E) Inapplicability of act upon conversion.--
                Upon completion of a conversion described in 
                subparagraph (A), the credit union shall no 
                longer be subject to any of the provisions of 
                this Act.
                  (F) Limit on compensation of officials.--
                          (i) In general.--No director or 
                        senior management official of an 
                        insured credit union may receive any 
                        economic benefit in connection with a 
                        conversion of the credit union as 
                        described in subparagraph (A), other 
                        than--
                                  (I) director fees; and
                                  (II) compensation and other 
                                benefits paid to directors or 
                                senior management officials of 
                                the converted institution in 
                                the ordinary course of 
                                business.
                          (ii) Senior management official.--For 
                        purposes of this subparagraph, the term 
                        ``senior management official'' means a 
                        chief executive officer, an assistant 
                        chief executive officer, a chief 
                        financial officer, and any other senior 
                        executive officer (as defined by the 
                        appropriate Federal banking agency 
                        pursuant to section 32 (f) of the 
                        Federal Deposit Insurance Act).
                  (G) Consistent rules.--
                          (i) In general.--Not later than 6 
                        months after the date of enactment of 
                        the Credit Union Membership Access Act, 
                        the Administration shall promulgate 
                        final rules applicable to charter 
                        conversions described in this paragraph 
                        that are consistent with rules 
                        promulgated by other financial 
                        regulators, including the Office of the 
                        Comptroller of the Currency. The rules 
                        required by this clause shall provide 
                        that charter conversion by an insured 
                        credit union shall be subject to 
                        regulation that is no more or less 
                        restrictive than that applicable to 
                        charter conversions by other financial 
                        institutions.
                          (ii) Oversight of member vote.--The 
                        member vote concerning charter 
                        conversion under this paragraph shall 
                        be administered by the Administration, 
                        and shall be verified by the Federal or 
                        State regulatory agency that would have 
                        jurisdiction over the institution after 
                        the conversion. If either the 
                        Administration or that regulatory 
                        agency disapproves of the methods by 
                        which the member vote was taken or 
                        procedures applicable to the member 
                        vote, the member vote shall be taken 
                        again, as directed by the 
                        Administration or the agency.
  (3) Except with the prior written approval of the Board, no 
insured credit union shall merge or consolidate with any other 
insured credit union or, either directly or indirectly, acquire 
the assets of, or assume liability to pay any member accounts 
in, any other insured credit union.
  (c) In granting or withholding approval or consent under 
subsection (b) of this section, the Board shall consider--
          (1) the history, financial condition, and management 
        policies of the credit union;
          (2) the adequacy of the credit union's reserves;
          (3) the economic advisability of the transaction;
          (4) the general character and fitness of the credit 
        union's management;
          (5) the convenience and needs of the members to be 
        served by the credit union; and
          (6) whether the credit union is a cooperative 
        association organized for the purpose of promoting 
        thrift among its members and creating a source of 
        credit for provident or productive purposes.
  (d) Prohibition.--
          (1) In general.--Except with prior written consent of 
        the Board--
                  (A) any person who has been convicted of any 
                criminal offense involving dishonesty or a 
                breach of trust, or has agreed to enter into a 
                pretrial diversion or similar program in 
                connection with a prosecution for such offense, 
                may not--
                          (i) become, or continue as, an 
                        institution-affiliated party with 
                        respect to any insured credit union; or
                          (ii) otherwise participate, directly 
                        or indirectly, in the conduct of the 
                        affairs of any insured credit union; 
                        and
                  (B) any insured credit union may not permit 
                any person referred to in subparagraph (A) to 
                engage in any conduct or continue any 
                relationship prohibited under such 
                subparagraph.
          (2) Minimum 10-year prohibition period for certain 
        offenses.--
                  (A) In general.--If the offense referred to 
                in paragraph (1)(A) in connection with any 
                person referred to in such paragraph is--
                          (i) an offense under--
                                  (I) section 215, 656, 657, 
                                1005, 1006, 1007, 1008, 1014, 
                                1032, 1344, 1517, 1956, or 1957 
                                of title 18, United States 
                                Code; or
                                  (II) section 1341 or 1343 of 
                                such title which affects any 
                                financial institution (as 
                                defined in section 20 of such 
                                title); or
                          (ii) the offense of conspiring to 
                        commit any such offense,
                the Board may not consent to any exception to 
                the application of paragraph (1) to such person 
                during the 10-year period beginning on the date 
                the conviction or the agreement of the person 
                becomes final.
                  (B) Exception by order of sentencing court.--
                          (i) In general.--On motion of the 
                        Board, the court in which the 
                        conviction or the agreement of a person 
                        referred to in subparagraph (A) has 
                        been entered may grant an exception to 
                        the application of paragraph (1) to 
                        such person if granting the exception 
                        is in the interest of justice.
                          (ii) Period for filing.--A motion may 
                        be filed under clause (i) at any time 
                        during the 10-year period described in 
                        subparagraph (A) with regard to the 
                        person on whose behalf such motion is 
                        made.
          (3) Penalty.--Whoever knowingly violates paragraph 
        (1) or (2) shall be fined not more than $1,000,000 for 
        each day such prohibition is violated or imprisoned for 
        not more than 5 years, or both.
  (e)(1) The Board shall promulgate rules establishing minimum 
standards with which each insured credit union must comply with 
respect to the installation, maintenance, and operation of 
security devices and procedures, reasonable in cost, to 
discourage robberies, burglaries, and larcenies and to assist 
in the identification and apprehension of persons who commit 
such acts.
  (2) The rules shall establish the time limits within which 
insured credit unions shall comply with the standards and shall 
require the submission of periodic reports with respect to the 
installation, maintenance, and operation of security devices 
and procedures.
  (3) An insured credit union which violates a rule promulgated 
pursuant to this subsection shall be subject to a civil penalty 
which shall not exceed $100 for each day of the violation.
  (f)(1) Every insured credit union is authorized to maintain, 
and make loans with respect to, share draft accounts in 
accordance with rules and regulations prescribed by the Board. 
Except as provided in paragraph (2), an insured credit union 
may pay dividends on share draft accounts and may permit the 
owners of such share draft accounts to make withdrawals by 
negotiable or transferable instruments or other orders for the 
purpose of making transfers to third parties.
  (2) Paragraph (1) shall apply only with respect to share 
draft accounts in which the entire beneficial interest is held 
by one or more individuals or members or by an organization 
which is operated primarily for religious, philanthropic, 
charitable, educational, or other similar purposes and which is 
not operated for profit, and with respect to deposits of public 
funds by an officer, employee, or agent of the United States, 
any State, county, municipality, or political subdivision 
thereof, the District of Columbia, the Commonwealth of Puerto 
Rico, American Samoa, Guam, any territory or possession of the 
United States, or any political subdivision thereof.
  (g)(1) If the applicable rate prescribed in this subsection 
exceeds the rate an insured credit union would be permitted to 
charge in the absence of this subsection, such credit union 
may, notwithstanding any State constitution or statute which is 
hereby preempted for the purposes of this subsection, take, 
receive, reserve, and charge on any loan, interest at a rate of 
not more than 1 per centum in excess of the discount rate on 
ninety-day commercial paper in effect at the Federal Reserve 
bank in the Federal Reserve district where such insured credit 
union is located or at the rate allowed by the laws of the 
State, territory, or district where such credit union is 
located, whichever may be greater. A loan that is valid when 
made as to its maximum rate of interest in accordance with this 
subsection shall remain valid with respect to such rate 
regardless of whether the loan is subsequently sold, assigned, 
or otherwise transferred to a third party, and may be enforced 
by such third party notwithstanding any State law to the 
contrary.
  (2) If the rate prescribed in paragraph (1) exceeds the rate 
such credit union would be permitted to charge in the absence 
of this subsection, and such State fixed rate is thereby 
preempted by the rate described in paragraph (1), the taking, 
receiving, reserving, or charging a greater rate than is 
allowed by paragraph (1), when knowingly done, shall be deemed 
a forfeiture of the entire interest which the loan carries with 
it, or which has been agreed to be paid thereon. If such 
greater rate of interest has been paid, the person who paid it 
may recover, in a civil action commenced in a court of 
appropriate jurisdiction not later than two years after the 
date of such payment, an amount equal to twice the amount of 
interest paid from the credit union taking or receiving such 
interest.
  (h) Notwithstanding any other provision of law, the Board may 
authorize a merger or consolidation of an insured credit union 
which is insolvent or is in danger of insolvency with any other 
insured credit union or may authorize an insured credit union 
to purchase any of the assets of, or assume any of the 
liabilities of, any other insured credit union which is 
insolvent or in danger of insolvency if the Board is satisfied 
that--
          (1) an emergency requiring expeditious action exists 
        with respect to such other insured credit union;
          (2) other alternatives are not reasonably available; 
        and
          (3) the public interest would best be served by 
        approval of such merger, consolidation, purchase, or 
        assumption.
  (i)(1) Notwithstanding any other provision of this Act or of 
State law, the Board may authorize an institution whose 
deposits or accounts are insured by the Federal Deposit 
Insurance Corporation to purchase any of the assets of or 
assume any of the liabilities of an insured credit union which 
is insolvent or in danger of insolvency, except that prior to 
exercising this authority the Board must attempt to effect the 
merger or consolidation of an insured credit union which is 
insolvent or in danger of insolvency with another insured 
credit union, as provided in subsection (h).
  (2) For purposes of the authority contained in paragraph (1), 
insured accounts of the credit union may upon consummation of 
the purchase and assumption be converted to insured deposits or 
other comparable accounts in the acquiring institution, and the 
Board and the National Credit Union Share Insurance Fund shall 
be absolved of any liability to the credit union's members with 
respect to those accounts.
  (j) Privileges Not Affected by Disclosure to Banking Agency 
or Supervisor.--
          (1) In general.--The submission by any person of any 
        information to the Administration, any State credit 
        union supervisor, or foreign banking authority for any 
        purpose in the course of any supervisory or regulatory 
        process of such Board, supervisor, or authority shall 
        not be construed as waiving, destroying, or otherwise 
        affecting any privilege such person may claim with 
        respect to such information under Federal or State law 
        as to any person or entity other than such Board, 
        supervisor, or authority.
          (2) Rule of construction.--No provision of paragraph 
        (1) may be construed as implying or establishing that--
                  (A) any person waives any privilege 
                applicable to information that is submitted or 
                transferred under any circumstance to which 
                paragraph (1) does not apply; or
                  (B) any person would waive any privilege 
                applicable to any information by submitting the 
                information to the Administration, any State 
                credit union supervisor, or foreign banking 
                authority, but for this subsection.

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                              ----------                              

REVISED STATUTES OF THE UNITED STATES

           *       *       *       *       *       *       *

TITLE LXII--NATIONAL BANKS.

           *       *       *       *       *       *       *

CHAPTER THREE--REGULATION OF THE BANKING BUSINESS.

           *       *       *       *       *       *       *

  Sec. 5197. Any association may take, receive, reserve, and 
charge on any loan or discount made, or upon any notes, bills 
of exchange, or other evidences of debt, interest at the rate 
allowed by the laws of the State, Territory, or District where 
the bank is located, or at a rate of 1 per centum in excess of 
the discount rate on ninety-day commercial paper in effect at 
the Federal reserve bank in the Federal reserve district where 
the bank is located, whichever may be the greater, and no more, 
except that where by the laws of any State a different rate is 
limited for banks organized under State laws, the rate so 
limited shall be allowed for associations organized or existing 
in any such State under this title. When no rate is fixed by 
the laws of the State, or Territory, or District, the bank may 
take, receive, reserve, or charge a rate not exceeding 7 per 
centum, or 1 per centum in excess of the discount rate on 
ninety-day commercial paper in effect at the Federal reserve 
bank in the Federal reserve district where the bank is located, 
whichever may be the greater, and such interest may be taken in 
advance, reckoning the days for which the note, bill, or other 
evidence of debt has to run. The maximum amount of interest or 
discount to be charged at a branch of an association located 
outside of the States of the United States and the District of 
Columbia shall be at the rate allowed by the laws of the 
country, territory, dependency, province, dominion, insular 
possession, or other political subdivision where the branch is 
located. And the purchase, discount, or sale of a bona-fide 
bill of exchange, payable at another place than the place of 
such purchase, discount, or sale, at not more than the current 
rate of exchange for sight-drafts in addition to the interest, 
shall not be considered as taking or receiving a greater rate 
of interest. A loan that is valid when made as to its maximum 
rate of interest in accordance with this section shall remain 
valid with respect to such rate regardless of whether the loan 
is subsequently sold, assigned, or otherwise transferred to a 
third party, and may be enforced by such third party 
notwithstanding any State law to the contrary.

           *       *       *       *       *       *       *

CHAPTER FOUR--DISSOLUTION AND RECEIVERSHIP.

           *       *       *       *       *       *       *

  Sec. 5240. The Comptroller of the Currency, with the approval 
of the Secretary of the Treasury, shall appoint examiners who 
shall examine every national bank as often as the Comptroller 
of the Currency shall deem necessary. The examiner making the 
examination of any national bank shall have power to make a 
thorough examination of all the affairs of the bank and in 
doing so he shall have power to administer oaths and to examine 
any of the officers and agents thereof under oath and shall 
make a full and detailed report of the condition of said bank 
to the Comptroller of the Currency: Provided, That in making 
the examination of any national bank the examiners shall 
include such an examination of the affairs of all its 
affiliates other than member banks as shall be necessary to 
disclose fully the relations between such bank and such 
affiliates and the effect of such relations upon the affairs of 
such bank; and in the event of the refusal to give any 
information required in the course of the examination of any 
such affiliate, or in the event of the refusal to permit such 
examination, all the rights, privileges, and franchises of the 
bank shall be subject to forfeiture in accordance with section 
2 of the Federal Reserve Act, as amended (U.S.C., title 12, 
secs. 141, 222-225, 281-286, and 502). The Comptroller of the 
Currency shall have power, and he is hereby authorized, to 
publish the report of his examination of any national banking 
association or affiliate which shall not within one hundred and 
twenty days after notification of the recommendations or 
suggestions of the Comptroller, based on said examination, have 
complied with the same to his satisfaction. Ninety days' notice 
prior to such publicity shall be given to the bank or 
affiliate.
   The examiner making the examination of any affiliate of a 
national bank shall have power to make a thorough examination 
of all the affairs of the affiliate, and in doing so he shall 
have power to administer oaths and to examine any of the 
officers, directors, employees, and agents thereof under oath 
and to make a report of his findings to the Comptroller of the 
Currency. If any affiliate of a national bank refuses to pay 
any assessments, fees, or other charges imposed by the 
Comptroller of the Currency pursuant to this section or fails 
to make such payment not later than 60 days after the date on 
which they are imposed, the Comptroller of the Currency may 
impose such assessments, fees, or charges against the 
affiliated national bank, and such assessments, fees, or 
charges shall be paid by such national bank. If the affiliation 
is with 2 or more national banks, such assessments, fees, or 
charges may be imposed on, and collected from, any or all of 
such national banks in such proportions as the Comptroller of 
the Currency may prescribe. The examiners and assistant 
examiners making the examinations of national banking 
associations and affiliates thereof herein provided for and the 
chief examiners, reviewing examiners and other persons whose 
services may be required in connection with such examinations 
or the reports thereof, shall be employed by the Comptroller of 
the Currency with the approval of the Secretary of the 
Treasury; the employment and compensation of examiners, chief 
examiners, reviewing examiners, assistant examiners, and of the 
other employees of the office of the Comptroller of the 
Currency whose compensation is and shall be paid from 
assessments on banks or affiliates thereof or from other fees 
or charges imposed pursuant to this section shall be set and 
adjusted subject to chapter 71 of title 5, United States Code, 
and without regard to the provisions of other laws applicable 
to officers or employees of the United States. The funds 
derived from such assessments, fees, or charges may be 
deposited by the Comptroller of the Currency in accordance with 
the provisions of section 5234 of the Revised Statutes (U.S.C., 
title 12, sec. 192) and shall not be construed to be Government 
funds or appropriated monies; and the Comptroller of the 
Currency is authorized and empowered to prescribe regulations 
governing the computation and assessment of the expenses of 
examinations herein provided for and the collection of such 
assessments from the banks and/or affiliates examined or of 
other fees or charges imposed pursuant to this section. Such 
funds shall not be subject to apportionment for the purpose of 
chapter 15 of title 31, United States Code, or under any other 
authority. If any affiliate of a national bank shall refuse to 
permit an examiner to make an examination of the affiliate or 
shall refuse to give any information required in the course of 
any such examination, the national bank with which it is 
affiliated shall be subject to a penalty of not more than 
$5,000 for each day that any such refusal shall continue. Such 
penalty may be assessed by the Comptroller of the Currency and 
collected in the same manner as expenses of examinations.
   Notwithstanding any of the preceding provisions of this 
section or section 301(f)(1) of title 31, United States Code, 
to the contrary, the Comptroller of the Currency shall, subject 
to chapter 71 of title 5, United States Code, fix the 
compensation and number of, and appoint and direct, all 
employees of the Office of the Comptroller of the Currency. 
Rates of basic pay for all employees of the Office may be set 
and adjusted by the Comptroller without regard to the 
provisions of chapter 51 or subchapter III of chapter 53 of 
title 5, United States Code. The Comptroller may provide 
additional compensation and benefits to employees of the Office 
if the same type of compensation or benefits are then being 
provided by any other Federal bank regulatory agency or, if not 
then being provided, could be provided by such an agency under 
applicable provisions of law, rule, or regulations. In setting 
and adjusting the total amount of compensation and benefits for 
employees of the Office, the Comptroller shall consult with, 
and seek to maintain comparability with, other Federal banking 
agencies.
  [
   [The Comptroller of the Currency may impose and collect 
assessments, fees, or other charges as necessary or appropriate 
to carry out the responsibilities of the office of the 
Comptroller. Such assessments, fees, and other charges shall be 
set to meet the Comptroller's expenses in carrying out 
authorized activities. ]
   In addition to the examinations made and conducted by the 
Comptroller of the Currency, every Federal reserve bank may, 
with the approval of the Federal reserve agent or the Board of 
Governors of the Federal Reserve System, provide for special 
examination of member banks within its district. The expense of 
such examinations may, in the discretion of the Board of 
Governors of the Federal Reserve System, be assessed against 
the banks examined, and, when so assessed, shall be paid by the 
banks examined. Such examinations shall be so conducted as to 
inform the Federal reserve bank of the condition of its member 
banks and of the lines of credit which are being extended by 
them. Every Federal reserve bank shall at all times furnish to 
the Board of Governors of the Federal Reserve System such 
information as may be demanded concerning the condition of any 
member bank within the distict of the said Federal reserve 
bank.
          
          (A) No national bank shall be subject to any 
        visitorial powers except as authorized by Federal law, 
        vested in the courts of justice or such as shall be, or 
        have been exercised or directed by Congress or by 
        either House thereof or by any committee of Congress or 
        of either House duly authorized.
          (B) Notwithstanding subparagraph (A), lawfully 
        authorized State auditors and examiners may, at 
        reasonable times and upon reasonable notice to a bank, 
        review its records solely to ensure compliance with 
        applicable State unclaimed property or escheat laws 
        upon reasonable cause to believe that the bank has 
        failed to comply with such laws.
  The Board of Governors of the Federal Reserve System shall, 
at least once each year, order an examination of each Federal 
reserve bank, and upon joint application of ten member banks 
the Board of Governors of the Federal Reserve System shall 
order a special examination and report of the condition of any 
Federal reserve bank. The Comptroller of the Currency, upon the 
request of the Board of Governors of the Federal Reserve 
System, is authorized to assign examiners appointed under this 
section to examine foreign operations of State banks which are 
members of the Federal Reserve System.
  [Sec. 5240A. The Comptroller of the Currency may collect an 
assessment, fee, or other charge from any entity described in 
section 3(q)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(q)(1)), as the Comptroller determines is necessary or 
appropriate to carry out the responsibilities of the Office of 
the Comptroller of the Currency. In establishing the amount of 
an assessment, fee, or charge collected from an entity under 
this section, Funds derived from any assessment, fee, or charge 
collected or payment made pursuant to this section may be 
deposited by the Comptroller of the Currency in accordance with 
the provisions of section 5234. Such funds shall not be 
construed to be Government funds or appropriated monies, and 
shall not be subject to apportionment for purposes of chapter 
15 of title 31, United States Code, or any other provision of 
law. The authority of the Comptroller of the Currency under 
this section shall be in addition to the authority under 
section 5240.
   [The Comptroller of the Currency shall have sole authority 
to determine the manner in which the obligations of the Office 
of the Comptroller of the Currency shall be incurred and its 
disbursements and expenses allowed and paid, in accordance with 
this section, except as provided in chapter 71 of title 5, 
United States Code (with respect to compensation).]

SEC.  5240A.

  (a) In general.--In establishing the amount of an assessment, 
fee, or charge collected from an entity under subsection (b), 
the Comptroller of the Currency may take into account the 
nature and scope of the activities of the entity, the amount 
and type of assets that the entity holds, the financial and 
managerial condition of the entity, and any other factor, as 
the Comptroller of the Currency determines is appropriate.
  (b) Appropriations Requirement.--
          (1) Recovery of costs of annual appropriation.--The 
        Comptroller of the Currency shall impose and collect 
        assessments, fees, or other charges that are designed 
        to recover the costs to the Government of the annual 
        appropriation to the Office of the Comptroller of the 
        Currency by Congress.
          (2) Offsetting collections.--Assessments and other 
        fees described under paragraph (1) for any fiscal 
        year--
                  (A) shall be deposited and credited as 
                offsetting collections to the account providing 
                appropriations to the Office of the Comptroller 
                of the Currency; and
                  (B) except as provided in paragraph (3), 
                shall not be collected for any fiscal year 
                except to the extent provided in advance in 
                appropriation Acts.
          (3) Lapse of appropriation.--If on the first day of a 
        fiscal year an appropriation to the Office of the 
        Comptroller of the Currency has not been enacted, the 
        Comptroller of the Currency shall continue to collect 
        (as offsetting collections) the assessments and other 
        fees described under paragraph (1) at the rate in 
        effect during the preceding fiscal year, until 60 days 
        after the date such an appropriation is enacted.

           *       *       *       *       *       *       *

                              ----------                              

FEDERAL RESERVE ACT

           *       *       *       *       *       *       *

SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON-MONETARY POLICY RELATED 
                    ADMINISTRATIVE COSTS.

  (a) Appropriations Requirement.--
          (1) Recovery of costs of annual appropriation.--The 
        Board of Governors of the Federal Reserve System and 
        the Federal reserve banks shall collect assessments and 
        other fees, as provided under this Act, that are 
        designed to recover the costs to the Government of the 
        annual appropriation to the Board of Governors of the 
        Federal Reserve System by Congress. The Board of 
        Governors of the Federal Reserve System and the Federal 
        reserve banks may only incur obligations or allow and 
        pay expenses with respect to non-monetary policy 
        related administrative costs pursuant to an 
        appropriations Act.
          (2) Offsetting collections.--Assessments and other 
        fees described under paragraph (1) for any fiscal 
        year--
                  (A) shall be deposited and credited as 
                offsetting collections to the account providing 
                appropriations to the Board of Governors of the 
                Federal Reserve System; and
                  (B) shall not be collected for any fiscal 
                year except to the extent provided in advance 
                in appropriation Acts.
          (3) Limitation.--This subsection shall only apply to 
        the non-monetary policy related administrative costs of 
        the Board of Governors of the Federal Reserve System.
  (b) Definitions.--For purposes of this section:
          (1) Monetary policy.--The term ``monetary policy'' 
        means a strategy for producing a generally acceptable 
        exchange medium that supports the productive employment 
        of economic resources by reliably serving as both a 
        unit of account and store of value.
          (2) Non-monetary policy related administrative 
        costs.--The term ``non-monetary policy related 
        administrative costs'' means administrative costs not 
        related to the conduct of monetary policy, and 
        includes--
                  (A) direct operating expenses for supervising 
                and regulating entities supervised and 
                regulated by the Board of Governors of the 
                Federal Reserve System, including conducting 
                examinations, conducting stress tests, 
                communicating with the entities regarding 
                supervisory matters and laws, and regulations;
                  (B) operating expenses for activities 
                integral to carrying out supervisory and 
                regulatory responsibilities, such as training 
                staff in the supervisory function, research and 
                analysis functions including library 
                subscription services, and collecting and 
                processing regulatory reports filed by 
                supervised institutions; and
                  (C) support, overhead, and pension expenses 
                related to the items described under 
                subparagraphs (A) and (B).

           *       *       *       *       *       *       *

                              ----------                              

                    SECURITIES EXCHANGE ACT OF 1934

TITLE I--REGULATION OF SECURITIES EXCHANGES

           *       *       *       *       *       *       *

                                proxies

  Sec. 14. (a)(1) It shall be unlawful for any person, by the 
use of the mails or by any means or instrumentality of 
interstate commerce or of any facility of a national securities 
exchange or otherwise, in contravention of such rules and 
regulations as the Commission may prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors, to solicit or to permit the use of his name to 
solicit any proxy or consent or authorization in respect of any 
security (other than an exempted security) registered pursuant 
to section 12 of this title.
  (2) The rules and regulations prescribed by the Commission 
under paragraph (1) may include--
          (A) a requirement that a solicitation of proxy, 
        consent, or authorization by (or on behalf of) an 
        issuer include a nominee submitted by a shareholder to 
        serve on the board of directors of the issuer; and
          (B) a requirement that an issuer follow a certain 
        procedure in relation to a solicitation described in 
        subparagraph (A).
  (b)(1) It shall be unlawful for any member of a national 
securities exchange, or any broker or dealer registered under 
this title, or any bank, association, or other entity that 
exercises fiduciary powers, in contravention of such rules and 
regulations as the Commission may prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors, to give, or to refrain from giving a proxy, consent, 
authorization, or information statement in respect of any 
security registered pursuant to section 12 of this title, or 
any security issued by an investment company registered under 
the Investment Company Act of 1940, and carried for the account 
of a customer.
  (2) With respect to banks, the rules and regulations 
prescribed by the Commission under paragraph (1) shall not 
require the disclosure of the names of beneficial owners of 
securities in an account held by the bank on the date of 
enactment of this paragraph unless the beneficial owner 
consents to the disclosure. The provisions of this paragraph 
shall not apply in the case of a bank which the Commission 
finds has not made a good faith effort to obtain such consent 
from such beneficial owners.
  (c) Unless proxies, consents, or authorizations in respect of 
a security registered pursuant to section 12 of this title, or 
a security issued by an investment company registered under the 
Investment Company Act of 1940, are solicited by or on behalf 
of the management of the issuer from the holders of record of 
such security in accordance with the rules and regulations 
prescribed under subsection (a) of this section, prior to any 
annual or other meeting of the holders of such security, such 
issuer shall, in accordance with rules and regulations 
prescribed by the Commission, file with the Commission and 
transmit to all holders of record of such security information 
substantially equivalent to the information which would be 
required to be transmitted if a solicitation were made, but no 
information shall be required to be filed or transmitted 
pursuant to this subsection before July 1, 1964.
  (d)(1) It shall be unlawful for any person, directly or 
indirectly, by use of the mails or by any means or 
instrumentality of interstate commerce or of any facility of a 
national securities exchange or otherwise, to make a tender 
offer for, or a request or invitation for tenders of, any class 
of any equity security which is registered pursuant to section 
12 of this title, or any equity security of an insurance 
company which would have been required to be so registered 
except for the exemption contained in section 12(g)(2)(G) of 
this title, or any equity security issued by a closed-end 
investment company registered under the Investment Company Act 
of 1940, if, after consummation thereof, such person would, 
directly or indirectly, be the beneficial owner of more than 5 
per centum of such class, unless at the time copies of the 
offer or request or invitation are first published or sent or 
given to security holders such person has filed with the 
Commission a statement containing such of the information 
specified in section 13(d) of this title, and such additional 
information as the Commission may by rules and regulations 
prescribe as necessary or appropriate in the public interest or 
for the protection of investors. All requests or invitations 
for tenders or advertisements making a tender offer or 
requesting or inviting tenders, of such a security shall be 
filed as a part of such statement and shall contain such of the 
information contained in such statement as the Commission may 
by rules and regulations prescribe. Copies of any additional 
material soliciting or requesting such tender offers subsequent 
to the initial solicitation or request shall contain such 
information as the Commission may by rules and regulations 
prescribe as necessary or appropriate in the public interest or 
for the protection of investors, and shall be filed with the 
Commission not later than the time copies of such material are 
first published or sent or given to security holders. Copies of 
all statements, in the form in which such material is furnished 
to security holders and the Commission, shall be sent to the 
issuer not later than the date such material is first published 
or sent or given to any security holders.
  (2) When two or more persons act as a partnership, limited 
partnership, syndicate, or other group for the purpose of 
acquiring, holding, or disposing of securities of an issuer, 
such syndicate or group shall be deemed a ``person'' for 
purposes of this subsection.
  (3) In determining, for purposes of this subsection, any 
percentage of a class of any security, such class shall be 
deemed to consist of the amount of the outstanding securities 
of such class, exclusive of any securities of such class held 
by or for the account of the issuer or a subsidiary of the 
issuer.
  (4) Any solicitation or recommendation to the holders of such 
a security to accept or reject a tender offer or request or 
invitation for tenders shall be made in accordance with such 
rules and regulations as the Commission may prescribe as 
necessary or appropriate in the public interest or for the 
protection of investors.
  (5) Securities deposited pursuant to a tender offer or 
request or invitation for tenders may be withdrawn by or on 
behalf of the depositor at any time until the expiration of 
seven days after the time definitive copies of the offer or 
request or invitation are first published or sent or given to 
security holders, and at any time after sixty days from the 
date of the original tender offer or request or invitation, 
except as the Commission may otherwise prescribe by rules, 
regulations, or order as necessary or appropriate in the public 
interest or for the protection of investors.
  (6) Where any person makes a tender offer, or request or 
invitation for tenders, for less than all the outstanding 
equity securities of a class, and where a greater number of 
securities is deposited pursuant thereto within ten days after 
copies of the offer or request or invitation are first 
published or sent or given to security holders than such person 
is bound or willing to take up and pay for, the securities 
taken up shall be taken up as nearly as may be pro rata, 
disregarding fractions, according to the number of securities 
deposited by each depositor. The provisions of this subsection 
shall also apply to securities deposited within ten days after 
notice of an increase in the consideration offered to security 
holders, as described in paragraph (7), is first published or 
sent or given to security holders.
  (7) Where any person varies the terms of a tender offer or 
request or invitation for tenders before the expiration thereof 
by increasing the consideration offered to holders of such 
securities, such person shall pay the increased consideration 
to each security holder whose securities are taken up and paid 
for pursuant to the tender offer or request or invitation for 
tenders whether or not such securities have been taken up by 
such person before the variation of the tender offer or request 
or invitation.
  (8) The provisions of this subsection shall not apply to any 
offer for, or request or invitation for tenders of, any 
security--
          (A) if the acquisition of such security, together 
        with all other acquisitions by the same person of 
        securities of the same class during the preceding 
        twelve months, would not exceed 2 per centum of that 
        class;
          (B) by the issuer of such security; or
          (C) which the Commission, by rules or regulations or 
        by order, shall exempt from the provisions of this 
        subsection as not entered into for the purpose of, and 
        not having the effect of, changing or influencing the 
        control of the issuer or otherwise as not comprehended 
        within the purposes of this subsection.
  (e) It shall be unlawful for any person to make any untrue 
statement of a material fact or omit to state any material fact 
necessary in order to make the statements made, in the light of 
the circumstances under which they are made, not misleading, or 
to engage in any fraudulent, deceptive, or manipulative acts or 
practices, in connection with any tender offer or request or 
invitation for tenders, or any solicitation of security holders 
in opposition to or in favor of any such offer, request, or 
invitation. The Commission shall, for the purposes of this 
subsection, by rules and regulations define, and prescribe 
means reasonably designed to prevent, such acts and practices 
as are fraudulent, deceptive, or manipulative.
  (f) If, pursuant to any arrangement or understanding with the 
person or persons acquiring securities in a transaction subject 
to subsection (d) of this section or subsection (d) of section 
13 of this title, any persons are to be elected or designated 
as directors of the issuer, otherwise than at a meeting of 
security holders, and the persons so elected or designated will 
constitute a majority of the directors of the issuer, then, 
prior to the time any such person takes office as a director, 
and in accordance with rules and regulations prescribed by the 
Commission, the issuer shall file with the Commission, and 
transmit to all holders of record of securities of the issuer 
who would be entitled to vote at a meeting for election of 
directors, information substantially equivalent to the 
information which would be required by subsection (a) or (c) of 
this section to be transmitted if such person or persons were 
nominees for election as directors at a meeting of such 
security holders.
  (g)(1)(A) At the time of filing such preliminary proxy 
solicitation material as the Commission may require by rule 
pursuant to subsection (a) of this section that concerns an 
acquisition, merger, consolidation, or proposed sale or other 
disposition of substantially all the assets of a company, the 
person making such filing, other than a company registered 
under the Investment Company Act of 1940, shall pay to the 
Commission the following fees:
          (i) for preliminary proxy solicitation material 
        involving an acquisition, merger, or consolidation, if 
        there is a proposed payment of cash or transfer of 
        securities or property to shareholders, a fee at a rate 
        that, subject to paragraph (4), is equal to $92 per 
        $1,000,000 of such proposed payment, or of the value of 
        such securities or other property proposed to be 
        transferred; and
          (ii) for preliminary proxy solicitation material 
        involving a proposed sale or other disposition of 
        substantially all of the assets of a company, a fee at 
        a rate that, subject to paragraph (4), is equal to $92 
        per $1,000,000 of the cash or of the value of any 
        securities or other property proposed to be received 
        upon such sale or disposition.
  (B) The fee imposed under subparagraph (A) shall be reduced 
with respect to securities in an amount equal to any fee paid 
to the Commission with respect to such securities in connection 
with the proposed transaction under section 6(b) of the 
Securities Act of 1933 (15 U.S.C. 77f(b)), or the fee paid 
under that section shall be reduced in an amount equal to the 
fee paid to the Commission in connection with such transaction 
under this subsection. Where two or more companies involved in 
an acquisition, merger, consolidation, sale, or other 
disposition of substantially all the assets of a company must 
file such proxy material with the Commission, each shall pay a 
proportionate share of such fee.
  (2) At the time of filing such preliminary information 
statement as the Commission may require by rule pursuant to 
subsection (c) of this section, the issuer shall pay to the 
Commission the same fee as required for preliminary proxy 
solicitation material under paragraph (1) of this subsection.
  (3) At the time of filing such statement as the Commission 
may require by rule pursuant to subsection (d)(1) of this 
section, the person making the filing shall pay to the 
Commission a fee at a rate that, subject to paragraph (4), is 
equal to $92 per $1,000,000 of the aggregate amount of cash or 
of the value of securities or other property proposed to be 
offered. The fee shall be reduced with respect to securities in 
an amount equal to any fee paid with respect to such securities 
in connection with the proposed transaction under section 6(b) 
of the Securities Act of 1933 (15 U.S.C. 77f(b)), or the fee 
paid under that section shall be reduced in an amount equal to 
the fee paid to the Commission in connection with such 
transaction under this subsection.
          (4) Annual adjustment.--For each fiscal year, the 
        Commission shall by order adjust the rate required by 
        paragraphs (1) and (3) for such fiscal year to a rate 
        that is equal to the rate (expressed in dollars per 
        million) that is applicable under section 6(b) of the 
        Securities Act of 1933 (15 U.S.C. 77f(b)) for such 
        fiscal year.
          (5) Fee collection.--Fees collected pursuant to this 
        subsection for fiscal year 2012 and each fiscal year 
        thereafter shall be deposited and credited as general 
        revenue of the Treasury and shall not be available for 
        obligation.
          (6) Review; effective date; publication.--In 
        exercising its authority under this subsection, the 
        Commission shall not be required to comply with the 
        provisions of section 553 of title 5, United States 
        Code. An adjusted rate prescribed under paragraph (4) 
        shall be published and take effect in accordance with 
        section 6(b) of the Securities Act of 1933 (15 U.S.C. 
        77f(b)).
          (7) Pro rata application.--The rates per $1,000,000 
        required by this subsection shall be applied pro rata 
        to amounts and balances of less than $1,000,000.
  (8) Notwithstanding any other provision of law, the 
Commission may impose fees, charges, or prices for matters not 
involving any acquisition, merger, consolidation, sale, or 
other disposition of assets described in this subsection, as 
authorized by section 9701 of title 31, United States Code, or 
otherwise.
  (h) Proxy Solicitations and Tender Offers in Connection With 
Limited Partnership Rollup Transactions.--
          (1) Proxy rules to contain special provisions.--It 
        shall be unlawful for any person to solicit any proxy, 
        consent, or authorization concerning a limited 
        partnership rollup transaction, or to make any tender 
        offer in furtherance of a limited partnership rollup 
        transaction, unless such transaction is conducted in 
        accordance with rules prescribed by the Commission 
        under subsections (a) and (d) as required by this 
        subsection. Such rules shall--
                  (A) permit any holder of a security that is 
                the subject of the proposed limited partnership 
                rollup transaction to engage in preliminary 
                communications for the purpose of determining 
                whether to solicit proxies, consents, or 
                authorizations in opposition to the proposed 
                limited partnership rollup transaction, without 
                regard to whether any such communication would 
                otherwise be considered a solicitation of 
                proxies, and without being required to file 
                soliciting material with the Commission prior 
                to making that determination, except that--
                          (i) nothing in this subparagraph 
                        shall be construed to limit the 
                        application of any provision of this 
                        title prohibiting, or reasonably 
                        designed to prevent, fraudulent, 
                        deceptive, or manipulative acts or 
                        practices under this title; and
                          (ii) any holder of not less than 5 
                        percent of the outstanding securities 
                        that are the subject of the proposed 
                        limited partnership rollup transaction 
                        who engages in the business of buying 
                        and selling limited partnership 
                        interests in the secondary market shall 
                        be required to disclose such ownership 
                        interests and any potential conflicts 
                        of interests in such preliminary 
                        communications;
                  (B) require the issuer to provide to holders 
                of the securities that are the subject of the 
                limited partnership rollup transaction such 
                list of the holders of the issuer's securities 
                as the Commission may determine in such form 
                and subject to such terms and conditions as the 
                Commission may specify;
                  (C) prohibit compensating any person 
                soliciting proxies, consents, or authorizations 
                directly from security holders concerning such 
                a limited partnership rollup transaction--
                          (i) on the basis of whether the 
                        solicited proxy, consent, or 
                        authorization either approves or 
                        disapproves the proposed limited 
                        partnership rollup transaction; or
                          (ii) contingent on the approval, 
                        disapproval, or completion of the 
                        limited partnership rollup transaction;
                  (D) set forth disclosure requirements for 
                soliciting material distributed in connection 
                with a limited partnership rollup transaction, 
                including requirements for clear, concise, and 
                comprehensible disclosure with respect to--
                          (i) any changes in the business plan, 
                        voting rights, form of ownership 
                        interest, or the compensation of the 
                        general partner in the proposed limited 
                        partnership rollup transaction from 
                        each of the original limited 
                        partnerships;
                          (ii) the conflicts of interest, if 
                        any, of the general partner;
                          (iii) whether it is expected that 
                        there will be a significant difference 
                        between the exchange values of the 
                        limited partnerships and the trading 
                        price of the securities to be issued in 
                        the limited partnership rollup 
                        transaction;
                          (iv) the valuation of the limited 
                        partnerships and the method used to 
                        determine the value of the interests of 
                        the limited partners to be exchanged 
                        for the securities in the limited 
                        partnership rollup transaction;
                          (v) the differing risks and effects 
                        of the limited partnership rollup 
                        transaction for investors in different 
                        limited partnerships proposed to be 
                        included, and the risks and effects of 
                        completing the limited partnership 
                        rollup transaction with less than all 
                        limited partnerships;
                          (vi) the statement by the general 
                        partner required under subparagraph 
                        (E);
                          (vii) such other matters deemed 
                        necessary or appropriate by the 
                        Commission;
                  (E) require a statement by the general 
                partner as to whether the proposed limited 
                partnership rollup transaction is fair or 
                unfair to investors in each limited 
                partnership, a discussion of the basis for that 
                conclusion, and an evaluation and a description 
                by the general partner of alternatives to the 
                limited partnership rollup transaction, such as 
                liquidation;
                  (F) provide that, if the general partner or 
                sponsor has obtained any opinion (other than an 
                opinion of counsel), appraisal, or report that 
                is prepared by an outside party and that is 
                materially related to the limited partnership 
                rollup transaction, such soliciting materials 
                shall contain or be accompanied by clear, 
                concise, and comprehensible disclosure with 
                respect to--
                          (i) the analysis of the transaction, 
                        scope of review, preparation of the 
                        opinion, and basis for and methods of 
                        arriving at conclusions, and any 
                        representations and undertakings with 
                        respect thereto;
                          (ii) the identity and qualifications 
                        of the person who prepared the opinion, 
                        the method of selection of such person, 
                        and any material past, existing, or 
                        contemplated relationships between the 
                        person or any of its affiliates and the 
                        general partner, sponsor, successor, or 
                        any other affiliate;
                          (iii) any compensation of the 
                        preparer of such opinion, appraisal, or 
                        report that is contingent on the 
                        transaction's approval or completion; 
                        and
                          (iv) any limitations imposed by the 
                        issuer on the access afforded to such 
                        preparer to the issuer's personnel, 
                        premises, and relevant books and 
                        records;
                  (G) provide that, if the general partner or 
                sponsor has obtained any opinion, appraisal, or 
                report as described in subparagraph (F) from 
                any person whose compensation is contingent on 
                the transaction's approval or completion or who 
                has not been given access by the issuer to its 
                personnel and premises and relevant books and 
                records, the general partner or sponsor shall 
                state the reasons therefor;
                  (H) provide that, if the general partner or 
                sponsor has not obtained any opinion on the 
                fairness of the proposed limited partnership 
                rollup transaction to investors in each of the 
                affected partnerships, such soliciting 
                materials shall contain or be accompanied by a 
                statement of such partner's or sponsor's 
                reasons for concluding that such an opinion is 
                not necessary in order to permit the limited 
                partners to make an informed decision on the 
                proposed transaction;
                  (I) require that the soliciting material 
                include a clear, concise, and comprehensible 
                summary of the limited partnership rollup 
                transaction (including a summary of the matters 
                referred to in clauses (i) through (vii) of 
                subparagraph (D) and a summary of the matter 
                referred to in subparagraphs (F), (G), and 
                (H)), with the risks of the limited partnership 
                rollup transaction set forth prominently in the 
                fore part thereof;
                  (J) provide that any solicitation or offering 
                period with respect to any proxy solicitation, 
                tender offer, or information statement in a 
                limited partnership rollup transaction shall be 
                for not less than the lesser of 60 calendar 
                days or the maximum number of days permitted 
                under applicable State law; and
                  (K) contain such other provisions as the 
                Commission determines to be necessary or 
                appropriate for the protection of investors in 
                limited partnership rollup transactions.
          (2) Exemptions.--The Commission may, consistent with 
        the public interest, the protection of investors, and 
        the purposes of this title, exempt by rule or order any 
        security or class of securities, any transaction or 
        class of transactions, or any person or class of 
        persons, in whole or in part, conditionally or 
        unconditionally, from the requirements imposed pursuant 
        to paragraph (1) or from the definition contained in 
        paragraph (4).
          (3) Effect on commission authority.--Nothing in this 
        subsection limits the authority of the Commission under 
        subsection (a) or (d) or any other provision of this 
        title or precludes the Commission from imposing, under 
        subsection (a) or (d) or any other provision of this 
        title, a remedy or procedure required to be imposed 
        under this subsection.
          (4) Definition of limited partnership rollup 
        transaction.--Except as provided in paragraph (5), as 
        used in this subsection, the term ``limited partnership 
        rollup transaction'' means a transaction involving the 
        combination or reorganization of one or more limited 
        partnerships, directly or indirectly, in which--
                  (A) some or all of the investors in any of 
                such limited partnerships will receive new 
                securities, or securities in another entity, 
                that will be reported under a transaction 
                reporting plan declared effective before the 
                date of enactment of this subsection by the 
                Commission under section 11A;
                  (B) any of the investors' limited partnership 
                securities are not, as of the date of filing, 
                reported under a transaction reporting plan 
                declared effective before the date of enactment 
                of this subsection by the Commission under 
                section 11A;
                  (C) investors in any of the limited 
                partnerships involved in the transaction are 
                subject to a significant adverse change with 
                respect to voting rights, the term of existence 
                of the entity, management compensation, or 
                investment objectives; and
                  (D) any of such investors are not provided an 
                option to receive or retain a security under 
                substantially the same terms and conditions as 
                the original issue.
          (5) Exclusions from definition.--Notwithstanding 
        paragraph (4), the term ``limited partnership rollup 
        transaction'' does not include--
                  (A) a transaction that involves only a 
                limited partnership or partnerships having an 
                operating policy or practice of retaining cash 
                available for distribution and reinvesting 
                proceeds from the sale, financing, or 
                refinancing of assets in accordance with such 
                criteria as the Commission determines 
                appropriate;
                  (B) a transaction involving only limited 
                partnerships wherein the interests of the 
                limited partners are repurchased, recalled, or 
                exchanged in accordance with the terms of the 
                preexisting limited partnership agreements for 
                securities in an operating company specifically 
                identified at the time of the formation of the 
                original limited partnership;
                  (C) a transaction in which the securities to 
                be issued or exchanged are not required to be 
                and are not registered under the Securities Act 
                of 1933;
                  (D) a transaction that involves only issuers 
                that are not required to register or report 
                under section 12, both before and after the 
                transaction;
                  (E) a transaction, except as the Commission 
                may otherwise provide by rule for the 
                protection of investors, involving the 
                combination or reorganization of one or more 
                limited partnerships in which a non-affiliated 
                party succeeds to the interests of a general 
                partner or sponsor, if--
                          (i) such action is approved by not 
                        less than 66\2/3\ percent of the 
                        outstanding units of each of the 
                        participating limited partnerships; and
                          (ii) as a result of the transaction, 
                        the existing general partners will 
                        receive only compensation to which they 
                        are entitled as expressly provided for 
                        in the preexisting limited partnership 
                        agreements; or
                  (F) a transaction, except as the Commission 
                may otherwise provide by rule for the 
                protection of investors, in which the 
                securities offered to investors are securities 
                of another entity that are reported under a 
                transaction reporting plan declared effective 
                before the date of enactment of this subsection 
                by the Commission under section 11A, if--
                          (i) such other entity was formed, and 
                        such class of securities was reported 
                        and regularly traded, not less than 12 
                        months before the date on which 
                        soliciting material is mailed to 
                        investors; and
                          (ii) the securities of that entity 
                        issued to investors in the transaction 
                        do not exceed 20 percent of the total 
                        outstanding securities of the entity, 
                        exclusive of any securities of such 
                        class held by or for the account of the 
                        entity or a subsidiary of the entity.
  (i) Disclosure of Pay Versus Performance.--The Commission 
shall, by rule, require each issuer to disclose in any proxy or 
consent solicitation material for an annual meeting of the 
shareholders of the issuer a clear description of any 
compensation required to be disclosed by the issuer under 
section 229.402 of title 17, Code of Federal Regulations (or 
any successor thereto), including, for any issuer other than an 
emerging growth company, information that shows the 
relationship between executive compensation actually paid and 
the financial performance of the issuer, taking into account 
any change in the value of the shares of stock and dividends of 
the issuer and any distributions. The disclosure under this 
subsection may include a graphic representation of the 
information required to be disclosed.
  (j) Disclosure of Hedging by Employees and Directors.--The 
Commission shall, by rule, require each issuer to disclose in 
any proxy or consent solicitation material for an annual 
meeting of the shareholders of the issuer whether any employee 
or member of the board of directors of the issuer, or any 
designee of such employee or member, is permitted to purchase 
financial instruments (including prepaid variable forward 
contracts, equity swaps, collars, and exchange funds) that are 
designed to hedge or offset any decrease in the market value of 
equity securities--
          (1) granted to the employee or member of the board of 
        directors by the issuer as part of the compensation of 
        the employee or member of the board of directors; or
          (2) held, directly or indirectly, by the employee or 
        member of the board of directors.
  (k) Prohibition on Requiring a Single Ballot.--The Commission 
may not require that a solicitation of a proxy, consent, or 
authorization to vote a security of an issuer in an election of 
members of the board of directors of the issuer be made using a 
single ballot or card that lists both individuals nominated by 
(or on behalf of) the issuer and individuals nominated by (or 
on behalf of) other proponents and permits the person granting 
the proxy, consent, or authorization to select from among 
individuals in both groups.

           *       *       *       *       *       *       *

SEC. 15G. CREDIT RISK RETENTION.

  (a) Definitions.--In this section--
          (1) the term ``Federal banking agencies'' means the 
        Office of the Comptroller of the Currency, the Board of 
        Governors of the Federal Reserve System, and the 
        Federal Deposit Insurance Corporation;
          (2) the term ``insured depository institution'' has 
        the same meaning as in section 3(c) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(c));
          (3) the term ``securitizer'' means--
                  (A) an issuer of an asset-backed security; or
                  (B) a person who organizes and initiates an 
                asset-backed securities transaction by selling 
                or transferring assets, either directly or 
                indirectly, including through an affiliate, to 
                the issuer; [and]
          (4) the term ``originator'' means a person who--
                  (A) through the extension of credit or 
                otherwise, creates a financial asset that 
                collateralizes an asset-backed security; and
                  (B) sells an asset directly or indirectly to 
                a securitizer[.]; and
          (5) the term ``asset-backed security'' refers only to 
        an asset-backed security that is comprised wholly of 
        residential mortgages.
  (b) Regulations Required.--
          [(1) In general.--Not later than 270 days after the 
        date of enactment of this section, the Federal banking 
        agencies and the Commission shall jointly prescribe 
        regulations to require any securitizer to retain an 
        economic interest in a portion of the credit risk for 
        any asset that the securitizer, through the issuance of 
        an asset-backed security, transfers, sells, or conveys 
        to a third party.
          [(2) Residential mortgages.--] Not later than 270 
        days after the date of the enactment of this section, 
        the Federal banking agencies, the Commission, the 
        Secretary of Housing and Urban Development, and the 
        Federal Housing Finance Agency, shall jointly prescribe 
        regulations to require any securitizer to retain an 
        economic interest in a portion of the credit risk for 
        any residential mortgage asset that the securitizer, 
        through the issuance of an asset-backed security, 
        transfers, sells, or conveys to a third party.
  (c) Standards for Regulations.--
          (1) Standards.--The regulations prescribed under 
        subsection (b) shall--
                  (A) prohibit a securitizer from directly or 
                indirectly hedging or otherwise transferring 
                the credit risk that the securitizer is 
                required to retain with respect to an asset;
                  (B) require a securitizer to retain--
                          (i) not less than 5 percent of the 
                        credit risk for any asset--
                                  (I) that is not a qualified 
                                residential mortgage that is 
                                transferred, sold, or conveyed 
                                through the issuance of an 
                                asset-backed security by the 
                                securitizer; or
                                  (II) that is a qualified 
                                residential mortgage that is 
                                transferred, sold, or conveyed 
                                through the issuance of an 
                                asset-backed security by the 
                                securitizer, if 1 or more of 
                                the assets that collateralize 
                                the asset-backed security are 
                                not qualified residential 
                                mortgages; or
                          (ii) less than 5 percent of the 
                        credit risk for an asset that is not a 
                        qualified residential mortgage that is 
                        transferred, sold, or conveyed through 
                        the issuance of an asset-backed 
                        security by the securitizer, if the 
                        originator of the asset meets the 
                        underwriting standards prescribed under 
                        paragraph (2)(B);
                  (C) specify--
                          (i) the permissible forms of risk 
                        retention for purposes of this section;
                          (ii) the minimum duration of the risk 
                        retention required under this section; 
                        and
                          (iii) that a securitizer is not 
                        required to retain any part of the 
                        credit risk for an asset that is 
                        transferred, sold or conveyed through 
                        the issuance of an asset-backed 
                        security by the securitizer, if all of 
                        the assets that collateralize the 
                        asset-backed security are qualified 
                        residential mortgages;
                  (D) apply, regardless of whether the 
                securitizer is an insured depository 
                institution;
                  (E) with respect to a commercial mortgage, 
                specify the permissible types, forms, and 
                amounts of risk retention that would meet the 
                requirements of subparagraph (B), which in the 
                determination of the Federal banking agencies 
                and the Commission may include--
                          (i) retention of a specified amount 
                        or percentage of the total credit risk 
                        of the asset;
                          (ii) retention of the first-loss 
                        position by a third-party purchaser 
                        that specifically negotiates for the 
                        purchase of such first loss position, 
                        holds adequate financial resources to 
                        back losses, provides due diligence on 
                        all individual assets in the pool 
                        before the issuance of the asset-backed 
                        securities, and meets the same 
                        standards for risk retention as the 
                        Federal banking agencies and the 
                        Commission require of the securitizer;
                          (iii) a determination by the Federal 
                        banking agencies and the Commission 
                        that the underwriting standards and 
                        controls for the asset are adequate; 
                        and
                          (iv) provision of adequate 
                        representations and warranties and 
                        related enforcement mechanisms; and
                  (F) establish appropriate standards for 
                retention of an economic interest with respect 
                to collateralized debt obligations, securities 
                collateralized by collateralized debt 
                obligations, and similar instruments 
                collateralized by other asset-backed 
                securities; and
                  (G) provide for--
                          (i) a total or partial exemption of 
                        any securitization, as may be 
                        appropriate in the public interest and 
                        for the protection of investors;
                          (ii) a total or partial exemption for 
                        the securitization of an asset issued 
                        or guaranteed by the United States, or 
                        an agency of the United States, as the 
                        Federal banking agencies and the 
                        Commission jointly determine 
                        appropriate in the public interest and 
                        for the protection of investors, except 
                        that, for purposes of this clause, the 
                        Federal National Mortgage Association 
                        and the Federal Home Loan Mortgage 
                        Corporation are not agencies of the 
                        United States;
                          (iii) a total or partial exemption 
                        for any asset-backed security that is a 
                        security issued or guaranteed by any 
                        State of the United States, or by any 
                        political subdivision of a State or 
                        territory, or by any public 
                        instrumentality of a State or territory 
                        that is exempt from the registration 
                        requirements of the Securities Act of 
                        1933 by reason of section 3(a)(2) of 
                        that Act (15 U.S.C. 77c(a)(2)), or a 
                        security defined as a qualified 
                        scholarship funding bond in section 
                        150(d)(2) of the Internal Revenue Code 
                        of 1986, as may be appropriate in the 
                        public interest and for the protection 
                        of investors; and
                          (iv) the allocation of risk retention 
                        obligations between a securitizer and 
                        an originator in the case of a 
                        securitizer that purchases assets from 
                        an originator, as the Federal banking 
                        agencies and the Commission jointly 
                        determine appropriate.
          (2) Asset classes.--
                  (A) Asset classes.--The regulations 
                prescribed under subsection (b) shall establish 
                asset classes with separate rules for 
                securitizers of different classes of assets, 
                including residential mortgages, commercial 
                mortgages, commercial loans, auto loans, and 
                any other class of assets that the Federal 
                banking agencies and the Commission deem 
                appropriate.
                  (B) Contents.--For each asset class 
                established under subparagraph (A), the 
                regulations prescribed under subsection (b) 
                shall include underwriting standards 
                established by the Federal banking agencies 
                that specify the terms, conditions, and 
                characteristics of a loan within the asset 
                class that indicate a low credit risk with 
                respect to the loan.
  (d) Originators.--In determining how to allocate risk 
retention obligations between a securitizer and an originator 
under subsection (c)(1)(E)(iv), the Federal banking agencies 
and the Commission shall--
          (1) reduce the percentage of risk retention 
        obligations required of the securitizer by the 
        percentage of risk retention obligations required of 
        the originator; and
          (2) consider--
                  (A) whether the assets sold to the 
                securitizer have terms, conditions, and 
                characteristics that reflect low credit risk;
                  (B) whether the form or volume of 
                transactions in securitization markets creates 
                incentives for imprudent origination of the 
                type of loan or asset to be sold to the 
                securitizer; and
                  (C) the potential impact of the risk 
                retention obligations on the access of 
                consumers and businesses to credit on 
                reasonable terms, which may not include the 
                transfer of credit risk to a third party.
  (e) Exemptions, Exceptions, and Adjustments.--
          (1) In general.--The Federal banking agencies and the 
        Commission may jointly adopt or issue exemptions, 
        exceptions, or adjustments to the rules issued under 
        this section, including exemptions, exceptions, or 
        adjustments for classes of institutions or assets 
        relating to the risk retention requirement and the 
        prohibition on hedging under subsection (c)(1).
          (2) Applicable standards.--Any exemption, exception, 
        or adjustment adopted or issued by the Federal banking 
        agencies and the Commission under this paragraph 
        shall--
                  (A) help ensure high quality underwriting 
                standards for the securitizers and originators 
                of assets that are securitized or available for 
                securitization; and
                  (B) encourage appropriate risk management 
                practices by the securitizers and originators 
                of assets, improve the access of consumers and 
                businesses to credit on reasonable terms, or 
                otherwise be in the public interest and for the 
                protection of investors.
          (3) Certain institutions and programs exempt.--
                  (A) Farm credit system institutions.--
                Notwithstanding any other provision of this 
                section, the requirements of this section shall 
                not apply to any loan or other financial asset 
                made, insured, guaranteed, or purchased by any 
                institution that is subject to the supervision 
                of the Farm Credit Administration, including 
                the Federal Agricultural Mortgage Corporation.
                  (B) Other federal programs.--This section 
                shall not apply to any residential, 
                multifamily, or health care facility mortgage 
                loan asset, or securitization based directly or 
                indirectly on such an asset, which is insured 
                or guaranteed by the United States or an agency 
                of the United States. For purposes of this 
                subsection, the Federal National Mortgage 
                Association, the Federal Home Loan Mortgage 
                Corporation, and the Federal home loan banks 
                shall not be considered an agency of the United 
                States.
          (4) Exemption for qualified residential mortgages.--
                  (A) In general.--The Federal banking 
                agencies, the Commission, the Secretary of 
                Housing and Urban Development, and the Director 
                of the Federal Housing Finance Agency shall 
                jointly issue regulations to exempt qualified 
                residential mortgages from the risk retention 
                requirements of this subsection.
                  (B) Qualified residential mortgage.--The 
                Federal banking agencies, the Commission, the 
                Secretary of Housing and Urban Development, and 
                the Director of the Federal Housing Finance 
                Agency shall jointly define the term 
                ``qualified residential mortgage'' for purposes 
                of this subsection, taking into consideration 
                underwriting and product features that 
                historical loan performance data indicate 
                result in a lower risk of default, such as--
                          (i) documentation and verification of 
                        the financial resources relied upon to 
                        qualify the mortgagor;
                          (ii) standards with respect to--
                                  (I) the residual income of 
                                the mortgagor after all monthly 
                                obligations;
                                  (II) the ratio of the housing 
                                payments of the mortgagor to 
                                the monthly income of the 
                                mortgagor;
                                  (III) the ratio of total 
                                monthly installment payments of 
                                the mortgagor to the income of 
                                the mortgagor;
                          (iii) mitigating the potential for 
                        payment shock on adjustable rate 
                        mortgages through product features and 
                        underwriting standards;
                          (iv) mortgage guarantee insurance or 
                        other types of insurance or credit 
                        enhancement obtained at the time of 
                        origination, to the extent such 
                        insurance or credit enhancement reduces 
                        the risk of default; and
                          (v) prohibiting or restricting the 
                        use of balloon payments, negative 
                        amortization, prepayment penalties, 
                        interest-only payments, and other 
                        features that have been demonstrated to 
                        exhibit a higher risk of borrower 
                        default.
                  (C) Limitation on definition.--The Federal 
                banking agencies, the Commission, the Secretary 
                of Housing and Urban Development, and the 
                Director of the Federal Housing Finance Agency 
                in defining the term ``qualified residential 
                mortgage'', as required by subparagraph (B), 
                shall define that term to be no broader than 
                the definition ``qualified mortgage'' as the 
                term is defined under section 129C(c)(2) of the 
                Truth in Lending Act, as amended by the 
                Consumer Financial Protection Act of 2010, and 
                regulations adopted thereunder.
          (5) Condition for qualified residential mortgage 
        exemption.--The regulations issued under paragraph (4) 
        shall provide that an asset-backed security that is 
        collateralized by tranches of other asset-backed 
        securities shall not be exempt from the risk retention 
        requirements of this subsection.
          (6) Certification.--The Commission shall require an 
        issuer to certify, for each issuance of an asset-backed 
        security collateralized exclusively by qualified 
        residential mortgages, that the issuer has evaluated 
        the effectiveness of the internal supervisory controls 
        of the issuer with respect to the process for ensuring 
        that all assets that collateralize the asset-backed 
        security are qualified residential mortgages.
  (f) Enforcement.--The regulations issued under this section 
shall be enforced by--
          (1) the appropriate Federal banking agency, with 
        respect to any securitizer that is an insured 
        depository institution; and
          (2) the Commission, with respect to any securitizer 
        that is not an insured depository institution.
  (g) Authority of Commission.--The authority of the Commission 
under this section shall be in addition to the authority of the 
Commission to otherwise enforce the securities laws.
  [(h) Authority to Coordinate on Rulemaking.--The Chairperson 
of the Financial Stability Oversight Council shall coordinate 
all joint rulemaking required under this section.]
  [(i)] (h) Effective Date of Regulations.--The regulations 
issued under this section shall become [effective--]
          [(1) with respect to] effective with respect to 
        securitizers and originators of asset-backed securities 
        backed by residential mortgages, 1 year after the date 
        on which final rules under this section are published 
        in the Federal Register[; and].
          [(2) with respect to securitizers and originators of 
        all other classes of asset-backed securities, 2 years 
        after the date on which final rules under this section 
        are published in the Federal Register.]

           *       *       *       *       *       *       *

SEC. 31. TRANSACTION FEES.

  (a) Recovery of Costs of Annual Appropriation.--The 
Commission shall, in accordance with this section, collect 
transaction fees and assessments that are designed to recover 
the costs to the Government of the annual appropriation to the 
Commission by Congress.
  (b) Exchange-Traded Securities.--Subject to subsection (j), 
each national securities exchange shall pay to the Commission a 
fee at a rate equal to $15 per $1,000,000 of the aggregate 
dollar amount of sales of securities (other than bonds, 
debentures, other evidences of indebtedness, security futures 
products, and options on securities indexes (excluding a 
narrow-based security index)) transacted on such national 
securities exchange.
  (c) Off-Exchange Trades of Exchange Registered and Last-Sale-
Reported Securities.--Subject to subsection (j), each national 
securities association shall pay to the Commission a fee at a 
rate equal to $15 per $1,000,000 of the aggregate dollar amount 
of sales transacted by or through any member of such 
association otherwise than on a national securities exchange of 
securities (other than bonds, debentures, other evidences of 
indebtedness, security futures products, and options on 
securities indexes (excluding a narrow-based security index)) 
registered on a national securities exchange or subject to 
prompt last sale reporting pursuant to the rules of the 
Commission or a registered national securities association.
  (d) Assessments on Security Futures Transactions.--Each 
national securities exchange and national securities 
association shall pay to the Commission an assessment equal to 
$0.009 for each round turn transaction (treated as including 
one purchase and one sale of a contract of sale for future 
delivery) on a security future traded on such national 
securities exchange or by or through any member of such 
association otherwise than on a national securities exchange, 
except that for fiscal year 2007 and each succeeding fiscal 
year such assessment shall be equal to $0.0042 for each such 
transaction.
  (e) Dates for Payments.--The fees and assessments required by 
subsections (b), (c), and (d) of this section shall be paid--
          (1) on or before March 15, with respect to 
        transactions and sales occurring during the period 
        beginning on the preceding September 1 and ending at 
        the close of the preceding December 31; and
          (2) on or before September 25, with respect to 
        transactions and sales occurring during the period 
        beginning on the preceding January 1 and ending at the 
        close of the preceding August 31.
  (f) Exemptions.--The Commission, by rule, may exempt any sale 
of securities or any class of sales of securities from any fee 
or assessment imposed by this section, if the Commission finds 
that such exemption is consistent with the public interest, the 
equal regulation of markets and brokers and dealers, and the 
development of a national market system.
  (g) Publication.--The Commission shall publish in the Federal 
Register notices of the fee or assessment rates applicable 
under this section for each fiscal year not later than 30 days 
after the date on which an Act making a regular appropriation 
to the Commission for such fiscal year is enacted, together 
with any estimates or projections on which such fees are based.
  (h) Pro Rata Application.--The rates per $1,000,000 required 
by this section shall be applied pro rata to amounts and 
balances of less than $1,000,000.
  (i) Deposit of Fees.--
          (1) Offsetting collections.--Fees collected pursuant 
        to subsections (b), (c), and (d) for any fiscal year--
                  (A) shall be deposited and credited as 
                offsetting collections to the account providing 
                appropriations to the Commission; and
                  (B) except as provided in subsection (k), 
                shall not be collected for any fiscal year 
                except to the extent provided in advance in 
                appropriation Acts.
          (2) General revenues prohibited.--No fees collected 
        pursuant to subsections (b), (c), and (d) for fiscal 
        year 2002 or any succeeding fiscal year shall be 
        deposited and credited as general revenue of the 
        Treasury.
  (j) Adjustments to Fee Rates.--
          (1) Annual adjustment.--Subject to subsections 
        (i)(1)(B) and (k), for each fiscal year, the Commission 
        shall by order adjust each of the rates applicable 
        under subsections (b) and (c) for such fiscal year to a 
        uniform adjusted rate that, when applied to the 
        baseline estimate of the aggregate dollar amount of 
        sales for such fiscal year, is reasonably likely to 
        produce aggregate fee collections under this section 
        (including assessments collected under subsection (d) 
        of this section) that are equal to the regular 
        appropriation to the Commission by Congress for such 
        fiscal year.
          (2) Mid-year adjustment.--Subject to subsections 
        (i)(1)(B) and (k), for each fiscal year, the Commission 
        shall determine, by March 1 of such fiscal year, 
        whether, based on the actual aggregate dollar volume of 
        sales during the first 5 months of such fiscal year, 
        the baseline estimate of the aggregate dollar volume of 
        sales used under paragraph (1) for such fiscal year is 
        reasonably likely to be 10 percent (or more) greater or 
        less than the actual aggregate dollar volume of sales 
        for such fiscal year. If the Commission so determines, 
        the Commission shall by order, no later than March 1, 
        adjust each of the rates applicable under subsections 
        (b) and (c) for such fiscal year to a uniform adjusted 
        rate that, when applied to the revised estimate of the 
        aggregate dollar amount of sales for the remainder of 
        such fiscal year, is reasonably likely to produce 
        aggregate fee collections under this section (including 
        fees collected during such five-month period and 
        assessments collected under subsection (d) of this 
        section) that are equal to the regular appropriation to 
        the Commission by Congress for such fiscal year. In 
        making such revised estimate, the Commission shall, 
        after consultation with the Congressional Budget Office 
        and the Office of Management and Budget, use the same 
        methodology required by subsection (l).
          (3) Review.--In exercising its authority under this 
        subsection, the Commission shall not be required to 
        comply with the provisions of section 553 of title 5, 
        United States Code. An adjusted rate prescribed under 
        paragraph (1) or (2) and published under subsection (g) 
        shall not be subject to judicial review.
          (4) Effective date.--
                  (A) Annual adjustment.--Subject to 
                subsections (i)(1)(B) and (k), an adjusted rate 
                prescribed under paragraph (1) shall take 
                effect on the later of--
                          (i) the first day of the fiscal year 
                        to which such rate applies; or
                          (ii) 60 days after the date on which 
                        an Act making a regular appropriation 
                        to the Commission for such fiscal year 
                        is enacted.
                  (B) Mid-year adjustment.--An adjusted rate 
                prescribed under paragraph (2) shall take 
                effect on April 1 of the fiscal year to which 
                such rate applies.
  (k) Lapse of Appropriation.--If on the first day of a fiscal 
year a regular appropriation to the Commission has not been 
enacted, the Commission shall continue to collect (as 
offsetting collections) the fees and assessments under 
subsections (b), (c), and (d) at the rate in effect during the 
preceding fiscal year, until 60 days after the date such a 
regular appropriation is enacted.
  (l) Baseline Estimate of the Aggregate Dollar Amount of 
Sales.--The baseline estimate of the aggregate dollar amount of 
sales for any fiscal year is the baseline estimate of the 
aggregate dollar amount of sales of securities (other than 
bonds, debentures, other evidences of indebtedness, security 
futures products, and options on securities indexes (excluding 
a narrow-based security index)) to be transacted on each 
national securities exchange and by or through any member of 
each national securities association (otherwise than on a 
national securities exchange) during such fiscal year as 
determined by the Commission, after consultation with the 
Congressional Budget Office and the Office of Management and 
Budget, using the methodology required for making projections 
pursuant to section 257 of the Balanced Budget and Emergency 
Deficit Control Act of 1985.
  (m) Transmittal of Commission Budget Requests.--
          (1) Budget required.--For fiscal year 2012, and each 
        fiscal year thereafter, the Commission shall prepare 
        and submit a budget to the President. Whenever the 
        Commission submits a budget estimate or request to the 
        President or the Office of Management and Budget, the 
        Commission shall concurrently transmit copies of the 
        estimate or request to the Committee on Appropriations 
        of the Senate, the Committee on Appropriations of the 
        House of Representatives, the Committee on Banking, 
        Housing, and Urban Affairs of the Senate, and the 
        Committee on Financial Services of the House of 
        Representatives.
          (2) Submission to congress.--The President shall 
        submit each budget submitted under paragraph (1) to 
        Congress, in unaltered form, together with the annual 
        budget for the Administration submitted by the 
        President.
          (3) Contents.--The Commission shall include in each 
        budget submitted under paragraph (1)--
                  (A) an itemization of the amount of funds 
                necessary to carry out the functions of the 
                Commission.
                  (B) an amount to be designated as contingency 
                funding to be used by the Commission to address 
                unanticipated needs; and
                  (C) a designation of any activities of the 
                Commission for which multi-year budget 
                authority would be suitable.
  (n) Overpayment.--If a national securities exchange or 
national securities association pays to the Commission an 
amount in excess of fees and assessments due under this section 
and informs the Commission of such amount paid in excess within 
10 years of the date of the payment, the Commission shall 
offset future fees and assessments due by such exchange or 
association in an amount equal to such excess amount.

           *       *       *       *       *       *       *

                              ----------                              

SMALL BUSINESS INVESTMENT INCENTIVE ACT OF 1980

           *       *       *       *       *       *       *

TITLE V--CAPITAL FORMATION

           *       *       *       *       *       *       *

         ANNUAL GOVERNMENT-BUSINESS FORUM ON CAPITAL FORMATION

  Sec. 503. (a) Pursuant to the consultation called for in 
section 502,the Securities and Exchange Commission (acting 
through the Office of the Advocate for Small Business Capital 
Formation and in consultation with the Small Business Capital 
Formation Advisory Committee) shall conduct an 
annualGovernment-business forum to review the current status of 
problems and programs relating to small business capital 
formation.
  (b) The Commission shall invite other Federal agencies, such 
as theDepartment of the Treasury, the Board of Governors of the 
FederalReserve System, the Small Business Administration, 
organizations representing State securities commissioners, and 
leading small businessand professional organizations concerned 
with capital formation,to participate in the planning for such 
forums.
  (c) The Commission may request any of the Federal 
departments, agencies, or organizations such as those specified 
in subsection (b), orother groups or individuals, to prepare 
statements and reports to bedelivered at such forums. Such 
departments and agencies shallcooperate in this effort.
  (d) A summary of the proceedings of such forums and any 
findingsor recommendations thereof shall be prepared and 
transmitted to theparticipants, appropriate committees of the 
Congress, and others whomay be interested in the subject 
matter.
  (e) The Commission shall--
          (1) review the findings and recommendations of the 
        forum; and
          (2) each time the forum submits a finding or 
        recommendation to the Commission, promptly issue a 
        public statement--
                  (A) assessing the finding or recommendation 
                of the forum; and
                  (B) disclosing the action, if any, the 
                Commission intends to take with respect to the 
                finding or recommendation.
                              ----------                              

                     INVESTMENT COMPANY ACT OF 1940

TITLE I--INVESTMENT COMPANIES

           *       *       *       *       *       *       *

                    definition of investment company

  Sec. 3. (a)(1) When used in this title, ``investment 
company'' means any issuer which--
          (A) is or holds itself out as being engaged 
        primarily, or proposes to engage primarily, in the 
        business of investing, reinvesting, or trading in 
        securities;
          (B) is engaged or proposes to engage in the business 
        of issuing face-amount certificates of the installment 
        type, or has been engaged in such business and has any 
        such certificate outstanding; or
          (C) is engaged or proposes to engage in the business 
        of investing, reinvesting, owning, holding, or trading 
        in securities, and owns or proposes to acquire 
        investment securities having a value exceeding 40 per 
        centum of the value of such issuer's total assets 
        (exclusive of Government securities and cash items) on 
        an unconsolidated basis.
  (2) As used in this section, ``investment securities'' 
includes all securities except (A) Government securities, (B) 
securities issued by employees' securities companies, and (C) 
securities issued by majority-owned subsidiaries of the owner 
which (i) are not investment companies, and (ii) are not 
relying on the exception from the definition of investment 
company in paragraph (1) or (7) of subsection (c).
  (b) Notwithstanding paragraph (1)(C) of subsection (a), none 
of the following persons is an investment company within the 
meaning of this title:
          (1) Any issuer primarily engaged, directly or through 
        a wholly-owned subsidiary or subsidiaries, in a 
        business or businesses other than that of investing, 
        reinvesting, owning, holding, or trading in securities.
          (2) Any issuer which the Commission, upon application 
        by such issuer, finds and by order declares to be 
        primarily engaged in a business or businesses other 
        than that of investing, reinvesting, owning, holding, 
        or trading in securities either directly or (A) through 
        majority-owned subsidiaries or (B) through controlled 
        companies conducting similar types of businesses. The 
        filing of an application under this paragraph in good 
        faith by an issuer other than a registered investment 
        company shall exempt the applicant for a period of 
        sixty days from all provisions of this title applicable 
        to investment companies as such. For cause shown, the 
        Commission by order may extend such period of exemption 
        for an additional period or periods. Whenever the 
        Commission, upon its own motion or upon application, 
        finds that the circumstances which gave rise to the 
        issuance of an order granting an application under this 
        paragraph no longer exist, the Commission shall by 
        order revoke such order.
          (3) Any issuer all the outstanding securities of 
        which (other than short-term paper and directors' 
        qualifying shares) are directly or indirectly owned by 
        a company excepted from the definition of investment 
        company by paragraph (1) or (2) of this subsection.
  (c) Notwithstanding subsection (a), none of the following 
persons is an investment company within the meaning of this 
title:
          (1) Any issuer whose outstanding securities (other 
        than short-term paper) are beneficially owned by not 
        more than one hundred persons (or, with respect to a 
        qualifying venture capital fund, 500 persons) and which 
        is not making and does not presently propose to make a 
        public offering of its securities. Such issuer shall be 
        deemed to be an investment company for purposes of the 
        limitations set forth in subparagraphs (A)(i) and 
        (B)(i) of section 12(d)(1) governing the purchase or 
        other acquisition by such issuer of any security issued 
        by any registered investment company and the sale of 
        any security issued by any registered open-end 
        investment company to any such issuer. For purposes of 
        this paragraph:
                  (A) Beneficial ownership by a company shall 
                be deemed to be beneficial ownership by one 
                person, except that, if the company owns 10 per 
                centum or more of the outstanding voting 
                securities of the issuer, and is or, but for 
                the exception provided for in this paragraph or 
                paragraph (7), would be an investment company, 
                the beneficial ownership shall be deemed to be 
                that of the holders of such company's 
                outstanding securities (other than short-term 
                paper).
                  (B) Beneficial ownership by any person who 
                acquires securities or interests in securities 
                of an issuer described in the first sentence of 
                this paragraph shall be deemed to be beneficial 
                ownership by the person from whom such transfer 
                was made, pursuant to such rules and 
                regulations as the Commission shall prescribe 
                as necessary or appropriate in the public 
                interest and consistent with the protection of 
                investors and the purposes fairly intended by 
                the policy and provisions of this title, where 
                the transfer was caused by legal separation, 
                divorce, death, or other involuntary event.
                  (C) The term ``qualifying venture capital 
                fund'' means any venture capital fund (as 
                defined pursuant to section 203(l)(1) of the 
                Investment Advisers Act of 1940 (15 U.S.C. 80b-
                3(l)(1)) with no more than $50,000,000 in 
                aggregate capital contributions and uncalled 
                committed capital, as such dollar amount is 
                annually adjusted by the Commission to reflect 
                the change in the Consumer Price Index for All 
                Urban Consumers published by the Bureau of 
                Labor Statistics of the Department of Labor.
          (2)(A) Any person primarily engaged in the business 
        of underwriting and distributing securities issued by 
        other persons, selling securities to customers, acting 
        as broker, and acting as market intermediary, or any 
        one or more of such activities, whose gross income 
        normally is derived principally from such business and 
        related activities.
          (B) For purposes of this paragraph--
                  (i) the term ``market intermediary'' means 
                any person that regularly holds itself out as 
                being willing contemporaneously to engage in, 
                and that is regularly engaged in, the business 
                of entering into transactions on both sides of 
                the market for a financial contract or one or 
                more such financial contracts; and
                  (ii) the term ``financial contract'' means 
                any arrangement that--
                          (I) takes the form of an individually 
                        negotiated contract, agreement, or 
                        option to buy, sell, lend, swap, or 
                        repurchase, or other similar 
                        individually negotiated transaction 
                        commonly entered into by participants 
                        in the financial markets;
                          (II) is in respect of securities, 
                        commodities, currencies, interest or 
                        other rates, other measures of value, 
                        or any other financial or economic 
                        interest similar in purpose or function 
                        to any of the foregoing; and
                          (III) is entered into in response to 
                        a request from a counter party for a 
                        quotation, or is otherwise entered into 
                        and structured to accommodate the 
                        objectives of the counter party to such 
                        arrangement.
          (3) Any bank or insurance company; any savings and 
        loan association, building and loan association, 
        cooperative bank, homestead association, or similar 
        institution, or any receiver, conservator, liquidator, 
        liquidating agent, or similar official or person 
        thereof or therefor; or any common trust fund or 
        similar fund maintained by a bank exclusively for the 
        collective investment and reinvestment of moneys 
        contributed thereto by the bank in its capacity as a 
        trustee, executor, administrator, or guardian, if--
                  (A) such fund is employed by the bank solely 
                as an aid to the administration of trusts, 
                estates, or other accounts created and 
                maintained for a fiduciary purpose;
                  (B) except in connection with the ordinary 
                advertising of the bank's fiduciary services, 
                interests in such fund are not--
                          (i) advertised; or
                          (ii) offered for sale to the general 
                        public; and
                  (C) fees and expenses charged by such fund 
                are not in contravention of fiduciary 
                principles established under applicable Federal 
                or State law.
          (4) Any person substantially all of whose business is 
        confined to making small loans, industrial banking, or 
        similar businesses.
          (5) Any person who is not engaged in the business of 
        issuing redeemable securities, face-amount certificates 
        of the installment type or periodic payment plan 
        certificates, and who is primarily engaged in one or 
        more of the following businesses: (A) Purchasing or 
        otherwise acquiring notes, drafts, acceptances, open 
        accounts receivable, and other obligations representing 
        part or all of the sales price of merchandise, 
        insurance, and services; (B) making loans to 
        manufacturers, wholesalers, and retailers of, and to 
        prospective purchasers of, specified merchandise, 
        insurance, and services; and (C) purchasing or 
        otherwise acquiring mortgages and other liens on and 
        interests in real estate.
          (6) Any company primarily engaged, directly or 
        through majority-owned subsidiaries, in one or more of 
        the businesses described in paragraphs (3), (4), and 
        (5), or in one or more of such businesses (from which 
        not less than 25 centum of such company's gross income 
        during its last fiscal year was derived) together with 
        an additional business or businesses other than 
        investing, reinvesting, owning, holding, or trading in 
        securities.
          (7)(A) Any issuer, the outstanding securities of 
        which are owned exclusively by persons who, at the time 
        of acquisition of such securities, are qualified 
        purchasers, and which is not making and does not at 
        that time propose to make a public offering of such 
        securities. Securities that are owned by persons who 
        received the securities from a qualified purchaser as a 
        gift or bequest, or in a case in which the transfer was 
        caused by legal separation, divorce, death, or other 
        involuntary event, shall be deemed to be owned by a 
        qualified purchaser, subject to such rules, 
        regulations, and orders as the Commission may prescribe 
        as necessary or appropriate in the public interest or 
        for the protection of investors.
          (B) Notwithstanding subparagraph (A), an issuer is 
        within the exception provided by this paragraph if--
                  (i) in addition to qualified purchasers, 
                outstanding securities of that issuer are 
                beneficially owned by not more than 100 persons 
                who are not qualified purchasers, if--
                          (I) such persons acquired any portion 
                        of the securities of such issuer on or 
                        before September 1, 1996; and
                          (II) at the time at which such 
                        persons initially acquired the 
                        securities of such issuer, the issuer 
                        was excepted by paragraph (1); and
                  (ii) prior to availing itself of the 
                exception provided by this paragraph--
                          (I) such issuer has disclosed to each 
                        beneficial owner, as determined under 
                        paragraph (1), that future investors 
                        will be limited to qualified 
                        purchasers, and that ownership in such 
                        issuer is no longer limited to not more 
                        than 100 persons; and
                          (II) concurrently with or after such 
                        disclosure, such issuer has provided 
                        each beneficial owner, as determined 
                        under paragraph (1), with a reasonable 
                        opportunity to redeem any part or all 
                        of their interests in the issuer, 
                        notwithstanding any agreement to the 
                        contrary between the issuer and such 
                        persons, for that person's 
                        proportionate share of the issuer's net 
                        assets.
          (C) Each person that elects to redeem under 
        subparagraph (B)(ii)(II) shall receive an amount in 
        cash equal to that person's proportionate share of the 
        issuer's net assets, unless the issuer elects to 
        provide such person with the option of receiving, and 
        such person agrees to receive, all or a portion of such 
        person's share in assets of the issuer. If the issuer 
        elects to provide such persons with such an 
        opportunity, disclosure concerning such opportunity 
        shall be made in the disclosure required by 
        subparagraph (B)(ii)(I).
          (D) An issuer that is excepted under this paragraph 
        shall nonetheless be deemed to be an investment company 
        for purposes of the limitations set forth in 
        subparagraphs (A)(i) and (B)(i) of section 12(d)(1) 
        relating to the purchase or other acquisition by such 
        issuer of any security issued by any registered 
        investment company and the sale of any security issued 
        by any registered open-end investment company to any 
        such issuer.
          (E) For purposes of determining compliance with this 
        paragraph and paragraph (1), an issuer that is 
        otherwise excepted under this paragraph and an issuer 
        that is otherwise excepted under paragraph (1) shall 
        not be treated by the Commission as being a single 
        issuer for purposes of determining whether the 
        outstanding securities of the issuer excepted under 
        paragraph (1) are beneficially owned by not more than 
        100 persons or whether the outstanding securities of 
        the issuer excepted under this paragraph are owned by 
        persons that are not qualified purchasers. Nothing in 
        this subparagraph shall be construed to establish that 
        a person is a bona fide qualified purchaser for 
        purposes of this paragraph or a bona fide beneficial 
        owner for purposes of paragraph (1).
          (9) Any person substantially all of whose business 
        consists of owning or holding oil, gas, or other 
        mineral royalties or leases, or fractional interests 
        therein, or certificates of interest or participation 
        in or investment contracts relative to such royalties, 
        leases, or fractional interests.
          (10)(A) Any company organized and operated 
        exclusively for religious, educational, benevolent, 
        fraternal, charitable, or reformatory purposes--
                  (i) no part of the net earnings of which 
                inures to the benefit of any private 
                shareholder or individual; or
                  (ii) which is or maintains a fund described 
                in subparagraph (B).
          (B) For the purposes of subparagraph (A)(ii), a fund 
        is described in this subparagraph if such fund is a 
        pooled income fund, collective trust fund, collective 
        investment fund, or similar fund maintained by a 
        charitable organization exclusively for the collective 
        investment and reinvestment of one or more of the 
        following:
                  (i) assets of the general endowment fund or 
                other funds of one or more charitable 
                organizations;
                  (ii) assets of a pooled income fund;
                  (iii) assets contributed to a charitable 
                organization in exchange for the issuance of 
                charitable gift annuities;
                  (iv) assets of a charitable remainder trust 
                or of any other trust, the remainder interests 
                of which are irrevocably dedicated to any 
                charitable organization;
                  (v) assets of a charitable lead trust;
                  (vi) assets of a trust, the remainder 
                interests of which are revocably dedicated to 
                or for the benefit of 1 or more charitable 
                organizations, if the ability to revoke the 
                dedication is limited to circumstances 
                involving--
                          (I) an adverse change in the 
                        financial circumstances of a settlor or 
                        an income beneficiary of the trust;
                          (II) a change in the identity of the 
                        charitable organization or 
                        organizations having the remainder 
                        interest, provided that the new 
                        beneficiary is also a charitable 
                        organization; or
                          (III) both the changes described in 
                        subclauses (I) and (II);
                  (vii) assets of a trust not described in 
                clauses (i) through (v), the remainder 
                interests of which are revocably dedicated to a 
                charitable organization, subject to 
                subparagraph (C); or
                  (viii) such assets as the Commission may 
                prescribe by rule, regulation, or order in 
                accordance with section 6(c).
          (C) A fund that contains assets described in clause 
        (vii) of subparagraph (B) shall be excluded from the 
        definition of an investment company for a period of 3 
        years after the date of enactment of this subparagraph, 
        but only if--
                  (i) such assets were contributed before the 
                date which is 60 days after the date of 
                enactment of this subparagraph; and
                  (ii) such assets are commingled in the fund 
                with assets described in one or more of clauses 
                (i) through (vi) and (viii) of subparagraph 
                (B).
          (D) For purposes of this paragraph--
                  (i) a trust or fund is ``maintained'' by a 
                charitable organization if the organization 
                serves as a trustee or administrator of the 
                trust or fund or has the power to remove the 
                trustees or administrators of the trust or fund 
                and to designate new trustees or 
                administrators;
                  (ii) the term ``pooled income fund'' has the 
                same meaning as in section 642(c)(5) of the 
                Internal Revenue Code of 1986;
                  (iii) the term ``charitable organization'' 
                means an organization described in paragraphs 
                (1) through (5) of section 170(c) or section 
                501(c)(3) of the Internal Revenue Code of 1986;
                  (iv) the term ``charitable lead trust'' means 
                a trust described in section 170(f)(2)(B), 
                2055(e)(2)(B), or 2522(c)(2)(B) of the Internal 
                Revenue Code of 1986;
                  (v) the term ``charitable remainder trust'' 
                means a charitable remainder annuity trust or a 
                charitable remainder unitrust, as those terms 
                are defined in section 664(d) of the Internal 
                Revenue Code of 1986; and
                  (vi) the term ``charitable gift annuity'' 
                means an annuity issued by a charitable 
                organization that is described in section 
                501(m)(5) of the Internal Revenue Code of 1986.
          (11) Any employee's stock bonus, pension, or profit-
        sharing trust which meets the requirements for 
        qualification under section 401 of the Internal Revenue 
        Code of 1986; or any governmental plan described in 
        section 3(a)(2)(C) of the Securities Act of 1933; or 
        any collective trust fund maintained by a bank 
        consisting solely of assets of one or more of such 
        trusts, government plans, or church plans, companies or 
        accounts that are excluded from the definition of an 
        investment company under paragraph (14) of this 
        subsection; or any separate account the assets of which 
        are derived solely from (A) contributions under pension 
        or profit-sharing plans which meet the requirements of 
        section 401 of the Internal Revenue Code of 1986 or the 
        requirements for deduction of the employer's 
        contribution under section 404(a)(2) of such Code, (B) 
        contributions under governmental plans in connection 
        with which interests, participations, or securities are 
        exempted from the registration provisions of section 5 
        of the Securities Act of 1933 by section 3(a)(2)(C) of 
        such Act, and (C) advances made by an insurance company 
        in connection with the operation of such separate 
        account.
          (12) Any voting trust the assets of which consist 
        exclusively of securities of a single issuer which is 
        not an investment company.
          (13) Any security holders' protective committee or 
        similar issuer having outstanding and issuing no 
        securities other than certificates of deposit and 
        short-term paper.
          (14) Any church plan described in section 414(e) of 
        the Internal Revenue Code of 1986, if, under any such 
        plan, no part of the assets may be used for, or 
        diverted to, purposes other than the exclusive benefit 
        of plan participants or beneficiaries, or any company 
        or account that is--
                  (A) established by a person that is eligible 
                to establish and maintain such a plan under 
                section 414(e) of the Internal Revenue Code of 
                1986; and
                  (B) substantially all of the activities of 
                which consist of--
                          (i) managing or holding assets 
                        contributed to such church plans or 
                        other assets which are permitted to be 
                        commingled with the assets of church 
                        plans under the Internal Revenue Code 
                        of 1986; or
                          (ii) administering or providing 
                        benefits pursuant to church plans.

           *       *       *       *       *       *       *

                              ----------                              

TRUTH IN LENDING ACT

           *       *       *       *       *       *       *

                TITLE I--CONSUMER CREDIT COST DISCLOSURE

CHAPTER 1--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Sec.  103. Definitions and rules of construction

  (a) The definitions and rules of construction set forth in 
this section are applicable for the purposes of this title.
  (b) Bureau.--The term ``Bureau '' means the Bureau of 
Consumer Financial Protection.
  (c) The term ``Bureau '' refers to the Bureau of Governors of 
the Federal Reserve System.
  (d) The term ``organization'' means a corporation, government 
or governmental subdivision or agency, trust, estate, 
partnership, cooperative, or association.
  (e) The term ``person'' means a natural person or an 
organization.
  (f) The term ``credit'' means the right granted by a creditor 
to a debtor to defer payment of debt or to incur debt and defer 
its payment.
  (g) The term ``creditor'' refers only to a person who both 
(1) regularly extends, whether in connection with loans, sales 
of property or services, or otherwise, consumer credit which is 
payable by agreement in more than four installments or for 
which the payment of a finance charge is or may be required, 
and (2) is the person to whom the debt arising from the 
consumer credit transaction is initially payable on the face of 
the evidence of indebtedness or, if there is no such evidence 
of indebtedness, by agreement. Notwithstanding the preceding 
sentence, in the case of an open-end credit plan involving a 
credit card, the card issuer and any person who honors the 
credit card and offers a discount which is a finance charge are 
creditors. For the purpose of the requirements imposed under 
chapter 4 and sections 127(a)(5), 127(a)(6), 127(a)(7), 
127(b)(1), 127(b)(2), 127(b)(3), 127(b)(8), and 127(b)(10) of 
chapter 2 of this title, the term ``creditor'' shall also 
include card issuers whether or not the amount due is payable 
by agreement in more than four installments or the payment of a 
finance charge is or may be required, and the Bureau shall, by 
regulation, apply these requirements to such card issuers, to 
the extent appropriate, even though the requirements are by 
their terms applicable only to creditors offering open-end 
credit plans. Any person who originates 2 or more mortgages 
referred to in subsection (aa) in any 12-month period or any 
person who originates 1 or more such mortgages through a 
mortgage broker shall be considered to be a creditor for 
purposes of this title. The term ``creditor'' includes a 
private educational lender (as that term is defined in section 
140) for purposes of this title.
  (h) The term ``credit sale'' refers to any sale in which the 
seller is a creditor. The term includes any contract in the 
form of a bailment or lease if the bailee or lessee contracts 
to pay as compensation for use a sum substantially equivalent 
to or in excess of the aggregate value of the property and 
services involved and it is agreed that the bailee or lessee 
will become, or for no other or a nominal consideration has the 
option to become, the owner of the property upon full 
compliance with his obligations under the contract.
  (i) The adjective ``consumer'', used with reference to a 
credit transaction, characterizes the transaction as one in 
which the party to whom credit is offered or extended is a 
natural person, and the money, property, or services which are 
the subject of the transaction are primarily for personal, 
family, or household purposes.
  (j) The terms ``open end credit plan'' and ``open end 
consumer credit plan'' mean a plan under which the creditor 
reasonably contemplates repeated transactions, which prescribes 
the terms of such transactions, and which provides for a 
finance charge which may be computed from time to time on the 
outstanding unpaid balance. A credit plan or open end consumer 
credit plan which is an open end credit plan or open end 
consumer credit plan within the meaning of the preceding 
sentence is an open end credit plan or open end consumer credit 
plan even if credit information is verified from time to time.
  (k) The term ``adequate notice'', as used in section 133, 
means a printed notice to a cardholder which sets forth the 
pertinent facts clearly and conspicuously so that a person 
against whom it is to operate could reasonably be expected to 
have noticed it and understood its meaning. Such notice may be 
given to a cardholder by printing the notice on any credit 
card, or on each periodic statement of account, issued to the 
cardholder, or by any other means reasonably assuring the 
receipt thereof by the cardholder.
  (l) The term ``credit card'' means any card, plate, coupon 
book or other credit device existing for the purpose of 
obtaining money, property, labor, or services on credit.
  (m) The term ``accepted credit card'' means any credit card 
which the cardholder has requested and received or has signed 
or has used, or authorized another to use, for the purpose of 
obtaining money, property, labor, or services on credit.
  (n) The term ``cardholder'' means any person to whom a credit 
card is issued or any person who has agreed with the card 
issuer to pay obligations arising from the issuance of a credit 
card to another person.
  (o) The term ``card issuer'' means any person who issues a 
credit card, or the agent of such person with respect to such 
card.
  (p) The term ``unauthorized use'', as used in section 133, 
means a use of a credit card by a person other than the 
cardholder who does not have actual, implied, or apparent 
authority for such use and from which the cardholder receives 
no benefit.
  (q) The term ``discount'' as used in section 167 means a 
reduction made from the regular price. The term ``discount'' as 
used in section 167 shall not mean a surcharge.
  (r) The term ``surcharge'' as used in section 103 and section 
167 means any means of increasing the regular price to a 
cardholder which is not imposed upon customers paying by cash, 
check, or similar means.
  (s) The term ``State'' refers to any State, the Commonwealth 
of Puerto Rico, the District of Columbia, and any territory or 
possession of the United States.
  (t) The term ``agricultural purposes'' includes the 
production, harvest, exhibition, marketing, transportation, 
processing, or manufacture of agricultural products by a 
natural person who cultivates, plants, propagates, or nurtures 
those agricultural products, including but not limited to the 
acquisition of farmland, real property with a farm residence, 
and personal property and services used primarily in farming.
  (u) The term ``agricultural products'' includes agricultural, 
horticultural, viticultural, and dairy products, livestock, 
wildlife, poultry, bees, forest products, fish and shellfish, 
and any products thereof, including processed and manufactured 
products, and any and all products raised or produced on farms 
and any processed or manufactured products thereof.
  (v) The term ``material disclosures'' means the disclosure, 
as required by this title, of the annual percentage rate, the 
method of determining the finance charge and the balance upon 
which a finance charge will be imposed, the amount of the 
finance charge, the amount to be financed, the total of 
payments, the number and amount of payments, the due dates or 
periods of payments scheduled to repay the indebtedness, and 
the disclosures required by section 129(a).
  (w) The term ``dwelling'' means a residential structure or 
mobile home which contains one to four family housing units, or 
individual units of condominiums or cooperatives.
  (x) The term ``residential mortgage transaction'' means a 
transaction in which a mortgage, deed of trust, purchase money 
security interest arising under an installment sales contract, 
or equivalent consensual security interest is created or 
retained against the consumer's dwelling to finance the 
acquisition or initial construction of such dwelling.
  (y) As used in this section and section 167, the term 
``regular price'' means the tag or posted price charged for the 
property or service if a single price is tagged or posted, or 
the price charged for the property or service when payment is 
made by use of an open-end credit plan or a credit card if 
either (1) no price is tagged or posted, or (2) two prices are 
tagged or posted, one of which is charged when payment is made 
by use of an open-end credit plan or a credit card and the 
other when payment is made by use of cash, check, or similar 
means. For purposes of this definition, payment by check, 
draft, or other negotiable instrument which may result in the 
debiting of an open-end credit plan or a credit cardholder's 
open-end account shall not be considered payment made by use of 
the plan or the account.
  (z) Any reference to any requirement imposed under this title 
or any provision thereof includes reference to the regulations 
of the Bureau under this title or the provision thereof in 
question.
  [(bb)] (aa) High-cost Mortgage.--
          (1) Definition.--
                  (A) In general.--The term ``high-cost 
                mortgage'', and a mortgage referred to in this 
                subsection, means a consumer credit transaction 
                that is secured by the consumer's principal 
                dwelling, other than a reverse mortgage 
                transaction, if--
                          (i) in the case of a credit 
                        transaction secured--
                                  (I) by a first mortgage on 
                                the consumer's principal 
                                dwelling, the annual percentage 
                                rate at consummation of the 
                                transaction will exceed by more 
                                than 6.5 percentage points 
                                [(8.5 percentage points, if the 
                                dwelling is personal property 
                                and the transaction is for less 
                                than $50,000)] (10 percentage 
                                points if the dwelling is 
                                personal property or is a 
                                transaction that does not 
                                include the purchase of real 
                                property on which a dwelling is 
                                to be placed, and the 
                                transaction is for less than 
                                $75,000 (as such amount is 
                                adjusted by the Consumer Law 
                                Enforcement Agency to reflect 
                                the change in the Consumer 
                                Price Index)) the average prime 
                                offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction; or
                                  (II) by a subordinate or 
                                junior mortgage on the 
                                consumer's principal dwelling, 
                                the annual percentage rate at 
                                consummation of the transaction 
                                will exceed by more than 8.5 
                                percentage points the average 
                                prime offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction;
                          (ii) the total points and fees 
                        payable in connection with the 
                        transaction, other than bona fide third 
                        party charges not retained by the 
                        mortgage originator, creditor, or an 
                        affiliate of the creditor or mortgage 
                        originator, exceed--
                                  (I) in the case of a 
                                transaction for $20,000 or 
                                more, 5 percent of the total 
                                transaction amount; [or]
                                  (II) in the case of a 
                                transaction for less than 
                                $20,000, the lesser of 8 
                                percent of the total 
                                transaction amount or $1,000 
                                (or such other dollar amount as 
                                the Bureau shall prescribe by 
                                regulation); or
                                  (III) in the case of a 
                                transaction for less than 
                                $75,000 (as such amount is 
                                adjusted by the Consumer Law 
                                Enforcement Agency to reflect 
                                the change in the Consumer 
                                Price Index) in which the 
                                dwelling is personal property 
                                (or is a consumer credit 
                                transaction that does not 
                                include the purchase of real 
                                property on which a dwelling is 
                                to be placed) the greater of 5 
                                percent of the total 
                                transaction amount or $3,000 
                                (as such amount is adjusted by 
                                the Consumer Law Enforcement 
                                Agency to reflect the change in 
                                the Consumer Price Index); or
                          (iii) the credit transaction 
                        documents permit the creditor to charge 
                        or collect prepayment fees or penalties 
                        more than 36 months after the 
                        transaction closing or such fees or 
                        penalties exceed, in the aggregate, 
                        more than 2 percent of the amount 
                        prepaid.
                  (B) Introductory rates taken into account.--
                For purposes of subparagraph (A)(i), the annual 
                percentage rate of interest shall be determined 
                based on the following interest rate:
                          (i) In the case of a fixed-rate 
                        transaction in which the annual 
                        percentage rate will not vary during 
                        the term of the loan, the interest rate 
                        in effect on the date of consummation 
                        of the transaction.
                          (ii) In the case of a transaction in 
                        which the rate of interest varies 
                        solely in accordance with an index, the 
                        interest rate determined by adding the 
                        index rate in effect on the date of 
                        consummation of the transaction to the 
                        maximum margin permitted at any time 
                        during the loan agreement.
                          (iii) In the case of any other 
                        transaction in which the rate may vary 
                        at any time during the term of the loan 
                        for any reason, the interest charged on 
                        the transaction at the maximum rate 
                        that may be charged during the term of 
                        the loan.
                  (C) Mortgage insurance.--For the purposes of 
                computing the total points and fees under 
                paragraph (4), the total points and fees shall 
                exclude--
                          (i) any premium provided by an agency 
                        of the Federal Government or an agency 
                        of a State;
                          (ii) any amount that is not in excess 
                        of the amount payable under policies in 
                        effect at the time of origination under 
                        section 203(c)(2)(A) of the National 
                        Housing Act (12 U.S.C. 1709(c)(2)(A)), 
                        provided that the premium, charge, or 
                        fee is required to be refundable on a 
                        pro-rated basis and the refund is 
                        automatically issued upon notification 
                        of the satisfaction of the underlying 
                        mortgage loan; and
                          (iii) any premium paid by the 
                        consumer after closing.
  (2)(A) After the 2-year period beginning on the effective 
date of the regulations promulgated under section 155 of the 
Riegle Community Development and Regulatory Improvement Act of 
1994, and no more frequently than biennially after the first 
increase or decrease under this subparagraph, the Bureau may by 
regulation increase or decrease the number of percentage points 
specified in paragraph (1)(A), if the Bureau determines that 
the increase or decrease is--
          (i) consistent with the consumer protections against 
        abusive lending provided by the amendments made by 
        subtitle B of title I of the Riegle Community 
        Development and Regulatory Improvement Act of 1994; and
          (ii) warranted by the need for credit.
          (B) An increase or decrease under subparagraph (A)--
                  (i) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(I) being less than 6 percentage 
                points or greater than 10 percentage points; 
                and
                  (ii) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(II) being less than 8 percentage 
                points or greater than 12 percentage points.
  (C) In determining whether to increase or decrease the number 
of percentage points referred to in subparagraph (A), the 
Bureau shall consult with representatives of consumers, 
including low-income consumers, and lenders.
  (3) The amount specified in paragraph (1)(B)(ii) shall be 
adjusted annually on January 1 by the annual percentage change 
in the Consumer Price Index, as reported on June 1 of the year 
preceding such adjustment.
  (4) For purposes of paragraph (1)(B), points and fees shall 
include--
          (A) all items included in the finance charge, except 
        interest or the time-price differential;
          (B) all compensation paid directly or indirectly by a 
        consumer or creditor to a mortgage originator from any 
        source, including a mortgage originator that is also 
        the creditor in a table-funded transaction;
          (C) each of the charges listed in section 106(e) 
        (except an escrow for future payment of taxes), 
        unless--
                  (i) the charge is reasonable;
                  (ii) the creditor receives no direct or 
                indirect compensation; and
                  (iii) the charge is paid to a third party 
                unaffiliated with the creditor; and
          (D) premiums or other charges payable at or before 
        closing for any credit life, credit disability, credit 
        unemployment, or credit property insurance, or any 
        other accident, loss-of-income, life or health 
        insurance, or any payments directly or indirectly for 
        any debt cancellation or suspension agreement or 
        contract, except that insurance premiums or debt 
        cancellation or suspension fees calculated and paid in 
        full on a monthly basis shall not be considered 
        financed by the creditor;
          (E) the maximum prepayment fees and penalties which 
        may be charged or collected under the terms of the 
        credit transaction;
          (F) all prepayment fees or penalties that are 
        incurred by the consumer if the loan refinances a 
        previous loan made or currently held by the same 
        creditor or an affiliate of the creditor; and
          (G) such other charges as the Bureau determines to be 
        appropriate.
          (5) Calculation of points and fees for open-end 
        consumer credit plans.--In the case of open-end 
        consumer credit plans, points and fees shall be 
        calculated, for purposes of this section and section 
        129, by adding the total points and fees known at or 
        before closing, including the maximum prepayment 
        penalties which may be charged or collected under the 
        terms of the credit transaction, plus the minimum 
        additional fees the consumer would be required to pay 
        to draw down an amount equal to the total credit line.
  (6) This subsection shall not be construed to limit the rate 
of interest or the finance charge that a person may charge a 
consumer for any extension of credit.
  [(aa)] (bb) The disclosure of an amount or percentage which 
is greater than the amount or percentage required to be 
disclosed under this title does not in itself constitute a 
violation of this title.
  (cc) The term ``reverse mortgage transaction'' means a 
nonrecourse transaction in which a mortgage, deed of trust, or 
equivalent consensual security interest is created against the 
consumer's principal dwelling--
          (1) securing one or more advances; and
          (2) with respect to which the payment of any 
        principal, interest, and shared appreciation or equity 
        is due and payable (other than in the case of default) 
        only after--
                  (A) the transfer of the dwelling;
                  (B) the consumer ceases to occupy the 
                dwelling as a principal dwelling; or
                  (C) the death of the consumer.
  [(cc)] (dd) Definitions Relating to Mortgage Origination and 
Residential Mortgage Loans.--
          (1) Commission.--Unless otherwise specified, the term 
        ``Commission'' means the Federal Trade Commission.
          (2) Mortgage originator.--The term ``mortgage 
        originator''--
                  (A) means any person who, for direct or 
                indirect compensation or gain, or in the 
                expectation of direct or indirect compensation 
                or gain--
                          (i) takes a residential mortgage loan 
                        application;
                          (ii) assists a consumer in obtaining 
                        or applying to obtain a residential 
                        mortgage loan; or
                          (iii) offers or negotiates terms of a 
                        residential mortgage loan;
                  (B) includes any person who represents to the 
                public, through advertising or other means of 
                communicating or providing information 
                (including the use of business cards, 
                stationery, brochures, signs, rate lists, or 
                other promotional items), that such person can 
                or will provide any of the services or perform 
                any of the activities described in subparagraph 
                (A);
                  (C) does not include any person who is (i) 
                not otherwise described in subparagraph (A) or 
                (B) and who performs purely administrative or 
                clerical tasks on behalf of a person who is 
                described in any such subparagraph, or (ii) [an 
                employee of a retailer of manufactured homes 
                who is not described in clause (i) or (iii) of 
                subparagraph (A) and who does not advise a 
                consumer on loan terms (including rates, fees, 
                and other costs)] a retailer of manufactured or 
                modular homes or its employees unless such 
                retailer or its employees receive compensation 
                or gain for engaging in activities described in 
                subparagraph (A) that is in excess of any 
                compensation or gain received in a comparable 
                cash transaction;
                  (D) does not include a person or entity that 
                only performs real estate brokerage activities 
                and is licensed or registered in accordance 
                with applicable State law, unless such person 
                or entity is compensated by a lender, a 
                mortgage broker, or other mortgage originator 
                or by any agent of such lender, mortgage 
                broker, or other mortgage originator;
                  (E) does not include, with respect to a 
                residential mortgage loan, a person, estate, or 
                trust that provides mortgage financing for the 
                sale of 3 properties in any 12-month period to 
                purchasers of such properties, each of which is 
                owned by such person, estate, or trust and 
                serves as security for the loan, provided that 
                such loan--
                          (i) is not made by a person, estate, 
                        or trust that has constructed, or acted 
                        as a contractor for the construction 
                        of, a residence on the property in the 
                        ordinary course of business of such 
                        person, estate, or trust;
                          (ii) is fully amortizing;
                          (iii) is with respect to a sale for 
                        which the seller determines in good 
                        faith and documents that the buyer has 
                        a reasonable ability to repay the loan;
                          (iv) has a fixed rate or an 
                        adjustable rate that is adjustable 
                        after 5 or more years, subject to 
                        reasonable annual and lifetime 
                        limitations on interest rate increases; 
                        and
                          (v) meets any other criteria the 
                        Bureau may prescribe;
                  (F) does not include the creditor (except the 
                creditor in a table-funded transaction) under 
                paragraph (1), (2), or (4) of section 129B(c); 
                and
                  (G) does not include a servicer or servicer 
                employees, agents and contractors, including 
                but not limited to those who offer or negotiate 
                terms of a residential mortgage loan for 
                purposes of renegotiating, modifying, replacing 
                and subordinating principal of existing 
                mortgages where borrowers are behind in their 
                payments, in default or have a reasonable 
                likelihood of being in default or falling 
                behind.
          (3) Nationwide mortgage licensing system and 
        registry.--The term ``Nationwide Mortgage Licensing 
        System and Registry'' has the same meaning as in the 
        Secure and Fair Enforcement for Mortgage Licensing Act 
        of 2008.
          (4) Other definitions relating to mortgage 
        originator.--For purposes of this subsection, a person 
        ``assists a consumer in obtaining or applying to obtain 
        a residential mortgage loan'' by, among other things, 
        advising on residential mortgage loan terms (including 
        rates, fees, and other costs), preparing residential 
        mortgage loan packages, or collecting information on 
        behalf of the consumer with regard to a residential 
        mortgage loan.
          (5) Residential mortgage loan.--The term 
        ``residential mortgage loan'' means any consumer credit 
        transaction that is secured by a mortgage, deed of 
        trust, or other equivalent consensual security interest 
        on a dwelling or on residential real property that 
        includes a dwelling, other than a consumer credit 
        transaction under an open end credit plan or, for 
        purposes of sections 129B and 129C and section 128(a) 
        (16), (17), (18), and (19), and sections 128(f) and 
        130(k), and any regulations promulgated thereunder, an 
        extension of credit relating to a plan described in 
        section 101(53D) of title 11, United States Code.
          (6) Secretary.--The term ``Secretary'', when used in 
        connection with any transaction or person involved with 
        a residential mortgage loan, means the Secretary of 
        Housing and Urban Development.
          (7) Servicer.--The term ``servicer'' has the same 
        meaning as in section 6(i)(2) of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 
        2605(i)(2)).
  [(dd)] (ee) Bona Fide Discount Points and Prepayment 
Penalties.--For the purposes of determining the amount of 
points and fees for purposes of subsection (aa), either the 
amounts described in paragraph (1) or (2) of the following 
paragraphs, but not both, shall be excluded:
          (1) Up to and including 2 bona fide discount points 
        payable by the consumer in connection with the 
        mortgage, but only if the interest rate from which the 
        mortgage's interest rate will be discounted does not 
        exceed by more than 1 percentage point--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (2) Unless 2 bona fide discount points have been 
        excluded under paragraph (1), up to and including 1 
        bona fide discount point payable by the consumer in 
        connection with the mortgage, but only if the interest 
        rate from which the mortgage's interest rate will be 
        discounted does not exceed by more than 2 percentage 
        points--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (3) For purposes of paragraph (1), the term ``bona 
        fide discount points'' means loan discount points which 
        are knowingly paid by the consumer for the purpose of 
        reducing, and which in fact result in a bona fide 
        reduction of, the interest rate or time-price 
        differential applicable to the mortgage.
          (4) Paragraphs (1) and (2) shall not apply to 
        discount points used to purchase an interest rate 
        reduction unless the amount of the interest rate 
        reduction purchased is reasonably consistent with 
        established industry norms and practices for secondary 
        mortgage market transactions.

           *       *       *       *       *       *       *

CHAPTER 2--CREDIT TRANSACTIONS

           *       *       *       *       *       *       *

Sec. 129C. Minimum standards for residential mortgage loans

  (a) Ability To Repay.--
          (1) In general.--In accordance with regulations 
        prescribed by the Board, no creditor may make a 
        residential mortgage loan unless the creditor makes a 
        reasonable and good faith determination based on 
        verified and documented information that, at the time 
        the loan is consummated, the consumer has a reasonable 
        ability to repay the loan, according to its terms, and 
        all applicable taxes, insurance (including mortgage 
        guarantee insurance), and assessments.
          (2) Multiple loans.--If the creditor knows, or has 
        reason to know, that 1 or more residential mortgage 
        loans secured by the same dwelling will be made to the 
        same consumer, the creditor shall make a reasonable and 
        good faith determination, based on verified and 
        documented information, that the consumer has a 
        reasonable ability to repay the combined payments of 
        all loans on the same dwelling according to the terms 
        of those loans and all applicable taxes, insurance 
        (including mortgage guarantee insurance), and 
        assessments.
          (3) Basis for determination.--A determination under 
        this subsection of a consumer's ability to repay a 
        residential mortgage loan shall include consideration 
        of the consumer's credit history, current income, 
        expected income the consumer is reasonably assured of 
        receiving, current obligations, debt-to-income ratio or 
        the residual income the consumer will have after paying 
        non-mortgage debt and mortgage-related obligations, 
        employment status, and other financial resources other 
        than the consumer's equity in the dwelling or real 
        property that secures repayment of the loan. A creditor 
        shall determine the ability of the consumer to repay 
        using a payment schedule that fully amortizes the loan 
        over the term of the loan.
          (4) Income verification.--A creditor making a 
        residential mortgage loan shall verify amounts of 
        income or assets that such creditor relies on to 
        determine repayment ability, including expected income 
        or assets, by reviewing the consumer's Internal Revenue 
        Service Form W-2, tax returns, payroll receipts, 
        financial institution records, or other third-party 
        documents that provide reasonably reliable evidence of 
        the consumer's income or assets. In order to safeguard 
        against fraudulent reporting, any consideration of a 
        consumer's income history in making a determination 
        under this subsection shall include the verification of 
        such income by the use of--
                  (A) Internal Revenue Service transcripts of 
                tax returns; or
                  (B) a method that quickly and effectively 
                verifies income documentation by a third party 
                subject to rules prescribed by the Board.
          (5) Exemption.--With respect to loans made, 
        guaranteed, or insured by Federal departments or 
        agencies identified in subsection (b)(3)(B)(ii), such 
        departments or agencies may exempt refinancings under a 
        streamlined refinancing from this income verification 
        requirement as long as the following conditions are 
        met:
                  (A) The consumer is not 30 days or more past 
                due on the prior existing residential mortgage 
                loan.
                  (B) The refinancing does not increase the 
                principal balance outstanding on the prior 
                existing residential mortgage loan, except to 
                the extent of fees and charges allowed by the 
                department or agency making, guaranteeing, or 
                insuring the refinancing.
                  (C) Total points and fees (as defined in 
                section 103(aa)(4), other than bona fide third 
                party charges not retained by the mortgage 
                originator, creditor, or an affiliate of the 
                creditor or mortgage originator) payable in 
                connection with the refinancing do not exceed 3 
                percent of the total new loan amount.
                  (D) The interest rate on the refinanced loan 
                is lower than the interest rate of the original 
                loan, unless the borrower is refinancing from 
                an adjustable rate to a fixed-rate loan, under 
                guidelines that the department or agency shall 
                establish for loans they make, guarantee, or 
                issue.
                  (E) The refinancing is subject to a payment 
                schedule that will fully amortize the 
                refinancing in accordance with the regulations 
                prescribed by the department or agency making, 
                guaranteeing, or insuring the refinancing.
                  (F) The terms of the refinancing do not 
                result in a balloon payment, as defined in 
                subsection (b)(2)(A)(ii).
                  (G) Both the residential mortgage loan being 
                refinanced and the refinancing satisfy all 
                requirements of the department or agency 
                making, guaranteeing, or insuring the 
                refinancing.
          (6) Nonstandard loans.--
                  (A) Variable rate loans that defer repayment 
                of any principal or interest.--For purposes of 
                determining, under this subsection, a 
                consumer's ability to repay a variable rate 
                residential mortgage loan that allows or 
                requires the consumer to defer the repayment of 
                any principal or interest, the creditor shall 
                use a fully amortizing repayment schedule.
                  (B) Interest-only loans.--For purposes of 
                determining, under this subsection, a 
                consumer's ability to repay a residential 
                mortgage loan that permits or requires the 
                payment of interest only, the creditor shall 
                use the payment amount required to amortize the 
                loan by its final maturity.
                  (C) Calculation for negative amortization.--
                In making any determination under this 
                subsection, a creditor shall also take into 
                consideration any balance increase that may 
                accrue from any negative amortization 
                provision.
                  (D) Calculation process.--For purposes of 
                making any determination under this subsection, 
                a creditor shall calculate the monthly payment 
                amount for principal and interest on any 
                residential mortgage loan by assuming--
                          (i) the loan proceeds are fully 
                        disbursed on the date of the 
                        consummation of the loan;
                          (ii) the loan is to be repaid in 
                        substantially equal monthly amortizing 
                        payments for principal and interest 
                        over the entire term of the loan with 
                        no balloon payment, unless the loan 
                        contract requires more rapid repayment 
                        (including balloon payment), in which 
                        case the calculation shall be made (I) 
                        in accordance with regulations 
                        prescribed by the Board, with respect 
                        to any loan which has an annual 
                        percentage rate that does not exceed 
                        the average prime offer rate for a 
                        comparable transaction, as of the date 
                        the interest rate is set, by 1.5 or 
                        more percentage points for a first lien 
                        residential mortgage loan; and by 3.5 
                        or more percentage points for a 
                        subordinate lien residential mortgage 
                        loan; or (II) using the contract's 
                        repayment schedule, with respect to a 
                        loan which has an annual percentage 
                        rate, as of the date the interest rate 
                        is set, that is at least 1.5 percentage 
                        points above the average prime offer 
                        rate for a first lien residential 
                        mortgage loan; and 3.5 percentage 
                        points above the average prime offer 
                        rate for a subordinate lien residential 
                        mortgage loan; and
                          (iii) the interest rate over the 
                        entire term of the loan is a fixed rate 
                        equal to the fully indexed rate at the 
                        time of the loan closing, without 
                        considering the introductory rate.
                  (E) Refinance of hybrid loans with current 
                lender.--In considering any application for 
                refinancing an existing hybrid loan by the 
                creditor into a standard loan to be made by the 
                same creditor in any case in which there would 
                be a reduction in monthly payment and the 
                mortgagor has not been delinquent on any 
                payment on the existing hybrid loan, the 
                creditor may--
                          (i) consider the mortgagor's good 
                        standing on the existing mortgage;
                          (ii) consider if the extension of new 
                        credit would prevent a likely default 
                        should the original mortgage reset and 
                        give such concerns a higher priority as 
                        an acceptable underwriting practice; 
                        and
                          (iii) offer rate discounts and other 
                        favorable terms to such mortgagor that 
                        would be available to new customers 
                        with high credit ratings based on such 
                        underwriting practice.
          (7) Fully-indexed rate defined.--For purposes of this 
        subsection, the term ``fully indexed rate'' means the 
        index rate prevailing on a residential mortgage loan at 
        the time the loan is made plus the margin that will 
        apply after the expiration of any introductory interest 
        rates.
          (8) Reverse mortgages and bridge loans.--This 
        subsection shall not apply with respect to any reverse 
        mortgage or temporary or bridge loan with a term of 12 
        months or less, including to any loan to purchase a new 
        dwelling where the consumer plans to sell a different 
        dwelling within 12 months.
          (9) Seasonal income.--If documented income, including 
        income from a small business, is a repayment source for 
        a residential mortgage loan, a creditor may consider 
        the seasonality and irregularity of such income in the 
        underwriting of and scheduling of payments for such 
        credit.
  (b) Presumption of Ability To Repay.--
          (1) In general.--Any creditor with respect to any 
        residential mortgage loan, and any assignee of such 
        loan subject to liability under this title, may presume 
        that the loan has met the requirements of subsection 
        (a), if the loan is a qualified mortgage.
          (2) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Qualified mortgage.--The term ``qualified 
                mortgage'' means any residential mortgage 
                loan--
                          (i) for which the regular periodic 
                        payments for the loan may not--
                                  (I) result in an increase of 
                                the principal balance; or
                                  (II) except as provided in 
                                subparagraph (E), allow the 
                                consumer to defer repayment of 
                                principal;
                          (ii) except as provided in 
                        subparagraph (E), the terms of which do 
                        not result in a balloon payment, where 
                        a ``balloon payment'' is a scheduled 
                        payment that is more than twice as 
                        large as the average of earlier 
                        scheduled payments;
                          (iii) for which the income and 
                        financial resources relied upon to 
                        qualify the obligors on the loan are 
                        verified and documented;
                          (iv) in the case of a fixed rate 
                        loan, for which the underwriting 
                        process is based on a payment schedule 
                        that fully amortizes the loan over the 
                        loan term and takes into account all 
                        applicable taxes, insurance, and 
                        assessments;
                          (v) in the case of an adjustable rate 
                        loan, for which the underwriting is 
                        based on the maximum rate permitted 
                        under the loan during the first 5 
                        years, and a payment schedule that 
                        fully amortizes the loan over the loan 
                        term and takes into account all 
                        applicable taxes, insurance, and 
                        assessments;
                          (vi) that complies with any 
                        guidelines or regulations established 
                        by the Board relating to ratios of 
                        total monthly debt to monthly income or 
                        alternative measures of ability to pay 
                        regular expenses after payment of total 
                        monthly debt, taking into account the 
                        income levels of the borrower and such 
                        other factors as the Board may 
                        determine relevant and consistent with 
                        the purposes described in paragraph 
                        (3)(B)(i);
                          (vii) for which the total points and 
                        fees (as defined in subparagraph (C)) 
                        payable in connection with the loan do 
                        not exceed 3 percent of the total loan 
                        amount;
                          (viii) for which the term of the loan 
                        does not exceed 30 years, except as 
                        such term may be extended under 
                        paragraph (3), such as in high-cost 
                        areas; and
                          (ix) in the case of a reverse 
                        mortgage (except for the purposes of 
                        subsection (a) of section 129C, to the 
                        extent that such mortgages are exempt 
                        altogether from those requirements), a 
                        reverse mortgage which meets the 
                        standards for a qualified mortgage, as 
                        set by the Board in rules that are 
                        consistent with the purposes of this 
                        subsection.
                  (B) Average prime offer rate.--The term 
                ``average prime offer rate'' means the average 
                prime offer rate for a comparable transaction 
                as of the date on which the interest rate for 
                the transaction is set, as published by the 
                Board..
                  (C) Points and fees.--
                          (i) In general.--For purposes of 
                        subparagraph (A), the term ``points and 
                        fees'' means points and fees as defined 
                        by section 103(aa)(4) (other than bona 
                        fide third party charges not retained 
                        by the mortgage originator, creditor, 
                        or an affiliate of the creditor or 
                        mortgage originator).
                          (ii) Computation.--For purposes of 
                        computing the total points and fees 
                        under this subparagraph, the total 
                        points and fees shall exclude either of 
                        the amounts described in the following 
                        subclauses, but not both:
                                  (I) Up to and including 2 
                                bona fide discount points 
                                payable by the consumer in 
                                connection with the mortgage, 
                                but only if the interest rate 
                                from which the mortgage's 
                                interest rate will be 
                                discounted does not exceed by 
                                more than 1 percentage point 
                                the average prime offer rate.
                                  (II) Unless 2 bona fide 
                                discount points have been 
                                excluded under subclause (I), 
                                up to and including 1 bona fide 
                                discount point payable by the 
                                consumer in connection with the 
                                mortgage, but only if the 
                                interest rate from which the 
                                mortgage's interest rate will 
                                be discounted does not exceed 
                                by more than 2 percentage 
                                points the average prime offer 
                                rate.
                          (iii) Bona fide discount points 
                        defined.--For purposes of clause (ii), 
                        the term ``bona fide discount points'' 
                        means loan discount points which are 
                        knowingly paid by the consumer for the 
                        purpose of reducing, and which in fact 
                        result in a bona fide reduction of, the 
                        interest rate or time-price 
                        differential applicable to the 
                        mortgage.
                          (iv) Interest rate reduction.--
                        Subclauses (I) and (II) of clause (ii) 
                        shall not apply to discount points used 
                        to purchase an interest rate reduction 
                        unless the amount of the interest rate 
                        reduction purchased is reasonably 
                        consistent with established industry 
                        norms and practices for secondary 
                        mortgage market transactions.
                  (D) Smaller loans.--The Board shall prescribe 
                rules adjusting the criteria under subparagraph 
                (A)(vii) in order to permit lenders that extend 
                smaller loans to meet the requirements of the 
                presumption of compliance under paragraph (1). 
                In prescribing such rules, the Board shall 
                consider the potential impact of such rules on 
                rural areas and other areas where home values 
                are lower.
                  (E) Balloon loans.--The Board may, by 
                regulation, provide that the term ``qualified 
                mortgage'' includes a balloon loan--
                          (i) that meets all of the criteria 
                        for a qualified mortgage under 
                        subparagraph (A) (except clauses 
                        (i)(II), (ii), (iv), and (v) of such 
                        subparagraph);
                          (ii) for which the creditor makes a 
                        determination that the consumer is able 
                        to make all scheduled payments, except 
                        the balloon payment, out of income or 
                        assets other than the collateral;
                          (iii) for which the underwriting is 
                        based on a payment schedule that fully 
                        amortizes the loan over a period of not 
                        more than 30 years and takes into 
                        account all applicable taxes, 
                        insurance, and assessments; and
                          (iv) that is extended by a creditor 
                        that--
                                  (I) operates in rural or 
                                underserved areas;
                                  (II) together with all 
                                affiliates, has total annual 
                                residential mortgage loan 
                                originations that do not exceed 
                                a limit set by the Board;
                                  (III) retains the balloon 
                                loans in portfolio; and
                                  (IV) meets any asset size 
                                threshold and any other 
                                criteria as the Board may 
                                establish, consistent with the 
                                purposes of this subtitle.
          (3) Regulations.--
                  (A) In general.--The Board shall prescribe 
                regulations to carry out the purposes of this 
                subsection.
                  (B) Revision of safe harbor criteria.--
                          (i) In general.--The Board may 
                        prescribe regulations that revise, add 
                        to, or subtract from the criteria that 
                        define a qualified mortgage upon a 
                        finding that such regulations are 
                        necessary or proper to ensure that 
                        responsible, affordable mortgage credit 
                        remains available to consumers in a 
                        manner consistent with the purposes of 
                        this section, necessary and appropriate 
                        to effectuate the purposes of this 
                        section and section 129B, to prevent 
                        circumvention or evasion thereof, or to 
                        facilitate compliance with such 
                        sections.
                          (ii) Loan definition.--The following 
                        agencies shall, in consultation with 
                        the Board, prescribe rules defining the 
                        types of loans they insure, guarantee, 
                        or administer, as the case may be, that 
                        are qualified mortgages for purposes of 
                        paragraph (2)(A), and such rules may 
                        revise, add to, or subtract from the 
                        criteria used to define a qualified 
                        mortgage under paragraph (2)(A), upon a 
                        finding that such rules are consistent 
                        with the purposes of this section and 
                        section 129B, to prevent circumvention 
                        or evasion thereof, or to facilitate 
                        compliance with such sections:
                                  (I) The Department of Housing 
                                and Urban Development, with 
                                regard to mortgages insured 
                                under the National Housing Act 
                                (12 U.S.C. 1707 et seq.).
                                  (II) The Department of 
                                Veterans Affairs, with regard 
                                to a loan made or guaranteed by 
                                the Secretary of Veterans 
                                Affairs.
                                  (III) The Department of 
                                Agriculture, with regard loans 
                                guaranteed by the Secretary of 
                                Agriculture pursuant to 42 
                                U.S.C. 1472(h).
                                  (IV) The Rural Housing 
                                Service, with regard to loans 
                                insured by the Rural Housing 
                                Service.
  (c) Prohibition on Certain Prepayment Penalties.--
          (1) Prohibited on certain loans.--
                  (A) In general.--A residential mortgage loan 
                that is not a ``qualified mortgage'', as 
                defined under subsection (b)(2), may not 
                contain terms under which a consumer must pay a 
                prepayment penalty for paying all or part of 
                the principal after the loan is consummated.
                  (B) Exclusions.--For purposes of this 
                subsection, a ``qualified mortgage'' may not 
                include a residential mortgage loan that--
                          (i) has an adjustable rate; or
                          (ii) has an annual percentage rate 
                        that exceeds the average prime offer 
                        rate for a comparable transaction, as 
                        of the date the interest rate is set--
                                  (I) by 1.5 or more percentage 
                                points, in the case of a first 
                                lien residential mortgage loan 
                                having a original principal 
                                obligation amount that is equal 
                                to or less than the amount of 
                                the maximum limitation on the 
                                original principal obligation 
                                of mortgage in effect for a 
                                residence of the applicable 
                                size, as of the date of such 
                                interest rate set, pursuant to 
                                the 6th sentence of section 
                                305(a)(2) the Federal Home Loan 
                                Mortgage Corporation Act (12 
                                U.S.C. 1454(a)(2));
                                  (II) by 2.5 or more 
                                percentage points, in the case 
                                of a first lien residential 
                                mortgage loan having a original 
                                principal obligation amount 
                                that is more than the amount of 
                                the maximum limitation on the 
                                original principal obligation 
                                of mortgage in effect for a 
                                residence of the applicable 
                                size, as of the date of such 
                                interest rate set, pursuant to 
                                the 6th sentence of section 
                                305(a)(2) the Federal Home Loan 
                                Mortgage Corporation Act (12 
                                U.S.C. 1454(a)(2)); and
                                  (III) by 3.5 or more 
                                percentage points, in the case 
                                of a subordinate lien 
                                residential mortgage loan.
          (2) Publication of average prime offer rate and apr 
        thresholds.--The Board--
                  (A) shall publish, and update at least 
                weekly, average prime offer rates;
                  (B) may publish multiple rates based on 
                varying types of mortgage transactions; and
                  (C) shall adjust the thresholds established 
                under subclause (I), (II), and (III) of 
                paragraph (1)(B)(ii) as necessary to reflect 
                significant changes in market conditions and to 
                effectuate the purposes of the Mortgage Reform 
                and Anti-Predatory Lending Act.
          (3) Phased-out penalties on qualified mortgages.--A 
        qualified mortgage (as defined in subsection (b)(2)) 
        may not contain terms under which a consumer must pay a 
        prepayment penalty for paying all or part of the 
        principal after the loan is consummated in excess of 
        the following limitations:
                  (A) During the 1-year period beginning on the 
                date the loan is consummated, the prepayment 
                penalty shall not exceed an amount equal to 3 
                percent of the outstanding balance on the loan.
                  (B) During the 1-year period beginning after 
                the period described in subparagraph (A), the 
                prepayment penalty shall not exceed an amount 
                equal to 2 percent of the outstanding balance 
                on the loan.
                  (C) During the 1-year period beginning after 
                the 1-year period described in subparagraph 
                (B), the prepayment penalty shall not exceed an 
                amount equal to 1 percent of the outstanding 
                balance on the loan.
                  (D) After the end of the 3-year period 
                beginning on the date the loan is consummated, 
                no prepayment penalty may be imposed on a 
                qualified mortgage.
          (4) Option for no prepayment penalty required.--A 
        creditor may not offer a consumer a residential 
        mortgage loan product that has a prepayment penalty for 
        paying all or part of the principal after the loan is 
        consummated as a term of the loan without offering the 
        consumer a residential mortgage loan product that does 
        not have a prepayment penalty as a term of the loan.
  (d) Single Premium Credit Insurance Prohibited.--No creditor 
may finance, directly or indirectly, in connection with any 
residential mortgage loan or with any extension of credit under 
an open end consumer credit plan secured by the principal 
dwelling of the consumer, any credit life, credit disability, 
credit unemployment, or credit property insurance, or any other 
accident, loss-of-income, life, or health insurance, or any 
payments directly or indirectly for any debt cancellation or 
suspension agreement or contract, except that--
          (1) insurance premiums or debt cancellation or 
        suspension fees calculated and paid in full on a 
        monthly basis shall not be considered financed by the 
        creditor; and
          (2) this subsection shall not apply to credit 
        unemployment insurance for which the unemployment 
        insurance premiums are reasonable, the creditor 
        receives no direct or indirect compensation in 
        connection with the unemployment insurance premiums, 
        and the unemployment insurance premiums are paid 
        pursuant to another insurance contract and not paid to 
        an affiliate of the creditor.
  (e) Arbitration.--
          (1) In general.--No residential mortgage loan and no 
        extension of credit under an open end consumer credit 
        plan secured by the principal dwelling of the consumer 
        may include terms which require arbitration or any 
        other nonjudicial procedure as the method for resolving 
        any controversy or settling any claims arising out of 
        the transaction.
          (2) Post-controversy agreements.--Subject to 
        paragraph (3), paragraph (1) shall not be construed as 
        limiting the right of the consumer and the creditor or 
        any assignee to agree to arbitration or any other 
        nonjudicial procedure as the method for resolving any 
        controversy at any time after a dispute or claim under 
        the transaction arises.
          (3) No waiver of statutory cause of action.--No 
        provision of any residential mortgage loan or of any 
        extension of credit under an open end consumer credit 
        plan secured by the principal dwelling of the consumer, 
        and no other agreement between the consumer and the 
        creditor relating to the residential mortgage loan or 
        extension of credit referred to in paragraph (1), shall 
        be applied or interpreted so as to bar a consumer from 
        bringing an action in an appropriate district court of 
        the United States, or any other court of competent 
        jurisdiction, pursuant to section 130 or any other 
        provision of law, for damages or other relief in 
        connection with any alleged violation of this section, 
        any other provision of this title, or any other Federal 
        law.
  (f) Mortgages With Negative Amortization.--No creditor may 
extend credit to a borrower in connection with a consumer 
credit transaction under an open or closed end consumer credit 
plan secured by a dwelling or residential real property that 
includes a dwelling, other than a reverse mortgage, that 
provides or permits a payment plan that may, at any time over 
the term of the extension of credit, result in negative 
amortization unless, before such transaction is consummated--
          (1) the creditor provides the consumer with a 
        statement that--
                  (A) the pending transaction will or may, as 
                the case may be, result in negative 
                amortization;
                  (B) describes negative amortization in such 
                manner as the Board shall prescribe;
                  (C) negative amortization increases the 
                outstanding principal balance of the account; 
                and
                  (D) negative amortization reduces the 
                consumer's equity in the dwelling or real 
                property; and
          (2) in the case of a first-time borrower with respect 
        to a residential mortgage loan that is not a qualified 
        mortgage, the first-time borrower provides the creditor 
        with sufficient documentation to demonstrate that the 
        consumer received homeownership counseling from 
        organizations or counselors certified by the Secretary 
        of Housing and Urban Development as competent to 
        provide such counseling.
  (g) Protection Against Loss of Anti-deficiency Protection.--
          (1) Definition.--For purposes of this subsection, the 
        term ``anti-deficiency law'' means the law of any State 
        which provides that, in the event of foreclosure on the 
        residential property of a consumer securing a mortgage, 
        the consumer is not liable, in accordance with the 
        terms and limitations of such State law, for any 
        deficiency between the sale price obtained on such 
        property through foreclosure and the outstanding 
        balance of the mortgage.
          (2) Notice at time of consummation.--In the case of 
        any residential mortgage loan that is, or upon 
        consummation will be, subject to protection under an 
        anti-deficiency law, the creditor or mortgage 
        originator shall provide a written notice to the 
        consumer describing the protection provided by the 
        anti-deficiency law and the significance for the 
        consumer of the loss of such protection before such 
        loan is consummated.
          (3) Notice before refinancing that would cause loss 
        of protection.--In the case of any residential mortgage 
        loan that is subject to protection under an anti-
        deficiency law, if a creditor or mortgage originator 
        provides an application to a consumer, or receives an 
        application from a consumer, for any type of 
        refinancing for such loan that would cause the loan to 
        lose the protection of such anti-deficiency law, the 
        creditor or mortgage originator shall provide a written 
        notice to the consumer describing the protection 
        provided by the anti-deficiency law and the 
        significance for the consumer of the loss of such 
        protection before any agreement for any such 
        refinancing is consummated.
  (h) Policy Regarding Acceptance of Partial Payment.--In the 
case of any residential mortgage loan, a creditor shall 
disclose prior to settlement or, in the case of a person 
becoming a creditor with respect to an existing residential 
mortgage loan, at the time such person becomes a creditor--
          (1) the creditor's policy regarding the acceptance of 
        partial payments; and
          (2) if partial payments are accepted, how such 
        payments will be applied to such mortgage and if such 
        payments will be placed in escrow.
  (i) Timeshare Plans.--This section and any regulations 
promulgated under this section do not apply to an extension of 
credit relating to a plan described in section 101(53D) of 
title 11, United States Code.
  (j) Safe Harbor for Certain Loans Held on Portfolio.--
          (1) Safe harbor for creditors that are depository 
        institutions.--
                  (A) In general.--A creditor that is a 
                depository institution shall not be subject to 
                suit for failure to comply with subsection (a), 
                (c)(1), or (f)(2) of this section or section 
                129H with respect to a residential mortgage 
                loan, and the banking regulators shall treat 
                such loan as a qualified mortgage, if--
                          (i) the creditor has, since the 
                        origination of the loan, held the loan 
                        on the balance sheet of the creditor; 
                        and
                          (ii) all prepayment penalties with 
                        respect to the loan comply with the 
                        limitations described under subsection 
                        (c)(3).
                  (B) Exception for certain transfers.--In the 
                case of a depository institution that transfers 
                a loan originated by that institution to 
                another depository institution by reason of the 
                bankruptcy or failure of the originating 
                depository institution or the purchase of the 
                originating depository institution, the 
                depository institution transferring such loan 
                shall be deemed to have complied with the 
                requirement under subparagraph (A)(i).
          (2) Safe harbor for mortgage originators.--A mortgage 
        originator shall not be subject to suit for a violation 
        of section 129B(c)(3)(B) for steering a consumer to a 
        residential mortgage loan if--
                  (A) the creditor of such loan is a depository 
                institution and has informed the mortgage 
                originator that the creditor intends to hold 
                the loan on the balance sheet of the creditor 
                for the life of the loan; and
                  (B) the mortgage originator informs the 
                consumer that the creditor intends to hold the 
                loan on the balance sheet of the creditor for 
                the life of the loan.
          (3) Definitions.--For purposes of this subsection:
                  (A) Banking regulators.--The term ``banking 
                regulators'' means the Federal banking 
                agencies, the Bureau, and the National Credit 
                Union Administration.
                  (B) Depository institution.--The term 
                ``depository institution'' has the meaning 
                given that term under section 19(b)(1) of the 
                Federal Reserve Act (12 U.S.C. 505(b)(1)).
                  (C) Federal banking agencies.--The term 
                ``Federal banking agencies'' has the meaning 
                given that term under section 3 of the Federal 
                Deposit Insurance Act.

Sec. 129D. Escrow or impound accounts relating to certain consumer 
                    credit transactions

  (a) In General.--Except as provided in subsection (b), (c), 
(d), or (e), a creditor, in connection with the consummation of 
a consumer credit transaction secured by a first lien on the 
principal dwelling of the consumer, other than a consumer 
credit transaction under an open end credit plan or a reverse 
mortgage, shall establish, before the consummation of such 
transaction, an escrow or impound account for the payment of 
taxes and hazard insurance, and, if applicable, flood 
insurance, mortgage insurance, ground rents, and any other 
required periodic payments or premiums with respect to the 
property or the loan terms, as provided in, and in accordance 
with, this section.
  (b) When Required.--No impound, trust, or other type of 
account for the payment of property taxes, insurance premiums, 
or other purposes relating to the property may be required as a 
condition of a real property sale contract or a loan secured by 
a first deed of trust or mortgage on the principal dwelling of 
the consumer, other than a consumer credit transaction under an 
open end credit plan or a reverse mortgage, except when--
          (1) any such impound, trust, or other type of escrow 
        or impound account for such purposes is required by 
        Federal or State law;
          (2) a loan is made, guaranteed, or insured by a State 
        or Federal governmental lending or insuring agency;
          (3) the transaction is secured by a first mortgage or 
        lien on the consumer's principal dwelling having an 
        original principal obligation amount that--
                  (A) does not exceed the amount of the maximum 
                limitation on the original principal obligation 
                of mortgage in effect for a residence of the 
                applicable size, as of the date such interest 
                rate set, pursuant to the sixth sentence of 
                section 305(a)(2) the Federal Home Loan 
                Mortgage Corporation Act (12 U.S.C. 
                1454(a)(2)), and the annual percentage rate 
                will exceed the average prime offer rate as 
                defined in section 129C by 1.5 or more 
                percentage points; or
                  (B) exceeds the amount of the maximum 
                limitation on the original principal obligation 
                of mortgage in effect for a residence of the 
                applicable size, as of the date such interest 
                rate set, pursuant to the sixth sentence of 
                section 305(a)(2) the Federal Home Loan 
                Mortgage Corporation Act (12 U.S.C. 
                1454(a)(2)), and the annual percentage rate 
                will exceed the average prime offer rate as 
                defined in section 129C by 2.5 or more 
                percentage points; or
          (4) so required pursuant to regulation.
  (c) Exemptions.--The [Board] Bureau may, by regulation, 
exempt from the requirements of subsection (a) a creditor 
that--
          (1) operates in rural or underserved areas;
          (2) together with all affiliates, has total annual 
        mortgage loan originations that do not exceed a limit 
        set by the [Board] Bureau;
          (3) retains its mortgage loan originations in 
        portfolio; and
          (4) meets any asset size threshold and any other 
        criteria the [Board] Bureau may establish, consistent 
        with the purposes of this subtitle.
  (d) Duration of Mandatory Escrow or Impound Account.--An 
escrow or impound account established pursuant to subsection 
(b) shall remain in existence for a minimum period of 5 years, 
beginning with the date of the consummation of the loan, unless 
and until--
          (1) such borrower has sufficient equity in the 
        dwelling securing the consumer credit transaction so as 
        to no longer be required to maintain private mortgage 
        insurance;
          (2) such borrower is delinquent;
          (3) such borrower otherwise has not complied with the 
        legal obligation, as established by rule; or
          (4) the underlying mortgage establishing the account 
        is terminated.
  (e) Limited Exemptions for Loans Secured by Shares in a 
Cooperative or in Which an Association Must Maintain a Master 
Insurance Policy.--Escrow accounts need not be established for 
loans secured by shares in a cooperative. Insurance premiums 
need not be included in escrow accounts for loans secured by 
dwellings or units, where the borrower must join an association 
as a condition of ownership, and that association has an 
obligation to the dwelling or unit owners to maintain a master 
policy insuring the dwellings or units.
  (f) Clarification on Escrow Accounts for Loans Not Meeting 
Statutory Test.--For mortgages not covered by the requirements 
of subsection (b), no provision of this section shall be 
construed as precluding the establishment of an impound, trust, 
or other type of account for the payment of property taxes, 
insurance premiums, or other purposes relating to the 
property--
          (1) on terms mutually agreeable to the parties to the 
        loan;
          (2) at the discretion of the lender or servicer, as 
        provided by the contract between the lender or servicer 
        and the borrower; or
          (3) pursuant to the requirements for the escrowing of 
        flood insurance payments for regulated lending 
        institutions in section 102(d) of the Flood Disaster 
        Protection Act of 1973.
  (g) Administration of Mandatory Escrow or Impound Accounts.--
          (1) In general.--Except as may otherwise be provided 
        for in this title or in regulations prescribed by the 
        [Board] Bureau, escrow or impound accounts established 
        pursuant to subsection (b) shall be established in a 
        federally insured depository institution or credit 
        union.
          (2) Administration.--Except as provided in this 
        section or regulations prescribed under this section, 
        an escrow or impound account subject to this section 
        shall be administered in accordance with--
                  (A) the Real Estate Settlement Procedures Act 
                of 1974 and regulations prescribed under such 
                Act;
                  (B) the Flood Disaster Protection Act of 1973 
                and regulations prescribed under such Act; and
                  (C) the law of the State, if applicable, 
                where the real property securing the consumer 
                credit transaction is located.
          (3) Applicability of payment of interest.--If 
        prescribed by applicable State or Federal law, each 
        creditor shall pay interest to the consumer on the 
        amount held in any impound, trust, or escrow account 
        that is subject to this section in the manner as 
        prescribed by that applicable State or Federal law.
          (4) Penalty coordination with respa.--Any action or 
        omission on the part of any person which constitutes a 
        violation of the Real Estate Settlement Procedures Act 
        of 1974 or any regulation prescribed under such Act for 
        which the person has paid any fine, civil money 
        penalty, or other damages shall not give rise to any 
        additional fine, civil money penalty, or other damages 
        under this section, unless the action or omission also 
        constitutes a direct violation of this section.
  (h) Disclosures Relating to Mandatory Escrow or Impound 
Account.--In the case of any impound, trust, or escrow account 
that is required under subsection (b), the creditor shall 
disclose by written notice to the consumer at least 3 business 
days before the consummation of the consumer credit transaction 
giving rise to such account or in accordance with timeframes 
established in prescribed regulations the following 
information:
          (1) The fact that an escrow or impound account will 
        be established at consummation of the transaction.
          (2) The amount required at closing to initially fund 
        the escrow or impound account.
          (3) The amount, in the initial year after the 
        consummation of the transaction, of the estimated taxes 
        and hazard insurance, including flood insurance, if 
        applicable, and any other required periodic payments or 
        premiums that reflects, as appropriate, either the 
        taxable assessed value of the real property securing 
        the transaction, including the value of any 
        improvements on the property or to be constructed on 
        the property (whether or not such construction will be 
        financed from the proceeds of the transaction) or the 
        replacement costs of the property.
          (4) The estimated monthly amount payable to be 
        escrowed for taxes, hazard insurance (including flood 
        insurance, if applicable) and any other required 
        periodic payments or premiums.
          (5) The fact that, if the consumer chooses to 
        terminate the account in the future, the consumer will 
        become responsible for the payment of all taxes, hazard 
        insurance, and flood insurance, if applicable, as well 
        as any other required periodic payments or premiums on 
        the property unless a new escrow or impound account is 
        established.
          (6) Such other information as the [Board] Bureau 
        determines necessary for the protection of the 
        consumer.
  (i) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Flood insurance.--The term ``flood insurance'' 
        means flood insurance coverage provided under the 
        national flood insurance program pursuant to the 
        National Flood Insurance Act of 1968.
          (2) Hazard insurance.--The term ``hazard insurance'' 
        shall have the same meaning as provided for ``hazard 
        insurance'', ``casualty insurance'', ``homeowner's 
        insurance'', or other similar term under the law of the 
        State where the real property securing the consumer 
        credit transaction is located.
  (j) Disclosure Notice Required for Consumers Who Waive Escrow 
Services.--
          (1) In general.--If--
                  (A) an impound, trust, or other type of 
                account for the payment of property taxes, 
                insurance premiums, or other purposes relating 
                to real property securing a consumer credit 
                transaction is not established in connection 
                with the transaction; or
                  (B) a consumer chooses, and provides written 
                notice to the creditor or servicer of such 
                choice, at any time after such an account is 
                established in connection with any such 
                transaction and in accordance with any statute, 
                regulation, or contractual agreement, to close 
                such account,
        the creditor or servicer shall provide a timely and 
        clearly written disclosure to the consumer that advises 
        the consumer of the responsibilities of the consumer 
        and implications for the consumer in the absence of any 
        such account.
          (2) Disclosure requirements.--Any disclosure provided 
        to a consumer under paragraph (1) shall include the 
        following:
                  (A) Information concerning any applicable 
                fees or costs associated with either the non-
                establishment of any such account at the time 
                of the transaction, or any subsequent closure 
                of any such account.
                  (B) A clear and prominent statement that the 
                consumer is responsible for personally and 
                directly paying the non-escrowed items, in 
                addition to paying the mortgage loan payment, 
                in the absence of any such account, and the 
                fact that the costs for taxes, insurance, and 
                related fees can be substantial.
                  (C) A clear explanation of the consequences 
                of any failure to pay non-escrowed items, 
                including the possible requirement for the 
                forced placement of insurance by the creditor 
                or servicer and the potentially higher cost 
                (including any potential commission payments to 
                the servicer) or reduced coverage for the 
                consumer in the event of any such creditor-
                placed insurance.
                  (D) Such other information as the [Board] 
                Bureau determines necessary for the protection 
                of the consumer.
  (k) Safe Harbor for Loans Held by Smaller Creditors.--
          (1) In general.--A creditor shall not be in violation 
        of subsection (a) with respect to a loan if--
                  (A) the creditor has consolidated assets of 
                $10,000,000,000 or less; and
                  (B) the creditor holds the loan on the 
                balance sheet of the creditor for the 3-year 
                period beginning on the date of the origination 
                of the loan.
          (2) Exception for certain transfers.--In the case of 
        a creditor that transfers a loan to another person by 
        reason of the bankruptcy or failure of the creditor, 
        the purchase of the creditor, or a supervisory act or 
        recommendation from a State or Federal regulator, the 
        creditor shall be deemed to have complied with the 
        requirement under paragraph (1)(B).

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                              ----------                              

FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989

           *       *       *       *       *       *       *

TITLE IX--REGULATORY ENFORCEMENT AUTHORITY AND CRIMINAL ENHANCEMENTS

           *       *       *       *       *       *       *

    Subtitle E--Civil Penalties For Violations Involving Financial 
                              Institutions

SEC. 951. CIVIL PENALTIES.

  (a) In General.--Whoever violates any provision of law to 
which this section is made applicable by subsection (c) shall 
be subject to a civil penalty in an amount assessed by the 
court in a civil action under this section.
  (b) Maximum Amount of Penalty.--
          (1) Generally.--The amount of the civil penalty shall 
        not exceed $1,000,000.
          (2) Special rule for continuing violations.--In the 
        case of a continuing violation, the amount of the civil 
        penalty may exceed the amount described in paragraph 
        (1) but may not exceed the lesser of $1,000,000 per day 
        or $5,000,000.
          (3) Special rule for violations creating gain or 
        loss.--(A) If any person derives pecuniary gain from 
        the violation, or if the violation results in pecuniary 
        loss to a person other than the violator, the amount of 
        the civil penalty may exceed the amounts described in 
        paragraphs (1) and (2) but may not exceed the amount of 
        such gain or loss.
          (B) As used in this paragraph, the term ``person'' 
        includes the Bank Insurance Fund, the Savings 
        Association Insurance Fund, and after the merger of 
        such funds, the Deposit Insurance Fund, and the 
        National Credit Union Share Insurance Fund.
  (c) Violations to Which Penalty Is Applicable.--This section 
applies to a violation of, or a conspiracy to violate--
          (1) section 215, 656, 657, 1005, 1006, 1007, 1014, or 
        1344 of title 18, United States Code;
          (2) section 287, 1001, 1032, 1341 or 1343 of title 
        18, United States Code, [affecting a federally insured 
        financial institution] against a federally insured 
        financial institution or by a federally insured 
        financial institution against an unaffiliated third 
        person; or
          (3) section 16(a) of the Small Business Act (15 
        U.S.C. 645(a)).
  (d) Effective Date.--This section shall apply to violations 
occurring on or after August 10, 1984.
  (e) Attorney General to Bring Action.--A civil action to 
recover a civil penalty under this section shall be commenced 
by the Attorney General.
  (f) Burden of Proof.--In a civil action to recover a civil 
penalty under this section, the Attorney General must establish 
the right to recovery by a preponderance of the evidence.
  (g) Administrative [Subpoenas] Investigations.--
          (1) In general.--For the purpose of conducting a 
        civil investigation in contemplation of a civil 
        proceeding under this section, the Attorney General 
        may--
                  (A) administer oaths and affirmations;
                  (B) take evidence; and
                  [(C) by subpoena, summon witnesses and 
                require the production of any books, papers, 
                correspondence, memoranda, or other records 
                which the Attorney General deems relevant or 
                material to the inquiry. Such subpoena may 
                require the attendance of witnesses and the 
                production of any such records from any place 
                in the United States at any place in the United 
                States designated by the Attorney General.]
                  (C) summon witnesses and require the 
                production of any books, papers, 
                correspondence, memoranda, or other records 
                which the Attorney General deems relevant or 
                material to the inquiry, if the Attorney 
                General--
                          (i) requests a court order from a 
                        court of competent jurisdiction for 
                        such actions and offers specific and 
                        articulable facts showing that there 
                        are reasonable grounds to believe that 
                        the information or testimony sought is 
                        relevant and material for conducting an 
                        investigation under this section; or
                          (ii) either personally or through 
                        delegation no lower than the Deputy 
                        Attorney General, issues and signs a 
                        subpoena for such actions and such 
                        subpoena is supported by specific and 
                        articulable facts showing that there 
                        are reasonable grounds to believe that 
                        the information or testimony sought is 
                        relevant for conducting an 
                        investigation under this section.
          (2) Procedures applicable.--The same procedures and 
        limitations as are provided with respect to civil 
        investigative demands in subsections (g), (h), and (j) 
        of section 1968 of title 18, United States Code, apply 
        with respect to a subpoena issued under this 
        subsection. Process required by such subsections to be 
        served upon the custodian shall be served on the 
        Attorney General. Failure to comply with an order of 
        the court to enforce such subpoena shall be punishable 
        as contempt.
          (3) Limitation.--In the case of a subpoena for which 
        the return date is less than 5 days after the date of 
        service, no person shall be found in contempt for 
        failure to comply by the return date if such person 
        files a petition under paragraph (2) not later than 5 
        days after the date of service.
  (h) Statute of Limitations.--A civil action under this 
section may not be commenced later than 10 years after the 
cause of action accrues.

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                              ----------                              

REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974

           *       *       *       *       *       *       *

   servicing of mortgage loans and administration of escrow accounts

  Sec. 6. (a) Disclosure to Applicant Relating to Assignment, 
Sale, or Transfer of Loan Servicing.--Each person who makes a 
federally related mortgage loan shall disclose to each person 
who applies for the loan, at the time of application for the 
loan, whether the servicing of the loan may be assigned, sold, 
or transferred to any other person at any time while the loan 
is outstanding.
  (b) Notice by Transferor or Loan Servicing at Time of 
Transfer.--
          (1) Notice requirement.--Each servicer of any 
        federally related mortgage loan shall notify the 
        borrower in writing of any assignment, sale, or 
        transfer of the servicing of the loan to any other 
        person.
          (2) Time of notice.--
                  (A) In general.--Except as provided under 
                subparagraphs (B) and (C), the notice required 
                under paragraph (1) shall be made to the 
                borrower not less than 15 days before the 
                effective date of transfer of the servicing of 
                the mortgage loan (with respect to which such 
                notice is made).
                  (B) Exception for certain proceedings.--The 
                notice required under paragraph (1) shall be 
                made to the borrower not more than 30 days 
                after the effective date of assignment, sale, 
                or transfer of the servicing of the mortgage 
                loan (with respect to which such notice is 
                made) in any case in which the assignment, 
                sale, or transfer of the servicing of the 
                mortgage loan is preceded by--
                          (i) termination of the contract for 
                        servicing the loan for cause;
                          (ii) commencement of proceedings for 
                        bankruptcy of the servicer; or
                          (iii) commencement of proceedings by 
                        the Federal Deposit Insurance 
                        Corporation or the Resolution Trust 
                        Corporation for conservatorship or 
                        receivership of the servicer (or an 
                        entity by which the servicer is owned 
                        or controlled).
                  (C) Exception for notice provided at 
                closing.--The provisions of subparagraphs (A) 
                and (B) shall not apply to any assignment, 
                sale, or transfer of the servicing of any 
                mortgage loan if the person who makes the loan 
                provides to the borrower, at settlement (with 
                respect to the property for which the mortgage 
                loan is made), written notice under paragraph 
                (3) of such transfer.
          (3) Contents of notice.--The notice required under 
        paragraph (1) shall include the following information:
                  (A) The effective date of transfer of the 
                servicing described in such paragraph.
                  (B) The name, address, and toll-free or 
                collect call telephone number of the transferee 
                servicer.
                  (C) A toll-free or collect call telephone 
                number for (i) an individual employed by the 
                transferor servicer, or (ii) the department of 
                the transferor servicer, that can be contacted 
                by the borrower to answer inquiries relating to 
                the transfer of servicing.
                  (D) The name and toll-free or collect call 
                telephone number for (i) an individual employed 
                by the transferee servicer, or (ii) the 
                department of the transferee servicer, that can 
                be contacted by the borrower to answer 
                inquiries relating to the transfer of 
                servicing.
                  (E) The date on which the transferor servicer 
                who is servicing the mortgage loan before the 
                assignment, sale, or transfer will cease to 
                accept payments relating to the loan and the 
                date on which the transferee servicer will 
                begin to accept such payments.
                  (F) Any information concerning the effect the 
                transfer may have, if any, on the terms of or 
                the continued availability of mortgage life or 
                disability insurance or any other type of 
                optional insurance and what action, if any, the 
                borrower must take to maintain coverage.
                  (G) A statement that the assignment, sale, or 
                transfer of the servicing of the mortgage loan 
                does not affect any term or condition of the 
                security instruments other than terms directly 
                related to the servicing of such loan.
  (c) Notice by Transferee of Loan Servicing at Time of 
Transfer.--
          (1) Notice requirement.--Each transferee servicer to 
        whom the servicing of any federally related mortgage 
        loan is assigned, sold, or transferred shall notify the 
        borrower of any such assignment, sale, or transfer.
          (2) Time of notice.--
                  (A) In general.--Except as provided in 
                subparagraphs (B) and (C), the notice required 
                under paragraph (1) shall be made to the 
                borrower not more than 15 days after the 
                effective date of transfer of the servicing of 
                the mortgage loan (with respect to which such 
                notice is made).
                  (B) Exception for certain proceedings.--The 
                notice required under paragraph (1) shall be 
                made to the borrower not more than 30 days 
                after the effective date of assignment, sale, 
                or transfer of the servicing of the mortgage 
                loan (with respect to which such notice is 
                made) in any case in which the assignment, 
                sale, or transfer of the servicing of the 
                mortgage loan is preceded by--
                          (i) termination of the contract for 
                        servicing the loan for cause;
                          (ii) commencement of proceedings for 
                        bankruptcy of the servicer; or
                          (iii) commencement of proceedings by 
                        the Federal Deposit Insurance 
                        Corporation or the Resolution Trust 
                        Corporation for conservatorship or 
                        receivership of the servicer (or an 
                        entity by which the servicer is owned 
                        or controlled).
                  (C) Exception for notice provided at 
                closing.--The provisions of subparagraphs (A) 
                and (B) shall not apply to any assignment, 
                sale, or transfer of the servicing of any 
                mortgage loan if the person who makes the loan 
                provides to the borrower, at settlement (with 
                respect to the property for which the mortgage 
                loan is made), written notice under paragraph 
                (3) of such transfer.
          (3) Contents of notice.--Any notice required under 
        paragraph (1) shall include the information described 
        in subsection (b)(3).
  (d) Treatment of Loan Payments During Transfer Period.--
During the 60-day period beginning on the effective date of 
transfer of the servicing of any federally related mortgage 
loan, a late fee may not be imposed on the borrower with 
respect to any payment on such loan and no such payment may be 
treated as late for any other purposes, if the payment is 
received by the transferor servicer (rather than the transferee 
servicer who should properly receive payment) before the due 
date applicable to such payment.
  (e) Duty of Loan Servicer To Respond to Borrower Inquiries.--
          (1) Notice of receipt of inquiry.--
                  (A) In general.--If any servicer of a 
                federally related mortgage loan receives a 
                qualified written request from the borrower (or 
                an agent of the borrower) for information 
                relating to the servicing of such loan, the 
                servicer shall provide a written response 
                acknowledging receipt of the correspondence 
                within 5 days (excluding legal public holidays, 
                Saturdays, and Sundays) unless the action 
                requested is taken within such period.
                  (B) Qualified written request.--For purposes 
                of this subsection, a qualified written request 
                shall be a written correspondence, other than 
                notice on a payment coupon or other payment 
                medium supplied by the servicer, that--
                          (i) includes, or otherwise enables 
                        the servicer to identify, the name and 
                        account of the borrower; and
                          (ii) includes a statement of the 
                        reasons for the belief of the borrower, 
                        to the extent applicable, that the 
                        account is in error or provides 
                        sufficient detail to the servicer 
                        regarding other information sought by 
                        the borrower.
          (2) Action with respect to inquiry.--Not later than 
        30 days (excluding legal public holidays, Saturdays, 
        and Sundays) after the receipt from any borrower of any 
        qualified written request under paragraph (1) and, if 
        applicable, before taking any action with respect to 
        the inquiry of the borrower, the servicer shall--
                  (A) make appropriate corrections in the 
                account of the borrower, including the 
                crediting of any late charges or penalties, and 
                transmit to the borrower a written notification 
                of such correction (which shall include the 
                name and telephone number of a representative 
                of the servicer who can provide assistance to 
                the borrower);
                  (B) after conducting an investigation, 
                provide the borrower with a written explanation 
                or clarification that includes--
                          (i) to the extent applicable, a 
                        statement of the reasons for which the 
                        servicer believes the account of the 
                        borrower is correct as determined by 
                        the servicer; and
                          (ii) the name and telephone number of 
                        an individual employed by, or the 
                        office or department of, the servicer 
                        who can provide assistance to the 
                        borrower; or
                  (C) after conducting an investigation, 
                provide the borrower with a written explanation 
                or clarification that includes--
                          (i) information requested by the 
                        borrower or an explanation of why the 
                        information requested is unavailable or 
                        cannot be obtained by the servicer; and
                          (ii) the name and telephone number of 
                        an individual employed by, or the 
                        office or department of, the servicer 
                        who can provide assistance to the 
                        borrower.
          (3) Protection of credit rating.--During the 60-day 
        period beginning on the date of the servicer's receipt 
        from any borrower of a qualified written request 
        relating to a dispute regarding the borrower's 
        payments, a servicer may not provide information 
        regarding any overdue payment, owed by such borrower 
        and relating to such period or qualified written 
        request, to any consumer reporting agency (as such term 
        is defined under section 603 of the Fair Credit 
        Reporting Act).
          (4) Limited extension of response time.--The 30-day 
        period described in paragraph (2) may be extended for 
        not more than 15 days if, before the end of such 30-day 
        period, the servicer notifies the borrower of the 
        extension and the reasons for the delay in responding.
  (f) Damages and Costs.--Whoever fails to comply with any 
provision of this section shall be liable to the borrower for 
each such failure in the following amounts:
          (1) Individuals.--In the case of any action by an 
        individual, an amount equal to the sum of--
                  (A) any actual damages to the borrower as a 
                result of the failure; and
                  (B) any additional damages, as the court may 
                allow, in the case of a pattern or practice of 
                noncompliance with the requirements of this 
                section, in an amount not to exceed $2,000.
          (2) Class actions.--In the case of a class action, an 
        amount equal to the sum of--
                  (A) any actual damages to each of the 
                borrowers in the class as a result of the 
                failure; and
                  (B) any additional damages, as the court may 
                allow, in the case of a pattern or practice of 
                noncompliance with the requirements of this 
                section, in an amount not greater than $2,000 
                for each member of the class, except that the 
                total amount of damages under this subparagraph 
                in any class action may not exceed the lesser 
                of--
                          (i) $1,000,000; or
                          (ii) 1 percent of the net worth of 
                        the servicer.
          (3) Costs.--In addition to the amounts under 
        paragraph (1) or (2), in the case of any successful 
        action under this section, the costs of the action, 
        together with any attorneys fees incurred in connection 
        with such action as the court may determine to be 
        reasonable under the circumstances.
          (4) Nonliability.--A transferor or transferee 
        servicer shall not be liable under this subsection for 
        any failure to comply with any requirement under this 
        section if, within 60 days after discovering an error 
        (whether pursuant to a final written examination report 
        or the servicer's own procedures) and before the 
        commencement of an action under this subsection and the 
        receipt of written notice of the error from the 
        borrower, the servicer notifies the person concerned of 
        the error and makes whatever adjustments are necessary 
        in the appropriate account to ensure that the person 
        will not be required to pay an amount in excess of any 
        amount that the person otherwise would have paid.
  (g) Administration of Escrow Accounts.--If the terms of any 
federally related mortgage loan require the borrower to make 
payments to the servicer of the loan for deposit into an escrow 
account for the purpose of assuring payment of taxes, insurance 
premiums, and other charges with respect to the property, the 
servicer shall make payments from the escrow account for such 
taxes, insurance premiums, and other charges in a timely manner 
as such payments become due. Any balance in any such account 
that is within the servicer's control at the time the loan is 
paid off shall be promptly returned to the borrower within 20 
business days or credited to a similar account for a new 
mortgage loan to the borrower with the same lender.
  (h) Preemption of Conflicting State Laws.--Notwithstanding 
any provision of any law or regulation of any State, a person 
who makes a federally related mortgage loan or a servicer shall 
be considered to have complied with the provisions of any such 
State law or regulation requiring notice to a borrower at the 
time of application for a loan or transfer of the servicing of 
a loan if such person or servicer complies with the 
requirements under this section regarding timing, content, and 
procedures for notification of the borrower.
  (i) Definitions.--For purposes of this section:
          (1) Effective date of transfer.--The term ``effective 
        date of transfer'' means the date on which the mortgage 
        payment of a borrower is first due to the transferee 
        servicer of a mortgage loan pursuant to the assignment, 
        sale, or transfer of the servicing of the mortgage 
        loan.
          (2) Servicer.--The term ``servicer'' means the person 
        responsible for servicing of a loan (including the 
        person who makes or holds a loan if such person also 
        services the loan). The term does not include--
                  (A) the Federal Deposit Insurance Corporation 
                or the Resolution Trust Corporation, in 
                connection with assets acquired, assigned, 
                sold, or transferred pursuant to section 13(c) 
                of the Federal Deposit Insurance Act or as 
                receiver or conservator of an insured 
                depository institution; and
                  (B) the Government National Mortgage 
                Association, the Federal National Mortgage 
                Association, the Federal Home Loan Mortgage 
                Corporation, the Resolution Trust Corporation, 
                or the Federal Deposit Insurance Corporation, 
                in any case in which the assignment, sale, or 
                transfer of the servicing of the mortgage loan 
                is preceded by--
                          (i) termination of the contract for 
                        servicing the loan for cause;
                          (ii) commencement of proceedings for 
                        bankruptcy of the servicer; or
                          (iii) commencement of proceedings by 
                        the Federal Deposit Insurance 
                        Corporation or the Resolution Trust 
                        Corporation for conservatorship or 
                        receivership of the servicer (or an 
                        entity by which the servicer is owned 
                        or controlled).
          (3) Servicing.--The term ``servicing'' means 
        receiving any scheduled periodic payments from a 
        borrower pursuant to the terms of any loan, including 
        amounts for escrow accounts described in section 10, 
        and making the payments of principal and interest and 
        such other payments with respect to the amounts 
        received from the borrower as may be required pursuant 
        to the terms of the loan.
  (j) Transition.--
          (1) Originator liability.--A person who makes a 
        federally related mortgage loan shall not be liable to 
        a borrower because of a failure of such person to 
        comply with subsection (a) with respect to an 
        application for a loan made by the borrower before the 
        regulations referred to in paragraph (3) take effect.
          (2) Servicer liability.--A servicer of a federally 
        related mortgage loan shall not be liable to a borrower 
        because of a failure of the servicer to perform any 
        duty under subsection (b), (c), (d), or (e) that arises 
        before the regulations referred to in paragraph (3) 
        take effect.
          (3) Regulations and effective date.--The Bureau shall 
        establish any requirements necessary to carry out this 
        section. Such regulations shall include the model 
        disclosure statement required under subsection (a)(2).
  (k) Servicer Prohibitions.--
          (1) In general.--A servicer of a federally related 
        mortgage shall not--
                  (A) obtain force-placed hazard insurance 
                unless there is a reasonable basis to believe 
                the borrower has failed to comply with the loan 
                contract's requirements to maintain property 
                insurance;
                  (B) charge fees for responding to valid 
                qualified written requests (as defined in 
                regulations which the Bureau of Consumer 
                Financial Protection shall prescribe) under 
                this section;
                  (C) fail to take timely action to respond to 
                a borrower's requests to correct errors 
                relating to allocation of payments, final 
                balances for purposes of paying off the loan, 
                or avoiding foreclosure, or other standard 
                servicer's duties;
                  (D) fail to respond within 10 business days 
                to a request from a borrower to provide the 
                identity, address, and other relevant contact 
                information about the owner or assignee of the 
                loan; or
                  (E) fail to comply with any other obligation 
                found by the Bureau of Consumer Financial 
                Protection, by regulation, to be appropriate to 
                carry out the consumer protection purposes of 
                this Act.
          (2) Force-placed insurance defined.--For purposes of 
        this subsection and subsections (l) and (m), the term 
        ``force-placed insurance'' means hazard insurance 
        coverage obtained by a servicer of a federally related 
        mortgage when the borrower has failed to maintain or 
        renew hazard insurance on such property as required of 
        the borrower under the terms of the mortgage.
  (l) Requirements for Force-placed Insurance.--A servicer of a 
federally related mortgage shall not be construed as having a 
reasonable basis for obtaining force-placed insurance unless 
the requirements of this subsection have been met.
          (1) Written notices to borrower.--A servicer may not 
        impose any charge on any borrower for force-placed 
        insurance with respect to any property securing a 
        federally related mortgage unless--
                  (A) the servicer has sent, by first-class 
                mail, a written notice to the borrower 
                containing--
                          (i) a reminder of the borrower's 
                        obligation to maintain hazard insurance 
                        on the property securing the federally 
                        related mortgage;
                          (ii) a statement that the servicer 
                        does not have evidence of insurance 
                        coverage of such property;
                          (iii) a clear and conspicuous 
                        statement of the procedures by which 
                        the borrower may demonstrate that the 
                        borrower already has insurance 
                        coverage; and
                          (iv) a statement that the servicer 
                        may obtain such coverage at the 
                        borrower's expense if the borrower does 
                        not provide such demonstration of the 
                        borrower's existing coverage in a 
                        timely manner;
                  (B) the servicer has sent, by first-class 
                mail, a second written notice, at least 30 days 
                after the mailing of the notice under 
                subparagraph (A) that contains all the 
                information described in each clause of such 
                subparagraph; and
                  (C) the servicer has not received from the 
                borrower any demonstration of hazard insurance 
                coverage for the property securing the mortgage 
                by the end of the 15-day period beginning on 
                the date the notice under subparagraph (B) was 
                sent by the servicer.
          (2) Sufficiency of demonstration.--A servicer of a 
        federally related mortgage shall accept any reasonable 
        form of written confirmation from a borrower of 
        existing insurance coverage, which shall include the 
        existing insurance policy number along with the 
        identity of, and contact information for, the insurance 
        company or agent, or as otherwise required by the 
        Bureau of Consumer Financial Protection.
          (3) Termination of force-placed insurance.--Within 15 
        days of the receipt by a servicer of confirmation of a 
        borrower's existing insurance coverage, the servicer 
        shall--
                  (A) terminate the force-placed insurance; and
                  (B) refund to the consumer all force-placed 
                insurance premiums paid by the borrower during 
                any period during which the borrower's 
                insurance coverage and the force-placed 
                insurance coverage were each in effect, and any 
                related fees charged to the consumer's account 
                with respect to the force-placed insurance 
                during such period.
          (4) Clarification with respect to flood disaster 
        protection act.--No provision of this section shall be 
        construed as prohibiting a servicer from providing 
        simultaneous or concurrent notice of a lack of flood 
        insurance pursuant to section 102(e) of the Flood 
        Disaster Protection Act of 1973.
  (m) Limitations on Force-placed Insurance Charges.--All 
charges, apart from charges subject to State regulation as the 
business of insurance, related to force-placed insurance 
imposed on the borrower by or through the servicer shall be 
bona fide and reasonable.
  (n) Small Servicer Exemption.--The Bureau shall, by 
regulation, provide exemptions to, or adjustments for, the 
provisions of this section for a servicer that annually 
services 20,000 or fewer mortgage loans, in order to reduce 
regulatory burdens while appropriately balancing consumer 
protections.

           *       *       *       *       *       *       *

                              ----------                              

S.A.F.E. MORTGAGE LICENSING ACT OF 2008

           *       *       *       *       *       *       *

DIVISION A--HOUSING FINANCE REFORM

           *       *       *       *       *       *       *

TITLE V--S.A.F.E. MORTGAGE LICENSING ACT

           *       *       *       *       *       *       *

SEC. 1513. LIABILITY PROVISIONS.

  The Bureau, any State official or agency, or any organization 
serving as the administrator of the Nationwide Mortgage 
Licensing System and Registry or a system established by the 
Director under section 1509, or any officer or employee of any 
such entity, shall not be subject to any civil action or 
proceeding for monetary damages by reason of the good faith 
action or omission of any officer or employee of any such 
entity, while acting within the scope of office or employment, 
relating to the collection, furnishing, or dissemination of 
information concerning persons who [are loan originators or are 
applying for licensing or registration as loan originators] are 
applying for licensing or registration using the Nationwide 
Mortgage Licensing System and Registry.

           *       *       *       *       *       *       *

SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.

  (a) Temporary Authority to Originate Loans for Loan 
Originators Moving From a Depository Institution to a Non-
depository Institution.--
          (1) In general.--Upon employment by a State-licensed 
        mortgage company, an individual who is a registered 
        loan originator shall be deemed to have temporary 
        authority to act as a loan originator in an application 
        State for the period described in paragraph (2) if the 
        individual--
                  (A) has not had an application for a loan 
                originator license denied, or had such a 
                license revoked or suspended in any 
                governmental jurisdiction;
                  (B) has not been subject to or served with a 
                cease and desist order in any governmental 
                jurisdiction or as described in section 
                1514(c);
                  (C) has not been convicted of a felony that 
                would preclude licensure under the law of the 
                application State;
                  (D) has submitted an application to be a 
                State-licensed loan originator in the 
                application State; and
                  (E) was registered in the Nationwide Mortgage 
                Licensing System and Registry as a loan 
                originator during the 12-month period preceding 
                the date of submission of the information 
                required under section 1505(a).
          (2) Period.--The period described in paragraph (1) 
        shall begin on the date that the individual submits the 
        information required under section 1505(a) and shall 
        end on the earliest of--
                  (A) the date that the individual withdraws 
                the application to be a State-licensed loan 
                originator in the application State;
                  (B) the date that the application State 
                denies, or issues a notice of intent to deny, 
                the application;
                  (C) the date that the application State 
                grants a State license; or
                  (D) the date that is 120 days after the date 
                on which the individual submits the 
                application, if the application is listed on 
                the Nationwide Mortgage Licensing System and 
                Registry as incomplete.
  (b) Temporary Authority to Originate Loans for State-licensed 
Loan Originators Moving Interstate.--
          (1) In general.--A State-licensed loan originator 
        shall be deemed to have temporary authority to act as a 
        loan originator in an application State for the period 
        described in paragraph (2) if the State-licensed loan 
        originator--
                  (A) meets the requirements of subparagraphs 
                (A), (B), (C), and (D) of subsection (a)(1);
                  (B) is employed by a State-licensed mortgage 
                company in the application State; and
                  (C) was licensed in a State that is not the 
                application State during the 30-day period 
                preceding the date of submission of the 
                information required under section 1505(a) in 
                connection with the application submitted to 
                the application State.
          (2) Period.--The period described in paragraph (1) 
        shall begin on the date that the State-licensed loan 
        originator submits the information required under 
        section 1505(a) in connection with the application 
        submitted to the application State and end on the 
        earliest of--
                  (A) the date that the State-licensed loan 
                originator withdraws the application to be a 
                State-licensed loan originator in the 
                application State;
                  (B) the date that the application State 
                denies, or issues a notice of intent to deny, 
                the application;
                  (C) the date that the application State 
                grants a State license; or
                  (D) the date that is 120 days after the date 
                on which the State-licensed loan originator 
                submits the application, if the application is 
                listed on the Nationwide Mortgage Licensing 
                System and Registry as incomplete.
  (c) Applicability.--
          (1) Any person employing an individual who is deemed 
        to have temporary authority to act as a loan originator 
        in an application State pursuant to this section shall 
        be subject to the requirements of this title and to 
        applicable State law to the same extent as if such 
        individual was a State-licensed loan originator 
        licensed by the application State.
          (2) Any individual who is deemed to have temporary 
        authority to act as a loan originator in an application 
        State pursuant to this section and who engages in 
        residential mortgage loan origination activities shall 
        be subject to the requirements of this title and to 
        applicable State law to the same extent as if such 
        individual was a State-licensed loan originator 
        licensed by the application State.
  (d) Definitions.--In this section, the following definitions 
shall apply:
          (1) State-licensed mortgage company.--The term 
        ``State-licensed mortgage company'' means an entity 
        licensed or registered under the law of any State to 
        engage in residential mortgage loan origination and 
        processing activities.
          (2) Application state.--The term ``application 
        State'' means a State in which a registered loan 
        originator or a State-licensed loan originator seeks to 
        be licensed.
                              ----------                              

               HOUSING AND ECONOMIC RECOVERY ACT OF 2008

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Housing and 
Economic Recovery Act of 2008''.
  (b) Table of Content.--The table of contents for this Act is 
as follows:

     * * * * * * *

                   DIVISION A--HOUSING FINANCE REFORM

     * * * * * * *

                TITLE V--S.A.F.E. MORTGAGE LICENSING ACT

     * * * * * * *
Sec. 1518. Employment transition of loan originators.
                              ----------                              

EQUAL CREDIT OPPORTUNITY ACT

           *       *       *       *       *       *       *

                  TITLE VII--EQUAL CREDIT OPPORTUNITY

Sec. 701. Prohibited discrimination; reasons for adverse action

  (a) It shall be unlawful for any creditor to discriminate 
against any applicant, with respect to any aspect of a credit 
transaction--
          (1) on the basis of race, color, religion, national 
        origin, sex or marital status, or age (provided the 
        applicant has the capacity to contract);
          (2) because all or part of the applicant's income 
        derives from any public assistance program; or
          (3) because the applicant has in good faith exercised 
        any right under the Consumer Credit Protection Act.
  (b) It shall not constitute discrimination for purposes of 
this title for a creditor--
          (1) to make an inquiry of marital status if such 
        inquiry is for the purpose of ascertaining the 
        creditor's rights and remedies applicable to the 
        particular extension of credit and not to discriminate 
        in a determination of credit-worthiness;
          (2) to make an inquiry of the applicant's age or of 
        whether the applicant's income derives from any public 
        assistance program if such inquiry is for the purpose 
        of determining the amount and probable continuance of 
        income levels, credit history, or other pertinent 
        element of credit-worthiness as provided in regulations 
        of the Board;
          (3) to use any empirically derived credit system 
        which considers age if such system is demonstrably and 
        statistically sound in accordance with regulations of 
        the Bureau, except that in the operation of such system 
        the age of an elderly applicant may not be assigned a 
        negative factor or value; or
          (4) to make an inquiry or to consider the age of an 
        elderly applicant when the age of such applicant is to 
        be used by the creditor in the extension of credit in 
        favor of such applicant[; or].
          [(5) to make an inquiry under section 704B, in 
        accordance with the requirements of that section.]
  (c) It is not a violation of this section for a creditor to 
refuse to extend credit offered pursuant to--
          (1) any credit assistance program expressly 
        authorized by law for an economically disadvantaged 
        class of persons;
          (2) any credit assistance program administered by a 
        nonprofit organization for its members or an 
        economically disadvantaged class of persons; or
          (3) any special purpose credit program offered by a 
        profit-making organization to meet special social needs 
        which meets standards prescribed in regulations by the 
        Board;
if such refusal is required by or made pursuant to such 
program.
  (d)(1) Within thirty days (or such longer reasonable time as 
specified in regulations of the Bureau for any class of credit 
transaction) after receipt of a completed application for 
credit, a creditor shall notify the applicant of its action on 
the application.
  (2) Each applicant against whom adverse action is taken shall 
be entitled to a statement of reasons for such action from the 
creditor. A creditor satisfies this obligation by--
          (A) providing statements of reasons in writing as a 
        matter of course to applicants against whom adverse 
        action is taken; or
          (B) giving written notification of adverse action 
        which discloses (i) the applicant's right to a 
        statement of reasons within thirty days after receipt 
        by the creditor of a request made within sixty days 
        after such notification, and (ii) the identity of the 
        person or office from which such statement may be 
        obtained. Such statement may be given orally, if the 
        written notification advises the applicant of his right 
        to have the statement of reasons confirmed in writing 
        on written request.
  (3) A statement of reasons meets the requirements of this 
section only if it contains the specific reasons for the 
adverse action taken.
  (4) Where a creditor has been requested by a third party to 
make a specific extension of credit directly or indirectly to 
an applicant, the notification and statement of reasons 
required by this subsection may be made directly by such 
creditor, or indirectly through the third party, provided in 
either case that the identity of the creditor is disclosed.
  (5) The requirements of paragraphs (2), (3), or (4) may be 
satisfied by verbal statements or notifications in the case of 
any creditor who did not act on more than one hundred and fifty 
applications during the calendar year preceding the calendar 
year in which the adverse action is taken, as determined under 
regulations of the Board.
  (6) For purposes of this subsection, the term ``adverse 
action'' means a denial or revocation of credit, a change in 
the terms of an existing credit arrangement, or a refusal to 
grant credit in substantially the amount or on substantially 
the terms requested. Such term does not include a refusal to 
extend additional credit under an existing credit arrangement 
where the applicant is delinquent or otherwise in default, or 
where such additional credit would exceed a previously 
established credit limit.
  (e) Copies Furnished to Applicants.--
          (1) In general.--Each creditor shall furnish to an 
        applicant a copy of any and all written appraisals and 
        valuations developed in connection with the applicant's 
        application for a loan that is secured or would have 
        been secured by a first lien on a dwelling promptly 
        upon completion, but in no case later than 3 days prior 
        to the closing of the loan, whether the creditor grants 
        or denies the applicant's request for credit or the 
        application is incomplete or withdrawn.
          (2) Waiver.--The applicant may waive the 3 day 
        requirement provided for in paragraph (1), except where 
        otherwise required in law.
          (3) Reimbursement.--The applicant may be required to 
        pay a reasonable fee to reimburse the creditor for the 
        cost of the appraisal, except where otherwise required 
        in law.
          (4) Free copy.--Notwithstanding paragraph (3), the 
        creditor shall provide a copy of each written appraisal 
        or valuation at no additional cost to the applicant.
          (5) Notification to applicants.--At the time of 
        application, the creditor shall notify an applicant in 
        writing of the right to receive a copy of each written 
        appraisal and valuation under this subsection.
          (6) Valuation defined.--For purposes of this 
        subsection, the term ``valuation'' shall include any 
        estimate of the value of a dwelling developed in 
        connection with a creditor's decision to provide 
        credit, including those values developed pursuant to a 
        policy of a government sponsored enterprise or by an 
        automated valuation model, a broker price opinion, or 
        other methodology or mechanism.

           *       *       *       *       *       *       *

[SEC. 704B. SMALL BUSINESS LOAN DATA COLLECTION.

  [(a) Purpose.--The purpose of this section is to facilitate 
enforcement of fair lending laws and enable communities, 
governmental entities, and creditors to identify business and 
community development needs and opportunities of women-owned, 
minority-owned, and small businesses.
  [(b) Information Gathering.--Subject to the requirements of 
this section, in the case of any application to a financial 
institution for credit for women-owned, minority-owned, or 
small business, the financial institution shall--
          [(1) inquire whether the business is a women-owned, 
        minority-owned, or small business, without regard to 
        whether such application is received in person, by 
        mail, by telephone, by electronic mail or other form of 
        electronic transmission, or by any other means, and 
        whether or not such application is in response to a 
        solicitation by the financial institution; and
          [(2) maintain a record of the responses to such 
        inquiry, separate from the application and accompanying 
        information.
  [(c) Right To Refuse.--Any applicant for credit may refuse to 
provide any information requested pursuant to subsection (b) in 
connection with any application for credit.
  [(d) No Access by Underwriters.--
          [(1) Limitation.--Where feasible, no loan underwriter 
        or other officer or employee of a financial 
        institution, or any affiliate of a financial 
        institution, involved in making any determination 
        concerning an application for credit shall have access 
        to any information provided by the applicant pursuant 
        to a request under subsection (b) in connection with 
        such application.
          [(2) Limited access.--If a financial institution 
        determines that a loan underwriter or other officer or 
        employee of a financial institution, or any affiliate 
        of a financial institution, involved in making any 
        determination concerning an application for credit 
        should have access to any information provided by the 
        applicant pursuant to a request under subsection (b), 
        the financial institution shall provide notice to the 
        applicant of the access of the underwriter to such 
        information, along with notice that the financial 
        institution may not discriminate on the basis of such 
        information.
  [(e) Form and Manner of Information.--
          [(1) In general.--Each financial institution shall 
        compile and maintain, in accordance with regulations of 
        the Bureau, a record of the information provided by any 
        loan applicant pursuant to a request under subsection 
        (b).
          [(2) Itemization.--Information compiled and 
        maintained under paragraph (1) shall be itemized in 
        order to clearly and conspicuously disclose--
                  [(A) the number of the application and the 
                date on which the application was received;
                  [(B) the type and purpose of the loan or 
                other credit being applied for;
                  [(C) the amount of the credit or credit limit 
                applied for, and the amount of the credit 
                transaction or the credit limit approved for 
                such applicant;
                  [(D) the type of action taken with respect to 
                such application, and the date of such action;
                  [(E) the census tract in which is located the 
                principal place of business of the women-owned, 
                minority-owned, or small business loan 
                applicant;
                  [(F) the gross annual revenue of the business 
                in the last fiscal year of the women-owned, 
                minority-owned, or small business loan 
                applicant preceding the date of the 
                application;
                  [(G) the race, sex, and ethnicity of the 
                principal owners of the business; and
                  [(H) any additional data that the Bureau 
                determines would aid in fulfilling the purposes 
                of this section.
          [(3) No personally identifiable information.--In 
        compiling and maintaining any record of information 
        under this section, a financial institution may not 
        include in such record the name, specific address 
        (other than the census tract required under paragraph 
        (1)(E)), telephone number, electronic mail address, or 
        any other personally identifiable information 
        concerning any individual who is, or is connected with, 
        the women-owned, minority-owned, or small business loan 
        applicant.
          [(4) Discretion to delete or modify publicly 
        available data.--The Bureau may, at its discretion, 
        delete or modify data collected under this section 
        which is or will be available to the public, if the 
        Bureau determines that the deletion or modification of 
        the data would advance a privacy interest.
  [(f) Availability of Information.--
          [(1) Submission to bureau.--The data required to be 
        compiled and maintained under this section by any 
        financial institution shall be submitted annually to 
        the Bureau.
          [(2) Availability of information.--Information 
        compiled and maintained under this section shall be--
                  [(A) retained for not less than 3 years after 
                the date of preparation;
                  [(B) made available to any member of the 
                public, upon request, in the form required 
                under regulations prescribed by the Bureau;
                  [(C) annually made available to the public 
                generally by the Bureau, in such form and in 
                such manner as is determined by the Bureau, by 
                regulation.
          [(3) Compilation of aggregate data.--The Bureau may, 
        at its discretion--
                  [(A) compile and aggregate data collected 
                under this section for its own use; and
                  [(B) make public such compilations of 
                aggregate data.
  [(g) Bureau Action.--
          [(1) In general.--The Bureau shall prescribe such 
        rules and issue such guidance as may be necessary to 
        carry out, enforce, and compile data pursuant to this 
        section.
          [(2) Exceptions.--The Bureau, by rule or order, may 
        adopt exceptions to any requirement of this section and 
        may, conditionally or unconditionally, exempt any 
        financial institution or class of financial 
        institutions from the requirements of this section, as 
        the Bureau deems necessary or appropriate to carry out 
        the purposes of this section.
          [(3) Guidance.--The Bureau shall issue guidance 
        designed to facilitate compliance with the requirements 
        of this section, including assisting financial 
        institutions in working with applicants to determine 
        whether the applicants are women-owned, minority-owned, 
        or small businesses for purposes of this section.
  [(h) Definitions.--For purposes of this section, the 
following definitions shall apply:
          [(1) Financial institution.--The term ``financial 
        institution'' means any partnership, company, 
        corporation, association (incorporated or 
        unincorporated), trust, estate, cooperative 
        organization, or other entity that engages in any 
        financial activity.
          [(2) Small business.--The term ``small business'' has 
        the same meaning as the term ``small business concern'' 
        in section 3 of the Small Business Act (15 U.S.C. 632).
          [(3) Small business loan.--The term ``small business 
        loan'' means a loan made to a small business.
          [(4) Minority.--The term ``minority'' has the same 
        meaning as in section 1204(c)(3) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989.
          [(5) Minority-owned business.--The term ``minority-
        owned business'' means a business--
                  [(A) more than 50 percent of the ownership or 
                control of which is held by 1 or more minority 
                individuals; and
                  [(B) more than 50 percent of the net profit 
                or loss of which accrues to 1 or more minority 
                individuals.
          [(6) Women-owned business.--The term ``women-owned 
        business'' means a business--
                  [(A) more than 50 percent of the ownership or 
                control of which is held by 1 or more women; 
                and
                  [(B) more than 50 percent of the net profit 
                or loss of which accrues to 1 or more women.]

           *       *       *       *       *       *       *

                              ----------                              

CONSUMER CREDIT PROTECTION ACT

           *       *       *       *       *       *       *

                  TITLE VII--EQUAL CREDIT OPPORTUNITY

Sec.
701. Prohibited discrimination.
     * * * * * * *
[704B. Small business loan data collection.]

           *       *       *       *       *       *       *

                              ----------                              

                  HOME MORTGAGE DISCLOSURE ACT OF 1975

TITLE III--HOME MORTGAGE DISCLOSURE

           *       *       *       *       *       *       *

              maintenance of records and public disclosure

  Sec. 304. (a)(1) Each depository institution which has a home 
office or branch office located within a primary metropolitan 
statistical area, metropolitan statistical area, or 
consolidated metropolitan statistical area that is not 
comprised of designated primary metropolitan statistical areas, 
as defined by the Department of Commerce shall compile and make 
available, in accordance with regulations of the Board, to the 
public for inspection and copying at the home office, and at 
least one branch office within each primary metropolitan 
statistical area, metropolitan statistical area, or 
consolidated metropolitan statistical area that is not 
comprised of designated primary metropolitan statistical areas 
in which the depository institution has an office the number 
and total dollar amount of mortgage loans which were (A) 
originated (or for which the institution received completed 
applications), or (B) purchased by that institution during each 
fiscal year (beginning with the last full fiscal year of that 
institution which immediately preceded the effective date of 
this title).
  (2) The information required to be maintained and made 
available under paragraph (1) shall also be itemized in order 
to clearly and conspicuously disclose the following:
          (A) The number and dollar amount for each item 
        referred to in paragraph (1), by census tracts for 
        mortgage loans secured by property located within any 
        county with a population of more than 30,000, within 
        that primary metropolitan statistical area, 
        metropolitan statistical area, or consolidated 
        metropolitan statistical area that is not comprised of 
        designated primary metropolitan statistical areas, 
        otherwise, by county, for mortgage loans secured by 
        property located within any other county within that 
        standard metropolitan statistical area.
          (B) The number and dollar amount for each item 
        referred to in paragraph (1) for all such mortgage 
        loans which are secured by property located outside 
        that primary metropolitan statistical area, 
        metropolitan statistical area, or consolidated 
        metropolitan statistical area that is not comprised of 
        designated primary metropolitan statistical areas.
For the purpose of this paragraph, a depository institution 
which maintains offices in more than one primary metropolitan 
statistical area, metropolitan statistical area, or 
consolidated metropolitan statistical area that is not 
comprised of designated primary metropolitan statistical areas 
shall be required to make the information required by this 
paragraph available at any such office only to the extent that 
such information relates to mortgage loans which were 
originated or purchased (or for which completed applications 
were received) by an office of that depository institution 
located in the primary metropolitan statistical area, 
metropolitan statistical area, or consolidated metropolitan 
statistical area that is not comprised of designated primary 
metropolitan statistical areas in which the office making such 
information available is located. For purposes of this 
paragraph, other lending institutions shall be deemed to have a 
home office or branch office within a primary metropolitan 
statistical area, metropolitan statistical area, or 
consolidated metropolitan statistical area that is not 
comprised of designated primary metropolitan statistical areas 
if such institutions have originated or purchased or received 
completed applications for at least 5 mortgage loans in such 
area in the preceding calendar year.
  (b) Any item of information relating to mortgage loans 
required to be maintained under subsection (a) shall be further 
itemized in order to disclose for each such item--
          (1) the number and dollar amount of mortgage loans 
        which are insured under title II of the National 
        Housing Act or under title V of the Housing Act of 1949 
        or which are guaranteed under chapter 37 of title 38, 
        United States Code;
          (2) the number and dollar amount of mortgage loans 
        made to mortgagors who did not, at the time of 
        execution of the mortgage, intend to reside in the 
        property securing the mortgage loan;
          (3) the number and dollar amount of home improvement 
        loans;
          (4) the number and dollar amount of mortgage loans 
        and completed applications involving mortgagors or 
        mortgage applicants grouped according to census tract, 
        income level, racial characteristics, age, and gender;
          (5) the number and dollar amount of mortgage loans 
        grouped according to measurements of--
                  (A) the total points and fees payable at 
                origination in connection with the mortgage as 
                determined by the Bureau, taking into account 
                15 U.S.C. 1602(aa)(4);
                  (B) the difference between the annual 
                percentage rate associated with the loan and a 
                benchmark rate or rates for all loans;
                  (C) the term in months of any prepayment 
                penalty or other fee or charge payable on 
                repayment of some portion of principal or the 
                entire principal in advance of scheduled 
                payments; and
                  (D) such other information as the Bureau may 
                require; and
          (6) the number and dollar amount of mortgage loans 
        and completed applications grouped according to 
        measurements of--
                  (A) the value of the real property pledged or 
                proposed to be pledged as collateral;
                  (B) the actual or proposed term in months of 
                any introductory period after which the rate of 
                interest may change;
                  (C) the presence of contractual terms or 
                proposed contractual terms that would allow the 
                mortgagor or applicant to make payments other 
                than fully amortizing payments during any 
                portion of the loan term;
                  (D) the actual or proposed term in months of 
                the mortgage loan;
                  (E) the channel through which application was 
                made, including retail, broker, and other 
                relevant categories;
                  (F) as the Bureau may determine to be 
                appropriate, a unique identifier that 
                identifies the loan originator as set forth in 
                section 1503 of the S.A.F.E. Mortgage Licensing 
                Act of 2008;
                  (G) as the Bureau may determine to be 
                appropriate, a universal loan identifier;
                  (H) as the Bureau may determine to be 
                appropriate, the parcel number that corresponds 
                to the real property pledged or proposed to be 
                pledged as collateral;
                  (I) the credit score of mortgage applicants 
                and mortgagors, in such form as the Bureau may 
                prescribe; and
                  (J) such other information as the Bureau may 
                require.
  (c) Any information required to be compiled and made 
available under this section, other than loan application 
register information under subsection (j), shall be maintained 
and made available for a period of five years after the close 
of the first year during which such information is required to 
be maintained and made available.
  (d) Notwithstanding the provisions of subsection (a)(1), data 
required to be disclosed under this section for 1980 and 
thereafter shall be disclosed for each calendar year. Any 
depository institution which is required to make disclosures 
under this section but which has been making disclosures on 
some basis other than a calendar year basis shall make 
available a separate disclosure statement containing data for 
any period prior to calendar year 1980 which is not covered by 
the last full year report prior to the 1980 calendar year 
report.
  (e) Subject to subsection (h), the Bureau shall prescribe a 
standard format for the disclosures required under this 
section.
  (f) The Federal Financial Institutions Examination Council, 
in consultation with the Secretary, shall implement a system to 
facilitate access to data required to be disclosed under this 
section. Such system shall include arrangements for a central 
depository of data in each primary metropolitan statistical 
area, metropolitan statistical area, or consolidated 
metropolitan statistical area that is not comprised of 
designated primary metropolitan statistical areas. Disclosure 
statements shall be made available to the public for inspection 
and copying at such central depository of data for all 
depository institutions which are required to disclose 
information under this section (or which are exempted pursuant 
to section 306(b)) and which have a home office or branch 
office within such primary metropolitan statistical area, 
metropolitan statistical area, or consolidated metropolitan 
statistical area that is not comprised of designated primary 
metropolitan statistical areas.
  (g) The requirements of subsections (a) and (b) shall not 
apply with respect to mortgage loans that are--
          (1) made (or for which completed applications are 
        received) by any mortgage banking subsidiary of a bank 
        holding company or savings and loan holding company or 
        by any savings and loan service corporation that 
        originates or purchases mortgage loans; and
          (2) approved (or for which completed applications are 
        received) by the Secretary for insurance under title I 
        or II of the National Housing Act.
  (h) Submission to Agencies.--
          (1) In general.--The data required to be disclosed 
        under subsection (b) shall be submitted to the Bureau 
        or to the appropriate agency for the institution 
        reporting under this title, in accordance with rules 
        prescribed by the Bureau. Notwithstanding the 
        requirement of subsection (a)(2)(A) for disclosure by 
        census tract, the Bureau, in consultation with other 
        appropriate agencies described in paragraph (2) and, 
        after notice and comment, shall develop regulations 
        that--
                  (A) prescribe the format for such 
                disclosures, the method for submission of the 
                data to the appropriate agency, and the 
                procedures for disclosing the information to 
                the public;
                  (B) require the collection of data required 
                to be disclosed under subsection (b) with 
                respect to loans sold by each institution 
                reporting under this title;
                  (C) require disclosure of the class of the 
                purchaser of such loans;
                  (D) permit any reporting institution to 
                submit in writing to the Bureau or to the 
                appropriate agency such additional data or 
                explanations as it deems relevant to the 
                decision to originate or purchase mortgage 
                loans; and
                  (E) modify or require modification of 
                itemized information, for the purpose of 
                protecting the privacy interests of the 
                mortgage applicants or mortgagors, that is or 
                will be available to the public.
          (2) Other appropriate agencies.--The appropriate 
        agencies described in this paragraph are--
                  (A) the appropriate Federal banking agencies, 
                as defined in section 3(q) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1813(q)), with 
                respect to the entities that are subject to the 
                jurisdiction of each such agency, respectively;
                  (B) the Federal Deposit Insurance Corporation 
                for banks insured by the Federal Deposit 
                Insurance Corporation (other than members of 
                the Federal Reserve System), mutual savings 
                banks, insured State branches of foreign banks, 
                and any other depository institution described 
                in section 303(2)(A) which is not otherwise 
                referred to in this paragraph;
                  (C) the National Credit Union Administration 
                Board with respect to credit unions; and
                  (D) the Secretary of Housing and Urban 
                Development with respect to other lending 
                institutions not regulated by the agencies 
                referred to in subparagraph (A) or (B).
          (3) Rules for modifications under paragraph (1).--
                  (A) Application.--A modification under 
                paragraph (1)(E) shall apply to information 
                concerning--
                          (i) credit score data described in 
                        subsection (b)(6)(I), in a manner that 
                        is consistent with the purpose 
                        described in paragraph (1)(E); and
                          (ii) age or any other category of 
                        data described in paragraph (5) or (6) 
                        of subsection (b), as the Bureau 
                        determines to be necessary to satisfy 
                        the purpose described in paragraph 
                        (1)(E), and in a manner consistent with 
                        that purpose.
                  (B) Standards.--The Bureau shall prescribe 
                standards for any modification under paragraph 
                (1)(E) to effectuate the purposes of this 
                title, in light of the privacy interests of 
                mortgage applicants or mortgagors. Where 
                necessary to protect the privacy interests of 
                mortgage applicants or mortgagors, the Bureau 
                shall provide for the disclosure of information 
                described in subparagraph (A) in aggregate or 
                other reasonably modified form, in order to 
                effectuate the purposes of this title.
  (i) Exemptions.--
          (1) In general.--With respect to a depository 
        institution, the requirements of subsections (a) and 
        (b) shall not apply--
                  (A) with respect to closed-end mortgage 
                loans, if such depository institution 
                originated less than 100 closed-end mortgage 
                loans in each of the two preceding calendar 
                years; and
                  (B) with respect to open-end lines of credit, 
                if such depository institution originated less 
                than 200 open-end lines of credit in each of 
                the two preceding calendar years.
          [(i)] (2) Exemption from certain disclosure 
        requirements.--The requirements of subsections (b)(4), 
        (b)(5), and (b)(6) shall not apply with respect to any 
        depository institution described in section [303(2)(A)] 
        303(3)(A) which has total assets, as of the most recent 
        full fiscal year of such institution, of $30,000,000 or 
        less.
  (j) Loan Application Register Information.--
          (1) In general.--In addition to the information 
        required to be disclosed under subsections (a) and (b), 
        any depository institution which is required to make 
        disclosures under this section shall make available to 
        the public, upon request, loan application register 
        information (as defined by the Bureau by regulation) in 
        the form required under regulations prescribed by the 
        Board.
          (2) Format of disclosure.--
                  (A) Unedited format.--Subject to subparagraph 
                (B), the loan application register information 
                described in paragraph (1) may be disclosed by 
                a depository institution without editing or 
                compilation and in such formats as the Bureau 
                may require.
                  (B) Protection of applicant's privacy 
                interest.--The Bureau shall require, by 
                regulation, such deletions as the Bureau may 
                determine to be appropriate to protect--
                          (i) any privacy interest of any 
                        applicant, including the deletion of 
                        the applicant's name and identification 
                        number, the date of the application, 
                        and the date of any determination by 
                        the institution with respect to such 
                        application; and
                          (ii) a depository institution from 
                        liability under any Federal or State 
                        privacy law.
                  (C) Census tract format encouraged.--It is 
                the sense of the Congress that a depository 
                institution should provide loan register 
                information under this section in a format 
                based on the census tract in which the property 
                is located.
          (3) Change of form not required.--A depository 
        institution meets the disclosure requirement of 
        paragraph (1) if the institution provides the 
        information required under such paragraph in such 
        formats as the Bureau may require
          (4) Reasonable charge for information.--Any 
        depository institution which provides information under 
        this subsection may impose a reasonable fee for any 
        cost incurred in reproducing such information.
          (5) Time of disclosure.--The disclosure of the loan 
        application register information described in paragraph 
        (1) for any year pursuant to a request under paragraph 
        (1) shall be made--
                  (A) in the case of a request made on or 
                before March 1 of the succeeding year, before 
                April 1 of the succeeding year; and
                  (B) in the case of a request made after March 
                1 of the succeeding year, before the end of the 
                30-day period beginning on the date the request 
                is made.
          (6) Retention of information.--Notwithstanding 
        subsection (c), the loan application register 
        information described in paragraph (1) for any year 
        shall be maintained and made available, upon request, 
        for 3 years after the close of the 1st year during 
        which such information is required to be maintained and 
        made available.
          (7) Minimizing compliance costs.--In prescribing 
        regulations under this subsection, the Bureau shall 
        make every effort to minimize the costs incurred by a 
        depository institution in complying with this 
        subsection and such regulations.
  (k) Disclosure of Statements by Depository Institutions.--
          (1) In general.--In accordance with procedures 
        established by the Bureau pursuant to this section, any 
        depository institution required to make disclosures 
        under this section--
                  (A) shall make a disclosure statement 
                available, upon request, to the public no later 
                than 3 business days after the institution 
                receives the statement from the Federal 
                Financial Institutions Examination Council; and
                  (B) may make such statement available on a 
                floppy disc which may be used with a personal 
                computer or in any other media which is not 
                prohibited under regulations prescribed by the 
                Board.
          (2) Notice that data is subject to correction after 
        final review.--Any disclosure statement provided 
        pursuant to paragraph (1) shall be accompanied by a 
        clear and conspicuous notice that the statement is 
        subject to final review and revision, if necessary.
          (3) Reasonable charge for information.--Any 
        depository institution which provides a disclosure 
        statement pursuant to paragraph (1) may impose a 
        reasonable fee for any cost incurred in providing or 
        reproducing such statement.
  (l) Prompt Disclosures.--
          (1) In general.--Any disclosure of information 
        pursuant to this section or section 310 shall be made 
        as promptly as possible.
          (2) Maximum disclosure period.--
                  (A)  6- and 9-month maximum periods.--Except 
                as provided in subsections (j)(5) and (k)(1) 
                and regulations prescribed by the Bureau and 
                subject to subparagraph (B), any information 
                required to be disclosed for any year beginning 
                after December 31, 1992, under--
                          (i) this section shall be made 
                        available to the public before 
                        September 1 of the succeeding year; and
                          (ii) section 310 shall be made 
                        available to the public before December 
                        1 of the succeeding year.
                  (B) Shorter periods encouraged after 1994.--
                With respect to disclosures of information 
                under this section or section 310 for any year 
                beginning after December 31, 1993, every effort 
                shall be made--
                          (i) to make information disclosed 
                        under this section available to the 
                        public before July 1 of the succeeding 
                        year; and
                          (ii) to make information required to 
                        be disclosed under section 310 
                        available to the public before 
                        September 1 of the succeeding year.
          (3) Improved procedure.--The Federal Financial 
        Institutions Examination Council shall make such 
        changes in the system established pursuant to 
        subsection (f) as may be necessary to carry out the 
        requirements of this subsection.
  (m) Opportunity To Reduce Compliance Burden.--
          (1) In general.--
                  (A) Satisfaction of public availability 
                requirements.--A depository institution shall 
                be deemed to have satisfied the public 
                availability requirements of subsection (a) if 
                the institution compiles the information 
                required under that subsection at the home 
                office of the institution and provides notice 
                at the branch locations specified in subsection 
                (a) that such information is available from the 
                home office of the institution upon written 
                request.
                  (B) Provision of information upon request.--
                Not later than 15 days after the receipt of a 
                written request for any information required to 
                be compiled under subsection (a), the home 
                office of the depository institution receiving 
                the request shall provide the information 
                pertinent to the location of the branch in 
                question to the person requesting the 
                information.
          (2) Form of information.--In complying with paragraph 
        (1), a depository institution shall provide the person 
        requesting the information with a copy of the 
        information requested in such formats as the Bureau may 
        require.
  (n) Timing of Certain Disclosures.--The data required to be 
disclosed under subsection (b) shall be submitted to the Bureau 
or to the appropriate agency for any institution reporting 
under this title, in accordance with regulations prescribed by 
the Bureau. Institutions shall not be required to report new 
data under paragraph (5) or (6) of subsection (b) before the 
first January 1 that occurs after the end of the 9-month period 
beginning on the date on which regulations are issued by the 
Bureau in final form with respect to such disclosures.

                              enforcement

  Sec. 305. (a) The Bureau shall prescribe such regulations as 
may be necessary to carry out the purposes of this title. These 
regulations may contain such classifications, differentiations, 
or other provisions, and may provide for such adjustments and 
exceptions for any class of transactions, as in the judgment of 
the Bureau are necessary and proper to effectuate the purposes 
of this title, and prevent circumvention or evasion thereof, or 
to facilitate compliance therewith.
  (b) Powers of Certain Other Agencies.--
          (1) In general.--Subject to subtitle B of the 
        Consumer Financial Protection Act of 2010, compliance 
        with the requirements of this title shall be enforced--
                  (A) under section 8 of the Federal Deposit 
                Insurance Act, the appropriate Federal banking 
                agency, as defined in section 3(q) of the 
                Federal Deposit Insurance Act (12 U.S.C. 
                1813(q)), with respect to--
                          (i) any national bank or Federal 
                        savings association, and any Federal 
                        branch or Federal agency of a foreign 
                        bank;
                          (ii) any member bank of the Federal 
                        Reserve System (other than a national 
                        bank), branch or agency of a foreign 
                        bank (other than a Federal branch, 
                        Federal agency, and insured State 
                        branch of a foreign bank), commercial 
                        lending company owned or controlled by 
                        a foreign bank, and any organization 
                        operating under section 25 or 25A of 
                        the Federal Reserve Act; and
                          (iii) any bank or State savings 
                        association insured by the Federal 
                        Deposit Insurance Corporation (other 
                        than a member of the Federal Reserve 
                        System), any mutual savings bank as, 
                        defined in section 3(f) of the Federal 
                        Deposit Insurance Act (12 U.S.C. 
                        1813(f)), any insured State branch of a 
                        foreign bank, and any other depository 
                        institution not referred to in this 
                        paragraph or subparagraph (B) or (C);
                  (B) under subtitle E of the Consumer 
                Financial Protection Act of 2010, by the 
                Bureau, with respect to any person subject to 
                this subtitle;
                  (C) under the Federal Credit Union Act, by 
                the Administrator of the National Credit Union 
                Administration with respect to any insured 
                credit union; and
                  (D) with respect to other lending 
                institutions, by the Secretary of Housing and 
                Urban Development.
          (2) Incorporated definitions.--The terms used in 
        paragraph (1) that are not defined in this title or 
        otherwise defined in section 3(s) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(s)) shall have 
        the same meanings as in section 1(b) of the 
        International Banking Act of 1978 (12 U.S.C. 3101).
  (c) For the purpose of the exercise by any agency referred to 
in subsection (b) of its powers under any Act referred to in 
that subsection, a violation of any requirement imposed under 
this title shall be deemed to be a violation of a requirement 
imposed under that Act. In addition to its powers under any 
provision of law specifically referred to in subsection (b), 
each of the agencies referred to in that subsection may 
exercise, for the purpose of enforcing compliance with any 
requirement imposed under this title, any other authority 
conferred on it by law.
  (d) Overall Enforcement Authority of the Bureau of Consumer 
Financial Protection.--Subject to subtitle B of the Consumer 
Financial Protection Act of 2010, enforcement of the 
requirements imposed under this title is committed to each of 
the agencies under subsection (b). To facilitate research, 
examinations, and enforcement, all data collected pursuant to 
section 304 shall be available to the entities listed under 
subsection (b). The Bureau may exercise its authorities under 
the Consumer Financial Protection Act of 2010 to exercise 
principal authority to [examine and] enforce compliance by any 
person with the requirements of this title.

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HOME OWNERS' LOAN ACT

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SEC. 4. SUPERVISION OF SAVINGS ASSOCIATIONS.

  (a) Savings Associations.--
          (1) Examination and safe and sound operation.--
                  (A) Federal savings associations.--The 
                Comptroller shall provide for the examination 
                and safe and sound operation of Federal savings 
                associations.
                  (B) State savings associations.--The 
                Corporation shall provide for the examination 
                and safe and sound operation of State savings 
                associations.
          (2) Regulations for savings associations.--The 
        Comptroller may prescribe regulations with respect to 
        savings associations, as the Comptroller determines to 
        be appropriate to carry out the purposes of this Act.
          (3) Safe and sound housing credit to be encouraged.--
        The Comptroller and the Corporation shall exercise all 
        powers granted to the Comptroller and the Corporation 
        under this Act so as to encourage savings associations 
        to provide credit for housing safely and soundly.
  (b) Accounting and Disclosure.--
          (1) In general.--The Comptroller shall, by 
        regulation, prescribe uniform accounting and disclosure 
        standards for savings associations, to be used in 
        determining savings associations' compliance with all 
        applicable regulations.
          (2) Specific requirements for accounting standards.--
        Subject to section 5(t), the uniform accounting 
        standards prescribed under paragraph (1) shall--
                  (A) incorporate generally accepted accounting 
                principles to the same degree that such 
                principles are used to determine compliance 
                with regulations prescribed by the Federal 
                banking agencies; and
                  (B) allow for no deviation from full 
                compliance with such standards as are in effect 
                after December 31, 1993.
          (3) Authority to prescribe more stringent accounting 
        standards.--The Comptroller may at any time prescribe 
        accounting standards more stringent than required under 
        paragraph (2) if the Comptroller determines that the 
        more stringent standards are necessary to ensure the 
        safe and sound operation of savings associations.
  (c) Stringency of Standards.--The regulations of the 
Comptroller and the policies of the Comptroller and the 
Corporation governing the safe and sound operation of savings 
associations, including regulations and policies governing 
asset classification and appraisals, shall be no less stringent 
than those established by the Comptroller for national banks.
  (d) Investment of Certain Funds in Accounts of Savings 
Associations.--The savings accounts and share accounts of 
savings associations insured by the Corporation shall be lawful 
investments and may be accepted as security for all public 
funds of the United States, fiduciary and trust funds under the 
authority or control of the United States or any officer 
thereof, and for the funds of all corporations organized under 
the laws of the United States (subject to any regulatory 
authority otherwise applicable), regardless of any limitation 
of law upon the investment of any such funds or upon the 
acceptance of security for the investment or deposit of any of 
such funds.
  (e) Participation by Savings Associations in Lotteries and 
Related Activities.--
          (1) Participation prohibited.--No savings association 
        may--
                  (A) deal in lottery tickets;
                  (B) deal in bets used as a means or 
                substitute for participation in a lottery;
                  (C) announce, advertise, or publicize the 
                existence of any lottery; or
                  (D) announce, advertise, or publicize the 
                existence or identity of any participant or 
                winner, as such, in a lottery.
          (2) Use of facilities prohibited.--No savings 
        association may permit--
                  (A) the use of any part of any of its own 
                offices by any person for any purpose forbidden 
                to the institution under paragraph (1); or
                  (B) direct access by the public from any of 
                its own offices to any premises used by any 
                person for any purpose forbidden to the 
                institution under paragraph (1).
          (3) Definitions.--For purposes of this subsection--
                  (A) Deal in.--The term ``deal in'' includes 
                making, taking, buying, selling, redeeming, or 
                collecting.
                  (B) Lottery.--The term ``lottery'' includes 
                any arrangement, other than a savings promotion 
                raffle, under which--
                          (i) 3 or more persons (hereafter in 
                        this subparagraph referred to as the 
                        ``participants'') advance money or 
                        credit to another in exchange for the 
                        possibility or expectation that 1 or 
                        more but not all of the participants 
                        (hereafter in this paragraph referred 
                        to as the ``winners'') will receive by 
                        reason of those participants' advances 
                        more than the amounts those 
                        participants have advanced; and
                          (ii) the identity of the winners is 
                        determined by any means which 
                        includes--
                                  (I) a random selection;
                                  (II) a game, race, or 
                                contest; or
                                  (III) any record or 
                                tabulation of the result of 1 
                                or more events in which any 
                                participant has no interest 
                                except for the bearing that 
                                event has on the possibility 
                                that the participant may become 
                                a winner.
                  (C) Lottery ticket.--The term ``lottery 
                ticket'' includes any right, privilege, or 
                possibility (and any ticket, receipt, record, 
                or other evidence of any such right, privilege, 
                or possibility) of becoming a winner in a 
                lottery.
                  (D) Savings promotion raffle.--The term 
                ``savings promotion raffle'' means a contest in 
                which the sole consideration required for a 
                chance of winning designated prizes is obtained 
                by the deposit of a specified amount of money 
                in a savings account or other savings program, 
                where each ticket or entry has an equal chance 
                of being drawn, such contest being subject to 
                regulations that may from time to time be 
                promulgated by the appropriate prudential 
                regulator (as defined in section 1002 of the 
                Consumer Financial Protection Act of 2010 (12 
                U.S.C. 5481)).
          (4) Exception for state lotteries.--Paragraphs (1) 
        and (2) shall not apply with respect to any savings 
        association accepting funds from, or performing any 
        lawful services for, any State operating a lottery, or 
        any officer or employee of such a State who is charged 
        with administering the lottery.
          (5) Regulations.--The Comptroller shall prescribe 
        such regulations as may be necessary to provide for 
        enforcement of this subsection and to prevent any 
        evasion of any provision of this subsection.
  (f) Federally Related Mortgage Loan Disclosures.--A savings 
association may not make a federally related mortgage loan to 
an agent, trustee, nominee, or other person acting in a 
fiduciary capacity without requiring that the identity of the 
person receiving the beneficial interest of such loan shall at 
all times be revealed to the savings association. At the 
request of the appropriate Federal banking agency, the savings 
association shall report to the appropriate Federal banking 
agency the identity of such person and the nature and amount of 
the loan.
  (g) Preemption of State Usury Laws.--(1) Notwithstanding any 
State law, a savings association may charge interest on any 
extension of credit at a rate of not more than 1 percent in 
excess of the discount rate on 90-day commercial paper in 
effect at the Federal Reserve bank in the Federal Reserve 
district in which such savings association is located or at the 
rate allowed by the laws of the State in which such savings 
association is located, whichever is greater. A loan that is 
valid when made as to its maximum rate of interest in 
accordance with this subsection shall remain valid with respect 
to such rate regardless of whether the loan is subsequently 
sold, assigned, or otherwise transferred to a third party, and 
may be enforced by such third party notwithstanding any State 
law to the contrary.
  (2) If the rate prescribed in paragraph (1) exceeds the rate 
such savings association would be permitted to charge in the 
absence of this subsection, the receiving or charging a greater 
rate of interest than that prescribed by paragraph (1), when 
knowingly done, shall be deemed a forfeiture of the entire 
interest which the extension of credit carries with it, or 
which has been agreed to be paid thereon. If such greater rate 
of interest has been paid, the person who paid it may recover, 
in a civil action commenced in a court of appropriate 
jurisdiction not later than 2 years after the date of such 
payment, an amount equal to twice the amount of the interest 
paid from the savings association taking or receiving such 
interest.
  (h) Form and Maturity of Securities.--No savings association 
shall--
          (1) issue securities which guarantee a definite 
        maturity except with the specific approval of the 
        appropriate Federal banking agency, or
          (2) issue any securities the form of which has not 
        been approved by the appropriate Federal banking 
        agency.

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CONSUMER FINANCIAL PROTECTION ACT OF 2010

           *       *       *       *       *       *       *

TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

           *       *       *       *       *       *       *

SEC. 1002. DEFINITIONS.

  Except as otherwise provided in this title, for purposes of 
this title, the following definitions shall apply:
          (1) Affiliate.--The term ``affiliate'' means any 
        person that controls, is controlled by, or is under 
        common control with another person.
          (2) Bureau.--The term ``Bureau'' means the Bureau of 
        Consumer Financial Protection.
          (3) Business of insurance.--The term ``business of 
        insurance'' means the writing of insurance or the 
        reinsuring of risks by an insurer, including all acts 
        necessary to such writing or reinsuring and the 
        activities relating to the writing of insurance or the 
        reinsuring of risks conducted by persons who act as, or 
        are, officers, directors, agents, or employees of 
        insurers or who are other persons authorized to act on 
        behalf of such persons.
          (4) Consumer.--The term ``consumer'' means an 
        individual or an agent, trustee, or representative 
        acting on behalf of an individual.
          (5) Consumer financial product or service.--The term 
        ``consumer financial product or service'' means any 
        financial product or service that is described in one 
        or more categories under--
                  (A) paragraph (15) and is offered or provided 
                for use by consumers primarily for personal, 
                family, or household purposes; or
                  (B) clause (i), (iii), (ix), or (x) of 
                paragraph (15)(A), and is delivered, offered, 
                or provided in connection with a consumer 
                financial product or service referred to in 
                subparagraph (A).
          (6) Covered person.--The term ``covered person'' 
        means--
                  (A) any person that engages in offering or 
                providing a consumer financial product or 
                service; and
                  (B) any affiliate of a person described in 
                subparagraph (A) if such affiliate acts as a 
                service provider to such person.
          (7) Credit.--The term ``credit'' means the right 
        granted by a person to a consumer to defer payment of a 
        debt, incur debt and defer its payment, or purchase 
        property or services and defer payment for such 
        purchase.
          (8) Deposit-taking activity.--The term ``deposit-
        taking activity'' means--
                  (A) the acceptance of deposits, maintenance 
                of deposit accounts, or the provision of 
                services related to the acceptance of deposits 
                or the maintenance of deposit accounts;
                  (B) the acceptance of funds, the provision of 
                other services related to the acceptance of 
                funds, or the maintenance of member share 
                accounts by a credit union; or
                  (C) the receipt of funds or the equivalent 
                thereof, as the Bureau may determine by rule or 
                order, received or held by a covered person (or 
                an agent for a covered person) for the purpose 
                of facilitating a payment or transferring funds 
                or value of funds between a consumer and a 
                third party.
          (9) Designated transfer date.--The term ``designated 
        transfer date'' means the date established under 
        section 1062.
          (10) Director.--The term ``Director'' means the 
        Director of the Bureau.
          (11) Electronic conduit services.--The term 
        ``electronic conduit services''--
                  (A) means the provision, by a person, of 
                electronic data transmission, routing, 
                intermediate or transient storage, or 
                connections to a telecommunications system or 
                network; and
                  (B) does not include a person that provides 
                electronic conduit services if, when providing 
                such services, the person--
                          (i) selects or modifies the content 
                        of the electronic data;
                          (ii) transmits, routes, stores, or 
                        provides connections for electronic 
                        data, including financial data, in a 
                        manner that such financial data is 
                        differentiated from other types of data 
                        of the same form that such person 
                        transmits, routes, or stores, or with 
                        respect to which, provides connections; 
                        or
                          (iii) is a payee, payor, 
                        correspondent, or similar party to a 
                        payment transaction with a consumer.
          (12) Enumerated consumer laws.--Except as otherwise 
        specifically provided in section 1029, subtitle G or 
        subtitle H, the term ``enumerated consumer laws'' 
        means--
                  (A) the Alternative Mortgage Transaction 
                Parity Act of 1982 (12 U.S.C. 3801 et seq.);
                  (B) the Consumer Leasing Act of 1976 (15 
                U.S.C. 1667 et seq.);
                  (C) the Electronic Fund Transfer Act (15 
                U.S.C. 1693 et seq.), except with respect to 
                section 920 of that Act;
                  (D) the Equal Credit Opportunity Act (15 
                U.S.C. 1691 et seq.);
                  (E) the Fair Credit Billing Act (15 U.S.C. 
                1666 et seq.);
                  (F) the Fair Credit Reporting Act (15 U.S.C. 
                1681 et seq.), except with respect to sections 
                615(e) and 628 of that Act (15 U.S.C. 1681m(e), 
                1681w);
                  (G) the Home Owners Protection Act of 1998 
                (12 U.S.C. 4901 et seq.);
                  (H) the Fair Debt Collection Practices Act 
                (15 U.S.C. 1692 et seq.);
                  (I) subsections (b) through (f) of section 43 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1831t(c)-(f));
                  (J) sections 502 through 509 of the Gramm-
                Leach-Bliley Act (15 U.S.C. 6802-6809) except 
                for section 505 as it applies to section 
                501(b);
                  (K) the Home Mortgage Disclosure Act of 1975 
                (12 U.S.C. 2801 et seq.);
                  (L) the Home Ownership and Equity Protection 
                Act of 1994 (15 U.S.C. 1601 note);
                  (M) the Real Estate Settlement Procedures Act 
                of 1974 (12 U.S.C. 2601 et seq.);
                  (N) the S.A.F.E. Mortgage Licensing Act of 
                2008 (12 U.S.C. 5101 et seq.);
                  (O) the Truth in Lending Act (15 U.S.C. 1601 
                et seq.);
                  (P) the Truth in Savings Act (12 U.S.C. 4301 
                et seq.);
                  (Q) section 626 of the Omnibus Appropriations 
                Act, 2009 (Public Law 111-8); and
                  (R) the Interstate Land Sales Full Disclosure 
                Act (15 U.S.C. 1701).
          (13) Fair lending.--The term ``fair lending'' means 
        fair, equitable, and nondiscriminatory access to credit 
        for consumers.
          (14) Federal consumer financial law.--The term 
        ``Federal consumer financial law'' means the provisions 
        of this title, the enumerated consumer laws, the laws 
        for which authorities are transferred under subtitles F 
        and H, and any rule or order prescribed by the Bureau 
        under this title, an enumerated consumer law, or 
        pursuant to the authorities transferred under subtitles 
        F and H. The term does not include the Federal Trade 
        Commission Act.
          (15) Financial product or service.--
                  (A) In general.--The term ``financial product 
                or service'' means--
                          (i) extending credit and servicing 
                        loans, including acquiring, purchasing, 
                        selling, brokering, or other extensions 
                        of credit (other than solely extending 
                        commercial credit to a person who 
                        originates consumer credit 
                        transactions);
                          (ii) extending or brokering leases of 
                        personal or real property that are the 
                        functional equivalent of purchase 
                        finance arrangements, if--
                                  (I) the lease is on a non-
                                operating basis;
                                  (II) the initial term of the 
                                lease is at least 90 days; and
                                  (III) in the case of a lease 
                                involving real property, at the 
                                inception of the initial lease, 
                                the transaction is intended to 
                                result in ownership of the 
                                leased property to be 
                                transferred to the lessee, 
                                subject to standards prescribed 
                                by the Bureau;
                          (iii) providing real estate 
                        settlement services, except such 
                        services excluded under subparagraph 
                        (C), or performing appraisals of real 
                        estate or personal property;
                          (iv) engaging in deposit-taking 
                        activities, transmitting or exchanging 
                        funds, or otherwise acting as a 
                        custodian of funds or any financial 
                        instrument for use by or on behalf of a 
                        consumer;
                          (v) selling, providing, or issuing 
                        stored value or payment instruments, 
                        except that, in the case of a sale of, 
                        or transaction to reload, stored value, 
                        only if the seller exercises 
                        substantial control over the terms or 
                        conditions of the stored value provided 
                        to the consumer where, for purposes of 
                        this clause--
                                  (I) a seller shall not be 
                                found to exercise substantial 
                                control over the terms or 
                                conditions of the stored value 
                                if the seller is not a party to 
                                the contract with the consumer 
                                for the stored value product, 
                                and another person is 
                                principally responsible for 
                                establishing the terms or 
                                conditions of the stored value; 
                                and
                                  (II) advertising the 
                                nonfinancial goods or services 
                                of the seller on the stored 
                                value card or device is not in 
                                itself an exercise of 
                                substantial control over the 
                                terms or conditions;
                          (vi) providing check cashing, check 
                        collection, or check guaranty services;
                          (vii) providing payments or other 
                        financial data processing products or 
                        services to a consumer by any 
                        technological means, including 
                        processing or storing financial or 
                        banking data for any payment 
                        instrument, or through any payments 
                        systems or network used for processing 
                        payments data, including payments made 
                        through an online banking system or 
                        mobile telecommunications network, 
                        except that a person shall not be 
                        deemed to be a covered person with 
                        respect to financial data processing 
                        solely because the person--
                                  (I) is a merchant, retailer, 
                                or seller of any nonfinancial 
                                good or service who engages in 
                                financial data processing by 
                                transmitting or storing 
                                payments data about a consumer 
                                exclusively for purpose of 
                                initiating payments 
                                instructions by the consumer to 
                                pay such person for the 
                                purchase of, or to complete a 
                                commercial transaction for, 
                                such nonfinancial good or 
                                service sold directly by such 
                                person to the consumer; or
                                  (II) provides access to a 
                                host server to a person for 
                                purposes of enabling that 
                                person to establish and 
                                maintain a website;
                          (viii) providing financial advisory 
                        services (other than services relating 
                        to securities provided by a person 
                        regulated by the Commission or a person 
                        regulated by a State securities 
                        Commission, but only to the extent that 
                        such person acts in a regulated 
                        capacity) to consumers on individual 
                        financial matters or relating to 
                        proprietary financial products or 
                        services (other than by publishing any 
                        bona fide newspaper, news magazine, or 
                        business or financial publication of 
                        general and regular circulation, 
                        including publishing market data, news, 
                        or data analytics or investment 
                        information or recommendations that are 
                        not tailored to the individual needs of 
                        a particular consumer), including--
                                  (I) providing credit 
                                counseling to any consumer; and
                                  (II) providing services to 
                                assist a consumer with debt 
                                management or debt settlement, 
                                modifying the terms of any 
                                extension of credit, or 
                                avoiding foreclosure;
                          (ix) collecting, analyzing, 
                        maintaining, or providing consumer 
                        report information or other account 
                        information, including information 
                        relating to the credit history of 
                        consumers, used or expected to be used 
                        in connection with any decision 
                        regarding the offering or provision of 
                        a consumer financial product or 
                        service, except to the extent that--
                                  (I) a person--
                                          (aa) collects, 
                                        analyzes, or maintains 
                                        information that 
                                        relates solely to the 
                                        transactions between a 
                                        consumer and such 
                                        person;
                                          (bb) provides the 
                                        information described 
                                        in item (aa) to an 
                                        affiliate of such 
                                        person; or
                                          (cc) provides 
                                        information that is 
                                        used or expected to be 
                                        used solely in any 
                                        decision regarding the 
                                        offering or provision 
                                        of a product or service 
                                        that is not a consumer 
                                        financial product or 
                                        service, including a 
                                        decision for 
                                        employment, government 
                                        licensing, or a 
                                        residential lease or 
                                        tenancy involving a 
                                        consumer; and
                                  (II) the information 
                                described in subclause (I)(aa) 
                                is not used by such person or 
                                affiliate in connection with 
                                any decision regarding the 
                                offering or provision of a 
                                consumer financial product or 
                                service to the consumer, other 
                                than credit described in 
                                section 1027(a)(2)(A);
                          (x) collecting debt related to any 
                        consumer financial product or service; 
                        and
                          (xi) such other financial product or 
                        service as may be defined by the 
                        Bureau, by regulation, for purposes of 
                        this title, if the Bureau finds that 
                        such financial product or service is--
                                  (I) entered into or conducted 
                                as a subterfuge or with a 
                                purpose to evade any Federal 
                                consumer financial law; or
                                  (II) permissible for a bank 
                                or for a financial holding 
                                company to offer or to provide 
                                under any provision of a 
                                Federal law or regulation 
                                applicable to a bank or a 
                                financial holding company, and 
                                has, or likely will have, a 
                                material impact on consumers.
                  (B) Rule of construction.--
                          (i) In general.--For purposes of 
                        subparagraph (A)(xi)(II), and subject 
                        to clause (ii) of this subparagraph, 
                        the following activities provided to a 
                        covered person shall not, for purposes 
                        of this title, be considered incidental 
                        or complementary to a financial 
                        activity permissible for a financial 
                        holding company to engage in under any 
                        provision of a Federal law or 
                        regulation applicable to a financial 
                        holding company:
                                  (I) Providing information 
                                products or services to a 
                                covered person for identity 
                                authentication.
                                  (II) Providing information 
                                products or services for fraud 
                                or identify theft detection, 
                                prevention, or investigation.
                                  (III) Providing document 
                                retrieval or delivery services.
                                  (IV) Providing public records 
                                information retrieval.
                                  (V) Providing information 
                                products or services for anti-
                                money laundering activities.
                          (ii) Limitation.--Nothing in clause 
                        (i) may be construed as modifying or 
                        limiting the authority of the Bureau to 
                        exercise any--
                                  (I) [examination or] 
                                enforcement powers authority 
                                under this title with respect 
                                to a covered person or service 
                                provider engaging in an 
                                activity described in 
                                subparagraph (A)(ix); or
                                  (II) powers authorized by 
                                this title to prescribe rules, 
                                issue orders, or take other 
                                actions under any enumerated 
                                consumer law or law for which 
                                the authorities are transferred 
                                under subtitle F or H.
                  (C) Exclusions.--The term ``financial product 
                or service'' does not include--
                          (i) the business of insurance; or
                          (ii) electronic conduit services.
          (16) Foreign exchange.--The term ``foreign exchange'' 
        means the exchange, for compensation, of currency of 
        the United States or of a foreign government for 
        currency of another government.
          (17) Insured credit union.--The term ``insured credit 
        union'' has the same meaning as in section 101 of the 
        Federal Credit Union Act (12 U.S.C. 1752).
          (18) Payment instrument.--The term ``payment 
        instrument'' means a check, draft, warrant, money 
        order, traveler's check, electronic instrument, or 
        other instrument, payment of funds, or monetary value 
        (other than currency).
          (19) Person.--The term ``person'' means an 
        individual, partnership, company, corporation, 
        association (incorporated or unincorporated), trust, 
        estate, cooperative organization, or other entity.
          (20) Person regulated by the commodity futures 
        trading commission.--The term ``person regulated by the 
        Commodity Futures Trading Commission'' means any person 
        that is registered, or required by statute or 
        regulation to be registered, with the Commodity Futures 
        Trading Commission, but only to the extent that the 
        activities of such person are subject to the 
        jurisdiction of the Commodity Futures Trading 
        Commission under the Commodity Exchange Act.
          (21) Person regulated by the commission.--The term 
        ``person regulated by the Commission'' means a person 
        who is--
                  (A) a broker or dealer that is required to be 
                registered under the Securities Exchange Act of 
                1934;
                  (B) an investment adviser that is registered 
                under the Investment Advisers Act of 1940;
                  (C) an investment company that is required to 
                be registered under the Investment Company Act 
                of 1940, and any company that has elected to be 
                regulated as a business development company 
                under that Act;
                  (D) a national securities exchange that is 
                required to be registered under the Securities 
                Exchange Act of 1934;
                  (E) a transfer agent that is required to be 
                registered under the Securities Exchange Act of 
                1934;
                  (F) a clearing corporation that is required 
                to be registered under the Securities Exchange 
                Act of 1934;
                  (G) any self-regulatory organization that is 
                required to be registered with the Commission;
                  (H) any nationally recognized statistical 
                rating organization that is required to be 
                registered with the Commission;
                  (I) any securities information processor that 
                is required to be registered with the 
                Commission;
                  (J) any municipal securities dealer that is 
                required to be registered with the Commission;
                  (K) any other person that is required to be 
                registered with the Commission under the 
                Securities Exchange Act of 1934; and
                  (L) any employee, agent, or contractor acting 
                on behalf of, registered with, or providing 
                services to, any person described in any of 
                subparagraphs (A) through (K), but only to the 
                extent that any person described in any of 
                subparagraphs (A) through (K), or the employee, 
                agent, or contractor of such person, acts in a 
                regulated capacity.
          (22) Person regulated by a state insurance 
        regulator.--The term ``person regulated by a State 
        insurance regulator'' means any person that is engaged 
        in the business of insurance and subject to regulation 
        by any State insurance regulator, but only to the 
        extent that such person acts in such capacity.
          (23) Person that performs income tax preparation 
        activities for consumers.--The term ``person that 
        performs income tax preparation activities for 
        consumers'' means--
                  (A) any tax return preparer (as defined in 
                section 7701(a)(36) of the Internal Revenue 
                Code of 1986), regardless of whether 
                compensated, but only to the extent that the 
                person acts in such capacity;
                  (B) any person regulated by the Secretary 
                under section 330 of title 31, United States 
                Code, but only to the extent that the person 
                acts in such capacity; and
                  (C) any authorized IRS e-file Providers (as 
                defined for purposes of section 7216 of the 
                Internal Revenue Code of 1986), but only to the 
                extent that the person acts in such capacity.
          (24) Prudential regulator.--The term ``prudential 
        regulator'' means--
                  (A) in the case of an insured depository 
                institution or depository institution holding 
                company (as defined in section 3 of the Federal 
                Deposit Insurance Act), or subsidiary of such 
                institution or company, the appropriate Federal 
                banking agency, as that term is defined in 
                section 3 of the Federal Deposit Insurance Act; 
                and
                  (B) in the case of an insured credit union, 
                the National Credit Union Administration.
          (25) Related person.--The term ``related person''--
                  (A) shall apply only with respect to a 
                covered person that is not a bank holding 
                company (as that term is defined in section 2 
                of the Bank Holding Company Act of 1956), 
                credit union, or depository institution;
                  (B) shall be deemed to mean a covered person 
                for all purposes of any provision of Federal 
                consumer financial law; and
                  (C) means--
                          (i) any director, officer, or 
                        employee charged with managerial 
                        responsibility for, or controlling 
                        shareholder of, or agent for, such 
                        covered person;
                          (ii) any shareholder, consultant, 
                        joint venture partner, or other person, 
                        as determined by the Bureau (by rule or 
                        on a case-by-case basis) who materially 
                        participates in the conduct of the 
                        affairs of such covered person; and
                          (iii) any independent contractor 
                        (including any attorney, appraiser, or 
                        accountant) who knowingly or recklessly 
                        participates in any--
                                  (I) violation of any 
                                provision of law or regulation; 
                                or
                                  (II) breach of a fiduciary 
                                duty.
          (26) Service provider.--
                  (A) In general.--The term ``service 
                provider'' means any person that provides a 
                material service to a covered person in 
                connection with the offering or provision by 
                such covered person of a consumer financial 
                product or service, including a person that--
                          (i) participates in designing, 
                        operating, or maintaining the consumer 
                        financial product or service; or
                          (ii) processes transactions relating 
                        to the consumer financial product or 
                        service (other than unknowingly or 
                        incidentally transmitting or processing 
                        financial data in a manner that such 
                        data is undifferentiated from other 
                        types of data of the same form as the 
                        person transmits or processes).
                  (B) Exceptions.--The term ``service 
                provider'' does not include a person solely by 
                virtue of such person offering or providing to 
                a covered person--
                          (i) a support service of a type 
                        provided to businesses generally or a 
                        similar ministerial service; or
                          (ii) time or space for an 
                        advertisement for a consumer financial 
                        product or service through print, 
                        newspaper, or electronic media.
                  (C) Rule of construction.--A person that is a 
                service provider shall be deemed to be a 
                covered person to the extent that such person 
                engages in the offering or provision of its own 
                consumer financial product or service.
          (27) State.--The term ``State'' means any State, 
        territory, or possession of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the Commonwealth of the Northern Mariana Islands, Guam, 
        American Samoa, or the United States Virgin Islands or 
        any federally recognized Indian tribe, as defined by 
        the Secretary of the Interior under section 104(a) of 
        the Federally Recognized Indian Tribe List Act of 1994 
        (25 U.S.C. 479a-1(a)).
          (28) Stored value.--
                  (A) In general.--The term ``stored value'' 
                means funds or monetary value represented in 
                any electronic format, whether or not specially 
                encrypted, and stored or capable of storage on 
                electronic media in such a way as to be 
                retrievable and transferred electronically, and 
                includes a prepaid debit card or product, or 
                any other similar product, regardless of 
                whether the amount of the funds or monetary 
                value may be increased or reloaded.
                  (B) Exclusion.--Notwithstanding subparagraph 
                (A), the term ``stored value'' does not include 
                a special purpose card or certificate, which 
                shall be defined for purposes of this paragraph 
                as funds or monetary value represented in any 
                electronic format, whether or not specially 
                encrypted, that is--
                          (i) issued by a merchant, retailer, 
                        or other seller of nonfinancial goods 
                        or services;
                          (ii) redeemable only for transactions 
                        with the merchant, retailer, or seller 
                        of nonfinancial goods or services or 
                        with an affiliate of such person, which 
                        affiliate itself is a merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services;
                          (iii) issued in a specified amount 
                        that, except in the case of a card or 
                        product used solely for telephone 
                        services, may not be increased or 
                        reloaded;
                          (iv) purchased on a prepaid basis in 
                        exchange for payment; and
                          (v) honored upon presentation to such 
                        merchant, retailer, or seller of 
                        nonfinancial goods or services or an 
                        affiliate of such person, which 
                        affiliate itself is a merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services, only for any 
                        nonfinancial goods or services.
          (29) Transmitting or exchanging funds.--The term 
        ``transmitting or exchanging funds'' means receiving 
        currency, monetary value, or payment instruments from a 
        consumer for the purpose of exchanging or transmitting 
        the same by any means, including transmission by wire, 
        facsimile, electronic transfer, courier, the Internet, 
        or through bill payment services or through other 
        businesses that facilitate third-party transfers within 
        the United States or to or from the United States.

Subtitle A--Bureau of Consumer Financial Protection

           *       *       *       *       *       *       *

SEC. 1013. ADMINISTRATION.

  (a) Personnel.--
          (1) Appointment.--
                  (A) In general.--The Director may fix the 
                number of, and appoint and direct, all 
                employees of the Bureau, in accordance with the 
                applicable provisions of title 5, United States 
                Code.
                  (B) Employees of the bureau.--The Director is 
                authorized to employ attorneys, [compliance 
                examiners, compliance supervision analysts,] 
                economists, statisticians, and other employees 
                as may be deemed necessary to conduct the 
                business of the Bureau. Unless otherwise 
                provided expressly by law, any individual 
                appointed under this section shall be an 
                employee as defined in section 2105 of title 5, 
                United States Code, and subject to the 
                provisions of such title and other laws 
                generally applicable to the employees of an 
                Executive agency.
                  (C) Waiver authority.--
                          (i) In general.--In making any 
                        appointment under subparagraph (A), the 
                        Director may waive the requirements of 
                        chapter 33 of title 5, United States 
                        Code, and the regulations implementing 
                        such chapter, to the extent necessary 
                        to appoint employees on terms and 
                        conditions that are consistent with 
                        those set forth in section 11(1) of the 
                        Federal Reserve Act (12 U.S.C. 248(1)), 
                        while providing for--
                                  (I) fair, credible, and 
                                transparent methods of 
                                establishing qualification 
                                requirements for, recruitment 
                                for, and appointments to 
                                positions;
                                  (II) fair and open 
                                competition and equitable 
                                treatment in the consideration 
                                and selection of individuals to 
                                positions;
                                  (III) fair, credible, and 
                                transparent methods of 
                                assigning, reassigning, 
                                detailing, transferring, and 
                                promoting employees.
                          (ii) Veterans preferences.--In 
                        implementing this subparagraph, the 
                        Director shall comply with the 
                        provisions of section 2302(b)(11), 
                        regarding veterans' preference 
                        requirements, in a manner consistent 
                        with that in which such provisions are 
                        applied under chapter 33 of title 5, 
                        United States Code. The authority under 
                        this subparagraph to waive the 
                        requirements of that chapter 33 shall 
                        expire 5 years after the date of 
                        enactment of this Act.
          (2) Compensation.--Notwithstanding any otherwise 
        applicable provision of title 5, United States Code, 
        concerning compensation, including the provisions of 
        chapter 51 and chapter 53, the following provisions 
        shall apply with respect to employees of the Bureau:
                  (A) The rates of basic pay for all employees 
                of the Bureau may be set and adjusted by the 
                Director.
                  (B) The Director shall at all times provide 
                compensation (including benefits) to each class 
                of employees that, at a minimum, are comparable 
                to the compensation and benefits then being 
                provided by the Board of Governors for the 
                corresponding class of employees.
                  (C) All such employees shall be compensated 
                (including benefits) on terms and conditions 
                that are consistent with the terms and 
                conditions set forth in section 11(l) of the 
                Federal Reserve Act (12 U.S.C. 248(l)).
          (3) Bureau participation in federal reserve system 
        retirement plan and federal reserve system thrift 
        plan.--
                  (A) Employee election.--Employees appointed 
                to the Bureau may elect to participate in 
                either--
                          (i) both the Federal Reserve System 
                        Retirement Plan and the Federal Reserve 
                        System Thrift Plan, under the same 
                        terms on which such participation is 
                        offered to employees of the Board of 
                        Governors who participate in such plans 
                        and under the terms and conditions 
                        specified under section 1064(i)(1)(C); 
                        or
                          (ii) the Civil Service Retirement 
                        System under chapter 83 of title 5, 
                        United States Code, or the Federal 
                        Employees Retirement System under 
                        chapter 84 of title 5, United States 
                        Code, if previously covered under one 
                        of those Federal employee retirement 
                        systems.
                  (B) Election period.--Bureau employees shall 
                make an election under this paragraph not later 
                than 1 year after the date of appointment by, 
                or transfer under subtitle F to, the Bureau. 
                Participation in, and benefit accruals under, 
                any other retirement plan established or 
                maintained by the Federal Government shall end 
                not later than the date on which participation 
                in, and benefit accruals under, the Federal 
                Reserve System Retirement Plan and Federal 
                Reserve System Thrift Plan begin.
                  (C) Employer contribution.--The Bureau shall 
                pay an employer contribution to the Federal 
                Reserve System Retirement Plan, in the amount 
                established as an employer contribution under 
                the Federal Employees Retirement System, as 
                established under chapter 84 of title 5, United 
                States Code, for each Bureau employee who 
                elects to participate in the Federal Reserve 
                System Retirement Plan. The Bureau shall pay an 
                employer contribution to the Federal Reserve 
                System Thrift Plan for each Bureau employee who 
                elects to participate in such plan, as required 
                under the terms of such plan.
                  (D) Controlled group status.--The Bureau is 
                the same employer as the Federal Reserve System 
                (as comprised of the Board of Governors and 
                each of the 12 Federal reserve banks prior to 
                the date of enactment of this Act) for purposes 
                of subsections (b), (c), (m), and (o) of 
                section 414 of the Internal Revenue Code of 
                1986, (26 U.S.C. 414).
          (4) Labor-management relations.--Chapter 71 of title 
        5, United States Code, shall apply to the Bureau and 
        the employees of the Bureau.
          (5) Agency ombudsman.--
                  (A) Establishment required.--Not later than 
                180 days after the designated transfer date, 
                the Bureau shall appoint an ombudsman.
                  (B) Duties of ombudsman.--The ombudsman 
                appointed in accordance with subparagraph (A) 
                shall--
                          (i) act as a liaison between the 
                        Bureau and any affected person with 
                        respect to any problem that such party 
                        may have in dealing with the Bureau, 
                        resulting from the regulatory 
                        activities of the Bureau; and
                          (ii) assure that safeguards exist to 
                        encourage complainants to come forward 
                        and preserve confidentiality.
  (b) Specific Functional Units.--
          (1) Research.--The Director shall establish a unit 
        whose functions shall include researching, analyzing, 
        and reporting on--
                  (A) developments in markets for consumer 
                financial products or services, including 
                market areas of alternative consumer financial 
                products or services with high growth rates and 
                areas of risk to consumers;
                  (B) access to fair and affordable credit for 
                traditionally underserved communities;
                  (C) consumer awareness, understanding, and 
                use of disclosures and communications regarding 
                consumer financial products or services;
                  (D) consumer awareness and understanding of 
                costs, risks, and benefits of consumer 
                financial products or services;
                  (E) consumer behavior with respect to 
                consumer financial products or services, 
                including performance on mortgage loans; and
                  (F) experiences of traditionally underserved 
                consumers, including un-banked and under-banked 
                consumers.
          (2) Community affairs.--The Director shall establish 
        a unit whose functions shall include providing 
        information, guidance, and technical assistance 
        regarding the offering and provision of consumer 
        financial products or services to traditionally 
        underserved consumers and communities.
          (3) Collecting and tracking complaints.--
                  (A) In general.--The Director shall establish 
                a unit whose functions shall include 
                establishing a single, toll-free telephone 
                number, a website, and a database or utilizing 
                an existing database to facilitate the 
                centralized collection of, monitoring of, and 
                response to consumer complaints regarding 
                consumer financial products or services. The 
                Director shall coordinate with the Federal 
                Trade Commission or other Federal agencies to 
                route complaints to such agencies, where 
                appropriate.
                  (B) Routing calls to states.--To the extent 
                practicable, State agencies may receive 
                appropriate complaints from the systems 
                established under subparagraph (A), if--
                          (i) the State agency system has the 
                        functional capacity to receive calls or 
                        electronic reports routed by the Bureau 
                        systems;
                          (ii) the State agency has satisfied 
                        any conditions of participation in the 
                        system that the Bureau may establish, 
                        including treatment of personally 
                        identifiable information and sharing of 
                        information on complaint resolution or 
                        related compliance procedures and 
                        resources; and
                          (iii) participation by the State 
                        agency includes measures necessary to 
                        provide for protection of personally 
                        identifiable information that conform 
                        to the standards for protection of the 
                        confidentiality of personally 
                        identifiable information and for data 
                        integrity and security that apply to 
                        the Federal agencies described in 
                        subparagraph (D).
                  (C) Reports to the congress.--The Director 
                shall present an annual report to Congress not 
                later than March 31 of each year on the 
                complaints received by the Bureau in the prior 
                year regarding consumer financial products and 
                services. Such report shall include information 
                and analysis about complaint numbers, complaint 
                types, and, where applicable, information about 
                resolution of complaints.
                  (D) Data sharing required.--To facilitate 
                preparation of the reports required under 
                subparagraph (C), supervision and enforcement 
                activities, and monitoring of the market for 
                consumer financial products and services, the 
                Bureau shall share consumer complaint 
                information with prudential regulators, the 
                Federal Trade Commission, other Federal 
                agencies, and State agencies, subject to the 
                standards applicable to Federal agencies for 
                protection of the confidentiality of personally 
                identifiable information and for data security 
                and integrity. The prudential regulators, the 
                Federal Trade Commission, and other Federal 
                agencies shall share data relating to consumer 
                complaints regarding consumer financial 
                products and services with the Bureau, subject 
                to the standards applicable to Federal agencies 
                for protection of confidentiality of personally 
                identifiable information and for data security 
                and integrity.
  (c) Office of Fair Lending and Equal Opportunity.--
          (1) Establishment.--The Director shall establish 
        within the Bureau the Office of Fair Lending and Equal 
        Opportunity.
          (2) Functions.--The Office of Fair Lending and Equal 
        Opportunity shall have such powers and duties as the 
        Director may delegate to the Office, including--
                  (A) providing oversight and enforcement of 
                Federal laws intended to ensure the fair, 
                equitable, and nondiscriminatory access to 
                credit for both individuals and communities 
                that are enforced by the Bureau, including the 
                Equal Credit Opportunity Act and the Home 
                Mortgage Disclosure Act;
                  (B) coordinating fair lending efforts of the 
                Bureau with other Federal agencies and State 
                regulators, as appropriate, to promote 
                consistent, efficient, and effective 
                enforcement of Federal fair lending laws;
                  (C) working with private industry, fair 
                lending, civil rights, consumer and community 
                advocates on the promotion of fair lending 
                compliance and education; and
                  (D) providing annual reports to Congress on 
                the efforts of the Bureau to fulfill its fair 
                lending mandate.
          (3) Administration of office.--There is established 
        the position of Assistant Director of the Bureau for 
        Fair Lending and Equal Opportunity, who--
                  (A) shall be appointed by the Director; and
                  (B) shall carry out such duties as the 
                Director may delegate to such Assistant 
                Director.
  (d) Office of Financial Education.--
          (1) Establishment.--The Director shall establish an 
        Office of Financial Education, which shall be 
        responsible for developing and implementing initiatives 
        intended to educate and empower consumers to make 
        better informed financial decisions.
          (2) Other duties.--The Office of Financial Education 
        shall develop and implement a strategy to improve the 
        financial literacy of consumers that includes 
        measurable goals and objectives, in consultation with 
        the Financial Literacy and Education Commission, 
        consistent with the National Strategy for Financial 
        Literacy, through activities including providing 
        opportunities for consumers to access--
                  (A) financial counseling, including 
                community-based financial counseling, where 
                practicable;
                  (B) information to assist with the evaluation 
                of credit products and the understanding of 
                credit histories and scores;
                  (C) savings, borrowing, and other services 
                found at mainstream financial institutions;
                  (D) activities intended to--
                          (i) prepare the consumer for 
                        educational expenses and the submission 
                        of financial aid applications, and 
                        other major purchases;
                          (ii) reduce debt; and
                          (iii) improve the financial situation 
                        of the consumer;
                  (E) assistance in developing long-term 
                savings strategies; and
                  (F) wealth building and financial services 
                during the preparation process to claim earned 
                income tax credits and Federal benefits.
          (3) Coordination.--The Office of Financial Education 
        shall coordinate with other units within the Bureau in 
        carrying out its functions, including--
                  (A) working with the Community Affairs Office 
                to implement the strategy to improve financial 
                literacy of consumers; and
                  (B) working with the research unit 
                established by the Director to conduct research 
                related to consumer financial education and 
                counseling.
          (4) Report.--Not later than 24 months after the 
        designated transfer date, and annually thereafter, the 
        Director shall submit a report on its financial 
        literacy activities and strategy to improve financial 
        literacy of consumers to--
                  (A) the Committee on Banking, Housing, and 
                Urban Affairs of the Senate; and
                  (B) the Committee on Financial Services of 
                the House of Representatives.
          (5) Membership in financial literacy and education 
        commission.--Section 513(c)(1) of the Financial 
        Literacy and Education Improvement Act (20 U.S.C. 
        9702(c)(1)) is amended--
                  (A) in subparagraph (B), by striking ``and'' 
                at the end;
                  (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                  (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                  ``(C) the Director of the Bureau of Consumer 
                Financial Protection; and''.
          (6) Conforming amendment.--Section 513(d) of the 
        Financial Literacy and Education Improvement Act (20 
        U.S.C. 9702(d)) is amended by adding at the end the 
        following: ``The Director of the Bureau of Consumer 
        Financial Protection shall serve as the Vice 
        Chairman.''.
          (7) Study and report on financial literacy program.--
                  (A) In general.--The Comptroller General of 
                the United States shall conduct a study to 
                identify--
                          (i) the feasibility of certification 
                        of persons providing the programs or 
                        performing the activities described in 
                        paragraph (2), including recognizing 
                        outstanding programs, and developing 
                        guidelines and resources for community-
                        based practitioners, including--
                                  (I) a potential certification 
                                process and standards for 
                                certification;
                                  (II) appropriate certifying 
                                entities;
                                  (III) resources required for 
                                funding such a process; and
                                  (IV) a cost-benefit analysis 
                                of such certification;
                          (ii) technological resources intended 
                        to collect, analyze, evaluate, or 
                        promote financial literacy and 
                        counseling programs;
                          (iii) effective methods, tools, and 
                        strategies intended to educate and 
                        empower consumers about personal 
                        finance management; and
                          (iv) recommendations intended to 
                        encourage the development of programs 
                        that effectively improve financial 
                        education outcomes and empower 
                        consumers to make better informed 
                        financial decisions based on findings.
                  (B) Report.--Not later than 1 year after the 
                date of enactment of this Act, the Comptroller 
                General of the United States shall submit a 
                report on the results of the study conducted 
                under this paragraph to the Committee on 
                Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services 
                of the House of Representatives.
  (e) Office of Service Member Affairs.--
          (1) In general.--The Director shall establish an 
        Office of Service Member Affairs, which shall be 
        responsible for developing and implementing initiatives 
        for service members and their families intended to--
                  (A) educate and empower service members and 
                their families to make better informed 
                decisions regarding consumer financial products 
                and services;
                  (B) coordinate with the unit of the Bureau 
                established under subsection (b)(3), in order 
                to monitor complaints by service members and 
                their families and responses to those 
                complaints by the Bureau or other appropriate 
                Federal or State agency; and
                  (C) coordinate efforts among Federal and 
                State agencies, as appropriate, regarding 
                consumer protection measures relating to 
                consumer financial products and services 
                offered to, or used by, service members and 
                their families.
          (2) Coordination.--
                  (A) Regional services.--The Director is 
                authorized to assign employees of the Bureau as 
                may be deemed necessary to conduct the business 
                of the Office of Service Member Affairs, 
                including by establishing and maintaining the 
                functions of the Office in regional offices of 
                the Bureau located near military bases, 
                military treatment facilities, or other similar 
                military facilities.
                  (B) Agreements.--The Director is authorized 
                to enter into memoranda of understanding and 
                similar agreements with the Department of 
                Defense, including any branch or agency as 
                authorized by the department, in order to carry 
                out the business of the Office of Service 
                Member Affairs.
          (3) Definition.--As used in this subsection, the term 
        ``service member'' means any member of the United 
        States Armed Forces and any member of the National 
        Guard or Reserves.
  (f) Timing.--The Office of Fair Lending and Equal 
Opportunity, the Office of Financial Education, and the Office 
of Service Member Affairs shall each be established not later 
than 1 year after the designated transfer date.
  (g) Office of Financial Protection for Older Americans.--
          (1) Establishment.--Before the end of the 180-day 
        period beginning on the designated transfer date, the 
        Director shall establish the Office of Financial 
        Protection for Older Americans, the functions of which 
        shall include activities designed to facilitate the 
        financial literacy of individuals who have attained the 
        age of 62 years or more (in this subsection, referred 
        to as ``seniors'') on protection from unfair, 
        deceptive, and abusive practices and on current and 
        future financial choices, including through the 
        dissemination of materials to seniors on such topics.
          (2) Assistant director.--The Office of Financial 
        Protection for Older Americans (in this subsection 
        referred to as the ``Office'') shall be headed by an 
        assistant director.
          (3) Duties.--The Office shall--
                  (A) develop goals for programs that provide 
                seniors financial literacy and counseling, 
                including programs that--
                          (i) help seniors recognize warning 
                        signs of unfair, deceptive, or abusive 
                        practices, protect themselves from such 
                        practices;
                          (ii) provide one-on-one financial 
                        counseling on issues including long-
                        term savings and later-life economic 
                        security; and
                          (iii) provide personal consumer 
                        credit advocacy to respond to consumer 
                        problems caused by unfair, deceptive, 
                        or abusive practices;
                  (B) monitor certifications or designations of 
                financial advisors who advise seniors and alert 
                the Commission and State regulators of 
                certifications or designations that are 
                identified as unfair, deceptive, or abusive;
                  (C) not later than 18 months after the date 
                of the establishment of the Office, submit to 
                Congress and the Commission any legislative and 
                regulatory recommendations on the best 
                practices for--
                          (i) disseminating information 
                        regarding the legitimacy of 
                        certifications of financial advisers 
                        who advise seniors;
                          (ii) methods in which a senior can 
                        identify the financial advisor most 
                        appropriate for the senior's needs; and
                          (iii) methods in which a senior can 
                        verify a financial advisor's 
                        credentials;
                  (D) conduct research to identify best 
                practices and effective methods, tools, 
                technology and strategies to educate and 
                counsel seniors about personal finance 
                management with a focus on--
                          (i) protecting themselves from 
                        unfair, deceptive, and abusive 
                        practices;
                          (ii) long-term savings; and
                          (iii) planning for retirement and 
                        long-term care;
                  (E) coordinate consumer protection efforts of 
                seniors with other Federal agencies and State 
                regulators, as appropriate, to promote 
                consistent, effective, and efficient 
                enforcement; and
                  (F) work with community organizations, non-
                profit organizations, and other entities that 
                are involved with educating or assisting 
                seniors (including the National Education and 
                Resource Center on Women and Retirement 
                Planning).
  (h) Application of FACA.--Notwithstanding any provision of 
the Federal Advisory Committee Act (5 U.S.C. App.), such Act 
shall apply to each advisory committee of the Bureau and each 
subcommittee of such an advisory committee.

           *       *       *       *       *       *       *

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] and orders with respect to covered 
        persons which are not credit unions or depository 
        institutions;
          (7) an assessment of significant actions by State 
        attorneys general or State regulators relating to 
        Federal consumer financial law;
          (8) an analysis of the efforts of the Bureau to 
        fulfill the fair lending mission of the Bureau; and
          (9) an analysis of the efforts of the Bureau to 
        increase workforce and contracting diversity consistent 
        with the procedures established by the Office of 
        Minority and Women Inclusion.

           *       *       *       *       *       *       *

SEC. 1017. [FUNDING; PENALTIES AND FINES.]  BUDGET, FINANCIAL 
                    MANAGEMENT, AND AUDIT._

  (a) Transfer of Funds From Board Of Governors.--
          [(1) In general.--Each year (or quarter of such 
        year), beginning on the designated transfer date, and 
        each quarter thereafter, the Board of Governors shall 
        transfer to the Bureau from the combined earnings of 
        the Federal Reserve System, the amount determined by 
        the Director to be reasonably necessary to carry out 
        the authorities of the Bureau under Federal consumer 
        financial law, taking into account such other sums made 
        available to the Bureau from the preceding year (or 
        quarter of such year).
          [(2) Funding cap.--
                  [(A) In general.--Notwithstanding paragraph 
                (1), and in accordance with this paragraph, the 
                amount that shall be transferred to the Bureau 
                in each fiscal year shall not exceed a fixed 
                percentage of the total operating expenses of 
                the Federal Reserve System, as reported in the 
                Annual Report, 2009, of the Board of Governors, 
                equal to--
                          [(i) 10 percent of such expenses in 
                        fiscal year 2011;
                          [(ii) 11 percent of such expenses in 
                        fiscal year 2012; and
                          [(iii) 12 percent of such expenses in 
                        fiscal year 2013, and in each year 
                        thereafter.
                  [(B) Adjustment of amount.--The dollar amount 
                referred to in subparagraph (A)(iii) shall be 
                adjusted annually, using the percent increase, 
                if any, in the employment cost index for total 
                compensation for State and local government 
                workers published by the Federal Government, or 
                the successor index thereto, for the 12-month 
                period ending on September 30 of the year 
                preceding the transfer.
                  [(C) Reviewability.--Notwithstanding any 
                other provision in this title, the funds 
                derived from the Federal Reserve System 
                pursuant to this subsection shall not be 
                subject to review by the Committees on 
                Appropriations of the House of Representatives 
                and the Senate.
          [(3) Transition period.--Beginning on the date of 
        enactment of this Act and until the designated transfer 
        date, the Board of Governors shall transfer to the 
        Bureau the amount estimated by the Secretary needed to 
        carry out the authorities granted to the Bureau under 
        Federal consumer financial law, from the date of 
        enactment of this Act until the designated transfer 
        date.]
          [(4)] (1) 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)] (2) 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)] (b) 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)] (c) 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.]
          (1) Authorization of appropriations.--There is 
        authorized to be appropriated to the Bureau for each of 
        fiscal years 2018 and 2019 an amount equal to the 
        aggregate amount of funds transferred by the Board of 
        Governors to the Bureau during fiscal year 2015.
          [(4)] (2) 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.

           *       *       *       *       *       *       *

                Subtitle B--General Powers of the Bureau

SEC. 1021. PURPOSE, OBJECTIVES, AND FUNCTIONS.

  (a) Purpose.--The Bureau shall seek to implement and, where 
applicable, enforce Federal consumer financial law consistently 
for the purpose of ensuring that all consumers have access to 
markets for consumer financial products and services and that 
markets for consumer financial products and services are fair, 
transparent, and competitive.
  (b) Objectives.--The Bureau is authorized to exercise its 
authorities under Federal consumer financial law for the 
purposes of ensuring that, with respect to consumer financial 
products and services--
          (1) consumers are provided with timely and 
        understandable information to make responsible 
        decisions about financial transactions;
          (2) consumers are protected [from unfair, deceptive, 
        or abusive acts and practices and] from discrimination;
          (3) outdated, unnecessary, or unduly burdensome 
        regulations are regularly identified and addressed in 
        order to reduce unwarranted regulatory burdens;
          (4) Federal consumer financial law is enforced 
        consistently, without regard to the status of a person 
        as a depository institution, in order to promote fair 
        competition; and
          (5) markets for consumer financial products and 
        services operate transparently and efficiently to 
        facilitate access and innovation.
  (c) Functions.--The primary functions of the Bureau are--
          (1) conducting financial education programs;
          (2) collecting, investigating, and responding to 
        consumer complaints;
          (3) collecting, researching, monitoring, and 
        publishing information relevant to the functioning of 
        markets for consumer financial products and services to 
        identify risks to consumers and the proper functioning 
        of such markets;
          (4) subject to sections 1024 through 1026, 
        supervising covered persons for compliance with Federal 
        consumer financial law, and taking appropriate 
        enforcement action to address violations of Federal 
        consumer financial law;
          (5) issuing rules, orders, and guidance implementing 
        Federal consumer financial law; and
          (6) performing such support activities as may be 
        necessary or useful to facilitate the other functions 
        of the Bureau.

           *       *       *       *       *       *       *

SEC. 1024. [SUPERVISION OF]  AUTHORITY WITH RESPECT TO CERTAIN 
                    NONDEPOSITORY COVERED PERSONS.

  (a) Scope of Coverage.--
          (1) Applicability.--Notwithstanding any other 
        provision of this title, and except as provided in 
        paragraph (3), this section shall apply to any covered 
        person who--
                  (A) offers or provides origination, 
                brokerage, or servicing of loans secured by 
                real estate for use by consumers primarily for 
                personal, family, or household purposes, or 
                loan modification or foreclosure relief 
                services in connection with such loans;
                  (B) is a larger participant of a market for 
                other consumer financial products or services, 
                [as defined by rule in accordance with 
                paragraph (2)] as of the date of the enactment 
                of the Financial CHOICE Act of 2017;
                  (C) the Bureau has reasonable cause to 
                determine, by order, after notice to the 
                covered person and a reasonable opportunity for 
                such covered person to respond, based on 
                complaints collected through the system under 
                section 1013(b)(3) or information from other 
                sources, that such covered person is engaging, 
                or has engaged, in conduct that poses risks to 
                consumers with regard to the offering or 
                provision of consumer financial products or 
                services; or
                  (D) offers or provides to a consumer any 
                private education loan, as defined in section 
                140 of the Truth in Lending Act (15 U.S.C. 
                1650), notwithstanding section 1027(a)(2)(A) 
                and subject to section 1027(a)(2)(C)[; or].
                  [(E) offers or provides to a consumer a 
                payday loan.]
          [(2) Rulemaking to define covered persons subject to 
        this section.--The Bureau shall consult with the 
        Federal Trade Commission prior to issuing a rule, in 
        accordance with paragraph (1)(B), to define covered 
        persons subject to this section. The Bureau shall issue 
        its initial rule not later than 1 year after the 
        designated transfer date.]
          [(3)] (2) Rules of construction.--
                  (A) Certain persons excluded.--This section 
                shall not apply to persons described in section 
                [1025(a) or] 1026(a).
                  (B) Activity levels.--For purposes of 
                computing activity levels under paragraph (1) 
                or rules issued thereunder, activities of 
                affiliated companies (other than insured 
                depository institutions or insured credit 
                unions) shall be aggregated.
  [(b) Supervision.--
          [(1) In general.--The Bureau shall require reports 
        and conduct examinations on a periodic basis of persons 
        described in subsection (a)(1) for purposes of--
                  [(A) assessing compliance with the 
                requirements of Federal consumer financial law;
                  [(B) obtaining information about the 
                activities and compliance systems or procedures 
                of such person; and
                  [(C) detecting and assessing risks to 
                consumers and to markets for consumer financial 
                products and services.
          [(2) Risk-based supervision program.--The Bureau 
        shall exercise its authority under paragraph (1) in a 
        manner designed to ensure that such exercise, with 
        respect to persons described in subsection (a)(1), is 
        based on the assessment by the Bureau of the risks 
        posed to consumers in the relevant product markets and 
        geographic markets, and taking into consideration, as 
        applicable--
                  [(A) the asset size of the covered person;
                  [(B) the volume of transactions involving 
                consumer financial products or services in 
                which the covered person engages;
                  [(C) the risks to consumers created by the 
                provision of such consumer financial products 
                or services;
                  [(D) the extent to which such institutions 
                are subject to oversight by State authorities 
                for consumer protection; and
                  [(E) any other factors that the Bureau 
                determines to be relevant to a class of covered 
                persons.
          [(3) Coordination.--To minimize regulatory burden, 
        the Bureau shall coordinate its supervisory activities 
        with the supervisory activities conducted by prudential 
        regulators, the State bank regulatory authorities, and 
        the State agencies that licence, supervise, or examine 
        the offering of consumer financial products or 
        services, including establishing their respective 
        schedules for examining persons described in subsection 
        (a)(1) and requirements regarding reports to be 
        submitted by such persons. The sharing of information 
        with such regulators, authorities, and agencies shall 
        not be construed as waiving, destroying, or otherwise 
        affecting any privilege or confidentiality such person 
        may claim with respect to such information under 
        Federal or State law as to any person or entity other 
        than such Bureau, agency, supervisor, or authority.
          [(4) Use of existing reports.--The Bureau shall, to 
        the fullest extent possible, use--
                  [(A) reports pertaining to persons described 
                in subsection (a)(1) that have been provided or 
                required to have been provided to a Federal or 
                State agency; and
                  [(B) information that has been reported 
                publicly.
          [(5) Preservation of authority.--Nothing in this 
        title may be construed as limiting the authority of the 
        Director to require reports from persons described in 
        subsection (a)(1), as permitted under paragraph (1), 
        regarding information owned or under the control of 
        such person, regardless of whether such information is 
        maintained, stored, or processed by another person.
          [(6) Reports of tax law noncompliance.--The Bureau 
        shall provide the Commissioner of Internal Revenue with 
        any report of examination or related information 
        identifying possible tax law noncompliance.
          [(7) Registration, recordkeeping and other 
        requirements for certain persons.--
                  [(A) In general.--The Bureau shall prescribe 
                rules to facilitate supervision of persons 
                described in subsection (a)(1) and assessment 
                and detection of risks to consumers.
                  [(B) Recordkeeping.--The Bureau may require a 
                person described in subsection (a)(1), to 
                generate, provide, or retain records for the 
                purposes of facilitating supervision of such 
                persons and assessing and detecting risks to 
                consumers.
                  [(C) Requirements concerning obligations.--
                The Bureau may prescribe rules regarding a 
                person described in subsection (a)(1), to 
                ensure that such persons are legitimate 
                entities and are able to perform their 
                obligations to consumers. Such requirements may 
                include background checks for principals, 
                officers, directors, or key personnel and 
                bonding or other appropriate financial 
                requirements.
                  [(D) Consultation with state agencies.--In 
                developing and implementing requirements under 
                this paragraph, the Bureau shall consult with 
                State agencies regarding requirements or 
                systems (including coordinated or combined 
                systems for registration), where appropriate.]
  [(c)] (b) Enforcement Authority.--
          (1) The bureau to have enforcement authority.--Except 
        as provided in paragraph (3) and section 1061, with 
        respect to any person described in subsection (a)(1), 
        to the extent that Federal law authorizes the Bureau 
        and another Federal agency to enforce Federal consumer 
        financial law, the Bureau shall have exclusive 
        authority to enforce that Federal consumer financial 
        law.
          (2) Referral.--Any Federal agency authorized to 
        enforce a Federal consumer financial law described in 
        paragraph (1) may recommend in writing to the Bureau 
        that the Bureau initiate an enforcement proceeding, as 
        the Bureau is authorized by that Federal law or by this 
        title.
          (3) Coordination with the federal trade commission.--
                  (A) In general.--The Bureau and the Federal 
                Trade Commission shall negotiate an agreement 
                for coordinating with respect to enforcement 
                actions by each agency regarding the offering 
                or provision of consumer financial products or 
                services by any covered person that is 
                described in subsection (a)(1), or service 
                providers thereto. The agreement shall include 
                procedures for notice to the other agency, 
                where feasible, prior to initiating a civil 
                action to enforce any Federal law regarding the 
                offering or provision of consumer financial 
                products or services.
                  (B) Civil actions.--Whenever a civil action 
                has been filed by, or on behalf of, the Bureau 
                or the Federal Trade Commission for any 
                violation of any provision of Federal law 
                described in subparagraph (A), or any 
                regulation prescribed under such provision of 
                law--
                          (i) the other agency may not, during 
                        the pendency of that action, institute 
                        a civil action under such provision of 
                        law against any defendant named in the 
                        complaint in such pending action for 
                        any violation alleged in the complaint; 
                        and
                          (ii) the Bureau or the Federal Trade 
                        Commission may intervene as a party in 
                        any such action brought by the other 
                        agency, and, upon intervening--
                                  (I) be heard on all matters 
                                arising in such enforcement 
                                action; and
                                  (II) file petitions for 
                                appeal in such actions.
                  (C) Agreement terms.--The terms of any 
                agreement negotiated under subparagraph (A) may 
                modify or supersede the provisions of 
                subparagraph (B).
                  (D) Deadline.--The agencies shall reach the 
                agreement required under subparagraph (A) not 
                later than 6 months after the designated 
                transfer date.
  [(d)] (c) Exclusive Rulemaking [and Examination Authority].--
Notwithstanding any other provision of Federal law and except 
as provided in section 1061, to the extent that Federal law 
authorizes the Bureau and another Federal agency to issue 
regulations or guidance[, conduct examinations,] or require 
reports from a person described in subsection (a)(1) under such 
law for purposes of assuring compliance with Federal consumer 
financial law and any regulations thereunder, the Bureau shall 
have the exclusive authority to prescribe rules, issue 
guidance[, conduct examinations,] require reports, or issue 
exemptions with regard to a person described in subsection 
(a)(1), subject to those provisions of law.
  [(e)] (d) Service Providers.--A service provider to a person 
described in subsection (a)(1) shall be subject to the 
rulemaking and enforcement, but not supervisory, authority of 
the Bureau under this section, to the same extent as if such 
service provider were engaged in a service relationship with a 
bank, and the Bureau were an appropriate Federal banking agency 
under section 7(c) of the Bank Service Company Act (12 U.S.C. 
1867(c)). In [conducting any examination or requiring any 
report from a service provider subject to this subsection] 
carrying out any authority pursuant to this subsection with 
respect to a service provider, the Bureau shall coordinate with 
the appropriate prudential regulator, as applicable.
  [(f)] (e) Preservation of Farm Credit Administration 
Authority.--No provision of this title may be construed as 
modifying, limiting, or otherwise affecting the authority of 
the Farm Credit Administration.

[SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS ASSOCIATIONS, AND 
                    CREDIT UNIONS.

  [(a) Scope of Coverage.--This section shall apply to any 
covered person that is--
          [(1) an insured depository institution with total 
        assets of more than $10,000,000,000 and any affiliate 
        thereof; or
          [(2) an insured credit union with total assets of 
        more than $10,000,000,000 and any affiliate thereof.
  [(b) Supervision.--
          [(1) In general.--The Bureau shall have exclusive 
        authority to require reports and conduct examinations 
        on a periodic basis of persons described in subsection 
        (a) for purposes of--
                  [(A) assessing compliance with the 
                requirements of Federal consumer financial 
                laws;
                  [(B) obtaining information about the 
                activities subject to such laws and the 
                associated compliance systems or procedures of 
                such persons; and
                  [(C) detecting and assessing associated risks 
                to consumers and to markets for consumer 
                financial products and services.
          [(2) Coordination.--To minimize regulatory burden, 
        the Bureau shall coordinate its supervisory activities 
        with the supervisory activities conducted by prudential 
        regulators and the State bank regulatory authorities, 
        including consultation regarding their respective 
        schedules for examining such persons described in 
        subsection (a) and requirements regarding reports to be 
        submitted by such persons.
          [(3) Use of existing reports.--The Bureau shall, to 
        the fullest extent possible, use--
                  [(A) reports pertaining to a person described 
                in subsection (a) that have been provided or 
                required to have been provided to a Federal or 
                State agency; and
                  [(B) information that has been reported 
                publicly.
          [(4) Preservation of authority.--Nothing in this 
        title may be construed as limiting the authority of the 
        Director to require reports from a person described in 
        subsection (a), as permitted under paragraph (1), 
        regarding information owned or under the control of 
        such person, regardless of whether such information is 
        maintained, stored, or processed by another person.
          [(5) Reports of tax law noncompliance.--The Bureau 
        shall provide the Commissioner of Internal Revenue with 
        any report of examination or related information 
        identifying possible tax law noncompliance.
  [(c) Primary Enforcement Authority.--
          [(1) The bureau to have primary enforcement 
        authority.--To the extent that the Bureau and another 
        Federal agency are authorized to enforce a Federal 
        consumer financial law, the Bureau shall have primary 
        authority to enforce that Federal consumer financial 
        law with respect to any person described in subsection 
        (a).
          [(2) Referral.--Any Federal agency, other than the 
        Federal Trade Commission, that is authorized to enforce 
        a Federal consumer financial law may recommend, in 
        writing, to the Bureau that the Bureau initiate an 
        enforcement proceeding with respect to a person 
        described in subsection (a), as the Bureau is 
        authorized to do by that Federal consumer financial 
        law.
          [(3) Backup enforcement authority of other federal 
        agency.--If the Bureau does not, before the end of the 
        120-day period beginning on the date on which the 
        Bureau receives a recommendation under paragraph (2), 
        initiate an enforcement proceeding, the other agency 
        referred to in paragraph (2) may initiate an 
        enforcement proceeding, including performing follow up 
        supervisory and support functions incidental thereto, 
        to assure compliance with such proceeding.
  [(d) Service Providers.--A service provider to a person 
described in subsection (a) shall be subject to the authority 
of the Bureau under this section, to the same extent as if the 
Bureau were an appropriate Federal banking agency under section 
7(c) of the Bank Service Company Act 12 U.S.C. 1867(c). In 
conducting any examination or requiring any report from a 
service provider subject to this subsection, the Bureau shall 
coordinate with the appropriate prudential regulator.
  [(e) Simultaneous and Coordinated Supervisory Action.--
          [(1) Examinations.--A prudential regulator and the 
        Bureau shall, with respect to each insured depository 
        institution, insured credit union, or other covered 
        person described in subsection (a) that is supervised 
        by the prudential regulator and the Bureau, 
        respectively--
                  [(A) coordinate the scheduling of 
                examinations of the insured depository 
                institution, insured credit union, or other 
                covered person described in subsection (a);
                  [(B) conduct simultaneous examinations of 
                each insured depository institution or insured 
                credit union, unless such institution requests 
                examinations to be conducted separately;
                  [(C) share each draft report of examination 
                with the other agency and permit the receiving 
                agency a reasonable opportunity (which shall 
                not be less than a period of 30 days after the 
                date of receipt) to comment on the draft report 
                before such report is made final; and
                  [(D) prior to issuing a final report of 
                examination or taking supervisory action, take 
                into consideration concerns, if any, raised in 
                the comments made by the other agency.
          [(2) Coordination with state bank supervisors.--The 
        Bureau shall pursue arrangements and agreements with 
        State bank supervisors to coordinate examinations, 
        consistent with paragraph (1).
          [(3) Avoidance of conflict in supervision.--
                  [(A) Request.--If the proposed supervisory 
                determinations of the Bureau and a prudential 
                regulator (in this section referred to 
                collectively as the ``agencies'') are 
                conflicting, an insured depository institution, 
                insured credit union, or other covered person 
                described in subsection (a) may request the 
                agencies to coordinate and present a joint 
                statement of coordinated supervisory action.
                  [(B) Joint statement.--The agencies shall 
                provide a joint statement under subparagraph 
                (A), not later than 30 days after the date of 
                receipt of the request of the insured 
                depository institution, credit union, or 
                covered person described in subsection (a).
          [(4) Appeals to governing panel.--
                  [(A) In general.--If the agencies do not 
                resolve the conflict or issue a joint statement 
                required by subparagraph (B), or if either of 
                the agencies takes or attempts to take any 
                supervisory action relating to the request for 
                the joint statement without the consent of the 
                other agency, an insured depository 
                institution, insured credit union, or other 
                covered person described in subsection (a) may 
                institute an appeal to a governing panel, as 
                provided in this subsection, not later than 30 
                days after the expiration of the period during 
                which a joint statement is required to be filed 
                under paragraph (3)(B).
                  [(B) Composition of governing panel.--The 
                governing panel for an appeal under this 
                paragraph shall be composed of--
                          [(i) a representative from the Bureau 
                        and a representative of the prudential 
                        regulator, both of whom--
                                  [(I) have not participated in 
                                the material supervisory 
                                determinations under appeal; 
                                and
                                  [(II) do not directly or 
                                indirectly report to the person 
                                who participated materially in 
                                the supervisory determinations 
                                under appeal; and
                          [(ii) one individual representative, 
                        to be determined on a rotating basis, 
                        from among the Board of Governors, the 
                        Corporation, the National Credit Union 
                        Administration, and the Office of the 
                        Comptroller of the Currency, other than 
                        any agency involved in the subject 
                        dispute.
                  [(C) Conduct of appeal.--In an appeal under 
                this paragraph--
                          [(i) the insured depository 
                        institution, insured credit union, or 
                        other covered person described in 
                        subsection (a)--
                                  [(I) shall include in its 
                                appeal all the facts and legal 
                                arguments pertaining to the 
                                matter; and
                                  [(II) may, through counsel, 
                                employees, or representatives, 
                                appear before the governing 
                                panel in person or by 
                                telephone; and
                          [(ii) the governing panel--
                                  [(I) may request the insured 
                                depository institution, insured 
                                credit union, or other covered 
                                person described in subsection 
                                (a), the Bureau, or the 
                                prudential regulator to produce 
                                additional information relevant 
                                to the appeal; and
                                  [(II) by a majority vote of 
                                its members, shall provide a 
                                final determination, in 
                                writing, not later than 30 days 
                                after the date of filing of an 
                                informationally complete 
                                appeal, or such longer period 
                                as the panel and the insured 
                                depository institution, insured 
                                credit union, or other covered 
                                person described in subsection 
                                (a) may jointly agree.
                  [(D) Public availability of determinations.--
                A governing panel shall publish all information 
                contained in a determination by the governing 
                panel, with appropriate redactions of 
                information that would be subject to an 
                exemption from disclosure under section 552 of 
                title 5, United States Code.
                  [(E) Prohibition against retaliation.--The 
                Bureau and the prudential regulators shall 
                prescribe rules to provide safeguards from 
                retaliation against the insured depository 
                institution, insured credit union, or other 
                covered person described in subsection (a) 
                instituting an appeal under this paragraph, as 
                well as their officers and employees.
                  [(F) Limitation.--The process provided in 
                this paragraph shall not apply to a 
                determination by a prudential regulator to 
                appoint a conservator or receiver for an 
                insured depository institution or a liquidating 
                agent for an insured credit union, as the case 
                may be, or a decision to take action pursuant 
                to section 38 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1831o) or section 212 of the 
                Federal Credit Union Act (112 U.S.C. 1790a), as 
                applicable.
                  [(G) Effect on other authority.--Nothing in 
                this section shall modify or limit the 
                authority of the Bureau to interpret, or take 
                enforcement action under, any Federal consumer 
                financial law, or the authority of a prudential 
                regulator to interpret or take enforcement 
                action under any other provision of Federal law 
                for safety and soundness purposes.]

SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND CREDIT UNIONS.

  [(a) Scope of Coverage.--This section shall apply to any 
covered person that is--
          [(1) an insured depository institution with total 
        assets of $10,000,000,000 or less; or
          [(2) an insured credit union with total assets of 
        $10,000,000,000 or less.]
  (a) Scope of Coverage.--This section shall apply to any 
covered person that is an insured depository institution or an 
insured credit union.
  (b) Reports.--The Director may require reports from a person 
described in subsection (a), as necessary to support the role 
of the Bureau in implementing Federal consumer financial law, 
to support its examination activities under subsection (c), and 
to assess and detect risks to consumers and consumer financial 
markets.
          (1) Use of existing reports.--The Bureau shall, to 
        the fullest extent possible, use--
                  (A) reports pertaining to a person described 
                in subsection (a) that have been provided or 
                required to have been provided to a Federal or 
                State agency; and
                  (B) information that has been reported 
                publicly.
          (2) Preservation of authority.--Nothing in this 
        subsection may be construed as limiting the authority 
        of the Director from requiring from a person described 
        in subsection (a), as permitted under paragraph (1), 
        information owned or under the control of such person, 
        regardless of whether such information is maintained, 
        stored, or processed by another person.
          (3) Reports of tax law noncompliance.--The Bureau 
        shall provide the Commissioner of Internal Revenue with 
        any [report of examination or related] information 
        identifying possible tax law noncompliance.
  [(c) Examinations.--
          [(1) In general.--The Bureau may, at its discretion, 
        include examiners on a sampling basis of the 
        examinations performed by the prudential regulator to 
        assess compliance with the requirements of Federal 
        consumer financial law of persons described in 
        subsection (a).
          [(2) Agency coordination.--The prudential regulator 
        shall--
                  [(A) provide all reports, records, and 
                documentation related to the examination 
                process for any institution included in the 
                sample referred to in paragraph (1) to the 
                Bureau on a timely and continual basis;
                  [(B) involve such Bureau examiner in the 
                entire examination process for such person; and
                  [(C) consider input of the Bureau concerning 
                the scope of an examination, conduct of the 
                examination, the contents of the examination 
                report, the designation of matters requiring 
                attention, and examination ratings.]
  [(d)] (c) Enforcement.--
          (1) In general.--Except for requiring reports under 
        subsection (b), the prudential regulator is authorized 
        to enforce the requirements of Federal consumer 
        financial laws and, with respect to a covered person 
        described in subsection (a), shall have exclusive 
        authority (relative to the Bureau) to enforce such 
        laws.
          (2) Coordination with prudential regulator.--
                  (A) Referral.--When the Bureau has reason to 
                believe that a person described in subsection 
                (a) has engaged in a material violation of a 
                Federal consumer financial law, the Bureau 
                shall notify the prudential regulator in 
                writing and recommend appropriate action to 
                respond.
                  (B) Response.--Upon receiving a 
                recommendation under subparagraph (A), the 
                prudential regulator shall provide a written 
                response to the Bureau not later than 60 days 
                thereafter.
          (3) Very large institutions.--
                  (A) Primary enforcement authority.--
                Notwithstanding paragraph (1), to the extent 
                that the Bureau and another Federal agency are 
                authorized to enforce a Federal consumer 
                financial law, the Bureau shall have primary 
                authority to enforce that Federal consumer 
                financial law with respect to an insured 
                depository institution or insured credit union, 
                if such depository institution or credit union 
                has total assets of more than $10,000,000,000, 
                and any affiliate thereof.
                  (B) Referral.--Any Federal agency, other than 
                the Federal Trade Commission, that is 
                authorized to enforce a Federal consumer 
                financial law may recommend, in writing, to the 
                Bureau that the Bureau initiate an enforcement 
                proceeding with respect to a person described 
                in subparagraph (A), as the Bureau is 
                authorized to do by that Federal consumer 
                financial law.
                  (C) Backup enforcement authority.--If the 
                Bureau does not, before the end of the 120-day 
                period beginning on the date on which the 
                Bureau receives a recommendation under 
                subparagraph (B), initiate an enforcement 
                proceeding, the other agency referred to in 
                subparagraph (B) may initiate an enforcement 
                proceeding.
  [(e)] (d) Service Providers.--A service provider to a 
substantial number of persons described in subsection (a), or 
to any person described under subsection (c)(3)(A), shall be 
subject to the authority of the Bureau under [section 1025] 
this section to the same extent as if the Bureau were an 
appropriate Federal bank agency under section 7(c) of the Bank 
Service Company Act (12 U.S.C. 1867(c)). [When conducting any 
examination or requiring any report from a service provider 
subject to this subsection] In carrying out any authority 
pursuant to this subsection with respect to a service provider, 
the Bureau shall coordinate with the appropriate prudential 
regulator.

SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; PRESERVATION OF 
                    AUTHORITIES.

  (a) Exclusion for Merchants, Retailers, and Other Sellers of 
Nonfinancial Goods or Services.--
          (1) Sale or brokerage of nonfinancial good or 
        service.--The Bureau may not exercise any rulemaking, 
        [supervisory,] enforcement or other authority under 
        this title with respect to a person who is a merchant, 
        retailer, or seller of any nonfinancial good or service 
        and is engaged in the sale or brokerage of such 
        nonfinancial good or service, except to the extent that 
        such person is engaged in offering or providing any 
        consumer financial product or service, or is otherwise 
        subject to any enumerated consumer law or any law for 
        which authorities are transferred under subtitle F or 
        H.
          (2) Offering or provision of certain consumer 
        financial products or services in connection with the 
        sale or brokerage of nonfinancial good or service.--
                  (A) In general.--Except as provided in 
                subparagraph (B), and subject to subparagraph 
                (C), the Bureau may not exercise any 
                rulemaking, [supervisory,] enforcement, or 
                other authority under this title with respect 
                to a merchant, retailer, or seller of 
                nonfinancial goods or services, but only to the 
                extent that such person--
                          (i) extends credit directly to a 
                        consumer, in a case in which the good 
                        or service being provided is not itself 
                        a consumer financial product or service 
                        (other than credit described in this 
                        subparagraph), exclusively for the 
                        purpose of enabling that consumer to 
                        purchase such nonfinancial good or 
                        service directly from the merchant, 
                        retailer, or seller;
                          (ii) directly, or through an 
                        agreement with another person, collects 
                        debt arising from credit extended as 
                        described in clause (i); or
                          (iii) sells or conveys debt described 
                        in clause (i) that is delinquent or 
                        otherwise in default.
                  (B) Applicability.--Subparagraph (A) does not 
                apply to any credit transaction or collection 
                of debt, other than as described in 
                subparagraph (C)(i), arising from a transaction 
                described in subparagraph (A)--
                          (i) in which the merchant, retailer, 
                        or seller of nonfinancial goods or 
                        services assigns, sells or otherwise 
                        conveys to another person such debt 
                        owed by the consumer (except for a sale 
                        of debt that is delinquent or otherwise 
                        in default, as described in 
                        subparagraph (A)(iii));
                          (ii) in which the credit extended 
                        significantly exceeds the market value 
                        of the nonfinancial good or service 
                        provided, or the Bureau otherwise finds 
                        that the sale of the nonfinancial good 
                        or service is done as a subterfuge, so 
                        as to evade or circumvent the 
                        provisions of this title; or
                          (iii) in which the merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services regularly extends 
                        credit and the credit is subject to a 
                        finance charge.
                  (C) Limitations.--
                          (i) In general.--Notwithstanding 
                        subparagraph (B), subparagraph (A) 
                        shall apply with respect to a merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services that is not engaged 
                        significantly in offering or providing 
                        consumer financial products or 
                        services.
                          (ii) Exception.--Subparagraph (A) and 
                        clause (i) of this subparagraph do not 
                        apply to any merchant, retailer, or 
                        seller of nonfinancial goods or 
                        services--
                                  (I) if such merchant, 
                                retailer, or seller of 
                                nonfinancial goods or services 
                                is engaged in a transaction 
                                described in subparagraph 
                                (B)(i) or (B)(ii); or
                                  (II) to the extent that such 
                                merchant, retailer, or seller 
                                is subject to any enumerated 
                                consumer law or any law for 
                                which authorities are 
                                transferred under subtitle F or 
                                H, but the Bureau may exercise 
                                such authority only with 
                                respect to that law.
                  (D) Rules.--
                          (i) Authority of other agencies.--No 
                        provision of this title shall be 
                        construed as modifying, limiting, or 
                        superseding the supervisory or 
                        enforcement authority of the Federal 
                        Trade Commission or any other agency 
                        (other than the Bureau) with respect to 
                        credit extended, or the collection of 
                        debt arising from such extension, 
                        directly by a merchant or retailer to a 
                        consumer exclusively for the purpose of 
                        enabling that consumer to purchase 
                        nonfinancial goods or services directly 
                        from the merchant or retailer.
                          (ii) Small businesses.--A merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services that would otherwise 
                        be subject to the authority of the 
                        Bureau solely by virtue of the 
                        application of subparagraph (B)(iii) 
                        shall be deemed not to be engaged 
                        significantly in offering or providing 
                        consumer financial products or services 
                        under subparagraph (C)(i), if such 
                        person--
                                  (I) only extends credit for 
                                the sale of nonfinancial goods 
                                or services, as described in 
                                subparagraph (A)(i);
                                  (II) retains such credit on 
                                its own accounts (except to 
                                sell or convey such debt that 
                                is delinquent or otherwise in 
                                default); and
                                  (III) meets the relevant 
                                industry size threshold to be a 
                                small business concern, based 
                                on annual receipts, pursuant to 
                                section 3 of the Small Business 
                                Act (15 U.S.C. 632) and the 
                                implementing rules thereunder.
                          (iii) Initial year.--A merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services shall be deemed to 
                        meet the relevant industry size 
                        threshold described in clause (ii)(III) 
                        during the first year of operations of 
                        that business concern if, during that 
                        year, the receipts of that business 
                        concern reasonably are expected to meet 
                        that size threshold.
                          (iv) Other standards for small 
                        business.--With respect to a merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services that is a classified 
                        on a basis other than annual receipts 
                        for the purposes of section 3 of the 
                        Small Business Act (15 U.S.C. 632) and 
                        the implementing rules thereunder, such 
                        merchant, retailer, or seller shall be 
                        deemed to meet the relevant industry 
                        size threshold described in clause 
                        (ii)(III) if such merchant, retailer, 
                        or seller meets the relevant industry 
                        size threshold to be a small business 
                        concern based on the number of 
                        employees, or other such applicable 
                        measure, established under that Act.
                  (E) Exception from state enforcement.--To the 
                extent that the Bureau may not exercise 
                authority under this subsection with respect to 
                a merchant, retailer, or seller of nonfinancial 
                goods or services, no action by a State 
                attorney general or State regulator with 
                respect to a claim made under this title may be 
                brought under subsection 1042(a), with respect 
                to an activity described in any of clauses (i) 
                through (iii) of subparagraph (A) by such 
                merchant, retailer, or seller of nonfinancial 
                goods or services.
  (b) Exclusion for Real Estate Brokerage Activities.--
          (1) Real estate brokerage activities excluded.--
        Without limiting subsection (a), and except as 
        permitted in paragraph (2), the Bureau may not exercise 
        any rulemaking, [supervisory,] enforcement, or other 
        authority under this title with respect to a person 
        that is licensed or registered as a real estate broker 
        or real estate agent, in accordance with State law, to 
        the extent that such person--
                  (A) acts as a real estate agent or broker for 
                a buyer, seller, lessor, or lessee of real 
                property;
                  (B) brings together parties interested in the 
                sale, purchase, lease, rental, or exchange of 
                real property;
                  (C) negotiates, on behalf of any party, any 
                portion of a contract relating to the sale, 
                purchase, lease, rental, or exchange of real 
                property (other than in connection with the 
                provision of financing with respect to any such 
                transaction); or
                  (D) offers to engage in any activity, or act 
                in any capacity, described in subparagraph (A), 
                (B), or (C).
          (2) Description of activities.--The Bureau may 
        exercise rulemaking, [supervisory,] enforcement, or 
        other authority under this title with respect to a 
        person described in paragraph (1) when such person is--
                  (A) engaged in an activity of offering or 
                providing any consumer financial product or 
                service, except that the Bureau may exercise 
                such authority only with respect to that 
                activity; or
                  (B) otherwise subject to any enumerated 
                consumer law or any law for which authorities 
                are transferred under subtitle F or H, but the 
                Bureau may exercise such authority only with 
                respect to that law.
  (c) Exclusion for Manufactured Home Retailers and Modular 
Home Retailers.--
          (1) In general.--The Director may not exercise any 
        rulemaking, [supervisory,] enforcement, or other 
        authority over a person to the extent that--
                  (A) such person is not described in paragraph 
                (2); and
                  (B) such person--
                          (i) acts as an agent or broker for a 
                        buyer or seller of a manufactured home 
                        or a modular home;
                          (ii) facilitates the purchase by a 
                        consumer of a manufactured home or 
                        modular home, by negotiating the 
                        purchase price or terms of the sales 
                        contract (other than providing 
                        financing with respect to such 
                        transaction); or
                          (iii) offers to engage in any 
                        activity described in clause (i) or 
                        (ii).
          (2) Description of activities.--A person is described 
        in this paragraph to the extent that such person is 
        engaged in the offering or provision of any consumer 
        financial product or service or is otherwise subject to 
        any enumerated consumer law or any law for which 
        authorities are transferred under subtitle F or H.
          (3) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Manufactured home.--The term 
                ``manufactured home'' has the same meaning as 
                in section 603 of the National Manufactured 
                Housing Construction and Safety Standards Act 
                of 1974 (42 U.S.C. 5402).
                  (B) Modular home.--The term ``modular home'' 
                means a house built in a factory in 2 or more 
                modules that meet the State or local building 
                codes where the house will be located, and 
                where such modules are transported to the 
                building site, installed on foundations, and 
                completed.
  (d) Exclusion for Accountants and Tax Preparers.--
          (1) In general.--Except as permitted in paragraph 
        (2), the Bureau may not exercise any rulemaking, 
        [supervisory,] enforcement, or other authority over--
                  (A) any person that is a certified public 
                accountant, permitted to practice as a 
                certified public accounting firm, or certified 
                or licensed for such purpose by a State, or any 
                individual who is employed by or holds an 
                ownership interest with respect to a person 
                described in this subparagraph, when such 
                person is performing or offering to perform--
                          (i) customary and usual accounting 
                        activities, including the provision of 
                        accounting, tax, advisory, or other 
                        services that are subject to the 
                        regulatory authority of a State board 
                        of accountancy or a Federal authority; 
                        or
                          (ii) other services that are 
                        incidental to such customary and usual 
                        accounting activities, to the extent 
                        that such incidental services are not 
                        offered or provided--
                                  (I) by the person separate 
                                and apart from such customary 
                                and usual accounting 
                                activities; or
                                  (II) to consumers who are not 
                                receiving such customary and 
                                usual accounting activities; or
                  (B) any person, other than a person described 
                in subparagraph (A) that performs income tax 
                preparation activities for consumers.
          (2) Description of activities.--
                  (A) In general.--Paragraph (1) shall not 
                apply to any person described in paragraph 
                (1)(A) or (1)(B) to the extent that such person 
                is engaged in any activity which is not a 
                customary and usual accounting activity 
                described in paragraph (1)(A) or incidental 
                thereto but which is the offering or provision 
                of any consumer financial product or service, 
                except to the extent that a person described in 
                paragraph (1)(A) is engaged in an activity 
                which is a customary and usual accounting 
                activity described in paragraph (1)(A), or 
                incidental thereto.
                  (B) Not a customary and usual accounting 
                activity.--For purposes of this subsection, 
                extending or brokering credit is not a 
                customary and usual accounting activity, or 
                incidental thereto.
                  (C) Rule of construction.--For purposes of 
                subparagraphs (A) and (B), a person described 
                in paragraph (1)(A) shall not be deemed to be 
                extending credit, if such person is only 
                extending credit directly to a consumer, 
                exclusively for the purpose of enabling such 
                consumer to purchase services described in 
                clause (i) or (ii) of paragraph (1)(A) directly 
                from such person, and such credit is--
                          (i) not subject to a finance charge; 
                        and
                          (ii) not payable by written agreement 
                        in more than 4 installments.
                  (D) Other limitations.--Paragraph (1) does 
                not apply to any person described in paragraph 
                (1)(A) or (1)(B) that is otherwise subject to 
                any enumerated consumer law or any law for 
                which authorities are transferred under 
                subtitle F or H.
  (e) Exclusion for Practice of Law.--
          (1) In general.--Except as provided under paragraph 
        (2), the Bureau may not exercise any [supervisory or] 
        enforcement authority with respect to an activity 
        engaged in by an attorney as part of the practice of 
        law under the laws of a State in which the attorney is 
        licensed to practice law.
          (2) Rule of construction.--Paragraph (1) shall not be 
        construed so as to limit the exercise by the Bureau of 
        any [supervisory,] enforcement, or other authority 
        regarding the offering or provision of a consumer 
        financial product or service described in any 
        subparagraph of section 1002(5)--
                  (A) that is not offered or provided as part 
                of, or incidental to, the practice of law, 
                occurring exclusively within the scope of the 
                attorney-client relationship; or
                  (B) that is otherwise offered or provided by 
                the attorney in question with respect to any 
                consumer who is not receiving legal advice or 
                services from the attorney in connection with 
                such financial product or service.
          (3) Existing authority.--Paragraph (1) shall not be 
        construed so as to limit the authority of the Bureau 
        with respect to any attorney, to the extent that such 
        attorney is otherwise subject to any of the enumerated 
        consumer laws or the authorities transferred under 
        subtitle F or H.
  (f) Exclusion for Persons Regulated by a State Insurance 
Regulator.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the 
        authority of any State insurance regulator to adopt 
        rules, initiate enforcement proceedings, or take any 
        other action with respect to a person regulated by a 
        State insurance regulator. Except as provided in 
        paragraph (2), the Bureau shall have no authority to 
        exercise any power to enforce this title with respect 
        to a person regulated by a State insurance regulator.
          (2) Description of activities.--Paragraph (1) does 
        not apply to any person described in such paragraph to 
        the extent that such person is engaged in the offering 
        or provision of any consumer financial product or 
        service or is otherwise subject to any enumerated 
        consumer law or any law for which authorities are 
        transferred under subtitle F or H.
          (3) State insurance authority under gramm-leach-
        bliley.--Notwithstanding paragraph (2), the Bureau 
        shall not exercise any authorities that are granted a 
        State insurance authority under section 505(a)(6) of 
        the Gramm-Leach-Bliley Act with respect to a person 
        regulated by a State insurance authority.
  (g) Exclusion for Employee Benefit and Compensation Plans and 
Certain Other Arrangements Under the Internal Revenue Code of 
1986.--
          (1) Preservation of authority of other agencies.--No 
        provision of this title shall be construed as altering, 
        amending, or affecting the authority of the Secretary 
        of the Treasury, the Secretary of Labor, or the 
        Commissioner of Internal Revenue to adopt regulations, 
        initiate enforcement proceedings, or take any actions 
        with respect to any specified plan or arrangement.
          (2) Activities not constituting the offering or 
        provision of any consumer financial product or 
        service.--For purposes of this title, a person shall 
        not be treated as having engaged in the offering or 
        provision of any consumer financial product or service 
        solely because such person is--
                  (A) a specified plan or arrangement;
                  (B) engaged in the activity of establishing 
                or maintaining, for the benefit of employees of 
                such person (or for members of an employee 
                organization), any specified plan or 
                arrangement; or
                  (C) engaged in the activity of establishing 
                or maintaining a qualified tuition program 
                under section 529(b)(1) of the Internal Revenue 
                Code of 1986 offered by a State or other 
                prepaid tuition program offered by a State.
          (3) Limitation on bureau authority.--
                  (A) In general.--Except as provided under 
                subparagraphs (B) and (C), the Bureau may not 
                exercise any rulemaking or enforcement 
                authority with respect to products or services 
                that relate to any specified plan or 
                arrangement.
                  (B) Bureau action pursuant to agency 
                request.--
                          (i) Agency request.--The Secretary 
                        and the Secretary of Labor may jointly 
                        issue a written request to the Bureau 
                        regarding implementation of appropriate 
                        consumer protection standards under 
                        this title with respect to the 
                        provision of services relating to any 
                        specified plan or arrangement.
                          (ii) Agency response.--In response to 
                        a request by the Bureau, the Secretary 
                        and the Secretary of Labor shall 
                        jointly issue a written response, not 
                        later than 90 days after receipt of 
                        such request, to grant or deny the 
                        request of the Bureau regarding 
                        implementation of appropriate consumer 
                        protection standards under this title 
                        with respect to the provision of 
                        services relating to any specified plan 
                        or arrangement.
                          (iii) Scope of bureau action.--
                        Subject to a request or response 
                        pursuant to clause (i) or clause (ii) 
                        by the agencies made under this 
                        subparagraph, the Bureau may exercise 
                        rulemaking authority, and may act to 
                        enforce a rule prescribed pursuant to 
                        such request or response, in accordance 
                        with the provisions of this title. A 
                        request or response made by the 
                        Secretary and the Secretary of Labor 
                        under this subparagraph shall describe 
                        the basis for, and scope of, 
                        appropriate consumer protection 
                        standards to be implemented under this 
                        title with respect to the provision of 
                        services relating to any specified plan 
                        or arrangement.
                  (C) Description of products or services.--To 
                the extent that a person engaged in providing 
                products or services relating to any specified 
                plan or arrangement is subject to any 
                enumerated consumer law or any law for which 
                authorities are transferred under subtitle F or 
                H, subparagraph (A) shall not apply with 
                respect to that law.
          (4) Specified plan or arrangement.--For purposes of 
        this subsection, the term ``specified plan or 
        arrangement'' means any plan, account, or arrangement 
        described in section 220, 223, 401(a), 403(a), 403(b), 
        408, 408A, 529, 529A, or 530 of the Internal Revenue 
        Code of 1986, or any employee benefit or compensation 
        plan or arrangement, including a plan that is subject 
        to title I of the Employee Retirement Income Security 
        Act of 1974, or any prepaid tuition program offered by 
        a State.
  (h) Persons Regulated by a State Securities Commission.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the 
        authority of any securities commission (or any agency 
        or office performing like functions) of any State to 
        adopt rules, initiate enforcement proceedings, or take 
        any other action with respect to a person regulated by 
        any securities commission (or any agency or office 
        performing like functions) of any State. Except as 
        permitted in paragraph (2) and subsection (f), the 
        Bureau shall have no authority to exercise any power to 
        enforce this title with respect to a person regulated 
        by any securities commission (or any agency or office 
        performing like functions) of any State, but only to 
        the extent that the person acts in such regulated 
        capacity.
          (2) Description of activities.--Paragraph (1) shall 
        not apply to any person to the extent such person is 
        engaged in the offering or provision of any consumer 
        financial product or service, or is otherwise subject 
        to any enumerated consumer law or any law for which 
        authorities are transferred under subtitle F or H.
  (i) Exclusion for Persons Regulated by the Commission.--
          (1) In general.--No provision of this title may be 
        construed as altering, amending, or affecting the 
        authority of the Commission to adopt rules, initiate 
        enforcement proceedings, or take any other action with 
        respect to a person regulated by the Commission. The 
        Bureau shall have no authority to exercise any power to 
        enforce this title with respect to a person regulated 
        by the Commission.
          (2) Consultation and coordination.--Notwithstanding 
        paragraph (1), the Commission shall consult and 
        coordinate, where feasible, with the Bureau with 
        respect to any rule (including any advance notice of 
        proposed rulemaking) regarding an investment product or 
        service that is the same type of product as, or that 
        competes directly with, a consumer financial product or 
        service that is subject to the jurisdiction of the 
        Bureau under this title or under any other law. In 
        carrying out this paragraph, the agencies shall 
        negotiate an agreement to establish procedures for such 
        coordination, including procedures for providing 
        advance notice to the Bureau when the Commission is 
        initiating a rulemaking.
  (j) Exclusion for Persons Regulated by the Commodity Futures 
Trading Commission.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the 
        authority of the Commodity Futures Trading Commission 
        to adopt rules, initiate enforcement proceedings, or 
        take any other action with respect to a person 
        regulated by the Commodity Futures Trading Commission. 
        The Bureau shall have no authority to exercise any 
        power to enforce this title with respect to a person 
        regulated by the Commodity Futures Trading Commission.
          (2) Consultation and coordination.--Notwithstanding 
        paragraph (1), the Commodity Futures Trading Commission 
        shall consult and coordinate with the Bureau with 
        respect to any rule (including any advance notice of 
        proposed rulemaking) regarding a product or service 
        that is the same type of product as, or that competes 
        directly with, a consumer financial product or service 
        that is subject to the jurisdiction of the Bureau under 
        this title or under any other law.
  (k) Exclusion for Persons Regulated by the Farm Credit 
Administration.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the 
        authority of the Farm Credit Administration to adopt 
        rules, initiate enforcement proceedings, or take any 
        other action with respect to a person regulated by the 
        Farm Credit Administration. The Bureau shall have no 
        authority to exercise any power to enforce this title 
        with respect to a person regulated by the Farm Credit 
        Administration.
          (2) Definition.--For purposes of this subsection, the 
        term ``person regulated by the Farm Credit 
        Administration'' means any Farm Credit System 
        institution that is chartered and subject to the 
        provisions of the Farm Credit Act of 1971 (12 U.S.C. 
        2001 et seq.).
  (l) Exclusion for Activities Relating to Charitable 
Contributions.--
          (1) In general.--The Director and the Bureau may not 
        exercise any rulemaking, [supervisory,] enforcement, or 
        other authority, including authority to order 
        penalties, over any activities related to the 
        solicitation or making of voluntary contributions to a 
        tax-exempt organization as recognized by the Internal 
        Revenue Service, by any agent, volunteer, or 
        representative of such organizations to the extent the 
        organization, agent, volunteer, or representative 
        thereof is soliciting or providing advice, information, 
        education, or instruction to any donor or potential 
        donor relating to a contribution to the organization.
          (2) Limitation.--The exclusion in paragraph (1) does 
        not apply to other activities not described in 
        paragraph (1) that are the offering or provision of any 
        consumer financial product or service, or are otherwise 
        subject to any enumerated consumer law or any law for 
        which authorities are transferred under subtitle F or 
        H.
  (m) Insurance.--The Bureau may not define as a financial 
product or service, by regulation or otherwise, engaging in the 
business of insurance.
  (n) Limited Authority of the Bureau.--Notwithstanding 
subsections (a) through (h) and (l), a person subject to or 
described in one or more of such provisions--
          (1) may be a service provider; and
          (2) may be subject to requests from, or requirements 
        imposed by, the Bureau regarding information in order 
        to carry out the responsibilities and functions of the 
        Bureau and in accordance with section 1022, 1052, or 
        1053.
  (o) No Authority To Impose Usury Limit.--No provision of this 
title shall be construed as conferring authority on the Bureau 
to establish a usury limit applicable to an extension of credit 
offered or made by a covered person to a consumer, unless 
explicitly authorized by law.
  (p) Attorney General.--No provision of this title, including 
[section 1024(c)(1)] section 1024(b)(1), shall affect the 
authorities of the Attorney General under otherwise applicable 
provisions of law.
  (q) Secretary of the Treasury.--No provision of this title 
shall affect the authorities of the Secretary, including with 
respect to prescribing rules, initiating enforcement 
proceedings, or taking other actions with respect to a person 
that performs income tax preparation activities for consumers.
  (r) Deposit Insurance and Share Insurance.--Nothing in this 
title shall affect the authority of the Corporation under the 
Federal Deposit Insurance Act or the National Credit Union 
Administration Board under the Federal Credit Union Act as to 
matters related to deposit insurance and share insurance, 
respectively.
  (s) Fair Housing Act.--No provision of this title shall be 
construed as affecting any authority arising under the Fair 
Housing Act.
  (t) No Authority to Regulate Small-dollar Credit.--The Bureau 
may not exercise any rulemaking, enforcement, or other 
authority with respect to payday loans, vehicle title loans, or 
other similar loans.

[SEC. 1028. AUTHORITY TO RESTRICT MANDATORY PRE-DISPUTE ARBITRATION.

  [(a) Study and Report.--The Bureau shall conduct a study of, 
and shall provide a report to Congress concerning, the use of 
agreements providing for arbitration of any future dispute 
between covered persons and consumers in connection with the 
offering or providing of consumer financial products or 
services.
  [(b) Further Authority.--The Bureau, by regulation, may 
prohibit or impose conditions or limitations on the use of an 
agreement between a covered person and a consumer for a 
consumer financial product or service providing for arbitration 
of any future dispute between the parties, if the Bureau finds 
that such a prohibition or imposition of conditions or 
limitations is in the public interest and for the protection of 
consumers. The findings in such rule shall be consistent with 
the study conducted under subsection (a).
  [(c) Limitation.--The authority described in subsection (b) 
may not be construed to prohibit or restrict a consumer from 
entering into a voluntary arbitration agreement with a covered 
person after a dispute has arisen.
  [(d) Effective Date.--Notwithstanding any other provision of 
law, any regulation prescribed by the Bureau under subsection 
(b) shall apply, consistent with the terms of the regulation, 
to any agreement between a consumer and a covered person 
entered into after the end of the 180-day period beginning on 
the effective date of the regulation, as established by the 
Bureau.]

           *       *       *       *       *       *       *

                Subtitle C--Specific Bureau Authorities

[SEC. 1031. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR 
                    PRACTICES.

  [(a) In General.--The Bureau may take any action authorized 
under subtitle E to prevent a covered person or service 
provider from committing or engaging in an unfair, deceptive, 
or abusive act or practice under Federal law in connection with 
any transaction with a consumer for a consumer financial 
product or service, or the offering of a consumer financial 
product or service.
  [(b) Rulemaking.--The Bureau may prescribe rules applicable 
to a covered person or service provider identifying as unlawful 
unfair, deceptive, or abusive acts or practices in connection 
with any transaction with a consumer for a consumer financial 
product or service, or the offering of a consumer financial 
product or service. Rules under this section may include 
requirements for the purpose of preventing such acts or 
practices.
  [(c) Unfairness.--
          [(1) In general.--The Bureau shall have no authority 
        under this section to declare an act or practice in 
        connection with a transaction with a consumer for a 
        consumer financial product or service, or the offering 
        of a consumer financial product or service, to be 
        unlawful on the grounds that such act or practice is 
        unfair, unless the Bureau has a reasonable basis to 
        conclude that--
                  [(A) the act or practice causes or is likely 
                to cause substantial injury to consumers which 
                is not reasonably avoidable by consumers; and
                  [(B) such substantial injury is not 
                outweighed by countervailing benefits to 
                consumers or to competition.
          [(2) Consideration of public policies.--In 
        determining whether an act or practice is unfair, the 
        Bureau may consider established public policies as 
        evidence to be considered with all other evidence. Such 
        public policy considerations may not serve as a primary 
        basis for such determination.
  [(d) Abusive.--The Bureau shall have no authority under this 
section to declare an act or practice abusive in connection 
with the provision of a consumer financial product or service, 
unless the act or practice--
          [(1) materially interferes with the ability of a 
        consumer to understand a term or condition of a 
        consumer financial product or service; or
          [(2) takes unreasonable advantage of--
                  [(A) a lack of understanding on the part of 
                the consumer of the material risks, costs, or 
                conditions of the product or service;
                  [(B) the inability of the consumer to protect 
                the interests of the consumer in selecting or 
                using a consumer financial product or service; 
                or
                  [(C) the reasonable reliance by the consumer 
                on a covered person to act in the interests of 
                the consumer.
  [(e) Consultation.--In prescribing rules under this section, 
the Bureau shall consult with the Federal banking agencies, or 
other Federal agencies, as appropriate, concerning the 
consistency of the proposed rule with prudential, market, or 
systemic objectives administered by such agencies.
  [(f) Consideration of Seasonal Income.--The rules of the 
Bureau under this section shall provide, with respect to an 
extension of credit secured by residential real estate or a 
dwelling, if documented income of the borrower, including 
income from a small business, is a repayment source for an 
extension of credit secured by residential real estate or a 
dwelling, the creditor may consider the seasonality and 
irregularity of such income in the underwriting of and 
scheduling of payments for such credit.]

           *       *       *       *       *       *       *

SEC. 1034. RESPONSE TO CONSUMER COMPLAINTS AND INQUIRIES.

  (a) Timely Regulator Response to Consumers.--The Bureau shall 
establish, in consultation with the appropriate Federal 
regulatory agencies, reasonable procedures to provide a timely 
response to consumers, in writing where appropriate, to 
complaints against, or inquiries concerning, a covered person, 
including--
          (1) steps that have been taken by the regulator in 
        response to the complaint or inquiry of the consumer;
          (2) any responses received by the regulator from the 
        covered person; and
          (3) any follow-up actions or planned follow-up 
        actions by the regulator in response to the complaint 
        or inquiry of the consumer.
  [(b) Timely Response to Regulator by Covered Person.--A 
covered person subject to supervision and primary enforcement 
by the Bureau pursuant to section 1025 shall provide a timely 
response, in writing where appropriate, to the Bureau, the 
prudential regulators, and any other agency having jurisdiction 
over such covered person concerning a consumer complaint or 
inquiry, including--
          [(1) steps that have been taken by the covered person 
        to respond to the complaint or inquiry of the consumer;
          [(2) responses received by the covered person from 
        the consumer; and
          [(3) follow-up actions or planned follow-up actions 
        by the covered person to respond to the complaint or 
        inquiry of the consumer.
  [(c) Provision of Information to Consumers.--
          [(1) In general.--A covered person subject to 
        supervision and primary enforcement by the Bureau 
        pursuant to section 1025 shall, in a timely manner, 
        comply with a consumer request for information in the 
        control or possession of such covered person concerning 
        the consumer financial product or service that the 
        consumer obtained from such covered person, including 
        supporting written documentation, concerning the 
        account of the consumer.
          [(2) Exceptions.--A covered person subject to 
        supervision and primary enforcement by the Bureau 
        pursuant to section 1025, a prudential regulator, and 
        any other agency having jurisdiction over a covered 
        person subject to supervision and primary enforcement 
        by the Bureau pursuant to section 1025 may not be 
        required by this section to make available to the 
        consumer--
                  [(A) any confidential commercial information, 
                including an algorithm used to derive credit 
                scores or other risk scores or predictors;
                  [(B) any information collected by the covered 
                person for the purpose of preventing fraud or 
                money laundering, or detecting or making any 
                report regarding other unlawful or potentially 
                unlawful conduct;
                  [(C) any information required to be kept 
                confidential by any other provision of law; or
                  [(D) any nonpublic or confidential 
                information, including confidential supervisory 
                information.]
  [(d)] (b) Agreements With Other Agencies.--The Bureau shall 
enter into a memorandum of understanding with any affected 
Federal regulatory agency regarding procedures by which any 
covered person, and the prudential regulators, and any other 
agency having jurisdiction over a covered person, including the 
Secretary of the Department of Housing and Urban Development 
and the Secretary of Education, shall comply with this section.

           *       *       *       *       *       *       *

SEC. 1036. PROHIBITED ACTS.

  (a) In General.--It shall be unlawful for--
          (1) any covered person or service [provider--]
                  [(A) to offer] provider to offer or provide 
                to a consumer any financial product or service 
                not in conformity with Federal consumer 
                financial law, or otherwise commit any act or 
                omission in violation of a Federal consumer 
                financial law; or
                  [(B) to engage in any unfair, deceptive, or 
                abusive act or practice;]
          (2) any covered person or service provider to fail or 
        refuse, as required by Federal consumer financial law, 
        or any rule or order issued by the Bureau thereunder--
                  (A) to permit access to or copying of 
                records;
                  (B) to establish or maintain records; or
                  (C) to make reports or provide information to 
                the Bureau[; or].
          [(3) any person to knowingly or recklessly provide 
        substantial assistance to a covered person or service 
        provider in violation of the provisions of section 
        1031, or any rule or order issued thereunder, and 
        notwithstanding any provision of this title, the 
        provider of such substantial assistance shall be deemed 
        to be in violation of that section to the same extent 
        as the person to whom such assistance is provided.]
  (b) Exception.--No person shall be held to have violated 
subsection (a)(1) solely by virtue of providing or selling time 
or space to a covered person or service provider placing an 
advertisement.

           *       *       *       *       *       *       *

Subtitle E--Enforcement Powers

           *       *       *       *       *       *       *

SEC. 1053. HEARINGS AND ADJUDICATION PROCEEDINGS.

  (a) In General.--The Bureau is authorized to conduct hearings 
and adjudication proceedings with respect to any person in the 
manner prescribed by chapter 5 of title 5, United States Code 
in order to ensure or enforce compliance with--
          (1) the provisions of this title, including any rules 
        prescribed by the Bureau under this title; and
          (2) any other Federal law that the Bureau is 
        authorized to enforce, including an enumerated consumer 
        law, and any regulations or order prescribed 
        thereunder, unless such Federal law specifically limits 
        the Bureau from conducting a hearing or adjudication 
        proceeding and only to the extent of such limitation.
  (b) Special Rules for Cease-and-desist Proceedings.--
          (1) Orders authorized.--
                  (A) In general.--If, in the opinion of the 
                Bureau, any covered person or service provider 
                is engaging or has engaged in an activity that 
                violates a law, rule, or any condition imposed 
                in writing on the person by the Bureau, the 
                Bureau may, subject to [sections 1024, 1025, 
                and 1026] sections 1024 and 1026, issue and 
                serve upon the covered person or service 
                provider a notice of charges in respect 
                thereof.
                  (B) Content of notice.--The notice under 
                subparagraph (A) shall contain a statement of 
                the facts constituting the alleged violation or 
                violations, and shall fix a time and place at 
                which a hearing will be held to determine 
                whether an order to cease and desist should 
                issue against the covered person or service 
                provider, such hearing to be held not earlier 
                than 30 days nor later than 60 days after the 
                date of service of such notice, unless an 
                earlier or a later date is set by the Bureau, 
                at the request of any party so served.
                  (C) Consent.--Unless the party or parties 
                served under subparagraph (B) appear at the 
                hearing personally or by a duly authorized 
                representative, such person shall be deemed to 
                have consented to the issuance of the cease-
                and-desist order.
                  (D) Procedure.--In the event of consent under 
                subparagraph (C), or if, upon the record, made 
                at any such hearing, the Bureau finds that any 
                violation specified in the notice of charges 
                has been established, the Bureau may issue and 
                serve upon the covered person or service 
                provider an order to cease and desist from the 
                violation or practice. Such order may, by 
                provisions which may be mandatory or otherwise, 
                require the covered person or service provider 
                to cease and desist from the subject activity, 
                and to take affirmative action to correct the 
                conditions resulting from any such violation.
          (2) Effectiveness of order.--A cease-and-desist order 
        shall become effective at the expiration of 30 days 
        after the date of service of an order under paragraph 
        (1) upon the covered person or service provider 
        concerned (except in the case of a cease-and-desist 
        order issued upon consent, which shall become effective 
        at the time specified therein), and shall remain 
        effective and enforceable as provided therein, except 
        to such extent as the order is stayed, modified, 
        terminated, or set aside by action of the Bureau or a 
        reviewing court.
          (3) Decision and appeal.--Any hearing provided for in 
        this subsection shall be held in the Federal judicial 
        district or in the territory in which the residence or 
        principal office or place of business of the person is 
        located unless the person consents to another place, 
        and shall be conducted in accordance with the 
        provisions of chapter 5 of title 5 of the United States 
        Code. After such hearing, and within 90 days after the 
        Bureau has notified the parties that the case has been 
        submitted to the Bureau for final decision, the Bureau 
        shall render its decision (which shall include findings 
        of fact upon which its decision is predicated) and 
        shall issue and serve upon each party to the proceeding 
        an order or orders consistent with the provisions of 
        this section. Judicial review of any such order shall 
        be exclusively as provided in this subsection. Unless a 
        petition for review is timely filed in a court of 
        appeals of the United States, as provided in paragraph 
        (4), and thereafter until the record in the proceeding 
        has been filed as provided in paragraph (4), the Bureau 
        may at any time, upon such notice and in such manner as 
        the Bureau shall determine proper, modify, terminate, 
        or set aside any such order. Upon filing of the record 
        as provided, the Bureau may modify, terminate, or set 
        aside any such order with permission of the court.
          (4) Appeal to court of appeals.--Any party to any 
        proceeding under this subsection may obtain a review of 
        any order served pursuant to this subsection (other 
        than an order issued with the consent of the person 
        concerned) by the filing in the court of appeals of the 
        United States for the circuit in which the principal 
        office of the covered person is located, or in the 
        United States Court of Appeals for the District of 
        Columbia Circuit, within 30 days after the date of 
        service of such order, a written petition praying that 
        the order of the Bureau be modified, terminated, or set 
        aside. A copy of such petition shall be forthwith 
        transmitted by the clerk of the court to the Bureau, 
        and thereupon the Bureau shall file in the court the 
        record in the proceeding, as provided in section 2112 
        of title 28 of the United States Code. Upon the filing 
        of such petition, such court shall have jurisdiction, 
        which upon the filing of the record shall except as 
        provided in the last sentence of paragraph (3) be 
        exclusive, to affirm, modify, terminate, or set aside, 
        in whole or in part, the order of the Bureau. Review of 
        such proceedings shall be had as provided in chapter 7 
        of title 5 of the United States Code. The judgment and 
        decree of the court shall be final, except that the 
        same shall be subject to review by the Supreme Court of 
        the United States, upon certiorari, as provided in 
        section 1254 of title 28 of the United States Code.
          (5) No stay.--The commencement of proceedings for 
        judicial review under paragraph (4) shall not, unless 
        specifically ordered by the court, operate as a stay of 
        any order issued by the Bureau.
  (c) Special Rules for Temporary Cease-and-desist 
Proceedings.--
          (1) In general.--Whenever the Bureau determines that 
        the violation specified in the notice of charges served 
        upon a person, including a service provider, pursuant 
        to subsection (b), or the continuation thereof, is 
        likely to cause the person to be insolvent or otherwise 
        prejudice the interests of consumers before the 
        completion of the proceedings conducted pursuant to 
        subsection (b), the Bureau may issue a temporary order 
        requiring the person to cease and desist from any such 
        violation or practice and to take affirmative action to 
        prevent or remedy such insolvency or other condition 
        pending completion of such proceedings. Such order may 
        include any requirement authorized under this subtitle. 
        Such order shall become effective upon service upon the 
        person and, unless set aside, limited, or suspended by 
        a court in proceedings authorized by paragraph (2), 
        shall remain effective and enforceable pending the 
        completion of the administrative proceedings pursuant 
        to such notice and until such time as the Bureau shall 
        dismiss the charges specified in such notice, or if a 
        cease-and-desist order is issued against the person, 
        until the effective date of such order.
          (2) Appeal.--Not later than 10 days after the covered 
        person or service provider concerned has been served 
        with a temporary cease-and-desist order, the person may 
        apply to the United States district court for the 
        judicial district in which the residence or principal 
        office or place of business of the person is located, 
        or the United States District Court for the District of 
        Columbia, for an injunction setting aside, limiting, or 
        suspending the enforcement, operation, or effectiveness 
        of such order pending the completion of the 
        administrative proceedings pursuant to the notice of 
        charges served upon the person under subsection (b), 
        and such court shall have jurisdiction to issue such 
        injunction.
          (3) Incomplete or inaccurate records.--
                  (A) Temporary order.--If a notice of charges 
                served under subsection (b) specifies, on the 
                basis of particular facts and circumstances, 
                that the books and records of a covered person 
                or service provider are so incomplete or 
                inaccurate that the Bureau is unable to 
                determine the financial condition of that 
                person or the details or purpose of any 
                transaction or transactions that may have a 
                material effect on the financial condition of 
                that person, the Bureau may issue a temporary 
                order requiring--
                          (i) the cessation of any activity or 
                        practice which gave rise, whether in 
                        whole or in part, to the incomplete or 
                        inaccurate state of the books or 
                        records; or
                          (ii) affirmative action to restore 
                        such books or records to a complete and 
                        accurate state, until the completion of 
                        the proceedings under subsection 
                        (b)(1).
                  (B) Effective period.--Any temporary order 
                issued under subparagraph (A)--
                          (i) shall become effective upon 
                        service; and
                          (ii) unless set aside, limited, or 
                        suspended by a court in proceedings 
                        under paragraph (2), shall remain in 
                        effect and enforceable until the 
                        earlier of--
                                  (I) the completion of the 
                                proceeding initiated under 
                                subsection (b) in connection 
                                with the notice of charges; or
                                  (II) the date the Bureau 
                                determines[, by examination or 
                                otherwise,] that the books and 
                                records of the covered person 
                                or service provider are 
                                accurate and reflect the 
                                financial condition thereof.
  (d) Special Rules for Enforcement of Orders.--
          (1) In general.--The Bureau may in its discretion 
        apply to the United States district court within the 
        jurisdiction of which the principal office or place of 
        business of the person is located, for the enforcement 
        of any effective and outstanding notice or order issued 
        under this section, and such court shall have 
        jurisdiction and power to order and require compliance 
        herewith.
          (2) Exception.--Except as otherwise provided in this 
        subsection, no court shall have jurisdiction to affect 
        by injunction or otherwise the issuance or enforcement 
        of any notice or order or to review, modify, suspend, 
        terminate, or set aside any such notice or order.
  (e) Rules.--The Bureau shall prescribe rules establishing 
such procedures as may be necessary to carry out this section.

SEC. 1054. LITIGATION AUTHORITY.

  (a) In General.--If any person violates a Federal consumer 
financial law, the Bureau may, subject to [sections 1024, 1025, 
and 1026] sections 1024 and 1026, commence a civil action 
against such person to impose a civil penalty or to seek all 
appropriate legal and equitable relief including a permanent or 
temporary injunction as permitted by law.
  (b) Representation.--The Bureau may act in its own name and 
through its own attorneys in enforcing any provision of this 
title, rules thereunder, or any other law or regulation, or in 
any action, suit, or proceeding to which the Bureau is a party.
  (c) Compromise of Actions.--The Bureau may compromise or 
settle any action if such compromise is approved by the court.
  (d) Notice to the Attorney General.--
          (1) In general.--When commencing a civil action under 
        Federal consumer financial law, or any rule thereunder, 
        the Bureau shall notify the Attorney General and, with 
        respect to a civil action against an insured depository 
        institution or insured credit union, the appropriate 
        prudential regulator.
          (2) Notice and coordination.--
                  (A) Notice of other actions.--In addition to 
                any notice required under paragraph (1), the 
                Bureau shall notify the Attorney General 
                concerning any action, suit, or proceeding to 
                which the Bureau is a party, except an action, 
                suit, or proceeding that involves the offering 
                or provision of consumer financial products or 
                services.
                  (B) Coordination.--In order to avoid 
                conflicts and promote consistency regarding 
                litigation of matters under Federal law, the 
                Attorney General and the Bureau shall consult 
                regarding the coordination of investigations 
                and proceedings, including by negotiating an 
                agreement for coordination by not later than 
                180 days after the designated transfer date. 
                The agreement under this subparagraph shall 
                include provisions to ensure that parallel 
                investigations and proceedings involving the 
                Federal consumer financial laws are conducted 
                in a manner that avoids conflicts and does not 
                impede the ability of the Attorney General to 
                prosecute violations of Federal criminal laws.
                  (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to limit the 
                authority of the Bureau under this title, 
                including the authority to interpret Federal 
                consumer financial law.
  (e) Appearance Before the Supreme Court.--The Bureau may 
represent itself in its own name before the Supreme Court of 
the United States, provided that the Bureau makes a written 
request to the Attorney General within the 10-day period which 
begins on the date of entry of the judgment which would permit 
any party to file a petition for writ of certiorari, and the 
Attorney General concurs with such request or fails to take 
action within 60 days of the request of the Bureau.
  (f) Forum.--Any civil action brought under this title may be 
brought in a United States district court or in any court of 
competent jurisdiction of a state in a district in which the 
defendant is located or resides or is doing business, and such 
court shall have jurisdiction to enjoin such person and to 
require compliance with any Federal consumer financial law.
  (g) Time for Bringing Action.--
          (1) In general.--Except as otherwise permitted by law 
        or equity, no action may be brought under this title 
        more than 3 years after the date of discovery of the 
        violation to which an action relates.
          (2) Limitations under other federal laws.--
                  (A) In general.--An action arising under this 
                title does not include claims arising solely 
                under enumerated consumer laws.
                  (B) Bureau authority.--In any action arising 
                solely under an enumerated consumer law, the 
                Bureau may commence, defend, or intervene in 
                the action in accordance with the requirements 
                of that provision of law, as applicable.
                  (C) Transferred authority.--In any action 
                arising solely under laws for which authorities 
                were transferred under subtitles F and H, the 
                Bureau may commence, defend, or intervene in 
                the action in accordance with the requirements 
                of that provision of law, as applicable.

           *       *       *       *       *       *       *

     Subtitle F--Transfer of Functions and Personnel; Transitional 
                               Provisions

SEC. 1061. TRANSFER OF CONSUMER FINANCIAL PROTECTION FUNCTIONS.

  (a) Defined Terms.--For purposes of this subtitle--
          (1) the term ``consumer financial protection 
        functions''[means--]
                  [(A) all] means all authority to prescribe 
                rules or issue orders or guidelines pursuant to 
                any Federal consumer financial law, including 
                performing appropriate functions to promulgate 
                and review such rules, orders, and guidelines[; 
                and].
                  [(B) the examination authority described in 
                subsection (c)(1), with respect to a person 
                described in subsection 1025(a); and]
          (2) the terms ``transferor agency'' and ``transferor 
        agencies'' mean, respectively--
                  (A) the Board of Governors (and any Federal 
                reserve bank, as the context requires), the 
                Federal Deposit Insurance Corporation, the 
                Federal Trade Commission, the National Credit 
                Union Administration, the Office of the 
                Comptroller of the Currency, the Office of 
                Thrift Supervision, and the Department of 
                Housing and Urban Development, and the heads of 
                those agencies; and
                  (B) the agencies listed in subparagraph (A), 
                collectively.
  (b) In General.--Except as provided in subsection (c), 
consumer financial protection functions are transferred as 
follows:
          (1) Board of governors.--
                  (A) Transfer of functions.--All consumer 
                financial protection functions of the Board of 
                Governors are transferred to the Bureau.
                  (B) Board of governors authority.--The Bureau 
                shall have all powers and duties that were 
                vested in the Board of Governors, relating to 
                consumer financial protection functions, on the 
                day before the designated transfer date.
          (2) Comptroller of the currency.--
                  (A) Transfer of functions.--All consumer 
                financial protection functions of the 
                Comptroller of the Currency are transferred to 
                the Bureau.
                  (B) Comptroller authority.--The Bureau shall 
                have all powers and duties that were vested in 
                the Comptroller of the Currency, relating to 
                consumer financial protection functions, on the 
                day before the designated transfer date.
          (3) Director of the office of thrift supervision.--
                  (A) Transfer of functions.--All consumer 
                financial protection functions of the Director 
                of the Office of Thrift Supervision are 
                transferred to the Bureau.
                  (B) Director authority.--The Bureau shall 
                have all powers and duties that were vested in 
                the Director of the Office of Thrift 
                Supervision, relating to consumer financial 
                protection functions, on the day before the 
                designated transfer date.
          (4) Federal deposit insurance corporation.--
                  (A) Transfer of functions.--All consumer 
                financial protection functions of the Federal 
                Deposit Insurance Corporation are transferred 
                to the Bureau.
                  (B) Corporation authority.--The Bureau shall 
                have all powers and duties that were vested in 
                the Federal Deposit Insurance Corporation, 
                relating to consumer financial protection 
                functions, on the day before the designated 
                transfer date.
          (5) Federal trade commission.--
                  (A) Transfer of functions.--The authority of 
                the Federal Trade Commission under an 
                enumerated consumer law to prescribe rules, 
                issue guidelines, or conduct a study or issue a 
                report mandated under such law shall be 
                transferred to the Bureau on the designated 
                transfer date. Nothing in this title shall be 
                construed to require a mandatory transfer of 
                any employee of the Federal Trade Commission.
                  (B) Bureau authority.--
                          [(i) In general.--]The Bureau shall 
                        have all powers and duties under the 
                        enumerated consumer laws to prescribe 
                        rules, issue guidelines, or to conduct 
                        studies or issue reports mandated by 
                        such laws, that were vested in the 
                        Federal Trade Commission on the day 
                        before the designated transfer date.
                          [(ii) Federal trade commission act.--
                        Subject to subtitle B, the Bureau may 
                        enforce a rule prescribed under the 
                        Federal Trade Commission Act by the 
                        Federal Trade Commission with respect 
                        to an unfair or deceptive act or 
                        practice to the extent that such rule 
                        applies to a covered person or service 
                        provider with respect to the offering 
                        or provision of a consumer financial 
                        product or service as if it were a rule 
                        prescribed under section 1031 of this 
                        title.]
                  (C) Authority of the federal trade 
                commission.--
                          (i) In general.--No provision of this 
                        title shall be construed as modifying, 
                        limiting, or otherwise affecting the 
                        authority of the Federal Trade 
                        Commission (including its authority 
                        with respect to affiliates described in 
                        section 1025(a)(1)) under the Federal 
                        Trade Commission Act or any other law, 
                        other than the authority under an 
                        enumerated consumer law to prescribe 
                        rules, issue official guidelines, or 
                        conduct a study or issue a report 
                        mandated under such law.
                          (ii) Commission authority relating to 
                        rules prescribed by the bureau.--
                        Subject to subtitle B, the Federal 
                        Trade Commission shall have authority 
                        to enforce under the Federal Trade 
                        Commission Act (15 U.S.C. 41 et seq.) a 
                        rule prescribed by the Bureau under 
                        this title with respect to a covered 
                        person subject to the jurisdiction of 
                        the Federal Trade Commission under that 
                        Act, and a violation of such a rule by 
                        such a person shall be treated as a 
                        violation of a rule issued under 
                        section 18 of that Act (15 U.S.C. 57a) 
                        with respect to unfair or deceptive 
                        acts or practices.
                  [(D) Coordination.--To avoid duplication of 
                or conflict between rules prescribed by the 
                Bureau under section 1031 of this title and the 
                Federal Trade Commission under section 
                18(a)(1)(B) of the Federal Trade Commission Act 
                that apply to a covered person or service 
                provider with respect to the offering or 
                provision of consumer financial products or 
                services, the agencies shall negotiate an 
                agreement with respect to rulemaking by each 
                agency, including consultation with the other 
                agency prior to proposing a rule and during the 
                comment period.]
                  [(E)] (D) Deference.--No provision of this 
                title shall be construed as altering, limiting, 
                expanding, or otherwise affecting the deference 
                that a court affords to the--
                          (i) Federal Trade Commission in 
                        making determinations regarding the 
                        meaning or interpretation of any 
                        provision of the Federal Trade 
                        Commission Act, or of any other Federal 
                        law for which the Commission has 
                        authority to prescribe rules; or
                          (ii) Bureau in making determinations 
                        regarding the meaning or interpretation 
                        of any provision of a Federal consumer 
                        financial law (other than any law 
                        described in clause (i)).
          (6) National credit union administration.--
                  (A) Transfer of functions.--All consumer 
                financial protection functions of the National 
                Credit Union Administration are transferred to 
                the Bureau.
                  (B) National credit union administration 
                authority.--The Bureau shall have all powers 
                and duties that were vested in the National 
                Credit Union Administration, relating to 
                consumer financial protection functions, on the 
                day before the designated transfer date.
          (7) Department of housing and urban development.--
                  (A) Transfer of functions.--All consumer 
                protection functions of the Secretary of the 
                Department of Housing and Urban Development 
                relating to the Real Estate Settlement 
                Procedures Act of 1974 (12 U.S.C. 2601 et 
                seq.), the Secure and Fair Enforcement for 
                Mortgage Licensing Act of 2008 (12 U.S.C. 5102 
                et seq.), and the Interstate Land Sales Full 
                Disclosure Act (15 U.S.C. 1701 et seq.) are 
                transferred to the Bureau.
                  (B) Authority of the department of housing 
                and urban development.--The Bureau shall have 
                all powers and duties that were vested in the 
                Secretary of the Department of Housing and 
                Urban Development relating to the Real Estate 
                Settlement Procedures Act of 1974 (12 U.S.C. 
                2601 et seq.), the Secure and Fair Enforcement 
                for Mortgage Licensing Act of 2008 (12 U.S.C. 
                5101 et seq.), and the Interstate Land Sales 
                Full Disclosure Act (15 U.S.C. 1701 et seq.), 
                on the day before the designated transfer date.
  (c) Authorities of the Prudential Regulators.--
          [(1) Examination.--A transferor agency that is a 
        prudential regulator shall have--
                  [(A) authority to require reports from and 
                conduct examinations for compliance with 
                Federal consumer financial laws with respect to 
                a person described in section 1025(a), that is 
                incidental to the backup and enforcement 
                procedures provided to the regulator under 
                section 1025(c); and
                  [(B) exclusive authority (relative to the 
                Bureau) to require reports from and conduct 
                examinations for compliance with Federal 
                consumer financial laws with respect to a 
                person described in section 1026(a), except as 
                provided to the Bureau under subsections (b) 
                and (c) of section 1026.]
          (1) Examination.--A transferor agency that is a 
        prudential regulator shall have exclusive authority 
        (relative to the Bureau) to require reports from and 
        conduct examinations for compliance with Federal 
        consumer financial laws with respect to a person 
        described in section 1026(a).
          (2) Enforcement.--
                  [(A) Limitation.--The authority of a 
                transferor agency that is a prudential 
                regulator to enforce compliance with Federal 
                consumer financial laws with respect to a 
                person described in section 1025(a), shall be 
                limited to the backup and enforcement 
                procedures in described in section 1025(c).]
                  [(B)] (A) Exclusive authority.--A transferor 
                agency that is a prudential regulator shall 
                have exclusive authority (relative to the 
                Bureau) to enforce compliance with Federal 
                consumer financial laws with respect to a 
                person described in section 1026(a), except as 
                provided to the Bureau under subsections (b) 
                and (c) of section 1026.
                  [(C)] (B) Statutory enforcement.--For 
                purposes of carrying out the authorities under, 
                and subject to the limitations of, subtitle B, 
                each prudential regulator may enforce 
                compliance with the requirements imposed under 
                this title, and any rule or order prescribed by 
                the Bureau under this title, under--
                          (i) the Federal Credit Union Act (12 
                        U.S.C. 1751 et seq.), by the National 
                        Credit Union Administration Board with 
                        respect to any covered person or 
                        service provider that is an insured 
                        credit union, or service provider 
                        thereto, or any affiliate of an insured 
                        credit union, who is subject to the 
                        jurisdiction of the Board under that 
                        Act; and
                          (ii) section 8 of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1818), by the 
                        appropriate Federal banking agency, as 
                        defined in section 3(q) of the Federal 
                        Deposit Insurance Act (12 U.S.C. 
                        1813(q)), with respect to a covered 
                        person or service provider that is a 
                        person described in section 3(q) of 
                        that Act and who is subject to the 
                        jurisdiction of that agency, as set 
                        forth in sections 3(q) and 8 of the 
                        Federal Deposit Insurance Act; or
                          (iii) the Bank Service Company Act 
                        (12 U.S.C. 1861 et seq.).
  (d) Effective Date.--Subsections (b) and (c) shall become 
effective on the designated transfer date.

           *       *       *       *       *       *       *

SEC. 1063. SAVINGS PROVISIONS.

  (a) Board of Governors.--
          (1) Existing rights, duties, and obligations not 
        affected.--Section 1061(b)(1) does not affect the 
        validity of any right, duty, or obligation of the 
        United States, the Board of Governors (or any Federal 
        reserve bank), or any other person that--
                  (A) arises under any provision of law 
                relating to any consumer financial protection 
                function of the Board of Governors transferred 
                to the Bureau by this title; and
                  (B) existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--No provision of this Act 
        shall abate any proceeding commenced by or against the 
        Board of Governors (or any Federal reserve bank) before 
        the designated transfer date with respect to any 
        consumer financial protection function of the Board of 
        Governors (or any Federal reserve bank) transferred to 
        the Bureau by this title, except that the Bureau, 
        subject to [sections 1024, 1025, and 1026] sections 
        1024 and 1026, shall be substituted for the Board of 
        Governors (or Federal reserve bank) as a party to any 
        such proceeding as of the designated transfer date.
  (b) Federal Deposit Insurance Corporation.--
          (1) Existing rights, duties, and obligations not 
        affected.--Section 1061(b)(4) does not affect the 
        validity of any right, duty, or obligation of the 
        United States, the Federal Deposit Insurance 
        Corporation, the Board of Directors of that 
        Corporation, or any other person, that--
                  (A) arises under any provision of law 
                relating to any consumer financial protection 
                function of the Federal Deposit Insurance 
                Corporation transferred to the Bureau by this 
                title; and
                  (B) existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--No provision of this Act 
        shall abate any proceeding commenced by or against the 
        Federal Deposit Insurance Corporation (or the Board of 
        Directors of that Corporation) before the designated 
        transfer date with respect to any consumer financial 
        protection function of the Federal Deposit Insurance 
        Corporation transferred to the Bureau by this title, 
        except that the Bureau, subject to [sections 1024, 
        1025, and 1026] sections 1024 and 1026, shall be 
        substituted for the Federal Deposit Insurance 
        Corporation (or Board of Directors) as a party to any 
        such proceeding as of the designated transfer date.
  (c) Federal Trade Commission.--Section 1061(b)(5) does not 
affect the validity of any right, duty, or obligation of the 
United States, the Federal Trade Commission, or any other 
person, that--
          (1) arises under any provision of law relating to any 
        consumer financial protection function of the Federal 
        Trade Commission transferred to the Bureau by this 
        title; and
          (2) existed on the day before the designated transfer 
        date.
  (d) National Credit Union Administration.--
          (1) Existing rights, duties, and obligations not 
        affected.--Section 1061(b)(6) does not affect the 
        validity of any right, duty, or obligation of the 
        United States, the National Credit Union 
        Administration, the National Credit Union 
        Administration Board, or any other person, that--
                  (A) arises under any provision of law 
                relating to any consumer financial protection 
                function of the National Credit Union 
                Administration transferred to the Bureau by 
                this title; and
                  (B) existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--No provision of this Act 
        shall abate any proceeding commenced by or against the 
        National Credit Union Administration (or the National 
        Credit Union Administration Board) before the 
        designated transfer date with respect to any consumer 
        financial protection function of the National Credit 
        Union Administration transferred to the Bureau by this 
        title, except that the Bureau, subject to [sections 
        1024, 1025, and 1026] sections 1024 and 1026, shall be 
        substituted for the National Credit Union 
        Administration (or National Credit Union Administration 
        Board) as a party to any such proceeding as of the 
        designated transfer date.
  (e) Office of the Comptroller of the Currency.--
          (1) Existing rights, duties, and obligations not 
        affected.--Section 1061(b)(2) does not affect the 
        validity of any right, duty, or obligation of the 
        United States, the Comptroller of the Currency, the 
        Office of the Comptroller of the Currency, or any other 
        person, that--
                  (A) arises under any provision of law 
                relating to any consumer financial protection 
                function of the Comptroller of the Currency 
                transferred to the Bureau by this title; and
                  (B) existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--No provision of this Act 
        shall abate any proceeding commenced by or against the 
        Comptroller of the Currency (or the Office of the 
        Comptroller of the Currency) with respect to any 
        consumer financial protection function of the 
        Comptroller of the Currency transferred to the Bureau 
        by this title before the designated transfer date, 
        except that the Bureau, subject to [sections 1024, 
        1025, and 1026] sections 1024 and 1026, shall be 
        substituted for the Comptroller of the Currency (or the 
        Office of the Comptroller of the Currency) as a party 
        to any such proceeding as of the designated transfer 
        date.
  (f) Office of Thrift Supervision.--
          (1) Existing rights, duties, and obligations not 
        affected.--Section 1061(b)(3) does not affect the 
        validity of any right, duty, or obligation of the 
        United States, the Director of the Office of Thrift 
        Supervision, the Office of Thrift Supervision, or any 
        other person, that--
                  (A) arises under any provision of law 
                relating to any consumer financial protection 
                function of the Director of the Office of 
                Thrift Supervision transferred to the Bureau by 
                this title; and
                  (B) that existed on the day before the 
                designated transfer date.
          (2) Continuation of suits.--No provision of this Act 
        shall abate any proceeding commenced by or against the 
        Director of the Office of Thrift Supervision (or the 
        Office of Thrift Supervision) with respect to any 
        consumer financial protection function of the Director 
        of the Office of Thrift Supervision transferred to the 
        Bureau by this title before the designated transfer 
        date, except that the Bureau, subject to [sections 
        1024, 1025, and 1026] sections 1024 and 1026, shall be 
        substituted for the Director (or the Office of Thrift 
        Supervision) as a party to any such proceeding as of 
        the designated transfer date.
  (g) Department of Housing and Urban Development.--
          (1) Existing rights, duties, and obligations not 
        affected.--Section 1061(b)(7) shall not affect the 
        validity of any right, duty, or obligation of the 
        United States, the Secretary of the Department of 
        Housing and Urban Development (or the Department of 
        Housing and Urban Development), or any other person, 
        that--
                  (A) arises under any provision of law 
                relating to any function of the Secretary of 
                the Department of Housing and Urban Development 
                with respect to the Real Estate Settlement 
                Procedures Act of 1974 (12 U.S.C. 2601 et 
                seq.), the Secure and Fair Enforcement for 
                Mortgage Licensing Act of 2008 (12 U.S.C. 5102 
                et seq.), or the Interstate Land Sales Full 
                Disclosure Act (15 U.S.C. 1701 et seq) 
                transferred to the Bureau by this title; and
                  (B) existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--This title shall not 
        abate any proceeding commenced by or against the 
        Secretary of the Department of Housing and Urban 
        Development (or the Department of Housing and Urban 
        Development) with respect to any consumer financial 
        protection function of the Secretary of the Department 
        of Housing and Urban Development transferred to the 
        Bureau by this title before the designated transfer 
        date, except that the Bureau, subject to [sections 
        1024, 1025, and 1026] sections 1024 and 1026, shall be 
        substituted for the Secretary of the Department of 
        Housing and Urban Development (or the Department of 
        Housing and Urban Development) as a party to any such 
        proceeding as of the designated transfer date.
  (h) Continuation of Existing Orders, Rulings, Determinations, 
Agreements, and Resolutions.--
          (1) In general.--Except as provided in paragraph (2) 
        and under subsection (i), all orders, resolutions, 
        determinations, agreements, and rulings that have been 
        issued, made, prescribed, or allowed to become 
        effective by any transferor agency or by a court of 
        competent jurisdiction, in the performance of consumer 
        financial protection functions that are transferred by 
        this title and that are in effect on the day before the 
        designated transfer date, shall continue in effect, and 
        shall continue to be enforceable by the appropriate 
        transferor agency, according to the terms of those 
        orders, resolutions, determinations, agreements, and 
        rulings, and shall not be enforceable by or against the 
        Bureau.
          (2) Exception for orders applicable to persons 
        described in section 1025(a).--All orders, resolutions, 
        determinations, agreements, and rulings that have been 
        issued, made, prescribed, or allowed to become 
        effective by any transferor agency or by a court of 
        competent jurisdiction, in the performance of consumer 
        financial protection functions that are transferred by 
        this title and that are in effect on the day before the 
        designated transfer date with respect to any person 
        described in section 1025(a), shall continue in effect, 
        according to the terms of those orders, resolutions, 
        determinations, agreements, and rulings, and shall be 
        enforceable by or against the Bureau or transferor 
        agency.
  (i) Identification of Rules and Orders Continued.--Not later 
than the designated transfer date, the Bureau--
          (1) shall, after consultation with the head of each 
        transferor agency, identify the rules and orders that 
        will be enforced by the Bureau; and
          (2) shall publish a list of such rules and orders in 
        the Federal Register.
  (j) Status of Rules Proposed or Not Yet Effective.--
          (1) Proposed rules.--Any proposed rule of a 
        transferor agency which that agency, in performing 
        consumer financial protection functions transferred by 
        this title, has proposed before the designated transfer 
        date, but has not been published as a final rule before 
        that date, shall be deemed to be a proposed rule of the 
        Bureau.
          (2) Rules not yet effective.--Any interim or final 
        rule of a transferor agency which that agency, in 
        performing consumer financial protection functions 
        transferred by this title, has published before the 
        designated transfer date, but which has not become 
        effective before that date, shall become effective as a 
        rule of the Bureau according to its terms.

           *       *       *       *       *       *       *

SEC. 1067. TRANSITION OVERSIGHT.

  (a) Purpose.--The purpose of this section is to ensure that 
the Bureau--
          (1) has an orderly and organized startup;
          (2) attracts and retains a qualified workforce; and
          (3) establishes comprehensive employee training and 
        benefits programs.
  (b) Reporting Requirement.--
          (1) In general.--The Bureau shall submit an annual 
        report to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives that includes 
        the plans described in paragraph (2).
          (2) Plans.--The plans described in this paragraph are 
        as follows:
                  (A) Training and workforce development 
                plan.--The Bureau shall submit a training and 
                workforce development plan that includes, to 
                the extent practicable--
                          (i) identification of skill and 
                        technical expertise needs and actions 
                        taken to meet those requirements;
                          (ii) steps taken to foster innovation 
                        and creativity;
                          (iii) leadership development and 
                        succession planning; and
                          (iv) effective use of technology by 
                        employees.
                  (B) Workplace flexibilities plan.--The Bureau 
                shall submit a workforce flexibility plan that 
                includes, to the extent practicable--
                          (i) telework;
                          (ii) flexible work schedules;
                          (iii) phased retirement;
                          (iv) reemployed annuitants;
                          (v) part-time work;
                          (vi) job sharing;
                          (vii) parental leave benefits and 
                        childcare assistance;
                          (viii) domestic partner benefits;
                          (ix) other workplace flexibilities; 
                        or
                          (x) any combination of the items 
                        described in clauses (i) through (ix).
                  (C) Recruitment and retention plan.--The 
                Bureau shall submit a recruitment and retention 
                plan that includes, to the extent practicable, 
                provisions relating to--
                          (i) the steps necessary to target 
                        highly qualified applicant pools with 
                        diverse backgrounds;
                          (ii) streamlined employment 
                        application processes;
                          (iii) the provision of timely 
                        notification of the status of 
                        employment applications to applicants; 
                        and
                          (iv) the collection of information to 
                        measure indicators of hiring 
                        effectiveness.
  (c) Expiration.--The reporting requirement under subsection 
(b) shall terminate 5 years after the date of enactment of this 
Act.
  (d) Rule of Construction.--Nothing in this section may be 
construed to affect--
          (1) a collective bargaining agreement, as that term 
        is defined in section 7103(a)(8) of title 5, United 
        States Code, that is in effect on the date of enactment 
        of this Act; or
          (2) the rights of employees under chapter 71 of title 
        5, United States Code.
  [(e) Participation in Examinations.--In order to prepare the 
Bureau to conduct examinations under section 1025 upon the 
designated transfer date, the Bureau and the applicable 
prudential regulator may agree to include, on a sampling basis, 
examiners on examinations of the compliance with Federal 
consumer financial law of institutions described in section 
1025(a) conducted by the prudential regulators prior to the 
designated transfer date.]

Subtitle G--Regulatory Improvements

           *       *       *       *       *       *       *

SEC. 1076. REVERSE MORTGAGE STUDY AND REGULATIONS.

  (a) Study.--Not later than 1 year after the designated 
transfer date, the Bureau shall conduct a study on reverse 
mortgage transactions.
  (b) Regulations.--
          (1) In general.--If the Bureau determines through the 
        study required under subsection (a) that conditions or 
        limitations on reverse mortgage transactions are 
        necessary or appropriate for accomplishing the purposes 
        and objectives of this title, including protecting 
        borrowers with respect to the obtaining of reverse 
        mortgage loans for the purpose of funding investments, 
        annuities, and other investment products and the 
        suitability of a borrower in obtaining a reverse 
        mortgage for such purpose.
          (2) Identified practices and integrated 
        disclosures.--The regulations prescribed under 
        paragraph (1) may, as the Bureau may so [determine--]
                  [(A) identify any practice as unfair, 
                deceptive, or abusive in connection with a 
                reverse mortgage transaction; and]
                  [(B) provide for] determine, provide for an 
                integrated disclosure standard and model 
                disclosures for reverse mortgage transactions, 
                consistent with section 4302(d), that combines 
                the relevant disclosures required under the 
                Truth in Lending Act (15 U.S.C. 1601 et seq.) 
                and the Real Estate Settlement Procedures Act, 
                with the disclosures required to be provided to 
                consumers for Home Equity Conversion Mortgages 
                under section 255 of the National Housing Act.
  (c) Rule of Construction.--This section shall not be 
construed as limiting the authority of the Bureau to issue 
regulations, orders, or guidance that apply to reverse 
mortgages prior to the completion of the study required under 
subsection (a).

           *       *       *       *       *       *       *

                              ----------                              

OMNIBUS APPROPRIATIONS ACT, 2009

           *       *       *       *       *       *       *

 DIVISION D--FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS 
ACT, 2009

           *       *       *       *       *       *       *

TITLE VI--GENERAL PROVISIONS--THIS ACT

           *       *       *       *       *       *       *

  [Sec. 626. (a)(1) The Bureau of Consumer Financial Protection 
shall have authority to prescribe rules with respect to 
mortgage loans in accordance with section 553 of title 5, 
United States Code. Such rulemaking shall relate to unfair or 
deceptive acts or practices regarding mortgage loans, which may 
include unfair or deceptive acts or practices involving loan 
modification and foreclosure rescue services. Any violation of 
a rule prescribed under this paragraph shall be treated as a 
violation of a rule prohibiting unfair, deceptive, or abusive 
acts or practices under the Consumer Financial Protection Act 
of 2010 and a violation of a rule under section 18 of the 
Federal Trade Commission Act (15 U.S.C. 57a) regarding unfair 
or deceptive acts or practices.
  [(2) The Bureau of Consumer Financial Protection shall 
enforce the rules issued under paragraph (1) in the same 
manner, by the same means, and with the same jurisdiction, 
powers, and duties, as though all applicable terms and 
provisions of the Consumer Financial Protection Act of 2010 
were incorporated into and made part of this subsection.
  [(3) Subject to subtitle B of the Consumer Financial 
Protection Act of 2010, the Federal Trade Commission shall 
enforce the rules issued under paragraph (1), in the same 
manner, by the same means, and with the same jurisdiction, as 
though all applicable terms and provisions of the Federal Trade 
Commission Act were incorporated into and made part of this 
section.
  [(b)
          [(1) Except as provided in paragraph (6), in any case 
        in which the attorney general of a State has reason to 
        believe that an interest of the residents of the State 
        has been or is threatened or adversely affected by the 
        engagement of any person subject to a rule prescribed 
        under subsection (a) in practices that violate such 
        rule, the State, as parens patriae, may bring a civil 
        action on behalf of its residents in an appropriate 
        district court of the United States or other court of 
        competent jurisdiction--
                  [(A) to enjoin that practice;
                  [(B) to enforce compliance with the rule;
                  [(C) to obtain damages, restitution, or other 
                compensation on behalf of the residents of the 
                State; or
                  [(D) to obtain penalties and relief provided 
                under the Consumer Financial Protection Act of 
                2010, the Federal Trade Commission Act, and 
                such other relief as the court deems 
                appropriate.
  [(2) The State shall serve written notice to the Bureau of 
Consumer Financial Protection or the Commission, as appropriate 
of any civil action under paragraph (1) at least 60 days prior 
to initiating such civil action. The notice shall include a 
copy of the complaint to be filed to initiate such civil 
action, except that if it is not feasible for the State to 
provide such prior notice, the State shall provide notice 
immediately upon instituting such civil action.
  [(3) Upon receiving the notice required by paragraph (2) and 
subject to subtitle B of the Consumer Financial Protection Act 
of 2010 the Bureau of Consumer Financial Protection or the 
Commission, as appropriate may intervene in such civil action 
and upon intervening--
          [(A) be heard on all matters arising in such civil 
        action;
          [(B) remove the action to the appropriate United 
        States district court; and
          [(C) file petitions for appeal of a decision in such 
        civil action.
  [(4) Nothing in this subsection shall prevent the attorney 
general of a State from exercising the powers conferred on the 
attorney general by the laws of such State to conduct 
investigations or to administer oaths or affirmations or to 
compel the attendance of witnesses or the production of 
documentary and other evidence. Nothing in this section shall 
prohibit the attorney general of a State, or other authorized 
State officer, from proceeding in State or Federal court on the 
basis of an alleged violation of any civil or criminal statute 
of that State.
  [(5) In a civil action brought under paragraph (1)--
          [(A) the venue shall be a judicial district in which 
        the defendant is found, is an inhabitant, or transacts 
        business or wherever venue is proper under section 1391 
        of title 28, United States Code; and
          [(B) process may be served without regard to the 
        territorial limits of the district or of the State in 
        which the civil action is instituted.
  [(6) Whenever a civil action or an administrative action has 
been instituted by or on behalf of the Bureau of Consumer 
Financial Protection or the Commission for violation of any 
provision of law or rule described in paragraph (1), no State 
may, during the pendency of such action instituted by or on 
behalf of the Bureau of Consumer Financial Protection or the 
Commission, institute a civil action under that paragraph 
against any defendant named in the complaint in such action for 
violation of any law or rule as alleged in such complaint.
  [(7) If the attorney general of a State prevails in any civil 
action under paragraph (1), the State can recover reasonable 
costs and attorney fees from the lender or related party.]

           *       *       *       *       *       *       *

                              ----------                              

TELEMARKETING AND CONSUMER FRAUD AND ABUSE PREVENTION ACT

           *       *       *       *       *       *       *

SEC. 3. TELEMARKETING RULES.

  (a) In General.--
          (1) The Commission shall prescribe rules prohibiting 
        deceptive telemarketing acts or practices and other 
        abusive telemarketing acts or practices.
          (2) The Commission shall include in such rules 
        respecting deceptive telemarketing acts or practices a 
        definition of deceptive telemarketing acts or practices 
        which shall include fraudulent charitable 
        solicitations, and which may include acts or practices 
        of entities or individuals that assist or facilitate 
        deceptive telemarketing, including credit card 
        laundering.
          (3) The Commission shall include in such rules 
        respecting other abusive telemarketing acts or 
        practices--
                  (A) a requirement that telemarketers may not 
                undertake a pattern of unsolicited telephone 
                calls which the reasonable consumer would 
                consider coercive or abusive of such consumer's 
                right to privacy,
                  (B) restrictions on the hours of the day and 
                night when unsolicited telephone calls can be 
                made to consumers,
                  (C) a requirement that any person engaged in 
                telemarketing for the sale of goods or services 
                shall promptly and clearly disclose to the 
                person receiving the call that the purpose of 
                the call is to sell goods or services and make 
                such other disclosures as the Commission deems 
                appropriate, including the nature and price of 
                the goods and services; and
                  (D) a requirement that any person engaged in 
                telemarketing for the solicitation of 
                charitable contributions, donations, or gifts 
                of money or any other thing of value, shall 
                promptly and clearly disclose to the person 
                receiving the call that the purpose of the call 
                is to solicit charitable contributions, 
                donations, or gifts, and make such other 
                disclosures as the Commission considers 
                appropriate, including the name and mailing 
                address of the charitable organization on 
                behalf of which the solicitation is made.
        In prescribing the rules described in this paragraph, 
        the Commission shall also consider recordkeeping 
        requirements.
  (b) Rulemaking Authority.--The Commission shall have 
authority to prescribe rules under subsection (a), in 
accordance with section 553 of title 5, United States Code. In 
prescribing a rule under this section that relates to the 
provision of a consumer financial product or service that is 
subject to the Consumer Financial Protection Act of 2010, 
including any enumerated consumer law thereunder, the 
Commission shall consult with the Bureau of Consumer Financial 
Protection regarding the consistency of a proposed rule with 
standards, purposes, or objectives administered by the Bureau 
of Consumer Financial Protection.
  (c) Violations.--Any violation of any rule prescribed under 
[subsection (a)--]
          [(1) shall] subsection (a) shall be treated as a 
        violation of a rule under section 18 of the Federal 
        Trade Commission Act regarding unfair or deceptive acts 
        or practices[; and].
          [(2) that is committed by a person subject to the 
        Consumer Financial Protection Act of 2010 shall be 
        treated as a violation of a rule under section 1031 of 
        that Act regarding unfair, deceptive, or abusive acts 
        or practices.]
  (d) Securities and Exchange Commission Rules.--
          (1) Promulgation.--
                  (A) In general.--Except as provided in 
                subparagraph (B), not later than 6 months after 
                the effective date of rules promulgated by the 
                Federal Trade Commission under subsection (a), 
                the Securities and Exchange Commission shall 
                promulgate, or require any national securities 
                exchange or registered securities association 
                to promulgate, rules substantially similar to 
                such rules to prohibit deceptive and other 
                abusive telemarketing acts or practices by 
                persons described in paragraph (2).
                  (B) Exception.--The Securities and Exchange 
                Commission is not required to promulgate a rule 
                under subparagraph (A) if it determines that--
                          (i) Federal securities laws or rules 
                        adopted by the Securities and Exchange 
                        Commission thereunder provide 
                        protection from deceptive and other 
                        abusive telemarketing by persons 
                        described in paragraph (2) 
                        substantially similar to that provided 
                        by rules promulgated by the Federal 
                        Trade Commission under subsection (a); 
                        or
                          (ii) such a rule promulgated by the 
                        Securities and Exchange Commission is 
                        not necessary or appropriate in the 
                        public interest, or for the protection 
                        of investors, or would be inconsistent 
                        with the maintenance of fair and 
                        orderly markets.
                If the Securities and Exchange Commission 
                determines that an exception described in 
                clause (i) or (ii) applies, the Securities and 
                Exchange Commission shall publish in the 
                Federal Register its determination with the 
                reasons for it.
          (2) Application.--
                  (A) In general.--The rules promulgated by the 
                Securities and Exchange Commission under 
                paragraph (1)(A) shall apply to a broker, 
                dealer, transfer agent, municipal securities 
                dealer, municipal securities broker, government 
                securities broker, government securities 
                dealer, investment adviser or investment 
                company, or any individual asso- ciated with a 
                broker, dealer, transfer agent, municipal 
                securities dealer, municipal securities broker, 
                government securities broker, government 
                securities dealer, investment adviser or 
                investment company. The rules promulgated by 
                the Federal Trade Commission under subsection 
                (a) shall not apply to persons described in the 
                preceding sentence.
                  (B) Definitions.--For purposes of 
                subparagraph (A)--
                          (i) the terms ``broker'', ``dealer'', 
                        ``transfer agent'', ``municipal 
                        securities dealer'', ``municipal 
                        securities broker'', ``government 
                        securities broker'', and ``government 
                        securities dealer'' have the meanings 
                        given such terms by paragraphs (4), 
                        (5), (25), (30), (31), (43), and (44) 
                        of section 3(a) of the Securities and 
                        Exchange Act of 1934 (15 U.S.C. 
                        78c(a)(4), (5), (25), (30), (31), (43), 
                        and (44));
                          (ii) the term ``investment adviser'' 
                        has the meaning given such term by 
                        section 202(a)(11) of the Investment 
                        Advisers Act of 1940 (15 U.S.C. 80b-
                        2(a)(11)); and
                          (iii) the term ``investment company'' 
                        has the meaning given such term by 
                        section 3(a) of the Investment Company 
                        Act of 1940 (15 U.S.C. 80a-3(a)).
  (e) Commodity Futures Trading Commission Rules.--
          (1) Application.--The rules promulgated by the 
        Federal Trade Commission under subsection (a) shall not 
        apply to persons described in subsection (f)(1) of 
        section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9, 
        15, 13b, 9a).
          (2) Promulgation.--Section 6 of the Commodity 
        Exchange Act (7 U.S.C. 8, 9, 15, 13b, 9a) is amended by 
        adding at the end the following new subsection:
  ``(f)(1) Except as provided in paragraph (2), not later than 
six months after the effective date of rules promulgated by the 
Federal Trade Commission under section 3(a) of the 
Telemarketing and Consumer Fraud and Abuse Prevention Act, the 
Commission shall promulgate, or require each registered futures 
association to promulgate, rules substantially similar to such 
rules to prohibit deceptive and other abusive telemarketing 
acts or practices by any person registered or exempt from 
registration under this Act in connection with such person's 
business as a futures commission merchant, introducing broker, 
commodity trading advisor, commodity pool operator, leverage 
transaction merchant, floor broker, or floor trader, or a 
person associated with any such person.
  ``(2) The Commission is not required to promulgate rules 
under paragraph (1) if it determines that--
          ``(A) rules adopted by the Commission under this Act 
        provide protection from deceptive and abusive 
        telemarketing by persons described under paragraph (1) 
        substantially similar to that provided by rules 
        promulgated by the Federal Trade Commission under 
        section 3(a) of the Telemarketing and Consumer Fraud 
        and Abuse Prevention Act; or
          ``(B) such a rule promulgated by the Commission is 
        not necessary or appropriate in the public interest, or 
        for the pro- tection of customers in the futures and 
        options markets, or would be inconsistent with the 
        maintenance of fair and orderly markets.
If the Commission determines that an exception described in 
subparagraph (A) or (B) applies, the Commission shall publish 
in the Federal Register its determination with the reasons for 
it.''.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 11, UNITED STATES CODE

           *       *       *       *       *       *       *

                     CHAPTER 1--GENERAL PROVISIONS

Sec. 101. Definitions

   In this title the following definitions shall apply:
          (1) The term ``accountant'' means accountant 
        authorized under applicable law to practice public 
        accounting, and includes professional accounting 
        association, corporation, or partnership, if so 
        authorized.
          (2) The term ``affiliate'' means--
                  (A) entity that directly or indirectly owns, 
                controls, or holds with power to vote, 20 
                percent or more of the outstanding voting 
                securities of the debtor, other than an entity 
                that holds such securities--
                          (i) in a fiduciary or agency capacity 
                        without sole discretionary power to 
                        vote such securities; or
                          (ii) solely to secure a debt, if such 
                        entity has not in fact exercised such 
                        power to vote;
                  (B) corporation 20 percent or more of whose 
                outstanding voting securities are directly or 
                indirectly owned, controlled, or held with 
                power to vote, by the debtor, or by an entity 
                that directly or indirectly owns, controls, or 
                holds with power to vote, 20 percent or more of 
                the outstanding voting securities of the 
                debtor, other than an entity that holds such 
                securities--
                          (i) in a fiduciary or agency capacity 
                        without sole discretionary power to 
                        vote such securities; or
                          (ii) solely to secure a debt, if such 
                        entity has not in fact exercised such 
                        power to vote;
                  (C) person whose business is operated under a 
                lease or operating agreement by a debtor, or 
                person substantially all of whose property is 
                operated under an operating agreement with the 
                debtor; or
                  (D) entity that operates the business or 
                substantially all of the property of the debtor 
                under a lease or operating agreement.
          (3) The term ``assisted person'' means any person 
        whose debts consist primarily of consumer debts and the 
        value of whose nonexempt property is less than 
        $150,000.
          (4) The term ``attorney'' means attorney, 
        professional law association, corporation, or 
        partnership, authorized under applicable law to 
        practice law.
          (4A) The term ``bankruptcy assistance'' means any 
        goods or services sold or otherwise provided to an 
        assisted person with the express or implied purpose of 
        providing information, advice, counsel, document 
        preparation, or filing, or attendance at a creditors' 
        meeting or appearing in a case or proceeding on behalf 
        of another or providing legal representation with 
        respect to a case or proceeding under this title.
          (5) The term ``claim'' means--
                  (A) right to payment, whether or not such 
                right is reduced to judgment, liquidated, 
                unliquidated, fixed, contingent, matured, 
                unmatured, disputed, undisputed, legal, 
                equitable, secured, or unsecured; or
                  (B) right to an equitable remedy for breach 
                of performance if such breach gives rise to a 
                right to payment, whether or not such right to 
                an equitable remedy is reduced to judgment, 
                fixed, contingent, matured, unmatured, 
                disputed, undisputed, secured, or unsecured.
          (6) The term ``commodity broker'' means futures 
        commission merchant, foreign futures commission 
        merchant, clearing organization, leverage transaction 
        merchant, or commodity options dealer, as defined in 
        section 761 of this title, with respect to which there 
        is a customer, as defined in section 761 of this title.
          (7) The term ``community claim'' means claim that 
        arose before the commencement of the case concerning 
        the debtor for which property of the kind specified in 
        section 541(a)(2) of this title is liable, whether or 
        not there is any such property at the time of the 
        commencement of the case.
          (7A) The term ``commercial fishing operation'' 
        means--
                  (A) the catching or harvesting of fish, 
                shrimp, lobsters, urchins, seaweed, shellfish, 
                or other aquatic species or products of such 
                species; or
                  (B) for purposes of section 109 and chapter 
                12, aquaculture activities consisting of 
                raising for market any species or product 
                described in subparagraph (A).
          (7B) The term ``commercial fishing vessel'' means a 
        vessel used by a family fisherman to carry out a 
        commercial fishing operation.
          (8) The term ``consumer debt'' means debt incurred by 
        an individual primarily for a personal, family, or 
        household purpose.
          (9) The term ``corporation''--
                  (A) includes--
                          (i) association having a power or 
                        privilege that a private corporation, 
                        but not an individual or a partnership, 
                        possesses;
                          (ii) partnership association 
                        organized under a law that makes only 
                        the capital subscribed responsible for 
                        the debts of such association;
                          (iii) joint-stock company;
                          (iv) unincorporated company or 
                        association; or
                          (v) business trust; but
                  (B) does not include limited partnership.
          (9A) The term ``covered financial corporation'' means 
        any corporation incorporated or organized under any 
        Federal or State law, other than a stockbroker, a 
        commodity broker, or an entity of the kind specified in 
        paragraph (2) or (3) of section 109(b), that is--
                  (A) a bank holding company, as defined in 
                section 2(a) of the Bank Holding Company Act of 
                1956; or
                  (B) a corporation that exists for the primary 
                purpose of owning, controlling and financing 
                its subsidiaries, that has total consolidated 
                assets of $50,000,000,000 or greater, and for 
                which, in its most recently completed fiscal 
                year--
                          (i) annual gross revenues derived by 
                        the corporation and all of its 
                        subsidiaries from activities that are 
                        financial in nature (as defined in 
                        section 4(k) of the Bank Holding 
                        Company Act of 1956) and, if 
                        applicable, from the ownership or 
                        control of one or more insured 
                        depository institutions, represents 85 
                        percent or more of the consolidated 
                        annual gross revenues of the 
                        corporation; or
                          (ii) the consolidated assets of the 
                        corporation and all of its subsidiaries 
                        related to activities that are 
                        financial in nature (as defined in 
                        section 4(k) of the Bank Holding 
                        Company Act of 1956) and, if 
                        applicable, related to the ownership or 
                        control of one or more insured 
                        depository institutions, represents 85 
                        percent or more of the consolidated 
                        assets of the corporation.
          (10) The term ``creditor'' means--
                  (A) entity that has a claim against the 
                debtor that arose at the time of or before the 
                order for relief concerning the debtor;
                  (B) entity that has a claim against the 
                estate of a kind specified in section 348(d), 
                502(f), 502(g), 502(h) or 502(i) of this title; 
                or
                  (C) entity that has a community claim.
          (10A) The term ``current monthly income''--
                  (A) means the average monthly income from all 
                sources that the debtor receives (or in a joint 
                case the debtor and the debtor's spouse 
                receive) without regard to whether such income 
                is taxable income, derived during the 6-month 
                period ending on--
                          (i) the last day of the calendar 
                        month immediately preceding the date of 
                        the commencement of the case if the 
                        debtor files the schedule of current 
                        income required by section 
                        521(a)(1)(B)(ii); or
                          (ii) the date on which current income 
                        is determined by the court for purposes 
                        of this title if the debtor does not 
                        file the schedule of current income 
                        required by section 521(a)(1)(B)(ii); 
                        and
                  (B) includes any amount paid by any entity 
                other than the debtor (or in a joint case the 
                debtor and the debtor's spouse), on a regular 
                basis for the household expenses of the debtor 
                or the debtor's dependents (and in a joint case 
                the debtor's spouse if not otherwise a 
                dependent), but excludes benefits received 
                under the Social Security Act, payments to 
                victims of war crimes or crimes against 
                humanity on account of their status as victims 
                of such crimes, and payments to victims of 
                international terrorism (as defined in section 
                2331 of title 18) or domestic terrorism (as 
                defined in section 2331 of title 18) on account 
                of their status as victims of such terrorism.
          (11) The term ``custodian'' means--
                  (A) receiver or trustee of any of the 
                property of the debtor, appointed in a case or 
                proceeding not under this title;
                  (B) assignee under a general assignment for 
                the benefit of the debtor's creditors; or
                  (C) trustee, receiver, or agent under 
                applicable law, or under a contract, that is 
                appointed or authorized to take charge of 
                property of the debtor for the purpose of 
                enforcing a lien against such property, or for 
                the purpose of general administration of such 
                property for the benefit of the debtor's 
                creditors.
          (12) The term ``debt'' means liability on a claim.
          (12A) The term ``debt relief agency'' means any 
        person who provides any bankruptcy assistance to an 
        assisted person in return for the payment of money or 
        other valuable consideration, or who is a bankruptcy 
        petition preparer under section 110, but does not 
        include--
                  (A) any person who is an officer, director, 
                employee, or agent of a person who provides 
                such assistance or of the bankruptcy petition 
                preparer;
                  (B) a nonprofit organization that is exempt 
                from taxation under section 501(c)(3) of the 
                Internal Revenue Code of 1986;
                  (C) a creditor of such assisted person, to 
                the extent that the creditor is assisting such 
                assisted person to restructure any debt owed by 
                such assisted person to the creditor;
                  (D) a depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act) 
                or any Federal credit union or State credit 
                union (as those terms are defined in section 
                101 of the Federal Credit Union Act), or any 
                affiliate or subsidiary of such depository 
                institution or credit union; or
                  (E) an author, publisher, distributor, or 
                seller of works subject to copyright protection 
                under title 17, when acting in such capacity.
          (13) The term ``debtor'' means person or municipality 
        concerning which a case under this title has been 
        commenced.
          (13A) The term ``debtor's principal residence''--
                  (A) means a residential structure if used as 
                the principal residence by the debtor, 
                including incidental property, without regard 
                to whether that structure is attached to real 
                property; and
                  (B) includes an individual condominium or 
                cooperative unit, a mobile or manufactured 
                home, or trailer if used as the principal 
                residence by the debtor.
          (14) The term ``disinterested person'' means a person 
        that--
                  (A) is not a creditor, an equity security 
                holder, or an insider;
                  (B) is not and was not, within 2 years before 
                the date of the filing of the petition, a 
                director, officer, or employee of the debtor; 
                and
                  (C) does not have an interest materially 
                adverse to the interest of the estate or of any 
                class of creditors or equity security holders, 
                by reason of any direct or indirect 
                relationship to, connection with, or interest 
                in, the debtor, or for any other reason.
          (14A) The term ``domestic support obligation'' means 
        a debt that accrues before, on, or after the date of 
        the order for relief in a case under this title, 
        including interest that accrues on that debt as 
        provided under applicable nonbankruptcy law 
        notwithstanding any other provision of this title, that 
        is--
                  (A) owed to or recoverable by--
                          (i) a spouse, former spouse, or child 
                        of the debtor or such child's parent, 
                        legal guardian, or responsible 
                        relative; or
                          (ii) a governmental unit;
                  (B) in the nature of alimony, maintenance, or 
                support (including assistance provided by a 
                governmental unit) of such spouse, former 
                spouse, or child of the debtor or such child's 
                parent, without regard to whether such debt is 
                expressly so designated;
                  (C) established or subject to establishment 
                before, on, or after the date of the order for 
                relief in a case under this title, by reason of 
                applicable provisions of--
                          (i) a separation agreement, divorce 
                        decree, or property settlement 
                        agreement;
                          (ii) an order of a court of record; 
                        or
                          (iii) a determination made in 
                        accordance with applicable 
                        nonbankruptcy law by a governmental 
                        unit; and
                  (D) not assigned to a nongovernmental entity, 
                unless that obligation is assigned voluntarily 
                by the spouse, former spouse, child of the 
                debtor, or such child's parent, legal guardian, 
                or responsible relative for the purpose of 
                collecting the debt.
          (15) The term ``entity'' includes person, estate, 
        trust, governmental unit, and United States trustee.
          (16) The term ``equity security'' means--
                  (A) share in a corporation, whether or not 
                transferable or denominated ``stock'', or 
                similar security;
                  (B) interest of a limited partner in a 
                limited partnership; or
                  (C) warrant or right, other than a right to 
                convert, to purchase, sell, or subscribe to a 
                share, security, or interest of a kind 
                specified in subparagraph (A) or (B) of this 
                paragraph.
          (17) The term ``equity security holder'' means holder 
        of an equity security of the debtor.
          (18) The term ``family farmer'' means--
                  (A) individual or individual and spouse 
                engaged in a farming operation whose aggregate 
                debts do not exceed $3,237,000 and not less 
                than 50 percent of whose aggregate 
                noncontingent, liquidated debts (excluding a 
                debt for the principal residence of such 
                individual or such individual and spouse unless 
                such debt arises out of a farming operation), 
                on the date the case is filed, arise out of a 
                farming operation owned or operated by such 
                individual or such individual and spouse, and 
                such individual or such individual and spouse 
                receive from such farming operation more than 
                50 percent of such individual's or such 
                individual and spouse's gross income for--
                          (i) the taxable year preceding; or
                          (ii) each of the 2d and 3d taxable 
                        years preceding;
                the taxable year in which the case concerning 
                such individual or such individual and spouse 
                was filed; or
                  (B) corporation or partnership in which more 
                than 50 percent of the outstanding stock or 
                equity is held by one family, or by one family 
                and the relatives of the members of such 
                family, and such family or such relatives 
                conduct the farming operation, and
                          (i) more than 80 percent of the value 
                        of its assets consists of assets 
                        related to the farming operation;
                          (ii) its aggregate debts do not 
                        exceed $3,237,000 and not less than 50 
                        percent of its aggregate noncontingent, 
                        liquidated debts (excluding a debt for 
                        one dwelling which is owned by such 
                        corporation or partnership and which a 
                        shareholder or partner maintains as a 
                        principal residence, unless such debt 
                        arises out of a farming operation), on 
                        the date the case is filed, arise out 
                        of the farming operation owned or 
                        operated by such corporation or such 
                        partnership; and
                          (iii) if such corporation issues 
                        stock, such stock is not publicly 
                        traded.
          (19) The term ``family farmer with regular annual 
        income'' means family farmer whose annual income is 
        sufficiently stable and regular to enable such family 
        farmer to make payments under a plan under chapter 12 
        of this title.
          (19A) The term ``family fisherman'' means--
                  (A) an individual or individual and spouse 
                engaged in a commercial fishing operation--
                          (i) whose aggregate debts do not 
                        exceed $1,500,000 and not less than 80 
                        percent of whose aggregate 
                        noncontingent, liquidated debts 
                        (excluding a debt for the principal 
                        residence of such individual or such 
                        individual and spouse, unless such debt 
                        arises out of a commercial fishing 
                        operation), on the date the case is 
                        filed, arise out of a commercial 
                        fishing operation owned or operated by 
                        such individual or such individual and 
                        spouse; and
                          (ii) who receive from such commercial 
                        fishing operation more than 50 percent 
                        of such individual's or such 
                        individual's and spouse's gross income 
                        for the taxable year preceding the 
                        taxable year in which the case 
                        concerning such individual or such 
                        individual and spouse was filed; or
                  (B) a corporation or partnership--
                          (i) in which more than 50 percent of 
                        the outstanding stock or equity is held 
                        by--
                                  (I) 1 family that conducts 
                                the commercial fishing 
                                operation; or
                                  (II) 1 family and the 
                                relatives of the members of 
                                such family, and such family or 
                                such relatives conduct the 
                                commercial fishing operation; 
                                and
                          (ii)(I) more than 80 percent of the 
                        value of its assets consists of assets 
                        related to the commercial fishing 
                        operation;
                          (II) its aggregate debts do not 
                        exceed $1,500,000 and not less than 80 
                        percent of its aggregate noncontingent, 
                        liquidated debts (excluding a debt for 
                        1 dwelling which is owned by such 
                        corporation or partnership and which a 
                        shareholder or partner maintains as a 
                        principal residence, unless such debt 
                        arises out of a commercial fishing 
                        operation), on the date the case is 
                        filed, arise out of a commercial 
                        fishing operation owned or operated by 
                        such corporation or such partnership; 
                        and
                          (III) if such corporation issues 
                        stock, such stock is not publicly 
                        traded.
          (19B) The term ``family fisherman with regular annual 
        income'' means a family fisherman whose annual income 
        is sufficiently stable and regular to enable such 
        family fisherman to make payments under a plan under 
        chapter 12 of this title.
          (20) The term ``farmer'' means (except when such term 
        appears in the term ``family farmer'') person that 
        received more than 80 percent of such person's gross 
        income during the taxable year of such person 
        immediately preceding the taxable year of such person 
        during which the case under this title concerning such 
        person was commenced from a farming operation owned or 
        operated by such person.
          (21) The term ``farming operation'' includes farming, 
        tillage of the soil, dairy farming, ranching, 
        production or raising of crops, poultry, or livestock, 
        and production of poultry or livestock products in an 
        unmanufactured state.
          (21A) The term ``farmout agreement'' means a written 
        agreement in which--
                  (A) the owner of a right to drill, produce, 
                or operate liquid or gaseous hydrocarbons on 
                property agrees or has agreed to transfer or 
                assign all or a part of such right to another 
                entity; and
                  (B) such other entity (either directly or 
                through its agents or its assigns), as 
                consideration, agrees to perform drilling, 
                reworking, recompleting, testing, or similar or 
                related operations, to develop or produce 
                liquid or gaseous hydrocarbons on the property.
          (21B) The term ``Federal depository institutions 
        regulatory agency'' means--
                  (A) with respect to an insured depository 
                institution (as defined in section 3(c)(2) of 
                the Federal Deposit Insurance Act) for which no 
                conservator or receiver has been appointed, the 
                appropriate Federal banking agency (as defined 
                in section 3(q) of such Act);
                  (B) with respect to an insured credit union 
                (including an insured credit union for which 
                the National Credit Union Administration has 
                been appointed conservator or liquidating 
                agent), the National Credit Union 
                Administration;
                  (C) with respect to any insured depository 
                institution for which the Resolution Trust 
                Corporation has been appointed conservator or 
                receiver, the Resolution Trust Corporation; and
                  (D) with respect to any insured depository 
                institution for which the Federal Deposit 
                Insurance Corporation has been appointed 
                conservator or receiver, the Federal Deposit 
                Insurance Corporation.
          (22) The term ``financial institution'' means--
                  (A) a Federal reserve bank, or an entity that 
                is a commercial or savings bank, industrial 
                savings bank, savings and loan association, 
                trust company, federally-insured credit union, 
                or receiver, liquidating agent, or conservator 
                for such entity and, when any such Federal 
                reserve bank, receiver, liquidating agent, 
                conservator or entity is acting as agent or 
                custodian for a customer (whether or not a 
                ``customer'', as defined in section 741) in 
                connection with a securities contract (as 
                defined in section 741) such customer; or
                  (B) in connection with a securities contract 
                (as defined in section 741) an investment 
                company registered under the Investment Company 
                Act of 1940.
          (22A) The term ``financial participant'' means--
                  (A) an entity that, at the time it enters 
                into a securities contract, commodity contract, 
                swap agreement, repurchase agreement, or 
                forward contract, or at the time of the date of 
                the filing of the petition, has one or more 
                agreements or transactions described in 
                paragraph (1), (2), (3), (4), (5), or (6) of 
                section 561(a) with the debtor or any other 
                entity (other than an affiliate) of a total 
                gross dollar value of not less than 
                $1,000,000,000 in notional or actual principal 
                amount outstanding (aggregated across 
                counterparties) at such time or on any day 
                during the 15-month period preceding the date 
                of the filing of the petition, or has gross 
                mark-to-market positions of not less than 
                $100,000,000 (aggregated across counterparties) 
                in one or more such agreements or transactions 
                with the debtor or any other entity (other than 
                an affiliate) at such time or on any day during 
                the 15-month period preceding the date of the 
                filing of the petition; or
                  (B) a clearing organization (as defined in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991).
          (23) The term ``foreign proceeding'' means a 
        collective judicial or administrative proceeding in a 
        foreign country, including an interim proceeding, under 
        a law relating to insolvency or adjustment of debt in 
        which proceeding the assets and affairs of the debtor 
        are subject to control or supervision by a foreign 
        court, for the purpose of reorganization or 
        liquidation.
          (24) The term ``foreign representative'' means a 
        person or body, including a person or body appointed on 
        an interim basis, authorized in a foreign proceeding to 
        administer the reorganization or the liquidation of the 
        debtor's assets or affairs or to act as a 
        representative of such foreign proceeding.
          (25) The term ``forward contract'' means--
                  (A) a contract (other than a commodity 
                contract, as defined in section 761) for the 
                purchase, sale, or transfer of a commodity, as 
                defined in section 761(8) of this title, or any 
                similar good, article, service, right, or 
                interest which is presently or in the future 
                becomes the subject of dealing in the forward 
                contract trade, or product or byproduct 
                thereof, with a maturity date more than two 
                days after the date the contract is entered 
                into, including, but not limited to, a 
                repurchase or reverse repurchase transaction 
                (whether or not such repurchase or reverse 
                repurchase transaction is a ``repurchase 
                agreement'', as defined in this section) 
                consignment, lease, swap, hedge transaction, 
                deposit, loan, option, allocated transaction, 
                unallocated transaction, or any other similar 
                agreement;
                  (B) any combination of agreements or 
                transactions referred to in subparagraphs (A) 
                and (C);
                  (C) any option to enter into an agreement or 
                transaction referred to in subparagraph (A) or 
                (B);
                  (D) a master agreement that provides for an 
                agreement or transaction referred to in 
                subparagraph (A), (B), or (C), together with 
                all supplements to any such master agreement, 
                without regard to whether such master agreement 
                provides for an agreement or transaction that 
                is not a forward contract under this paragraph, 
                except that such master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement 
                or transaction under such master agreement that 
                is referred to in subparagraph (A), (B), or 
                (C); or
                  (E) any security agreement or arrangement, or 
                other credit enhancement related to any 
                agreement or transaction referred to in 
                subparagraph (A), (B), (C), or (D), including 
                any guarantee or reimbursement obligation by or 
                to a forward contract merchant or financial 
                participant in connection with any agreement or 
                transaction referred to in any such 
                subparagraph, but not to exceed the damages in 
                connection with any such agreement or 
                transaction, measured in accordance with 
                section 562.
          (26) The term ``forward contract merchant'' means a 
        Federal reserve bank, or an entity the business of 
        which consists in whole or in part of entering into 
        forward contracts as or with merchants in a commodity 
        (as defined in section 761) or any similar good, 
        article, service, right, or interest which is presently 
        or in the future becomes the subject of dealing in the 
        forward contract trade.
          (27) The term ``governmental unit'' means United 
        States; State; Commonwealth; District; Territory; 
        municipality; foreign state; department, agency, or 
        instrumentality of the United States (but not a United 
        States trustee while serving as a trustee in a case 
        under this title), a State, a Commonwealth, a District, 
        a Territory, a municipality, or a foreign state; or 
        other foreign or domestic government.
          (27A) The term ``health care business''--
                  (A) means any public or private entity 
                (without regard to whether that entity is 
                organized for profit or not for profit) that is 
                primarily engaged in offering to the general 
                public facilities and services for--
                          (i) the diagnosis or treatment of 
                        injury, deformity, or disease; and
                          (ii) surgical, drug treatment, 
                        psychiatric, or obstetric care; and
                  (B) includes--
                          (i) any--
                                  (I) general or specialized 
                                hospital;
                                  (II) ancillary ambulatory, 
                                emergency, or surgical 
                                treatment facility;
                                  (III) hospice;
                                  (IV) home health agency; and
                                  (V) other health care 
                                institution that is similar to 
                                an entity referred to in 
                                subclause (I), (II), (III), or 
                                (IV); and
                          (ii) any long-term care facility, 
                        including any--
                                  (I) skilled nursing facility;
                                  (II) intermediate care 
                                facility;
                                  (III) assisted living 
                                facility;
                                  (IV) home for the aged;
                                  (V) domiciliary care 
                                facility; and
                                  (VI) health care institution 
                                that is related to a facility 
                                referred to in subclause (I), 
                                (II), (III), (IV), or (V), if 
                                that institution is primarily 
                                engaged in offering room, 
                                board, laundry, or personal 
                                assistance with activities of 
                                daily living and incidentals to 
                                activities of daily living.
          (27B) The term ``incidental property'' means, with 
        respect to a debtor's principal residence--
                  (A) property commonly conveyed with a 
                principal residence in the area where the real 
                property is located;
                  (B) all easements, rights, appurtenances, 
                fixtures, rents, royalties, mineral rights, oil 
                or gas rights or profits, water rights, escrow 
                funds, or insurance proceeds; and
                  (C) all replacements or additions.
          (28) The term ``indenture'' means mortgage, deed of 
        trust, or indenture, under which there is outstanding a 
        security, other than a voting-trust certificate, 
        constituting a claim against the debtor, a claim 
        secured by a lien on any of the debtor's property, or 
        an equity security of the debtor.
          (29) The term ``indenture trustee'' means trustee 
        under an indenture.
          (30) The term ``individual with regular income'' 
        means individual whose income is sufficiently stable 
        and regular to enable such individual to make payments 
        under a plan under chapter 13 of this title, other than 
        a stockbroker or a commodity broker.
          (31) The term ``insider'' includes--
                  (A) if the debtor is an individual--
                          (i) relative of the debtor or of a 
                        general partner of the debtor;
                          (ii) partnership in which the debtor 
                        is a general partner;
                          (iii) general partner of the debtor; 
                        or
                          (iv) corporation of which the debtor 
                        is a director, officer, or person in 
                        control;
                  (B) if the debtor is a corporation--
                          (i) director of the debtor;
                          (ii) officer of the debtor;
                          (iii) person in control of the 
                        debtor;
                          (iv) partnership in which the debtor 
                        is a general partner;
                          (v) general partner of the debtor; or
                          (vi) relative of a general partner, 
                        director, officer, or person in control 
                        of the debtor;
                  (C) if the debtor is a partnership--
                          (i) general partner in the debtor;
                          (ii) relative of a general partner 
                        in, general partner of, or person in 
                        control of the debtor;
                          (iii) partnership in which the debtor 
                        is a general partner;
                          (iv) general partner of the debtor; 
                        or
                          (v) person in control of the debtor;
                  (D) if the debtor is a municipality, elected 
                official of the debtor or relative of an 
                elected official of the debtor;
                  (E) affiliate, or insider of an affiliate as 
                if such affiliate were the debtor; and
                  (F) managing agent of the debtor.
          (32) The term ``insolvent'' means--
                  (A) with reference to an entity other than a 
                partnership and a municipality, financial 
                condition such that the sum of such entity's 
                debts is greater than all of such entity's 
                property, at a fair valuation, exclusive of--
                          (i) property transferred, concealed, 
                        or removed with intent to hinder, 
                        delay, or defraud such entity's 
                        creditors; and
                          (ii) property that may be exempted 
                        from property of the estate under 
                        section 522 of this title;
                  (B) with reference to a partnership, 
                financial condition such that the sum of such 
                partnership's debts is greater than the 
                aggregate of, at a fair valuation--
                          (i) all of such partnership's 
                        property, exclusive of property of the 
                        kind specified in subparagraph (A)(i) 
                        of this paragraph; and
                          (ii) the sum of the excess of the 
                        value of each general partner's 
                        nonpartnership property, exclusive of 
                        property of the kind specified in 
                        subparagraph (A) of this paragraph, 
                        over such partner's nonpartnership 
                        debts; and
                  (C) with reference to a municipality, 
                financial condition such that the municipality 
                is--
                          (i) generally not paying its debts as 
                        they become due unless such debts are 
                        the subject of a bona fide dispute; or
                          (ii) unable to pay its debts as they 
                        become due.
          (33) The term ``institution-affiliated party''--
                  (A) with respect to an insured depository 
                institution (as defined in section 3(c)(2) of 
                the Federal Deposit Insurance Act), has the 
                meaning given it in section 3(u) of the Federal 
                Deposit Insurance Act; and
                  (B) with respect to an insured credit union, 
                has the meaning given it in section 206(r) of 
                the Federal Credit Union Act.
          (34) The term ``insured credit union'' has the 
        meaning given it in section 101(7) of the Federal 
        Credit Union Act.
          (35) The term ``insured depository institution''--
                  (A) has the meaning given it in section 
                3(c)(2) of the Federal Deposit Insurance Act; 
                and
                  (B) includes an insured credit union (except 
                in the case of paragraphs (21B) and (33)(A) of 
                this subsection).
          (35A) The term ``intellectual property'' means--
                  (A) trade secret;
                  (B) invention, process, design, or plant 
                protected under title 35;
                  (C) patent application;
                  (D) plant variety;
                  (E) work of authorship protected under title 
                17; or
                  (F) mask work protected under chapter 9 of 
                title 17;
        to the extent protected by applicable nonbankruptcy 
        law.
          (36) The term ``judicial lien'' means lien obtained 
        by judgment, levy, sequestration, or other legal or 
        equitable process or proceeding.
          (37) The term ``lien'' means charge against or 
        interest in property to secure payment of a debt or 
        performance of an obligation.
          (38) The term ``margin payment'' means, for purposes 
        of the forward contract provisions of this title, 
        payment or deposit of cash, a security or other 
        property, that is commonly known in the forward 
        contract trade as original margin, initial margin, 
        maintenance margin, or variation margin, including 
        mark-to-market payments, or variation payments.
          (38A) The term ``master netting agreement''--
                  (A) means an agreement providing for the 
                exercise of rights, including rights of 
                netting, setoff, liquidation, termination, 
                acceleration, or close out, under or in 
                connection with one or more contracts that are 
                described in any one or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit 
                enhancement related to one or more of the 
                foregoing, including any guarantee or 
                reimbursement obligation related to 1 or more 
                of the foregoing; and
                  (B) if the agreement contains provisions 
                relating to agreements or transactions that are 
                not contracts described in paragraphs (1) 
                through (5) of section 561(a), shall be deemed 
                to be a master netting agreement only with 
                respect to those agreements or transactions 
                that are described in any one or more of 
                paragraphs (1) through (5) of section 561(a).
          (38B) The term ``master netting agreement 
        participant'' means an entity that, at any time before 
        the date of the filing of the petition, is a party to 
        an outstanding master netting agreement with the 
        debtor.
          (39) The term ``mask work'' has the meaning given it 
        in section 901(a)(2) of title 17.
          (39A) The term ``median family income'' means for any 
        year--
                  (A) the median family income both calculated 
                and reported by the Bureau of the Census in the 
                then most recent year; and
                  (B) if not so calculated and reported in the 
                then current year, adjusted annually after such 
                most recent year until the next year in which 
                median family income is both calculated and 
                reported by the Bureau of the Census, to 
                reflect the percentage change in the Consumer 
                Price Index for All Urban Consumers during the 
                period of years occurring after such most 
                recent year and before such current year.
          (40) The term ``municipality'' means political 
        subdivision or public agency or instrumentality of a 
        State.
          (40A) The term ``patient'' means any individual who 
        obtains or receives services from a health care 
        business.
          (40B) The term ``patient records'' means any record 
        relating to a patient, including a written document or 
        a record recorded in a magnetic, optical, or other form 
        of electronic medium.
          (41) The term ``person'' includes individual, 
        partnership, and corporation, but does not include 
        governmental unit, except that a governmental unit 
        that--
                  (A) acquires an asset from a person--
                          (i) as a result of the operation of a 
                        loan guarantee agreement; or
                          (ii) as receiver or liquidating agent 
                        of a person;
                  (B) is a guarantor of a pension benefit 
                payable by or on behalf of the debtor or an 
                affiliate of the debtor; or
                  (C) is the legal or beneficial owner of an 
                asset of--
                          (i) an employee pension benefit plan 
                        that is a governmental plan, as defined 
                        in section 414(d) of the Internal 
                        Revenue Code of 1986; or
                          (ii) an eligible deferred 
                        compensation plan, as defined in 
                        section 457(b) of the Internal Revenue 
                        Code of 1986;
        shall be considered, for purposes of section 1102 of 
        this title, to be a person with respect to such asset 
        or such benefit.
          (41A) The term ``personally identifiable 
        information'' means--
                  (A) if provided by an individual to the 
                debtor in connection with obtaining a product 
                or a service from the debtor primarily for 
                personal, family, or household purposes--
                          (i) the first name (or initial) and 
                        last name of such individual, whether 
                        given at birth or time of adoption, or 
                        resulting from a lawful change of name;
                          (ii) the geographical address of a 
                        physical place of residence of such 
                        individual;
                          (iii) an electronic address 
                        (including an e-mail address) of such 
                        individual;
                          (iv) a telephone number dedicated to 
                        contacting such individual at such 
                        physical place of residence;
                          (v) a social security account number 
                        issued to such individual; or
                          (vi) the account number of a credit 
                        card issued to such individual; or
                  (B) if identified in connection with 1 or 
                more of the items of information specified in 
                subparagraph (A)--
                          (i) a birth date, the number of a 
                        certificate of birth or adoption, or a 
                        place of birth; or
                          (ii) any other information concerning 
                        an identified individual that, if 
                        disclosed, will result in contacting or 
                        identifying such individual physically 
                        or electronically.
          (42) The term ``petition'' means petition filed under 
        section 301, 302, 303 and 1504 of this title, as the 
        case may be, commencing a case under this title.
          (42A) The term ``production payment'' means a term 
        overriding royalty satisfiable in cash or in kind--
                  (A) contingent on the production of a liquid 
                or gaseous hydrocarbon from particular real 
                property; and
                  (B) from a specified volume, or a specified 
                value, from the liquid or gaseous hydrocarbon 
                produced from such property, and determined 
                without regard to production costs.
          (43) The term ``purchaser'' means transferee of a 
        voluntary transfer, and includes immediate or mediate 
        transferee of such a transferee.
          (44) The term ``railroad'' means common carrier by 
        railroad engaged in the transportation of individuals 
        or property or owner of trackage facilities leased by 
        such a common carrier.
          (45) The term ``relative'' means individual related 
        by affinity or consanguinity within the third degree as 
        determined by the common law, or individual in a step 
        or adoptive relationship within such third degree.
          (46) The term ``repo participant'' means an entity 
        that, at any time before the filing of the petition, 
        has an outstanding repurchase agreement with the 
        debtor.
          (47) The term ``repurchase agreement'' (which 
        definition also applies to a reverse repurchase 
        agreement)--
                  (A) means--
                          (i) an agreement, including related 
                        terms, which provides for the transfer 
                        of one or more certificates of deposit, 
                        mortgage related securities (as defined 
                        in section 3 of the Securities Exchange 
                        Act of 1934), mortgage loans, interests 
                        in mortgage related securities or 
                        mortgage loans, eligible bankers' 
                        acceptances, qualified foreign 
                        government securities (defined as a 
                        security that is a direct obligation 
                        of, or that is fully guaranteed by, the 
                        central government of a member of the 
                        Organization for Economic Cooperation 
                        and Development), or securities that 
                        are direct obligations of, or that are 
                        fully guaranteed by, the United States 
                        or any agency of the United States 
                        against the transfer of funds by the 
                        transferee of such certificates of 
                        deposit, eligible bankers' acceptances, 
                        securities, mortgage loans, or 
                        interests, with a simultaneous 
                        agreement by such transferee to 
                        transfer to the transferor thereof 
                        certificates of deposit, eligible 
                        bankers' acceptance, securities, 
                        mortgage loans, or interests of the 
                        kind described in this clause, at a 
                        date certain not later than 1 year 
                        after such transfer or on demand, 
                        against the transfer of funds;
                          (ii) any combination of agreements or 
                        transactions referred to in clauses (i) 
                        and (iii);
                          (iii) an option to enter into an 
                        agreement or transaction referred to in 
                        clause (i) or (ii);
                          (iv) a master agreement that provides 
                        for an agreement or transaction 
                        referred to in clause (i), (ii), or 
                        (iii), together with all supplements to 
                        any such master agreement, without 
                        regard to whether such master agreement 
                        provides for an agreement or 
                        transaction that is not a repurchase 
                        agreement under this paragraph, except 
                        that such master agreement shall be 
                        considered to be a repurchase agreement 
                        under this paragraph only with respect 
                        to each agreement or transaction under 
                        the master agreement that is referred 
                        to in clause (i), (ii), or (iii); or
                          (v) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreement or transaction 
                        referred to in clause (i), (ii), (iii), 
                        or (iv), including any guarantee or 
                        reimbursement obligation by or to a 
                        repo participant or financial 
                        participant in connection with any 
                        agreement or transaction referred to in 
                        any such clause, but not to exceed the 
                        damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this 
                        title; and
                  (B) does not include a repurchase obligation 
                under a participation in a commercial mortgage 
                loan.
          (48) The term ``securities clearing agency'' means 
        person that is registered as a clearing agency under 
        section 17A of the Securities Exchange Act of 1934, or 
        exempt from such registration under such section 
        pursuant to an order of the Securities and Exchange 
        Commission, or whose business is confined to the 
        performance of functions of a clearing agency with 
        respect to exempted securities, as defined in section 
        3(a)(12) of such Act for the purposes of such section 
        17A.
          (48A) The term ``securities self regulatory 
        organization'' means either a securities association 
        registered with the Securities and Exchange Commission 
        under section 15A of the Securities Exchange Act of 
        1934 or a national securities exchange registered with 
        the Securities and Exchange Commission under section 6 
        of the Securities Exchange Act of 1934.
          (49) The term ``security''--
                  (A) includes--
                          (i) note;
                          (ii) stock;
                          (iii) treasury stock;
                          (iv) bond;
                          (v) debenture;
                          (vi) collateral trust certificate;
                          (vii) pre-organization certificate or 
                        subscription;
                          (viii) transferable share;
                          (ix) voting-trust certificate;
                          (x) certificate of deposit;
                          (xi) certificate of deposit for 
                        security;
                          (xii) investment contract or 
                        certificate of interest or 
                        participation in a profit-sharing 
                        agreement or in an oil, gas, or mineral 
                        royalty or lease, if such contract or 
                        interest is required to be the subject 
                        of a registration statement filed with 
                        the Securities and Exchange Commission 
                        under the provisions of the Securities 
                        Act of 1933, or is exempt under section 
                        3(b) of such Act from the requirement 
                        to file such a statement;
                          (xiii) interest of a limited partner 
                        in a limited partnership;
                          (xiv) other claim or interest 
                        commonly known as ``security''; and
                          (xv) certificate of interest or 
                        participation in, temporary or interim 
                        certificate for, receipt for, or 
                        warrant or right to subscribe to or 
                        purchase or sell, a security; but
                  (B) does not include--
                          (i) currency, check, draft, bill of 
                        exchange, or bank letter of credit;
                          (ii) leverage transaction, as defined 
                        in section 761 of this title;
                          (iii) commodity futures contract or 
                        forward contract;
                          (iv) option, warrant, or right to 
                        subscribe to or purchase or sell a 
                        commodity futures contract;
                          (v) option to purchase or sell a 
                        commodity;
                          (vi) contract or certificate of a 
                        kind specified in subparagraph (A)(xii) 
                        of this paragraph that is not required 
                        to be the subject of a registration 
                        statement filed with the Securities and 
                        Exchange Commission and is not exempt 
                        under section 3(b) of the Securities 
                        Act of 1933 from the requirement to 
                        file such a statement; or
                          (vii) debt or evidence of 
                        indebtedness for goods sold and 
                        delivered or services rendered.
          (50) The term ``security agreement'' means agreement 
        that creates or provides for a security interest.
          (51) The term ``security interest'' means lien 
        created by an agreement.
          (51A) The term ``settlement payment'' means, for 
        purposes of the forward contract provisions of this 
        title, a preliminary settlement payment, a partial 
        settlement payment, an interim settlement payment, a 
        settlement payment on account, a final settlement 
        payment, a net settlement payment, or any other similar 
        payment commonly used in the forward contract trade.
          (51B) The term ``single asset real estate'' means 
        real property constituting a single property or 
        project, other than residential real property with 
        fewer than 4 residential units, which generates 
        substantially all of the gross income of a debtor who 
        is not a family farmer and on which no substantial 
        business is being conducted by a debtor other than the 
        business of operating the real property and activities 
        incidental thereto.
          (51C) The term ``small business case'' means a case 
        filed under chapter 11 of this title in which the 
        debtor is a small business debtor.
          (51D) The term ``small business debtor''--
                  (A) subject to subparagraph (B), means a 
                person engaged in commercial or business 
                activities (including any affiliate of such 
                person that is also a debtor under this title 
                and excluding a person whose primary activity 
                is the business of owning or operating real 
                property or activities incidental thereto) that 
                has aggregate noncontingent liquidated secured 
                and unsecured debts as of the date of the 
                filing of the petition or the date of the order 
                for relief in an amount not more than 
                $2,000,000 (excluding debts owed to 1 or more 
                affiliates or insiders) for a case in which the 
                United States trustee has not appointed under 
                section 1102(a)(1) a committee of unsecured 
                creditors or where the court has determined 
                that the committee of unsecured creditors is 
                not sufficiently active and representative to 
                provide effective oversight of the debtor; and
                  (B) does not include any member of a group of 
                affiliated debtors that has aggregate 
                noncontingent liquidated secured and unsecured 
                debts in an amount greater than $2,000,000 
                (excluding debt owed to 1 or more affiliates or 
                insiders).
          (52) The term ``State'' includes the District of 
        Columbia and Puerto Rico, except for the purpose of 
        defining who may be a debtor under chapter 9 of this 
        title.
          (53) The term ``statutory lien'' means lien arising 
        solely by force of a statute on specified circumstances 
        or conditions, or lien of distress for rent, whether or 
        not statutory, but does not include security interest 
        or judicial lien, whether or not such interest or lien 
        is provided by or is dependent on a statute and whether 
        or not such interest or lien is made fully effective by 
        statute.
          (53A) The term ``stockbroker'' means person--
                  (A) with respect to which there is a 
                customer, as defined in section 741 of this 
                title; and
                  (B) that is engaged in the business of 
                effecting transactions in securities--
                          (i) for the account of others; or
                          (ii) with members of the general 
                        public, from or for such person's own 
                        account.
          (53B) The term ``swap agreement''--
                  (A) means--
                          (i) any agreement, including the 
                        terms and conditions incorporated by 
                        reference in such agreement, which is--
                                  (I) an interest rate swap, 
                                option, future, or forward 
                                agreement, including a rate 
                                floor, rate cap, rate collar, 
                                cross-currency rate swap, and 
                                basis swap;
                                  (II) a spot, same day-
                                tomorrow, tomorrow-next, 
                                forward, or other foreign 
                                exchange, precious metals, or 
                                other commodity agreement;
                                  (III) a currency swap, 
                                option, future, or forward 
                                agreement;
                                  (IV) an equity index or 
                                equity swap, option, future, or 
                                forward agreement;
                                  (V) a debt index or debt 
                                swap, option, future, or 
                                forward agreement;
                                  (VI) a total return, credit 
                                spread or credit swap, option, 
                                future, or forward agreement;
                                  (VII) a commodity index or a 
                                commodity swap, option, future, 
                                or forward agreement;
                                  (VIII) a weather swap, 
                                option, future, or forward 
                                agreement;
                                  (IX) an emissions swap, 
                                option, future, or forward 
                                agreement; or
                                  (X) an inflation swap, 
                                option, future, or forward 
                                agreement;
                          (ii) any agreement or transaction 
                        that is similar to any other agreement 
                        or transaction referred to in this 
                        paragraph and that--
                                  (I) is of a type that has 
                                been, is presently, or in the 
                                future becomes, the subject of 
                                recurrent dealings in the swap 
                                or other derivatives markets 
                                (including terms and conditions 
                                incorporated by reference 
                                therein); and
                                  (II) is a forward, swap, 
                                future, option, or spot 
                                transaction on one or more 
                                rates, currencies, commodities, 
                                equity securities, or other 
                                equity instruments, debt 
                                securities or other debt 
                                instruments, quantitative 
                                measures associated with an 
                                occurrence, extent of an 
                                occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic 
                                consequence, or economic or 
                                financial indices or measures 
                                of economic or financial risk 
                                or value;
                          (iii) any combination of agreements 
                        or transactions referred to in this 
                        subparagraph;
                          (iv) any option to enter into an 
                        agreement or transaction referred to in 
                        this subparagraph;
                          (v) a master agreement that provides 
                        for an agreement or transaction 
                        referred to in clause (i), (ii), (iii), 
                        or (iv), together with all supplements 
                        to any such master agreement, and 
                        without regard to whether the master 
                        agreement contains an agreement or 
                        transaction that is not a swap 
                        agreement under this paragraph, except 
                        that the master agreement shall be 
                        considered to be a swap agreement under 
                        this paragraph only with respect to 
                        each agreement or transaction under the 
                        master agreement that is referred to in 
                        clause (i), (ii), (iii), or (iv); or
                          (vi) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreements or 
                        transactions referred to in clause (i) 
                        through (v), including any guarantee or 
                        reimbursement obligation by or to a 
                        swap participant or financial 
                        participant in connection with any 
                        agreement or transaction referred to in 
                        any such clause, but not to exceed the 
                        damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562; and
                  (B) is applicable for purposes of this title 
                only, and shall not be construed or applied so 
                as to challenge or affect the characterization, 
                definition, or treatment of any swap agreement 
                under any other statute, regulation, or rule, 
                including the Gramm-Leach-Bliley Act, the Legal 
                Certainty for Bank Products Act of 2000, the 
                securities laws (as such term is defined in 
                section 3(a)(47) of the Securities Exchange Act 
                of 1934) and the Commodity Exchange Act.
          (53C) The term ``swap participant'' means an entity 
        that, at any time before the filing of the petition, 
        has an outstanding swap agreement with the debtor.
          (56A) The term ``term overriding royalty'' means an 
        interest in liquid or gaseous hydrocarbons in place or 
        to be produced from particular real property that 
        entitles the owner thereof to a share of production, or 
        the value thereof, for a term limited by time, 
        quantity, or value realized.
          (53D) The term ``timeshare plan'' means and shall 
        include that interest purchased in any arrangement, 
        plan, scheme, or similar device, but not including 
        exchange programs, whether by membership, agreement, 
        tenancy in common, sale, lease, deed, rental agreement, 
        license, right to use agreement, or by any other means, 
        whereby a purchaser, in exchange for consideration, 
        receives a right to use accommodations, facilities, or 
        recreational sites, whether improved or unimproved, for 
        a specific period of time less than a full year during 
        any given year, but not necessarily for consecutive 
        years, and which extends for a period of more than 
        three years. A ``timeshare interest'' is that interest 
        purchased in a timeshare plan which grants the 
        purchaser the right to use and occupy accommodations, 
        facilities, or recreational sites, whether improved or 
        unimproved, pursuant to a timeshare plan.
          (54) The term ``transfer'' means--
                  (A) the creation of a lien;
                  (B) the retention of title as a security 
                interest;
                  (C) the foreclosure of a debtor's equity of 
                redemption; or
                  (D) each mode, direct or indirect, absolute 
                or conditional, voluntary or involuntary, of 
                disposing of or parting with--
                          (i) property; or
                          (ii) an interest in property.
          (54A) The term ``uninsured State member bank'' means 
        a State member bank (as defined in section 3 of the 
        Federal Deposit Insurance Act) the deposits of which 
        are not insured by the Federal Deposit Insurance 
        Corporation.
          (55) The term ``United States'', when used in a 
        geographical sense, includes all locations where the 
        judicial jurisdiction of the United States extends, 
        including territories and possessions of the United 
        States.

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Sec. 103. Applicability of chapters

  (a) Except as provided in section 1161 of this title, 
chapters 1, 3, and 5 of this title apply in a case under 
chapter 7, 11, 12, or 13 of this title, and this chapter, 
sections 307, 362(o), 555 through 557, and 559 through 562 
apply in a case under chapter 15.
  (b) Subchapters I and II of chapter 7 of this title apply 
only in a case under such chapter.
  (c) Subchapter III of chapter 7 of this title applies only in 
a case under such chapter concerning a stockbroker.
  (d) Subchapter IV of chapter 7 of this title applies only in 
a case under such chapter concerning a commodity broker.
  (e) Scope of Application.--Subchapter V of chapter 7 of this 
title shall apply only in a case under such chapter concerning 
the liquidation of an uninsured State member bank, or a 
corporation organized under section 25A of the Federal Reserve 
Act, which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991.
  (f) Except as provided in section 901 of this title, only 
chapters 1 and 9 of this title apply in a case under such 
chapter 9.
  (g) Except as provided in section 901 of this title, 
subchapters I, II, and III of chapter 11 of this title apply 
only in a case under such chapter.
  (h) Subchapter IV of chapter 11 of this title applies only in 
a case under such chapter concerning a railroad.
  (i) Chapter 13 of this title applies only in a case under 
such chapter.
  (j) Chapter 12 of this title applies only in a case under 
such chapter.
  (k) Chapter 15 applies only in a case under such chapter, 
except that--
          (1) sections 1505, 1513, and 1514 apply in all cases 
        under this title; and
          (2) section 1509 applies whether or not a case under 
        this title is pending.
  (l) Subchapter V of chapter 11 of this title applies only in 
a case under chapter 11 concerning a covered financial 
corporation.

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Sec. 109. Who may be a debtor

  (a) Notwithstanding any other provision of this section, only 
a person that resides or has a domicile, a place of business, 
or property in the United States, or a municipality, may be a 
debtor under this title.
  (b) A person may be a debtor under chapter 7 of this title 
only if such person is not--
          (1) a railroad;
          (2) a domestic insurance company, bank, savings bank, 
        cooperative bank, savings and loan association, 
        building and loan association, homestead association, a 
        New Markets Venture Capital company as defined in 
        section 351 of the Small Business Investment Act of 
        1958, a small business investment company licensed by 
        the Small Business Administration under section 301 of 
        the Small Business Investment Act of 1958, credit 
        union, or industrial bank or similar institution which 
        is an insured bank as defined in section 3(h) of the 
        Federal Deposit Insurance Act, except that an uninsured 
        State member bank, or a corporation organized under 
        section 25A of the Federal Reserve Act, which operates, 
        or operates as, a multilateral clearing organization 
        pursuant to section 409 of the Federal Deposit 
        Insurance Corporation Improvement Act of 1991 may be a 
        debtor if a petition is filed at the direction of the 
        Board of Governors of the Federal Reserve System; [or]
          (3)(A) a foreign insurance company, engaged in such 
        business in the United States; or
          (B) a foreign bank, savings bank, cooperative bank, 
        savings and loan association, building and loan 
        association, or credit union, that has a branch or 
        agency (as defined in section 1(b) of the International 
        Banking Act of 1978) in the United States[.]; or
          (4) a covered financial corporation.
  (c) An entity may be a debtor under chapter 9 of this title 
if and only if such entity--
          (1) is a municipality;
          (2) is specifically authorized, in its capacity as a 
        municipality or by name, to be a debtor under such 
        chapter by State law, or by a governmental officer or 
        organization empowered by State law to authorize such 
        entity to be a debtor under such chapter;
          (3) is insolvent;
          (4) desires to effect a plan to adjust such debts; 
        and
          (5)(A) has obtained the agreement of creditors 
        holding at least a majority in amount of the claims of 
        each class that such entity intends to impair under a 
        plan in a case under such chapter;
          (B) has negotiated in good faith with creditors and 
        has failed to obtain the agreement of creditors holding 
        at least a majority in amount of the claims of each 
        class that such entity intends to impair under a plan 
        in a case under such chapter;
          (C) is unable to negotiate with creditors because 
        such negotiation is impracticable; or
          (D) reasonably believes that a creditor may attempt 
        to obtain a transfer that is avoidable under section 
        547 of this title.
  (d) Only a railroad, a person that may be a debtor under 
chapter 7 of this title (except a stockbroker or a commodity 
broker), [and] an uninsured State member bank, [or] a 
corporation organized under section 25A of the Federal Reserve 
Act, which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991, or a covered 
financial corporation may be a debtor under chapter 11 of this 
title.
  (e) Only an individual with regular income that owes, on the 
date of the filing of the petition, noncontingent, liquidated, 
unsecured debts of less than $250,000 and noncontingent, 
liquidated, secured debts of less than $750,000, or an 
individual with regular income and such individual's spouse, 
except a stockbroker or a commodity broker, that owe, on the 
date of the filing of the petition, noncontingent, liquidated, 
unsecured debts that aggregate less than $250,000 and 
noncontingent, liquidated, secured debts of less than $750,000 
may be a debtor under chapter 13 of this title.
  (f) Only a family farmer or family fisherman with regular 
annual income may be a debtor under chapter 12 of this title.
  (g) Notwithstanding any other provision of this section, no 
individual or family farmer may be a debtor under this title 
who has been a debtor in a case pending under this title at any 
time in the preceding 180 days if--
          (1) the case was dismissed by the court for willful 
        failure of the debtor to abide by orders of the court, 
        or to appear before the court in proper prosecution of 
        the case; or
          (2) the debtor requested and obtained the voluntary 
        dismissal of the case following the filing of a request 
        for relief from the automatic stay provided by section 
        362 of this title.
  (h)(1) Subject to paragraphs (2) and (3), and notwithstanding 
any other provision of this section other than paragraph (4) of 
this subsection, an individual may not be a debtor under this 
title unless such individual has, during the 180-day period 
ending on the date of filing of the petition by such 
individual, received from an approved nonprofit budget and 
credit counseling agency described in section 111(a) an 
individual or group briefing (including a briefing conducted by 
telephone or on the Internet) that outlined the opportunities 
for available credit counseling and assisted such individual in 
performing a related budget analysis.
  (2)(A) Paragraph (1) shall not apply with respect to a debtor 
who resides in a district for which the United States trustee 
(or the bankruptcy administrator, if any) determines that the 
approved nonprofit budget and credit counseling agencies for 
such district are not reasonably able to provide adequate 
services to the additional individuals who would otherwise seek 
credit counseling from such agencies by reason of the 
requirements of paragraph (1).
  (B) The United States trustee (or the bankruptcy 
administrator, if any) who makes a determination described in 
subparagraph (A) shall review such determination not later than 
1 year after the date of such determination, and not less 
frequently than annually thereafter. Notwithstanding the 
preceding sentence, a nonprofit budget and credit counseling 
agency may be disapproved by the United States trustee (or the 
bankruptcy administrator, if any) at any time.
  (3)(A) Subject to subparagraph (B), the requirements of 
paragraph (1) shall not apply with respect to a debtor who 
submits to the court a certification that--
          (i) describes exigent circumstances that merit a 
        waiver of the requirements of paragraph (1);
          (ii) states that the debtor requested credit 
        counseling services from an approved nonprofit budget 
        and credit counseling agency, but was unable to obtain 
        the services referred to in paragraph (1) during the 7-
        day period beginning on the date on which the debtor 
        made that request; and
          (iii) is satisfactory to the court.
  (B) With respect to a debtor, an exemption under subparagraph 
(A) shall cease to apply to that debtor on the date on which 
the debtor meets the requirements of paragraph (1), but in no 
case may the exemption apply to that debtor after the date that 
is 30 days after the debtor files a petition, except that the 
court, for cause, may order an additional 15 days.
  (4) The requirements of paragraph (1) shall not apply with 
respect to a debtor whom the court determines, after notice and 
hearing, is unable to complete those requirements because of 
incapacity, disability, or active military duty in a military 
combat zone. For the purposes of this paragraph, incapacity 
means that the debtor is impaired by reason of mental illness 
or mental deficiency so that he is incapable of realizing and 
making rational decisions with respect to his financial 
responsibilities; and ``disability'' means that the debtor is 
so physically impaired as to be unable, after reasonable 
effort, to participate in an in person, telephone, or Internet 
briefing required under paragraph (1).

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CHAPTER 3--CASE ADMINISTRATION

           *       *       *       *       *       *       *

SUBCHAPTER II--OFFICERS

           *       *       *       *       *       *       *

Sec. 322. Qualification of trustee

  (a) Except as provided in subsection (b)(1), a person 
selected under section 701, 702, 703, 1104, 1163, 1202, or 1302 
of this title to serve as trustee in a case under this title 
qualifies if before seven days after such selection, and before 
beginning official duties, such person has filed with the court 
a bond in favor of the United States conditioned on the 
faithful performance of such official duties.
  (b)(1) The United States trustee qualifies wherever such 
trustee serves as trustee in a case under this title.
  (2) [The] In cases under subchapter V, the United States 
trustee shall recommend to the court, and in all other cases, 
the United States trustee shall determine--
          (A) the amount of a bond required to be filed under 
        subsection (a) of this section; and
          (B) the sufficiency of the surety on such bond.
  (c) A trustee is not liable personally or on such trustee's 
bond in favor of the United States for any penalty or 
forfeiture incurred by the debtor.
  (d) A proceeding on a trustee's bond may not be commenced 
after two years after the date on which such trustee was 
discharged.

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CHAPTER 7--LIQUIDATION

           *       *       *       *       *       *       *

SUBCHAPTER II--COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE

           *       *       *       *       *       *       *

Sec. 726. Distribution of property of the estate

  (a) Except as provided in section 510 of this title, property 
of the estate shall be distributed--
          (1) first, in payment of any unpaid fees, costs, and 
        expenses of a special trustee appointed under section 
        1186, and then in payment of claims of the kind 
        specified in, and in the order specified in, section 
        507 of this title, proof of which is timely filed under 
        section 501 of this title or tardily filed on or before 
        the earlier of--
                  (A) the date that is 10 days after the 
                mailing to creditors of the summary of the 
                trustee's final report; or
                  (B) the date on which the trustee commences 
                final distribution under this section;
          (2) second, in payment of any allowed unsecured 
        claim, other than a claim of a kind specified in 
        paragraph (1), (3), or (4) of this subsection, proof of 
        which is--
                  (A) timely filed under section 501(a) of this 
                title;
                  (B) timely filed under section 501(b) or 
                501(c) of this title; or
                  (C) tardily filed under section 501(a) of 
                this title, if--
                          (i) the creditor that holds such 
                        claim did not have notice or actual 
                        knowledge of the case in time for 
                        timely filing of a proof of such claim 
                        under section 501(a) of this title; and
                          (ii) proof of such claim is filed in 
                        time to permit payment of such claim;
          (3) third, in payment of any allowed unsecured claim 
        proof of which is tardily filed under section 501(a) of 
        this title, other than a claim of the kind specified in 
        paragraph (2)(C) of this subsection;
          (4) fourth, in payment of any allowed claim, whether 
        secured or unsecured, for any fine, penalty, or 
        forfeiture, or for multiple, exemplary, or punitive 
        damages, arising before the earlier of the order for 
        relief or the appointment of a trustee, to the extent 
        that such fine, penalty, forfeiture, or damages are not 
        compensation for actual pecuniary loss suffered by the 
        holder of such claim;
          (5) fifth, in payment of interest at the legal rate 
        from the date of the filing of the petition, on any 
        claim paid under paragraph (1), (2), (3), or (4) of 
        this subsection; and
          (6) sixth, to the debtor.
  (b) Payment on claims of a kind specified in paragraph (1), 
(2), (3), (4), (5), (6), (7), (8), (9), or (10) of section 
507(a) of this title, or in paragraph (2), (3), (4), or (5) of 
subsection (a) of this section, shall be made pro rata among 
claims of the kind specified in each such particular paragraph, 
except that in a case that has been converted to this chapter 
under section 1112, 1208, or 1307 of this title, a claim 
allowed under section 503(b) of this title incurred under this 
chapter after such conversion has priority over a claim allowed 
under section 503(b) of this title incurred under any other 
chapter of this title or under this chapter before such 
conversion and over any expenses of a custodian superseded 
under section 543 of this title.
  (c) Notwithstanding subsections (a) and (b) of this section, 
if there is property of the kind specified in section 541(a)(2) 
of this title, or proceeds of such property, in the estate, 
such property or proceeds shall be segregated from other 
property of the estate, and such property or proceeds and other 
property of the estate shall be distributed as follows:
          (1) Claims allowed under section 503 of this title 
        shall be paid either from property of the kind 
        specified in section 541(a)(2) of this title, or from 
        other property of the estate, as the interest of 
        justice requires.
          (2) Allowed claims, other than claims allowed under 
        section 503 of this title, shall be paid in the order 
        specified in subsection (a) of this section, and, with 
        respect to claims of a kind specified in a particular 
        paragraph of section 507 of this title or subsection 
        (a) of this section, in the following order and manner:
                  (A) First, community claims against the 
                debtor or the debtor's spouse shall be paid 
                from property of the kind specified in section 
                541(a)(2) of this title, except to the extent 
                that such property is solely liable for debts 
                of the debtor.
                  (B) Second, to the extent that community 
                claims against the debtor are not paid under 
                subparagraph (A) of this paragraph, such 
                community claims shall be paid from property of 
                the kind specified in section 541(a)(2) of this 
                title that is solely liable for debts of the 
                debtor.
                  (C) Third, to the extent that all claims 
                against the debtor including community claims 
                against the debtor are not paid under 
                subparagraph (A) or (B) of this paragraph such 
                claims shall be paid from property of the 
                estate other than property of the kind 
                specified in section 541(a)(2) of this title.
                  (D) Fourth, to the extent that community 
                claims against the debtor or the debtor's 
                spouse are not paid under subparagraph (A), 
                (B), or (C) of this paragraph, such claims 
                shall be paid from all remaining property of 
                the estate.

           *       *       *       *       *       *       *

                       CHAPTER 11--REORGANIZATION

                SUBCHAPTER i--officers and administration

Sec.
1101. Definitions for this chapter.
     * * * * * * *

  SUBCHAPTER v--liquidation, reorganization, or recapitalization of a 
                      covered financial corporation

1181. Inapplicability of other sections.
1182. Definitions for this subchapter.
1183. Commencement of a case concerning a covered financial corporation.
1184. Regulators.
1185. Special transfer of property of the estate.
1186. Special trustee.
1187. Temporary and supplemental automatic stay; assumed debt.
1188. Treatment of qualified financial contracts and affiliate 
          contracts.
1189. Licenses, permits, and registrations.
1190. Exemption from securities laws.
1191. Inapplicability of certain avoiding powers.
1192. Consideration of financial stability.

SUBCHAPTER I--OFFICERS AND ADMINISTRATION

           *       *       *       *       *       *       *

Sec. 1112. Conversion or dismissal

  (a) The debtor may convert a case under this chapter to a 
case under chapter 7 of this title unless--
          (1) the debtor is not a debtor in possession;
          (2) the case originally was commenced as an 
        involuntary case under this chapter; or
          (3) the case was converted to a case under this 
        chapter other than on the debtor's request.
  (b)(1) Except as provided in paragraph (2) and subsection 
(c), on request of a party in interest, and after notice and a 
hearing, the court shall convert a case under this chapter to a 
case under chapter 7 or dismiss a case under this chapter, 
whichever is in the best interests of creditors and the estate, 
for cause unless the court determines that the appointment 
under section 1104(a) of a trustee or an examiner is in the 
best interests of creditors and the estate.
  (2) The court may not convert a case under this chapter to a 
case under chapter 7 or dismiss a case under this chapter if 
the court finds and specifically identifies unusual 
circumstances establishing that converting or dismissing the 
case is not in the best interests of creditors and the estate, 
and the debtor or any other party in interest establishes 
that--
          (A) there is a reasonable likelihood that a plan will 
        be confirmed within the timeframes established in 
        sections 1121(e) and 1129(e) of this title, or if such 
        sections do not apply, within a reasonable period of 
        time; and
          (B) the grounds for converting or dismissing the case 
        include an act or omission of the debtor other than 
        under paragraph (4)(A)--
                  (i) for which there exists a reasonable 
                justification for the act or omission; and
                  (ii) that will be cured within a reasonable 
                period of time fixed by the court.
  (3) The court shall commence the hearing on a motion under 
this subsection not later than 30 days after filing of the 
motion, and shall decide the motion not later than 15 days 
after commencement of such hearing, unless the movant expressly 
consents to a continuance for a specific period of time or 
compelling circumstances prevent the court from meeting the 
time limits established by this paragraph.
  (4) For purposes of this subsection, the term ``cause'' 
includes--
          (A) substantial or continuing loss to or diminution 
        of the estate and the absence of a reasonable 
        likelihood of rehabilitation;
          (B) gross mismanagement of the estate;
          (C) failure to maintain appropriate insurance that 
        poses a risk to the estate or to the public;
          (D) unauthorized use of cash collateral substantially 
        harmful to 1 or more creditors;
          (E) failure to comply with an order of the court;
          (F) unexcused failure to satisfy timely any filing or 
        reporting requirement established by this title or by 
        any rule applicable to a case under this chapter;
          (G) failure to attend the meeting of creditors 
        convened under section 341(a) or an examination ordered 
        under rule 2004 of the Federal Rules of Bankruptcy 
        Procedure without good cause shown by the debtor;
          (H) failure timely to provide information or attend 
        meetings reasonably requested by the United States 
        trustee (or the bankruptcy administrator, if any);
          (I) failure timely to pay taxes owed after the date 
        of the order for relief or to file tax returns due 
        after the date of the order for relief;
          (J) failure to file a disclosure statement, or to 
        file or confirm a plan, within the time fixed by this 
        title or by order of the court;
          (K) failure to pay any fees or charges required under 
        chapter 123 of title 28;
          (L) revocation of an order of confirmation under 
        section 1144;
          (M) inability to effectuate substantial consummation 
        of a confirmed plan;
          (N) material default by the debtor with respect to a 
        confirmed plan;
          (O) termination of a confirmed plan by reason of the 
        occurrence of a condition specified in the plan; and
          (P) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date of 
        the filing of the petition.
  (c) The court may not convert a case under this chapter to a 
case under chapter 7 of this title if the debtor is a farmer or 
a corporation that is not a moneyed, business, or commercial 
corporation, unless the debtor requests such conversion.
  (d) The court may convert a case under this chapter to a case 
under chapter 12 or 13 of this title only if--
          (1) the debtor requests such conversion;
          (2) the debtor has not been discharged under section 
        1141(d) of this title; and
          (3) if the debtor requests conversion to chapter 12 
        of this title, such conversion is equitable.
  (e) Except as provided in subsections (c) and (f), the court, 
on request of the United States trustee, may convert a case 
under this chapter to a case under chapter 7 of this title or 
may dismiss a case under this chapter, whichever is in the best 
interest of creditors and the estate if the debtor in a 
voluntary case fails to file, within fifteen days after the 
filing of the petition commencing such case or such additional 
time as the court may allow, the information required by 
paragraph (1) of section 521(a), including a list containing 
the names and addresses of the holders of the twenty largest 
unsecured claims (or of all unsecured claims if there are fewer 
than twenty unsecured claims), and the approximate dollar 
amounts of each of such claims.
  (f) Notwithstanding any other provision of this section, a 
case may not be converted to a case under another chapter of 
this title unless the debtor may be a debtor under such 
chapter.
  (g) Notwithstanding section 109(b), the court may convert a 
case under subchapter V to a case under chapter 7 if--
          (1) a transfer approved under section 1185 has been 
        consummated;
          (2) the court has ordered the appointment of a 
        special trustee under section 1186; and
          (3) the court finds, after notice and a hearing, that 
        conversion is in the best interest of the creditors and 
        the estate.

           *       *       *       *       *       *       *

SUBCHAPTER II--THE PLAN

           *       *       *       *       *       *       *

Sec. 1129. Confirmation of plan

  (a) The court shall confirm a plan only if all of the 
following requirements are met:
          (1) The plan complies with the applicable provisions 
        of this title.
          (2) The proponent of the plan complies with the 
        applicable provisions of this title.
          (3) The plan has been proposed in good faith and not 
        by any means forbidden by law.
          (4) Any payment made or to be made by the proponent, 
        by the debtor, or by a person issuing securities or 
        acquiring property under the plan, for services or for 
        costs and expenses in or in connection with the case, 
        or in connection with the plan and incident to the 
        case, has been approved by, or is subject to the 
        approval of, the court as reasonable.
          (5)(A)(i) The proponent of the plan has disclosed the 
        identity and affiliations of any individual proposed to 
        serve, after confirmation of the plan, as a director, 
        officer, or voting trustee of the debtor, an affiliate 
        of the debtor participating in a joint plan with the 
        debtor, or a successor to the debtor under the plan; 
        and
          (ii) the appointment to, or continuance in, such 
        office of such individual, is consistent with the 
        interests of creditors and equity security holders and 
        with public policy; and
          (B) the proponent of the plan has disclosed the 
        identity of any insider that will be employed or 
        retained by the reorganized debtor, and the nature of 
        any compensation for such insider.
          (6) Any governmental regulatory commission with 
        jurisdiction, after confirmation of the plan, over the 
        rates of the debtor has approved any rate change 
        provided for in the plan, or such rate change is 
        expressly conditioned on such approval.
          (7) With respect to each impaired class of claims or 
        interests--
                  (A) each holder of a claim or interest of 
                such class--
                          (i) has accepted the plan; or
                          (ii) will receive or retain under the 
                        plan on account of such claim or 
                        interest property of a value, as of the 
                        effective date of the plan, that is not 
                        less than the amount that such holder 
                        would so receive or retain if the 
                        debtor were liquidated under chapter 7 
                        of this title on such date; or
                  (B) if section 1111(b)(2) of this title 
                applies to the claims of such class, each 
                holder of a claim of such class will receive or 
                retain under the plan on account of such claim 
                property of a value, as of the effective date 
                of the plan, that is not less than the value of 
                such holder's interest in the estate's interest 
                in the property that secures such claims.
          (8) With respect to each class of claims or 
        interests--
                  (A) such class has accepted the plan; or
                  (B) such class is not impaired under the 
                plan.
          (9) Except to the extent that the holder of a 
        particular claim has agreed to a different treatment of 
        such claim, the plan provides that--
                  (A) with respect to a claim of a kind 
                specified in section 507(a)(2) or 507(a)(3) of 
                this title, on the effective date of the plan, 
                the holder of such claim will receive on 
                account of such claim cash equal to the allowed 
                amount of such claim;
                  (B) with respect to a class of claims of a 
                kind specified in section 507(a)(1), 507(a)(4), 
                507(a)(5), 507(a)(6), or 507(a)(7) of this 
                title, each holder of a claim of such class 
                will receive--
                          (i) if such class has accepted the 
                        plan, deferred cash payments of a 
                        value, as of the effective date of the 
                        plan, equal to the allowed amount of 
                        such claim; or
                          (ii) if such class has not accepted 
                        the plan, cash on the effective date of 
                        the plan equal to the allowed amount of 
                        such claim;
                  (C) with respect to a claim of a kind 
                specified in section 507(a)(8) of this title, 
                the holder of such claim will receive on 
                account of such claim regular installment 
                payments in cash--
                          (i) of a total value, as of the 
                        effective date of the plan, equal to 
                        the allowed amount of such claim;
                          (ii) over a period ending not later 
                        than 5 years after the date of the 
                        order for relief under section 301, 
                        302, or 303; and
                          (iii) in a manner not less favorable 
                        than the most favored nonpriority 
                        unsecured claim provided for by the 
                        plan (other than cash payments made to 
                        a class of creditors under section 
                        1122(b)); and
                  (D) with respect to a secured claim which 
                would otherwise meet the description of an 
                unsecured claim of a governmental unit under 
                section 507(a)(8), but for the secured status 
                of that claim, the holder of that claim will 
                receive on account of that claim, cash 
                payments, in the same manner and over the same 
                period, as prescribed in subparagraph (C).
          (10) If a class of claims is impaired under the plan, 
        at least one class of claims that is impaired under the 
        plan has accepted the plan, determined without 
        including any acceptance of the plan by any insider.
          (11) Confirmation of the plan is not likely to be 
        followed by the liquidation, or the need for further 
        financial reorganization, of the debtor or any 
        successor to the debtor under the plan, unless such 
        liquidation or reorganization is proposed in the plan.
          (12) All fees payable under section 1930 of title 28, 
        as determined by the court at the hearing on 
        confirmation of the plan, have been paid or the plan 
        provides for the payment of all such fees on the 
        effective date of the plan.
          (13) The plan provides for the continuation after its 
        effective date of payment of all retiree benefits, as 
        that term is defined in section 1114 of this title, at 
        the level established pursuant to subsection (e)(1)(B) 
        or (g) of section 1114 of this title, at any time prior 
        to confirmation of the plan, for the duration of the 
        period the debtor has obligated itself to provide such 
        benefits.
          (14) If the debtor is required by a judicial or 
        administrative order, or by statute, to pay a domestic 
        support obligation, the debtor has paid all amounts 
        payable under such order or such statute for such 
        obligation that first become payable after the date of 
        the filing of the petition.
          (15) In a case in which the debtor is an individual 
        and in which the holder of an allowed unsecured claim 
        objects to the confirmation of the plan--
                  (A) the value, as of the effective date of 
                the plan, of the property to be distributed 
                under the plan on account of such claim is not 
                less than the amount of such claim; or
                  (B) the value of the property to be 
                distributed under the plan is not less than the 
                projected disposable income of the debtor (as 
                defined in section 1325(b)(2)) to be received 
                during the 5-year period beginning on the date 
                that the first payment is due under the plan, 
                or during the period for which the plan 
                provides payments, whichever is longer.
          (16) All transfers of property under the plan shall 
        be made in accordance with any applicable provisions of 
        nonbankruptcy law that govern the transfer of property 
        by a corporation or trust that is not a moneyed, 
        business, or commercial corporation or trust.
          (17) In a case under subchapter V, all payable fees, 
        costs, and expenses of the special trustee have been 
        paid or the plan provides for the payment of all such 
        fees, costs, and expenses on the effective date of the 
        plan.
          (18) In a case under subchapter V, confirmation of 
        the plan is not likely to cause serious adverse effects 
        on financial stability in the United States.
  (b)(1) Notwithstanding section 510(a) of this title, if all 
of the applicable requirements of subsection (a) of this 
section other than paragraph (8) are met with respect to a 
plan, the court, on request of the proponent of the plan, shall 
confirm the plan notwithstanding the requirements of such 
paragraph if the plan does not discriminate unfairly, and is 
fair and equitable, with respect to each class of claims or 
interests that is impaired under, and has not accepted, the 
plan.
  (2) For the purpose of this subsection, the condition that a 
plan be fair and equitable with respect to a class includes the 
following requirements:
          (A) With respect to a class of secured claims, the 
        plan provides--
                  (i)(I) that the holders of such claims retain 
                the liens securing such claims, whether the 
                property subject to such liens is retained by 
                the debtor or transferred to another entity, to 
                the extent of the allowed amount of such 
                claims; and
                  (II) that each holder of a claim of such 
                class receive on account of such claim deferred 
                cash payments totaling at least the allowed 
                amount of such claim, of a value, as of the 
                effective date of the plan, of at least the 
                value of such holder's interest in the estate's 
                interest in such property;
                  (ii) for the sale, subject to section 363(k) 
                of this title, of any property that is subject 
                to the liens securing such claims, free and 
                clear of such liens, with such liens to attach 
                to the proceeds of such sale, and the treatment 
                of such liens on proceeds under clause (i) or 
                (iii) of this subparagraph; or
                  (iii) for the realization by such holders of 
                the indubitable equivalent of such claims.
          (B) With respect to a class of unsecured claims--
                  (i) the plan provides that each holder of a 
                claim of such class receive or retain on 
                account of such claim property of a value, as 
                of the effective date of the plan, equal to the 
                allowed amount of such claim; or
                  (ii) the holder of any claim or interest that 
                is junior to the claims of such class will not 
                receive or retain under the plan on account of 
                such junior claim or interest any property, 
                except that in a case in which the debtor is an 
                individual, the debtor may retain property 
                included in the estate under section 1115, 
                subject to the requirements of subsection 
                (a)(14) of this section.
          (C) With respect to a class of interests--
                  (i) the plan provides that each holder of an 
                interest of such class receive or retain on 
                account of such interest property of a value, 
                as of the effective date of the plan, equal to 
                the greatest of the allowed amount of any fixed 
                liquidation preference to which such holder is 
                entitled, any fixed redemption price to which 
                such holder is entitled, or the value of such 
                interest; or
                  (ii) the holder of any interest that is 
                junior to the interests of such class will not 
                receive or retain under the plan on account of 
                such junior interest any property.
  (c) Notwithstanding subsections (a) and (b) of this section 
and except as provided in section 1127(b) of this title, the 
court may confirm only one plan, unless the order of 
confirmation in the case has been revoked under section 1144 of 
this title. If the requirements of subsections (a) and (b) of 
this section are met with respect to more than one plan, the 
court shall consider the preferences of creditors and equity 
security holders in determining which plan to confirm.
  (d) Notwithstanding any other provision of this section, on 
request of a party in interest that is a governmental unit, the 
court may not confirm a plan if the principal purpose of the 
plan is the avoidance of taxes or the avoidance of the 
application of section 5 of the Securities Act of 1933. In any 
hearing under this subsection, the governmental unit has the 
burden of proof on the issue of avoidance.
  (e) In a small business case, the court shall confirm a plan 
that complies with the applicable provisions of this title and 
that is filed in accordance with section 1121(e) not later than 
45 days after the plan is filed unless the time for 
confirmation is extended in accordance with section 1121(e)(3).

           *       *       *       *       *       *       *

  SUBCHAPTER V--LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A 
                     COVERED FINANCIAL CORPORATION

Sec. 1181. Inapplicability of other sections

  Sections 303 and 321(c) do not apply in a case under this 
subchapter concerning a covered financial corporation. Section 
365 does not apply to a transfer under section 1185, 1187, or 
1188.

Sec. 1182. Definitions for this subchapter

  In this subchapter, the following definitions shall apply:
          (1) The term ``Board'' means the Board of Governors 
        of the Federal Reserve System.
          (2) The term ``bridge company'' means a newly formed 
        corporation to which property of the estate may be 
        transferred under section 1185(a) and the equity 
        securities of which may be transferred to a special 
        trustee under section 1186(a).
          (3) The term ``capital structure debt'' means all 
        unsecured debt of the debtor for borrowed money for 
        which the debtor is the primary obligor, other than a 
        qualified financial contract and other than debt 
        secured by a lien on property of the estate that is to 
        be transferred to a bridge company pursuant to an order 
        of the court under section 1185(a).
          (4) The term ``contractual right'' means a 
        contractual right of a kind defined in section 555, 
        556, 559, 560, or 561.
          (5) The term ``qualified financial contract'' means 
        any contract of a kind defined in paragraph (25), 
        (38A), (47), or (53B) of section 101, section 741(7), 
        or paragraph (4), (5), (11), or (13) of section 761.
          (6) The term ``special trustee'' means the trustee of 
        a trust formed under section 1186(a)(1).

Sec. 1183. Commencement of a case concerning a covered financial 
                    corporation

  (a) A case under this subchapter concerning a covered 
financial corporation may be commenced by the filing of a 
petition with the court by the debtor under section 301 only if 
the debtor states to the best of its knowledge under penalty of 
perjury in the petition that it is a covered financial 
corporation.
  (b) The commencement of a case under subsection (a) 
constitutes an order for relief under this subchapter.
  (c) The members of the board of directors (or body performing 
similar functions) of a covered financial corporation shall 
have no liability to shareholders, creditors, or other parties 
in interest for a good faith filing of a petition to commence a 
case under this subchapter, or for any reasonable action taken 
in good faith in contemplation of such a petition or a transfer 
under section 1185 or section 1186, whether prior to or after 
commencement of the case.
  (d) Counsel to the debtor shall provide, to the greatest 
extent practicable without disclosing the identity of the 
potential debtor, sufficient confidential notice to the chief 
judge of the court of appeals for the circuit embracing the 
district in which such counsel intends to file a petition to 
commence a case under this subchapter regarding the potential 
commencement of such case. The chief judge of such court shall 
randomly assign to preside over such case a bankruptcy judge 
selected from among the bankruptcy judges designated by the 
Chief Justice of the United States under section 298 of title 
28.

Sec. 1184. Regulators

  The Board, the Securities Exchange Commission, the Office of 
the Comptroller of the Currency of the Department of the 
Treasury, the Commodity Futures Trading Commission, and the 
Federal Deposit Insurance Corporation may raise and may appear 
and be heard on any issue in any case or proceeding under this 
subchapter.

Sec. 1185. Special transfer of property of the estate

  (a) On request of the trustee, and after notice and a hearing 
that shall occur not less than 24 hours after the order for 
relief, the court may order a transfer under this section of 
property of the estate, and the assignment of executory 
contracts, unexpired leases, and qualified financial contracts 
of the debtor, to a bridge company. Upon the entry of an order 
approving such transfer, any property transferred, and any 
executory contracts, unexpired leases, and qualified financial 
contracts assigned under such order shall no longer be property 
of the estate. Except as provided under this section, the 
provisions of section 363 shall apply to a transfer and 
assignment under this section.
  (b) Unless the court orders otherwise, notice of a request 
for an order under subsection (a) shall consist of electronic 
or telephonic notice of not less than 24 hours to--
          (1) the debtor;
          (2) the holders of the 20 largest secured claims 
        against the debtor;
          (3) the holders of the 20 largest unsecured claims 
        against the debtor;
          (4) counterparties to any debt, executory contract, 
        unexpired lease, and qualified financial contract 
        requested to be transferred under this section;
          (5) the Board;
          (6) the Federal Deposit Insurance Corporation;
          (7) the Secretary of the Treasury and the Office of 
        the Comptroller of the Currency of the Treasury;
          (8) the Commodity Futures Trading Commission;
          (9) the Securities and Exchange Commission;
          (10) the United States trustee or bankruptcy 
        administrator; and
          (11) each primary financial regulatory agency, as 
        defined in section 2(12) of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act, with respect to any 
        affiliate the equity securities of which are proposed 
        to be transferred under this section.
  (c) The court may not order a transfer under this section 
unless the court determines, based upon a preponderance of the 
evidence, that--
          (1) the transfer under this section is necessary to 
        prevent serious adverse effects on financial stability 
        in the United States;
          (2) the transfer does not provide for the assumption 
        of any capital structure debt by the bridge company;
          (3) the transfer does not provide for the transfer to 
        the bridge company of any property of the estate that 
        is subject to a lien securing a debt, executory 
        contract, unexpired lease or agreement (including a 
        qualified financial contract) of the debtor unless--
                  (A)(i) the bridge company assumes such debt, 
                executory contract, unexpired lease or 
                agreement (including a qualified financial 
                contract), including any claims arising in 
                respect thereof that would not be allowed 
                secured claims under section 506(a)(1) and 
                after giving effect to such transfer, such 
                property remains subject to the lien securing 
                such debt, executory contract, unexpired lease 
                or agreement (including a qualified financial 
                contract); and
                  (ii) the court has determined that assumption 
                of such debt, executory contract, unexpired 
                lease or agreement (including a qualified 
                financial contract) by the bridge company is in 
                the best interests of the estate; or
                  (B) such property is being transferred to the 
                bridge company in accordance with the 
                provisions of section 363;
          (4) the transfer does not provide for the assumption 
        by the bridge company of any debt, executory contract, 
        unexpired lease or agreement (including a qualified 
        financial contract) of the debtor secured by a lien on 
        property of the estate unless the transfer provides for 
        such property to be transferred to the bridge company 
        in accordance with paragraph (3)(A) of this subsection;
          (5) the transfer does not provide for the transfer of 
        the equity of the debtor;
          (6) the trustee has demonstrated that the bridge 
        company is not likely to fail to meet the obligations 
        of any debt, executory contract, qualified financial 
        contract, or unexpired lease assumed and assigned to 
        the bridge company;
          (7) the transfer provides for the transfer to a 
        special trustee all of the equity securities in the 
        bridge company and appointment of a special trustee in 
        accordance with section 1186;
          (8) after giving effect to the transfer, adequate 
        provision has been made for the fees, costs, and 
        expenses of the estate and special trustee; and
          (9) the bridge company will have governing documents, 
        and initial directors and senior officers, that are in 
        the best interest of creditors and the estate.
  (d) Immediately before a transfer under this section, the 
bridge company that is the recipient of the transfer shall--
          (1) not have any property, executory contracts, 
        unexpired leases, qualified financial contracts, or 
        debts, other than any property acquired or executory 
        contracts, unexpired leases, or debts assumed when 
        acting as a transferee of a transfer under this 
        section; and
          (2) have equity securities that are property of the 
        estate, which may be sold or distributed in accordance 
        with this title.

Sec. 1186. Special trustee

  (a)(1) An order approving a transfer under section 1185 shall 
require the trustee to transfer to a qualified and independent 
special trustee, who is appointed by the court, all of the 
equity securities in the bridge company that is the recipient 
of a transfer under section 1185 to hold in trust for the sole 
benefit of the estate, subject to satisfaction of the special 
trustee's fees, costs, and expenses. The trust of which the 
special trustee is the trustee shall be a newly formed trust 
governed by a trust agreement approved by the court as in the 
best interests of the estate, and shall exist for the sole 
purpose of holding and administering, and shall be permitted to 
dispose of, the equity securities of the bridge company in 
accordance with the trust agreement.
  (2) In connection with the hearing to approve a transfer 
under section 1185, the trustee shall confirm to the court that 
the Board has been consulted regarding the identity of the 
proposed special trustee and advise the court of the results of 
such consultation.
  (b) The trust agreement governing the trust shall provide--
          (1) for the payment of the fees, costs, expenses, and 
        indemnities of the special trustee from the assets of 
        the debtor's estate;
          (2) that the special trustee provide--
                  (A) quarterly reporting to the estate, which 
                shall be filed with the court; and
                  (B) information about the bridge company 
                reasonably requested by a party in interest to 
                prepare a disclosure statement for a plan 
                providing for distribution of any securities of 
                the bridge company if such information is 
                necessary to prepare such disclosure statement;
          (3) that for as long as the equity securities of the 
        bridge company are held by the trust, the special 
        trustee shall file a notice with the court in 
        connection with--
                  (A) any change in a director or senior 
                officer of the bridge company;
                  (B) any modification to the governing 
                documents of the bridge company; and
                  (C) any material corporate action of the 
                bridge company, including--
                          (i) recapitalization;
                          (ii) a material borrowing;
                          (iii) termination of an intercompany 
                        debt or guarantee;
                          (iv) a transfer of a substantial 
                        portion of the assets of the bridge 
                        company; or
                          (v) the issuance or sale of any 
                        securities of the bridge company;
          (4) that any sale of any equity securities of the 
        bridge company shall not be consummated until the 
        special trustee consults with the Federal Deposit 
        Insurance Corporation and the Board regarding such sale 
        and discloses the results of such consultation with the 
        court;
          (5) that, subject to reserves for payments permitted 
        under paragraph (1) provided for in the trust 
        agreement, the proceeds of the sale of any equity 
        securities of the bridge company by the special trustee 
        be held in trust for the benefit of or transferred to 
        the estate;
          (6) the process and guidelines for the replacement of 
        the special trustee; and
          (7) that the property held in trust by the special 
        trustee is subject to distribution in accordance with 
        subsection (c).
  (c)(1) The special trustee shall distribute the assets held 
in trust--
          (A) if the court confirms a plan in the case, in 
        accordance with the plan on the effective date of the 
        plan; or
          (B) if the case is converted to a case under chapter 
        7, as ordered by the court.
  (2) As soon as practicable after a final distribution under 
paragraph (1), the office of the special trustee shall 
terminate, except as may be necessary to wind up and conclude 
the business and financial affairs of the trust.
  (d) After a transfer to the special trustee under this 
section, the special trustee shall be subject only to 
applicable nonbankruptcy law, and the actions and conduct of 
the special trustee shall no longer be subject to approval by 
the court in the case under this subchapter.

Sec. 1187. Temporary and supplemental automatic stay; assumed debt

  (a)(1) A petition filed under section 1183 operates as a 
stay, applicable to all entities, of the termination, 
acceleration, or modification of any debt, contract, lease, or 
agreement of the kind described in paragraph (2), or of any 
right or obligation under any such debt, contract, lease, or 
agreement, solely because of--
          (A) a default by the debtor under any such debt, 
        contract, lease, or agreement; or
          (B) a provision in such debt, contract, lease, or 
        agreement, or in applicable nonbankruptcy law, that is 
        conditioned on--
                  (i) the insolvency or financial condition of 
                the debtor at any time before the closing of 
                the case;
                  (ii) the commencement of a case under this 
                title concerning the debtor;
                  (iii) the appointment of or taking possession 
                by a trustee in a case under this title 
                concerning the debtor or by a custodian before 
                the commencement of the case; or
                  (iv) a credit rating agency rating, or 
                absence or withdrawal of a credit rating agency 
                rating--
                          (I) of the debtor at any time after 
                        the commencement of the case;
                          (II) of an affiliate during the 
                        period from the commencement of the 
                        case until 48 hours after such order is 
                        entered;
                          (III) of the bridge company while the 
                        trustee or the special trustee is a 
                        direct or indirect beneficial holder of 
                        more than 50 percent of the equity 
                        securities of--
                                  (aa) the bridge company; or
                                  (bb) the affiliate, if all of 
                                the direct or indirect 
                                interests in the affiliate that 
                                are property of the estate are 
                                transferred under section 1185; 
                                or
                          (IV) of an affiliate while the 
                        trustee or the special trustee is a 
                        direct or indirect beneficial holder of 
                        more than 50 percent of the equity 
                        securities of--
                                  (aa) the bridge company; or
                                  (bb) the affiliate, if all of 
                                the direct or indirect 
                                interests in the affiliate that 
                                are property of the estate are 
                                transferred under section 1185.
  (2) A debt, contract, lease, or agreement described in this 
paragraph is--
          (A) any debt (other than capital structure debt), 
        executory contract, or unexpired lease of the debtor 
        (other than a qualified financial contract);
          (B) any agreement under which the debtor issued or is 
        obligated for debt (other than capital structure debt);
          (C) any debt, executory contract, or unexpired lease 
        of an affiliate (other than a qualified financial 
        contract); or
          (D) any agreement under which an affiliate issued or 
        is obligated for debt.
  (3) The stay under this subsection terminates--
          (A) for the benefit of the debtor, upon the earliest 
        of--
                  (i) 48 hours after the commencement of the 
                case;
                  (ii) assumption of the debt, contract, lease, 
                or agreement by the bridge company under an 
                order authorizing a transfer under section 
                1185;
                  (iii) a final order of the court denying the 
                request for a transfer under section 1185; or
                  (iv) the time the case is dismissed; and
          (B) for the benefit of an affiliate, upon the 
        earliest of--
                  (i) the entry of an order authorizing a 
                transfer under section 1185 in which the direct 
                or indirect interests in the affiliate that are 
                property of the estate are not transferred 
                under section 1185;
                  (ii) a final order by the court denying the 
                request for a transfer under section 1185;
                  (iii) 48 hours after the commencement of the 
                case if the court has not ordered a transfer 
                under section 1185; or
                  (iv) the time the case is dismissed.
  (4) Subsections (d), (e), (f), and (g) of section 362 apply 
to a stay under this subsection.
  (b) A debt, executory contract (other than a qualified 
financial contract), or unexpired lease of the debtor, or an 
agreement under which the debtor has issued or is obligated for 
any debt, may be assumed by a bridge company in a transfer 
under section 1185 notwithstanding any provision in an 
agreement or in applicable nonbankruptcy law that--
          (1) prohibits, restricts, or conditions the 
        assignment of the debt, contract, lease, or agreement; 
        or
          (2) accelerates, terminates, or modifies, or permits 
        a party other than the debtor to terminate or modify, 
        the debt, contract, lease, or agreement on account of--
                  (A) the assignment of the debt, contract, 
                lease, or agreement; or
                  (B) a change in control of any party to the 
                debt, contract, lease, or agreement.
  (c)(1) A debt, contract, lease, or agreement of the kind 
described in subparagraph (A) or (B) of subsection (a)(2) may 
not be accelerated, terminated, or modified, and any right or 
obligation under such debt, contract, lease, or agreement may 
not be accelerated, terminated, or modified, as to the bridge 
company solely because of a provision in the debt, contract, 
lease, or agreement or in applicable nonbankruptcy law--
          (A) of the kind described in subsection (a)(1)(B) as 
        applied to the debtor;
          (B) that prohibits, restricts, or conditions the 
        assignment of the debt, contract, lease, or agreement; 
        or
          (C) that accelerates, terminates, or modifies, or 
        permits a party other than the debtor to terminate or 
        modify, the debt, contract, lease or agreement on 
        account of--
                  (i) the assignment of the debt, contract, 
                lease, or agreement; or
                  (ii) a change in control of any party to the 
                debt, contract, lease, or agreement.
  (2) If there is a default by the debtor under a provision 
other than the kind described in paragraph (1) in a debt, 
contract, lease or agreement of the kind described in 
subparagraph (A) or (B) of subsection (a)(2), the bridge 
company may assume such debt, contract, lease, or agreement 
only if the bridge company--
          (A) shall cure the default;
          (B) compensates, or provides adequate assurance in 
        connection with a transfer under section 1185 that the 
        bridge company will promptly compensate, a party other 
        than the debtor to the debt, contract, lease, or 
        agreement, for any actual pecuniary loss to the party 
        resulting from the default; and
          (C) provides adequate assurance in connection with a 
        transfer under section 1185 of future performance under 
        the debt, contract, lease, or agreement, as determined 
        by the court under section 1185(c)(4).

Sec. 1188. Treatment of qualified financial contracts and affiliate 
                    contracts

  (a) Notwithstanding sections 362(b)(6), 362(b)(7), 
362(b)(17), 362(b)(27), 362(o), 555, 556, 559, 560, and 561, a 
petition filed under section 1183 operates as a stay, during 
the period specified in section 1187(a)(3)(A), applicable to 
all entities, of the exercise of a contractual right--
          (1) to cause the modification, liquidation, 
        termination, or acceleration of a qualified financial 
        contract of the debtor or an affiliate;
          (2) to offset or net out any termination value, 
        payment amount, or other transfer obligation arising 
        under or in connection with a qualified financial 
        contract of the debtor or an affiliate; or
          (3) under any security agreement or arrangement or 
        other credit enhancement forming a part of or related 
        to a qualified financial contract of the debtor or an 
        affiliate.
  (b)(1) During the period specified in section 1187(a)(3)(A), 
the trustee or the affiliate shall perform all payment and 
delivery obligations under such qualified financial contract of 
the debtor or the affiliate, as the case may be, that become 
due after the commencement of the case. The stay provided under 
subsection (a) terminates as to a qualified financial contract 
of the debtor or an affiliate immediately upon the failure of 
the trustee or the affiliate, as the case may be, to perform 
any such obligation during such period.
  (2) Any failure by a counterparty to any qualified financial 
contract of the debtor or any affiliate to perform any payment 
or delivery obligation under such qualified financial contract, 
including during the pendency of the stay provided under 
subsection (a), shall constitute a breach of such qualified 
financial contract by the counterparty.
  (c) Subject to the court's approval, a qualified financial 
contract between an entity and the debtor may be assigned to or 
assumed by the bridge company in a transfer under, and in 
accordance with, section 1185 if and only if--
          (1) all qualified financial contracts between the 
        entity and the debtor are assigned to and assumed by 
        the bridge company in the transfer under section 1185;
          (2) all claims of the entity against the debtor in 
        respect of any qualified financial contract between the 
        entity and the debtor (other than any claim that, under 
        the terms of the qualified financial contract, is 
        subordinated to the claims of general unsecured 
        creditors) are assigned to and assumed by the bridge 
        company;
          (3) all claims of the debtor against the entity under 
        any qualified financial contract between the entity and 
        the debtor are assigned to and assumed by the bridge 
        company; and
          (4) all property securing or any other credit 
        enhancement furnished by the debtor for any qualified 
        financial contract described in paragraph (1) or any 
        claim described in paragraph (2) or (3) under any 
        qualified financial contract between the entity and the 
        debtor is assigned to and assumed by the bridge 
        company.
  (d) Notwithstanding any provision of a qualified financial 
contract or of applicable nonbankruptcy law, a qualified 
financial contract of the debtor that is assumed or assigned in 
a transfer under section 1185 may not be accelerated, 
terminated, or modified, after the entry of the order approving 
a transfer under section 1185, and any right or obligation 
under the qualified financial contract may not be accelerated, 
terminated, or modified, after the entry of the order approving 
a transfer under section 1185 solely because of a condition 
described in section 1187(c)(1), other than a condition of the 
kind specified in section 1187(b) that occurs after property of 
the estate no longer includes a direct beneficial interest or 
an indirect beneficial interest through the special trustee, in 
more than 50 percent of the equity securities of the bridge 
company.
  (e) Notwithstanding any provision of any agreement or in 
applicable nonbankruptcy law, an agreement of an affiliate 
(including an executory contract, an unexpired lease, qualified 
financial contract, or an agreement under which the affiliate 
issued or is obligated for debt) and any right or obligation 
under such agreement may not be accelerated, terminated, or 
modified, solely because of a condition described in section 
1187(c)(1), other than a condition of the kind specified in 
section 1187(b) that occurs after the bridge company is no 
longer a direct or indirect beneficial holder of more than 50 
percent of the equity securities of the affiliate, at any time 
after the commencement of the case if--
          (1) all direct or indirect interests in the affiliate 
        that are property of the estate are transferred under 
        section 1185 to the bridge company within the period 
        specified in subsection (a);
          (2) the bridge company assumes--
                  (A) any guarantee or other credit enhancement 
                issued by the debtor relating to the agreement 
                of the affiliate; and
                  (B) any obligations in respect of rights of 
                setoff, netting arrangement, or debt of the 
                debtor that directly arises out of or directly 
                relates to the guarantee or credit enhancement; 
                and
          (3) any property of the estate that directly serves 
        as collateral for the guarantee or credit enhancement 
        is transferred to the bridge company.

Sec. 1189. Licenses, permits, and registrations

  (a) Notwithstanding any otherwise applicable nonbankruptcy 
law, if a request is made under section 1185 for a transfer of 
property of the estate, any Federal, State, or local license, 
permit, or registration that the debtor or an affiliate had 
immediately before the commencement of the case and that is 
proposed to be transferred under section 1185 may not be 
accelerated, terminated, or modified at any time after the 
request solely on account of--
          (1) the insolvency or financial condition of the 
        debtor at any time before the closing of the case;
          (2) the commencement of a case under this title 
        concerning the debtor;
          (3) the appointment of or taking possession by a 
        trustee in a case under this title concerning the 
        debtor or by a custodian before the commencement of the 
        case; or
          (4) a transfer under section 1185.
  (b) Notwithstanding any otherwise applicable nonbankruptcy 
law, any Federal, State, or local license, permit, or 
registration that the debtor had immediately before the 
commencement of the case that is included in a transfer under 
section 1185 shall be valid and all rights and obligations 
thereunder shall vest in the bridge company.

Sec. 1190. Exemption from securities laws

  For purposes of section 1145, a security of the bridge 
company shall be deemed to be a security of a successor to the 
debtor under a plan if the court approves the disclosure 
statement for the plan as providing adequate information (as 
defined in section 1125(a)) about the bridge company and the 
security.

Sec. 1191. Inapplicability of certain avoiding powers

  A transfer made or an obligation incurred by the debtor to an 
affiliate prior to or after the commencement of the case, 
including any obligation released by the debtor or the estate 
to or for the benefit of an affiliate, in contemplation of or 
in connection with a transfer under section 1185 is not 
avoidable under section 544, 547, 548(a)(1)(B), or 549, or 
under any similar nonbankruptcy law.

Sec. 1192. Consideration of financial stability

  The court may consider the effect that any decision in 
connection with this subchapter may have on financial stability 
in the United States.

           *       *       *       *       *       *       *

                              ----------                              

                      TITLE 28, UNITED STATES CODE

PART I--ORGANIZATION OF COURTS

           *       *       *       *       *       *       *

            CHAPTER 13--ASSIGNMENT OF JUDGES TO OTHER COURTS

Sec.
291. Circuit judges.
     * * * * * * *
298. Judge for a case under subchapter V of chapter 11 of title 11.

           *       *       *       *       *       *       *

Sec. 298. Judge for a case under subchapter V of chapter 11 of title 11

  (a)(1) Notwithstanding section 295, the Chief Justice of the 
United States shall designate not fewer than 10 bankruptcy 
judges to be available to hear a case under subchapter V of 
chapter 11 of title 11. Bankruptcy judges may request to be 
considered by the Chief Justice of the United States for such 
designation.
  (2) Notwithstanding section 155, a case under subchapter V of 
chapter 11 of title 11 shall be heard under section 157 by a 
bankruptcy judge designated under paragraph (1), who shall be 
randomly assigned to hear such case by the chief judge of the 
court of appeals for the circuit embracing the district in 
which the case is pending. To the greatest extent practicable, 
the approvals required under section 155 should be obtained.
  (3) If the bankruptcy judge assigned to hear a case under 
paragraph (2) is not assigned to the district in which the case 
is pending, the bankruptcy judge shall be temporarily assigned 
to the district.
  (b) A case under subchapter V of chapter 11 of title 11, and 
all proceedings in the case, shall take place in the district 
in which the case is pending.
  (c) In this section, the term ``covered financial 
corporation'' has the meaning given that term in section 
101(9A) of title 11.

           *       *       *       *       *       *       *

PART IV--JURISDICTION AND VENUE

           *       *       *       *       *       *       *

CHAPTER 85--DISTRICT COURTS; JURISDICTION

           *       *       *       *       *       *       *

Sec. 1334. Bankruptcy cases and proceedings

  (a) Except as provided in subsection (b) of this section, the 
district courts shall have original and exclusive jurisdiction 
of all cases under title 11.
  (b) Except as provided in subsection (e)(2), and 
notwithstanding any Act of Congress that confers exclusive 
jurisdiction on a court or courts other than the district 
courts, the district courts shall have original but not 
exclusive jurisdiction of all civil proceedings arising under 
title 11, or arising in or related to cases under title 11.
  (c)(1) Except with respect to a case under chapter 15 of 
title 11, nothing in this section prevents a district court in 
the interest of justice, or in the interest of comity with 
State courts or respect for State law, from abstaining from 
hearing a particular proceeding arising under title 11 or 
arising in or related to a case under title 11.
          (2) Upon timely motion of a party in a proceeding 
        based upon a State law claim or State law cause of 
        action, related to a case under title 11 but not 
        arising under title 11 or arising in a case under title 
        11, with respect to which an action could not have been 
        commenced in a court of the United States absent 
        jurisdiction under this section, the district court 
        shall abstain from hearing such proceeding if an action 
        is commenced, and can be timely adjudicated, in a State 
        forum of appropriate jurisdiction.
  (d) Any decision to abstain or not to abstain made under 
subsection (c) (other than a decision not to abstain in a 
proceeding described in subsection (c)(2)) is not reviewable by 
appeal or otherwise by the court of appeals under section 
158(d), 1291, or 1292 of this title or by the Supreme Court of 
the United States under section 1254 of this title. Subsection 
(c) and this subsection shall not be construed to limit the 
applicability of the stay provided for by section 362 of title 
11, United States Code, as such section applies to an action 
affecting the property of the estate in bankruptcy.
  (e) The district court in which a case under title 11 is 
commenced or is pending shall have exclusive jurisdiction--
          (1) of all the property, wherever located, of the 
        debtor as of the commencement of such case, and of 
        property of the estate; and
          (2) over all claims or causes of action that involve 
        construction of section 327 of title 11, United States 
        Code, or rules relating to disclosure requirements 
        under section 327.
  (f) This section does not grant jurisdiction to the district 
court after a transfer pursuant to an order under section 1185 
of title 11 of any proceeding related to a special trustee 
appointed, or to a bridge company formed, in connection with a 
case under subchapter V of chapter 11 of title 11.

           *       *       *       *       *       *       *

       DISSENTING VIEWS OF REP. NITA LOWEY AND REP. MIKE QUIGLEY

    The Financial Services and General Government (FSGG) bill 
funds critical programs that impact the lives of every American 
in their capacity as consumers, as investors, and as taxpayers. 
The bill's jurisdiction covers a diverse range of agencies 
including those that provide oversight and regulation of the 
financial and telecommunications industries, manage government 
buildings and infrastructure projects, and oversee the federal 
workforce. In addition, funding in this bill supports the 
operations of the White House, the Federal Judiciary, and the 
District of Columbia.
    We appreciate Chairman Graves' efforts in assembling the 
Fiscal Year (FY) 2018 FSGG bill. We were pleased to cooperate 
with the Chairman to identify areas of common ground. However, 
the overwhelming share of funding decisions and policy 
provisions in this bill reflect an unprecedented degree of 
focus on partisan priorities from the Majority's side of the 
aisle.
    The bill's FY 2018 allocation is $20,231,000,000. This 
level is $1,283,967,000 below the FY 2017 level, a cut of 6 
percent. Such an allocation requires severe programmatic cuts 
and is unsustainable. Taxpayers would find an Internal Revenue 
Service (IRS) unable to handle basic requests for information 
after years of no growth budgets manifest in worsened customer 
service. Government agencies pay rent to a landlord that would 
not fulfill its basic repair responsibilities because this 
Committee uses those rent payments for other unrelated 
priorities and does not put it back into the Government 
Services Administration (GSA).
    Despite the unrealistically insufficient allocation, the 
bill rejects at least a few of the Trump Administration's worst 
proposals. For example, the bill restores funding to current FY 
2017 levels for two Treasury Department functions that are key 
to national security--the Financial Crimes Enforcement Network 
and the office of Terrorism and Financial Intelligence. It is 
clear that both are in need of even greater resources, but 
freezing investment at the fiscal year 2017 level is certainly 
preferable to the dangerous cuts proposed in the President's 
budget request. In short, while we appreciate the efforts the 
Chairman made to adequately fund these particular programs, 
they are small bright spots in an otherwise dismal bill.
    The best example of the inadequacy of this bill is the 23 
percent cut to the Community Development Financial Institutions 
Fund (CDFI). While the Committee does not fully embrace 
President Trump's proposal to end CDFI grants, this steep cut 
would greatly reduce access to financing and affordable 
financial services in countless rural, urban, low-income, and 
Native American communities nationwide.
    Another particularly irresponsible cut targets the GSA, 
which functions as the Federal Government's developer and 
landlord. The bill decimates funding for the Federal Buildings 
Fund, forcing the agency to neglect high priority safety and 
security projects. This lack of sufficient funding for repair 
projects further exacerbates an already dire situation. 
Persistently inadequate appropriations for GSA in recent years 
have resulted in a $1.1 billion backlog for GSA's repairs and 
alterations programs. Again, these decisions do not make long-
term fiscal sense. Every dollar that GSA does not reinvest back 
into basic maintenance and repairs now leads to a long-term 
capital liability of four to five dollars in the future.
    In addition, zero funding for the new construction account 
at GSA means forgoing three critical Land Ports of Entry 
projects which would negatively impact the lawful trade, travel 
and the security of this country.
    The bill even inexplicably rescinds previously appropriated 
GSA funding for a much-needed consolidation and modernization 
for the headquarters of the Federal Bureau Investigations 
(FBI), which Rep. Dutch Ruppersberger offered an amendment to 
reverse. The current FBI headquarters is in such disrepair that 
it constitutes a national security threat by preventing FBI 
employees from having access to necessary and secure facilities 
to do their important work protecting our nation. This project 
has been years in the making, and this rescission takes our 
nation backward in addressing this urgently needed 
infrastructure improvement.
    The bill contains numerous funding levels and legislative 
text to make it easier for large financial institutions to 
return to the practices that led to the collapse of the U.S. 
economy in 2008. The Securities and Exchange Commission (SEC) 
is funded at $1.602 billion for core functions, an inadequate 
level that would ensure a lack of enforcement on Wall Street. 
Rep. Aguilar offered an amendment to boost resources for SEC 
that failed despite the fact that the proposed increase would 
be deficit neutral and does not spend taxpayer funds. 
Republicans are hiding behind false declarations of fiscal 
responsibility in order to pursue policies that are in fact 
aimed at protecting Wall Street interest.
    The Committee adopted an outrageous amendment that would 
significantly weaken consumer protections against Pyramid 
Schemes and make it easier for predatory businesses to target 
vulnerable populations, particularly immigrant communities.
    Most troubling is the inclusion of an eighty-eight page 
authorization bill that significantly rolls back enhanced 
consumer protections implemented through the landmark Dodd-
Frank Act. The distilled version of the majority's Financial 
Choice Act would repeal mechanisms put in place to ensure that 
American taxpayers are never again forced to bail out Wall 
Street and suffer personal financial ruin as a result of the 
reckless practices at irresponsible institutions. Not only is 
the content of this legislative proposal wrong-headed and 
dangerous, but it has no place hiding in an appropriations 
bill. Congress has a process for debating and enacting this 
type of law which allows for transparency and public input. 
Rep. Mark Pocan's amendment to strip that authorization was 
unanimously rejected by Republicans.
    The bill continues the Republican tradition of interfering 
in the local affairs of the District of Columbia by restricting 
the District from spending its own funds with autonomy. As in 
past years, the bill contains a variety of provisions that 
impose limits on the District's ability to govern itself. Even 
worse, a disappointing Republican amendment was adopted 
prohibiting the District of Columbia from implementing a new 
law adopted by its locally elected government to allow city 
residents access to medical aid in dying in certain cases. We 
were particularly offended by the statement in Committee that 
the law would encourage terminally ill persons to flock to the 
District to obtain such aid, when the law clearly makes such 
aid available only to its residents.
    Democrats also tried to roll back the provisions that 
interfere in women's health decisions. Our Republican 
colleagues evidently are not satisfied with the restrictions 
already in place under current law, so this year's FSGG 
appropriations bill carries a new provision to make it even 
more difficult for a woman to purchase the health insurance she 
wants. Federal law already prohibits Federal funds from being 
used to pay for abortion services, so these poison-pill riders 
are utterly unnecessary. Mrs. Lowey offered an amendment to 
strike these harmful provisions and protect a woman's right to 
make legal and private health choices without government 
interference. By opposing adoption of this important amendment 
while passing the amendment related to medical aid in dying, 
the Republican Majority continued its hypocritical allegiance 
to limited government, until it concerns a women's right to 
choose or an individual's right to die in a manner of his or 
her choosing under a doctor's care.
    In an attempt to undermine the Affordable Care Act, this 
bill blocks the IRS from enforcing the individual coverage 
mandate. This will create greater uncertainty within individual 
healthcare exchanges around the country and cause insurance 
premiums to rise substantially. The American people have made 
it increasingly clear that they want Congress to fix the ACA, 
not sabotage it. That's why we were extremely disappointed that 
the Republicans would not agree to Rep. Quigley's amendment to 
repeal this harmful rider.
    Rep. Aguilar offered an amendment, which passed by voice 
vote, to make sure that Dreamers, certain non-criminal 
immigrants that entered the country as children and remain 
without U.S. citizenship, can lend their talents to the Federal 
workforce. Democrats will work to ensure that this language 
remains intact.
    Unfortunately, that was the only case of success in our 
attempts to oppose the long list of ideological riders in the 
bill. Two common-sense amendments were not adopted that would 
have prevented President Trump's so-called Commission on 
Election Integrity from compelling states to share non-publicly 
available individual voting data. Republican and Democratic 
Governors alike have objected to the Trump administration's 
federal overreach and violation of privacy for individual 
voters.
    All across the bill, similarly unwise cuts will reduce the 
ability of the government to effectively protect consumers and 
investors and investigate tax cheats and collect revenues. The 
bill will also necessitate the furlough of many hundreds of 
federal and private workers, increase unemployment, and reduce 
vital services to the public. Overall, the proposed spending 
reductions are not fiscally responsible since they will 
actually increase costs in the future through reduced revenue 
and diminished enforcement. As a consequence, we are gravely 
concerned that the bill fails to make the necessary investments 
to confront the challenges facing this nation. Of equal concern 
are the reckless and ill-advised policy riders that do not 
belong on an appropriations bill. Many of these provisions 
threaten to impose even greater damage to the nation's 
democratic principles and core financial infrastructure.

                                   Mike Quigley.
                                   Nita M. Lowey.

 ADDITIONAL VIEWS OF ROBERT B. ADERHOLT, JOHN ABNEY CULBERSON, JOHN R. 
  CARTER, KEN CALVERT, TOM COLE, TOM GRAVES, STEVE WOMACK, THOMAS J. 
  ROONEY, CHARLES J. FLEISCHMANN, DAVID P. JOYCE, ANDY HARRIS, MARTHA 
ROBY, CHRIS STEWART, DAVID YOUNG, EVAN H. JENKINS, STEVEN PALAZZO, AND 
                           JOHN R. MOOLENAAR

    During Full Committee markup, Representative Aguilar of 
California offered an amendment regarding work eligibility for 
Deferred Action for Childhood Arrivals participants, which 
resulted in the adoption of Section 746 in the bill.
    Each of us voted no, however the amendment passed by voice 
vote. Had this amendment received a roll call vote, each of us 
would have voted no then as well.

                                   Robert Aderholt.
                                   John R. Carter.
                                   Tom Cole.
                                   Steve Womack.
                                   Charles J. Fleischmann.
                                   Andy Harris.
                                   Chris Stewart.
                                   Evan H. Jenkins.
                                   John R. Moolenaar.
                                   John Abney Culberson.
                                   Ken Calvert.
                                   Tom Graves.
                                   Thomas J. Rooney.
                                   David P. Joyce.
                                   Martha Roby.
                                   David Young.
                                   Steven Palazzo.
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