I 

113TH CONGRESS 

1ST SESSION H. R. 2402 

To replace the Director of the Bureau of Consumer Financial Protection 

with a five person Commission. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 17, 2013 

Mr. DUFFY introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To replace the Director of the Bureau of Consumer Financial 

Protection with a five person Commission. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Financial 

5 Protection Commission Act of 2013’’. 

6 SEC. 2. ESTABLISHMENT OF THE COMMISSION. 

7 Section 1011 of the Consumer Financial Protection 

8 Act of 2010 is amended— 

9 (1) by striking subsections (b), (c), and (d); 

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1 (2) by redesignating subsection (e) as sub2 section (j); and 

3 (3) by inserting after subsection (a) the fol4 lowing new subsections: 

5 ‘‘(b) ESTABLISHMENT OF THE COMMISSION.— 

6 ‘‘(1) IN GENERAL.—There is hereby established 

7 a commission (hereinafter referred to in this section 

8 as the ‘Commission’) that shall serve as the head of 

9 the Bureau. 

10 ‘‘(2) AUTHORITY TO PRESCRIBE REGULA11 TIONS.—The Commission may prescribe such regu12 lations and issue such orders in accordance with this 

13 title as the Commission may determine to be nec14 essary for carrying out this title and all other laws 

15 within the Commission’s jurisdiction and shall exer16 cise any authorities granted under this title and all 

17 other laws within the Commission’s jurisdiction. 

18 ‘‘(c) COMPOSITION OF THE COMMISSION.— 

19 ‘‘(1) IN GENERAL.—The Commission shall be 

20 composed of the Vice Chairman for Supervision of 

21 the Federal Reserve System and 4 additional mem22 bers who shall be appointed by the President, by and 

23 with the advice and consent of the Senate, from 

24 among individuals who— 

25 ‘‘(A) are citizens of the United States; 

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1 ‘‘(B) have strong competencies and experi2 ences related to consumer financial protection; 

3 and 

4 ‘‘(C) should want to protect service mem5 bers and their families who are sacrificing their 

6 lives for this country from abusive financial 

7 practices. 

8 ‘‘(2) STAGGERING.—The members of the Com9 mission appointed under paragraph (1) shall serve 

10 staggered terms, which initially shall be established 

11 by the President for terms of 1, 2, 4, and 5 years, 

12 respectively. 

13 ‘‘(3) TERMS.— 

14 ‘‘(A) IN GENERAL.—Each member of the 

15 Commission appointed under paragraph (1), in16 cluding the Chair, shall serve for a term of 5 

17 years. 

18 ‘‘(B) REMOVAL FOR CAUSE.—The Presi19 dent may remove any member of the Commis20 sion appointed under paragraph (1) only for in21 efficiency, neglect of duty, or malfeasance in of22 fice. 

23 ‘‘(C) VACANCIES.—Any member of the 

24 Commission appointed under paragraph (1) ap25 pointed to fill a vacancy occurring before the 

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1 expiration of the term to which that member’s 

2 predecessor was appointed (including the Chair) 

3 shall be appointed only for the remainder of the 

4 term. 

5 ‘‘(D) CONTINUATION OF SERVICE.—Each 

6 member of the Commission appointed under 

7 paragraph (1) may continue to serve after the 

8 expiration of the term of office to which that 

9 member was appointed until a successor has 

10 been appointed by the President and confirmed 

11 by the Senate, except that a member may not 

12 continue to serve more than 1 year after the 

13 date on which that member’s term would other14 wise expire. 

15 ‘‘(E) OTHER EMPLOYMENT PROHIBITED.— 

16 No member of the Commission appointed under 

17 paragraph (1) shall engage in any other busi18 ness, vocation, or employment. 

19 ‘‘(4) ROLES AND RESPONSIBILITIES OF COM20 MISSIONERS.—One member of the Commission shall 

21 have as their primary responsibility the oversight of 

22 the Bureau’s activities pertaining to protecting con23 sumers, with a focus on consumers who are older, 

24 minorities, youth, or veterans, from unfair, decepmstockstill on DSK4VPTVN1PROD with BILLS

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1 tive, and abusive lending practices. The designated 

2 commissioner shall be responsible for— 

3 ‘‘(A) ensuring the Bureau conducts regular 

4 outreach to consumers regarding industry lend5 ing activities; 

6 ‘‘(B) researching and reporting to the full 

7 Commission, on a regular basis, the impact of 

8 new loan and credit products and services on 

9 consumers; and 

10 ‘‘(C) ensuring the Bureau coordinates with 

11 State-level consumer protection agencies on en12 forcement measures that protect consumers 

13 from unfair, deceptive, and abusive lending 

14 practices. 

15 ‘‘(d) AFFILIATION.—With respect to members ap16 pointed pursuant to subsection (c)(1), not more than 2 

17 shall be members of any one political party. 

18 ‘‘(e) CHAIR OF THE COMMISSION.— 

19 ‘‘(1) APPOINTMENT.—The Chair of the Com20 mission shall be appointed by the President from 

21 among the members of the Commission appointed 

22 under paragraph (1). 

23 ‘‘(2) AUTHORITY.—The Chair shall be the prin24 cipal executive officer of the Bureau, and shall exermstockstill on DSK4VPTVN1PROD with BILLS

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1 cise all of the executive and administrative functions 

2 of the Bureau, including with respect to— 

3 ‘‘(A) the appointment and supervision of 

4 personnel employed under the Bureau (other 

5 than personnel employed regularly and full time 

6 in the immediate offices of members of the 

7 Commission other than the Chair); 

8 ‘‘(B) the distribution of business among 

9 personnel appointed and supervised by the 

10 Chair and among administrative units of the 

11 Bureau; and 

12 ‘‘(C) the use and expenditure of funds. 

13 ‘‘(3) LIMITATION.—In carrying out any of the 

14 Chair’s functions under the provisions of this sub15 section the Chair shall be governed by general poli16 cies of the Commission and by such regulatory deci17 sions, findings, and determinations as the Commis18 sion may by law be authorized to make. 

19 ‘‘(4) REQUESTS OR ESTIMATES RELATED TO

20 APPROPRIATIONS.—Requests or estimates for reg21 ular, supplemental, or deficiency appropriations on 

22 behalf of the Commission may not be submitted by 

23 the Chair without the prior approval of the Commis24 sion. 

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1 ‘‘(f) NO IMPAIRMENT BY REASON OF VACANCIES.— 

2 No vacancy in the members of the Commission shall im3 pair the right of the remaining members of the Commis4 sion to exercise all the powers of the Commission. Three 

5 members of the Commission shall constitute a quorum for 

6 the transaction of business, except that if there are only 

7 3 members serving on the Commission because of vacan8 cies in the Commission, 2 members of the Commission 

9 shall constitute a quorum for the transaction of business. 

10 If there are only 2 members serving on the Commission 

11 because of vacancies in the Commission, 2 members shall 

12 constitute a quorum for the 6-month period beginning on 

13 the date of the vacancy which caused the number of Com14 mission members to decline to 2. 

15 ‘‘(g) SEAL.—The Commission shall have an official 

16 seal. 

17 ‘‘(h) COMPENSATION.— 

18 ‘‘(1) CHAIR.—The Chair shall receive com19 pensation at the rate prescribed for level I of the 

20 Executive Schedule under section 5313 of title 5, 

21 United States Code. 

22 ‘‘(2) OTHER MEMBERS OF THE COMMISSION.— 

23 The 3 other members of the Commission appointed 

24 under subsection (c)(1) shall each receive compensa25 tion at the rate prescribed for level II of the Execumstockstill on DSK4VPTVN1PROD with BILLS

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1 tive Schedule under section 5314 of title 5, United 

2 States Code. 

3 ‘‘(i) INITIAL QUORUM ESTABLISHED.—During any 

4 time period prior to the confirmation of at least two mem5 bers of the Commission, one member of the Commission 

6 shall constitute a quorum for the transaction of business. 

7 Following the confirmation of at least 2 additional com8 missioners, the quorum requirements of subsection (f) 

9 shall apply.’’. 

10 SEC. 3. CONFORMING AMENDMENTS. 

11 (a) CONSUMER FINANCIAL PROTECTION ACT OF

12 2010.— 

13 (1) IN GENERAL.—The Consumer Financial 

14 Protection Act of 2010 is amended— 

15 (A) in section 1002, by striking paragraph 

16 (10); 

17 (B) in section 1012(c)(4), by striking ‘‘Di18 rector’’ each place such term appears and in19 serting ‘‘Commission of the Bureau’’; 

20 (C) in section 1013(c)(3)— 

21 (i) by striking ‘‘Assistant Director of 

22 the Bureau for’’ and inserting ‘‘Head of 

23 the Office of’’; and 

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1 (ii) in subparagraph (B), by striking 

2 ‘‘Assistant Director’’ and inserting ‘‘Head 

3 of the Office’’; 

4 (D) in section 1013(g)(2)— 

5 (i) by striking ‘‘ASSISTANT DIREC6 TOR’’ and inserting ‘‘HEAD OF THE OF7 FICE’’; and 

8 (ii) by striking ‘‘an assistant director’’ 

9 and inserting ‘‘a Head of the Office of Fi10 nancial Protection for Older Americans’’; 

11 (E) in section 1016(a), by striking ‘‘Direc12 tor of the Bureau’’ and inserting ‘‘Chair of the 

13 Commission’’; 

14 (F) in section 1017(c)(1), by striking ‘‘Di15 rector and other employees’’ and inserting 

16 ‘‘members of the Commission and other employ17 ees’’; 

18 (G) in section 1027(l)(1), by striking ‘‘Di19 rector and the’’; and 

20 (H) in section 1066(a), by striking ‘‘Direc21 tor of the Bureau is’’ and inserting ‘‘first mem22 ber of the Commission is’’. 

23 (2) GLOBAL AMENDMENTS.—The Consumer Fi24 nancial Protection Act of 2010 is amended— 

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1 (A) by striking ‘‘Director of the’’ each 

2 place such term appears, other than in— 

3 (i) subparagraphs (A) and (E) of sec4 tion 1017(4); 

5 (ii) section 1043; 

6 (iii) section 1061(b)(3); 

7 (iv) section 1062; 

8 (v) section 1063(f); 

9 (vi) subparagraphs (E) and (G) of 

10 section 1064(i)(2); and 

11 (vii) section 1065(a); and 

12 (B) by striking ‘‘Director’’ each place such 

13 term appears and inserting ‘‘Bureau’’, other 

14 than in— 

15 (i) section 1063(f)(2); and 

16 (ii) section 1065(a). 

17 (b) DODD-FRANK WALL STREET REFORM AND CON18 SUMER PROTECTION ACT.—The Dodd-Frank Wall Street 

19 Reform and Consumer Protection Act is amended— 

20 (1) in section 111(b)(1)(D), by striking ‘‘Direc21 tor’’ and inserting ‘‘Chair of the Commission’’; and 

22 (2) in section 1447, by striking ‘‘Director of the 

23 Bureau’’ each place such term appears and inserting 

24 ‘‘Bureau’’. 

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1 (c) ELECTRONIC FUND TRANSFER ACT.—Section 

2 921(a)(4)(C) of the Electronic Fund Transfer Act, as 

3 added by section 1075(a)(2) of the Consumer Financial 

4 Protection Act of 2010, is amended by striking ‘‘Director 

5 of the Bureau of Consumer Financial Protection’’ and in6 serting ‘‘Bureau of Consumer Financial Protection’’. 

7 (d) EXPEDITED FUNDS AVAILABILITY ACT.—The 

8 Expedited Funds Availability Act, as amended by section 

9 1086 of the Consumer Financial Protection Act of 2010, 

10 is amended by striking ‘‘Director of the Bureau’’ each 

11 place such term appears and inserting ‘‘Bureau’’. 

12 (e) FEDERAL DEPOSIT INSURANCE ACT.—Section 2 

13 of the Federal Deposit Insurance Act, as amended by sec14 tion 336(a) of the Dodd-Frank Wall Street Reform and 

15 Consumer Protection Act, is amended by striking ‘‘Direc16 tor of the Consumer Financial Protection Bureau’’ each 

17 place such term appears and inserting ‘‘Chair of the Com18 mission of the Bureau of Consumer Financial Protection’’. 

19 (f) FEDERAL FINANCIAL INSTITUTIONS EXAMINA20 TION COUNCIL ACT OF 1978.—Section 1004(a)(4) of the 

21 Federal Financial Institutions Examination Council Act of 

22 1978 (12 U.S.C. 3303(a)(4)), as amended by section 1091 

23 of the Consumer Financial Protection Act of 2010, is 

24 amended by striking ‘‘Director of the Consumer Financial 

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1 Protection Bureau’’ and inserting ‘‘Chair of the Commis2 sion of the Bureau of Consumer Financial Protection’’. 

3 (g) FINANCIAL LITERACY AND EDUCATION IM4 PROVEMENT ACT.—Section 513 of the Financial Literacy 

5 and Education Improvement Act, as amended by section 

6 1013(d) of the Consumer Financial Protection Act of 

7 2010, is amended by striking ‘‘Director’’ each place such 

8 term appears and inserting ‘‘Chair of the Commission’’. 

9 (h) HOME MORTGAGE DISCLOSURE ACT OF 1975.— 

10 Section 307 of the Home Mortgage Disclosure Act of 

11 1975, as amended by section 1094(6) of the Consumer 

12 Financial Protection Act of 2010, is amended by striking 

13 ‘‘Director of the Bureau of Consumer Financial Protec14 tion’’ each place such term appears and inserting ‘‘Bureau 

15 of Consumer Financial Protection’’. 

16 (i) INTERSTATE LAND SALES FULL DISCLOSURE

17 ACT.—The Interstate Land Sales Full Disclosure Act, as 

18 amended by section 1098A of the Consumer Financial 

19 Protection Act of 2010, is amended— 

20 (1) by amending section 1402(1) to read as fol21 lows: 

22 ‘‘(1) ‘Chair’ means the Chair of the Commission of 

23 the Bureau of Consumer Financial Protection;’’; 

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1 (2) in section 1416(a), by striking ‘‘Director of 

2 the Bureau of Consumer Financial Protection’’ and 

3 inserting ‘‘Chair’’; and 

4 (3) by striking ‘‘Director’’ each place such term 

5 appears and inserting ‘‘Bureau’’. 

6 (j) REAL ESTATE SETTLEMENT PROCEDURES ACT

7 OF 1974.—Section 5 of the Real Estate Settlement Proce8 dures Act of 1974, as amended by section 1450 of the 

9 Dodd-Frank Wall Street Reform and Consumer Protec10 tion Act, is amended— 

11 (1) by striking ‘‘The Director of the Bureau of 

12 Consumer Financial Protection (hereafter in this 

13 section referred to as the ‘Director’)’’ and inserting 

14 ‘‘The Bureau of Consumer Financial Protection’’; 

15 and 

16 (2) by striking ‘‘Director’’ each place such term 

17 appears and inserting ‘‘Bureau’’. 

18 (k) S.A.F.E. MORTGAGE LICENSING ACT OF 2008.— 

19 The S.A.F.E. Mortgage Licensing Act of 2008, as amend20 ed by section 1100 of the Consumer Financial Protection 

21 Act of 2010, is amended— 

22 (1) by striking ‘‘Director’’ each place such term 

23 appears in headings and text and inserting ‘‘Bu24 reau’’; and 

25 (2) in section 1503, by striking paragraph (10). 

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1 (l) TITLE 44, UNITED STATES CODE.—Section 

2 3513(c) of title 44, United States Code, as amended by 

3 section 1100D(b) of the Consumer Financial Protection 

4 Act of 2010, is amended by striking ‘‘Director of the Bu5 reau’’ and inserting ‘‘Bureau’’. 

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