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[House Report 115-792]
[From the U.S. Government Publishing Office]

115th Congress  }                                    {  Report
2d Session      }      HOUSE OF REPRESENTATIVES      {  115-792
                                                       
_______________________________________________________________________

                                     

                     FINANCIAL SERVICES AND GENERAL
                  GOVERNMENT APPROPRIATIONS BILL, 2019

                               ----------                              

                              R E P O R T

                                 of the

                       COMMITTEE ON APPROPRATIONS

                             together with

                            DISSENTING VIEWS

                        [TO ACCOMPANY H.R. 6258]
                        
                        

 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
 
 

 June 28, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
              
              
              
              

  
115th Congress }                                            {   Report
 2d Session    }         HOUSE OF REPRESENTATIVES           {  115-792
                                                                
_______________________________________________________________________

                                     

                     FINANCIAL SERVICES AND GENERAL

                  GOVERNMENT APPROPRIATIONS BILL, 2019

                               __________

                              R E P O R T

                                 of the

                       COMMITTEE ON APPROPRATIONS

                             together with

                            DISSENTING VIEWS

                        [TO ACCOMPANY H.R. 6258]
                        
                        

 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

 June 28, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed       

              
                       _________ 
                                  
           U.S. GOVERNMENT PUBLISHING OFFICE
           
 30-568              WASHINGTON : 2018                    
              
              
              
              
              
              
              

115th Congress   }                                           {    Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                           {   115-792

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

 
  FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2019

                                _______
                                

 June 28, 2018.--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

                            DISSENTING VIEWS

                        [To accompany H.R. 6258]

    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, 2019.

                        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..........................    33
                                                                     24
Title III--The Judiciary...................................    47
                                                                     32
Title IV--District of Columbia.............................    57
                                                                     37
Title V--Independent Agencies..............................    68
                                                                     42
Administrative Conference of the United States.............    68
                                                                     42
Bureau of Consumer Financial Protection....................
                                                                     42
Consumer Product Safety Commission.........................    68
                                                                     43
Election Assistance Commission.............................    70
                                                                     44
Federal Communications Commission..........................    70
                                                                     44
Federal Deposit Insurance Corporation--Office of Inspector 
    General................................................    72
                                                                     47
Federal Election Commission................................    72
                                                                     48
Federal Labor Relations Authority..........................    73
                                                                     48
Federal Trade Commission...................................    74
                                                                     49
General Services Administration............................    75
                                                                     49
Harry S Truman Scholarship Foundation......................    88
                                                                     59
Merit Systems Protection Board.............................    88
                                                                     59
National Archives and Records Administration...............    89
                                                                     60
National Credit Union Administration.......................    90
                                                                     61
Office of Government Ethics................................    91
                                                                     62
Office of Personnel Management.............................    91
                                                                     62
Office of Special Counsel..................................    95
                                                                     65
Postal Regulatory Commission...............................    96
                                                                     65
Privacy and Civil Liberties Oversight Board................    96
                                                                     66
Public Buildings Reform Board..............................    97
                                                                     66
Securities and Exchange Commission.........................    97
                                                                     66
Selective Service System...................................    99
                                                                     68
Small Business Administration..............................   100
                                                                     68
United States Postal Service...............................   105
                                                                     73
United States Tax Court....................................   106
                                                                     75
Title VI--General Provisions--This Act.....................   107
                                                                     75
Title VII--General Provisions--Government-wide: 
    Departments, Agencies, and Corporations................   122
                                                                     78
Title VIII--General Provisions--District of Columbia.......   155
                                                                     81
Title IX--Financial Reform.................................   168
                                                                     83
Title X--Email Privacy.....................................   294
                                                                     83
Title XI--Amateur Radio Parity Act.........................   305
                                                                     83
Title XII--Additional General Provision--Spending Reduction 
    Account................................................   311
                                                                     83
House of Representatives Reporting Requirements............
                                                                     83
Dissenting Views...........................................
                                                                    432

                         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 $23,423,000,000 in 
discretionary budget authority for fiscal year 2019 which is 
the same as the fiscal year 2018 discretionary allocation. The 
bill is $3,164,000 or 12 percent, below the Administration's 
request.

                         TOTAL BUDGET AUTHORITY
                             ($ in millions)
------------------------------------------------------------------------
                                  FY 2018      FY 2019        FY 2019
                                  Enacted      Request    Recommendation
------------------------------------------------------------------------
Discretionary.................       23,423       26,587          23,423
Mandatory.....................       22,388       22,406          22,406
------------------------------------------------------------------------

              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 28, 2019. 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 2020 
to the fiscal year 2019 enacted levels.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $201,751,000
Budget request, fiscal year 2019......................       201,751,000
Recommended in the bill...............................       208,751,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +7,000,000
    Budget request, fiscal year 2019..................        +7,000,000
 

    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 $208,751,000 
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.
    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 includes one insurance company. 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.
    The Committee is concerned about the ongoing discussions 
held by the IAIS to develop a global Insurance Capital Standard 
(ICS). The Committee believes the U.S. agencies party to those 
negotiations must appropriately fulfill their duties to 
advocate for the U.S. insurance market and the U.S. system of 
insurance regulation. 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 any 
U.S. agency accedes to any ICS 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) discussions 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.
    State-based Insurance.--The U.S. has a strong history of 
promoting State-based regulation of the business of insurance. 
The Committee remains concerned about preemption of these 
effective State-based regulatory models, including those 
products that helps consumers manage the risks associated with 
owning a motor vehicle. Furthermore, the Committee supports 
these products being regulated by State insurance commissioners 
and reiterates that they are exempt under the Dodd-Frank Act 
from direct oversight by the Consumer Financial Protection 
Bureau (CFPB).
    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 the Senate 
describing how the Department has used its authority to provide 
technical assistance to Puerto Rico in fiscal year 2018 and how 
it plans to use it in fiscal year 2019.
    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 
the Senate, the Committee on Financial Services of the House, 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate within 180 days of enactment of this Act on the status 
of this collaboration and ways to improve cybersecurity 
controls and safeguards.
    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.
    Committee on Foreign Investment in the United States.--The 
Committee expects that CFIUS will enhance its process for 
monitoring transactions that are not notified to CFIUS to 
maintain CFIUS's effectiveness in guarding against transactions 
that pose national security risks. Member agencies of the 
Committee on Foreign Investment in the United States (CFIUS), 
working with Treasury, as chair of CFIUS, should conduct an 
assessment to better understand the staffing levels needed by 
their agencies to address the current and projected CFIUS 
workload.

             OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $141,778,000
Budget request, fiscal year 2019......................       159,000,000
Recommended in the bill...............................       161,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +19,222,000
    Budget request, fiscal year 2019..................        +2,000,000
 

    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 regards to 
foreign intelligence and counterintelligence across all 
elements of the national security community.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $161,000,000 
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.
    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.
    Human Rights Sanctions Enforcement.--Government-sanctioned 
abuses of human rights around the world have been on the rise 
as authoritarianism increases. Multiple frameworks for human 
rights abuse sanctions enforcement exist, including the Sergei 
Magnitsky Rule of Law Accountability Act, the Global Magnitsky 
Human Rights Accountability Act, Countering America's 
Adversaries through Sanctions Act, and the Comprehensive Iran 
Sanctions Accountability and Divestment Act, among others. 
These Congressionally mandated sanctions, along with sanctions 
imposed by Executive Order, are an important tool in 
discouraging human rights abuses and targeting those who 
violate human rights norms. The Committee supports robust 
enforcement of human rights abuse related sanctions and intends 
for funding to be used to enhance expertise and investigatory 
capacity for sanctions investigations, policy development, and 
enforcement of sanctions.

                   CYBERSECURITY ENHANCEMENT ACCOUNT

 
 
 
Appropriation, fiscal year 2018.......................       $24,000,000
Budget request, fiscal year 2019......................        25,208,000
Recommended in the bill...............................        25,208,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +1,208,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $25,208,000 
for the Cybersecurity Enhancement Account.
    The Treasury Chief Information Officer (CIO) is directed to 
review and approve each investment under the CEA and report to 
the Committees on Appropriations of the House and the Senate 
each quarter on the progress of each investment. To ensure the 
Treasury CIO retains control over the execution of these funds, 
the agreement does not permit transfers of funds from the CEA.
    Spend Plans.--The CIO of each Treasury office and bureau 
must submit a spend plan for each prospective investment under 
this heading to the Treasury Department CIO for review. The 
Treasury CIO is directed to review each investment submitted 
under the CEA heading to improve oversight of these funds 
across the Department; none of the funds under this heading 
will be available to fund such an investment without the 
approval of the Treasury CIO. The spend plans should include 
how the investment will: enhance Department-wide coordination 
of cybersecurity efforts and improve the Department's 
responsiveness to cybersecurity threats; provide bureau and 
agency leadership with greater visibility into cybersecurity 
efforts and further encourage information sharing across 
bureaus; improve identification of cyber threats and better 
protect information systems from attack; provide a platform to 
enhance efficient communication, collaboration, and 
transparency around the common goal of improving not only the 
cybersecurity of the Treasury Department, but also the Nation's 
financial sector. The spend plans should detail the type of 
cybersecurity enhancement the investment represents, and the 
cost, scope, schedule of the investment, and explain how it 
complements existing cyber efforts.

        DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................        $4,426,000
Budget request, fiscal year 2019......................         4,000,000
Recommended in the bill...............................         8,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +3,574,000
    Budget request, fiscal year 2019..................        +4,000,000
 

    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 $8,000,000 for 
Department-wide Systems and Capital Investments Programs 
(DSCIP).

                 Fund for America's Kids and Grandkids

 
 
 
Appropriation, fiscal year 2018.......................             - - -
Budget request, fiscal year 2019......................             - - -
Recommended in the bill...............................      $585,000,000
Bill compared with:
 Appropriation, fiscal year 2018......................      +585,000,000
 Budget request, fiscal year 2019.....................      +585,000,000
 

    The Fund for America's Kids and Grandkids is established to 
fund activities to further government efficiency, and through 
those efficiencies reduce the overall cost to operate 
government programs. Funds are not available until the 
Secretary of the Treasury certifies in the annual Report of the 
United States Government that the Federal government is 
operating either at a surplus or zero deficit. The 2017 Report 
issued by the Secretary of the Treasury on February 15, 2018, 
reported a deficit of approximately $665,700,000,000.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $585,000,000 
for the Fund for America's Kids and Grandkids.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $37,044,000
Budget request, fiscal year 2019......................        36,000,000
Recommended in the bill...............................        37,044,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +1,044,000
 

    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 $37,044,000 
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 2018.......................      $169,634,000
Budget request, fiscal year 2019......................       161,113,000
Recommended in the bill...............................       170,834,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +1,200,000
    Budget request, fiscal year 2019..................        +9,721,000
 

    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 $170,834,000 
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.

    Special Inspector General for the Troubled Asset Relief Program

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $34,000,000
Budget request, fiscal year 2019......................        17,500,000
Recommended in the bill...............................        28,800,000
Bill compared with:
    Appropriation, fiscal year 2018...................        -5,200,000
    Budget request, fiscal year 2019..................       +11,300,000
 

    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 $28,800,000 
for SIGTARP.

                  Financial Crimes Enforcement Network

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $115,003,000
Budget request, fiscal year 2019......................       117,800,000
Recommended in the bill...............................       117,800,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +2,797,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $117,800,000 
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.

                      Bureau of the Fiscal Service

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $338,280,000
Budget request, fiscal year 2019......................       330,837,000
Recommended in the bill...............................       338,280,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +7,443,000
 

    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 $338,280,000 
for the Fiscal Service. Of the funds provided, $4,210,000 is 
available until September 30, 2021, for information systems 
modernization.
    DATA Act.--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 the 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.
    Do Not Pay Business Center.--Do Not Pay (DNP) was 
established to help federal agencies comply with the Improper 
Payments Elimination and Recovery Improvement Act of 2012 by 
supporting efforts to prevent and detect improper payments. DNP 
helps reduce the number of improper payments by providing 
agencies streamlined access to relevant data sources when 
evaluating pre-award, pre-payment eligibility verification 
process as well as anytime during the payment lifecycle. OMB 
approves DNPs access to relevant data sources. In order to 
ensure timely approvals by OMB of new data sources for DNP, 
including commercial data sources, the Committee encourages 
Treasury and OMB to identify opportunities to make the data 
source review process more efficient, including automatically 
approving requests for new data sources that are pending more 
than 30 days; creating an approved data source list; 
identifying publicly available data sources for approval; and 
creating baseline criteria standards for data sources that 
automatically trigger approval, as well as any other efforts 
that will help prevent, reduce, and stop improper payments, and 
prevent waste, fraud, and abuse.

                Alcohol and Tobacco Tax and Trade Bureau

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $111,439,000
Budget request, fiscal year 2019......................       114,427,000
Recommended in the bill...............................       123,527,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +12,088,000
    Budget request, fiscal year 2019..................        +9,100,000
 

    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 $123,527,000 
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 the 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.

                           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 2019.

           Community Development Financial Institutions Fund

                            PROGRAM ACCOUNT

 
 
 
Appropriation, fiscal year 2018.......................      $250,000,000
Budget request, fiscal year 2019......................        14,000,000
Recommended in the bill...............................       216,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................       -34,000,000
    Budget request, fiscal year 2019..................      +202,000,000
 

    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 $216,000,000 
for the CDFI Fund program. Of the amounts provided, 
$121,000,000 is for financial and technical assistance grants, 
$3,000,000 is for CDFIs to provide technical and financial 
assistance to individuals with disabilities, $13,000,000 is for 
Native Initiatives, $19,000,000 is for the Bank Enterprise 
Award Program, $15,000,000 is for the Healthy Food Financing 
Initiative, 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 Fund 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 the 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 $11,616,554,000 for the 
IRS, which is $186,000,000 above the fiscal year 2018 enacted 
level. The fiscal year 2019 funding level includes dedicated 
funds in the amount of $77,000,000 to assist with the 
implementation of tax reform for the 2018 filing season. 
Additionally, the fiscal year 2019 amount incorporates 
increases to modernize IRS's information technology systems.
    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;
           Require extensive reporting on IRS spending 
        and information technology; and
           Provide TIGTA with $170,834,000 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 2018.......................  \1\$2,506,554,00
                                                                       0
Budget request, fiscal year 2019......................     2,241,000,000
Recommended in the bill...............................     2,491,554,000
Bill compared with:
    Appropriation, fiscal year 2018...................       -15,000,000
    Budget request, fiscal year 2019..................      +250,554,000
 
\1\As directed by Public Law 115-141, Division E, Section 113 of the
  Administrative Provisions--Internal Revenue Service, $19,000,000 was
  transferred by the Commissioner of the Internal Revenue Service to the
  Taxpayer Services which increased the Taxpayer Services fiscal year
  2018 level from $2,506,554 to $2,525,554,000.

    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 $2,491,554,000 
for Taxpayer Services. Additional funds are provided in 
provision 113 of this Bill to assist the IRS with implementing 
the Tax Cuts and Jobs Act. These additional funds will provide 
a level of funding above the fiscal year 2018 enacted level for 
taxpayer Services. Within the amount provided, the Committee 
expects the IRS to sufficiently fund the Taxpayer Advocate 
Service and accommodate where possible their increased needs 
associated with the implementation of the Tax Cuts and Jobs 
Act.
    Synthetic Identity Theft.--The Committee is concerned about 
the rising incidence of synthetic identity fraud. In 2018, 
losses as a result of this fraud are projected to be about 
$8,000,000,000. The Committee urges the IRS to remain committed 
to addressing identity theft and fraud and to mitigate emerging 
threats.
    Prosecutions of Identity Theft.--The Committee remains 
highly concerned about the prosecutions of identity theft. The 
Committee directs the Treasury Inspector General for Tax 
Administration (TIGTA) to submit a report to the Committees on 
Appropriations of the House and the Senate not later than 120 
days after the date of enactment of this Act, detailing--(1) 
current efforts by the Internal Revenue Service to assist with 
the prosecution of violations of section 1028(a) or 1028A(a) of 
title 18, United States Code, wherein the defendant 
misrepresented himself or herself to be engaged in lawful 
activities on behalf of, or carrying out lawful duties as an 
officer or employee of the Internal Revenue Service; (2) 
overall trends in the commission of such offenses; (3) TIGTA's 
recommendations regarding what resources are needed to 
facilitate improved review and prosecution of such cases; and 
(4) information on what assistance the Internal Revenue Service 
may offer victims of such offenses.
    Identity Theft Tax Refund Fraud.--The Committee requires a 
report, reviewed by the National Taxpayer Advocate, from the 
IRS that covers 2010-2018 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 the Senate by June 1, 2019.
    Since 2015, the Government Accounting Office's High-Risk 
List has included IRS's efforts to address IDT refund fraud. 
The IRS launched an Identity Theft Tax Refund Fraud Information 
Sharing and Analysis Center (ISAC) pilot for the 2017 filing 
season. It aims to allow the IRS, states, and tax preparation 
industry partners to quickly share information on IDT refund 
fraud. The Committee agrees with GAO's recommendations to the 
IRS to ensure that (1) the ISAC better aligns with leading 
practices for effective pilot design, and (2) the ISAC 
Partnership develops an outreach plan to expand membership and 
improve understanding of the ISAC's benefits. The Committee 
looks forward to improved collaboration of the IRS and ISAC to 
reduce refund fraud.
    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.
    Safe Harbor.--The Committee instructs the IRS 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.
    Individual Mandate.-- In October 2017, the IRS announced 
for Tax Year 2017, ``the IRS will not consider a return 
complete and accurate if the taxpayer does not report full-year 
coverage, claim a coverage exemption, or report a shared 
responsibility payment on the tax return.'' The IRS further 
instructed ``to avoid refund and processing delays when filing 
2017 tax returns in 2018, taxpayers should indicate whether 
they and everyone on their return had health coverage, 
qualified for an exemption from the coverage requirement or are 
making an individual shared responsibility payment.'' The 
Committee directs the IRS to clarify agency policy regarding 
``silent returns'' before the beginning of the 2018 tax filing 
season.
    State and Local Pension Plans.--The Committee recommends 
that the Secretary of the Treasury and the Commissioner of the 
IRS initiate a review of the existing regulatory guidance in 
Revenue Ruling 2006-43,and issue a revised revenue ruling that 
allows state and local pension plan sponsors to give existing 
plan participants the choice to make certain elections between 
pension plans or plan tiers without changing the treatment of 
employer contributions under 26 U.S.C. 414(h).
    2D bar codes.--The Committee encourages the Internal 
Revenue Service (IRS) to require 2D bar codes on 2019 paper tax 
returns and tax preparer software to produce 2D bar codes on 
2019 tax return submissions. The 40 million paper tax returns 
submitted each year must be manually processed, this is 
expensive, time-consuming, and creates errors. 2D bar coding 
increases the quality of the data capture, reduces processing 
costs and improves fraud and identity theft detection.
    Self-Employed Tax Collection.--The Committee is concerned a 
shift towards self-employed and independent contracting within 
an increasingly gig-based economy will correspondingly increase 
underpayment and underreporting of self-employed taxes. The 
Committee directs the IRS to submit a letter briefing the 
Committees on Appropriations of the House and Senate within 90 
days of enactment of this Act, on the IRS's strategy to better-
identify and collect in underpayments of self-employed taxes 
each year.

                              ENFORCEMENT

 
 
 
Appropriation, fiscal year 2018.......................  \1\$4,860,000,00
                                                                       0
Budget request, fiscal year 2019......................     4,832,643,000
Recommended in the bill...............................     4,860,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................       +27,357,000
 
\1\As directed by Public Law 115-141, Division E, Section 113 of the
  Administrative Provisions--Internal Revenue Service, $10,000,000 was
  transferred by the Commissioner of the Internal Revenue Service to
  Enforcement which increased the Enforcement Account in fiscal year
  2018 from $4,860,000,000 to $4,870,000,000.

    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 $4,860,000,000 
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.
    Printed Forms and Instructions.--The Committee encourages 
the IRS to continue to provide printed forms and instructions 
to vulnerable populations, especially in rural communities 
where internet usage rates are below the national average.
    Improper Payments.--The Committee believes that confidence 
and trust within the tax administration system is paramount to 
a strong voluntary tax compliance system. Each year, the 
Internal Revenue Service shall present to the Committees of 
Appropriations of the House and the Senate a report identifying 
the improper payment rates of refundable credits by tax return 
preparers and subsequent steps taken by the Internal Revenue 
Service to correct the compliance errors. The Committee also 
directs the Internal Revenue service to report to the 
Committees of Appropriations of the House and the Senate as to 
how many tax preparers were referred to the Return Preparer 
Office of the IRS, Criminal Investigations or the Department of 
Justice.
    Debt Collection.--The Committee commends the IRS for 
implementing the private debt collection program through the 
Fixing America's Surface Transportation (FAST) Act (Pub. L. No. 
114-94). The Committee remains concerned, however, that the 
schedule for release of inactive debts going forward 
contradicts the explicit language of the authorizing statute 
and will result in far lower receipts and related compliance 
funding than the Joint Committee on Taxation estimated would 
result from the provision. The law requires all inactive debts 
to be released, excluding only certain debts specified in the 
law. The Committee reminds the IRS that a substantial amount of 
revenue for compliance activities can be retained by the IRS 
through full implementation of the program.
    Tax Gap.--The IRS estimates, that taxpayers collectively 
pay a bit more than 80% of the taxes they owe. This difference 
between the taxes people and businesses owe and what they pay 
on time is known as the tax gap which IRS estimated to be $458 
billion, on average, for 2008-2010. The Government Accounting 
Office recommends that IRS re-establish goals for improving 
voluntary compliance and develop and document a strategy that 
outlines how it will use its data to update compliance 
strategies to address the tax gap.

                           OPERATIONS SUPPORT

 
 
 
Appropriation, fiscal year 2018.......................  \1\$3,634,000,00
                                                                       0
Budget request, fiscal year 2019......................     4,312,724,000
Recommended in the bill...............................     3,988,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................      +354,000,000
    Budget request, fiscal year 2019..................      -324,724,000
 
\1\As directed by Public Law 115-141, Division E, Section 113 of the
  Administrative Provisions--Internal Revenue Service, $291,000,000 was
  transferred by the Commissioner of the Internal Revenue Service to
  Operations Support which increased Operations Support in fiscal year
  2018 from $3,638,446,000 to $3,925,000,000.

    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 $3,988,000,000 
for Operations Support.
    Obligations and Employment.--Not later than 45 days after 
the end of each quarter, the IRS shall submit reports on its 
activities to the Committees on Appropriations of the House and 
the Senate. 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 Government Accounting Office (GAO), no later 
than 30 days following the end of each calendar quarter in 
fiscal year 2019. 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 IRS's top five major 
information technology project activities. 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.
    Digital Workspace.--The Committee recognizes that digital 
workspaces can increase user productivity, enhance 
cybersecurity & management, while also allowing for workforce 
flexibility, and urges the Internal Revenue Service to leverage 
the use of digital workspaces.

                     BUSINESS SYSTEMS MODERNIZATION

 
 
 
Appropriation, fiscal year 2018.......................      $110,000,000
Budget request, fiscal year 2019......................       110,000,000
Recommended in the bill...............................       200,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +90,000,000
    Budget request, fiscal year 2019..................       +90,000,000
 

    The Business Systems Modernization (BSM) appropriation 
provides funding to modernize key business systems of the IRS. 
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 $200,000,000 
for BSM. The Committee continues to support IRS in its efforts 
to modernize its business systems such as CADE 2, the 
Enterprise Case Management System, and the Return Review 
Program. These systems enhance IRS's capabilities to better 
assist the taxpayer, 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 2019, 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 CADE 2, Enterprise Case Management System, 
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 CADE 2, Enterprise Case Management 
System, 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 CADE 2, 
Enterprise Case Management System, and Return Review Program 
activities for the year, as well as an assessment of the 
functionality achieved.
    IRS's IT Investments.--GAO has highlighted in its May 2018 
report (GAO-18-298) that IRS needs to make improvements on 
delivering major tax processing and fraud detection 
acquisitions, managing key risks associated with aging legacy 
systems, and addressing IT workforce gaps. These improvements 
are critical to IRS's management of its annual $2,600,000,000 
investment in IT. The Committee encourages the IRS to address 
GAO's recommendations and to prioritize those associated with 
the Customer Account Data Engine 2 and the Individual Master 
File.
    Identity Theft and Fraud Detection Filters.--In order to 
combat and reduce identity theft and refund fraud, the IRS has 
implemented a screening process using filters that flag 
potentially improper tax returns. Although these filters do 
identify improper returns and prevent improper refunds from 
being issued, they also have a high degree of inaccuracy with 
false positive rates averaging 62 percent for its identity 
theft filters and 66 percent for its refund fraud filters 
during calendar year 2017 (through September 30), according to 
the National Taxpayer Advocate. The Committee is concerned with 
these high rates of false positives and directs the IRS to 
submit a report to the Committees on Appropriations of the 
House and the Senate that identifies the number of legitimate 
filers impacted by the high false positive rates, sets forth a 
plan to reduce the false positive rates (including an 
assessment of the benefits of adopting predictive modeling to 
both improve detection of improper returns and reduce false 
positives), and addresses the potential cost savings of a lower 
false positive rate. This report shall be prepared in 
consultation with the National Taxpayer Advocate and shall be 
due no later than 90 days after enactment of this Act.

           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 the 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 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 106. The Committee continues a provision with 
modifications that prohibits the IRS from targeting U.S. 
citizens for exercising their First Amendment rights.
    Section 107. The Committee continues a provision with 
modifications that prohibits the IRS from targeting groups 
based on their ideological beliefs.
    Section 108. 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 109. 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 110. The Committee continues a provision with 
modifications that prohibits funds to violate the 
confidentiality of tax returns.
    Section 111. The Committee continues a provision with 
modifications that prohibits funds for pre-populated returns.
    Section 112. The Committee includes a new provision to 
prohibit funds for the IRS to deny tax exemption to a church 
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 of denied tax exemption is 
effective 90 days after such notification.
    Section 113. Provides $77,000,000 to be used solely for 
carrying out Public Law 115-97. The IRS is directed to provide 
the Committees on Appropriations of the House and the Senate no 
later than 30 days after the enactment of this Act, a detailed 
spending plan by account and object class for the funds 
provided. Additionally, the IRS is directed to submit quarterly 
spending plans broken out by account, and include, minimum, 
quarterly obligations and total obligations to date;actual and 
projected staffing levels; and updated timetables.

         ADMINISTRATIVE PROVISIONS--DEPARTMENT OF THE TREASURY

                     (INCLUDING TRANSFERS OF FUNDS)

    Section 114. 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 115. 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 116. 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 117. The Committee continues a provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the one dollar Federal Reserve note.
    Section 118. 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 119. The Committee continues a provision that 
requires congressional approval for the construction and 
operation of a museum by the United States Mint.
    Section 120. 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 the Senate 
committees of jurisdiction.
    Section 121. The Committee continues a provision deeming 
that funds for the Department of the Treasury's intelligence-
related activities are specifically authorized in fiscal year 
2019 until enactment of the Intelligence Authorization Act for 
fiscal year 2019.
    Section 122. 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 123. The Committee continues a provision that 
requires the Department to submit a capital investment plan.
    Section 124. The Committee continues a provision that 
requires a report on the Department's Franchise Fund.
    Section 125. 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 126. The Committee continues a provision that 
requires quarterly reports of the Office of Financial Research 
(OFR) and Office of Financial Stability.
    Section 127. The Committee includes a new provision that 
authorizes the Office of Terrorism and Financial Intelligence 
to reimburse Treasury Departmental Offices for reception and 
representation expenses to support activities of the Financial 
Action Task Force.
    Section 128. 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 129. 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 130. 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.
    Section 131. The Committee continues a provision that 
requires quarterly reports of the Office of Financial Research 
(OFR) and Office of Financial Stability.
    Section 132. The Committee includes a new provision 
requiring the OFR to provide public notice of not less than 90 
days before issuing a rule, report, or regulation.
    Section 133. The Committee includes a new provision that 
limits the fees available for obligation by the OFR to the 
amount provided in appropriations acts beginning in fiscal year 
2020. The Committee believes that the activities of OFR should 
be subject to the annual review of Congress.

 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 2018.......................       $55,000,000
Budget request, fiscal year 2019......................        55,000,000
Recommended in the bill...............................        55,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................       $12,917,000
Budget request, fiscal year 2019......................        13,081,000
Recommended in the bill...............................        13,081,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +164,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $13,081,000 
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 2018.......................          $750,000
Budget request, fiscal year 2019......................           750,000
Recommended in the bill...............................           750,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................        $4,187,000
Budget request, fiscal year 2019......................         4,187,000
Recommended in the bill...............................         4,187,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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.

        National Security Council and Homeland Security Council

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $11,800,000
Budget request, fiscal year 2019......................        13,500,000
Recommended in the bill...............................        13,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +1,200,000
    Budget request, fiscal year 2019..................          -500,000
 

    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 $13,000,000 
for the National Security Council and Homeland Security 
Council. The Committee's recommendation does not include a 
separate representation and reception appropriation.

                        Office of Administration

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $100,000,000
Budget request, fiscal year 2019......................       100,000,000
Recommended in the bill...............................       100,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................      $101,000,000
Budget request, fiscal year 2019......................       103,000,000
Recommended in the bill...............................       103,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +2,000,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $103,000,000 
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 Congressional Committees and 
provide an appropriate number of printed copies of the 
President's fiscal year 2019 budget request, including 
documents such as the Appendix, Historical Tables, and 
Analytical Perspectives.
    Personnel and Obligations Report.--The Committee continues 
direction to OMB to provide the Committees on Appropriations of 
the House and the 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 the 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.
    Social Cost of Carbon.--The Committee continues direction 
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, 2018, 
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 efforts to reduce online copyright 
infringement and promote meaningful protection of American 
intellectual property abroad. The Committee's recommendation 
includes no less than three FTEs dedicated solely to the Office 
of IPEC from OMB.
    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 the Senate within 120 days of 
enactment of this Act on how it is reducing improper payments 
to deceased individuals, and what initiatives have proven to be 
most effective.
    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. The Committee continues direction 
to OMB to develop standards to improve customer service for all 
agencies, and incorporate the standards into the performance 
plans required under 31 U.S.C. 1115.
    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, and highlight examples of where improved performance 
links to the budget in the fiscal year 2019 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 regularly 
assess the consistency and more importantly the accuracy of the 
information reported on USASpending.gov by federal agencies.

                 Office of National Drug Control Policy

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $18,400,000
Budget request, fiscal year 2019......................        17,400,000
Recommended in the bill...............................        17,400,000
Bill compared with:
    Appropriation, fiscal year 2018...................        -1,000,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $17,400,000 
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 the 
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.
    The Committee notes the importance of the High Intensity 
Drug Trafficking Areas (HIDTA) and the Drug-Free Communities 
(DFC) grant programs in combating the nation's opioid epidemic. 
The Committee further notes that the Office of National Drug 
Control Policy (ONDCP) ensures the HIDTA and DFC programs are 
equitably managed across federal, state, and local agencies and 
with the necessary interagency flexibility to address emerging 
threats. The Committee directs ONDCP to retain operational 
control over the HIDTA and DFC programs to maintain the 
interagency benefits needed to address the opioid crisis.
    The Committee strongly supports the ONDCP programs to 
reduce drug use and drug trafficking, and believes it is 
critical for ONDCP to remain a strong voice in the Executive 
Office and a visible presence nationally. The Committee 
emphasizes the importance of a comprehensive approach to 
combatting the epidemic and so directs ONDCP, in strategy 
development and resource allocation, to balance public health 
and public safety. In this balance, the Committee notes the 
importance of: identifying early intervention opportunities, 
improving access to preventative and prescriptive treatment, 
strengthening community and school-based education programs, 
and supporting long-term recovery.

                     Federal Drug Control Programs

             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................      $280,000,000
Budget request, fiscal year 2019......................             - - -
Recommended in the bill...............................       280,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................      +280,000,000
 

    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 49 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 $280,000,000 
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 2018 
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 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 2018.......................      $117,093,000
Budget request, fiscal year 2019......................        11,843,000
Recommended in the bill...............................       118,327,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +1,234,000
    Budget request, fiscal year 2019..................      +106,484,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $118,327,000 
for Other Federal Drug Control Programs. The recommended level 
for fiscal year 2019 is distributed among specific programs and 
activities as follows:

 
 
 
Drug-Free Communities.................................      $100,000,000
Drug court training and technical assistance..........         2,000,000
Model Drug Laws (Section 1105 of P.L. 109-469)........         1,250,000
CARA Activities (Section 103 of P.L. 114-198).........         3,000,000
Anti-Doping activities................................         9,500,000
World Anti-Doping Agency dues.........................         2,577,000
 

    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 2018.......................          $798,000
Budget request, fiscal year 2019......................         1,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +202,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $1,000,000 for unanticipated needs 
in fiscal year 2019.

              Information Technology Oversight and Reform

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................       $19,000,000
Budget request, fiscal year 2019......................        25,000,000
Recommended in the bill...............................        15,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        -4,000,000
    Budget request, fiscal year 2019..................       -10,000,000
 

    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 $15,000,000 
for information technology oversight activities.
    Information Technology Investment: Information Sharing.--
The Committee has provided funds through the Information 
Technology Oversight and Reform (ITOR) account and the new IT 
Modernization Fund, plus hundreds of millions of dollars across 
the many subcommittees, agencies, and accounts to improve the 
government's IT portfolio. Investments are made after numerous 
hearings, briefings, justifications, and work from auditors 
like inspector general offices and the Government 
Accountability Office are presented. Along with the authorizing 
committees of jurisdiction, the Committee takes the 
responsibility for improving IT investments while accounting 
for taxpayer dollars very seriously. It is surprising, then, 
when staff charged with administering the new IT Modernization 
Fund refuse to share findings and respond to queries from the 
very committees that made the Fund possible. The Committee 
directs OMB and GSA to work more collaboratively with the 
relevant committees of jurisdiction in order to better evaluate 
the needs of agencies and opportunities for improving IT across 
government.

                  Special Assistance to the President

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................        $4,288,000
Budget request, fiscal year 2019......................         4,288,000
Recommended in the bill...............................         4,288,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................          $302,000
Budget request, fiscal year 2019......................           302,000
Recommended in the bill...............................           302,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 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 
2019 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 $7,266,021,000 in discretionary funding for the 
Judiciary in fiscal year 2019.
    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 
$11,500,000 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.

                   Supreme Court of the United States

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $82,028,000
Budget request, fiscal year 2019......................        84,359,000
Recommended in the bill...............................        84,703,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +2,675,000
    Budget request, fiscal year 2019..................          +344,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $84,703,000 
for fiscal year 2019 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 2018.......................       $16,153,000
Budget request, fiscal year 2019......................        15,999,000
Recommended in the bill...............................        15,999,000
Bill compared with:
    Appropriation, fiscal year 2018...................          -154,000
    Budget request, fiscal year 2019..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $15,999,000 
for fiscal year 2019, 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 2018.......................       $31,291,000
Budget request, fiscal year 2019......................        31,274,000
Recommended in the bill...............................        32,016,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +725,000
    Budget request, fiscal year 2019..................          +742,000
 

                        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 $32,016,000 for fiscal year 
2019.

               United States Court of International Trade

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $18,889,000
Budget request, fiscal year 2019......................        19,070,000
Recommended in the bill...............................        19,450,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +561,000
    Budget request, fiscal year 2019..................          +380,000
 

                        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 $19,450,000 for fiscal year 
2019.

    Courts of Appeals, District Courts, and Other Judicial Services

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................    $5,099,061,000
Budget request, fiscal year 2019......................     5,132,543,000
Recommended in the bill...............................     5,167,961,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +68,900,000
    Budget request, fiscal year 2019..................       +35,418,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $5,167,961,000 
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 $8,475,000 for 
fiscal year 2019 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 2018.......................    $1,078,713,000
Budget request, fiscal year 2019......................     1,141,489,000
Recommended in the bill...............................     1,142,427,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +63,714,000
    Budget request, fiscal year 2019..................          +938,000
 

                        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 $1,142,427,000 for fiscal year 2019.

                    FEES OF JURORS AND COMMISSIONERS

 
 
 
Appropriation, fiscal year 2018.......................       $50,944,000
Budget request, fiscal year 2019......................        51,233,000
Recommended in the bill...............................        49,750,000
Bill compared with:
    Appropriation, fiscal year 2018...................        -1,194,000
    Budget request, fiscal year 2019..................        -1,483,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $49,750,000 
for payments to jurors and land commissioners for fiscal year 
2019.

                             COURT SECURITY

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................      $586,999,000
Budget request, fiscal year 2019......................       602,309,000
Recommended in the bill...............................       604,460,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +17,461,000
    Budget request, fiscal year 2019..................        +2,151,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $604,460,000 
for Court Security in fiscal year 2019 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 2018.......................       $90,423,000
Budget request, fiscal year 2019......................        89,867,000
Recommended in the bill...............................        92,413,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +1,990,000
    Budget request, fiscal year 2019..................        +2,546,000
 

                        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 $92,413,000 for the AO for fiscal year 2019.

                        Federal Judicial Center

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $29,265,000
Budget request, fiscal year 2019......................        29,064,000
Recommended in the bill...............................        29,819,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +554,000
    Budget request, fiscal year 2019..................          +755,000
 

                        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 $29,819,000 for 
the FJC for fiscal year 2019.

                  United States Sentencing Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $18,699,000
Budget request, fiscal year 2019......................        18,548,000
Recommended in the bill...............................        18,548,000
Bill compared with:
    Appropriation, fiscal year 2018...................          -151,000
    Budget request, fiscal year 2019..................             - - -
 

                        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 $18,548,000 for the 
Commission for fiscal year 2019.

                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 2019 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 2019 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 the districts of Arizona, California 
Central, Florida Southern, Kansas, Missouri Eastern, New 
Mexico, North Carolina Western, and Texas Eastern.

                     TITLE IV--DISTRICT OF COLUMBIA

                             Federal Funds

              FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT

 
 
 
Appropriation, fiscal year 2018.......................       $40,000,000
Budget request, fiscal year 2019......................             - - -
Recommended in the bill...............................        30,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................       -10,000,000
    Budget request, fiscal year 2019..................       +30,000,000
 

    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 2018.......................       $13,000,000
Budget request, fiscal year 2019......................        12,000,000
Recommended in the bill...............................        13,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +1,000,000
 

    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.

           FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

 
 
 
Appropriation, fiscal year 2018.......................      $265,400,000
Budget request, fiscal year 2019......................       244,939,000
Recommended in the bill...............................       288,280,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +22,880,000
    Budget request, fiscal year 2019..................       +43,341,000
 

    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 $288,280,000 
for operation of the District of Columbia Courts. The District 
of Columbia Courts submitted a budget independent of the 
Administration and requested a total of $349,693,000 for fiscal 
year 2019.
    The amount recommended by the Committee includes 
$14,670,000 for the Court of Appeals; $122,770,000 for the 
Superior Court; $77,016,000 for the Court System; and 
$73,824,000 for capital improvements to courthouse facilities. 
Of the funds for capital improvements, the Committee's 
recommendation includes funds to complete the Moultrie addition 
and move the various court offices into the completed building 
and out of leased space as proposed in the Courts' budget 
request.

  FEDERAL PAYMENT FOR DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................       $49,890,000
Budget request, fiscal year 2019......................        46,005,000
Recommended in the bill...............................        49,890,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +3,885,000
 

    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 2018.......................      $244,298,000
Budget request, fiscal year 2019......................       256,724,000
Recommended in the bill...............................       256,724,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +12,426,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $256,724,000 
for CSOSA. Of the amounts provided, $183,166,000 is for 
Community Supervision and Sex Offender Registration and 
$73,558,000 is for pretrial services. In addition to the 
regular baseline activities, the Committee's recommendation 
includes a total of $13,223,000 to remain available until 
September 30, 2021, for the costs associated with replacement 
leases and relocation of the CSOSA and pretrial services 
offices.

  FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA PUBLIC DEFENDER SERVICE

 
 
 
Appropriation, fiscal year 2018.......................       $41,829,000
Budget request, fiscal year 2019......................        45,858,000
Recommended in the bill...............................        45,858,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +4,029,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $45,858,000 
for public defender services for the District of Columbia. In 
addition to the baseline activities, the Committee's 
recommendation includes $4,471,000 to remain available until 
September 30, 2021, for the costs associated with replacement 
leases and relocation of the PDS offices.

      FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL

 
 
 
Appropriation, fiscal year 2018.......................        $2,000,000
Budget request, fiscal year 2019......................         1,900,000
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................          +100,000
 

    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 $2,000,000 to 
the Criminal Justice Coordinating Council.

                FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS

 
 
 
Appropriation, fiscal year 2018.......................          $565,000
Budget request, fiscal year 2019......................           565,000
Recommended in the bill...............................           565,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................       $45,000,000
Budget request, fiscal year 2019......................        45,000,000
Recommended in the bill...............................        45,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    The Scholarships for Opportunity and Results (SOAR) Act, as 
reauthorized in the Financial Services and General Government 
Appropriations Act, 2018, 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 2018.......................          $435,000
Budget request, fiscal year 2019......................           435,000
Recommended in the bill...............................           435,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................        $5,000,000
Budget request, fiscal year 2019......................         5,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2018.......................        $3,100,000
Budget request, fiscal year 2019......................         3,100,000
Recommended in the bill...............................         3,100,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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.

                Bureau of Consumer Financial Protection

                         SALARIES AND EXPENSES

    The Bureau of Consumer Financial Protection (BCFP) was 
established under title X of Dodd-Frank Wall Street Reform and 
Consumer Protection Act (the Act) (P.L. 111-203) as a bureau 
under the Federal Reserve System. The Act consolidated 
authorities previously shared by seven Federal agencies under 
Federal consumer protection laws in the BCFP and provided the 
Bureau with additional authorities to conduct rulemaking, 
supervision, and enforcement with respect to Federal consumer 
financial laws. Funding required to support the Bureau's 
operations are obtained from transfers from the Federal Reserve 
System.

                        COMMITTEE RECOMMENDATION

    The Committee's recommendation limits transfers to the 
Bureau from the Federal Reserve to no more than $485,000,000 in 
fiscal year 2019, an amount consistent with the budget request. 
Language is included in title IX which amends the Dodd-Frank 
Wall Street Reform and Consumer Protection Act to bring the 
expenses and operations of the Bureau under the jurisdiction of 
the Committees on Appropriations of the House and the Senate, 
and also sets the limitation for the fiscal year.
    Small Institutions Exemption.--The Committee directs the 
Bureau to report to the Committees on Appropriations of the 
House and the Senate, the Committee on Financial Services of 
the House, and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, within 120 days of enactment of this 
Act, on how the Bureau has used its authority under Section 
1022 in rulemakings to exempt certain classes, any plans to 
revisit previous rulemakings to more carefully tailor or grant 
exemptions to rule that have been especially burdensome, and 
the process for the Bureau to consider exemptions to community 
institutions in future rulemakings.
    Small Business Data Gathering.--The Committee remains 
concerned that the Bureau's data-collection and reporting 
mandates, as described under section 1071, Public Law 11-203, 
are widely expected to compound existing regulatory and 
paperwork burdens to small businesses that are often sole 
proprietors. The Bureau's discretionary authority to demand 
additional data is unlimited. For example, the Bureau rule for 
home mortgage disclosures has expanded data requirement for 
lenders to provide at least 110 different data points they need 
to collect on every mortgage loan. The Committee encourages the 
Bureau to utilize cost benefit analysis and stakeholder public 
comment periods in developing additional any proposals for 
extensive data collection and reporting requirements. In 
addition, any regulations or guidance should include an 
analysis of the impact of any such regulation or guidance 
particularly on small businesses and other stakeholders 
including but not necessarily limited to (a) the availability 
of commercial loans; (b) the affordability of commercial loans; 
(c) the estimated costs to commercial loan applicants; (d) the 
estimated compliance costs of collection and reporting; and (e) 
the possibility of exposure of personally identifiable 
financial information.

                   Consumer Product Safety Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $126,000,000
Budget request, fiscal year 2019......................       123,450,000
Recommended in the bill...............................       127,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +1,000,000
    Budget request, fiscal year 2019..................        +3,550,000
 

    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 $127,000,000 
for the CPSC for fiscal year 2019.
    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 2018 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.

      ADMINISTRATIVE PROVISION--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.

                     Election Assistance Commission

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................       $10,100,000
Budget request, fiscal year 2019......................         9,200,000
Recommended in the bill...............................        10,100,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................          +900,000
 

    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 $10,100,000 
for the salaries and expenses of the EAC, of which $1,500,000 
shall be transferred to the National Institute of Standards and 
Technology for election reform activities authorized under the 
Help America Vote Act of 2002.

                   Federal Communications Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $322,035,000
Budget request, fiscal year 2019......................       333,118,000
Recommended in the bill...............................       335,118,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +13,083,000
    Budget request, fiscal year 2019..................        +2,000,000
 

    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 $335,118,000 
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 $130,284,000 for the administration of 
spectrum auctions.
    Telephone Consumer Protection Act (TCPA).--Recently, the 
U.S. Court of Appeals for the D.C. Circuit found that aspects 
of the FCC's most recent interpretation of the Telephone 
Consumer Protection Act (TCPA) in 2015 were arbitrary and 
capricious. The Committee urges the FCC to clarify the aspects 
of its 2015 interpretation that were struck down by the court, 
including reviewing the definition of an automatic dialer and 
how businesses should treat reassigned numbers.
    Preventing Waste.--The Committee supports the Lifeline 
program's mission of making basic communications services 
affordable to low-income Americans, and shares the Commission's 
objective of minimizing waste, fraud, and abuse in the program. 
The Committee urges the Commission to ensure that the measures 
already adopted to combat waste, fraud, and abuse, such as the 
National Verifier, are swiftly and faithfully implemented.
    Unmanned Aircraft Systems (UAS) Spectrum Report.--The 
Committee is aware that the FCC's Technological Advisory 
Council (TAC) currently is studying ``drone'' or UAS issues, 
including control, monitoring, and payload delivery, and that 
the National Telecommunications and Information Administration 
is liaising with the FCC on this process. The TAC is actively 
reviewing the various spectrum needs for drones (command and 
control, payload, identification, collision avoidance), 
considering both the need to make efficient use of the spectrum 
and the need to avoid causing harmful interference to systems 
on the ground. As part of this process, the Committee urges the 
TAC to review: (1) whether small unmanned aircraft systems 
operations might be permitted to operate on spectrum designated 
for aviation use, on an unlicensed, shared, or exclusive basis, 
for operations within the UTM system or outside of such a 
system; (2) the existence of potential barriers to the use of 
such spectrum; and (3) other potential spectrum options if 
spectrum currently designated for aviation operations is 
unusable for this purpose. Within 90 days of the TAC's report 
or submission to FCC's staff, the Commission shall report to 
the Committee on the results and recommendations of the TAC.
    Broadcaster Relocation.--The fiscal year 2018 Omnibus (P.L. 
115-141) provided $1 billion over two years to the TV 
Broadcaster Relocation Fund to reimburse the service and 
equipment costs of channel relocation incurred by the broadcast 
industry, as well as providing financial assistance to FM 
stations, TV translators, and Low Power stations. 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. 
The committee strongly supports a comprehensive assessment of 
what is needed to realistically right size the High Cost USF 
program budget to allow it to fulfill its statutory mission of 
universal service, and encourages the agency to consider 
applying uniform and consistent inflationary growth mechanisms 
to enable each USF program to carry out its respective 
objectives.
    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.
    Transmissions of Local Television Programming.--The 
bipartisan Satellite Television Extension and Localism 
Reauthorization (STELAR) Act of 2014 was enacted to promote 
consumers' access to television broadcast station signals that 
originate in their state of residence, with an emphasis on 
localism and the cultural and economic importance of local 
programming. Congress's intent was to ensure Americans have 
access to local broadcast and media content. The Committee 
notes that many broadcast stations do not neatly conform to 
Neilsen-measured designated market area boundaries, preventing 
many satellite television viewers from accessing local news, 
politics, sports, and emergency programming. The Committee 
notes that despite the reforms made in STELAR, many communities 
continue to struggle with market modification petitions. The 
Committee is particularly concerned with the lack of clarity 
regarding the technical and economic feasibility requirement. 
In reviewing this requirement, the FCC should provide a full 
analysis to ensure decisions on market modification are 
comprehensively reviewed and STELAR's intent to promote 
localism is retained. The Committee therefore directs the FCC 
to adhere to statutory requirements and congressional intent 
when taking administrative action under STELAR.
    Hurricane Response.--The Committee is aware that the FCC 
utilized significant agency resources to resolve communications 
issues caused by Hurricanes Irma and Maria in Puerto Rico and 
the U.S. Virgin Islands. The Commission created an intra-agency 
task force, the Chairman of the FCC made two trips to Puerto 
Rico to survey the response, the FCC deployed staff on the 
ground in stricken areas, accelerated USF funding, and 
expedited approval for experimental licenses.The Committee 
supports the FCC's efforts to deploy scarce agency resources 
and focus on the problems inherent in restoring and making more 
resilient telecommunications services in affected areas. The 
FCC is directed to submit a report to Congress not later than 
90 days after enactment of this Act providing the status of 
these efforts to re-establish communications capabilities in 
Puerto Rico and the U.S. Virgin Islands in the aftermath of 
these two storms. The report must include the number of FCC 
resources and staff deployed to the territories immediately 
after Hurricane Maria; the total amount of agency funds used by 
month to restore telecommunications services in these areas; 
the level of coordination with other federal agencies and local 
authorities to restore telecommunications capabilities; the 
level of outreach to local stakeholders and telecommunications 
providers; impediments that prevented a rapid restoration of 
telecommunications services; and lessons learned that will help 
prepare for another disaster of such magnitude.

      ADMINISTRATIVE PROVISION--FEDERAL COMMUNICATIONS COMMISSION

    Section 510. The Committee continues language prohibiting 
the FCC from changing rules governing the Universal Service 
Fund regarding single connection or primary line restrictions.

                 Federal Deposit Insurance Corporation

                    OFFICE OF THE INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2018.......................       $39,136,000
Budget request, fiscal year 2019......................        42,982,000
Recommended in the bill...............................        42,982,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +3,846,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $42,982,000 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 2018.......................       $71,250,000
Budget request, fiscal year 2019......................        71,250,000
Recommended in the bill...............................        71,250,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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.
    Engagement in the political process is one of the hallmarks 
of our democracy. Americans are increasingly turning to social 
media platforms, such as Facebook, Instagram, and Twitter to 
engage in the political process. Indeed, spending on digital 
political advertising reached a record $1.4 billion in the 2016 
election cycle. Yet, our campaign finance laws do not require 
any meaningful transparency about who is behind political 
advertisements run on digital platforms. Therefore, the 
Committee directs the Commission to report, within 90 days, on 
how the Commission plans to address the disparity in disclosure 
requirements for broadcast advertisements and online political 
advertisements.

                   Federal Labor Relations Authority

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $26,200,000
Budget request, fiscal year 2019......................        26,200,000
Recommended in the bill...............................        26,200,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    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 2019.

                        Federal Trade Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $306,317,000
Budget request, fiscal year 2019......................       309,700,000
Recommended in the bill...............................       311,700,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +5,383,000
    Budget request, fiscal year 2019..................        +2,000,000
 

    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 $311,700,000 
for the salaries and expenses of the FTC. The Congressional 
Budget Office estimates $136,000,000 of collections from Hart-
Scott-Rodino premerger filing fees and $17,000,000 of 
collections from Do-Not-Call list fees which partially offset 
the appropriation requirement for this account.
    Attorney and Aggregator Advertisements.--The FTC is 
encouraged to collaborate with the U.S. Food and Drug 
Administration as appropriate when assessing whether attorney 
and aggregator advertisements directly or indirectly 
misrepresent the safety of prescription drugs or medical 
devices.
    Content Theft.--The online theft of creative content poses 
significant threats to both content creators and American 
consumers. Piracy directly harms not only the 5.5 million 
American workers employed by the copyright industries, but it 
also presents a number of significant risks to American 
consumers. A recent report found that a full third of the 589 
most popular content-theft websites harbored malware, computer 
viruses, and related cyber-security threats. The Committee 
directs the FTC to conduct consumer education to raise consumer 
awareness about how content-theft sites serve as bait to infect 
devices with malicious software enabling identity theft.

                    General Services Administration

    The Committee continues several reporting requirements for 
the General Services Administration (GSA) for fiscal year 2019.
    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 the 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 the 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 the Senate 
a report on the state of the Public Buildings Service's real 
estate portfolio for fiscal year 2018. 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 the 
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 the 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.
    Historic Courthouses.--The Committee is concerned that the 
designs of federal courthouses in historic districts are not 
being drafted with the historic architecture and context in 
mind. Therefore, the Committee directs the GSA to update the 
Committee within 180 days of enactment on courthouse 
construction projects currently underway, the status of those 
designs, and whether or not they meet the historical concerns 
of the surrounding areas. If they do not, the report should 
include the justification for that decision. For those 
courthouses that do not meet those criteria, the GSA should 
immediately begin working with local authorities to remedy 
those concerns.
    Utilization of Previously Closed Military Installations 
under Base Realignment and Closure (BRAC).--The Committee 
encourages the GSA to maximize leasing opportunities at 
previously closed military installations under Base Realignment 
and Closure (BRAC). The Committee expects an ongoing dialogue 
with GSA to assess steps taken to promote and advance such an 
effort.
    Cooperative Purchasing and Multiple Award Schedule (MAS) 
Agreements.--The Committee is aware that federal agencies and 
state and local governments are increasingly utilizing 
cooperative purchasing and MAS agreements to procure goods and 
services, including services rendered for construction and 
renovation projects that involve federal funds. The Committee 
supports efforts to ensure proper transparency and oversight of 
such construction projects, which are often complex and site-
specific. The Committee directs GSA to enforce any existing 
federal regulations that require independent design 
professionals be consulted on new construction and renovation 
projects. The Committee encourages GSA to work with state and 
local governments so that cooperative purchasing and MAS 
agreements that involve federal funding is in the best interest 
of the government.

                        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 2018......    $9,073,938,000
    Limitation on availability, budget request, fiscal    10,131,673,000
 year 2019............................................
    Recommended in the bill...........................     8,634,574,000
Bill compared with:
    Availability limitation, fiscal year 2018.........      -439,364,000
    Availability limitation, fiscal year 2019 request.    -1,497,099,000
 

    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 $8,634,574,000 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 $8,634,574,000 of 
which: $275,900,000 is for construction, $679,934,000 is for 
repairs and alterations, $5,430,345,000 is for rental of space, 
and $2,253,195,000 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 2018......      $692,069,000
    Limitation on availability, budget request, fiscal     1,338,387,000
 year 2019............................................
    Recommended in the bill...........................       275,900,000
Bill compared with:
    Availability limitation, fiscal year 2018.........      -416,169,000
    Availability limitation, fiscal year 2019 request.    -1,062,487,000
 

    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 $275,900,000 for 
the following specific project, as proposed in the budget 
request, in the amount indicated.

------------------------------------------------------------------------
             State                    Description            Amount
------------------------------------------------------------------------
CA............................  Calexico, United            $275,900,000
                                 States Land Port of
                                 Entry.
------------------------------------------------------------------------

                        REPAIRS AND ALTERATIONS

 
 
 
Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2018......      $666,335,000
    Limitation on availability, budget request, fiscal       909,746,000
 year 2019............................................
    Recommended in the bill...........................       679,934,000
Bill compared with:
    Availability limitation, fiscal year 2018.........       +13,599,000
    Availability limitation, fiscal year 2019 request.      -229,812,000
 

    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 $679,934,000 to 
remain available until expended for repairs and alterations.
    Major Repairs and Alterations.--The Committee recommends 
$286,344,000 for repairs and alterations projects that exceed 
the prospectus threshold. The funds are provided to address 
GSA's highest priority facility needs. The Committee directs 
GSA to submit a detailed plan, by project, regarding the use of 
Major Repairs and Alterations funds, not later than 45 days 
after enactment. GSA is directed to provide notification to the 
Committee within 15 days prior to any changes in the use of 
these funds.
    Basic Repairs and Alterations.--The Committee recommends 
$312,090,000 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 
$11,500,000 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 
$40,000,000 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 the Senate before 
obligating funds.

                            RENTAL OF SPACE

 
 
 
Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2018......    $5,493,768,000
    Limitation on availability, budget request, fiscal     5,430,345,000
 year 2019............................................
    Recommended in the bill...........................     5,430,345,000
Bill compared with:
    Availability limitation, fiscal year 2018.........       -63,423,000
    Availability limitation, fiscal year 2019 request.             - - -
 

    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 $5,430,345,000 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 2018......    $2,221,766,000
    Limitation on availability, budget request, fiscal     2,253,195,000
 year 2019............................................
    Recommended in the bill...........................     2,248,395,000
Bill compared with:
    Availability limitation, fiscal year 2018.........       +26,629,000
    Availability limitation, fiscal year 2019 request.        -4,800,000
 

    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 $2,248,395,000 for 
Building Operations and Maintenance. Within this amount, 
$1,126,014,000 is for building services and $1,122,381,000 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 the 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 2018.......................       $53,499,000
Budget request, fiscal year 2019......................        65,835,000
Recommended in the bill...............................        60,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +6,501,000
    Budget request, fiscal year 2019..................        -5,835,000
 

    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 $60,000,000 
for Government-wide Policy.
    Procurement through Commercial e-Commerce Portals.--The 
program to procure commercial products through commercial e-
commerce portals is a significant undertaking by GSA that has 
the potential to change how the government procures commercial 
off-the-shelf items. The Committee intends to closely monitor 
GSA's implementation of the program with regards to an e-
commerce portal provider serving as a supplier on an e-commerce 
portal it administers, to ensure that any such arrangement does 
not result in curtailing competition or reducing participation 
by the portal's other participating suppliers.
    Building Design.--The Committee recognizes the importance 
of mitigating bird deaths due to collisions, and encourages the 
incorporation of materials and design features for each public 
building constructed, acquired, or altered by GSA to have at 
least 90% of the facade material from ground level to 40 feet 
not be composed of glass or employ one or more of the 
following: (a) elements mounted outside the glass that 
eliminate reflectivity; (b) UV patterned glass; (c) patterned 
glass which restricts horizontal spaces to less than 2 high or 
vertical spaces less than 4 wide; and (d) opaque, etched, 
stained, frosted glass. The Committee recognizes that with the 
increase in local and state bird friendly building ordinances 
and guidelines in several states that there is an increasing 
need for a uniform minimum federal standard.
    Digital Workspace.--Committee recognizes that digital 
workspaces can increase user productivity, enhance 
cybersecurity & management, while also allowing for workforce 
flexibility, and urges the General Services Administration to 
leverage the use of digital workspaces as it moves towards 
shared services and the modernization of its information 
technology.

                           OPERATING EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $45,645,000
Budget request, fiscal year 2019......................        49,440,000
Recommended in the bill...............................        49,440,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +3,795,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $49,440,000 
for operating expenses. Within the amount provided under this 
heading, $26,890,000 is for Real and Personal Property 
Management and Disposal, and $22,550,000 is for the Office of 
the Administrator.
    Federal Real Property Profile.--The Committee understands 
that the GSA Federal Real Property Profile (FRPP) has been 
making progress on the use of geospatial technology and the 
transparency of the data. However, the Committee is aware of 
the problem in gathering Federal real property data created by 
the exemption language for Federal lands found in Executive 
Order 13227. This exemption denies GSA the ability of 
collecting meaningful data from large landholding agencies 
within the Department of the Interior and the Department of 
Agriculture. The Committee is also aware that Section 7 of the 
Executive Order provides flexibility for the Interior and 
Agriculture Departments to still contribute their data into the 
FRPP. The Committee expects GSA to increase the transparency, 
accuracy and accountability with both of these Departments 
given the expansive amount of data which could be added to the 
FRPP.

                   CIVILIAN BOARD OF CONTRACT APPEALS

 
 
 
Appropriation, fiscal year 2018.......................        $8,795,000
Budget request, fiscal year 2019......................         9,301,000
Recommended in the bill...............................         9,301,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +506,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $9,301,000 for 
the Civilian Board of Contract Appeals.

                      OFFICE OF INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2018.......................       $65,000,000
Budget request, fiscal year 2019......................        67,000,000
Recommended in the bill...............................        67,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +2,000,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $67,000,000 
for the Office of Inspector General.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

 
 
 
Appropriation, fiscal year 2018.......................        $4,754,000
Budget request, fiscal year 2019......................         4,796,000
Recommended in the bill...............................         4,796,000
Bill compared with:
    Appropriation, fiscal year 2018...................           +42,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $4,796,000 for 
allowances and office staff for former Presidents.

                     FEDERAL CITIZEN SERVICES FUND

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................       $50,000,000
Budget request, fiscal year 2019......................        58,400,000
Recommended in the bill...............................        55,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +5,000,000
    Budget request, fiscal year 2019..................        -3,400,000
 

    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 $55,000,000 
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.

                     TECHNOLOGY MODERNIZATION FUND

 
 
 
 Appropriation, fiscal year 2018......................      $100,000,000
Budget request, fiscal year 2019......................       210,000,000
Recommended in the bill...............................       150,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +50,000,000
    Budget request, fiscal year 2019..................       -60,000,000
 

    This account provides appropriations for the purposes of 
carrying out actions pursuant to the recommendations of the 
Technology Modernization Fund Board focusing on legacy 
information technology systems and infrastructure.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $150,000,000 
for the Technology Modernization Fund (TMF). The Committee 
encourages GSA and the TMF Board established by the Modernizing 
Government Technology Act to prioritize and fund those projects 
that have the most significant impact on mission enhancement 
and that most effectively modernize citizen-facing services, 
including updating public facing websites, modernizing forms 
and digitizing government processes.

                ASSET PROCEEDS AND SPACE MANAGEMENT FUND

 
 
 
Appropriation, fiscal year 2018.......................        $5,000,000
Budget request, fiscal year 2019......................        31,000,000
Recommended in the bill...............................        31,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +26,000,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $31,000,000 
for the Asset Proceeds and Space Management Fund.

                 ENVIRONMENTAL REVIEW IMPROVEMENT FUND

 
 
 
Appropriation, fiscal year 2018.......................        $1,000,000
Budget request, fiscal year 2019......................         6,070,000
Recommended in the bill...............................         6,070,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +5,070,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $6,070,000 for 
the Environmental Review Improvement Fund.

       Administrative Provisions--General Services Administration

                     (INCLUDING TRANSFER OF FUNDS)

    Section 520. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 521. 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 the Senate.
    Section 522. 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 523. 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 524. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the Federal Government.
    Section 525. 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 526. The Committee continues the provision 
requiring a spend plan for certain accounts and programs.
    Section 527. The Committee includes a new provision 
directing the Administrator of the General Services 
Administration to submit a report on the implementation of 
Section 846 of the National Defense Authorization Act for 
fiscal year 2018.

                 Harry S Truman Scholarship Foundation

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................        $1,000,000
Budget request, fiscal year 2019......................             - - -
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +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 2018.......................       $46,835,000
Budget request, fiscal year 2019......................        44,490,000
Recommended in the bill...............................        46,835,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +2,345,000
 

    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 2018.......................      $384,911,000
Budget request, fiscal year 2019......................       365,105,000
Recommended in the bill...............................       372,400,000
Bill compared with:
    Appropriation, fiscal year 2018...................       -12,511,000
    Budget request, fiscal year 2019..................        +7,295,000
 

    This appropriation provides National Archives and Records 
Administration (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 $372,400,000 
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 2018.......................        $4,801,000
Budget request, fiscal year 2019......................         4,241,000
Recommended in the bill...............................         4,823,000
Bill compared with:
    Appropriation, fiscal year 2018...................           +22,000
    Budget request, fiscal year 2019..................          +582,000
 

    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 $4,823,000 for 
the OIG for fiscal year 2019.

                        REPAIRS AND RESTORATION

 
 
 
Appropriation, fiscal year 2018.......................        $7,500,000
Budget request, fiscal year 2019......................         7,500,000
Recommended in the bill...............................         7,500,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

    This appropriation provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide. It enables the NARA 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 2018.......................        $6,000,000
Budget request, fiscal year 2019......................             - - -
Recommended in the bill...............................         6,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +6,000,000
 

    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 $6,000,000 for 
the NHPRC.

                  National Credit Union Administration

               COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

 
 
 
Appropriation, fiscal year 2018.......................        $2,000,000
Budget request, fiscal year 2019......................             - - -
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +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.
    Supporting Community Development Credit Unions.--Within 180 
days of enactment, the Committee directs the Administration to 
issue a report on its current efforts to support and advance 
Community Development Credit Unions (CDCUs) in low income 
communities.

                      Office of Government Ethics

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $16,439,000
Budget request, fiscal year 2019......................        16,294,000
Recommended in the bill...............................        17,019,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +580,000
    Budget request, fiscal year 2019..................          +725,000
 

    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 $17,019,000 
for the OGE.

                     Office of Personnel Management

                         SALARIES AND EXPENSES

                  (INCLUDING TRANSFER OF TRUST FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................      $260,755,000
Budget request, fiscal year 2019......................       265,655,000
Recommended in the bill...............................       265,655,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +4,900,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $132,172,000 
for the General Fund. The Committee also recommends 
$133,483,000 for administrative expenses, to be transferred 
from the appropriate trust funds.
    OPM has struggled for decades to process Federal retirees' 
pension and disability 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 and disability 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 the 
Senate with monthly reports on its progress in addressing the 
backlog in claims.
    OPM Organizational Changes.--The Committee would like to 
remind OPM of their obligation to notify the Committee on 
Appropriations of the House and the Senate of any 
reorganizations, restructurings, new programs or elimination of 
programs as described in Title VI and VII of this Act. These 
include changes that could impact the National Bureau of 
Investigations and the Human Solutions program.
    Critical Functions.--The recent security breaches, focus on 
system upgrades, and efforts to transition work from the 
National Background Investigations Bureau to the Department of 
Defense 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 in to 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 and directs OPM to continue to find ways to reduce 
barriers to federal employment and reduce delays in the hiring 
process. Rigid rules along with long delays in the hiring and 
interview process discourage top candidates from applying for 
or accepting Federal positions. Specifically, the Committee 
encourages OPM to seek input from hiring managers on what 
challenges they face and what improvements could be made to 
make the federal hiring process more efficient and effective. 
The Committee directs the OPM to report to the Committees on 
Appropriations of the House and the Senate no later than 90 
days after the enactment of this Act 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.
    Federal Pay Opportunities.--The Committee is concerned that 
federal agencies are not taking advantage the special hiring 
authorities available. The Director of OPM, together with the 
Chief Human Capital Officer Council, should track government-
wide data to establish a baseline and analyze the extent to 
which the seven Title 5 special payment authorities are 
effective in improving employee recruitment and retention, and 
determine what potential changes may be needed to improve the 
seven authorities' effectiveness.
    Federal Telework Programs.--The Committee supports cost 
savings and productivity improvements from well-managed 
telework programs in the federal workplace. The Committee 
therefore urges the federal sector to continue to track 
successes, compile best practices, and expand upon telework 
programs where appropriate.

                      Office of Inspector General

                         SALARIES AND EXPENSES

                  (INCLUDING TRANSFER OF TRUST FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................       $30,000,000
Budget request, fiscal year 2019......................        30,265,000
Recommended in the bill...............................        30,265,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +265,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $25,265,000 from appropriate trust funds.
    OPM Organization.--Of particular interest to the Committee 
is the transfer of background investigations from OPM's 
National Background Investigations Bureau (NBIB) to the 
Department of Defense. Additionally, the Committee is concerned 
with the Administration's consideration to transfer the Human 
Resources Solutions program to the General Services 
Administration (GSA) as well as the Administration's proposal 
to administer workforce performance budgets through GSA. The 
Committee encourages the Inspector General to keep a pulse on 
these initiatives and include updates on these initiatives in 
their reports to Congress.

                       Office of Special Counsel

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $26,535,000
Budget request, fiscal year 2019......................        26,252,000
Recommended in the bill...............................        26,252,000
Bill compared with:
    Appropriation, fiscal year 2018...................          -283,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $26,252,000 
for the OSC.

                      Postal Regulatory Commission

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................       $15,200,000
Budget request, fiscal year 2019......................        15,100,000
Recommended in the bill...............................        15,200,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................          +100,000
 

    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 2018.......................        $8,000,000
Budget request, fiscal year 2019......................         5,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        -3,000,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $5,000,000 for the Board.

                     Public Buildings Reform Board

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................        $5,000,000
Budget request, fiscal year 2019......................         2,000,000
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        -3,000,000
    Budget request, fiscal year 2019..................             - - -
 

    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 $2,000,000 for the Board.

                   Securities and Exchange Commission

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................    $1,896,507,000
Budget request, fiscal year 2019......................     1,699,052,000
Recommended in the bill...............................     1,695,491,000
Bill compared with:
    Appropriation, fiscal year 2018...................      -201,016,000
    Budget request, fiscal year 2019..................        -3,561,000
 

    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 $1,695,491,000 
for SEC salaries and expenses. The Committee's recommendation 
includes $37,189,000 for costs associated with relocation under 
a replacement lease for the Commission's New York Regional 
Office. 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.
    Business Development Corporations (BDC) Modernization.--
Funding from BDCs has become more important for small 
businesses as 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 the Small Business Credit Availability Act as 
enacted in Public Law 115-141.
    Acquired Fund Fee and Expense Rule.--The Committee 
recommends the SEC use its existing authorities to make the 
necessary regulatory or guidance changes to limit the adverse 
impacts of the Acquired Fund Fee and Expense Rule (AFFE) on 
Business Development Corporations (BDC). The SEC issued its 
acquired fund fees and expenses (AFFE) rule in 2006. In the 
adopting release, the SEC stated that it ``does not believe 
that the [AFFE] amendments will have an adverse impact of 
capital formation.'' This statement was proven to be inaccurate 
as a result of actions taken in 2014 by index sponsors such as 
S&P and Russell to exclude BDCs from their indices. Because 
index funds no longer invest in BDCs, there has been a decline 
in market depth and liquidity for BDC shares, reduced 
institutional ownership in BDCs and less independent third-
party research coverage. Each of these items has negatively 
impacted retail investors owning BDC shares. The SEC has had 
full authority since 2006 to address these unintended, harmful 
consequences.
    Cross-Border Harmonization.--The Committee strongly 
encourages the SEC to work with the Commodity Futures Trading 
Commission (CFTC) to harmonize the definition of a ``US 
person'' and exempt non-US regulated funds from any definition. 
Currently, the definition of a ``US person'' differs between 
the two agencies, which can result in operational challenges 
and potentially different regulatory treatment of entities 
transacting in otherwise similar instruments. Global firms face 
significant costs and burdens if the SEC's and CFTC's 
regulatory approaches produce different outcomes regarding 
whether an entity or transaction would be subject to the Dodd-
Frank Act. Derivatives transactions for swaps and security-
based swaps that are traded typically by the same trading desk 
or desks should not be analyzed differently. The Committee 
urges these agencies to work together in an expeditious manner 
toward a consistent definition of ``US person.''
    Proxy Advisor Reform.--The Committee is aware of the undue 
influence of proxy advisory firms--their duopoly status, 
conflicts of interest, opaque procedures and methodologies, and 
recommendations that may be based on provable, factual 
inaccuracies. The SEC Chairman has spoken publicly about the 
need to address these issues and possibility of revisiting the 
``Proxy Plumbing'' concept release. The Committee strongly 
encourages the SEC to elevate this issue on the Commission's 
agenda to ensure the needs of investors and the capital markets 
are being met.
    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. 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.

                        Selective Service System

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $22,900,000
Budget request, fiscal year 2019......................        26,400,000
Recommended in the bill...............................        26,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +3,100,000
    Budget request, fiscal year 2019..................          -400,000
 

    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 $26,000,000 
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 $737,078,000 for the 
SBA for fiscal year 2019. Detailed guidance for the SBA 
appropriations accounts is presented below.

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................      $268,500,000
Budget request, fiscal year 2019......................       265,000,000
Recommended in the bill...............................       268,500,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................            +3,500
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends $268,500,000 for the salaries and 
expenses of the SBA.
    SBIC Program Licensing.--The Committee is aware of the 
often slow pace of licensing within the Small Business 
Investment Company (SBIC) program. The Committee would like to 
see an expedited and streamline licensing process for known, 
repeat Small Business Investment Companies that have the same 
management teams and a proven track record in the SBIC program. 
A fast track process for repeat licenses should be completed no 
longer than 60-90 days after an application is submitted to the 
SBA, which will allow SBA to properly redirect their licensing 
resources to more first time funds. The SBA should improve 
their ``green light letter'' so that it clearly outlines the 
needed benchmarks for license approval. The SBA should not 
reduce the amount or type of SBIC program data it has reported 
for years and should make that data available no less than ten 
business days after the end of the quarter.
    Loan and Lender Monitoring System.--The Committee finds 
that the Loan and Lender Monitoring System (L/LMS) is a vital 
component of the SBA s technical capability to provide 
oversight of its largest lending programs, the 7(a) and 504 
loan programs. The Committee is disappointed that SBA allowed 
this important oversight tool to lapse briefly in February and 
March 2016. SBA is directed to continue its use of the Loan and 
Lender Monitoring System to ensure that lenders are employing 
sound financial risk management techniques to manage and 
monitor risk within their SBA loan portfolios. SBA is directed 
to continue to maintain the current capability and capacity of 
the L/LMS system, and to strongly consider ways to upgrade the 
system to improve lender oversight. The SBA should look at the 
impact of consolidating the current exceptions into one with an 
employee cap of 1,500 and consider revising the methodology for 
determining employee size for NAICS Codes to use a 36-month 
rolling average computation.
    National Environmental Policy Act Guidance.--The Committee 
encourages the SBA to consider revised guidance on the National 
Environmental Policy Act-related provisions for Concentrated 
Animal Feeding Operations loans which were last updated in SOP 
90 57. This guidance should provide clarity for farmers and 
small businesses around application requirements pertaining to 
environmental review requirements.

                  ENTREPRENEURIAL DEVELOPMENT PROGRAMS

 
 
 
Appropriation, fiscal year 2018.......................      $247,100,000
Budget request, fiscal year 2019......................       192,450,000
Recommended in the bill...............................       251,900,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +4,800,000
    Budget request, fiscal year 2019..................       +59,450,000
 

    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............................             6,000
Growth Accelerators...................................             1,000
HUBZone Program.......................................             3,000
Microloan Technical Assistance........................            31,600
National Women's Business Council.....................             1,500
Native American Outreach..............................             2,000
PRIME Technical Assistance............................             5,000
Regional Innovation Clusters..........................             5,000
SCORE.................................................            11,700
Small Business Development Centers (SBDC).............           132,600
State Trade & Export Promotion (STEP).................            18,000
Veterans Outreach*....................................            12,300
Women's Business Centers (WBC)........................            18,400
 
*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.
    Native American Outreach.--The Committee directs that 
Native American Outreach activities be managed by an Assistant 
Administrator of the Office of Native American Affairs, or 
through SBA 7(j) management and technical assistance, to 
continue organizing multi-agency workshops and Native supplier 
initiative events around the country, and facilitating Native 
contractors participation in the SBA's 8(a) Business 
development program, HUB Zone, women business, veteran and 
service disabled veteran business, and other small business 
contracting program.

                      OFFICE OF INSPECTOR GENERAL

 
 
 
Appropriation, fiscal year 2018.......................       $19,900,000
Budget request, fiscal year 2019......................        21,900,000
Recommended in the bill...............................        21,900,000
Bill compared with:
    Appropriation, fiscal year 2018...................            +2,000
    Budget request, fiscal year 2019..................             - - -
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends $21,900,000 for the Office of 
Inspector General of the SBA.
    Disaster Funding.--In fiscal year 2018, the SBA, Disaster 
Loan Program received supplemental funding in the amount of 
$1.65 billion to primarily assist with disaster efforts related 
to hurricanes Harvey, Irma, and Maria. The committee is pleased 
with SBA's expeditious response to Hurricane Harvey which 
included having 33 staff for two Disaster Relief Centers up and 
running within nine days after Hurricane Harvey. The Committee 
looks forward to the SBA IG's evaluation of SBA's loan 
processing and issuance of the supplemental funds provided to 
aid disaster victims.
    Oversight.--The Committee is concerned about the quality of 
lender oversight activities at SBA, particularly considering 
the magnitude of SBA's loan portfolio, and notes that SBA's 
Office of Inspector General continues to identify weaknesses in 
SBAs lender oversight process. The Committee agrees with SBA's 
Inspector General recommendations and supports efforts to 
strengthen the Office of Credit Monitoring's ability to conduct 
strong oversight of SBA loan portfolios and the lenders that 
participate in order to reinforce general program soundness and 
manage overall risk.

                           OFFICE OF ADVOCACY

 
 
 
Appropriation, fiscal year 2018.......................        $9,120,000
Budget request, fiscal year 2019......................         9,120,000
Recommended in the bill...............................         9,120,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................             - - -
 

                        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 2018.......................      $156,220,000
Budget request, fiscal year 2019......................         4,000,000
Recommended in the bill...............................       159,150,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +2,930,000
    Budget request, fiscal year 2019..................      +155,150,000
 

    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 $30 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 $159,150,000 for the 
Business Loans Program Account. Of the amount appropriated, 
$155,150,000 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 2018.......................             - - -
Budget request, fiscal year 2019......................       186,458,000
Recommended in the bill...............................        31,308,000
Bill compared with:
    Appropriation, fiscal year 2018...................       +31,308,000
    Budget request, fiscal year 2019..................      -155,150,000
 

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $31,308,000 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 530. 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 531. The Committee includes a provision rescinding 
unobligated balances under the Certified Development Company 
Program.
    Section 532. The Committee includes a provision repealing 
the Expedited Disaster Assistance Loan Program.

                      United States Postal Service

                   PAYMENT TO THE POSTAL SERVICE FUND

 
 
 
Appropriation, fiscal year 2018.......................       $58,118,000
Budget request, fiscal year 2019......................        55,235,000
Recommended in the bill...............................        58,118,000
Bill compared with:
    Appropriation, fiscal year 2018...................             - - -
    Budget request, fiscal year 2019..................        +2,883,000
 

    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 strongly supports the Multinational 
Species Conservation Fund Semi-postal Stamp and is aware that 
the legislative requirement that the stamp be sold by the U.S. 
Postal Service expires at the end of FY 2018. The Committee 
understands that more than 30 million copies of the original 
printing of the stamp remain. As the law permits the U.S. 
Postal Service to continue to sell the stamp and it can be done 
at no additional cost to the taxpayer, the Committee directs 
the U.S. Postal Service to continue to offer the stamp for sale 
to the public through FY 2020.
    Delivery Complaints.--The Committee is concerned with the 
prevalence of reports of irregular delivery, mail delivered 
during late hours, and other service complaints. The Committee 
directs the U.S. Postal Service to report to the Committees on 
Appropriations of the House and the Senate within 180 days of 
enactment of this Act on the adequacy of current personnel 
levels, the number of City Carrier Assistants currently 
employed compared to previous years, and the consolidation of 
distribution centers. The report shall be accompanied by a 
comprehensive plan to better provide timely and consistent mail 
delivery service.
    Mail Theft.--The Committee is aware that significant mail 
theft from U.S. Postal Service (USPS) cluster box units 
continues to be a problem across the country, notably in the 
City of Bakersfield and in Kern County, CA. The Committee 
understands USPS has taken action to replace or upgrade certain 
mailbox units, however, mail theft continues to occur. Out of 
existing funds, the Committee directs USPS and the United 
States Postal Inspection Service to aggressively investigate 
issues concerning increased mail theft in cluster box units in 
affected communities and adopt a plan to address these crimes. 
USPS is encouraged to consider upgrading existing mailbox 
infrastructure, enhancing security at cluster mailboxes and 
other USPS delivery sites, and replacing keys. Given the 
importance of protecting U.S. mail, the Committee directs the 
USPS to report to Congress every six months on its plan and 
related actions to address this issue.
    Zip Code Reassignment.--The Committee understands that in 
response to increasing requests for zip codes and place name 
changes, the Postal Service has developed a uniform review 
process. In addition to typical postal purposes, zip codes, 
city identity and boundaries play an integral role in a host of 
important areas, such as tax base, federal and state funding, 
qualifications for federal programs, election ballots, and 
school systems. The Committee encourages the Postal Service to 
ensure that decisions regarding reassigning of zip codes take 
into account all available information and community input.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
Appropriation, fiscal year 2018.......................      $245,000,000
Budget request, fiscal year 2019......................       234,650,000
Recommended in the bill...............................       250,000,000
Bill compared with:
    Appropriation, fiscal year 2018...................        +5,000,000
    Budget request, fiscal year 2019..................       +15,350,000
 

    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 $250,000,000 
for the OIG. The Committee provides funding above the budget 
request in order for the OIG to continue their aggressive drug 
interdiction efforts.

                        United States Tax Court

                         SALARIES AND EXPENSES

 
 
 
Appropriation, fiscal year 2018.......................       $50,740,000
Budget request, fiscal year 2019......................        55,563,000
Recommended in the bill...............................        51,515,000
Bill compared with:
    Appropriation, fiscal year 2018...................          +775,000
    Budget request, fiscal year 2019..................        -4,048,000
 

    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 $51,515,000 
for the U.S. Tax Court.

                 TITLE VI--GENERAL PROVISIONS--THIS ACT

    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, 2020, 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, 
$190,000,000 for the Judicial Retirement Funds (Judicial 
Officers' Retirement Fund, Judicial Survivors' Annuities Fund, 
and the United States Court of Federal Claims Judges' 
Retirement Fund), $13,519,000,000 for the Government Payment 
for Annuitants, Employee Health Benefits, $49,000,000 for the 
Government Payment for Annuitants, Employee Life Insurance, and 
$8,060,000,000 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 continues language relating to 
Universal Service Fund payments for wireless providers.
    Section 626. The Committee includes language prohibiting 
funds to be used to deny inspectors general access to records.
    Section 627. 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 628. 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 629. The Committee includes a new provision that 
provides the Archivist of the United State with the authority 
to force action on records that are past their disposition date 
or currently unscheduled and do not have a disposition date, 
and to unilaterally dispose of archival records in NARA's legal 
custody.
    Section 630. The Committee includes new language that 
prohibits funds for enforcement of 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 language prohibiting 
funds to the Securities and Exchange Commission for the purpose 
of requiring single ballot proxies.

             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 the 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 continues a provision addressing 
possible technical scorekeeping differences for fiscal year 
2019 between the Office of Management and Budget and the 
Congressional Budget Office.
    Section 746. The Committee modifies a provision on the 
conditions for implementing Executive Order 13690.
    Section 747. The Committee includes a new provision 
prohibiting funds to implement, administer, or enforce a rule 
issued pursuant to section 13(p) of the Securities Exchange Act 
of 1934.
    Section 748. The Committee continues the provision that 
prohibits the use of funds to begin or announce a study or a 
public-private competition regarding the conversion to 
contractor performance of any function performed by civilian 
Federal employees pursuant to Office of Management and Budget 
Circular A-76 or any other administrative regulation, 
directive, or policy.
    Section 749. 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, and 
programs that support supervised consumption facilities that 
allow the use of substances on Schedule I of the Controlled 
Substances Act.
    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 2020 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 2019.
    Section 817. 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 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 818. The Committee includes a new provision 
prohibiting funds in this Act from being used to carry out the 
Reproductive Health Non-Discrimination Amendment Act of 2018 
(D.C. Law 20-261).
    Section 819. The Committee includes a provision to repeal 
the Local Budget Autonomy Amendment Act of 2012.
    Section 820. The Committee continues language limiting 
references to ``this Act'' as referring to only this title and 
title IV.

                       TITLE IX--FINANCIAL REFORM

    The bill includes a number of financial services reforms 
that have been passed by the House of Representatives in the 
115th Congress.

                       TITLE X--EMAIL PRIVACY ACT

                    VOLUNTARY DISCLOSURE CORRECTIONS

    The bill includes H.R. 387, the Email Privacy Act, which 
was passed by the House of Representatives on February 6, 2017.

                   TITLE XI--AMATEUR RADIO PARITY ACT

    The bill includes H.R. 555, the Amateur Radio Parity Act of 
2017, which was passed by the House of Representatives on 
January 23, 2017.

                TITLE XII--ADDITIONAL GENERAL PROVISIONS

    Section 1201. 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:

 
 
 
Small Business Administration.........................       $50,000,000
 

                           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 113 authorizes the transfers of funds to IRS to the 
Taxpayer Services, Enforcement, or Operations Support, to 
assist with carrying out Tax Reform initiatives.
    Section 115 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, and Alcohol and Tobacco Tax and Trade Bureau 
appropriations under certain circumstances.
    Section 116 authorizes transfers, up to two percent, 
between the IRS and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 118 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 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 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 512 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 519 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.
    Section 744 authorizes with notification the transfer of 
funds from the Bureau of Consumer Financial Protection.

       UNDER TITLE VIII--GENERAL PROVISIONS, DISTRICT OF COLUMBIA

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

                  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 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 Department-wide Systems and 
Capital Investments Programs that provides funds for equipment, 
software, and repairs and renovations to buildings owned by the 
Department of the Treasury.
    Language is included for Fund for America's Kids and 
Grandkids that provides funds for government efficiencies 
subject to the absence of a budget deficit.
    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 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; 
individuals with disabilities; Native American initiatives; 
Bank Enterprise Awards, Healthy Food Financing Initiatives; and 
administrative expenses for the program and cost of direct 
loans. Language is included for clarifying the amount for the 
Bond Guarantee Program.
    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 the 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 the 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 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 106. Language is included to prohibit the IRS from 
targeting U.S. citizens for exercising their First Amendment 
rights.
    Section 107. Language is included to prohibit the use of 
funds by the IRS to target groups based on their ideological 
beliefs.
    Section 108. 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 109. Language is included prohibiting funds for IRS 
employee awards or hiring programs that do not consider 
employee conduct and Federal tax compliance.
    Section 110. 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 111. Language is included to prohibit funds for 
pre-populated returns.
    Section 112. New language is included to prohibit funds for 
the IRS to deny tax exemption unless the IRS Commissioner 
consents to such determination.
    Section 113. New language is provided for dedicated funds 
to assist with the implementation of tax reform.
    Section 114. 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 115. 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 116. 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 117. Language is included prohibiting the 
Department of the Treasury from undertaking a redesign of the 
one dollar Federal Reserve note.
    Section 118. 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 119. Language is included requiring congressional 
approval for the construction and operation of a museum by the 
United States Mint.
    Section 120. 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 121. Language is included deeming that funds for 
the Department of the Treasury's intelligence-related 
activities are specifically authorized in fiscal year 2019 
until enactment of the Intelligence Authorization Act for 
fiscal year 2019.
    Section 122. 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 123. Language is included requiring the Department 
of the Treasury to submit a capital investment plan.
    Section 124. Language is included requiring the Department 
of the Treasury to submit a report on its Franchise Fund.
    Section 125. 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 126. Language is included requiring a quarterly 
report from both the Office of Financial Research and Office of 
Financial Stability Oversight.
    Section 127. Language is included authorizing the Office of 
Terrorism and Financial Intelligence to reimburse Treasury 
Departmental Offices for reception and representation expenses 
to support activities of the Financial Action Task Force.
    Section 128. Language is included prohibiting funds to 
approve, license, facilitate, authorize, or otherwise allow the 
importation of property confiscated by the Cuban Government.
    Section 129. 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 130. 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.
    Section 131. Language is included that requires quarterly 
reports of the Office of Financial Research (OFR) and Office of 
Financial Stability.
    Section 132. Language is included requiring the OFR to 
provide public notice of not less than 90 days before issuing a 
rule, report, or regulation.
    Section 133. Language is included that limits the fees 
available for obligation by the OFR.

              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; prohibits the use of funds for 
altering the Corp of Engineers annual work plan; 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 under 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 include a statement of 
budgetary impact with any Executive Order or Presidential 
Memorandum issued or rescinded during fiscal year 2019.

                        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 
2019 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 2019.
    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 Central, Florida Southern, Kansas, 
Missouri Eastern, New Mexico, North Carolina Western, and Texas 
Eastern.

                     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, 2020; 
providing for the reallocation of funds and providing for 
certain payments.
    Language is included under Federal Payment for 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 $13,223,000 to remain available until September 30, 
2021 for costs associated with replacement leases; 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 nonmentary gift to support offenders and 
defendants successfully meeting terms of supervision.
    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, 2020.
    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 2019 Budget 
Request Act of 2018 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.
    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.
    Language is included for the Election Assistance 
Commission, Salaries and Expenses, that provides necessary 
funds, including transfer of funds, for salaries and expenses 
and 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.
    The bill includes the following administrative provisions 
under the Federal Communications Commission:
    Section 510. Language is included prohibiting the FCC from 
changing rules governing the Universal Service Fund regarding 
single connection or primary line restrictions.
    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.
    Language is included for the General Services 
Administration, Civilian Board of Contract Appeals for 
activities associated with the Civilian Board of Contract 
Appeals.
    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, which 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, Technology Modernization Fund, for technology-
related modernization activities.
    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 520. Language is included providing authority for 
the use of funds for the hire of motor vehicles.
    Section 521. 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 522. Language is included requiring funds proposed 
for developing courthouse construction requests to meet 
appropriate standards and the priorities of the Judicial 
Conference.
    Section 523. 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 524. Language is included permitting GSA to pay 
small claims (up to $250,000) made against the Federal 
Government.
    Section 525. 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 526. Language is included requiring a spend plan 
for certain accounts and programs.
    Section 527. Language is included directing the 
Administrator of the General Services Administration to submit 
a report on the implementation of Section 846 of the National 
Defense Authorization Act for fiscal year 2018.
    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 funds derived from a 
transfer 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, the economics division and 
a replacement lease for the NY regional office. 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 530 allows for the transfer of funds between Small 
Business Administration appropriations.
    Section 531 rescinds prior year unobligated balances.
    Section 532 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 foregone; 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.
    New language is included that requires the United States 
Postal Service to maintain and comply with delivery 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, 
$190,000,000 for the Judicial Retirement Funds (Judicial 
Officers' Retirement Fund, Judicial Survivors' Annuities Fund, 
and the United States Court of Federal Claims Judges' 
Retirement Fund), $13,519,000,000 for the Government Payment 
for Annuitants, Employee Health Benefits, $49,000,000 for the 
Government Payment for Annuitants, Employee Life Insurance, and 
$8,060,000,000 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 relating to Universal 
Service Fund payments for wireless providers.
    Section 626. Language is included prohibiting funds to be 
used to deny inspectors general access to records.
    Section 627. 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 628. 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 629. New language is included that provides the 
Archivist of the United States with the authority to force 
action on records that are past their disposition date or 
currently unscheduled and do not have a disposition date, and 
to unilaterally dispose of archival records in NARA's legal 
custody.
    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 the 
Securities and Exchange Commission for the purpose of requiring 
single ballot proxies.

             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 Bureaus 
website.
    Section 745. The Committee continues a provision addressing 
possible technical scorekeeping differences for fiscal year 
2019 between the Office of Management and Budget and the 
Congressional Budget Office.
    Section 746. Language is included prohibiting funds from 
implementing, administering, carrying out, modifying, revising, 
or enforcing Executive Order 13690.
    Section 747. New language is included prohibiting funds to 
implement, administer, or enforce a rule issued pursuant to 
section 13(p) of the Securities Exchange Act of 1934.
    Section 748. Language is included prohibiting the use of 
funds to begin or announce a study or a public-private 
competition regarding the conversion to contractor performance 
of any function performed by civilian Federal employees 
pursuant to Office of Management and Budget Circular A-76 or 
any other administrative regulation, directive, or policy.
    Section 749. 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 and programs that 
support supervised consumption facilities.
    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 2020 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 2019.
    Section 817. New 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 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 818. New language is included prohibiting funds in 
this Act from being used to carry out the Reproductive Health 
Non-Discrimination Amendment Act of 2018 (D.C. Law 20-261).
    Section 819. Language is included repealing the Local 
Budget Autonomy Amendment Act of 2012.
    Section 820. Language is included limiting references to 
``this Act'' as referring to only this title and title IV.

                      Title IX--Financial Reforms

    The bill includes a number of financial services reforms 
that have been passed by the House of Representatives in the 
115th Congress.

                       Title X--Email Privacy Act

    The bill includes H.R. 387, the Email Privacy Act, which 
was passed by the House of Representatives on February 6, 2017.

                   Title XI--Amateur Radio Parity Act

    The bill includes H.R. 555, the Amateur Radio Parity Act of 
2017, which was passed by the House of Representatives on 
January 23, 2017.

                Title XII--Additional General Provisions

    Section 1201. The Committee includes a provision 
establishing a ``Spending Reduction Account'' in the bill.

                  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         208,751
    Office of Terrorism and Financial                        n/a             n/a             n/a         161,000
     Intelligence...............................
    Cybersecurity Enhancement Account...........             n/a             n/a             n/a          25,208
    Department-Wide Systems and Capital                     1997  ..............  ..............           8,000
     Investments Program........................
    Fund for America's Kids and Grandkids.......             n/a             n/a             n/a         585,000
    Office of Inspector General.................  ..............  ..............  ..............          37,044
    Treasury Inspector General for Tax                       n/a             n/a             n/a         170,834
     Administration.............................
    Special Inspector General for the Troubles    ..............  ..............  ..............          28,800
     Asset Relief Program.......................
    Financial Crimes Enforcement Network........            2013         100,419         111,788         117,800
    Bureau of the Fiscal Service................             n/a             n/a             n/a         338,280
    Alcohol and Trade Tax and Trade Bureau......             n/a             n/a             n/a         123,527
    Community Development and Financial                     1998         111,000          80,000         216,000
     Institutions Fund..........................
Internal Revenue Service:
    Taxpayer Services...........................             n/a             n/a             n/a       2,491,554
    Enforcement.................................             n/a             n/a             n/a       4,860,000
    Operations Support..........................             n/a             n/a             n/a       3,988,000
    Business Systems Modernization..............             n/a             n/a             n/a         200,000
Title II--Executive Office of the President
    Office of Management and Budget.............            2003         various          61,988         103,000
    Policy:
        Salaries and Expenses...................            2010             n/a          29,575          17,400
        High Intensity Drug Trafficking Areas...            2011         280,000         238,522         280,000
        Other Federal Drug Control Programs.....         various         various             n/a         118,327
    Information Technology Oversight and Reform.             n/a             n/a             n/a          15,000
Title IV--District of Columbia
    Federal Payment for Resident Tuition Support            2012       such sums          40,000          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         127,000
    Election Assistance Commission..............            2005             n/a          13,888          10,100
    Federal Communications Commission...........            1991       such sums         115,794         335,118
    Federal Election Commission.................            1981           9,400           9,662          71,250
    Federal Trade Commission....................            1998         111,000         106,500         158,700
General Services Administration:
        Government-wide Policy..................             n/a             n/a             n/a          60,000
        Operations Expenses.....................             n/a             n/a             n/a          49,440
        Federal Citizen Services Fund...........             n/a             n/a             n/a          55,000
    Merit Systems Protection Board..............            2007       such sums          29,110          46,835
    National Historical Public Records                      2009          10,000          11,250           6,000
     Commission.................................
    Office of Government Ethics.................            2007       such sums          11,148          17,019
    Securities and Exchange Commission..........            2015       2,250,000       1,500,000       1,695,491
----------------------------------------------------------------------------------------------------------------

                 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, 2019 (AS ORDER REPORTED ON 13
JUNE 2018) 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...............................................  ...........  ...........       22,406    \1\22,398
    Discretionary...........................................  ...........  ...........       23,423    \1\24,045
        General Purpose.....................................       23,423       24,490  ...........  ...........
        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:
    2019....................................................         n.a.         n.a.         n.a.    \2\40,141
    2020....................................................         n.a.         n.a.         n.a.     \2\3,690
    2021....................................................         n.a.         n.a.         n.a.       \2\-67
    2022....................................................         n.a.         n.a.         n.a.      \2\-554
    2023 and future years...................................         n.a.         n.a.         n.a.    \2\-4,421
----------------------------------------------------------------------------------------------------------------
\2\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:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation             This bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               Authority     Outlays     Authority     Outlays
----------------------------------------------------------------------------------------------------------------
Financial assistance to State and local governments for 2019         n.a.         n.a.          727       \2\166
----------------------------------------------------------------------------------------------------------------
\2\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 italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

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

       DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

(Public Law 111-203)

           *       *       *       *       *       *       *

TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *

Subtitle B--Office of Financial Research

           *       *       *       *       *       *       *

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 as provided for 
        in appropriation Acts, 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)] (2) 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.--] Assessment Schedule._
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.

           *       *       *       *       *       *       *

                              ----------                              

                   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 [27 years and 6 months] 28 
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 24 
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 [25 years and 6 
months] 26 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 [16 years] 17 
        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 northern district of Alabama 
        occurring 16 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 [15 years and 6 months] 16 years and 6 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 [14 
        years] 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.
          (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.

           *       *       *       *       *       *       *

                              ----------                              

                           PUBLIC LAW 110-246

   AN ACT To provide for the continuation of agricultural and other 
programs of the Department of Agriculture through fiscal year 2012, and 
                          for other purposes.

           *       *       *       *       *       *       *
TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *

Subtitle B--Small Business Disaster Loan Program

           *       *       *       *       *       *       *

PART II--DISASTER LENDING

           *       *       *       *       *       *       *

[SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

  [(a) Definition.--In this section, the term ``program'' means 
the expedited disaster assistance business loan program 
established under subsection (b).
  [(b) Creation of Program.--The Administrator shall take such 
administrative action as is necessary to establish and 
implement an expedited disaster assistance business loan 
program under which the Administration may, on an expedited 
basis, guarantee timely payment of principal and interest, as 
scheduled on any loan made to an eligible small business 
concern under paragraph (9) of section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as added by this Act.
  [(c) Consultation Required.--In establishing the program, the 
Administrator shall consult with--
          [(1) appropriate personnel of the Administration 
        (including District Office personnel of the 
        Administration);
          [(2) appropriate technical assistance providers 
        (including small business development centers);
          [(3) appropriate lenders and credit unions;
          [(4) the Committee on Small Business and 
        Entrepreneurship of the Senate; and
          [(5) the Committee on Small Business of the House of 
        Representatives.
  [(d) Rules.--
          [(1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Administrator shall 
        issue rules in final form establishing and implementing 
        the program in accordance with this section. Such rules 
        shall apply as provided for in this section, beginning 
        90 days after their issuance in final form.
          [(2) Contents.--The rules promulgated under paragraph 
        (1) shall--
                  [(A) identify whether appropriate uses of 
                funds under the program may include--
                          [(i) paying employees;
                          [(ii) paying bills and other 
                        financial obligations;
                          [(iii) making repairs;
                          [(iv) purchasing inventory;
                          [(v) restarting or operating a small 
                        business concern in the community in 
                        which it was conducting operations 
                        prior to the applicable major disaster, 
                        or to a neighboring area, county, or 
                        parish in the disaster area; or
                          [(vi) covering additional costs until 
                        the small business concern is able to 
                        obtain funding through insurance 
                        claims, Federal assistance programs, or 
                        other sources; and
                  [(B) set the terms and conditions of any loan 
                made under the program, subject to paragraph 
                (3).
          [(3) Terms and conditions.--A loan guaranteed by the 
        Administration under this section--
                  [(A) shall be for not more than $150,000;
                  [(B) shall be a short-term loan, not to 
                exceed 180 days, except that the Administrator 
                may extend such term as the Administrator 
                determines necessary or appropriate on a case-
                by-case basis;
                  [(C) shall have an interest rate not to 
                exceed 300 basis points above the interest rate 
                established by the Board of Governors of the 
                Federal Reserve System that 1 bank charges 
                another for reserves that are lent on an 
                overnight basis on the date the loan is made;
                  [(D) shall have no prepayment penalty;
                  [(E) may only be made to a borrower that 
                meets the requirements for a loan under section 
                7(b) of the Small Business Act (15 U.S.C. 
                636(b)), as amended by this Act;
                  [(F) may be refinanced as part of any 
                subsequent disaster assistance provided under 
                section 7(b) of the Small Business Act (15 
                U.S.C. 636(b)), as amended by this Act;
                  [(G) may receive expedited loss verification 
                and loan processing, if the applicant is--
                          [(i) a major source of employment in 
                        the disaster area (which shall be 
                        determined in the same manner as under 
                        section 7(b)(3)(B) of the Small 
                        Business Act (15 U.S.C. 636(b)(3)(B))); 
                        or
                          [(ii) vital to recovery efforts in 
                        the region (including providing debris 
                        removal services, manufactured housing, 
                        or building materials); and
                  [(H) shall be subject to such additional 
                terms as the Administrator determines necessary 
                or appropriate.
  [(e) Report to Congress.--Not later than 5 months after the 
date of enactment of this Act, the Administrator shall report 
to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives on the progress of the Administrator in 
establishing the program.
  [(f) Authorization.--There are authorized to be appropriated 
to the Administrator such sums as are necessary to carry out 
this section.]

           *       *       *       *       *       *       *

                              ----------                              

                      TITLE 44, UNITED STATES CODE

           *       *       *       *       *       *       *
CHAPTER 21--NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

           *       *       *       *       *       *       *

Sec. 2107. Acceptance of records for historical preservation

  (a) In General.--When it appears to the Archivist to be in 
the public interest, the Archivist may--
          (1) accept for deposit with the National Archives of 
        the United States the records of a Federal agency, the 
        Congress, the Architect of the Capitol, or the Supreme 
        Court determined by the Archivist to have sufficient 
        historical or other value to warrant their continued 
        preservation by the United States Government;
          (2) direct and effect the transfer of records of a 
        Federal agency determined by the Archivist to have 
        sufficient historical or other value to warrant their 
        continued preservation by the United States Government 
        to the National Archives of the United States, as soon 
        as practicable, and at a time mutually agreed upon by 
        the Archivist and the head of that Federal agency not 
        later than thirty years after such records were created 
        or received by that agency, unless [the head of such 
        agency has certified in writing to the Archivist] the 
        Archivist determines, after consulting with the head of 
        such agency, that such records must be retained in the 
        custody of such agency for use in the conduct of the 
        regular business of the agency;
          (3) direct and effect, with the approval of the head 
        of the originating Federal agency, or if the existence 
        of the agency has been terminated, with the approval of 
        the head of that agency's successor in function, if 
        any, the transfer of records, deposited or approved for 
        deposit with the National Archives of the United States 
        to public or educational institutions or associations; 
        title to the records to remain vested in the United 
        States unless otherwise authorized by Congress; and
          (4) transfer materials from private sources 
        authorized to be received by the Archivist by section 
        2111 of this title.
  (b) Early Transfer of Records.--The Archivist--
          (1) in consultation with the head of the originating 
        Federal agency, is authorized to accept a copy of the 
        records described in subsection (a)(2) that have been 
        in existence for less than thirty years; and
          (2) may not disclose any such records until the 
        expiration of--
                  (A) the thirty-year period described in 
                paragraph (1);
                  (B) any longer period established by the 
                Archivist by order; or
                  (C) any shorter period agreed to by the 
                originating Federal agency.

           *       *       *       *       *       *       *

 CHAPTER 29--RECORDS MANAGEMENT BY THE ARCHIVIST OF THE UNITED STATES 
AND BY THE ADMINISTRATOR OF GENERAL SERVICES

           *       *       *       *       *       *       *

Sec. 2904. General responsibilities for records management

  (a) The Archivist shall provide guidance and assistance to 
Federal agencies with respect to ensuring--
          (1) economical and effective records management;
          (2) adequate and proper documentation of the policies 
        and transactions of the Federal Government; and
          (3) proper records disposition.
  (b) The Administrator shall provide guidance and assistance 
to Federal agencies to ensure economical and effective 
processing of mail by Federal agencies.
  (c) In carrying out the responsibilities under subsection 
(a), the Archivist shall have the responsibility--
          (1) to promulgate standards, procedures, and 
        guidelines with respect to records management and the 
        conduct of records management studies;
          (2) to conduct research with respect to the 
        improvement of records management practices and 
        programs;
          (3) to collect and disseminate information on 
        training programs, technological developments, and 
        other activities relating to records management;
          (4) to establish such interagency committees and 
        boards as may be necessary to provide an exchange of 
        information among Federal agencies with respect to 
        records management;
          (5) to direct the continuing attention of Federal 
        agencies and the Congress on the need for adequate 
        policies governing records management;
          (6) to conduct records management studies and, in the 
        Archivist's discretion, designate the heads of 
        executive agencies to conduct records management 
        studies with respect to establishing systems and 
        techniques designed to save time and effort in records 
        management;
          (7) to conduct inspections or surveys of the records 
        and the records management programs and practices 
        within and between Federal agencies;
          (8) to report to the appropriate oversight and 
        appropriations committees of the Congress and to the 
        Director of the Office of Management and Budget in 
        January of each year and at such other times as the 
        Archivist deems desirable--
                  (A) on the results of activities conducted 
                pursuant to paragraphs (1) through (7) of this 
                section,
                  (B) on evaluations of responses by Federal 
                agencies to any recommendations resulting from 
                inspections or studies conducted under 
                paragraphs (6) and (7) of this section, and
                  (C) to the extent practicable, estimates of 
                costs to the Federal Government resulting from 
                the failure of agencies to implement such 
                recommendations.
  (d) The Archivist shall promulgate regulations requiring all 
Federal agencies to transfer all [digital or electronic] 
records to the National Archives of the United States in 
digital or electronic form to the greatest extent possible.
  (e) The Administrator, in carrying out subsection (b), shall 
have the responsibility to promote economy and efficiency in 
the selection and utilization of space, staff, equipment, and 
supplies for processing mail at Federal facilities.

           *       *       *       *       *       *       *

CHAPTER 33--DISPOSAL OF RECORDS

           *       *       *       *       *       *       *

Sec. 3303a. Examination by Archivist of lists and schedules of records 
                    lacking preservation value; disposal of records

  (a) The Archivist shall examine the lists and schedules 
submitted to the Archivist under section 3303 of this title. If 
the Archivist determines that any of the records listed in a 
list or schedule submitted to the Archivist do not, or will not 
after the lapse of the period specified, have sufficient 
administrative, legal, research, or other value to warrant 
their continued preservation by the Government, the Archivist 
may, after publication of notice in the Federal Register and an 
opportunity for interested persons to submit comment thereon--
          (1) notify the agency to that effect; and
          (2) empower the agency to dispose of those records in 
        accordance with regulations promulgated under section 
        3302 of this title.
  (b) Authorizations granted under lists and schedules 
submitted to the Archivist under section 3303 of this title, 
and schedules promulgated by the Archivist under subsection (d) 
of this section, shall be mandatory, subject to section 2909 of 
this title. As between an authorization granted under lists and 
schedules submitted to the Archivist under section 3303 of this 
title and an authorization contained in a schedule promulgated 
under subsection (d) of this section, application of the 
authorization providing for the shorter retention period shall 
be required, subject to section 2909 of this title.
  (c) The Archivist may request advice and counsel from the 
Committee on Oversight and Government Reform of the House of 
Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate with respect to the disposal 
of any particular records under this chapter whenever the 
Archivist considers that--
          (1) those particular records may be of special 
        interest to the Congress; or
          (2) consultation with the Congress regarding the 
        disposal of those particular records is in the public 
        interest.
However, this subsection does not require the Archivist to 
request such advice and counsel as a regular procedure in the 
general disposal of records under this chapter.
  (d) The Archivist shall promulgate schedules authorizing the 
disposal, after the lapse of specified periods of time, of 
records of a specified form or character common to several or 
all agencies if such records will not, at the end of the 
periods specified, have sufficient administrative, legal, 
research, or other value to warrant their further preservation 
by the United States Government.
  (e) The Archivist may approve and effect the disposal of 
records that are in the Archivist's legal custody, provided 
that records that had been in the custody of another existing 
agency may not be disposed of without [the written consent of] 
advance notice to the head of the agency.
  (f) The Archivist shall make an annual report to the Congress 
concerning the disposal of records under this chapter, 
including general descriptions of the types of records disposed 
of and such other information as the Archivist considers 
appropriate to keep the Congress fully informed regarding the 
disposal of records under this chapter.

           *       *       *       *       *       *       *

Sec. 3308. Disposal of similar records where prior disposal was 
                    authorized

  When it appears to the Archivist that an agency has in its 
custody, or is accumulating, records of the same form or 
character as those of the same agency previously authorized to 
be disposed of, he may [empower] direct the head of the agency 
to dispose of the records, after they have been in existence a 
specified period of time, in accordance with regulations 
promulgated under section 3302 of this title and without 
listing or scheduling them.

           *       *       *       *       *       *       *

                              ----------                              

                     DEATH WITH DIGNITY ACT OF 2016

                              ----------                              

              LOCAL BUDGET AUTONOMY AMENDMENT ACT OF 2012

                              ----------                              

                   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.

           *       *       *       *       *       *       *

                              ----------                              

                       FAIR CREDIT REPORTING ACT

           *       *       *       *       *       *       *
TITLE VI--CONSUMER CREDIT REPORTING

           *       *       *       *       *       *       *

SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER 
                    REPORTING AGENCIES.

  (a) Duty of Furnishers of Information To Provide Accurate 
Information.--
          (1) Prohibition.--
                  (A) Reporting information with actual 
                knowledge of errors.--A person shall not 
                furnish any information relating to a consumer 
                to any consumer reporting agency if the person 
                knows or has reasonable cause to believe that 
                the information is inaccurate.
                  (B) Reporting information after notice and 
                confirmation of errors.--A person shall not 
                furnish information relating to a consumer to 
                any consumer reporting agency if--
                          (i) the person has been notified by 
                        the consumer, at the address specified 
                        by the person for such notices, that 
                        specific information is inaccurate; and
                          (ii) the information is, in fact, 
                        inaccurate.
                  (C) No address requirement.--A person who 
                clearly and conspicuously specifies to the 
                consumer an address for notices referred to in 
                subparagraph (B) shall not be subject to 
                subparagraph (A); however, nothing in 
                subparagraph (B) shall require a person to 
                specify such an address.
                  (D) Definition.--For purposes of subparagraph 
                (A), the term ``reasonable cause to believe 
                that the information is inaccurate'' means 
                having specific knowledge, other than solely 
                allegations by the consumer, that would cause a 
                reasonable person to have substantial doubts 
                about the accuracy of the information.
          (2) Duty to correct and update information.--A person 
        who--
                  (A) regularly and in the ordinary course of 
                business furnishes information to one or more 
                consumer reporting agencies about the person's 
                transactions or experiences with any consumer; 
                and
                  (B) has furnished to a consumer reporting 
                agency information that the person determines 
                is not complete or accurate,
        shall promptly notify the consumer reporting agency of 
        that determination and provide to the agency any 
        corrections to that information, or any additional 
        information, that is necessary to make the information 
        provided by the person to the agency complete and 
        accurate, and shall not thereafter furnish to the 
        agency any of the information that remains not complete 
        or accurate.
          (3) Duty to provide notice of dispute.--If the 
        completeness or accuracy of any information furnished 
        by any person to any consumer reporting agency is 
        disputed to such person by a consumer, the person may 
        not furnish the information to any consumer reporting 
        agency without notice that such information is disputed 
        by the consumer.
          (4) Duty to provide notice of closed accounts.--A 
        person who regularly and in the ordinary course of 
        business furnishes information to a consumer reporting 
        agency regarding a consumer who has a credit account 
        with that person shall notify the agency of the 
        voluntary closure of the account by the consumer, in 
        information regularly furnished for the period in which 
        the account is closed.
          (5) Duty to provide notice of delinquency of 
        accounts.--(A) In general.--A person who furnishes 
        information to a consumer reporting agency regarding a 
        delinquent account being placed for collection, charged 
        to profit or loss, or subjected to any similar action 
        shall, not later than 90 days after furnishing the 
        information, notify the agency of the date of 
        delinquency on the account, which shall be the month 
        and year of the commencement of the delinquency on the 
        account that immediately preceded the action.
                  (B) Rule of construction.--For purposes of 
                this paragraph only, and provided that the 
                consumer does not dispute the information, a 
                person that furnishes information on a 
                delinquent account that is placed for 
                collection, charged for profit or loss, or 
                subjected to any similar action, complies with 
                this paragraph, if--
                          (i) the person reports the same date 
                        of delinquency as that provided by the 
                        creditor to which the account was owed 
                        at the time at which the commencement 
                        of the delinquency occurred, if the 
                        creditor previously reported that date 
                        of delinquency to a consumer reporting 
                        agency;
                          (ii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency, and the 
                        person establishes and follows 
                        reasonable procedures to obtain the 
                        date of delinquency from the creditor 
                        or another reliable source and reports 
                        that date to a consumer reporting 
                        agency as the date of delinquency; or
                          (iii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency and the date 
                        of delinquency cannot be reasonably 
                        obtained as provided in clause (ii), 
                        the person establishes and follows 
                        reasonable procedures to ensure the 
                        date reported as the date of 
                        delinquency precedes the date on which 
                        the account is placed for collection, 
                        charged to profit or loss, or subjected 
                        to any similar action, and reports such 
                        date to the credit reporting agency.
          (6) Duties of furnishers upon notice of identity 
        theft-related information.--
                  (A) Reasonable procedures.--A person that 
                furnishes information to any consumer reporting 
                agency shall have in place reasonable 
                procedures to respond to any notification that 
                it receives from a consumer reporting agency 
                under section 605B relating to information 
                resulting from identity theft, to prevent that 
                person from refurnishing such blocked 
                information.
                  (B) Information alleged to result from 
                identity theft.--If a consumer submits an 
                identity theft report to a person who furnishes 
                information to a consumer reporting agency at 
                the address specified by that person for 
                receiving such reports stating that information 
                maintained by such person that purports to 
                relate to the consumer resulted from identity 
                theft, the person may not furnish such 
                information that purports to relate to the 
                consumer to any consumer reporting agency, 
                unless the person subsequently knows or is 
                informed by the consumer that the information 
                is correct.
          (7) Negative information.--
                  (A) Notice to consumer required.--
                          (i) In general.--If any financial 
                        institution that extends credit and 
                        regularly and in the ordinary course of 
                        business furnishes information to a 
                        consumer reporting agency described in 
                        section 603(p) furnishes negative 
                        information to such an agency regarding 
                        credit extended to a customer, the 
                        financial institution shall provide a 
                        notice of such furnishing of negative 
                        information, in writing, to the 
                        customer.
                          (ii) Notice effective for subsequent 
                        submissions.--After providing such 
                        notice, the financial institution may 
                        submit additional negative information 
                        to a consumer reporting agency 
                        described in section 603(p) with 
                        respect to the same transaction, 
                        extension of credit, account, or 
                        customer without providing additional 
                        notice to the customer.
                  (B) Time of notice.--
                          (i) In general.--The notice required 
                        under subparagraph (A) shall be 
                        provided to the customer prior to, or 
                        no later than 30 days after, furnishing 
                        the negative information to a consumer 
                        reporting agency described in section 
                        603(p).
                          (ii) Coordination with new account 
                        disclosures.--If the notice is provided 
                        to the customer prior to furnishing the 
                        negative information to a consumer 
                        reporting agency, the notice may not be 
                        included in the initial disclosures 
                        provided under section 127(a) of the 
                        Truth in Lending Act.
                  (C) Coordination with other disclosures.--The 
                notice required under subparagraph (A)--
                          (i) may be included on or with any 
                        notice of default, any billing 
                        statement, or any other materials 
                        provided to the customer; and
                          (ii) must be clear and conspicuous.
                  (D) Model disclosure.--
                          (i) Duty of bureau.--The Bureau shall 
                        prescribe a brief model disclosure that 
                        a financial institution may use to 
                        comply with subparagraph (A), which 
                        shall not exceed 30 words.
                          (ii) Use of model not required.--No 
                        provision of this paragraph may be 
                        construed to require a financial 
                        institution to use any such model form 
                        prescribed by the Bureau.
                          (iii) Compliance using model.--A 
                        financial institution shall be deemed 
                        to be in compliance with subparagraph 
                        (A) if the financial institution uses 
                        any model form prescribed by the Bureau 
                        under this subparagraph, or the 
                        financial institution uses any such 
                        model form and rearranges its format.
                  (E) Use of notice without submitting negative 
                information.--No provision of this paragraph 
                shall be construed as requiring a financial 
                institution that has provided a customer with a 
                notice described in subparagraph (A) to furnish 
                negative information about the customer to a 
                consumer reporting agency.
                  (F) Safe harbor.--A financial institution 
                shall not be liable for failure to perform the 
                duties required by this paragraph if, at the 
                time of the failure, the financial institution 
                maintained reasonable policies and procedures 
                to comply with this paragraph or the financial 
                institution reasonably believed that the 
                institution is prohibited, by law, from 
                contacting the consumer.
                  (G) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Negative information.--The term 
                        ``negative information'' means 
                        information concerning a customer's 
                        delinquencies, late payments, 
                        insolvency, or any form of default.
                          (ii) Customer; financial 
                        institution.--The terms ``customer''and 
                        ``financial institution'' have the same 
                        meanings as in section 509 Public Law 
                        106-102.
          (8) Ability of consumer to dispute information 
        directly with furnisher.--
                  (A) In general.--The Bureau shall, in 
                consultation with the Federal Trade Commission, 
                the Federal banking agencies, and the National 
                Credit Union Administration, prescribe 
                regulations that shall identify the 
                circumstances under which a furnisher shall be 
                required to reinvestigate a dispute concerning 
                the accuracy of information contained in a 
                consumer report on the consumer, based on a 
                direct request of a consumer.
                  (B) Considerations.--In prescribing 
                regulations under subparagraph (A), the 
                agencies shall weigh--
                          (i) the benefits to consumers with 
                        the costs on furnishers and the credit 
                        reporting system;
                          (ii) the impact on the overall 
                        accuracy and integrity of consumer 
                        reports of any such requirements;
                          (iii) whether direct contact by the 
                        consumer with the furnisher would 
                        likely result in the most expeditious 
                        resolution of any such dispute; and
                          (iv) the potential impact on the 
                        credit reporting process if credit 
                        repair organizations, as defined in 
                        section 403(3), including entities that 
                        would be a credit repair organization, 
                        but for section 403(3)(B)(i), are able 
                        to circumvent the prohibition in 
                        subparagraph (G).
                  (C) Applicability.--Subparagraphs (D) through 
                (G) shall apply in any circumstance identified 
                under the regulations promulgated under 
                subparagraph (A).
                  (D) Submitting a notice of dispute.--A 
                consumer who seeks to dispute the accuracy of 
                information shall provide a dispute notice 
                directly to such person at the address 
                specified by the person for such notices that--
                          (i) identifies the specific 
                        information that is being disputed;
                          (ii) explains the basis for the 
                        dispute; and
                          (iii) includes all supporting 
                        documentation required by the furnisher 
                        to substantiate the basis of the 
                        dispute.
                  (E) Duty of person after receiving notice of 
                dispute.--After receiving a notice of dispute 
                from a consumer pursuant to subparagraph (D), 
                the person that provided the information in 
                dispute to a consumer reporting agency shall--
                          (i) conduct an investigation with 
                        respect to the disputed information;
                          (ii) review all relevant information 
                        provided by the consumer with the 
                        notice;
                          (iii) complete such person's 
                        investigation of the dispute and report 
                        the results of the investigation to the 
                        consumer before the expiration of the 
                        period under section 611(a)(1) within 
                        which a consumer reporting agency would 
                        be required to complete its action if 
                        the consumer had elected to dispute the 
                        information under that section; and
                          (iv) if the investigation finds that 
                        the information reported was 
                        inaccurate, promptly notify each 
                        consumer reporting agency to which the 
                        person furnished the inaccurate 
                        information of that determination and 
                        provide to the agency any correction to 
                        that information that is necessary to 
                        make the information provided by the 
                        person accurate.
                  (F) Frivolous or irrelevant dispute.--
                          (i) In general.--This paragraph shall 
                        not apply if the person receiving a 
                        notice of a dispute from a consumer 
                        reasonably determines that the dispute 
                        is frivolous or irrelevant, including--
                                  (I) by reason of the failure 
                                of a consumer to provide 
                                sufficient information to 
                                investigate the disputed 
                                information; or
                                  (II) the submission by a 
                                consumer of a dispute that is 
                                substantially the same as a 
                                dispute previously submitted by 
                                or for the consumer, either 
                                directly to the person or 
                                through a consumer reporting 
                                agency under subsection (b), 
                                with respect to which the 
                                person has already performed 
                                the person's duties under this 
                                paragraph or subsection (b), as 
                                applicable.
                          (ii) Notice of determination.--Upon 
                        making any determination under clause 
                        (i) that a dispute is frivolous or 
                        irrelevant, the person shall notify the 
                        consumer of such determination not 
                        later than 5 business days after making 
                        such determination, by mail or, if 
                        authorized by the consumer for that 
                        purpose, by any other means available 
                        to the person.
                          (iii) Contents of notice.--A notice 
                        under clause (ii) shall include--
                                  (I) the reasons for the 
                                determination under clause (i); 
                                and
                                  (II) identification of any 
                                information required to 
                                investigate the disputed 
                                information, which may consist 
                                of a standardized form 
                                describing the general nature 
                                of such information.
                  (G) Exclusion of credit repair 
                organizations.--This paragraph shall not apply 
                if the notice of the dispute is submitted by, 
                is prepared on behalf of the consumer by, or is 
                submitted on a form supplied to the consumer 
                by, a credit repair organization, as defined in 
                section 403(3), or an entity that would be a 
                credit repair organization, but for section 
                403(3)(B)(i).
          (9) Duty to provide notice of status as medical 
        information furnisher.--A person whose primary business 
        is providing medical services, products, or devices, or 
        the person's agent or assignee, who furnishes 
        information to a consumer reporting agency on a 
        consumer shall be considered a medical information 
        furnisher for purposes of this title, and shall notify 
        the agency of such status.
  (b) Duties of Furnishers of Information Upon Notice of 
Dispute.--
          (1) In general.--After receiving notice pursuant to 
        section 611(a)(2) of a dispute with regard to the 
        completeness or accuracy of any information provided by 
        a person to a consumer reporting agency, the person 
        shall--
                  (A) conduct an investigation with respect to 
                the disputed information;
                  (B) review all relevant information provided 
                by the consumer reporting agency pursuant to 
                section 611(a)(2);
                  (C) report the results of the investigation 
                to the consumer reporting agency;
                  (D) if the investigation finds that the 
                information is incomplete or inaccurate, report 
                those results to all other consumer reporting 
                agencies to which the person furnished the 
                information and that compile and maintain files 
                on consumers on a nationwide basis; and
                  (E) if an item of information disputed by a 
                consumer is found to be inaccurate or 
                incomplete or cannot be verified after any 
                reinvestigation under paragraph (1), for 
                purposes of reporting to a consumer reporting 
                agency only, as appropriate, based on the 
                results of the reinvestigation promptly--
                          (i) modify that item of information;
                          (ii) delete that item of information; 
                        or
                          (iii) permanently block the reporting 
                        of that item of information.
          (2) Deadline.--A person shall complete all 
        investigations, reviews, and reports required under 
        paragraph (1) regarding information provided by the 
        person to a consumer reporting agency, before the 
        expiration of the period under section 611(a)(1) within 
        which the consumer reporting agency is required to 
        complete actions required by that section regarding 
        that information.
  (c) Limitation on Liability.--Except as provided in section 
621(c)(1)(B), sections 616 and 617 do not apply to any 
violation of--
          (1) subsection (a) of this section, including any 
        regulations issued thereunder;
          (2) subsection (e) of this section, except that 
        nothing in this paragraph shall limit, expand, or 
        otherwise affect liability under section 616 or 617, as 
        applicable, for violations of subsection (b) of this 
        section; or
          (3) subsection (e) of section 615.
  (d) Limitation on Enforcement.--The provisions of law 
described in paragraphs (1) through (3) of subsection (c) 
(other than with respect to the exception described in 
paragraph (2) of subsection (c)) shall be enforced exclusively 
as provided under section 621 by the Federal agencies and 
officials and the State officials identified in section 621.
  (e) Accuracy Guidelines and Regulations Required.--
          (1) Guidelines.--The Bureau shall, with respect to 
        persons or entities that are subject to the enforcement 
        authority of the Bureau under section 621--
                  (A) establish and maintain guidelines for use 
                by each person that furnishes information to a 
                consumer reporting agency regarding the 
                accuracy and integrity of the information 
                relating to consumers that such entities 
                furnish to consumer reporting agencies, and 
                update such guidelines as often as necessary; 
                and
                  (B) prescribe regulations requiring each 
                person that furnishes information to a consumer 
                reporting agency to establish reasonable 
                policies and procedures for implementing the 
                guidelines established pursuant to subparagraph 
                (A).
          (2) Criteria.--In developing the guidelines required 
        by paragraph (1)(A), the Bureau shall--
                  (A) identify patterns, practices, and 
                specific forms of activity that can compromise 
                the accuracy and integrity of information 
                furnished to consumer reporting agencies;
                  (B) review the methods (including 
                technological means) used to furnish 
                information relating to consumers to consumer 
                reporting agencies;
                  (C) determine whether persons that furnish 
                information to consumer reporting agencies 
                maintain and enforce policies to ensure the 
                accuracy and integrity of information furnished 
                to consumer reporting agencies; and
                  (D) examine the policies and processes that 
                persons that furnish information to consumer 
                reporting agencies employ to conduct 
                reinvestigations and correct inaccurate 
                information relating to consumers that has been 
                furnished to consumer reporting agencies.
  (f) Full-File Credit Reporting.--
          (1) In general.--Subject to the limitation in 
        paragraph (2) and notwithstanding any other provision 
        of law, a person or the Secretary of Housing and Urban 
        Development may furnish to a consumer reporting agency 
        information relating to the performance of a consumer 
        in making payments--
                  (A) under a lease agreement with respect to a 
                dwelling, including such a lease in which the 
                Department of Housing and Urban Development 
                provides subsidized payments for occupancy in a 
                dwelling; or
                  (B) pursuant to a contract for a utility or 
                telecommunications service.
          (2) Limitation.--Information about a consumer's usage 
        of any utility services provided by a utility or 
        telecommunication firm may be furnished to a consumer 
        reporting agency only to the extent that such 
        information relates to payment by the consumer for the 
        services of such utility or telecommunication service 
        or other terms of the provision of the services to the 
        consumer, including any deposit, discount, or 
        conditions for interruption or termination of the 
        services.
          (3) Payment plan.--An energy utility firm may not 
        report payment information to a consumer reporting 
        agency with respect to an outstanding balance of a 
        consumer as late if--
                  (A) the energy utility firm and the consumer 
                have entered into a payment plan (including a 
                deferred payment agreement, an arrearage 
                management program, or a debt forgiveness 
                program) with respect to such outstanding 
                balance; and
                  (B) the consumer is meeting the obligations 
                of the payment plan, as determined by the 
                energy utility firm.
          (4) Definitions.--In this subsection, the following 
        definitions shall apply:
                  (A) Energy utility firm.--The term ``energy 
                utility firm'' means an entity that provides 
                gas or electric utility services to the public.
                  (B) Utility or telecommunication firm.--The 
                term ``utility or telecommunication firm'' 
                means an entity that provides utility services 
                to the public through pipe, wire, landline, 
                wireless, cable, or other connected facilities, 
                or radio, electronic, or similar transmission 
                (including the extension of such facilities).

           *       *       *       *       *       *       *

                              ----------                              

                     CONSUMER CREDIT PROTECTION ACT

           *       *       *       *       *       *       *
TITLE VI--CONSUMER CREDIT REPORTING

           *       *       *       *       *       *       *

SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER 
                    REPORTING AGENCIES.

  (a) Duty of Furnishers of Information To Provide Accurate 
Information.--
          (1) Prohibition.--
                  (A) Reporting information with actual 
                knowledge of errors.--A person shall not 
                furnish any information relating to a consumer 
                to any consumer reporting agency if the person 
                knows or has reasonable cause to believe that 
                the information is inaccurate.
                  (B) Reporting information after notice and 
                confirmation of errors.--A person shall not 
                furnish information relating to a consumer to 
                any consumer reporting agency if--
                          (i) the person has been notified by 
                        the consumer, at the address specified 
                        by the person for such notices, that 
                        specific information is inaccurate; and
                          (ii) the information is, in fact, 
                        inaccurate.
                  (C) No address requirement.--A person who 
                clearly and conspicuously specifies to the 
                consumer an address for notices referred to in 
                subparagraph (B) shall not be subject to 
                subparagraph (A); however, nothing in 
                subparagraph (B) shall require a person to 
                specify such an address.
                  (D) Definition.--For purposes of subparagraph 
                (A), the term ``reasonable cause to believe 
                that the information is inaccurate'' means 
                having specific knowledge, other than solely 
                allegations by the consumer, that would cause a 
                reasonable person to have substantial doubts 
                about the accuracy of the information.
          (2) Duty to correct and update information.--A person 
        who--
                  (A) regularly and in the ordinary course of 
                business furnishes information to one or more 
                consumer reporting agencies about the person's 
                transactions or experiences with any consumer; 
                and
                  (B) has furnished to a consumer reporting 
                agency information that the person determines 
                is not complete or accurate,
        shall promptly notify the consumer reporting agency of 
        that determination and provide to the agency any 
        corrections to that information, or any additional 
        information, that is necessary to make the information 
        provided by the person to the agency complete and 
        accurate, and shall not thereafter furnish to the 
        agency any of the information that remains not complete 
        or accurate.
          (3) Duty to provide notice of dispute.--If the 
        completeness or accuracy of any information furnished 
        by any person to any consumer reporting agency is 
        disputed to such person by a consumer, the person may 
        not furnish the information to any consumer reporting 
        agency without notice that such information is disputed 
        by the consumer.
          (4) Duty to provide notice of closed accounts.--A 
        person who regularly and in the ordinary course of 
        business furnishes information to a consumer reporting 
        agency regarding a consumer who has a credit account 
        with that person shall notify the agency of the 
        voluntary closure of the account by the consumer, in 
        information regularly furnished for the period in which 
        the account is closed.
          (5) Duty to provide notice of delinquency of 
        accounts.--(A) In general.--A person who furnishes 
        information to a consumer reporting agency regarding a 
        delinquent account being placed for collection, charged 
        to profit or loss, or subjected to any similar action 
        shall, not later than 90 days after furnishing the 
        information, notify the agency of the date of 
        delinquency on the account, which shall be the month 
        and year of the commencement of the delinquency on the 
        account that immediately preceded the action.
                  (B) Rule of construction.--For purposes of 
                this paragraph only, and provided that the 
                consumer does not dispute the information, a 
                person that furnishes information on a 
                delinquent account that is placed for 
                collection, charged for profit or loss, or 
                subjected to any similar action, complies with 
                this paragraph, if--
                          (i) the person reports the same date 
                        of delinquency as that provided by the 
                        creditor to which the account was owed 
                        at the time at which the commencement 
                        of the delinquency occurred, if the 
                        creditor previously reported that date 
                        of delinquency to a consumer reporting 
                        agency;
                          (ii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency, and the 
                        person establishes and follows 
                        reasonable procedures to obtain the 
                        date of delinquency from the creditor 
                        or another reliable source and reports 
                        that date to a consumer reporting 
                        agency as the date of delinquency; or
                          (iii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency and the date 
                        of delinquency cannot be reasonably 
                        obtained as provided in clause (ii), 
                        the person establishes and follows 
                        reasonable procedures to ensure the 
                        date reported as the date of 
                        delinquency precedes the date on which 
                        the account is placed for collection, 
                        charged to profit or loss, or subjected 
                        to any similar action, and reports such 
                        date to the credit reporting agency.
          (6) Duties of furnishers upon notice of identity 
        theft-related information.--
                  (A) Reasonable procedures.--A person that 
                furnishes information to any consumer reporting 
                agency shall have in place reasonable 
                procedures to respond to any notification that 
                it receives from a consumer reporting agency 
                under section 605B relating to information 
                resulting from identity theft, to prevent that 
                person from refurnishing such blocked 
                information.
                  (B) Information alleged to result from 
                identity theft.--If a consumer submits an 
                identity theft report to a person who furnishes 
                information to a consumer reporting agency at 
                the address specified by that person for 
                receiving such reports stating that information 
                maintained by such person that purports to 
                relate to the consumer resulted from identity 
                theft, the person may not furnish such 
                information that purports to relate to the 
                consumer to any consumer reporting agency, 
                unless the person subsequently knows or is 
                informed by the consumer that the information 
                is correct.
          (7) Negative information.--
                  (A) Notice to consumer required.--
                          (i) In general.--If any financial 
                        institution that extends credit and 
                        regularly and in the ordinary course of 
                        business furnishes information to a 
                        consumer reporting agency described in 
                        section 603(p) furnishes negative 
                        information to such an agency regarding 
                        credit extended to a customer, the 
                        financial institution shall provide a 
                        notice of such furnishing of negative 
                        information, in writing, to the 
                        customer.
                          (ii) Notice effective for subsequent 
                        submissions.--After providing such 
                        notice, the financial institution may 
                        submit additional negative information 
                        to a consumer reporting agency 
                        described in section 603(p) with 
                        respect to the same transaction, 
                        extension of credit, account, or 
                        customer without providing additional 
                        notice to the customer.
                  (B) Time of notice.--
                          (i) In general.--The notice required 
                        under subparagraph (A) shall be 
                        provided to the customer prior to, or 
                        no later than 30 days after, furnishing 
                        the negative information to a consumer 
                        reporting agency described in section 
                        603(p).
                          (ii) Coordination with new account 
                        disclosures.--If the notice is provided 
                        to the customer prior to furnishing the 
                        negative information to a consumer 
                        reporting agency, the notice may not be 
                        included in the initial disclosures 
                        provided under section 127(a) of the 
                        Truth in Lending Act.
                  (C) Coordination with other disclosures.--The 
                notice required under subparagraph (A)--
                          (i) may be included on or with any 
                        notice of default, any billing 
                        statement, or any other materials 
                        provided to the customer; and
                          (ii) must be clear and conspicuous.
                  (D) Model disclosure.--
                          (i) Duty of bureau.--The Bureau shall 
                        prescribe a brief model disclosure that 
                        a financial institution may use to 
                        comply with subparagraph (A), which 
                        shall not exceed 30 words.
                          (ii) Use of model not required.--No 
                        provision of this paragraph may be 
                        construed to require a financial 
                        institution to use any such model form 
                        prescribed by the Bureau.
                          (iii) Compliance using model.--A 
                        financial institution shall be deemed 
                        to be in compliance with subparagraph 
                        (A) if the financial institution uses 
                        any model form prescribed by the Bureau 
                        under this subparagraph, or the 
                        financial institution uses any such 
                        model form and rearranges its format.
                  (E) Use of notice without submitting negative 
                information.--No provision of this paragraph 
                shall be construed as requiring a financial 
                institution that has provided a customer with a 
                notice described in subparagraph (A) to furnish 
                negative information about the customer to a 
                consumer reporting agency.
                  (F) Safe harbor.--A financial institution 
                shall not be liable for failure to perform the 
                duties required by this paragraph if, at the 
                time of the failure, the financial institution 
                maintained reasonable policies and procedures 
                to comply with this paragraph or the financial 
                institution reasonably believed that the 
                institution is prohibited, by law, from 
                contacting the consumer.
                  (G) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Negative information.--The term 
                        ``negative information'' means 
                        information concerning a customer's 
                        delinquencies, late payments, 
                        insolvency, or any form of default.
                          (ii) Customer; financial 
                        institution.--The terms ``customer''and 
                        ``financial institution'' have the same 
                        meanings as in section 509 Public Law 
                        106-102.
          (8) Ability of consumer to dispute information 
        directly with furnisher.--
                  (A) In general.--The Bureau shall, in 
                consultation with the Federal Trade Commission, 
                the Federal banking agencies, and the National 
                Credit Union Administration, prescribe 
                regulations that shall identify the 
                circumstances under which a furnisher shall be 
                required to reinvestigate a dispute concerning 
                the accuracy of information contained in a 
                consumer report on the consumer, based on a 
                direct request of a consumer.
                  (B) Considerations.--In prescribing 
                regulations under subparagraph (A), the 
                agencies shall weigh--
                          (i) the benefits to consumers with 
                        the costs on furnishers and the credit 
                        reporting system;
                          (ii) the impact on the overall 
                        accuracy and integrity of consumer 
                        reports of any such requirements;
                          (iii) whether direct contact by the 
                        consumer with the furnisher would 
                        likely result in the most expeditious 
                        resolution of any such dispute; and
                          (iv) the potential impact on the 
                        credit reporting process if credit 
                        repair organizations, as defined in 
                        section 403(3), including entities that 
                        would be a credit repair organization, 
                        but for section 403(3)(B)(i), are able 
                        to circumvent the prohibition in 
                        subparagraph (G).
                  (C) Applicability.--Subparagraphs (D) through 
                (G) shall apply in any circumstance identified 
                under the regulations promulgated under 
                subparagraph (A).
                  (D) Submitting a notice of dispute.--A 
                consumer who seeks to dispute the accuracy of 
                information shall provide a dispute notice 
                directly to such person at the address 
                specified by the person for such notices that--
                          (i) identifies the specific 
                        information that is being disputed;
                          (ii) explains the basis for the 
                        dispute; and
                          (iii) includes all supporting 
                        documentation required by the furnisher 
                        to substantiate the basis of the 
                        dispute.
                  (E) Duty of person after receiving notice of 
                dispute.--After receiving a notice of dispute 
                from a consumer pursuant to subparagraph (D), 
                the person that provided the information in 
                dispute to a consumer reporting agency shall--
                          (i) conduct an investigation with 
                        respect to the disputed information;
                          (ii) review all relevant information 
                        provided by the consumer with the 
                        notice;
                          (iii) complete such person's 
                        investigation of the dispute and report 
                        the results of the investigation to the 
                        consumer before the expiration of the 
                        period under section 611(a)(1) within 
                        which a consumer reporting agency would 
                        be required to complete its action if 
                        the consumer had elected to dispute the 
                        information under that section; and
                          (iv) if the investigation finds that 
                        the information reported was 
                        inaccurate, promptly notify each 
                        consumer reporting agency to which the 
                        person furnished the inaccurate 
                        information of that determination and 
                        provide to the agency any correction to 
                        that information that is necessary to 
                        make the information provided by the 
                        person accurate.
                  (F) Frivolous or irrelevant dispute.--
                          (i) In general.--This paragraph shall 
                        not apply if the person receiving a 
                        notice of a dispute from a consumer 
                        reasonably determines that the dispute 
                        is frivolous or irrelevant, including--
                                  (I) by reason of the failure 
                                of a consumer to provide 
                                sufficient information to 
                                investigate the disputed 
                                information; or
                                  (II) the submission by a 
                                consumer of a dispute that is 
                                substantially the same as a 
                                dispute previously submitted by 
                                or for the consumer, either 
                                directly to the person or 
                                through a consumer reporting 
                                agency under subsection (b), 
                                with respect to which the 
                                person has already performed 
                                the person's duties under this 
                                paragraph or subsection (b), as 
                                applicable.
                          (ii) Notice of determination.--Upon 
                        making any determination under clause 
                        (i) that a dispute is frivolous or 
                        irrelevant, the person shall notify the 
                        consumer of such determination not 
                        later than 5 business days after making 
                        such determination, by mail or, if 
                        authorized by the consumer for that 
                        purpose, by any other means available 
                        to the person.
                          (iii) Contents of notice.--A notice 
                        under clause (ii) shall include--
                                  (I) the reasons for the 
                                determination under clause (i); 
                                and
                                  (II) identification of any 
                                information required to 
                                investigate the disputed 
                                information, which may consist 
                                of a standardized form 
                                describing the general nature 
                                of such information.
                  (G) Exclusion of credit repair 
                organizations.--This paragraph shall not apply 
                if the notice of the dispute is submitted by, 
                is prepared on behalf of the consumer by, or is 
                submitted on a form supplied to the consumer 
                by, a credit repair organization, as defined in 
                section 403(3), or an entity that would be a 
                credit repair organization, but for section 
                403(3)(B)(i).
          (9) Duty to provide notice of status as medical 
        information furnisher.--A person whose primary business 
        is providing medical services, products, or devices, or 
        the person's agent or assignee, who furnishes 
        information to a consumer reporting agency on a 
        consumer shall be considered a medical information 
        furnisher for purposes of this title, and shall notify 
        the agency of such status.
  (b) Duties of Furnishers of Information Upon Notice of 
Dispute.--
          (1) In general.--After receiving notice pursuant to 
        section 611(a)(2) of a dispute with regard to the 
        completeness or accuracy of any information provided by 
        a person to a consumer reporting agency, the person 
        shall--
                  (A) conduct an investigation with respect to 
                the disputed information;
                  (B) review all relevant information provided 
                by the consumer reporting agency pursuant to 
                section 611(a)(2);
                  (C) report the results of the investigation 
                to the consumer reporting agency;
                  (D) if the investigation finds that the 
                information is incomplete or inaccurate, report 
                those results to all other consumer reporting 
                agencies to which the person furnished the 
                information and that compile and maintain files 
                on consumers on a nationwide basis; and
                  (E) if an item of information disputed by a 
                consumer is found to be inaccurate or 
                incomplete or cannot be verified after any 
                reinvestigation under paragraph (1), for 
                purposes of reporting to a consumer reporting 
                agency only, as appropriate, based on the 
                results of the reinvestigation promptly--
                          (i) modify that item of information;
                          (ii) delete that item of information; 
                        or
                          (iii) permanently block the reporting 
                        of that item of information.
          (2) Deadline.--A person shall complete all 
        investigations, reviews, and reports required under 
        paragraph (1) regarding information provided by the 
        person to a consumer reporting agency, before the 
        expiration of the period under section 611(a)(1) within 
        which the consumer reporting agency is required to 
        complete actions required by that section regarding 
        that information.
  (c) Limitation on Liability.--Except as provided in section 
621(c)(1)(B), sections 616 and 617 do not apply to any 
violation of--
          (1) subsection (a) of this section, including any 
        regulations issued thereunder;
          (2) subsection (e) of this section, except that 
        nothing in this paragraph shall limit, expand, or 
        otherwise affect liability under section 616 or 617, as 
        applicable, for violations of subsection (b) of this 
        section; [or]
          (3) subsection (f) of this section, including any 
        regulations issued thereunder; or
          [(3)] (4) subsection (e) of section 615.
  (d) Limitation on Enforcement.--The provisions of law 
described in paragraphs (1) through (3) of subsection (c) 
(other than with respect to the exception described in 
paragraph (2) of subsection (c)) shall be enforced exclusively 
as provided under section 621 by the Federal agencies and 
officials and the State officials identified in section 621.
  (e) Accuracy Guidelines and Regulations Required.--
          (1) Guidelines.--The Bureau shall, with respect to 
        persons or entities that are subject to the enforcement 
        authority of the Bureau under section 621--
                  (A) establish and maintain guidelines for use 
                by each person that furnishes information to a 
                consumer reporting agency regarding the 
                accuracy and integrity of the information 
                relating to consumers that such entities 
                furnish to consumer reporting agencies, and 
                update such guidelines as often as necessary; 
                and
                  (B) prescribe regulations requiring each 
                person that furnishes information to a consumer 
                reporting agency to establish reasonable 
                policies and procedures for implementing the 
                guidelines established pursuant to subparagraph 
                (A).
          (2) Criteria.--In developing the guidelines required 
        by paragraph (1)(A), the Bureau shall--
                  (A) identify patterns, practices, and 
                specific forms of activity that can compromise 
                the accuracy and integrity of information 
                furnished to consumer reporting agencies;
                  (B) review the methods (including 
                technological means) used to furnish 
                information relating to consumers to consumer 
                reporting agencies;
                  (C) determine whether persons that furnish 
                information to consumer reporting agencies 
                maintain and enforce policies to ensure the 
                accuracy and integrity of information furnished 
                to consumer reporting agencies; and
                  (D) examine the policies and processes that 
                persons that furnish information to consumer 
                reporting agencies employ to conduct 
                reinvestigations and correct inaccurate 
                information relating to consumers that has been 
                furnished to consumer reporting agencies.

           *       *       *       *       *       *       *

                              ----------                              

                    SECURITIES EXCHANGE ACT OF 1934

TITLE I--REGULATION OF SECURITIES EXCHANGES

           *       *       *       *       *       *       *

                  definitions and application of title

  Sec. 3. (a) When used in this title, unless the context 
otherwise requires--
          (1) The term ``exchange'' means any organization, 
        association, or group of persons, whether incorporated 
        or unincorporated, which constitutes, maintains, or 
        provides a market place or facilities for bringing 
        together purchasers and sellers of securities or for 
        otherwise performing with respect to securities the 
        functions commonly performed by a stock exchange as 
        that term is generally understood, and includes the 
        market place and the market facilities maintained by 
        such exchange.
          (2) The term ``facility'' when used with respect to 
        an exchange includes its premises, tangible or 
        intangible property whether on the premises or not, any 
        right to the use of such premises or property or any 
        service thereof for the purpose of effecting or 
        reporting a transaction on an exchange (including, 
        among other things, any system of communication to or 
        from the exchange, by ticker or otherwise, maintained 
        by or with the consent of the exchange), and any right 
        of the exchange to the use of any property or service.
          (3)(A) The term ``member'' when used with respect to 
        a national securities exchange means (i) any natural 
        person permitted to effect transactions on the floor of 
        the exchange without the services of another person 
        acting as broker, (ii) any registered broker or dealer 
        with which such a natural person is associated, (iii) 
        any registered broker or dealer permitted to designate 
        as a representative such a natural person, and (iv) any 
        other registered broker or dealer which agrees to be 
        regulated by such exchange and with respect to which 
        the exchange undertakes to enforce compliance with the 
        provisions of this title, the rules and regulations 
        thereunder, and its own rules. For purposes of sections 
        6(b)(1), 6(b)(4), 6(b)(6), 6(b)(7), 6(d), 17(d), 19(d), 
        19(e), 19(g), 19(h), and 21 of this title, the term 
        ``member'' when used with respect to a national 
        securities exchange also means, to the extent of the 
        rules of the exchange specified by the Commission, any 
        person required by the Commission to comply with such 
        rules pursuant to section 6(f) of this title.
          (B) The term ``member'' when used with respect to a 
        registered securities association means any broker or 
        dealer who agrees to be regulated by such association 
        and with respect to whom the association undertakes to 
        enforce compliance with the provisions of this title, 
        the rules and regulations thereunder, and its own 
        rules.
          (4) Broker.--
                  (A) In general.--The term ``broker'' means 
                any person engaged in the business of effecting 
                transactions in securities for the account of 
                others.
                  (B) Exception for certain bank activities.--A 
                bank shall not be considered to be a broker 
                because the bank engages in any one or more of 
                the following activities under the conditions 
                described:
                          (i) Third party brokerage 
                        arrangements.--The bank enters into a 
                        contractual or other written 
                        arrangement with a broker or dealer 
                        registered under this title under which 
                        the broker or dealer offers brokerage 
                        services on or off the premises of the 
                        bank if--
                                  (I) such broker or dealer is 
                                clearly identified as the 
                                person performing the brokerage 
                                services;
                                  (II) the broker or dealer 
                                performs brokerage services in 
                                an area that is clearly marked 
                                and, to the extent practicable, 
                                physically separate from the 
                                routine deposit-taking 
                                activities of the bank;
                                  (III) any materials used by 
                                the bank to advertise or 
                                promote generally the 
                                availability of brokerage 
                                services under the arrangement 
                                clearly indicate that the 
                                brokerage services are being 
                                provided by the broker or 
                                dealer and not by the bank;
                                  (IV) any materials used by 
                                the bank to advertise or 
                                promote generally the 
                                availability of brokerage 
                                services under the arrangement 
                                are in compliance with the 
                                Federal securities laws before 
                                distribution;
                                  (V) bank employees (other 
                                than associated persons of a 
                                broker or dealer who are 
                                qualified pursuant to the rules 
                                of a self-regulatory 
                                organization) perform only 
                                clerical or ministerial 
                                functions in connection with 
                                brokerage transactions 
                                including scheduling 
                                appointments with the 
                                associated persons of a broker 
                                or dealer, except that bank 
                                employees may forward customer 
                                funds or securities and may 
                                describe in general terms the 
                                types of investment vehicles 
                                available from the bank and the 
                                broker or dealer under the 
                                arrangement;
                                  (VI) bank employees do not 
                                receive incentive compensation 
                                for any brokerage transaction 
                                unless such employees are 
                                associated persons of a broker 
                                or dealer and are qualified 
                                pursuant to the rules of a 
                                self-regulatory organization, 
                                except that the bank employees 
                                may receive compensation for 
                                the referral of any customer if 
                                the compensation is a nominal 
                                one-time cash fee of a fixed 
                                dollar amount and the payment 
                                of the fee is not contingent on 
                                whether the referral results in 
                                a transaction;
                                  (VII) such services are 
                                provided by the broker or 
                                dealer on a basis in which all 
                                customers that receive any 
                                services are fully disclosed to 
                                the broker or dealer;
                                  (VIII) the bank does not 
                                carry a securities account of 
                                the customer except as 
                                permitted under clause (ii) or 
                                (viii) of this subparagraph; 
                                and
                                  (IX) the bank, broker, or 
                                dealer informs each customer 
                                that the brokerage services are 
                                provided by the broker or 
                                dealer and not by the bank and 
                                that the securities are not 
                                deposits or other obligations 
                                of the bank, are not guaranteed 
                                by the bank, and are not 
                                insured by the Federal Deposit 
                                Insurance Corporation.
                          (ii) Trust activities.--The bank 
                        effects transactions in a trustee 
                        capacity, or effects transactions in a 
                        fiduciary capacity in its trust 
                        department or other department that is 
                        regularly examined by bank examiners 
                        for compliance with fiduciary 
                        principles and standards, and--
                                  (I) is chiefly compensated 
                                for such transactions, 
                                consistent with fiduciary 
                                principles and standards, on 
                                the basis of an administration 
                                or annual fee (payable on a 
                                monthly, quarterly, or other 
                                basis), a percentage of assets 
                                under management, or a flat or 
                                capped per order processing fee 
                                equal to not more than the cost 
                                incurred by the bank in 
                                connection with executing 
                                securities transactions for 
                                trustee and fiduciary 
                                customers, or any combination 
                                of such fees; and
                                  (II) does not publicly 
                                solicit brokerage business, 
                                other than by advertising that 
                                it effects transactions in 
                                securities in conjunction with 
                                advertising its other trust 
                                activities.
                          (iii) Permissible securities 
                        transactions.--The bank effects 
                        transactions in--
                                  (I) commercial paper, bankers 
                                acceptances, or commercial 
                                bills;
                                  (II) exempted securities;
                                  (III) qualified Canadian 
                                government obligations as 
                                defined in section 5136 of the 
                                Revised Statutes, in conformity 
                                with section 15C of this title 
                                and the rules and regulations 
                                thereunder, or obligations of 
                                the North American Development 
                                Bank; or
                                  (IV) any standardized, credit 
                                enhanced debt security issued 
                                by a foreign government 
                                pursuant to the March 1989 plan 
                                of then Secretary of the 
                                Treasury Brady, used by such 
                                foreign government to retire 
                                outstanding commercial bank 
                                loans.
                          (iv) Certain stock purchase plans.--
                                  (I) Employee benefit plans.--
                                The bank effects transactions, 
                                as part of its transfer agency 
                                activities, in the securities 
                                of an issuer as part of any 
                                pension, retirement, profit-
                                sharing, bonus, thrift, 
                                savings, incentive, or other 
                                similar benefit plan for the 
                                employees of that issuer or its 
                                affiliates (as defined in 
                                section 2 of the Bank Holding 
                                Company Act of 1956), if the 
                                bank does not solicit 
                                transactions or provide 
                                investment advice with respect 
                                to the purchase or sale of 
                                securities in connection with 
                                the plan.
                                  (II) Dividend reinvestment 
                                plans.--The bank effects 
                                transactions, as part of its 
                                transfer agency activities, in 
                                the securities of an issuer as 
                                part of that issuer's dividend 
                                reinvestment plan, if--
                                          (aa) the bank does 
                                        not solicit 
                                        transactions or provide 
                                        investment advice with 
                                        respect to the purchase 
                                        or sale of securities 
                                        in connection with the 
                                        plan; and
                                          (bb) the bank does 
                                        not net shareholders' 
                                        buy and sell orders, 
                                        other than for programs 
                                        for odd-lot holders or 
                                        plans registered with 
                                        the Commission.
                                  (III) Issuer plans.--The bank 
                                effects transactions, as part 
                                of its transfer agency 
                                activities, in the securities 
                                of an issuer as part of a plan 
                                or program for the purchase or 
                                sale of that issuer's shares, 
                                if--
                                          (aa) the bank does 
                                        not solicit 
                                        transactions or provide 
                                        investment advice with 
                                        respect to the purchase 
                                        or sale of securities 
                                        in connection with the 
                                        plan or program; and
                                          (bb) the bank does 
                                        not net shareholders' 
                                        buy and sell orders, 
                                        other than for programs 
                                        for odd-lot holders or 
                                        plans registered with 
                                        the Commission.
                                  (IV) Permissible delivery of 
                                materials.--The exception to 
                                being considered a broker for a 
                                bank engaged in activities 
                                described in subclauses (I), 
                                (II), and (III) will not be 
                                affected by delivery of written 
                                or electronic plan materials by 
                                a bank to employees of the 
                                issuer, shareholders of the 
                                issuer, or members of affinity 
                                groups of the issuer, so long 
                                as such materials are--
                                          (aa) comparable in 
                                        scope or nature to that 
                                        permitted by the 
                                        Commission as of the 
                                        date of the enactment 
                                        of the Gramm-Leach-
                                        Bliley Act; or
                                          (bb) otherwise 
                                        permitted by the 
                                        Commission.
                          (v) Sweep accounts.--The bank effects 
                        transactions as part of a program for 
                        the investment or reinvestment of 
                        deposit funds into any no-load, open-
                        end management investment company 
                        registered under the Investment Company 
                        Act of 1940 that holds itself out as a 
                        money market fund.
                          (vi) Affiliate transactions.--The 
                        bank effects transactions for the 
                        account of any affiliate of the bank 
                        (as defined in section 2 of the Bank 
                        Holding Company Act of 1956) other 
                        than--
                                  (I) a registered broker or 
                                dealer; or
                                  (II) an affiliate that is 
                                engaged in merchant banking, as 
                                described in section 4(k)(4)(H) 
                                of the Bank Holding Company Act 
                                of 1956.
                          (vii) Private securities offerings.--
                        The bank--
                                  (I) effects sales as part of 
                                a primary offering of 
                                securities not involving a 
                                public offering, pursuant to 
                                section 3(b), 4(2), or 4(5) of 
                                the Securities Act of 1933 or 
                                the rules and regulations 
                                issued thereunder;
                                  (II) at any time after the 
                                date that is 1 year after the 
                                date of the enactment of the 
                                Gramm-Leach-Bliley Act, is not 
                                affiliated with a broker or 
                                dealer that has been registered 
                                for more than 1 year in 
                                accordance with this Act, and 
                                engages in dealing, market 
                                making, or underwriting 
                                activities, other than with 
                                respect to exempted securities; 
                                and
                                  (III) if the bank is not 
                                affiliated with a broker or 
                                dealer, does not effect any 
                                primary offering described in 
                                subclause (I) the aggregate 
                                amount of which exceeds 25 
                                percent of the capital of the 
                                bank, except that the 
                                limitation of this subclause 
                                shall not apply with respect to 
                                any sale of government 
                                securities or municipal 
                                securities.
                          (viii) Safekeeping and custody 
                        activities.--
                                  (I) In general.--The bank, as 
                                part of customary banking 
                                activities--
                                          (aa) provides 
                                        safekeeping or custody 
                                        services with respect 
                                        to securities, 
                                        including the exercise 
                                        of warrants and other 
                                        rights on behalf of 
                                        customers;
                                          (bb) facilitates the 
                                        transfer of funds or 
                                        securities, as a 
                                        custodian or a clearing 
                                        agency, in connection 
                                        with the clearance and 
                                        settlement of its 
                                        customers' transactions 
                                        in securities;
                                          (cc) effects 
                                        securities lending or 
                                        borrowing transactions 
                                        with or on behalf of 
                                        customers as part of 
                                        services provided to 
                                        customers pursuant to 
                                        division (aa) or (bb) 
                                        or invests cash 
                                        collateral pledged in 
                                        connection with such 
                                        transactions;
                                          (dd) holds securities 
                                        pledged by a customer 
                                        to another person or 
                                        securities subject to 
                                        purchase or resale 
                                        agreements involving a 
                                        customer, or 
                                        facilitates the 
                                        pledging or transfer of 
                                        such securities by book 
                                        entry or as otherwise 
                                        provided under 
                                        applicable law, if the 
                                        bank maintains records 
                                        separately identifying 
                                        the securities and the 
                                        customer; or
                                          (ee) serves as a 
                                        custodian or provider 
                                        of other related 
                                        administrative services 
                                        to any individual 
                                        retirement account, 
                                        pension, retirement, 
                                        profit sharing, bonus, 
                                        thrift savings, 
                                        incentive, or other 
                                        similar benefit plan.
                                  (II) Exception for carrying 
                                broker activities.--The 
                                exception to being considered a 
                                broker for a bank engaged in 
                                activities described in 
                                subclause (I) shall not apply 
                                if the bank, in connection with 
                                such activities, acts in the 
                                United States as a carrying 
                                broker (as such term, and 
                                different formulations thereof, 
                                are used in section 15(c)(3) of 
                                this title and the rules and 
                                regulations thereunder) for any 
                                broker or dealer, unless such 
                                carrying broker activities are 
                                engaged in with respect to 
                                government securities (as 
                                defined in paragraph (42) of 
                                this subsection).
                          (ix) Identified banking products.--
                        The bank effects transactions in 
                        identified banking products as defined 
                        in section 206 of the Gramm-Leach-
                        Bliley Act.
                          (x) Municipal securities.--The bank 
                        effects transactions in municipal 
                        securities.
                          (xi) De minimis exception.--The bank 
                        effects, other than in transactions 
                        referred to in clauses (i) through (x), 
                        not more than 500 transactions in 
                        securities in any calendar year, and 
                        such transactions are not effected by 
                        an employee of the bank who is also an 
                        employee of a broker or dealer.
                  (C) Execution by broker or dealer.--The 
                exception to being considered a broker for a 
                bank engaged in activities described in clauses 
                (ii), (iv), and (viii) of subparagraph (B) 
                shall not apply if the activities described in 
                such provisions result in the trade in the 
                United States of any security that is a 
                publicly traded security in the United States, 
                unless--
                          (i) the bank directs such trade to a 
                        registered broker or dealer for 
                        execution;
                          (ii) the trade is a cross trade or 
                        other substantially similar trade of a 
                        security that--
                                  (I) is made by the bank or 
                                between the bank and an 
                                affiliated fiduciary; and
                                  (II) is not in contravention 
                                of fiduciary principles 
                                established under applicable 
                                Federal or State law; or
                          (iii) the trade is conducted in some 
                        other manner permitted under rules, 
                        regulations, or orders as the 
                        Commission may prescribe or issue.
                  (D) Fiduciary capacity.--For purposes of 
                subparagraph (B)(ii), the term ``fiduciary 
                capacity'' means--
                          (i) in the capacity as trustee, 
                        executor, administrator, registrar of 
                        stocks and bonds, transfer agent, 
                        guardian, assignee, receiver, or 
                        custodian under a uniform gift to minor 
                        act, or as an investment adviser if the 
                        bank receives a fee for its investment 
                        advice;
                          (ii) in any capacity in which the 
                        bank possesses investment discretion on 
                        behalf of another; or
                          (iii) in any other similar capacity.
                  (E) Exception for entities subject to section 
                15(e).--The term ``broker'' does not include a 
                bank that--
                          (i) was, on the day before the date 
                        of enactment of the Gramm-Leach-Bliley 
                        Act, subject to section 15(e); and
                          (ii) is subject to such restrictions 
                        and requirements as the Commission 
                        considers appropriate.
                  (F) Joint rulemaking required.--The 
                Commission and the Board of Governors of the 
                Federal Reserve System shall jointly adopt a 
                single set of rules or regulations to implement 
                the exceptions in subparagraph (B).
          (5) Dealer.--
                  (A) In general.--The term ``dealer'' means 
                any person engaged in the business of buying 
                and selling securities (not including security-
                based swaps, other than security-based swaps 
                with or for persons that are not eligible 
                contract participants) for such person's own 
                account through a broker or otherwise.
                  (B) Exception for person not engaged in the 
                business of dealing.--The term ``dealer'' does 
                not include a person that buys or sells 
                securities (not including security-based swaps, 
                other than security-based swaps with or for 
                persons that are not eligible contract 
                participants) for such person's own account, 
                either individually or in a fiduciary capacity, 
                but not as a part of a regular business.
                  (C) Exception for certain bank activities.--A 
                bank shall not be considered to be a dealer 
                because the bank engages in any of the 
                following activities under the conditions 
                described:
                          (i) Permissible securities 
                        transactions.--The bank buys or sells--
                                  (I) commercial paper, bankers 
                                acceptances, or commercial 
                                bills;
                                  (II) exempted securities;
                                  (III) qualified Canadian 
                                government obligations as 
                                defined in section 5136 of the 
                                Revised Statutes of the United 
                                States, in conformity with 
                                section 15C of this title and 
                                the rules and regulations 
                                thereunder, or obligations of 
                                the North American Development 
                                Bank; or
                                  (IV) any standardized, credit 
                                enhanced debt security issued 
                                by a foreign government 
                                pursuant to the March 1989 plan 
                                of then Secretary of the 
                                Treasury Brady, used by such 
                                foreign government to retire 
                                outstanding commercial bank 
                                loans.
                          (ii) Investment, trustee, and 
                        fiduciary transactions.--The bank buys 
                        or sells securities for investment 
                        purposes--
                                  (I) for the bank; or
                                  (II) for accounts for which 
                                the bank acts as a trustee or 
                                fiduciary.
                          (iii) Asset-backed transactions.--The 
                        bank engages in the issuance or sale to 
                        qualified investors, through a grantor 
                        trust or other separate entity, of 
                        securities backed by or representing an 
                        interest in notes, drafts, acceptances, 
                        loans, leases, receivables, other 
                        obligations (other than securities of 
                        which the bank is not the issuer), or 
                        pools of any such obligations 
                        predominantly originated by--
                                  (I) the bank;
                                  (II) an affiliate of any such 
                                bank other than a broker or 
                                dealer; or
                                  (III) a syndicate of banks of 
                                which the bank is a member, if 
                                the obligations or pool of 
                                obligations consists of 
                                mortgage obligations or 
                                consumer-related receivables.
                          (iv) Identified banking products.--
                        The bank buys or sells identified 
                        banking products, as defined in section 
                        206 of the Gramm-Leach-Bliley Act.
          (6) The term ``bank'' means (A) a banking institution 
        organized under the laws of the United States or a 
        Federal savings association, as defined in section 2(5) 
        of the Home Owners' Loan Act, (B) a member bank of the 
        Federal Reserve System, (C) any other banking 
        institution or savings association, as defined in 
        section 2(4) of the Home Owners' Loan Act, whether 
        incorporated or not, doing business under the laws of 
        any State or of the United States, a substantial 
        portion of the business of which consists of receiving 
        deposits or exercising fiduciary powers similar to 
        those permitted to national banks under the authority 
        of the Comptroller of the Currency pursuant to the 
        first section of Public Law 87-722 (12 U.S.C. 92a), and 
        which is supervised and examined by State or Federal 
        authority having supervision over banks or savings 
        associations, and which is not operated for the purpose 
        of evading the provisions of this title, and (D) a 
        receiver, conservator, or other liquidating agent of 
        any institution or firm included in clauses (A), (B), 
        or (C) of this paragraph.
          (7) The term ``director'' means any director of a 
        corporation or any person performing similar functions 
        with respect to any organization, whether incorporated 
        or unincorporated.
          (8) The term ``issuer'' means any person who issues 
        or proposes to issue any security; except that with 
        respect to certificates of deposit for securities, 
        voting-trust certificates, or collateral-trust 
        certificates, or with respect to certificates of 
        interest or shares in an unincorporated investment 
        trust not having a board of directors or of the fixed, 
        restricted management, or unit type, the term 
        ``issuer'' means the person or persons performing the 
        acts and assuming the duties of depositor or manager 
        pursuant to the provisions of the trust or other 
        agreement or instrument under which such securities are 
        issued; and except that with respect to equipment-trust 
        certificates or like securities, the term ``issuer'' 
        means the person by whom the equipment or property is, 
        or is to be, used.
          (9) The term ``person'' means a natural person, 
        company, government, or political subdivision, agency, 
        or instrumentality of a government.
          (10) The term ``security'' means any note, stock, 
        treasury stock, security future, security-based 
        swap,bond, debenture, certificate of interest or 
        participation in any profit-sharing agreement or in any 
        oil, gas, or other mineral royalty or lease, any 
        collateral-trust certificate, preorganization 
        certificate or subscription, transferable share, 
        investment contract, voting-trust certificate, 
        certificate of deposit for a security, any put, call, 
        straddle, option, or privilege on any security, 
        certificate of deposit, or group or index of securities 
        (including any interest therein or based on the value 
        thereof), or any put, call, straddle, option, or 
        privilege entered into on a national securities 
        exchange relating to foreign currency, or in general, 
        any instrument commonly known as a ``security''; or any 
        certificate of interest or participation in, temporary 
        or interim certificate for, receipt for, or warrant or 
        right to subscribe to or purchase, any of the 
        foregoing; but shall not include currency or any note, 
        draft, bill of exchange, or banker's acceptance which 
        has a maturity at the time of issuance of not exceeding 
        nine months, exclusive of days of grace, or any renewal 
        thereof the maturity of which is likewise limited.
          (11) The term ``equity security'' means any stock or 
        similar security; or any security future on any such 
        security; or any security convertible, with or without 
        consideration, into such a security, or carrying any 
        warrant or right to subscribe to or purchase such a 
        security; or any such warrant or right; or any other 
        security which the Commission shall deem to be of 
        similar nature and consider necessary or appropriate, 
        by such rules and regulations as it may prescribe in 
        the public interest or for the protection of investors, 
        to treat as an equity security.
          (12)(A) The term ``exempted security'' or ``exempted 
        securities'' includes--
                  (i) government securities, as defined in 
                paragraph (42) of this subsection;
                  (ii) municipal securities, as defined in 
                paragraph (29) of this subsection;
                  (iii) any interest or participation in any 
                common trust fund or similar fund that is 
                excluded from the definition of the term 
                ``investment company'' under section 3(c)(3) of 
                the Investment Company Act of 1940;
                  (iv) any interest or participation in a 
                single trust fund, or a collective trust fund 
                maintained by a bank, or any security arising 
                out of a contract issued by an insurance 
                company, which interest, participation, or 
                security is issued in connection with a 
                qualified plan as defined in subparagraph (C) 
                of this paragraph;
                  (v) any security issued by or any interest or 
                participation in any pooled income fund, 
                collective trust fund, collective investment 
                fund, or similar fund that is excluded from the 
                definition of an investment company under 
                section 3(c)(10)(B) of the Investment Company 
                Act of 1940;
                  (vi) solely for purposes of sections 12, 13, 
                14, and 16 of this title, any security issued 
                by or any interest or participation in any 
                church plan, company, or account that is 
                excluded from the definition of an investment 
                company under section 3(c)(14) of the 
                Investment Company Act of 1940; and
                  (vii) such other securities (which may 
                include, among others, unregistered securities, 
                the market in which is predominantly 
                intrastate) as the Commission may, by such 
                rules and regulations as it deems consistent 
                with the public interest and the protection of 
                investors, either unconditionally or upon 
                specified terms and conditions or for stated 
                periods, exempt from the operation of any one 
                or more provisions of this title which by their 
                terms do not apply to an ``exempted security'' 
                or to ``exempted securities''.
          (B)(i) Notwithstanding subparagraph (A)(i) of this 
        paragraph, government securities shall not be deemed to 
        be ``exempted securities'' for the purposes of section 
        17A of this title.
          (ii) Notwithstanding subparagraph (A)(ii) of this 
        paragraph, municipal securities shall not be deemed to 
        be ``exempted securities'' for the purposes of sections 
        15 and 17A of this title.
          (C) For purposes of subparagraph (A)(iv) of this 
        paragraph, the term ``qualified plan'' means (i) a 
        stock bonus, pension, or profit-sharing plan which 
        meets the requirements for qualification under section 
        401 of the Internal Revenue Code of 1954, (ii) an 
        annuity plan which meets the requirements for the 
        deduction of the employer's contribution under section 
        404(a)(2) of such Code, (iii) a governmental plan as 
        defined in section 414(d) of such Code which has been 
        established by an employer for the exclusive benefit of 
        its employees or their beneficiaries for the purpose of 
        distributing to such employees or their beneficiaries 
        the corpus and income of the funds accumulated under 
        such plan, if under such plan it is impossible, prior 
        to the satisfaction of all liabilities with respect to 
        such employees and their beneficiaries, for any part of 
        the corpus or income to be used for, or diverted to, 
        purposes other than the exclusive benefit of such 
        employees or their beneficiaries, or (iv) a church 
        plan, company, or account that is excluded from the 
        definition of an investment company under section 
        3(c)(14) of the Investment Company Act of 1940, other 
        than any plan described in clause (i), (ii), or (iii) 
        of this subparagraph which (I) covers employees some or 
        all of whom are employees within the meaning of section 
        401(c) of such Code, or (II) is a plan funded by an 
        annuity contract described in section 403(b) of such 
        Code.
          (13) The terms ``buy'' and ``purchase'' each include 
        any contract to buy, purchase, or otherwise acquire. 
        For security futures products, such term includes any 
        contract, agreement, or transaction for future 
        delivery. For security-based swaps, such terms include 
        the execution, termination (prior to its scheduled 
        maturity date), assignment, exchange, or similar 
        transfer or conveyance of, or extinguishing of rights 
        or obligations under, a security-based swap, as the 
        context may require.
          (14) The terms ``sale'' and ``sell'' each include any 
        contract to sell or otherwise dispose of. For security 
        futures products, such term includes any contract, 
        agreement, or transaction for future delivery. For 
        security-based swaps, such terms include the execution, 
        termination (prior to its scheduled maturity date), 
        assignment, exchange, or similar transfer or conveyance 
        of, or extinguishing of rights or obligations under, a 
        security-based swap, as the context may require.
          (15) The term ``Commission'' means the Securities and 
        Exchange Commission established by section 4 of this 
        title.
          (16) The term ``State'' means any State of the United 
        States, the District of Columbia, Puerto Rico, the 
        Virgin Islands, or any other possession of the United 
        States.
          (17) The term ``interstate commerce'' means trade, 
        commerce, transportation, or communication among the 
        several States, or between any foreign country and any 
        State, or between any State and any place or ship 
        outside thereof. The term also includes intrastate use 
        of (A) any facility of a national securities exchange 
        or of a telephone or other interstate means of 
        communication, or (B) any other interstate 
        instrumentality.
          (18) The term ``person associated with a broker or 
        dealer'' or ``associated person of a broker or dealer'' 
        means any partner, officer, director, or branch manager 
        of such broker or dealer (or any person occupying a 
        similar status or performing similar functions), any 
        person directly or indirectly controlling, controlled 
        by, or under common control with such broker or dealer, 
        or any employee of such broker or dealer, except that 
        any person associated with a broker or dealer whose 
        functions are solely clerical or ministerial shall not 
        be included in the meaning of such term for purposes of 
        section 15(b) of this title (other than paragraph (6) 
        thereof).
          (19) The terms ``investment company,''``affiliated 
        person,''``insurance company,''``separate account,'' 
        and ``company'' have the same meanings as in the 
        Investment Company Act of 1940.
          (20) The terms ``investment adviser'' and 
        ``underwriter'' have the same meanings as in the 
        Investment Advisers Act of 1940.
          (21) The term ``persons associated with a member'' or 
        ``associated person of a member'' when used with 
        respect to a member of a national securities exchange 
        or registered securities association means any partner, 
        officer, director, or branch manager of such member (or 
        any person occupying a similar status or performing 
        similar functions), any person directly or indirectly 
        controlling, controlled by, or under common control 
        with such member, or any employee of such member.
          (22)(A) The term ``securities information processor'' 
        means any person engaged in the business of (i) 
        collecting, processing, or preparing for distribution 
        or publication, or assisting, participating in, or 
        coordinating the distribution or publication of, 
        information with respect to transactions in or 
        quotations for any security (other than an exempted 
        security) or (ii) distributing or publishing (whether 
        by means of a ticker tape, a communications network, a 
        terminal display device, or otherwise) on a current and 
        continuing basis, information with respect to such 
        transactions or quotations. The term ``securities 
        information processor'' does not include any bona fide 
        newspaper, news magazine, or business or financial 
        publication of general and regular circulation, any 
        self-regulatory organization, any bank, broker, dealer, 
        building and loan, savings and loan, or homestead 
        association, or cooperative bank, if such bank, broker, 
        dealer, association, or cooperative bank would be 
        deemed to be a securities information processor solely 
        by reason of functions performed by such institutions 
        as part of customary banking, brokerage, dealing, 
        association, or cooperative bank activities, or any 
        common carrier, as defined in section 3 of the 
        Communications Act of 1934, subject to the jurisdiction 
        of the Federal Communications Commission or a State 
        commission, as defined in section 3 of that Act, unless 
        the Commission determines that such carrier is engaged 
        in the business of collecting, processing, or preparing 
        for distribution or publication, information with 
        respect to transactions in or quotations for any 
        security.
          (B) The term ``exclusive processor'' means any 
        securities information processor or self-regulatory 
        organization which, directly or indirectly, engages on 
        an exclusive basis on behalf of any national securities 
        exchange or registered securities association, or any 
        national securities exchange or registered securities 
        association which engages on an exclusive basis on its 
        own behalf, in collecting, processing, or preparing for 
        distribution or publication any information with 
        respect to (i) transactions or quotations on or 
        effected or made by means of any facility of such 
        exchange or (ii) quotations distributed or published by 
        means of any electronic system operated or controlled 
        by such association.
          (23)(A) The term ``clearing agency'' means any person 
        who acts as an intermediary in making payments or 
        deliveries or both in connection with transactions in 
        securities or who provides facilities for comparison of 
        data respecting the terms of settlement of securities 
        transactions, to reduce the number of settlements of 
        securities transactions, or for the allocation of 
        securities settlement responsibilities. Such term also 
        means any person, such as a securities depository, who 
        (i) acts as a custodian of securities in connection 
        with a system for the central handling of securities 
        whereby all securities of a particular class or series 
        of any issuer deposited within the system are treated 
        as fungible and may be transferred, loaned, or pledged 
        by bookkeeping entry without physical delivery of 
        securities certificates, or (ii) otherwise permits or 
        facilitates the settlement of securities transactions 
        or the hypothecation or lending of securities without 
        physical delivery of securities certificates.
          (B) The term ``clearing agency'' does not include (i) 
        any Federal Reserve bank, Federal home loan bank, or 
        Federal land bank; (ii) any national securities 
        exchange or registered securities association solely by 
        reason of its providing facilities for comparison of 
        data respecting the terms of settlement of securities 
        transactions effected on such exchange or by means of 
        any electronic system operated or controlled by such 
        association; (iii) any bank, broker, dealer, building 
        and loan, savings and loan, or homestead association, 
        or cooperative bank if such bank, broker, dealer, 
        association, or cooperative bank would be deemed to be 
        a clearing agency solely by reason of functions 
        performed by such institution as part of customary 
        banking, brokerage, dealing, association, or 
        cooperative banking activities, or solely by reason of 
        acting on behalf of a clearing agency or a participant 
        therein in connection with the furnishing by the 
        clearing agency of services to its participants or the 
        use of services of the clearing agency by its 
        participants, unless the Commission, by rule, otherwise 
        provides as necessary or appropriate to assure the 
        prompt and accurate clearance and settlement of 
        securities transactions or to prevent evasion of this 
        title; (iv) any life insurance company, its registered 
        separate accounts, or a subsidiary of such insurance 
        company solely by reason of functions commonly 
        performed by such entities in connection with variable 
        annuity contracts or variable life policies issued by 
        such insurance company or its separate accounts; (v) 
        any registered open-end investment company or unit 
        investment trust solely by reason of functions commonly 
        performed by it in connection with shares in such 
        registered open-end investment company or unit 
        investment trust, or (vi) any person solely by reason 
        of its performing functions described in paragraph 
        25(E) of this subsection.
          (24) The term ``participant'' when used with respect 
        to a clearing agency means any person who uses a 
        clearing agency to clear or settle securities 
        transactions or to transfer, pledge, lend, or 
        hypothecate securities. Such term does not include a 
        person whose only use of a clearing agency is (A) 
        through another person who is a participant or (B) as a 
        pledgee of securities.
          (25) The term ``transfer agent'' means any person who 
        engages on behalf of an issuer of securities or on 
        behalf of itself as an issuer of securities in (A) 
        countersigning such securities upon issuance; (B) 
        monitoring the issuance of such securities with a view 
        to preventing unauthorized issuance, a function 
        commonly performed by a person called a registrar; (C) 
        registering the transfer of such securities; (D) 
        exchanging or converting such securities; or (E) 
        transferring record ownership of securities by 
        bookkeeping entry without physical issuance of 
        securities certificates. The term ``transfer agent'' 
        does not include any insurance company or separate 
        account which performs such functions solely with 
        respect to variable annuity contracts or variable life 
        policies which it issues or any registered clearing 
        agency which performs such functions solely with 
        respect to options contracts which it issues.
          (26) The term ``self-regulatory organization'' means 
        any national securities exchange, registered securities 
        association, or registered clearing agency, or (solely 
        for purposes of sections 19(b), 19(c), and 23(b) of 
        this title) the Municipal Securities Rulemaking Board 
        established by section 15B of this title.
          (27) The term ``rules of an exchange'', ``rules of an 
        association'', or ``rules of a clearing agency'' means 
        the constitution, articles of incorporation, bylaws, 
        and rules, or instruments corresponding to the 
        foregoing, of an exchange, association of brokers and 
        dealers, or clearing agency, respectively, and such of 
        the stated policies, practices, and interpretations of 
        such exchange, association, or clearing agency as the 
        Commission, by rule, may determine to be necessary or 
        appropriate in the public interest or for the 
        protection of investors to be deemed to be rules of 
        such exchange, association, or clearing agency.
          (28) The term ``rules of a self-regulatory 
        organization'' means the rules of an exchange which is 
        a national securities exchange, the rules of an 
        association of brokers and dealers which is a 
        registered securities association, the rules of a 
        clearing agency which is a registered clearing agency, 
        or the rules of the Municipal Securities Rulemaking 
        Board.
          (29) The term ``municipal securities'' means 
        securities which are direct obligations of, or 
        obligations guaranteed as to principal or interest by, 
        a State or any political subdivision thereof, or any 
        agency or instrumentality of a State or any political 
        subdivision thereof, or any municipal corporate 
        instrumentality of one or more States, or any security 
        which is an industrial development bond (as defined in 
        section 103(c)(2) of the Internal Revenue Code of 1954) 
        the interest on which is excludable from gross income 
        under section 103(a)(1) of such Code if, by reason of 
        the application of paragraph (4) or (6) of section 
        103(c) of such Code (determined as if paragraphs 
        (4)(A), (5), and (7) were not included in such section 
        103(c)), paragraph (1) of such section 103(c) does not 
        apply to such security.
          (30) The term ``municipal securities dealer'' means 
        any person (including a separately identifiable 
        department or division of a bank) engaged in the 
        business of buying and selling municipal securities for 
        his own account, through a broker or otherwise, but 
        does not include--
                  (A) any person insofar as he buys or sells 
                such securities for his own account, either 
                individually or in some fiduciary capacity, but 
                not as a part of a regular business; or
                  (B) a bank, unless the bank is engaged in the 
                business of buying and selling municipal 
                securities for its own account other than in a 
                fiduciary capacity, through a broker or 
                otherwise; Provided, however, That if the bank 
                is engaged in such business through a 
                separately identifiable department or division 
                (as defined by the Municipal Securities 
                Rulemaking Board in accordance with section 
                15B(b)(2)(H) of this title), the department or 
                division and not the bank itself shall be 
                deemed to be the municipal securities dealer.
          (31) The term ``municipal securities broker'' means a 
        broker engaged in the business of effecting 
        transactions in municipal securities for the account of 
        others.
          (32) The term ``person associated with a municipal 
        securities dealer'' when used with respect to a 
        municipal securities dealer which is a bank or a 
        division or department of a bank means any person 
        directly engaged in the management, direction, 
        supervision, or performance of any of the municipal 
        securities dealer's activities with respect to 
        municipal securities, and any person directly or 
        indirectly controlling such activities or controlled by 
        the municipal securities dealer in connection with such 
        activities.
          (33) The term ``municipal securities investment 
        portfolio'' means all municipal securities held for 
        investment and not for sale as part of a regular 
        business by a municipal securities dealer or by a 
        person, directly or indirectly, controlling, controlled 
        by, or under common control with a municipal securities 
        dealer.
          (34) The term ``appropriate regulatory agency'' 
        means--
                  (A) When used with respect to a municipal 
                securities dealer:
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank, a 
                        subsidiary or a department or division 
                        of any such bank, a Federal savings 
                        association (as defined in section 
                        3(b)(2) of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813(b)(2))), 
                        the deposits of which are insured by 
                        the Federal Deposit Insurance 
                        Corporation, or a subsidiary or 
                        department or division of any such 
                        Federal savings association;
                          (ii) the Board of Governors of the 
                        Federal Reserve System, in the case of 
                        a State member bank of the Federal 
                        Reserve System, a subsidiary or a 
                        department or division thereof, a bank 
                        holding company, a subsidiary of a bank 
                        holding company which is a bank other 
                        than a bank specified in clause (i), 
                        (iii), or (iv) of this subparagraph, a 
                        subsidiary or a department or division 
                        of such subsidiary, or a savings and 
                        loan holding company;
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of a bank 
                        insured by the Federal Deposit 
                        Insurance Corporation (other than a 
                        member of the Federal Reserve System), 
                        a subsidiary or department or division 
                        of any such bank, a State savings 
                        association (as defined in section 
                        3(b)(3) of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813(b)(3))), 
                        the deposits of which are insured by 
                        the Federal Deposit Insurance 
                        Corporation, or a subsidiary or a 
                        department or division of any such 
                        State savings association; and
                          (iv) the Commission in the case of 
                        all other municipal securities dealers.
                  (B) When used with respect to a clearing 
                agency or transfer agent:
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank, a 
                        subsidiary of any such bank, a Federal 
                        savings association (as defined in 
                        section 3(b)(2) of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813(b)(2))), 
                        the deposits of which are insured by 
                        the Federal Deposit Insurance 
                        Corporation, or a subsidiary of any 
                        such Federal savings association;
                          (ii) the Board of Governors of the 
                        Federal Reserve System, in the case of 
                        a State member bank of the Federal 
                        Reserve System, a subsidiary thereof, a 
                        bank holding company, a subsidiary of a 
                        bank holding company that is a bank 
                        other than a bank specified in clause 
                        (i) or (iii) of this subparagraph, or a 
                        savings and loan holding company;
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of a bank 
                        insured by the Federal Deposit 
                        Insurance Corporation (other than a 
                        member of the Federal Reserve System), 
                        a subsidiary of any such bank, a State 
                        savings association (as defined in 
                        section 3(b)(3) of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813(b)(3))), 
                        the deposits of which are insured by 
                        the Federal Deposit Insurance 
                        Corporation, or a subsidiary of any 
                        such State savings association; and
                          (iv) the Commission in the case of 
                        all other clearing agencies and 
                        transfer agents.
                  (C) When used with respect to a participant 
                or applicant to become a participant in a 
                clearing agency or a person requesting or 
                having access to services offered by a clearing 
                agency:
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank or a 
                        Federal savings association (as defined 
                        in section 3(b)(2) of the Federal 
                        Deposit Insurance Act (12 U.S.C. 
                        1813(b)(2))), the deposits of which are 
                        insured by the Federal Deposit 
                        Insurance Corporation when the 
                        appropriate regulatory agency for such 
                        clearing agency is not the Commission;
                          (ii) the Board of Governors of the 
                        Federal Reserve System in the case of a 
                        State member bank of the Federal 
                        Reserve System, a bank holding company, 
                        or a subsidiary of a bank holding 
                        company, a subsidiary of a bank holding 
                        company that is a bank other than a 
                        bank specified in clause (i) or (iii) 
                        of this subparagraph, or a savings and 
                        loan holding company when the 
                        appropriate regulatory agency for such 
                        clearing agency is not the Commission;
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of a bank 
                        insured by the Federal Deposit 
                        Insurance Corporation (other than a 
                        member of the Federal Reserve System) 
                        or a State savings association (as 
                        defined in section 3(b)(3) of the 
                        Federal Deposit Insurance Act (12 
                        U.S.C. 1813(b)(3))), the deposits of 
                        which are insured by the Federal 
                        Deposit Insurance Corporation; and when 
                        the appropriate regulatory agency for 
                        such clearing agency is not the 
                        Commission;
                          (iv) the Commission in all other 
                        cases.
                  (D) When used with respect to an 
                institutional investment manager which is a 
                bank the deposits of which are insured in 
                accordance with the Federal Deposit Insurance 
                Act:
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank or a 
                        Federal savings association (as defined 
                        in section 3(b)(2) of the Federal 
                        Deposit Insurance Act (12 U.S.C. 
                        1813(b)(2))), the deposits of which are 
                        insured by the Federal Deposit 
                        Insurance Corporation;
                          (ii) the Board of Governors of the 
                        Federal Reserve System, in the case of 
                        any other member bank of the Federal 
                        Reserve System; and
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of any other 
                        insured bank or a State savings 
                        association (as defined in section 
                        3(b)(3) of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813(b)(3))), 
                        the deposits of which are insured by 
                        the Federal Deposit Insurance 
                        Corporation.
                  (E) When used with respect to a national 
                securities exchange or registered securities 
                association, member thereof, person associated 
                with a member thereof, applicant to become a 
                member thereof or to become associated with a 
                member thereof, or person requesting or having 
                access to services offered by such exchange or 
                association or member thereof, or the Municipal 
                Securities Rulemaking Board, the Commission.
                  (F) When used with respect to a person 
                exercising investment discretion with respect 
                to an account:
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank or a 
                        Federal savings association (as defined 
                        in section 3(b)(2) of the Federal 
                        Deposit Insurance Act (12 U.S.C. 
                        1813(b)(2))), the deposits of which are 
                        insured by the Federal Deposit 
                        Insurance Corporation;
                          (ii) the Board of Governors of the 
                        Federal Reserve System in the case of 
                        any other member bank of the Federal 
                        Reserve System;
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of any other 
                        bank the deposits of which are insured 
                        in accordance with the Federal Deposit 
                        Insurance Act or a State savings 
                        association (as defined in section 
                        3(b)(3) of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813(b)(3))), 
                        the deposits of which are insured by 
                        the Federal Deposit Insurance 
                        Corporation; and
                          (iv) the Commission in the case of 
                        all other such persons.
                  (G) When used with respect to a government 
                securities broker or government securities 
                dealer, or person associated with a government 
                securities broker or government securities 
                dealer:
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank, a 
                        Federal savings association (as defined 
                        in section 3(b)(2) of the Federal 
                        Deposit Insurance Act), the deposits of 
                        which are insured by the Federal 
                        Deposit Insurance Corporation, or a 
                        Federal branch or Federal agency of a 
                        foreign bank (as such terms are used in 
                        the International Banking Act of 1978);
                          (ii) the Board of Governors of the 
                        Federal Reserve System, in the case of 
                        a State member bank of the Federal 
                        Reserve System, a foreign bank, an 
                        uninsured State branch or State agency 
                        of a foreign bank, a commercial lending 
                        company owned or controlled by a 
                        foreign bank (as such terms are used in 
                        the International Banking Act of 1978), 
                        or a corporation organized or having an 
                        agreement with the Board of Governors 
                        of the Federal Reserve System pursuant 
                        to section 25 or section 25A of the 
                        Federal Reserve Act;
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of a bank 
                        insured by the Federal Deposit 
                        Insurance Corporation (other than a 
                        member of the Federal Reserve System or 
                        a Federal savings bank), a State 
                        savings association (as defined in 
                        section 3(b)(3) of the Federal Deposit 
                        Insurance Act), the deposits of which 
                        are insured by the Federal Deposit 
                        Insurance Corporation, or an insured 
                        State branch of a foreign bank (as such 
                        terms are used in the International 
                        Banking Act of 1978); and
                          (iv) the Commission, in the case of 
                        all other government securities brokers 
                        and government securities dealers.
                  (H) When used with respect to an institution 
                described in subparagraph (D), (F), or (G) of 
                section 2(c)(2), or held under section 4(f), of 
                the Bank Holding Company Act of 1956--
                          (i) the Comptroller of the Currency, 
                        in the case of a national bank;
                          (ii) the Board of Governors of the 
                        Federal Reserve System, in the case of 
                        a State member bank of the Federal 
                        Reserve System or any corporation 
                        chartered under section 25A of the 
                        Federal Reserve Act;
                          (iii) the Federal Deposit Insurance 
                        Corporation, in the case of any other 
                        bank the deposits of which are insured 
                        in accordance with the Federal Deposit 
                        Insurance Act; or
                          (iv) the Commission in the case of 
                        all other such institutions.
        As used in this paragraph, the terms ``bank holding 
        company'' and ``subsidiary of a bank holding company'' 
        have the meanings given them in section 2 of the Bank 
        Holding Company Act of 1956. As used in this paragraph, 
        the term ``savings and loan holding company'' has the 
        same meaning as in section 10(a) of the Home Owners' 
        Loan Act (12 U.S.C. 1467a(a)).
          (35) A person exercises ``investment discretion'' 
        with respect to an account if, directly or indirectly, 
        such person (A) is authorized to determine what 
        securities or other property shall be purchased or sold 
        by or for the account, (B) makes decisions as to what 
        securities or other property shall be purchased or sold 
        by or for the account even though some other person may 
        have responsibility for such investment decisions, or 
        (C) otherwise exercises such influence with respect to 
        the purchase and sale of securities or other property 
        by or for the account as the Commission, by rule, 
        determines, in the public interest or for the 
        protection of investors, should be subject to the 
        operation of the provisions of this title and rules and 
        regulations thereunder.
          (36) A class of persons or markets is subject to 
        ``equal regulation'' if no member of the class has a 
        competitive advantage over any other member thereof 
        resulting from a disparity in their regulation under 
        this title which the Commission determines is unfair 
        and not necessary or appropriate in furtherance of the 
        purposes of this title.
          (37) The term ``records'' means accounts, 
        correspondence, memorandums, tapes, discs, papers, 
        books, and other documents or transcribed information 
        of any type, whether expressed in ordinary or machine 
        language.
          (38) The term ``market maker'' means any specialist 
        permitted to act as a dealer, any dealer acting in the 
        capacity of block positioner, and any dealer who, with 
        respect to a security, holds himself out (by entering 
        quotations in an inter-dealer communications system or 
        otherwise) as being willing to buy and sell such 
        security for his own account on a regular or continuous 
        basis.
          (39) A person is subject to a ``statutory 
        disqualification'' with respect to membership or 
        participation in, or association with a member of, a 
        self-regulatory organization, if such person--
                  (A) has been and is expelled or suspended 
                from membership or participation in, or barred 
                or suspended from being associated with a 
                member of, any self-regulatory organization, 
                foreign equivalent of a self-regulatory 
                organization, foreign or international 
                securities exchange, contract market designated 
                pursuant to section 5 of the Commodity Exchange 
                Act (7 U.S.C. 7), or any substantially 
                equivalent foreign statute or regulation, or 
                futures association registered under section 17 
                of such Act (7 U.S.C. 21), or any substantially 
                equivalent foreign statute or regulation, or 
                has been and is denied trading privileges on 
                any such contract market or foreign equivalent;
          (B) is subject to--
                  (i) an order of the Commission, other 
                appropriate regulatory agency, or foreign 
                financial regulatory authority--
                          (I) denying, suspending for a period 
                        not exceeding 12 months, or revoking 
                        his registration as a broker, dealer, 
                        municipal securities dealer, government 
                        securities broker, government 
                        securities dealer, security-based swap 
                        dealer, or major security-based swap 
                        participant or limiting his activities 
                        as a foreign person performing a 
                        function substantially equivalent to 
                        any of the above; or
                          (II) barring or suspending for a 
                        period not exceeding 12 months his 
                        being associated with a broker, dealer, 
                        municipal securities dealer, government 
                        securities broker, government 
                        securities dealer, security-based swap 
                        dealer, major security-based swap 
                        participant, or foreign person 
                        performing a function substantially 
                        equivalent to any of the above;
                  (ii) an order of the Commodity Futures 
                Trading Commission denying, suspending, or 
                revoking his registration under the Commodity 
                Exchange Act (7 U.S.C. 1 et seq.); or
                  (iii) an order by a foreign financial 
                regulatory authority denying, suspending, or 
                revoking the person's authority to engage in 
                transactions in contracts of sale of a 
                commodity for future delivery or other 
                instruments traded on or subject to the rules 
                of a contract market, board of trade, or 
                foreign equivalent thereof;
                  (C) by his conduct while associated with a 
                broker, dealer, municipal securities dealer, 
                government securities broker, government 
                securities dealer, security-based swap dealer, 
                or major security-based swap participant, or 
                while associated with an entity or person 
                required to be registered under the Commodity 
                Exchange Act, has been found to be a cause of 
                any effective suspension, expulsion, or order 
                of the character described in subparagraph (A) 
                or (B) of this paragraph, and in entering such 
                a suspension, expulsion, or order, the 
                Commission, an appropriate regulatory agency, 
                or any such self-regulatory organization shall 
                have jurisdiction to find whether or not any 
                person was a cause thereof;
                  (D) by his conduct while associated with any 
                broker, dealer, municipal securities dealer, 
                government securities broker, government 
                securities dealer, security-based swap dealer, 
                major security-based swap participant, or any 
                other entity engaged in transactions in 
                securities, or while associated with an entity 
                engaged in transactions in contracts of sale of 
                a commodity for future delivery or other 
                instruments traded on or subject to the rules 
                of a contract market, board of trade, or 
                foreign equivalent thereof, has been found to 
                be a cause of any effective suspension, 
                expulsion, or order by a foreign or 
                international securities exchange or foreign 
                financial regulatory authority empowered by a 
                foreign government to administer or enforce its 
                laws relating to financial transactions as 
                described in subparagraph (A) or (B) of this 
                paragraph;
                  (E) has associated with him any person who is 
                known, or in the exercise of reasonable care 
                should be known, to him to be a person 
                described by subparagraph (A), (B), (C), or (D) 
                of this paragraph; or
                  (F) has committed or omitted any act, or is 
                subject to an order or finding, enumerated in 
                subparagraph (D), (E), (H), or (G) of paragraph 
                (4) of section 15(b) of this title, has been 
                convicted of any offense specified in 
                subparagraph (B) of such paragraph (4) or any 
                other felony within ten years of the date of 
                the filing of an application for membership or 
                participation in, or to become associated with 
                a member of, such self-regulatory organization, 
                is enjoined from any action, conduct, or 
                practice specified in subparagraph (C) of such 
                paragraph (4), has willfully made or caused to 
                be made in any application for membership or 
                participation in, or to become associated with 
                a member of, a self-regulatory organization, 
                report required to be filed with a self-
                regulatory organization, or proceeding before a 
                self-regulatory organization, any statement 
                which was at the time, and in the light of the 
                circumstances under which it was made, false or 
                misleading with respect to any material fact, 
                or has omitted to state in any such 
                application, report, or proceeding any material 
                fact which is required to be stated therein.
          (40) The term ``financial responsibility rules'' 
        means the rules and regulations of the Commission or 
        the rules and regulations prescribed by any self-
        regulatory organization relating to financial 
        responsibility and related practices which are 
        designated by the Commission, by rule or regulation, to 
        be financial responsibility rules.
          (41) The term ``mortgage related security'' means a 
        security that meets standards of credit-worthiness as 
        established by the Commission, and either:
                  (A) represents ownership of one or more 
                promissory notes or certificates of interest or 
                participation in such notes (including any 
                rights designed to assure servicing of, or the 
                receipt or timeliness of receipt by the holders 
                of such notes, certificates, or participations 
                of amounts payable under, such notes, 
                certificates, or participations), which notes:
                          (i) are directly secured by a first 
                        lien on a single parcel of real estate, 
                        including stock allocated to a dwelling 
                        unit in a residential cooperative 
                        housing corporation, upon which is 
                        located a dwelling or mixed residential 
                        and commercial structure, on a 
                        residential manufactured home as 
                        defined in section 603(6) of the 
                        National Manufactured Housing 
                        Construction and Safety Standards Act 
                        of 1974, whether such manufactured home 
                        is considered real or personal property 
                        under the laws of the State in which it 
                        is to be located, or on one or more 
                        parcels of real estate upon which is 
                        located one or more commercial 
                        structures; and
                          (ii) were originated by a savings and 
                        loan association, savings bank, 
                        commercial bank, credit union, 
                        insurance company, or similar 
                        institution which is supervised and 
                        examined by a Federal or State 
                        authority, or by a mortgage approved by 
                        the Secretary of Housing and Urban 
                        Development pursuant to sections 203 
                        and 211 of the National Housing Act, 
                        or, where such notes involve a lien on 
                        the manufactured home, by any such 
                        institution or by any financial 
                        institution approved for insurance by 
                        the Secretary of Housing and Urban 
                        Development pursuant to section 2 of 
                        the National Housing Act; or
                  (B) is secured by one or more promissory 
                notes or certificates of interest or 
                participations in such notes (with or without 
                recourse to the issuer thereof) and, by its 
                terms, provides for payments of principal in 
                relation to payments, or reasonable projections 
                of payments, on notes meeting the requirements 
                of subparagraphs (A) (i) and (ii) or 
                certificates of interest or participations in 
                promissory notes meeting such requirements.
        For the purpose of this paragraph, the term 
        ``promissory note'', when used in connection with a 
        manufactured home, shall also include a loan, advance, 
        or credit sale as evidence by a retail installment 
        sales contract or other instrument.
          (42) The term ``government securities'' means--
                  (A) securities which are direct obligations 
                of, or obligations guaranteed as to principal 
                or interest by, the United States;
                  (B) securities which are issued or guaranteed 
                by the Tennessee Valley Authority or by 
                corporations in which the United States has a 
                direct or indirect interest and which are 
                designated by the Secretary of the Treasury for 
                exemption as necessary or appropriate in the 
                public interest or for the protection of 
                investors;
                  (C) securities issued or guaranteed as to 
                principal or interest by any corporation the 
                securities of which are designated, by statute 
                specifically naming such corporation, to 
                constitute exempt securities within the meaning 
                of the laws administered by the Commission;
                  (D) for purposes of sections 15C and 17A, any 
                put, call, straddle, option, or privilege on a 
                security described in subparagraph (A), (B), or 
                (C) other than a put, call, straddle, option, 
                or privilege--
                          (i) that is traded on one or more 
                        national securities exchanges; or
                          (ii) for which quotations are 
                        disseminated through an automated 
                        quotation system operated by a 
                        registered securities association; or
                  (E) for purposes of sections 15, 15C, and 17A 
                as applied to a bank, a qualified Canadian 
                government obligation as defined in section 
                5136 of the Revised Statutes of the United 
                States.
          (43) The term ``government securities broker'' means 
        any person regularly engaged in the business of 
        effecting transactions in government securities for the 
        account of others, but does not include--
                  (A) any corporation the securities of which 
                are government securities under subparagraph 
                (B) or (C) of paragraph (42) of this 
                subsection; or
                  (B) any person registered with the Commodity 
                Futures Trading Commission, any contract market 
                designated by the Commodity Futures Trading 
                Commission, such contract market's affiliated 
                clearing organization, or any floor trader on 
                such contract market, solely because such 
                person effects transactions in government 
                securities that the Commission, after 
                consultation with the Commodity Futures Trading 
                Commission, has determined by rule or order to 
                be incidental to such person's futures-related 
                business.
          (44) The term ``government securities dealer'' means 
        any person engaged in the business of buying and 
        selling government securities for his own account, 
        through a broker or otherwise, but does not include--
                  (A) any person insofar as he buys or sells 
                such securities for his own account, either 
                individually or in some fiduciary capacity, but 
                not as a part of a regular business;
                  (B) any corporation the securities of which 
                are government securities under subparagraph 
                (B) or (C) of paragraph (42) of this 
                subsection;
                  (C) any bank, unless the bank is engaged in 
                the business of buying and selling government 
                securities for its own account other than in a 
                fiduciary capacity, through a broker or 
                otherwise; or
                  (D) any person registered with the Commodity 
                Futures Trading Commission, any contract market 
                designated by the Commodity Futures Trading 
                Commission, such contract market's affiliated 
                clearing organization, or any floor trader on 
                such contract market, solely because such 
                person effects transactions in government 
                securities that the Commission, after 
                consultation with the Commodity Futures Trading 
                Commission, has determined by rule or order to 
                be incidental to such person's futures-related 
                business.
          (45) The term ``person associated with a government 
        securities broker or government securities dealer'' 
        means any partner, officer, director, or branch manager 
        of such government securities broker or government 
        securities dealer (or any person occupying a similar 
        status or performing similar functions), and any other 
        employee of such government securities broker or 
        government securities dealer who is engaged in the 
        management, direction, supervision, or performance of 
        any activities relating to government securities, and 
        any person directly or indirectly controlling, 
        controlled by, or under common control with such 
        government securities broker or government securities 
        dealer.
          (46) The term ``financial institution'' means--
                  (A) a bank (as defined in paragraph (6) of 
                this subsection);
                  (B) a foreign bank (as such term is used in 
                the International Banking Act of 1978); and
                  (C) a savings association (as defined in 
                section 3(b) of the Federal Deposit Insurance 
                Act) the deposits of which are insured by the 
                Federal Deposit Insurance Corporation.
          (47) The term ``securities laws'' means the 
        Securities Act of 1933 (15 U.S.C. 78a et seq.), the 
        Securities Exchange Act of 1934 (15 U.S.C. 78a et 
        seq.), the Sarbanes-Oxley Act of 2002, the Trust 
        Indenture Act of 1939 (15 U.S.C. 77aaa et seq.), the 
        Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
        seq.), the Investment Advisers Act of 1940 (15 U.S.C. 
        80b et seq.), and the Securities Investor Protection 
        Act of 1970 (15 U.S.C. 78aaa et seq.).
          (48) The term ``registered broker or dealer'' means a 
        broker or dealer registered or required to register 
        pursuant to section 15 or 15B of this title, except 
        that in paragraph (3) of this subsection and sections 6 
        and 15A the term means such a broker or dealer and a 
        government securities broker or government securities 
        dealer registered or required to register pursuant to 
        section 15C(a)(1)(A) of this title.
          (49) The terms ``person associated with a transfer 
        agent'' and ``associated person of a transfer agent'' 
        mean any person (except an employee whose functions are 
        solely clerical or ministerial) directly engaged in the 
        management, direction, supervision, or performance of 
        any of the transfer agent's activities with respect to 
        transfer agent functions, and any person directly or 
        indirectly controlling such activities or controlled by 
        the transfer agent in connection with such activities.
          (50) The term ``foreign securities authority'' means 
        any foreign government, or any governmental body or 
        regulatory organization empowered by a foreign 
        government to administer or enforce its laws as they 
        relate to securities matters.
          (51)(A) The term ``penny stock'' means any equity 
        security other than a security that is--
                  (i) registered or approved for registration 
                and traded on a national securities exchange 
                that meets such criteria as the Commission 
                shall prescribe by rule or regulation for 
                purposes of this paragraph;
                  (ii) authorized for quotation on an automated 
                quotation system sponsored by a registered 
                securities association, if such system (I) was 
                established and in operation before January 1, 
                1990, and (II) meets such criteria as the 
                Commission shall prescribe by rule or 
                regulation for purposes of this paragraph;
                  (iii) issued by an investment company 
                registered under the Investment Company Act of 
                1940;
                  (iv) excluded, on the basis of exceeding a 
                minimum price, net tangible assets of the 
                issuer, or other relevant criteria, from the 
                definition of such term by rule or regulation 
                which the Commission shall prescribe for 
                purposes of this paragraph; or
                  (v) exempted, in whole or in part, 
                conditionally or unconditionally, from the 
                definition of such term by rule, regulation, or 
                order prescribed by the Commission.
          (B) The Commission may, by rule, regulation, or 
        order, designate any equity security or class of equity 
        securities described in clause (i) or (ii) of 
        subparagraph (A) as within the meaning of the term 
        ``penny stock'' if such security or class of securities 
        is traded other than on a national securities exchange 
        or through an automated quotation system described in 
        clause (ii) of subparagraph (A).
          (C) In exercising its authority under this paragraph 
        to prescribe rules, regulations, and orders, the 
        Commission shall determine that such rule, regulation, 
        or order is consistent with the public interest and the 
        protection of investors.
          (52) The term ``foreign financial regulatory 
        authority'' means any (A) foreign securities authority, 
        (B) other governmental body or foreign equivalent of a 
        self-regulatory organization empowered by a foreign 
        government to administer or enforce its laws relating 
        to the regulation of fiduciaries, trusts, commercial 
        lending, insurance, trading in contracts of sale of a 
        commodity for future delivery, or other instruments 
        traded on or subject to the rules of a contract market, 
        board of trade, or foreign equivalent, or other 
        financial activities, or (C) membership organization a 
        function of which is to regulate participation of its 
        members in activities listed above.
          (53)(A) The term ``small business related security'' 
        means a security that meets standards of credit-
        worthiness as established by the Commission, and 
        either--
                  (i) represents an interest in 1 or more 
                promissory notes or leases of personal property 
                evidencing the obligation of a small business 
                concern and originated by an insured depository 
                institution, insured credit union, insurance 
                company, or similar institution which is 
                supervised and examined by a Federal or State 
                authority, or a finance company or leasing 
                company; or
                  (ii) is secured by an interest in 1 or more 
                promissory notes or leases of personal property 
                (with or without recourse to the issuer or 
                lessee) and provides for payments of principal 
                in relation to payments, or reasonable 
                projections of payments, on notes or leases 
                described in clause (i).
          (B) For purposes of this paragraph--
                  (i) an ``interest in a promissory note or a 
                lease of personal property'' includes ownership 
                rights, certificates of interest or 
                participation in such notes or leases, and 
                rights designed to assure servicing of such 
                notes or leases, or the receipt or timely 
                receipt of amounts payable under such notes or 
                leases;
                  (ii) the term ``small business concern'' 
                means a business that meets the criteria for a 
                small business concern established by the Small 
                Business Administration under section 3(a) of 
                the Small Business Act;
                  (iii) the term ``insured depository 
                institution'' has the same meaning as in 
                section 3 of the Federal Deposit Insurance Act; 
                and
                  (iv) the term ``insured credit union'' has 
                the same meaning as in section 101 of the 
                Federal Credit Union Act.
          (54) Qualified investor.--
                  (A) Definition.--Except as provided in 
                subparagraph (B), for purposes of this title, 
                the term ``qualified investor'' means--
                          (i) any investment company registered 
                        with the Commission under section 8 of 
                        the Investment Company Act of 1940;
                          (ii) any issuer eligible for an 
                        exclusion from the definition of 
                        investment company pursuant to section 
                        3(c)(7) of the Investment Company Act 
                        of 1940;
                          (iii) any bank (as defined in 
                        paragraph (6) of this subsection), 
                        savings association (as defined in 
                        section 3(b) of the Federal Deposit 
                        Insurance Act), broker, dealer, 
                        insurance company (as defined in 
                        section 2(a)(13) of the Securities Act 
                        of 1933), or business development 
                        company (as defined in section 2(a)(48) 
                        of the Investment Company Act of 1940);
                          (iv) any small business investment 
                        company licensed by the United States 
                        Small Business Administration under 
                        section 301 (c) or (d) of the Small 
                        Business Investment Act of 1958;
                          (v) any State sponsored employee 
                        benefit plan, or any other employee 
                        benefit plan, within the meaning of the 
                        Employee Retirement Income Security Act 
                        of 1974, other than an individual 
                        retirement account, if the investment 
                        decisions are made by a plan fiduciary, 
                        as defined in section 3(21) of that 
                        Act, which is either a bank, savings 
                        and loan association, insurance 
                        company, or registered investment 
                        adviser;
                          (vi) any trust whose purchases of 
                        securities are directed by a person 
                        described in clauses (i) through (v) of 
                        this subparagraph;
                          (vii) any market intermediary exempt 
                        under section 3(c)(2) of the Investment 
                        Company Act of 1940;
                          (viii) any associated person of a 
                        broker or dealer other than a natural 
                        person;
                          (ix) any foreign bank (as defined in 
                        section 1(b)(7) of the International 
                        Banking Act of 1978);
                          (x) the government of any foreign 
                        country;
                          (xi) any corporation, company, or 
                        partnership that owns and invests on a 
                        discretionary basis, not less than 
                        $25,000,000 in investments;
                          (xii) any natural person who owns and 
                        invests on a discretionary basis, not 
                        less than $25,000,000 in investments;
                          (xiii) any government or political 
                        subdivision, agency, or instrumentality 
                        of a government who owns and invests on 
                        a discretionary basis not less than 
                        $50,000,000 in investments; or
                          (xiv) any multinational or 
                        supranational entity or any agency or 
                        instrumentality thereof.
                  (B) Altered thresholds for asset-backed 
                securities and loan participations.--For 
                purposes of section 3(a)(5)(C)(iii) of this 
                title and section 206(a)(5) of the Gramm-Leach-
                Bliley Act, the term ``qualified investor'' has 
                the meaning given such term by subparagraph (A) 
                of this paragraph except that clauses (xi) and 
                (xii) shall be applied by substituting 
                ``$10,000,000'' for ``$25,000,000''.
                  (C) Additional authority.--The Commission 
                may, by rule or order, define a ``qualified 
                investor'' as any other person, taking into 
                consideration such factors as the financial 
                sophistication of the person, net worth, and 
                knowledge and experience in financial matters.
          (55)(A) The term ``security future'' means a contract 
        of sale for future delivery of a single security or of 
        a narrow-based security index, including any interest 
        therein or based on the value thereof, except an 
        exempted security under section 3(a)(12) of this title 
        as in effect on the date of the enactment of the 
        Futures Trading Act of 1982 (other than any municipal 
        security as defined in section 3(a)(29) as in effect on 
        the date of the enactment of the Futures Trading Act of 
        1982). The term ``security future'' does not include 
        any agreement, contract, or transaction excluded from 
        the Commodity Exchange Act under section 2(c), 2(d), 
        2(f), or 2(g) of the Commodity Exchange Act (as in 
        effect on the date of the enactment of the Commodity 
        Futures Modernization Act of 2000) or title IV of the 
        Commodity Futures Modernization Act of 2000.
          (B) The term ``narrow-based security index'' means an 
        index--
                  (i) that has 9 or fewer component securities;
                  (ii) in which a component security comprises 
                more than 30 percent of the index's weighting;
                  (iii) in which the five highest weighted 
                component securities in the aggregate comprise 
                more than 60 percent of the index's weighting; 
                or
                  (iv) in which the lowest weighted component 
                securities comprising, in the aggregate, 25 
                percent of the index's weighting have an 
                aggregate dollar value of average daily trading 
                volume of less than $50,000,000 (or in the case 
                of an index with 15 or more component 
                securities, $30,000,000), except that if there 
                are two or more securities with equal weighting 
                that could be included in the calculation of 
                the lowest weighted component securities 
                comprising, in the aggregate, 25 percent of the 
                index's weighting, such securities shall be 
                ranked from lowest to highest dollar value of 
                average daily trading volume and shall be 
                included in the calculation based on their 
                ranking starting with the lowest ranked 
                security.
          (C) Notwithstanding subparagraph (B), an index is not 
        a narrow-based security index if--
                  (i)(I) it has at least nine component 
                securities;
                  (II) no component security comprises more 
                than 30 percent of the index's weighting; and
                  (III) each component security is--
                          (aa) registered pursuant to section 
                        12 of the Securities Exchange Act of 
                        1934;
                          (bb) one of 750 securities with the 
                        largest market capitalization; and
                          (cc) one of 675 securities with the 
                        largest dollar value of average daily 
                        trading volume;
                  (ii) a board of trade was designated as a 
                contract market by the Commodity Futures 
                Trading Commission with respect to a contract 
                of sale for future delivery on the index, 
                before the date of the enactment of the 
                Commodity Futures Modernization Act of 2000;
                  (iii)(I) a contract of sale for future 
                delivery on the index traded on a designated 
                contract market or registered derivatives 
                transaction execution facility for at least 30 
                days as a contract of sale for future delivery 
                on an index that was not a narrow-based 
                security index; and
                  (II) it has been a narrow-based security 
                index for no more than 45 business days over 3 
                consecutive calendar months;
                  (iv) a contract of sale for future delivery 
                on the index is traded on or subject to the 
                rules of a foreign board of trade and meets 
                such requirements as are jointly established by 
                rule or regulation by the Commission and the 
                Commodity Futures Trading Commission;
                  (v) no more than 18 months have passed since 
                the date of the enactment of the Commodity 
                Futures Modernization Act of 2000 and--
                          (I) it is traded on or subject to the 
                        rules of a foreign board of trade;
                          (II) the offer and sale in the United 
                        States of a contract of sale for future 
                        delivery on the index was authorized 
                        before the date of the enactment of the 
                        Commodity Futures Modernization Act of 
                        2000; and
                          (III) the conditions of such 
                        authorization continue to be met; or
                  (vi) a contract of sale for future delivery 
                on the index is traded on or subject to the 
                rules of a board of trade and meets such 
                requirements as are jointly established by 
                rule, regulation, or order by the Commission 
                and the Commodity Futures Trading Commission.
          (D) Within 1 year after the enactment of the 
        Commodity Futures Modernization Act of 2000, the 
        Commission and the Commodity Futures Trading Commission 
        jointly shall adopt rules or regulations that set forth 
        the requirements under clause (iv) of subparagraph (C).
          (E) An index that is a narrow-based security index 
        solely because it was a narrow-based security index for 
        more than 45 business days over 3 consecutive calendar 
        months pursuant to clause (iii) of subparagraph (C) 
        shall not be a narrow-based security index for the 3 
        following calendar months.
          (F) For purposes of subparagraphs (B) and (C) of this 
        paragraph--
                  (i) the dollar value of average daily trading 
                volume and the market capitalization shall be 
                calculated as of the preceding 6 full calendar 
                months; and
                  (ii) the Commission and the Commodity Futures 
                Trading Commission shall, by rule or 
                regulation, jointly specify the method to be 
                used to determine market capitalization and 
                dollar value of average daily trading volume.
          (56) The term ``security futures product'' means a 
        security future or any put, call, straddle, option, or 
        privilege on any security future.
          (57)(A) The term ``margin'', when used with respect 
        to a security futures product, means the amount, type, 
        and form of collateral required to secure any extension 
        or maintenance of credit, or the amount, type, and form 
        of collateral required as a performance bond related to 
        the purchase, sale, or carrying of a security futures 
        product.
          (B) The terms ``margin level'' and ``level of 
        margin'', when used with respect to a security futures 
        product, mean the amount of margin required to secure 
        any extension or maintenance of credit, or the amount 
        of margin required as a performance bond related to the 
        purchase, sale, or carrying of a security futures 
        product.
          (C) The terms ``higher margin level'' and ``higher 
        level of margin'', when used with respect to a security 
        futures product, mean a margin level established by a 
        national securities exchange registered pursuant to 
        section 6(g) that is higher than the minimum amount 
        established and in effect pursuant to section 
        7(c)(2)(B).
          (58) Audit committee.--The term ``audit committee'' 
        means--
                  (A) a committee (or equivalent body) 
                established by and amongst the board of 
                directors of an issuer for the purpose of 
                overseeing the accounting and financial 
                reporting processes of the issuer and audits of 
                the financial statements of the issuer; and
                  (B) if no such committee exists with respect 
                to an issuer, the entire board of directors of 
                the issuer.
          (59) Registered public accounting firm.--The term 
        ``registered public accounting firm'' has the same 
        meaning as in section 2 of the Sarbanes-Oxley Act of 
        2002.
          (60) Credit rating.--The term ``credit rating'' means 
        an assessment of the creditworthiness of an obligor as 
        an entity or with respect to specific securities or 
        money market instruments.
          (61) Credit rating agency.--The term ``credit rating 
        agency'' means any person--
                  (A) engaged in the business of issuing credit 
                ratings on the Internet or through another 
                readily accessible means, for free or for a 
                reasonable fee, but does not include a 
                commercial credit reporting company;
                  (B) employing either a quantitative or 
                qualitative model, or both, to determine credit 
                ratings; and
                  (C) receiving fees from either issuers, 
                investors, or other market participants, or a 
                combination thereof.
          (62) Nationally recognized statistical rating 
        organization.--The term ``nationally recognized 
        statistical rating organization'' means a credit rating 
        agency that--
                  (A) issues credit ratings certified by 
                qualified institutional buyers, in accordance 
                with section 15E(a)(1)(B)(ix), with respect 
                to--
                          (i) financial institutions, brokers, 
                        or dealers;
                          (ii) insurance companies;
                          (iii) corporate issuers;
                          (iv) issuers of asset-backed 
                        securities (as that term is defined in 
                        section 1101(c) of part 229 of title 
                        17, Code of Federal Regulations, as in 
                        effect on the date of enactment of this 
                        paragraph);
                          (v) issuers of government securities, 
                        municipal securities, or securities 
                        issued by a foreign government; or
                          (vi) a combination of one or more 
                        categories of obligors described in any 
                        of clauses (i) through (v); and
                  (B) is registered under section 15E.
          (63) Person associated with a nationally recognized 
        statistical rating organization.--The term ``person 
        associated with'' a nationally recognized statistical 
        rating organization means any partner, officer, 
        director, or branch manager of a nationally recognized 
        statistical rating organization (or any person 
        occupying a similar status or performing similar 
        functions), any person directly or indirectly 
        controlling, controlled by, or under common control 
        with a nationally recognized statistical rating 
        organization, or any employee of a nationally 
        recognized statistical rating organization.
          (64) Qualified institutional buyer.--The term 
        ``qualified institutional buyer'' has the meaning given 
        such term in section 230.144A(a) of title 17, Code of 
        Federal Regulations, or any successor thereto.
           (79) 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.
          (65) Eligible contract participant.--The term 
        ``eligible contract participant'' has the same meaning 
        as in section 1a of the Commodity Exchange Act (7 
        U.S.C. 1a).
          (66) Major swap participant.--The term ``major swap 
        participant'' has the same meaning as in section 1a of 
        the Commodity Exchange Act (7 U.S.C. 1a).
          (67) Major security-based swap participant.--
                  (A) In general.--The term ``major security-
                based swap participant'' means any person--
                          (i) who is not a security-based swap 
                        dealer; and
                          (ii)(I) who maintains a substantial 
                        position in security-based swaps for 
                        any of the major security-based swap 
                        categories, as such categories are 
                        determined by the Commission, excluding 
                        both positions held for hedging or 
                        mitigating commercial risk and 
                        positions maintained by any employee 
                        benefit plan (or any contract held by 
                        such a plan) as defined in paragraphs 
                        (3) and (32) of section 3 of the 
                        Employee Retirement Income Security Act 
                        of 1974 (29 U.S.C. 1002) for the 
                        primary purpose of hedging or 
                        mitigating any risk directly associated 
                        with the operation of the plan;
                          (II) whose outstanding security-based 
                        swaps create substantial counterparty 
                        exposure that could have serious 
                        adverse effects on the financial 
                        stability of the United States banking 
                        system or financial markets; or
                          (III) that is a financial entity 
                        that--
                                  (aa) is highly leveraged 
                                relative to the amount of 
                                capital such entity holds and 
                                that is not subject to capital 
                                requirements established by an 
                                appropriate Federal banking 
                                agency; and
                                  (bb) maintains a substantial 
                                position in outstanding 
                                security-based swaps in any 
                                major security-based swap 
                                category, as such categories 
                                are determined by the 
                                Commission.
                  (B) Definition of substantial position.--For 
                purposes of subparagraph (A), the Commission 
                shall define, by rule or regulation, the term 
                ``substantial position'' at the threshold that 
                the Commission determines to be prudent for the 
                effective monitoring, management, and oversight 
                of entities that are systemically important or 
                can significantly impact the financial system 
                of the United States. In setting the definition 
                under this subparagraph, the Commission shall 
                consider the person's relative position in 
                uncleared as opposed to cleared security-based 
                swaps and may take into consideration the value 
                and quality of collateral held against 
                counterparty exposures.
                  (C) Scope of designation.--For purposes of 
                subparagraph (A), a person may be designated as 
                a major security-based swap participant for 1 
                or more categories of security-based swaps 
                without being classified as a major security-
                based swap participant for all classes of 
                security-based swaps.
          (68) Security-based swap.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the term ``security-based 
                swap'' means any agreement, contract, or 
                transaction that--
                          (i) is a swap, as that term is 
                        defined under section 1a of the 
                        Commodity Exchange Act (without regard 
                        to paragraph (47)(B)(x) of such 
                        section); and
                          (ii) is based on--
                                  (I) an index that is a 
                                narrow-based security index, 
                                including any interest therein 
                                or on the value thereof;
                                  (II) a single security or 
                                loan, including any interest 
                                therein or on the value 
                                thereof; or
                                  (III) the occurrence, 
                                nonoccurrence, or extent of the 
                                occurrence of an event relating 
                                to a single issuer of a 
                                security or the issuers of 
                                securities in a narrow-based 
                                security index, provided that 
                                such event directly affects the 
                                financial statements, financial 
                                condition, or financial 
                                obligations of the issuer.
                  (B) Rule of construction regarding master 
                agreements.--The term ``security-based swap'' 
                shall be construed to include a master 
                agreement that provides for an agreement, 
                contract, or transaction that is a security-
                based swap pursuant to subparagraph (A), 
                together with all supplements to any such 
                master agreement, without regard to whether the 
                master agreement contains an agreement, 
                contract, or transaction that is not a 
                security-based swap pursuant to subparagraph 
                (A), except that the master agreement shall be 
                considered to be a security-based swap only 
                with respect to each agreement, contract, or 
                transaction under the master agreement that is 
                a security-based swap pursuant to subparagraph 
                (A).
                  (C) Exclusions.--The term ``security-based 
                swap'' does not include any agreement, 
                contract, or transaction that meets the 
                definition of a security-based swap only 
                because such agreement, contract, or 
                transaction references, is based upon, or 
                settles through the transfer, delivery, or 
                receipt of an exempted security under paragraph 
                (12), as in effect on the date of enactment of 
                the Futures Trading Act of 1982 (other than any 
                municipal security as defined in paragraph (29) 
                as in effect on the date of enactment of the 
                Futures Trading Act of 1982), unless such 
                agreement, contract, or transaction is of the 
                character of, or is commonly known in the trade 
                as, a put, call, or other option.
                  (D) Mixed swap.--The term ``security-based 
                swap'' includes any agreement, contract, or 
                transaction that is as described in 
                subparagraph (A) and also is based on the value 
                of 1 or more interest or other rates, 
                currencies, commodities, instruments of 
                indebtedness, indices, quantitative measures, 
                other financial or economic interest or 
                property of any kind (other than a single 
                security or a narrow-based security index), or 
                the occurrence, non-occurrence, or the extent 
                of the occurrence of an event or contingency 
                associated with a potential financial, 
                economic, or commercial consequence (other than 
                an event described in subparagraph 
                (A)(ii)(III)).
                  (E) Rule of construction regarding use of the 
                term index.--The term ``index'' means an index 
                or group of securities, including any interest 
                therein or based on the value thereof.
          (69) Swap.--The term ``swap'' has the same meaning as 
        in section 1a of the Commodity Exchange Act (7 U.S.C. 
        1a).
          (70) Person associated with a security-based swap 
        dealer or major security-based swap participant.--
                  (A) In general.--The term ``person associated 
                with a security-based swap dealer or major 
                security-based swap participant'' or 
                ``associated person of a security-based swap 
                dealer or major security-based swap 
                participant'' means--
                          (i) any partner, officer, director, 
                        or branch manager of such security-
                        based swap dealer or major security-
                        based swap participant (or any person 
                        occupying a similar status or 
                        performing similar functions);
                          (ii) any person directly or 
                        indirectly controlling, controlled by, 
                        or under common control with such 
                        security-based swap dealer or major 
                        security-based swap participant; or
                          (iii) any employee of such security-
                        based swap dealer or major security-
                        based swap participant.
                  (B) Exclusion.--Other than for purposes of 
                section 15F(l)(2), the term ``person associated 
                with a security-based swap dealer or major 
                security-based swap participant'' or 
                ``associated person of a security-based swap 
                dealer or major security-based swap 
                participant'' does not include any person 
                associated with a security-based swap dealer or 
                major security-based swap participant whose 
                functions are solely clerical or ministerial.
          (71) Security-based swap dealer.--
                  (A) In general.--The term ``security-based 
                swap dealer'' means any person who--
                          (i) holds themself out as a dealer in 
                        security-based swaps;
                          (ii) makes a market in security-based 
                        swaps;
                          (iii) regularly enters into security-
                        based swaps with counterparties as an 
                        ordinary course of business for its own 
                        account; or
                          (iv) engages in any activity causing 
                        it to be commonly known in the trade as 
                        a dealer or market maker in security-
                        based swaps.
                  (B) Designation by type or class.--A person 
                may be designated as a security-based swap 
                dealer for a single type or single class or 
                category of security-based swap or activities 
                and considered not to be a security-based swap 
                dealer for other types, classes, or categories 
                of security-based swaps or activities.
                  (C) Exception.--The term ``security-based 
                swap dealer'' does not include a person that 
                enters into security-based swaps for such 
                person's own account, either individually or in 
                a fiduciary capacity, but not as a part of 
                regular business.
                  (D) De minimis exception.--The Commission 
                shall exempt from designation as a security-
                based swap dealer an entity that engages in a 
                de minimis quantity of security-based swap 
                dealing in connection with transactions with or 
                on behalf of its customers. The Commission 
                shall promulgate regulations to establish 
                factors with respect to the making of any 
                determination to exempt.
          (72) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the same 
        meaning as in section 3(q) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(q)).
          (73) Board.--The term ``Board'' means the Board of 
        Governors of the Federal Reserve System.
          (74) Prudential regulator.--The term ``prudential 
        regulator'' has the same meaning as in section 1a of 
        the Commodity Exchange Act (7 U.S.C. 1a).
          (75) Security-based swap data repository.--The term 
        ``security-based swap data repository'' means any 
        person that collects and maintains information or 
        records with respect to transactions or positions in, 
        or the terms and conditions of, security-based swaps 
        entered into by third parties for the purpose of 
        providing a centralized recordkeeping facility for 
        security-based swaps.
          (76) Swap dealer.--The term ``swap dealer'' has the 
        same meaning as in section 1a of the Commodity Exchange 
        Act (7 U.S.C. 1a).
          (77) Security-based swap execution facility.--The 
        term ``security-based swap execution facility'' means a 
        trading system or platform in which multiple 
        participants have the ability to execute or trade 
        security-based swaps by accepting bids and offers made 
        by multiple participants in the facility or system, 
        through any means of interstate commerce, including any 
        trading facility, that--
                  (A) facilitates the execution of security-
                based swaps between persons; and
                  (B) is not a national securities exchange.
          (78) Security-based swap agreement.--
                  (A) In general.--For purposes of sections 9, 
                10, 16, 20, and 21A of this Act, and section 17 
                of the Securities Act of 1933 (15 U.S.C. 77q), 
                the term ``security-based swap agreement'' 
                means a swap agreement as defined in section 
                206A of the Gramm-Leach-Bliley Act (15 U.S.C. 
                78c note) of which a material term is based on 
                the price, yield, value, or volatility of any 
                security or any group or index of securities, 
                or any interest therein.
                  (B) Exclusions.--The term ``security-based 
                swap agreement'' does not include any security-
                based swap.
          (80) Emerging growth company.--The term ``emerging 
        growth company'' means an issuer that had total annual 
        gross revenues of less than $1,000,000,000 (as such 
        amount is indexed for inflation every 5 years by the 
        Commission to reflect the change in the Consumer Price 
        Index for All Urban Consumers published by the Bureau 
        of Labor Statistics, setting the threshold to the 
        nearest 1,000,000) during its most recently completed 
        fiscal year. An issuer that is an emerging growth 
        company as of the first day of that fiscal year shall 
        continue to be deemed an emerging growth company until 
        the earliest of--
                  (A) the last day of the fiscal year of the 
                issuer during which it had total annual gross 
                revenues of $1,000,000,000 (as such amount is 
                indexed for inflation every 5 years by the 
                Commission to reflect the change in the 
                Consumer Price Index for All Urban Consumers 
                published by the Bureau of Labor Statistics, 
                setting the threshold to the nearest 1,000,000) 
                or more;
                  (B) the last day of the fiscal year of the 
                issuer following the fifth anniversary of the 
                date of the first sale of common equity 
                securities of the issuer pursuant to an 
                effective registration statement under the 
                Securities Act of 1933;
                  (C) the date on which such issuer has, during 
                the previous 3-year period, issued more than 
                $1,000,000,000 in non-convertible debt; or
                  (D) the date on which such issuer is deemed 
                to be a ``large accelerated filer'', as defined 
                in section 240.12b-2 of title 17, Code of 
                Federal Regulations, or any successor thereto.
          [(80)] (81) Funding portal.--The term ``funding 
        portal'' means any person acting as an intermediary in 
        a transaction involving the offer or sale of securities 
        for the account of others, solely pursuant to section 
        4(6) of the Securities Act of 1933 (15 U.S.C. 77d(6)), 
        that does not--
                  (A) offer investment advice or 
                recommendations;
                  (B) solicit purchases, sales, or offers to 
                buy the securities offered or displayed on its 
                website or portal;
                  (C) compensate employees, agents, or other 
                persons for such solicitation or based on the 
                sale of securities displayed or referenced on 
                its website or portal;
                  (D) hold, manage, possess, or otherwise 
                handle investor funds or securities; or
                  (E) engage in such other activities as the 
                Commission, by rule, determines appropriate.
          (82) Chief economist.--The term ``Chief Economist'' 
        means the Director of the Division of Economic and Risk 
        Analysis, or an employee of the Commission with 
        comparable authority, as determined by the Commission.
  (b) The Commission and the Board of Governors of the Federal 
Reserve System, as to matters within their respective 
jurisdictions, shall have power by rules and regulations to 
define technical, trade, accounting, and other terms used in 
this title, consistently with the provisions and purposes of 
this title.
  (c) No provision of this title shall apply to, or be deemed 
to include, any executive department or independent 
establishment of the United States, or any lending agency which 
is wholly owned, directly or indirectly, by the United States, 
or any officer, agent, or employee of any such department, 
establishment, or agency, acting in the course of his official 
duty as such, unless such provision makes specific reference to 
such department, establishment, or agency.
  (d) No issuer of municipal securities or officer or employee 
thereof acting in the course of his official duties as such 
shall be deemed to be a ``broker'', ``dealer'', or ``municipal 
securities dealer'' solely by reason of buying, selling, or 
effecting transactions in the issuer's securities.
  (e) Charitable Organizations.--
          (1) Exemption.--Notwithstanding any other provision 
        of this title, but subject to paragraph (2) of this 
        subsection, a charitable organization, as defined in 
        section 3(c)(10)(D) of the Investment Company Act of 
        1940, or any trustee, director, officer, employee, or 
        volunteer of such a charitable organization acting 
        within the scope of such person's employment or duties 
        with such organization, shall not be deemed to be a 
        ``broker'', ``dealer'', ``municipal securities 
        broker'', ``municipal securities dealer'', ``government 
        securities broker'', or ``government securities 
        dealer'' for purposes of this title solely because such 
        organization or person buys, holds, sells, or trades in 
        securities for its own account in its capacity as 
        trustee or administrator of, or otherwise on behalf of 
        or for the account of--
                  (A) such a charitable organization;
                  (B) a fund that is excluded from the 
                definition of an investment company under 
                section 3(c)(10)(B) of the Investment Company 
                Act of 1940; or
                  (C) a trust or other donative instrument 
                described in section 3(c)(10)(B) of the 
                Investment Company Act of 1940, or the settlors 
                (or potential settlors) or beneficiaries of any 
                such trust or other instrument.
          (2) Limitation on compensation.--The exemption 
        provided under paragraph (1) shall not be available to 
        any charitable organization, or any trustee, director, 
        officer, employee, or volunteer of such a charitable 
        organization, unless each person who, on or after 90 
        days after the date of enactment of this subsection, 
        solicits donations on behalf of such charitable 
        organization from any donor to a fund that is excluded 
        from the definition of an investment company under 
        section 3(c)(10)(B) of the Investment Company Act of 
        1940, is either a volunteer or is engaged in the 
        overall fund raising activities of a charitable 
        organization and receives no commission or other 
        special compensation based on the number or the value 
        of donations collected for the fund.
  (f) Consideration of Promotion of Efficiency, Competition, 
and Capital Formation.--Whenever pursuant to this title the 
Commission is engaged in rulemaking, or in the review of a rule 
of a self-regulatory organization, and is required to consider 
or determine whether an action is necessary or appropriate in 
the public interest, the Commission shall also consider, in 
addition to the protection of investors, whether the action 
will promote efficiency, competition, and capital formation.
  (g) Church Plans.--No church plan described in section 414(e) 
of the Internal Revenue Code of 1986, no person or entity 
eligible to establish and maintain such a plan under the 
Internal Revenue Code of 1986, no company or account that is 
excluded from the definition of an investment company under 
section 3(c)(14) of the Investment Company Act of 1940, and no 
trustee, director, officer or employee of or volunteer for such 
plan, company, account, person, or entity, acting within the 
scope of that person's employment or activities with respect to 
such plan, shall be deemed to be a ``broker'', ``dealer'', 
``municipal securities broker'', ``municipal securities 
dealer'', ``government securities broker'', ``government 
securities dealer'', ``clearing agency'', or ``transfer agent'' 
for purposes of this title--
          (1) solely because such plan, company, person, or 
        entity buys, holds, sells, trades in, or transfers 
        securities or acts as an intermediary in making 
        payments in connection with transactions in securities 
        for its own account in its capacity as trustee or 
        administrator of, or otherwise on behalf of, or for the 
        account of, any church plan, company, or account that 
        is excluded from the definition of an investment 
        company under section 3(c)(14) of the Investment 
        Company Act of 1940; and
          (2) if no such person or entity receives a commission 
        or other transaction-related sales compensation in 
        connection with any activities conducted in reliance on 
        the exemption provided by this subsection.
  (h) Limited Exemption for Funding Portals.--
          (1) In general.--The Commission shall, by rule, 
        exempt, conditionally or unconditionally, a registered 
        funding portal from the requirement to register as a 
        broker or dealer under section 15(a)(1), provided that 
        such funding portal--
                  (A) remains subject to the examination, 
                enforcement, and other rulemaking authority of 
                the Commission;
                  (B) is a member of a national securities 
                association registered under section 15A; and
                  (C) is subject to such other requirements 
                under this title as the Commission determines 
                appropriate under such rule.
          (2) National securities association membership.--For 
        purposes of sections 15(b)(8) and 15A, the term 
        ``broker or dealer'' includes a funding portal and the 
        term ``registered broker or dealer'' includes a 
        registered funding portal, except to the extent that 
        the Commission, by rule, determines otherwise, provided 
        that a national securities association shall only 
        examine for and enforce against a registered funding 
        portal rules of such national securities association 
        written specifically for registered funding portals.

           *       *       *       *       *       *       *

                   securities and exchange commission

  Sec. 4. (a) There is hereby established a Securities and 
Exchange Commission (hereinafter referred to as the 
``Commission'') to be composed of five commissioners to be 
appointed by the President by and with the advice and consent 
of the Senate. Not more than three of such commissioners shall 
be members of the same political party, and in making 
appointments members of different political parties shall be 
appointed alternately as nearly as may be practicable. No 
commissioner shall engage in any other business, vocation, or 
employment than that of serving as commissioner, nor shall any 
commissioner participate, directly or indirectly, in any stock-
market operations or transactions of a character subject to 
regulation by the Commission pursuant to this title. Each 
commissioner shall hold office for a term of five years and 
until his successor is appointed and has qualified, except that 
he shall not so continue to serve beyond the expiration of the 
next session of Congress subsequent to the expiration of said 
fixed term of office, and except (1) any commissioner appointed 
to fill a vacancy occurring prior to the expiration of the term 
for which his predecessor was appointed shall be appointed for 
the remainder of such term, and (2) the terms of office of the 
commissioners first taking office after the enactment of this 
title shall expire as designated by the President at the time 
of nomination, one at the end of one year, one at the end of 
two years, one at the end of three years, one at the end of 
four years, and one at the end of five years, after the date of 
the enactment of this title.
  (b) Appointment and Compensation of Staff and Leasing 
Authority.--
          (1) Appointment and compensation.--The Commission 
        shall appoint and compensate officers, attorneys, 
        economists, examiners, and other employees in 
        accordance with section 4802 of title 5, United States 
        Code.
          (2) Reporting of information.--In establishing and 
        adjusting schedules of compensation and benefits for 
        officers, attorneys, economists, examiners, and other 
        employees of the Commission under applicable provisions 
        of law, the Commission shall inform the heads of the 
        agencies referred to under section 1206 of the 
        Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989 (12 U.S.C. 1833b) and Congress 
        of such compensation and benefits and shall seek to 
        maintain comparability with such agencies regarding 
        compensation and benefits.
          (3) Leasing authority.--Nothwithstanding any other 
        provision of law, the Commission is authorized to enter 
        directly into leases for real property for office, 
        meeting, storage, and such other space as is necessary 
        to carry out its functions, and shall be exempt from 
        any General Services Administration space management 
        regulations or directives.
  (c) Notwithstanding any other provision of law, in accordance 
with regulations which the Commission shall prescribe to 
prevent conflicts of interest, the Commission may accept 
payment and reimbursement, in cash or in kind, from non-Federal 
agencies, organizations, and individuals for travel, 
subsistence, and other necessary expenses incurred by 
Commission members and employees in attending meetings and 
conferences concerning the functions or activities of the 
Commission. Any payment or reimbursement accepted shall be 
credited to the appropriated funds of the Commission. The 
amount of travel, subsistence, and other necessary expenses for 
members and employees paid or reimbursed under this subsection 
may exceed per diem amounts established in official travel 
regulations, but the Commission may include in its regulations 
under this subsection a limitation on such amounts.
  (d) Notwithstanding any other provision of law, former 
employers of participants in the Commission's professional 
fellows programs may pay such participants their actual 
expenses for relocation to Washington, District of Columbia, to 
facilitate their participation in such programs, and program 
participants may accept such payments.
  (e) Notwithstanding any other provision of law, whenever any 
fee is required to be paid to the Commission pursuant to any 
provision of the securities laws or any other law, the 
Commission may provide by rule that such fee shall be paid in a 
manner other than in cash and the Commission may also specify 
the time that such fee shall be determined and paid relative to 
the filing of any statement or document with the Commission.
  (f) Reimbursement of Expenses for Assisting Foreign 
Securities Authorities.--Notwithstanding any other provision of 
law, the Commission may accept payment and reimbursement, in 
cash or in kind, from a foreign securities authority, or made 
on behalf of such authority, for necessary expenses incurred by 
the Commission, its members, and employees in carrying out any 
investigation pursuant to section 21(a)(2) of this title or in 
providing any other assistance to a foreign securities 
authority. Any payment or reimbursement accepted shall be 
considered a reimbursement to the appropriated funds of the 
Commission.
  (g) Office of the Investor Advocate.--
          (1) Office established.--There is established within 
        the Commission the Office of the Investor Advocate (in 
        this subsection referred to as the ``Office'').
          (2) Investor advocate.--
                  (A) In general.--The head of the Office shall 
                be the Investor Advocate, who shall--
                          (i) report directly to the Chairman; 
                        and
                          (ii) be appointed by the Chairman, in 
                        consultation with the Commission, from 
                        among individuals having experience in 
                        advocating for the interests of 
                        investors in securities and investor 
                        protection issues, from the perspective 
                        of investors.
                  (B) Compensation.--The annual rate of pay for 
                the Investor Advocate shall be equal to the 
                highest rate of annual pay for other senior 
                executives who report to the Chairman of the 
                Commission.
                  (C) Limitation on service.--An individual who 
                serves as the Investor Advocate may not be 
                employed by the Commission--
                          (i) during the 2-year period ending 
                        on the date of appointment as Investor 
                        Advocate; or
                          (ii) during the 5-year period 
                        beginning on the date on which the 
                        person ceases to serve as the Investor 
                        Advocate.
          (3) Staff of office.--The Investor Advocate, after 
        consultation with the Chairman of the Commission, may 
        retain or employ independent counsel, research staff, 
        and service staff, as the Investor Advocate deems 
        necessary to carry out the functions, powers, and 
        duties of the Office.
          (4) Functions of the investor advocate.--The Investor 
        Advocate shall--
                  (A) assist retail investors in resolving 
                significant problems such investors may have 
                with the Commission or with self-regulatory 
                organizations;
                  (B) identify areas in which investors would 
                benefit from changes in the regulations of the 
                Commission or the rules of self-regulatory 
                organizations;
                  (C) identify problems that investors have 
                with financial service providers and investment 
                products;
                  (D) analyze the potential impact on investors 
                of--
                          (i) proposed regulations of the 
                        Commission; and
                          (ii) proposed rules of self-
                        regulatory organizations registered 
                        under this title; and
                  (E) to the extent practicable, propose to the 
                Commission changes in the regulations or orders 
                of the Commission and to Congress any 
                legislative, administrative, or personnel 
                changes that may be appropriate to mitigate 
                problems identified under this paragraph and to 
                promote the interests of investors.
          (5) Access to documents.--The Commission shall ensure 
        that the Investor Advocate has full access to the 
        documents of the Commission and any self-regulatory 
        organization, as necessary to carry out the functions 
        of the Office.
          (6) Annual reports.--
                  (A) Report on objectives.--
                          (i) In general.--Not later than June 
                        30 of each year after 2010, the 
                        Investor Advocate 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 on 
                        the objectives of the Investor Advocate 
                        for the following fiscal year.
                          (ii) Contents.--Each report required 
                        under clause (i) shall contain full and 
                        substantive analysis and explanation.
                  (B) Report on activities.--
                          (i) In general.--Not later than 
                        December 31 of each year after 2010, 
                        the Investor Advocate 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 on 
                        the activities of the Investor Advocate 
                        during the immediately preceding fiscal 
                        year.
                          (ii) Contents.--Each report required 
                        under clause (i) shall include--
                                  (I) appropriate statistical 
                                information and full and 
                                substantive analysis;
                                  (II) information on steps 
                                that the Investor Advocate has 
                                taken during the reporting 
                                period to improve investor 
                                services and the responsiveness 
                                of the Commission and self-
                                regulatory organizations to 
                                investor concerns;
                                  (III) a summary of the most 
                                serious problems encountered by 
                                investors during the reporting 
                                period;
                                  (IV) an inventory of the 
                                items described in subclause 
                                (III) that includes--
                                          (aa) identification 
                                        of any action taken by 
                                        the Commission or the 
                                        self-regulatory 
                                        organization and the 
                                        result of such action;
                                          (bb) the length of 
                                        time that each item has 
                                        remained on such 
                                        inventory; and
                                          (cc) for items on 
                                        which no action has 
                                        been taken, the reasons 
                                        for inaction, and an 
                                        identification of any 
                                        official who is 
                                        responsible for such 
                                        action;
                                  (V) recommendations for such 
                                administrative and legislative 
                                actions as may be appropriate 
                                to resolve problems encountered 
                                by investors; and
                                  (VI) any other information, 
                                as determined appropriate by 
                                the Investor Advocate.
                          (iii) Independence.--Each report 
                        required under this paragraph shall be 
                        provided directly to the Committees 
                        listed in clause (i) without any prior 
                        review or comment from the Commission, 
                        any commissioner, any other officer or 
                        employee of the Commission, or the 
                        Office of Management and Budget.
                          (iv) Confidentiality.--No report 
                        required under clause (i) may contain 
                        confidential information.
          (7) Regulations.--The Commission shall, by 
        regulation, establish procedures requiring a formal 
        response to all recommendations submitted to the 
        Commission by the Investor Advocate, not later than 3 
        months after the date of such submission.
          (8) Ombudsman.--
                  (A) Appointment.--Not later than 180 days 
                after the date on which the first Investor 
                Advocate is appointed under paragraph 
                (2)(A)(i), the Investor Advocate shall appoint 
                an Ombudsman, who shall report directly to the 
                Investor Advocate.
                  (B) Duties.--The Ombudsman appointed under 
                subparagraph (A) shall--
                          (i) act as a liaison between the 
                        Commission and any retail investor in 
                        resolving problems that retail 
                        investors may have with the Commission 
                        or with self-regulatory organizations;
                          (ii) review and make recommendations 
                        regarding policies and procedures to 
                        encourage persons to present questions 
                        to the Investor Advocate regarding 
                        compliance with the securities laws; 
                        and
                          (iii) establish safeguards to 
                        maintain the confidentiality of 
                        communications between the persons 
                        described in clause (ii) and the 
                        Ombudsman.
                  (C) Limitation.--In carrying out the duties 
                of the Ombudsman under subparagraph (B), the 
                Ombudsman shall utilize personnel of the 
                Commission to the extent practicable. Nothing 
                in this paragraph shall be construed as 
                replacing, altering, or diminishing the 
                activities of any ombudsman or similar office 
                of any other agency.
                  (D) Report.--The Ombudsman shall submit a 
                semiannual report to the Investor Advocate that 
                describes the activities and evaluates the 
                effectiveness of the Ombudsman during the 
                preceding year. The Investor Advocate shall 
                include the reports required under this section 
                in the reports required to be submitted by the 
                Inspector Advocate under paragraph (6).
  (h) Examiners.--
          (1) Division of trading and markets.--The Division of 
        Trading and Markets of the Commission, or any successor 
        organizational unit, shall have a staff of examiners 
        who shall--
                  (A) perform compliance inspections and 
                examinations of entities under the jurisdiction 
                of that Division; and
                  (B) report to the Director of that Division.
          (2) Division of investment management.--The Division 
        of Investment Management of the Commission, or any 
        successor organizational unit, shall have a staff of 
        examiners who shall--
                  (A) perform compliance inspections and 
                examinations of entities under the jurisdiction 
                of that Division; and
                  (B) report to the Director of that Division.
  (i) Securities and Exchange Commission Reserve Fund.--
          (1) Reserve fund established.--There is established 
        in the Treasury of the United States a separate fund, 
        to be known as the ``Securities and Exchange Commission 
        Reserve Fund'' (referred to in this subsection as the 
        ``Reserve Fund'').
          (2) Reserve fund amounts.--
                  (A) In general.--Except as provided in 
                subparagraph (B), any registration fees 
                collected by the Commission under section 6(b) 
                of the Securities Act of 1933 (15 U.S.C. 
                77f(b)) or section 24(f) of the Investment 
                Company Act of 1940 (15 U.S.C. 80a-24(f)) shall 
                be deposited into the Reserve Fund.
                  (B) Limitations.--For any 1 fiscal year--
                          (i) the amount deposited in the Fund 
                        may not exceed $50,000,000; and
                          (ii) the balance in the Fund may not 
                        exceed $100,000,000.
                  (C) Excess fees.--Any amounts in excess of 
                the limitations described in subparagraph (B) 
                that the Commission collects from registration 
                fees under section 6(b) of the Securities Act 
                of 1933 (15 U.S.C. 77f(b)) or section 24(f) of 
                the Investment Company Act of 1940 (15 U.S.C. 
                80a-24(f)) shall be deposited in the General 
                Fund of the Treasury of the United States and 
                shall not be available for obligation by the 
                Commission.
          (3) Use of amounts in reserve fund.--The Commission 
        may obligate amounts in the Reserve Fund, not to exceed 
        a total of $100,000,000 in any 1 fiscal year, as the 
        Commission determines is necessary to carry out the 
        functions of the Commission. Any amounts in the reserve 
        fund shall remain available until expended. Not later 
        than 10 days after the date on which the Commission 
        obligates amounts under this paragraph, the Commission 
        shall notify Congress of the date, amount, and purpose 
        of the obligation.
          (4) Rule of construction.--Amounts collected and 
        deposited in the Reserve Fund shall not be construed to 
        be Government funds or appropriated monies and shall 
        not be subject to apportionment for the purpose of 
        chapter 15 of title 31, United States Code, or under 
        any other authority.
  (j) Office of the Advocate for Small Business Capital 
Formation.--
          (1) Office established.--There is established within 
        the Commission the Office of the Advocate for Small 
        Business Capital Formation (hereafter in this 
        subsection referred to as the ``Office'').
          (2) Advocate for small business capital formation.--
                  (A) In general.--The head of the Office shall 
                be the Advocate for Small Business Capital 
                Formation, who shall--
                          (i) report directly to the 
                        Commission; and
                          (ii) be appointed by the Commission, 
                        from among individuals having 
                        experience in advocating for the 
                        interests of small businesses and 
                        encouraging small business capital 
                        formation.
                  (B) Compensation.--The annual rate of pay for 
                the Advocate for Small Business Capital 
                Formation shall be equal to the highest rate of 
                annual pay for other senior executives who 
                report directly to the Commission.
                  (C) No current employee of the commission.--
                An individual may not be appointed as the 
                Advocate for Small Business Capital Formation 
                if the individual is currently employed by the 
                Commission.
          (3) Staff of office.--The Advocate for Small Business 
        Capital Formation, after consultation with the 
        Commission, may retain or employ independent counsel, 
        research staff, and service staff, as the Advocate for 
        Small Business Capital Formation determines to be 
        necessary to carry out the functions of the Office.
          (4) Functions of the advocate for small business 
        capital formation.--The Advocate for Small Business 
        Capital Formation shall--
                  (A) assist small businesses and small 
                business investors in resolving significant 
                problems such businesses and investors may have 
                with the Commission or with self-regulatory 
                organizations;
                  (B) identify areas in which small businesses 
                and small business investors would benefit from 
                changes in the regulations of the Commission or 
                the rules of self-regulatory organizations;
                  (C) identify problems that small businesses 
                have with securing access to capital, including 
                any unique challenges to minority-owned small 
                businesses, women-owned small businesses, 
                rural-area small businesses, and small 
                businesses affected by hurricanes or other 
                natural disasters;
                  (D) analyze the potential impact on small 
                businesses and small business investors of--
                          (i) proposed regulations of the 
                        Commission that are likely to have a 
                        significant economic impact on small 
                        businesses and small business capital 
                        formation; and
                          (ii) proposed rules that are likely 
                        to have a significant economic impact 
                        on small businesses and small business 
                        capital formation of self-regulatory 
                        organizations registered under this 
                        title;
                  (E) conduct outreach to small businesses and 
                small business investors, including through 
                regional roundtables, in order to solicit views 
                on relevant capital formation issues;
                  (F) to the extent practicable, propose to the 
                Commission changes in the regulations or orders 
                of the Commission and to Congress any 
                legislative, administrative, or personnel 
                changes that may be appropriate to mitigate 
                problems identified under this paragraph and to 
                promote the interests of small businesses and 
                small business investors;
                  (G) consult with the Investor Advocate on 
                proposed recommendations made under 
                subparagraph (F); and
                  (H) advise the Investor Advocate on issues 
                related to small businesses and small business 
                investors.
          (5) Access to documents.--The Commission shall ensure 
        that the Advocate for Small Business Capital Formation 
        has full access to the documents and information of the 
        Commission and any self-regulatory organization, as 
        necessary to carry out the functions of the Office.
          (6) Annual report on activities.--
                  (A) In general.--Not later than December 31 
                of each year after 2015, the Advocate for Small 
                Business Capital Formation 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 on the activities of 
                the Advocate for Small Business Capital 
                Formation during the immediately preceding 
                fiscal year.
                  (B) Contents.--Each report required under 
                subparagraph (A) shall include--
                          (i) appropriate statistical 
                        information and full and substantive 
                        analysis;
                          (ii) information on steps that the 
                        Advocate for Small Business Capital 
                        Formation has taken during the 
                        reporting period to improve small 
                        business services and the 
                        responsiveness of the Commission and 
                        self-regulatory organizations to small 
                        business and small business investor 
                        concerns;
                          (iii) a summary of the most serious 
                        issues encountered by small businesses 
                        and small business investors, including 
                        any unique issues encountered by 
                        minority-owned small businesses, women-
                        owned small businesses, rural-area 
                        small businesses, and small businesses 
                        affected by hurricanes or other natural 
                        disasters and their investors, during 
                        the reporting period;
                          (iv) an inventory of the items 
                        summarized under clause (iii) 
                        (including items summarized under such 
                        clause for any prior reporting period 
                        on which no action has been taken or 
                        that have not been resolved to the 
                        satisfaction of the Advocate for Small 
                        Business Capital Formation as of the 
                        beginning of the reporting period 
                        covered by the report) that includes--
                                  (I) identification of any 
                                action taken by the Commission 
                                or the self-regulatory 
                                organization and the result of 
                                such action;
                                  (II) the length of time that 
                                each item has remained on such 
                                inventory; and
                                  (III) for items on which no 
                                action has been taken, the 
                                reasons for inaction, and an 
                                identification of any official 
                                who is responsible for such 
                                action;
                          (v) recommendations for such changes 
                        to the regulations, guidance and orders 
                        of the Commission and such legislative 
                        actions as may be appropriate to 
                        resolve problems with the Commission 
                        and self-regulatory organizations 
                        encountered by small businesses and 
                        small business investors and to 
                        encourage small business capital 
                        formation; and
                          (vi) any other information, as 
                        determined appropriate by the Advocate 
                        for Small Business Capital Formation.
                  (C) Confidentiality.--No report required by 
                subparagraph (A) may contain confidential 
                information.
                  (D) Independence.--Each report required under 
                subparagraph (A) shall be provided directly to 
                the committees of Congress listed in such 
                subparagraph without any prior review or 
                comment from the Commission, any commissioner, 
                any other officer or employee of the 
                Commission, or the Office of Management and 
                Budget.
          (7) Regulations.--The Commission shall establish 
        procedures requiring a formal response to all 
        recommendations submitted to the Commission by the 
        Advocate for Small Business Capital Formation, not 
        later than 3 months after the date of such submission.
          (8) Government-business forum on small business 
        capital formation.--The Advocate for Small Business 
        Capital Formation shall be responsible for planning, 
        organizing, and executing the annual Government-
        Business Forum on Small Business Capital Formation 
        described in section 503 of the Small Business 
        Investment Incentive Act of 1980 (15 U.S.C. 80c-1).
          (9) Rule of construction.--Nothing in this subsection 
        may be construed as replacing or reducing the 
        responsibilities of the Investor Advocate with respect 
        to small business investors.

           *       *       *       *       *       *       *

SEC. 4F. INTERNAL RISK CONTROLS.

  (a) In General.--Each of the following entities, in 
consultation with the Chief Economist, shall develop 
comprehensive internal risk control mechanisms to safeguard and 
govern the storage of all market data by such entity, all 
market data sharing agreements of such entity, and all academic 
research performed at such entity using market data:
          (1) The Commission.
          (2) Each national securities association registered 
        pursuant to section 15A.
          (3) The operator of the consolidated audit trail 
        created by a national market system plan approved 
        pursuant to section 242.613 of title 17, Code of 
        Federal Regulations (or any successor regulation).
  (b) Consolidated Audit Trail Prohibited From Accepting Market 
Data Until Mechanisms Developed.--The operator described in 
paragraph (3) of subsection (a) may not accept market data (or 
shall cease accepting market data) until the operator has 
developed the mechanisms required by such subsection. Any 
requirement for a person to provide market data to the operator 
shall not apply during any time when the operator is prohibited 
by this subsection from accepting such data.
  (c) Treatment of Previously Developed Mechanisms.--The 
development of comprehensive internal risk control mechanisms 
required by subsection (a) may occur, in whole or in part, 
before the date of the enactment of this section, if such 
development and such mechanisms meet the requirements of such 
subsection (including consultation with the Chief Economist).

           *       *       *       *       *       *       *

           registration and regulation of brokers and dealers

  Sec. 15. (a)(1) It shall be unlawful for any broker or dealer 
which is either a person other than a natural person or a 
natural person not associated with a broker or dealer which is 
a person other than a natural person (other than such a broker 
or dealer whose business is exclusively intrastate and who does 
not make use of any facility of a national securities exchange) 
to make use of the mails or any means or instrumentality of 
interstate commerce to effect any transactions in, or to induce 
or attempt to induce the purchase or sale of, any security 
(other than an exempted security or commercial paper, bankers' 
acceptances, or commercial bills) unless such broker or dealer 
is registered in accordance with subsection (b) of this 
section.
  (2) The Commission, by rule or order, as it deems consistent 
with the public interest and the protection of investors, may 
conditionally or unconditionally exempt from paragraph (1) of 
this subsection any broker or dealer or class of brokers or 
dealers specified in such rule or order.
  (b)(1) A broker or dealer may be registered by filing with 
the Commission an application for registration in such form and 
containing such information and documents concerning such 
broker or dealer and any persons associated with such broker or 
dealer as the Commission, by rule, may prescribe as necessary 
or appropriate in the public interest or for the protection of 
investors. Within forty-five days of the date of the filing of 
such application (or within such longer period as to which the 
applicant consents), the Commission shall--
          (A) by order grant registration, or
          (B) institute proceedings to determine whether 
        registration should be denied. Such proceedings shall 
        include notice of the grounds for denial under 
        consideration and opportunity for hearing and shall be 
        concluded within one hundred twenty days of the date of 
        the filing of the application for registration. At the 
        conclusion of such proceedings, the Commission, by 
        order, shall grant or deny such registration. The 
        Commission may extend the time for conclusion of such 
        proceedings for up to ninety days if it finds good 
        cause for such extension and publishes its reasons for 
        so finding or for such longer period as to which the 
        applicant consents.
The Commission shall grant such registration if the Commission 
finds that the requirements of this section are satisfied. The 
order granting registration shall not be effective until such 
broker or dealer has become a member of a registered securities 
association, or until such broker or dealer has become a member 
of a national securities exchange, if such broker or dealer 
effects transactions solely on that exchange, unless the 
Commission has exempted such broker or dealer, by rule or 
order, from such membership. The Commission shall deny such 
registration if it does not make such a finding or if it finds 
that if the applicant were so registered, its registration 
would be subject to suspension or revocation under paragraph 
(4) of this subsection.
  (2)(A) An application for registration of a broker or dealer 
to be formed or organized may be made by a broker or dealer to 
which the broker or dealer to be formed or organized is to be 
the successor. Such application, in such form as the 
Commission, by rule, may prescribe, shall contain such 
information and documents concerning the applicant, the 
successor, and any persons associated with the applicant or the 
successor, as the Commission, by rule, may prescribe as 
necessary or appropriate in the public interest or for the 
protection of investors. The grant or denial of registration to 
such an applicant shall be in accordance with the procedures 
set forth in paragraph (1) of this subsection. If the 
Commission grants such registration, the registration shall 
terminate on the forty-fifth day after the effective date 
thereof, unless prior thereto the successor shall, in 
accordance with such rules and regulations as the Commission 
may prescribe, adopt the application for registration as its 
own.
  (B) Any person who is a broker or dealer solely by reason of 
acting as a municipal securities dealer or municipal securities 
broker, who so acts through a separately identifiable 
department or division, and who so acted in such a manner on 
the date of enactment of the Securities Acts Amendments of 
1975, may, in accordance with such terms and conditions as the 
Commission, by rule, prescribes as necessary and appropriate in 
the public interest and for the protection of investors, 
register such separately identifiable department or division in 
accordance with this subsection. If any such department or 
division is so registered, the department or division and not 
such person himself shall be the broker or dealer for purposes 
of this title.
  (C) Within six months of the date of the granting of 
registration to a broker or dealer, the Commission, or upon the 
authorization and direction of the Commission, a registered 
securities association or national securities exchange of which 
such broker or dealer is a member, shall conduct an inspection 
of the broker or dealer to determine whether it is operating in 
conformity with the provisions of this title and the rules and 
regulations thereunder: Provided, however, That the Commission 
may delay such inspection of any class of brokers or dealers 
for a period not to exceed six months.
  (3) Any provision of this title (other than section 5 and 
subsection (a) of this section) which prohibits any act, 
practice, or course of business if the mails or any means or 
instrumentality of interstate commerce is used in connection 
therewith shall also prohibit any such act, practice, or course 
of business by any registered broker or dealer or any person 
acting on behalf of such a broker or dealer, irrespective of 
any use of the mails or any means or instrumentality of 
interstate commerce in connection therewith.
  (4) The Commission, by order, shall censure, place 
limitations on the activities, functions, or operations of, 
suspend for a period not exceeding twelve months, or revoke the 
registration of any broker or dealer if it finds, on the record 
after notice and opportunity for hearing, that such censure, 
placing of limitations, suspension, or revocation is in the 
public interest and that such broker or dealer, whether prior 
or subsequent to becoming such, or any person associated with 
such broker or dealer, whether prior or subsequent to becoming 
so associated--
          (A) has willfully made or caused to be made in any 
        application for registration or report required to be 
        filed with the Commission or with any other appropriate 
        regulatory agency under this title, or in any 
        proceeding before the Commission with respect to 
        registration, any statement which was at the time and 
        in the light of the circumstances under which it was 
        made false or misleading with respect to any material 
        fact, or has omitted to state in any such application 
        or report any material fact which is required to be 
        stated therein.
          (B) has been convicted within ten years preceding the 
        filing of any application for registration or at any 
        time thereafter of any felony or misdemeanor or of a 
        substantially equivalent crime by a foreign court of 
        competent jurisdiction which the Commission finds--
                  (i) involves the purchase or sale of any 
                security, the taking of a false oath, the 
                making of a false report, bribery, perjury, 
                burglary, any substantially equivalent activity 
                however denominated by the laws of the relevant 
                foreign government, or conspiracy to commit any 
                such offense;
                  (ii) arises out of the conduct of the 
                business of a broker, dealer, municipal 
                securities dealer municipal advisor,, 
                government securities broker, government 
                securities dealer, investment adviser, bank, 
                insurance company, fiduciary, transfer agent, 
                nationally recognized statistical rating 
                organization, foreign person performing a 
                function substantially equivalent to any of the 
                above, or entity or person required to be 
                registered under the Commodity Exchange Act (7 
                U.S.C. 1 et seq.) or any substantially 
                equivalent foreign statute or regulation;
                  (iii) involves the larceny, theft, robbery, 
                extortion, forgery, counterfeiting, fraudulent 
                concealment, embezzlement, fraudulent 
                conversion, or misappropriation of funds, or 
                securities, or substantially equivalent 
                activity however denominated by the laws of the 
                relevant foreign government; or
                  (iv) involves the violation of section 152, 
                1341, 1342, or 1343 or chapter 25 or 47 of 
                title 18, United States Code, or a violation of 
                a substantially equivalent foreign statute.
          (C) is permanently or temporarily enjoined by order, 
        judgment, or decree of any court of competent 
        jurisdiction from acting as an investment adviser, 
        underwriter, broker, dealer, municipal securities 
        dealer municipal advisor,, government securities 
        broker, government securities dealer, security-based 
        swap dealer, major security-based swap participant, 
        transfer agent, nationally recognized statistical 
        rating organization, foreign person performing a 
        function substantially equivalent to any of the above, 
        or entity or person required to be registered under the 
        Commodity Exchange Act or any substantially equivalent 
        foreign statute or regulation, or as an affiliated 
        person or employee of any investment company, bank, 
        insurance company, foreign entity substantially 
        equivalent to any of the above, or entity or person 
        required to be registered under the Commodity Exchange 
        Act or any substantially equivalent foreign statute or 
        regulation, or from engaging in or continuing any 
        conduct or practice in connection with any such 
        activity, or in connection with the purchase or sale of 
        any security.
          (D) has willfully violated any provision of the 
        Securities Act of 1933, the Investment Advisers Act of 
        1940, the Investment Company Act of 1940, the Commodity 
        Exchange Act, this title, the rules or regulations 
        under any of such statutes, or the rules of the 
        Municipal Securities Rulemaking Board, or is unable to 
        comply with any such provision.
          (E) has willfully aided, abetted, counseled, 
        commanded, induced, or procured the violation by any 
        other person of any provision of the Securities Act of 
        1933, the Investment Advisers Act of 1940, the 
        Investment Company Act of 1940, the Commodity Exchange 
        Act, this title, the rules or regulations under any of 
        such statutes, or the rules of the Municipal Securities 
        Rulemaking Board, or has failed reasonably to 
        supervise, with a view to preventing violations of the 
        provisions of such statutes, rules, and regulations, 
        another person who commits such a violation, if such 
        other person is subject to his supervision. For the 
        purposes of this subparagraph (E) no person shall be 
        deemed to have failed reasonably to supervise any other 
        person, if--
                  (i) there have been established procedures, 
                and a system for applying such procedures, 
                which would reasonably be expected to prevent 
                and detect, insofar as practicable, any such 
                violation by such other person, and
                  (ii) such person has reasonably discharged 
                the duties and obligations incumbent upon him 
                by reason of such procedures and system without 
                reasonable cause to believe that such 
                procedures and system were not being complied 
                with.
          (F) is subject to any order of the Commission barring 
        or suspending the right of the person to be associated 
        with a broker, dealer, security-based swap dealer, or a 
        major security-based swap participant;
          (G) has been found by a foreign financial regulatory 
        authority to have--
                  (i) made or caused to be made in any 
                application for registration or report required 
                to be filed with a foreign financial regulatory 
                authority, or in any proceeding before a 
                foreign financial regulatory authority with 
                respect to registration, any statement that was 
                at the time and in the light of the 
                circumstances under which it was made false or 
                misleading with respect to any material fact, 
                or has omitted to state in any application or 
                report to the foreign financial regulatory 
                authority any material fact that is required to 
                be stated therein;
                  (ii) violated any foreign statute or 
                regulation regarding transactions in 
                securities, or contracts of sale of a commodity 
                for future delivery, traded on or subject to 
                the rules of a contract market or any board of 
                trade;
                  (iii) aided, abetted, counseled, commanded, 
                induced, or procured the violation by any 
                person of any provision of any statutory 
                provisions enacted by a foreign government, or 
                rules or regulations thereunder, empowering a 
                foreign financial regulatory authority 
                regarding transactions in securities, or 
                contracts of sale of a commodity for future 
                delivery, traded on or subject to the rules of 
                a contract market or any board of trade, or has 
                been found, by a foreign financial regulatory 
                authority, to have failed reasonably to 
                supervise, with a view to preventing violations 
                of such statutory provisions, rules, and 
                regulations, another person who commits such a 
                violation, if such other person is subject to 
                his supervision; or
          (H) is subject to any final order of a State 
        securities commission (or any agency or officer 
        performing like functions), State authority that 
        supervises or examines banks, savings associations, or 
        credit unions, State insurance commission (or any 
        agency or office performing like functions), an 
        appropriate Federal banking agency (as defined in 
        section 3 of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(q))), or the National Credit Union 
        Administration, that--
                  (i) bars such person from association with an 
                entity regulated by such commission, authority, 
                agency, or officer, or from engaging in the 
                business of securities, insurance, banking, 
                savings association activities, or credit union 
                activities; or
                  (ii) constitutes a final order based on 
                violations of any laws or regulations that 
                prohibit fraudulent, manipulative, or deceptive 
                conduct.
  (5) Pending final determination whether any registration 
under this subsection shall be revoked, the Commission, by 
order, may suspend such registration, if such suspension 
appears to the Commission, after notice and opportunity for 
hearing, to be necessary or appropriate in the public interest 
or for the protection of investors. Any registered broker or 
dealer may, upon such terms and conditions as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors, withdraw from registration by 
filing a written notice of withdrawal with the Commission. If 
the Commission finds that any registered broker or dealer is no 
longer in existence or has ceased to do business as a broker or 
dealer, the Commission, by order, shall cancel the registration 
of such broker or dealer.
  (6)(A) With respect to any person who is associated, who is 
seeking to become associated, or, at the time of the alleged 
misconduct, who was associated or was seeking to become 
associated with a broker or dealer, or any person 
participating, or, at the time of the alleged misconduct, who 
was participating, in an offering of any penny stock, the 
Commission, by order, shall censure, place limitations on the 
activities or functions of such person, or suspend for a period 
not exceeding 12 months, or bar any such person from being 
associated with a broker, dealer, investment adviser, municipal 
securities dealer, municipal advisor, transfer agent, or 
nationally recognized statistical rating organization, or from 
participating in an offering of penny stock, if the Commission 
finds, on the record after notice and opportunity for a 
hearing, that such censure, placing of limitations, suspension, 
or bar is in the public interest and that such person--
          (i) has committed or omitted any act, or is subject 
        to an order or finding, enumerated in subparagraph (A), 
        (D), (E), (H), or (G) of paragraph (4) of this 
        subsection;
          (ii) has been convicted of any offense specified in 
        subparagraph (B) of such paragraph (4) within 10 years 
        of the commencement of the proceedings under this 
        paragraph; or
          (iii) is enjoined from any action, conduct, or 
        practice specified in subparagraph (C) of such 
        paragraph (4).
  (B) It shall be unlawful--
          (i) for any person as to whom an order under 
        subparagraph (A) is in effect, without the consent of 
        the Commission, willfully to become, or to be, 
        associated with a broker or dealer in contravention of 
        such order, or to participate in an offering of penny 
        stock in contravention of such order;
          (ii) for any broker or dealer to permit such a 
        person, without the consent of the Commission, to 
        become or remain, a person associated with the broker 
        or dealer in contravention of such order, if such 
        broker or dealer knew, or in the exercise of reasonable 
        care should have known, of such order; or
          (iii) for any broker or dealer to permit such a 
        person, without the consent of the Commission, to 
        participate in an offering of penny stock in 
        contravention of such order, if such broker or dealer 
        knew, or in the exercise of reasonable care should have 
        known, of such order and of such participation.
  (C) For purposes of this paragraph, the term ``person 
participating in an offering of penny stock'' includes any 
person acting as any promoter, finder, consultant, agent, or 
other person who engages in activities with a broker, dealer, 
or issuer for purposes of the issuance or trading in any penny 
stock, or inducing or attempting to induce the purchase or sale 
of any penny stock. The Commission may, by rule or regulation, 
define such term to include other activities, and may, by rule, 
regulation, or order, exempt any person or class of persons, in 
whole or in part, conditionally or unconditionally, from such 
term.
  (7) No registered broker or dealer or government securities 
broker or government securities dealer registered (or required 
to register) under section 15C(a)(1)(A) shall effect any 
transaction in, or induce the purchase or sale of, any security 
unless such broker or dealer meets such standards of 
operational capability and such broker or dealer and all 
natural persons associated with such broker or dealer meet such 
standards of training, experience, competence, and such other 
qualifications as the Commission finds necessary or appropriate 
in the public interest or for the protection of investors. The 
Commission shall establish such standards by rules and 
regulations, which may--
          (A) specify that all or any portion of such standards 
        shall be applicable to any class of brokers and dealers 
        and persons associated with brokers and dealers;
          (B) require persons in any such class to pass tests 
        prescribed in accordance with such rules and 
        regulations, which tests shall, with respect to any 
        class of partners, officers, or supervisory employees 
        (which latter term may be defined by the Commission's 
        rules and regulations and as so defined shall include 
        branch managers of brokers or dealers) engaged in the 
        management of the broker or dealer, include questions 
        relating to bookkeeping, accounting, internal control 
        over cash and securities, supervision of employees, 
        maintenance of records, and other appropriate matters; 
        and
          (C) provide that persons in any such class other than 
        brokers and dealers and partners, officers, and 
        supervisory employees of brokers or dealers, may be 
        qualified solely on the basis of compliance with such 
        standards of training and such other qualifications as 
        the Commission finds appropriate.
The Commission, by rule, may prescribe reasonable fees and 
charges to defray its costs in carrying out this paragraph, 
including, but not limited to, fees for any test administered 
by it or under its direction. The Commission may cooperate with 
registered securities associations and national securities 
exchanges in devising and administering tests and may require 
registered brokers and dealers and persons associated with such 
brokers and dealers to pass tests administered by or on behalf 
of any such association or exchange and to pay such association 
or exchange reasonable fees or charges to defray the costs 
incurred by such association or exchange in administering such 
tests.
  (8) It shall be unlawful for any registered broker or dealer 
to effect any transaction in, or induce or attempt to induce 
the purchase or sale of, any security (other than or commercial 
paper, bankers' acceptances, or commercial bills), unless such 
broker or dealer is a member of a securities association 
registered pursuant to section 15A of this title or effects 
transactions in securities solely on a national securities 
exchange of which it is a member.
  (9) The Commission by rule or order, as it deems consistent 
with the public interest and the protection of investors, may 
conditionally or unconditionally exempt from paragraph (8) of 
this subsection any broker or dealer or class of brokers or 
dealers specified in such rule or order.
  (10) For the purposes of determining whether a person is 
subject to a statutory disqualification under section 6(c)(2), 
15A(g)(2), or 17A(b)(4)(A) of this title, the term 
``Commission'' in paragraph (4)(B) of this subsection shall 
mean ``exchange'', ``association'', or ``clearing agency'', 
respectively.
          (11) Broker/dealer registration with respect to 
        transactions in security futures products.--
                  (A) Notice registration.--
                          (i) Contents of notice.--
                        Notwithstanding paragraphs (1) and (2), 
                        a broker or dealer required to register 
                        only because it effects transactions in 
                        security futures products on an 
                        exchange registered pursuant to section 
                        6(g) may register for purposes of this 
                        section by filing with the Commission a 
                        written notice in such form and 
                        containing such information concerning 
                        such broker or dealer and any persons 
                        associated with such broker or dealer 
                        as the Commission, by rule, may 
                        prescribe as necessary or appropriate 
                        in the public interest or for the 
                        protection of investors. A broker or 
                        dealer may not register under this 
                        paragraph unless that broker or dealer 
                        is a member of a national securities 
                        association registered under section 
                        15A(k).
                          (ii) Immediate effectiveness.--Such 
                        registration shall be effective 
                        contemporaneously with the submission 
                        of notice, in written or electronic 
                        form, to the Commission, except that 
                        such registration shall not be 
                        effective if the registration would be 
                        subject to suspension or revocation 
                        under paragraph (4).
                          (iii) Suspension.--Such registration 
                        shall be suspended immediately if a 
                        national securities association 
                        registered pursuant to section 15A(k) 
                        of this title suspends the membership 
                        of that broker or dealer.
                          (iv) Termination.--Such registration 
                        shall be terminated immediately if any 
                        of the above stated conditions for 
                        registration set forth in this 
                        paragraph are no longer satisfied.
                  (B) Exemptions for registered brokers and 
                dealers.--A broker or dealer registered 
                pursuant to the requirements of subparagraph 
                (A) shall be exempt from the following 
                provisions of this title and the rules 
                thereunder with respect to transactions in 
                security futures products:
                          (i) Section 8.
                          (ii) Section 11.
                          (iii) Subsections (c)(3) and (c)(5) 
                        of this section.
                          (iv) Section 15B.
                          (v) Section 15C.
                          (vi) Subsections (d), (e), (f), (g), 
                        (h), and (i) of section 17.
          (12) Exemption for security futures product exchange 
        members.--
                  (A) Registration exemption.--A natural person 
                shall be exempt from the registration 
                requirements of this section if such person--
                          (i) is a member of a designated 
                        contract market registered with the 
                        Commission as an exchange pursuant to 
                        section 6(g);
                          (ii) effects transactions only in 
                        securities on the exchange of which 
                        such person is a member; and
                          (iii) does not directly accept or 
                        solicit orders from public customers or 
                        provide advice to public customers in 
                        connection with the trading of security 
                        futures products.
                  (B) Other exemptions.--A natural person 
                exempt from registration pursuant to 
                subparagraph (A) shall also be exempt from the 
                following provisions of this title and the 
                rules thereunder:
                          (i) Section 8.
                          (ii) Section 11.
                          (iii) Subsections (c)(3), (c)(5), and 
                        (e) of this section.
                          (iv) Section 15B.
                          (v) Section 15C.
                          (vi) Subsections (d), (e), (f), (g), 
                        (h), and (i) of section 17.
          (13) Registration exemption for merger and 
        acquisition brokers.--
                  (A) In general.--Except as provided in 
                subparagraph (B), an M&A broker shall be exempt 
                from registration under this section.
                  (B) Excluded activities.--An M&A broker is 
                not exempt from registration under this 
                paragraph if such broker does any of the 
                following:
                          (i) Directly or indirectly, in 
                        connection with the transfer of 
                        ownership of an eligible privately held 
                        company, receives, holds, transmits, or 
                        has custody of the funds or securities 
                        to be exchanged by the parties to the 
                        transaction.
                          (ii) Engages on behalf of an issuer 
                        in a public offering of any class of 
                        securities that is registered, or is 
                        required to be registered, with the 
                        Commission under section 12 or with 
                        respect to which the issuer files, or 
                        is required to file, periodic 
                        information, documents, and reports 
                        under subsection (d).
                          (iii) Engages on behalf of any party 
                        in a transaction involving a shell 
                        company, other than a business 
                        combination related shell company.
                          (iv) Directly, or indirectly through 
                        any of its affiliates, provides 
                        financing related to the transfer of 
                        ownership of an eligible privately held 
                        company.
                          (v) Assists any party to obtain 
                        financing from an unaffiliated third 
                        party without--
                                  (I) complying with all other 
                                applicable laws in connection 
                                with such assistance, 
                                including, if applicable, 
                                Regulation T (12 C.F.R. 220 et 
                                seq.); and
                                  (II) disclosing any 
                                compensation in writing to the 
                                party.
                          (vi) Represents both the buyer and 
                        the seller in the same transaction 
                        without providing clear written 
                        disclosure as to the parties the broker 
                        represents and obtaining written 
                        consent from both parties to the joint 
                        representation.
                          (vii) Facilitates a transaction with 
                        a group of buyers formed with the 
                        assistance of the M&A broker to acquire 
                        the eligible privately held company.
                          (viii) Engages in a transaction 
                        involving the transfer of ownership of 
                        an eligible privately held company to a 
                        passive buyer or group of passive 
                        buyers. For purposes of the preceding 
                        sentence, a buyer that is actively 
                        involved in managing the acquired 
                        company is not a passive buyer, 
                        regardless of whether such buyer is 
                        itself owned by passive beneficial 
                        owners.
                          (ix) Binds a party to a transfer of 
                        ownership of an eligible privately held 
                        company.
                  (C) Disqualifications.--An M&A broker is not 
                exempt from registration under this paragraph 
                if such broker is subject to--
                          (i) suspension or revocation of 
                        registration under paragraph (4);
                          (ii) a statutory disqualification 
                        described in section 3(a)(39);
                          (iii) a disqualification under the 
                        rules adopted by the Commission under 
                        section 926 of the Investor Protection 
                        and Securities Reform Act of 2010 (15 
                        U.S.C. 77d note); or
                          (iv) a final order described in 
                        paragraph (4)(H).
                  (D) Rule of construction.--Nothing in this 
                paragraph shall be construed to limit any other 
                authority of the Commission to exempt any 
                person, or any class of persons, from any 
                provision of this title, or from any provision 
                of any rule or regulation thereunder.
                  (E) Definitions.--In this paragraph:
                          (i) Business combination related 
                        shell company.--The term ``business 
                        combination related shell company'' 
                        means a shell company that is formed by 
                        an entity that is not a shell company--
                                  (I) solely for the purpose of 
                                changing the corporate domicile 
                                of that entity solely within 
                                the United States; or
                                  (II) solely for the purpose 
                                of completing a business 
                                combination transaction (as 
                                defined under section 
                                230.165(f) of title 17, Code of 
                                Federal Regulations) among one 
                                or more entities other than the 
                                company itself, none of which 
                                is a shell company.
                          (ii) Control.--The term ``control'' 
                        means the power, directly or 
                        indirectly, to direct the management or 
                        policies of a company, whether through 
                        ownership of securities, by contract, 
                        or otherwise. There is a presumption of 
                        control for any person who--
                                  (I) is a director, general 
                                partner, member or manager of a 
                                limited liability company, or 
                                corporate officer of a 
                                corporation or limited 
                                liability company, and 
                                exercises executive 
                                responsibility (or has similar 
                                status or functions);
                                  (II) has the right to vote 25 
                                percent or more of a class of 
                                voting securities or the power 
                                to sell or direct the sale of 
                                25 percent or more of a class 
                                of voting securities; or
                                  (III) in the case of a 
                                partnership or limited 
                                liability company, has the 
                                right to receive upon 
                                dissolution, or has 
                                contributed, 25 percent or more 
                                of the capital.
                          (iii) Eligible privately held 
                        company.--The term ``eligible privately 
                        held company'' means a privately held 
                        company that meets both of the 
                        following conditions:
                                  (I) The company does not have 
                                any class of securities 
                                registered, or required to be 
                                registered, with the Commission 
                                under section 12 or with 
                                respect to which the company 
                                files, or is required to file, 
                                periodic information, 
                                documents, and reports under 
                                subsection (d).
                                  (II) In the fiscal year 
                                ending immediately before the 
                                fiscal year in which the 
                                services of the M&A broker are 
                                initially engaged with respect 
                                to the securities transaction, 
                                the company meets either or 
                                both of the following 
                                conditions (determined in 
                                accordance with the historical 
                                financial accounting records of 
                                the company):
                                          (aa) The earnings of 
                                        the company before 
                                        interest, taxes, 
                                        depreciation, and 
                                        amortization are less 
                                        than $25,000,000.
                                          (bb) The gross 
                                        revenues of the company 
                                        are less than 
                                        $250,000,000.
                                For purposes of this subclause, 
                                the Commission may by rule 
                                modify the dollar figures if 
                                the Commission determines that 
                                such a modification is 
                                necessary or appropriate in the 
                                public interest or for the 
                                protection of investors.
                          (iv) M&A broker.--The term ``M&A 
                        broker'' means a broker, and any person 
                        associated with a broker, engaged in 
                        the business of effecting securities 
                        transactions solely in connection with 
                        the transfer of ownership of an 
                        eligible privately held company, 
                        regardless of whether the broker acts 
                        on behalf of a seller or buyer, through 
                        the purchase, sale, exchange, issuance, 
                        repurchase, or redemption of, or a 
                        business combination involving, 
                        securities or assets of the eligible 
                        privately held company, if the broker 
                        reasonably believes that--
                                  (I) upon consummation of the 
                                transaction, any person 
                                acquiring securities or assets 
                                of the eligible privately held 
                                company, acting alone or in 
                                concert, will control and, 
                                directly or indirectly, will be 
                                active in the management of the 
                                eligible privately held company 
                                or the business conducted with 
                                the assets of the eligible 
                                privately held company; and
                                  (II) if any person is offered 
                                securities in exchange for 
                                securities or assets of the 
                                eligible privately held 
                                company, such person will, 
                                prior to becoming legally bound 
                                to consummate the transaction, 
                                receive or have reasonable 
                                access to the most recent 
                                fiscal year-end financial 
                                statements of the issuer of the 
                                securities as customarily 
                                prepared by the management of 
                                the issuer in the normal course 
                                of operations and, if the 
                                financial statements of the 
                                issuer are audited, reviewed, 
                                or compiled, any related 
                                statement by the independent 
                                accountant, a balance sheet 
                                dated not more than 120 days 
                                before the date of the offer, 
                                and information pertaining to 
                                the management, business, 
                                results of operations for the 
                                period covered by the foregoing 
                                financial statements, and 
                                material loss contingencies of 
                                the issuer.
                          (v) Shell company.--The term ``shell 
                        company'' means a company that at the 
                        time of a transaction with an eligible 
                        privately held company--
                                  (I) has no or nominal 
                                operations; and
                                  (II) has--
                                          (aa) no or nominal 
                                        assets;
                                          (bb) assets 
                                        consisting solely of 
                                        cash and cash 
                                        equivalents; or
                                          (cc) assets 
                                        consisting of any 
                                        amount of cash and cash 
                                        equivalents and nominal 
                                        other assets.
                  (F) Inflation adjustment.--
                          (i) In general.--On the date that is 
                        5 years after the date of the enactment 
                        of the Small Business Mergers, 
                        Acquisitions, Sales, and Brokerage 
                        Simplification Act of 2018, and every 5 
                        years thereafter, each dollar amount in 
                        subparagraph (E)(ii)(II) shall be 
                        adjusted by--
                                  (I) dividing the annual value 
                                of the Employment Cost Index 
                                For Wages and Salaries, Private 
                                Industry Workers (or any 
                                successor index), as published 
                                by the Bureau of Labor 
                                Statistics, for the calendar 
                                year preceding the calendar 
                                year in which the adjustment is 
                                being made by the annual value 
                                of such index (or successor) 
                                for the calendar year ending 
                                December 31, 2012; and
                                  (II) multiplying such dollar 
                                amount by the quotient obtained 
                                under subclause (I).
                          (ii) Rounding.--Each dollar amount 
                        determined under clause (i) shall be 
                        rounded to the nearest multiple of 
                        $100,000.
  (c)(1)(A) No broker or dealer shall make use of the mails or 
any means or instrumentality of interstate commerce to effect 
any transaction in, or to induce or attempt to induce the 
purchase or sale of, any security (other than commercial paper, 
bankers' acceptances, or commercial bills), or any security-
based swap agreement by means of any manipulative, deceptive, 
or other fraudulent device or contrivance.
  (B) No broker, dealer, or municipal securities dealer shall 
make use of the mails or any means or instrumentality of 
interstate commerce to effect any transaction in, or to induce 
or attempt to induce the purchase or sale of, any municipal 
security or any security-based swap agreement involving a 
municipal security by means of any manipulative, deceptive, or 
other fraudulent device or contrivance.
  (C) No government securities broker or government securities 
dealer shall make use of the mails or any means or 
instrumentality of interstate commerce to effect any 
transaction in, or to induce or to attempt to induce the 
purchase or sale of, any government security or any security-
based swap agreement involving a government security by means 
of any manipulative, deceptive, or other fraudulent device or 
contrivance.
  (2)(A) No broker or dealer shall make use of the mails or any 
means or instrumentality of interstate commerce to effect any 
transaction in, or to induce or attempt to induce the purchase 
or sale of, any security (other than an exempted security or 
commercial paper, bankers' acceptances, or commercial bills) 
otherwise than on a national securities exchange of which it is 
a member, in connection with which such broker or dealer 
engages in any fraudulent, deceptive, or manipulative act or 
practice, or makes any fictitious quotation.
  (B) No broker, dealer, or municipal securities dealer shall 
make use of the mails or any means or instrumentality of 
interstate commerce to effect any transaction in, or to induce 
or attempt to induce the purchase or sale of, any municipal 
security in connection with which such broker, dealer, or 
municipal securities dealer engages in any fraudulent, 
deceptive, or manipulative act or practice, or makes any 
fictitious quotation.
  (C) No government securities broker or government securities 
dealer shall make use of the mails or any means or 
instrumentality of interstate commerce to effect any 
transaction in, or induce or attempt to induce the purchase or 
sale of, any government security in connection with which such 
government securities broker or government securities dealer 
engages in any fraudulent, deceptive, or manipulative act or 
practice, or makes any fictitious quotation.
  (D) The Commission shall, for the purposes of this paragraph, 
by rules and regulations define, and prescribe means reasonably 
designed to prevent, such acts and practices as are fraudulent, 
deceptive, or manipulative and such quotations as are 
fictitious.
  (E) The Commission shall, prior to adopting any rule or 
regulation under subparagraph (C), consult with and consider 
the views of the Secretary of the Treasury and each appropriate 
regulatory agency. If the Secretary of the Treasury or any 
appropriate regulatory agency comments in writing on a proposed 
rule or regulation of the Commission under such subparagraph 
(C) that has been published for comment, the Commission shall 
respond in writing to such written comment before adopting the 
proposed rule. If the Secretary of the Treasury determines, and 
notifies the Commission, that such rule or regulation, if 
implemented, would, or as applied does (i) adversely affect the 
liquidity or efficiency of the market for government 
securities; or (ii) impose any burden on competition not 
necessary or appropriate in furtherance of the purposes of this 
section, the Commission shall, prior to adopting the proposed 
rule or regulation, find that such rule or regulation is 
necessary and appropriate in furtherance of the purposes of 
this section notwithstanding the Secretary's determination.
  (3)(A) No broker or dealer (other than a government 
securities broker or government securities dealer, except a 
registered broker or dealer) shall make use of the mails or any 
means or instrumentality of interstate commerce to effect any 
transaction in, or to induce or attempt to induce the purchase 
or sale of, any security (other than an exempted security 
(except a government security) or commercial paper, bankers' 
acceptances, or commercial bills) in contravention of such 
rules and regulations as the Commission shall prescribe as 
necessary or appropriate in the public interest or for the 
protection of investors to provide safeguards with respect to 
the financial responsibility and related practices of brokers 
and dealers including, but not limited to, the acceptance of 
custody and use of customers' securities and the carrying and 
use of customers' deposits or credit balances. Such rules and 
regulations shall (A) require the maintenance of reserves with 
respect to customers' deposits or credit balances, and (B) no 
later than September 1, 1975, establish minimum financial 
responsibility requirements for all brokers and dealers.
  (B) Consistent with this title, the Commission, in 
consultation with the Commodity Futures Trading Commission, 
shall issue such rules, regulations, or orders as are necessary 
to avoid duplicative or conflicting regulations applicable to 
any broker or dealer registered with the Commission pursuant to 
section 15(b) (except paragraph (11) thereof), that is also 
registered with the Commodity Futures Trading Commission 
pursuant to section 4f(a) of the Commodity Exchange Act (except 
paragraph (2) thereof), with respect to the application of: (i) 
the provisions of section 8, section 15(c)(3), and section 17 
of this title and the rules and regulations thereunder related 
to the treatment of customer funds, securities, or property, 
maintenance of books and records, financial reporting, or other 
financial responsibility rules, involving security futures 
products; and (ii) similar provisions of the Commodity Exchange 
Act and rules and regulations thereunder involving security 
futures products.
          (C) Notwithstanding any provision of sections 
        2(a)(1)(C)(i) or 4d(a)(2) of the Commodity Exchange Act 
        and the rules and regulations thereunder, and pursuant 
        to an exemption granted by the Commission under section 
        36 of this title or pursuant to a rule or regulation, 
        cash and securities may be held by a broker or dealer 
        registered pursuant to subsection (b)(1) and also 
        registered as a futures commission merchant pursuant to 
        section 4f(a)(1) of the Commodity Exchange Act, in a 
        portfolio margining account carried as a futures 
        account subject to section 4d of the Commodity Exchange 
        Act and the rules and regulations thereunder, pursuant 
        to a portfolio margining program approved by the 
        Commodity Futures Trading Commission, and subject to 
        subchapter IV of chapter 7 of title 11 of the United 
        States Code and the rules and regulations thereunder. 
        The Commission shall consult with the Commodity Futures 
        Trading Commission to adopt rules to ensure that such 
        transactions and accounts are subject to comparable 
        requirements to the extent practicable for similar 
        products.
  (4) If the Commission finds, after notice and opportunity for 
a hearing, that any person subject to the provisions of section 
12, 13, 14, or subsection (d) of section 15 of this title or 
any rule or regulation thereunder has failed to comply with any 
such provision, rule, or regulation in any material respect, 
the Commission may publish its findings and issue an order 
requiring such person, and any person who was a cause of the 
failure to comply due to an act or omission the person knew or 
should have known would contribute to the failure to comply, to 
comply, or to take steps to effect compliance, with such 
provision or such rule or regulation thereunder upon such terms 
and conditions and within such time as the Commission may 
specify in such order.
  (5) No dealer (other than a specialist registered on a 
national securities exchange) acting in the capacity of market 
maker or otherwise shall make use of the mails or any means or 
instrumentality of interstate commerce to effect any 
transaction in, or to induce or attempt to induce the purchase 
or sale of, any security (other than an exempted security or a 
municipal security) in contravention of such specified and 
appropriate standards with respect to dealing as the 
Commission, by rule, shall prescribe as necessary or 
appropriate in the public interest and for the protection of 
investors, to maintain fair and orderly markets, or to remove 
impediments to and perfect the mechanism of a national market 
system. Under the rules of the Commission a dealer in a 
security may be prohibited from acting as broker in that 
security.
  (6) No broker or dealer shall make use of the mails or any 
means or instrumentality of interstate commerce to effect any 
transaction in, or to induce or attempt to induce the purchase 
or sale of, any security (other than an exempted security, 
municipal security, commercial paper, bankers' acceptances, or 
commercial bills) in contravention of such rules and 
regulations as the Commission shall prescribe as necessary or 
appropriate in the public interest and for the protection of 
investors or to perfect or remove impediments to a national 
system for the prompt and accurate clearance and settlement of 
securities transactions, with respect to the time and method 
of, and the form and format of documents used in connection 
with, making settlements of and payments for transactions in 
securities, making transfers and deliveries of securities, and 
closing accounts. Nothing in this paragraph shall be construed 
(A) to affect the authority of the Board of Governors of the 
Federal Reserve System, pursuant to section 7 of this title, to 
prescribe rules and regulations for the purpose of preventing 
the excessive use of credit for the purchase or carrying of 
securities, or (B) to authorize the Commission to prescribe 
rules or regulations for such purpose.
  (7) In connection with any bid for or purchase of a 
government security related to an offering of government 
securities by or on behalf of an issuer, no government 
securities broker, government securities dealer, or bidder for 
or purchaser of securities in such offering shall knowingly or 
willfully make any false or misleading written statement or 
omit any fact necessary to make any written statement made not 
misleading.
  (8) Prohibition of referral fees.--No broker or dealer, or 
person associated with a broker or dealer, may solicit or 
accept, directly or indirectly, remuneration for assisting an 
attorney in obtaining the representation of any person in any 
private action arising under this title or under the Securities 
Act of 1933.
  (d) Supplementary and Periodic Information.--
          (1) In general.--Each issuer which has filed a 
        registration statement containing an undertaking which 
        is or becomes operative under this subsection as in 
        effect prior to the date of enactment of the Securities 
        Acts Amendments of 1964, and each issuer which shall 
        after such date file a registration statement which has 
        become effective pursuant to the Securities Act of 
        1933, as amended, shall file with the Commission, 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, 
        such supplementary and periodic information, documents, 
        and reports as may be required pursuant to section 13 
        of this title in respect of a security registered 
        pursuant to section 12 of this title. The duty to file 
        under this subsection shall be automatically suspended 
        if and so long as any issue of securities of such 
        issuer is registered pursuant to section 12 of this 
        title. The duty to file under this subsection shall 
        also be automatically suspended as to any fiscal year, 
        other than the fiscal year within which such 
        registration statement became effective, if, at the 
        beginning of such fiscal year, the securities of each 
        class, other than any class of asset-backed securities, 
        to which the registration statement relates are held of 
        record by less than 300 persons, or, in the case of a 
        bank, a savings and loan holding company (as defined in 
        section 10 of the Home Owners' Loan Act), or a bank 
        holding company, as such term is defined in section 2 
        of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1841), 1,200 persons persons. For the purposes of this 
        subsection, the term ``class'' shall be construed to 
        include all securities of an issuer which are of 
        substantially similar character and the holders of 
        which enjoy substantially similar rights and 
        privileges. The Commission may, for the purpose of this 
        subsection, define by rules and regulations the term 
        ``held of record'' as it deems necessary or appropriate 
        in the public interest or for the protection of 
        investors in order to prevent circumvention of the 
        provisions of this subsection. Nothing in this 
        subsection shall apply to securities issued by a 
        foreign government or political subdivision thereof.
          (2) Asset-backed securities.--
                  (A) Suspension of duty to file.--The 
                Commission may, by rule or regulation, provide 
                for the suspension or termination of the duty 
                to file under this subsection for any class of 
                asset-backed security, on such terms and 
                conditions and for such period or periods as 
                the Commission deems necessary or appropriate 
                in the public interest or for the protection of 
                investors.
                  (B) Classification of issuers.--The 
                Commission may, for purposes of this 
                subsection, classify issuers and prescribe 
                requirements appropriate for each class of 
                issuers of asset-backed securities.
  (e) Notices to Customers Regarding Securities Lending.--Every 
registered broker or dealer shall provide notice to its 
customers that they may elect not to allow their fully paid 
securities to be used in connection with short sales. If a 
broker or dealer uses a customer's securities in connection 
with short sales, the broker or dealer shall provide notice to 
its customer that the broker or dealer may receive compensation 
in connection with lending the customer's securities. The 
Commission, by rule, as it deems necessary or appropriate in 
the public interest and for the protection of investors, may 
prescribe the form, content, time, and manner of delivery of 
any notice required under this paragraph.
  (f) The Commission, by rule, as it deems necessary or 
appropriate in the public interest and for the protection of 
investors or to assure equal regulation, may require any member 
of a national securities exchange not required to register 
under section 15 of this title and any person associated with 
any such member to comply with any provision of this title 
(other than section 15(a)) or the rules or regulations 
thereunder which by its terms regulates or prohibits any act, 
practice, or course of business by a ``broker or dealer'' or 
``registered broker or dealer'' or a ``person associated with a 
broker or dealer,'' respectively.
  (g) Every registered broker or dealer shall establish, 
maintain, and enforce written policies and procedures 
reasonably designed, taking into consideration the nature of 
such broker's or dealer's business, to prevent the misuse in 
violation of this title, or the rules or regulations 
thereunder, of material, nonpublic information by such broker 
or dealer or any person associated with such broker or dealer. 
The Commission, as it deems necessary or appropriate in the 
public interest or for the protection of investors, shall adopt 
rules or regulations to require specific policies or procedures 
reasonably designed to prevent misuse in violation of this 
title (or the rules or regulations thereunder) of material, 
nonpublic information.
  (h) Requirements for Transactions in Penny Stocks.--
          (1) In general.--No broker or dealer shall make use 
        of the mails or any means or instrumentality of 
        interstate commerce to effect any transaction in, or to 
        induce or attempt to induce the purchase or sale of, 
        any penny stock by any customer except in accordance 
        with the requirements of this subsection and the rules 
        and regulations prescribed under this subsection.
          (2) Risk disclosure with respect to penny stocks.--
        Prior to effecting any transaction in any penny stock, 
        a broker or dealer shall give the customer a risk 
        disclosure document that--
                  (A) contains a description of the nature and 
                level of risk in the market for penny stocks in 
                both public offerings and secondary trading;
                  (B) contains a description of the broker's or 
                dealer's duties to the customer and of the 
                rights and remedies available to the customer 
                with respect to violations of such duties or 
                other requirements of Federal securities laws;
                  (C) contains a brief, clear, narrative 
                description of a dealer market, including 
                ``bid'' and ``ask'' prices for penny stocks and 
                the significance of the spread between the bid 
                and ask prices;
                  (D) contains the toll free telephone number 
                for inquiries on disciplinary actions 
                established pursuant to section 15A(i) of this 
                title;
                  (E) defines significant terms used in the 
                disclosure document or in the conduct of 
                trading in penny stocks; and
                  (F) contains such other information, and is 
                in such form (including language, type size, 
                and format), as the Commission shall require by 
                rule or regulation.
          (3) Commission rules relating to disclosure.--The 
        Commission shall adopt rules setting forth additional 
        standards for the disclosure by brokers and dealers to 
        customers of information concerning transactions in 
        penny stocks. Such rules--
                  (A) shall require brokers and dealers to 
                disclose to each customer, prior to effecting 
                any transaction in, and at the time of 
                confirming any transaction with respect to any 
                penny stock, in accordance with such procedures 
                and methods as the Commission may require 
                consistent with the public interest and the 
                protection of investors--
                          (i) the bid and ask prices for penny 
                        stock, or such other information as the 
                        Commission may, by rule, require to 
                        provide customers with more useful and 
                        reliable information relating to the 
                        price of such stock;
                          (ii) the number of shares to which 
                        such bid and ask prices apply, or other 
                        comparable information relating to the 
                        depth and liquidity of the market for 
                        such stock; and
                          (iii) the amount and a description of 
                        any compensation that the broker or 
                        dealer and the associated person 
                        thereof will receive or has received in 
                        connection with such transaction;
                  (B) shall require brokers and dealers to 
                provide, to each customer whose account with 
                the broker or dealer contains penny stocks, a 
                monthly statement indicating the market value 
                of the penny stocks in that account or 
                indicating that the market value of such stock 
                cannot be determined because of the 
                unavailability of firm quotes; and
                  (C) may, as the Commission finds necessary or 
                appropriate in the public interest or for the 
                protection of investors, require brokers and 
                dealers to disclose to customers additional 
                information concerning transactions in penny 
                stocks.
          (4) Exemptions.--The Commission, as it determines 
        consistent with the public interest and the protection 
        of investors, may by rule, regulation, or order exempt 
        in whole or in part, conditionally or unconditionally, 
        any person or class of persons, or any transaction or 
        class of transactions, from the requirements of this 
        subsection. Such exemptions shall include an exemption 
        for brokers and dealers based on the minimal percentage 
        of the broker's or dealer's commissions, commission-
        equivalents, and markups received from transactions in 
        penny stocks.
          (5) Regulations.--It shall be unlawful for any person 
        to violate such rules and regulations as the Commission 
        shall prescribe in the public interest or for the 
        protection of investors or to maintain fair and orderly 
        markets--
                  (A) as necessary or appropriate to carry out 
                this subsection; or
                  (B) as reasonably designed to prevent 
                fraudulent, deceptive, or manipulative acts and 
                practices with respect to penny stocks.
  (i) Limitations on State Law.--
          (1) Capital, margin, books and records, bonding, and 
        reports.--No law, rule, regulation, or order, or other 
        administrative action of any State or political 
        subdivision thereof shall establish capital, custody, 
        margin, financial responsibility, making and keeping 
        records, bonding, or financial or operational reporting 
        requirements for brokers, dealers, municipal securities 
        dealers, government securities brokers, or government 
        securities dealers that differ from, or are in addition 
        to, the requirements in those areas established under 
        this title. The Commission shall consult periodically 
        the securities commissions (or any agency or office 
        performing like functions) of the States concerning the 
        adequacy of such requirements as established under this 
        title.
          (2) Funding portals.--
                  (A) Limitation on state laws.--Except as 
                provided in subparagraph (B), no State or 
                political subdivision thereof may enforce any 
                law, rule, regulation, or other administrative 
                action against a registered funding portal with 
                respect to its business as such.
                  (B) Examination and enforcement authority.--
                Subparagraph (A) does not apply with respect to 
                the examination and enforcement of any law, 
                rule, regulation, or administrative action of a 
                State or political subdivision thereof in which 
                the principal place of business of a registered 
                funding portal is located, provided that such 
                law, rule, regulation, or administrative action 
                is not in addition to or different from the 
                requirements for registered funding portals 
                established by the Commission.
                  (C) Definition.--For purposes of this 
                paragraph, the term ``State'' includes the 
                District of Columbia and the territories of the 
                United States.
          (3) De minimis transactions by associated persons.--
        No law, rule, regulation, or order, or other 
        administrative action of any State or political 
        subdivision thereof may prohibit an associated person 
        of a broker or dealer from effecting a transaction 
        described in paragraph (3) for a customer in such State 
        if--
                  (A) such associated person is not ineligible 
                to register with such State for any reason 
                other than such a transaction;
                  (B) such associated person is registered with 
                a registered securities association and at 
                least one State; and
                  (C) the broker or dealer with which such 
                person is associated is registered with such 
                State.
          (4) Described transactions.--
                  (A) In general.--A transaction is described 
                in this paragraph if--
                          (i) such transaction is effected--
                                  (I) on behalf of a customer 
                                that, for 30 days prior to the 
                                day of the transaction, 
                                maintained an account with the 
                                broker or dealer; and
                                  (II) by an associated person 
                                of the broker or dealer--
                                          (aa) to which the 
                                        customer was assigned 
                                        for 14 days prior to 
                                        the day of the 
                                        transaction; and
                                          (bb) who is 
                                        registered with a State 
                                        in which the customer 
                                        was a resident or was 
                                        present for at least 30 
                                        consecutive days during 
                                        the 1-year period prior 
                                        to the day of the 
                                        transaction; or
                          (ii) the transaction is effected--
                                  (I) on behalf of a customer 
                                that, for 30 days prior to the 
                                day of the transaction, 
                                maintained an account with the 
                                broker or dealer; and
                                  (II) during the period 
                                beginning on the date on which 
                                such associated person files an 
                                application for registration 
                                with the State in which the 
                                transaction is effected and 
                                ending on the earlier of--
                                          (aa) 60 days after 
                                        the date on which the 
                                        application is filed; 
                                        or
                                          (bb) the date on 
                                        which such State 
                                        notifies the associated 
                                        person that it has 
                                        denied the application 
                                        for registration or has 
                                        stayed the pendency of 
                                        the application for 
                                        cause.
                  (B) Rules of construction.--For purposes of 
                subparagraph (A)(i)(II)--
                          (i) each of up to 3 associated 
                        persons of a broker or dealer who are 
                        designated to effect transactions 
                        during the absence or unavailability of 
                        the principal associated person for a 
                        customer may be treated as an 
                        associated person to which such 
                        customer is assigned; and
                          (ii) if the customer is present in 
                        another State for 30 or more 
                        consecutive days or has permanently 
                        changed his or her residence to another 
                        State, a transaction is not described 
                        in this paragraph, unless the 
                        associated person of the broker or 
                        dealer files an application for 
                        registration with such State not later 
                        than 10 business days after the later 
                        of the date of the transaction, or the 
                        date of the discovery of the presence 
                        of the customer in the other State for 
                        30 or more consecutive days or the 
                        change in the customer's residence.
  (j) Rulemaking To Extend Requirements to New Hybrid 
Products.--
          (1) Consultation.--Prior to commencing a rulemaking 
        under this subsection, the Commission shall consult 
        with and seek the concurrence of the Board concerning 
        the imposition of broker or dealer registration 
        requirements with respect to any new hybrid product. In 
        developing and promulgating rules under this 
        subsection, the Commission shall consider the views of 
        the Board, including views with respect to the nature 
        of the new hybrid product; the history, purpose, 
        extent, and appropriateness of the regulation of the 
        new product under the Federal banking laws; and the 
        impact of the proposed rule on the banking industry.
          (2) Limitation.--The Commission shall not--
                  (A) require a bank to register as a broker or 
                dealer under this section because the bank 
                engages in any transaction in, or buys or 
                sells, a new hybrid product; or
                  (B) bring an action against a bank for a 
                failure to comply with a requirement described 
                in subparagraph (A),
        unless the Commission has imposed such requirement by 
        rule or regulation issued in accordance with this 
        section.
          (3) Criteria for rulemaking.--The Commission shall 
        not impose a requirement under paragraph (2) of this 
        subsection with respect to any new hybrid product 
        unless the Commission determines that--
                  (A) the new hybrid product is a security; and
                  (B) imposing such requirement is necessary 
                and appropriate in the public interest and for 
                the protection of investors.
          (4) Considerations.--In making a determination under 
        paragraph (3), the Commission shall consider--
                  (A) the nature of the new hybrid product; and
                  (B) the history, purpose, extent, and 
                appropriateness of the regulation of the new 
                hybrid product under the Federal securities 
                laws and under the Federal banking laws.
          (5) Objection to commission regulation.--
                  (A) Filing of petition for review.--The Board 
                may obtain review of any final regulation 
                described in paragraph (2) in the United States 
                Court of Appeals for the District of Columbia 
                Circuit by filing in such court, not later than 
                60 days after the date of publication of the 
                final regulation, a written petition requesting 
                that the regulation be set aside. Any 
                proceeding to challenge any such rule shall be 
                expedited by the Court of Appeals.
                  (B) Transmittal of petition and record.--A 
                copy of a petition described in subparagraph 
                (A) shall be transmitted as soon as possible by 
                the Clerk of the Court to an officer or 
                employee of the Commission designated for that 
                purpose. Upon receipt of the petition, the 
                Commission shall file with the court the 
                regulation under review and any documents 
                referred to therein, and any other relevant 
                materials prescribed by the court.
                  (C) Exclusive jurisdiction.--On the date of 
                the filing of the petition under subparagraph 
                (A), the court has jurisdiction, which becomes 
                exclusive on the filing of the materials set 
                forth in subparagraph (B), to affirm and 
                enforce or to set aside the regulation at 
                issue.
                  (D) Standard of review.--The court shall 
                determine to affirm and enforce or set aside a 
                regulation of the Commission under this 
                subsection, based on the determination of the 
                court as to whether--
                          (i) the subject product is a new 
                        hybrid product, as defined in this 
                        subsection;
                          (ii) the subject product is a 
                        security; and
                          (iii) imposing a requirement to 
                        register as a broker or dealer for 
                        banks engaging in transactions in such 
                        product is appropriate in light of the 
                        history, purpose, and extent of 
                        regulation under the Federal securities 
                        laws and under the Federal banking 
                        laws, giving deference neither to the 
                        views of the Commission nor the Board.
                  (E) Judicial stay.--The filing of a petition 
                by the Board pursuant to subparagraph (A) shall 
                operate as a judicial stay, until the date on 
                which the determination of the court is final 
                (including any appeal of such determination).
                  (F) Other authority to challenge.--Any 
                aggrieved party may seek judicial review of the 
                Commission's rulemaking under this subsection 
                pursuant to section 25 of this title.
          (6) Definitions.--For purposes of this subsection:
                  (A) New hybrid product.--The term ``new 
                hybrid product'' means a product that--
                          (i) was not subjected to regulation 
                        by the Commission as a security prior 
                        to the date of the enactment of the 
                        Gramm-Leach-Bliley Act;
                          (ii) is not an identified banking 
                        product as such term is defined in 
                        section 206 of such Act; and
                          (iii) is not an equity swap within 
                        the meaning of section 206(a)(6) of 
                        such Act.
                  (B) Board.--The term ``Board'' means the 
                Board of Governors of the Federal Reserve 
                System.
  (j) The authority of the Commission under this section with 
respect to security-based swap agreements shall be subject to 
the restrictions and limitations of section 3A(b) of this 
title.
  (k) Registration or Succession to a United States Broker or 
Dealer.--In determining whether to permit a foreign person or 
an affiliate of a foreign person to register as a United States 
broker or dealer, or succeed to the registration of a United 
States broker or dealer, the Commission may consider whether, 
for a foreign person, or an affiliate of a foreign person that 
presents a risk to the stability of the United States financial 
system, the home country of the foreign person has adopted, or 
made demonstrable progress toward adopting, an appropriate 
system of financial regulation to mitigate such risk.
  (l) Termination of a United States Broker or Dealer.--For a 
foreign person or an affiliate of a foreign person that 
presents such a risk to the stability of the United States 
financial system, the Commission may determine to terminate the 
registration of such foreign person or an affiliate of such 
foreign person as a broker or dealer in the United States, if 
the Commission determines that the home country of the foreign 
person has not adopted, or made demonstrable progress toward 
adopting, an appropriate system of financial regulation to 
mitigate such risk.
  (k) Standard of Conduct.--
          (1) In general.--Notwithstanding any other provision 
        of this Act or the Investment Advisers Act of 1940, the 
        Commission may promulgate rules to provide that, with 
        respect to a broker or dealer, when providing 
        personalized investment advice about securities to a 
        retail customer (and such other customers as the 
        Commission may by rule provide), the standard of 
        conduct for such broker or dealer with respect to such 
        customer shall be the same as the standard of conduct 
        applicable to an investment adviser under section 211 
        of the Investment Advisers Act of 1940. The receipt of 
        compensation based on commission or other standard 
        compensation for the sale of securities shall not, in 
        and of itself, be considered a violation of such 
        standard applied to a broker or dealer. Nothing in this 
        section shall require a broker or dealer or registered 
        representative to have a continuing duty of care or 
        loyalty to the customer after providing personalized 
        investment advice about securities.
          (2) Disclosure of range of products offered.--Where a 
        broker or dealer sells only proprietary or other 
        limited range of products, as determined by the 
        Commission, the Commission may by rule require that 
        such broker or dealer provide notice to each retail 
        customer and obtain the consent or acknowledgment of 
        the customer. The sale of only proprietary or other 
        limited range of products by a broker or dealer shall 
        not, in and of itself, be considered a violation of the 
        standard set forth in paragraph (1).
  (l) Other Matters.--The Commission shall--
          (1) facilitate the provision of simple and clear 
        disclosures to investors regarding the terms of their 
        relationships with brokers, dealers, and investment 
        advisers, including any material conflicts of interest; 
        and
          (2) examine and, where appropriate, promulgate rules 
        prohibiting or restricting certain sales practices, 
        conflicts of interest, and compensation schemes for 
        brokers, dealers, and investment advisers that the 
        Commission deems contrary to the public interest and 
        the protection of investors.
  (m) Harmonization of Enforcement.--The enforcement authority 
of the Commission with respect to violations of the standard of 
conduct applicable to a broker or dealer providing personalized 
investment advice about securities to a retail customer shall 
include--
          (1) the enforcement authority of the Commission with 
        respect to such violations provided under this Act; and
          (2) the enforcement authority of the Commission with 
        respect to violations of the standard of conduct 
        applicable to an investment adviser under the 
        Investment Advisers Act of 1940, including the 
        authority to impose sanctions for such violations, and
the Commission shall seek to prosecute and sanction violators 
of the standard of conduct applicable to a broker or dealer 
providing personalized investment advice about securities to a 
retail customer under this Act to same extent as the Commission 
prosecutes and sanctions violators of the standard of conduct 
applicable to an investment advisor under the Investment 
Advisers Act of 1940.
  (n) Disclosures to Retail Investors.--
          (1) In general.--Notwithstanding any other provision 
        of the securities laws, the Commission may issue rules 
        designating documents or information that shall be 
        provided by a broker or dealer to a retail investor 
        before the purchase of an investment product or service 
        by the retail investor.
          (2) Considerations.--In developing any rules under 
        paragraph (1), the Commission shall consider whether 
        the rules will promote investor protection, efficiency, 
        competition, and capital formation.
          (3) Form and contents of documents and information.--
        Any documents or information designated under a rule 
        promulgated under paragraph (1) shall--
                  (A) be in a summary format; and
                  (B) contain clear and concise information 
                about--
                          (i) investment objectives, 
                        strategies, costs, and risks; and
                          (ii) any compensation or other 
                        financial incentive received by a 
                        broker, dealer, or other intermediary 
                        in connection with the purchase of 
                        retail investment products.
  (o) Authority to Restrict Mandatory Pre-dispute 
Arbitration.--The Commission, by rule, may prohibit, or impose 
conditions or limitations on the use of, agreements that 
require customers or clients of any broker, dealer, or 
municipal securities dealer to arbitrate any future dispute 
between them arising under the Federal securities laws, the 
rules and regulations thereunder, or the rules of a self-
regulatory organization if it finds that such prohibition, 
imposition of conditions, or limitations are in the public 
interest and for the protection of investors.

           *       *       *       *       *       *       *

SEC. 15E. REGISTRATION OF NATIONALLY RECOGNIZED STATISTICAL RATING 
                    ORGANIZATIONS.

  (a) Registration Procedures.--
          (1) Application for registration.--
                  (A) In general.--A credit rating agency that 
                elects to be treated as a nationally recognized 
                statistical rating organization for purposes of 
                this title (in this section referred to as the 
                ``applicant''), shall furnish to the Commission 
                an application for registration, in such form 
                as the Commission shall require, by rule or 
                regulation issued in accordance with subsection 
                (n), and containing the information described 
                in subparagraph (B).
                  (B) Required information.--An application for 
                registration under this section shall contain 
                information regarding--
                          (i) credit ratings performance 
                        measurement statistics over short-term, 
                        mid-term, and long-term periods (as 
                        applicable) of the applicant;
                          (ii) the procedures and methodologies 
                        that the applicant uses in determining 
                        credit ratings;
                          (iii) policies or procedures adopted 
                        and implemented by the applicant to 
                        prevent the misuse, in violation of 
                        this title (or the rules and 
                        regulations hereunder), of material, 
                        nonpublic information;
                          (iv) the organizational structure of 
                        the applicant;
                          (v) whether or not the applicant has 
                        in effect a code of ethics, and if not, 
                        the reasons therefor;
                          (vi) any conflict of interest 
                        relating to the issuance of credit 
                        ratings by the applicant;
                          (vii) the categories described in any 
                        of clauses (i) through (v) of section 
                        3(a)(62)(B) with respect to which the 
                        applicant intends to apply for 
                        registration under this section;
                          (viii) on a confidential basis, a 
                        list of the 20 largest issuers and 
                        subscribers that use the credit rating 
                        services of the applicant, by amount of 
                        net revenues received therefrom in the 
                        fiscal year immediately preceding the 
                        date of submission of the application;
                          (ix) on a confidential basis, as to 
                        each applicable category of obligor 
                        described in any of clauses (i) through 
                        (v) of section 3(a)(62)(B), written 
                        certifications described in 
                        subparagraph (C), except as provided in 
                        subparagraph (D); and
                          (x) any other information and 
                        documents concerning the applicant and 
                        any person associated with such 
                        applicant as the Commission, by rule, 
                        may prescribe as necessary or 
                        appropriate in the public interest or 
                        for the protection of investors.
                  (C) Written certifications.--Written 
                certifications required by subparagraph 
                (B)(ix)--
                          (i) shall be provided from not fewer 
                        than 10 qualified institutional buyers, 
                        none of which is affiliated with the 
                        applicant;
                          (ii) may address more than one 
                        category of obligors described in any 
                        of clauses (i) through (v) of section 
                        3(a)(62)(B);
                          (iii) shall include not fewer than 2 
                        certifications for each such category 
                        of obligor; and
                          (iv) shall state that the qualified 
                        institutional buyer--
                                  (I) meets the definition of a 
                                qualified institutional buyer 
                                under section 3(a)(64); and
                                  (II) has used the credit 
                                ratings of the applicant for at 
                                least the 3 years immediately 
                                preceding the date of the 
                                certification in the subject 
                                category or categories of 
                                obligors.
                  (D) Exemption from certification 
                requirement.--A written certification under 
                subparagraph (B)(ix) is not required with 
                respect to any credit rating agency which has 
                received, or been the subject of, a no-action 
                letter from the staff of the Commission prior 
                to August 2, 2006, stating that such staff 
                would not recommend enforcement action against 
                any broker or dealer that considers credit 
                ratings issued by such credit rating agency to 
                be ratings from a nationally recognized 
                statistical rating organization.
                  (E) Limitation on liability of qualified 
                institutional buyers.--No qualified 
                institutional buyer shall be liable in any 
                private right of action for any opinion or 
                statement expressed in a certification made 
                pursuant to subparagraph (B)(ix).
          (2) Review of application.--
                  (A) Initial determination.--Not later than 90 
                days after the date on which the application 
                for registration is furnished to the Commission 
                under paragraph (1) (or within such longer 
                period as to which the applicant consents) the 
                Commission shall--
                          (i) by order, grant such registration 
                        for ratings in the subject category or 
                        categories of obligors, as described in 
                        clauses (i) through (v) of section 
                        3(a)(62)(B); or
                          (ii) institute proceedings to 
                        determine whether registration should 
                        be denied.
                  (B) Conduct of proceedings.--
                          (i) Content.--Proceedings referred to 
                        in subparagraph (A)(ii) shall--
                                  (I) include notice of the 
                                grounds for denial under 
                                consideration and an 
                                opportunity for hearing; and
                                  (II) be concluded not later 
                                than 120 days after the date on 
                                which the application for 
                                registration is furnished to 
                                the Commission under paragraph 
                                (1).
                          (ii) Determination.--At the 
                        conclusion of such proceedings, the 
                        Commission, by order, shall grant or 
                        deny such application for registration.
                          (iii) Extension authorized.--The 
                        Commission may extend the time for 
                        conclusion of such proceedings for not 
                        longer than 90 days, if it finds good 
                        cause for such extension and publishes 
                        its reasons for so finding, or for such 
                        longer period as to which the applicant 
                        consents.
                  (C) Grounds for decision.--The Commission 
                shall grant registration under this 
                subsection--
                          (i) if the Commission finds that the 
                        requirements of this section are 
                        satisfied; and
                          (ii) unless the Commission finds (in 
                        which case the Commission shall deny 
                        such registration) that--
                                  (I) the applicant does not 
                                have adequate financial and 
                                managerial resources to 
                                consistently produce credit 
                                ratings with integrity and to 
                                materially comply with the 
                                procedures and methodologies 
                                disclosed under paragraph 
                                (1)(B) and with subsections 
                                (g), (h), (i), and (j); or
                                  (II) if the applicant were so 
                                registered, its registration 
                                would be subject to suspension 
                                or revocation under subsection 
                                (d).
          (3) Public availability of information.--Subject to 
        section 24, the Commission shall, by rule, require a 
        nationally recognized statistical rating organization, 
        upon the granting of registration under this section, 
        to make the information and documents submitted to the 
        Commission in its completed application for 
        registration, or in any amendment submitted under 
        paragraph (1) or (2) of subsection (b), publicly 
        available on its website, or through another 
        comparable, readily accessible means, except as 
        provided in clauses (viii) and (ix) of paragraph 
        (1)(B).
  (b) Update of Registration.--
          (1) Update.--Each nationally recognized statistical 
        rating organization shall promptly amend its 
        application for registration under this section if any 
        information or document provided therein becomes 
        materially inaccurate, except that a nationally 
        recognized statistical rating organization is not 
        required to amend--
                  (A) the information required to be filed 
                under subsection (a)(1)(B)(i) by filing 
                information under this paragraph, but shall 
                amend such information in the annual submission 
                of the organization under paragraph (2) of this 
                subsection; or
                  (B) the certifications required to be 
                provided under subsection (a)(1)(B)(ix) by 
                filing information under this paragraph.
          (2) Certification.--Not later than 90 days after the 
        end of each calendar year, each nationally recognized 
        statistical rating organization shall file with the 
        Commission an amendment to its registration, in such 
        form as the Commission, by rule, may prescribe as 
        necessary or appropriate in the public interest or for 
        the protection of investors--
                  (A) certifying that the information and 
                documents in the application for registration 
                of such nationally recognized statistical 
                rating organization (other than the 
                certifications required under subsection 
                (a)(1)(B)(ix)) continue to be accurate; and
                  (B) listing any material change that occurred 
                to such information or documents during the 
                previous calendar year.
  (c) Accountability for Ratings Procedures.--
          (1) Authority.--The Commission shall have exclusive 
        authority to enforce the provisions of this section in 
        accordance with this title with respect to any 
        nationally recognized statistical rating organization, 
        if such nationally recognized statistical rating 
        organization issues credit ratings in material 
        contravention of those procedures relating to such 
        nationally recognized statistical rating organization, 
        including procedures relating to the prevention of 
        misuse of nonpublic information and conflicts of 
        interest, that such nationally recognized statistical 
        rating organization--
                  (A) includes in its application for 
                registration under subsection (a)(1)(B)(ii); or
                  (B) makes and disseminates in reports 
                pursuant to section 17(a) or the rules and 
                regulations thereunder.
          (2) Limitation.--The rules and regulations that the 
        Commission may prescribe pursuant to this title, as 
        they apply to nationally recognized statistical rating 
        organizations, shall be narrowly tailored to meet the 
        requirements of this title applicable to nationally 
        recognized statistical rating organizations. 
        Notwithstanding any other provision of this section, or 
        any other provision of law, neither the Commission nor 
        any State (or political subdivision thereof) may 
        regulate the substance of credit ratings or the 
        procedures and methodologies by which any nationally 
        recognized statistical rating organization determines 
        credit ratings. Nothing in this paragraph may be 
        construed to afford a defense against any action or 
        proceeding brought by the Commission to enforce the 
        antifraud provisions of the securities laws.
          (3) Internal controls over processes for determining 
        credit ratings.--
                  (A) In general.--Each nationally recognized 
                statistical rating organization shall 
                establish, maintain, enforce, and document an 
                effective internal control structure governing 
                the implementation of and adherence to 
                policies, procedures, and methodologies for 
                determining credit ratings, taking into 
                consideration such factors as the Commission 
                may prescribe, by rule.
                  (B) Attestation requirement.--The Commission 
                shall prescribe rules requiring each nationally 
                recognized statistical rating organization to 
                submit to the Commission an annual internal 
                controls report, which shall contain--
                          (i) a description of the 
                        responsibility of the management of the 
                        nationally recognized statistical 
                        rating organization in establishing and 
                        maintaining an effective internal 
                        control structure under subparagraph 
                        (A);
                          (ii) an assessment of the 
                        effectiveness of the internal control 
                        structure of the nationally recognized 
                        statistical rating organization; and
                          (iii) the attestation of the chief 
                        executive officer, or equivalent 
                        individual, of the nationally 
                        recognized statistical rating 
                        organization.
  (d) Censure, Denial, or Suspension of Registration; Notice 
and Hearing.--
          (1) In general.--The Commission, by order, shall 
        censure, place limitations on the activities, 
        functions, or operations of, suspend for a period not 
        exceeding 12 months, or revoke the registration of any 
        nationally recognized statistical rating organization, 
        or with respect to any person who is associated with, 
        who is seeking to become associated with, or, at the 
        time of the alleged misconduct, who was associated or 
        was seeking to become associated with a nationally 
        recognized statistical rating organization, the 
        Commission, by order, shall censure, place limitations 
        on the activities or functions of such person, suspend 
        for a period not exceeding 1 year, or bar such person 
        from being associated with a nationally recognized 
        statistical rating organization, if the Commission 
        finds, on the record after notice and opportunity for 
        hearing, that such censure, placing of limitations, 
        suspension, bar or revocation is necessary for the 
        protection of investors and in the public interest and 
        that such nationally recognized statistical rating 
        organization, or any person associated with such an 
        organization, whether prior to or subsequent to 
        becoming so associated--
                  (A) has committed or omitted any act, or is 
                subject to an order or finding, enumerated in 
                subparagraph (A), (D), (E), (H), or (G) of 
                section 15(b)(4), has been convicted of any 
                offense specified in section 15(b)(4)(B), or is 
                enjoined from any action, conduct, or practice 
                specified in subparagraph (C) of section 
                15(b)(4), during the 10-year period preceding 
                the date of commencement of the proceedings 
                under this subsection, or at any time 
                thereafter;
                  (B) has been convicted during the 10-year 
                period preceding the date on which an 
                application for registration is filed with the 
                Commission under this section, or at any time 
                thereafter, of--
                          (i) any crime that is punishable by 
                        imprisonment for 1 or more years, and 
                        that is not described in section 
                        15(b)(4)(B); or
                          (ii) a substantially equivalent crime 
                        by a foreign court of competent 
                        jurisdiction;
                  (C) is subject to any order of the Commission 
                barring or suspending the right of the person 
                to be associated with a nationally recognized 
                statistical rating organization;
                  (D) fails to file the certifications required 
                under subsection (b)(2);
                  (E) fails to maintain adequate financial and 
                managerial resources to consistently produce 
                credit ratings with integrity;
                  (F) has failed reasonably to supervise, with 
                a view to preventing a violation of the 
                securities laws, an individual who commits such 
                a violation, if the individual is subject to 
                the supervision of that person.
          (2) Suspension or revocation for particular class of 
        securities.--
                  (A) In general.--The Commission may 
                temporarily suspend or permanently revoke the 
                registration of a nationally recognized 
                statistical rating organization with respect to 
                a particular class or subclass of securities, 
                if the Commission finds, on the record after 
                notice and opportunity for hearing, that the 
                nationally recognized statistical rating 
                organization does not have adequate financial 
                and managerial resources to consistently 
                produce credit ratings with integrity.
                  (B) Considerations.--In making any 
                determination under subparagraph (A), the 
                Commission shall consider--
                          (i) whether the nationally recognized 
                        statistical rating organization has 
                        failed over a sustained period of time, 
                        as determined by the Commission, to 
                        produce ratings that are accurate for 
                        that class or subclass of securities; 
                        and
                          (ii) such other factors as the 
                        Commission may determine.
  (e) Termination of Registration.--
          (1) Voluntary withdrawal.--A nationally recognized 
        statistical rating organization may, upon such terms 
        and conditions as the Commission may establish as 
        necessary in the public interest or for the protection 
        of investors, withdraw from registration by furnishing 
        a written notice of withdrawal to the Commission.
          (2) Commission authority.--In addition to any other 
        authority of the Commission under this title, if the 
        Commission finds that a nationally recognized 
        statistical rating organization is no longer in 
        existence or has ceased to do business as a credit 
        rating agency, the Commission, by order, shall cancel 
        the registration under this section of such nationally 
        recognized statistical rating organization.
  (f) Representations.--
          (1) Ban on representations of sponsorship by united 
        states or agency thereof.--It shall be unlawful for any 
        nationally recognized statistical rating organization 
        to represent or imply in any manner whatsoever that 
        such nationally recognized statistical rating 
        organization has been designated, sponsored, 
        recommended, or approved, or that the abilities or 
        qualifications thereof have in any respect been passed 
        upon, by the United States or any agency, officer, or 
        employee thereof.
          (2) Ban on representation as nrsro of unregistered 
        credit rating agencies.--It shall be unlawful for any 
        credit rating agency that is not registered under this 
        section as a nationally recognized statistical rating 
        organization to state that such credit rating agency is 
        a nationally recognized statistical rating organization 
        registered under this title.
          (3) Statement of registration under securities 
        exchange act of 1934 provisions.--No provision of 
        paragraph (1) shall be construed to prohibit a 
        statement that a nationally recognized statistical 
        rating organization is a nationally recognized 
        statistical rating organization under this title, if 
        such statement is true in fact and if the effect of 
        such registration is not misrepresented.
  (g) Prevention of Misuse of Nonpublic Information.--
          (1) Organization policies and procedures.--Each 
        nationally recognized statistical rating organization 
        shall establish, maintain, and enforce written policies 
        and procedures reasonably designed, taking into 
        consideration the nature of the business of such 
        nationally recognized statistical rating organization, 
        to prevent the misuse in violation of this title, or 
        the rules or regulations hereunder, of material, 
        nonpublic information by such nationally recognized 
        statistical rating organization or any person 
        associated with such nationally recognized statistical 
        rating organization.
          (2) Commission authority.--The Commission shall issue 
        final rules in accordance with subsection (n) to 
        require specific policies or procedures that are 
        reasonably designed to prevent misuse in violation of 
        this title (or the rules or regulations hereunder) of 
        material, nonpublic information.
  (h) Management of Conflicts of Interest.--
          (1) Organization policies and procedures.--Each 
        nationally recognized statistical rating organization 
        shall establish, maintain, and enforce written policies 
        and procedures reasonably designed, taking into 
        consideration the nature of the business of such 
        nationally recognized statistical rating organization 
        and affiliated persons and affiliated companies 
        thereof, to address and manage any conflicts of 
        interest that can arise from such business.
          (2) Commission authority.--The Commission shall issue 
        final rules in accordance with subsection (n) to 
        prohibit, or require the management and disclosure of, 
        any conflicts of interest relating to the issuance of 
        credit ratings by a nationally recognized statistical 
        rating organization, including, without limitation, 
        conflicts of interest relating to--
                  (A) the manner in which a nationally 
                recognized statistical rating organization is 
                compensated by the obligor, or any affiliate of 
                the obligor, for issuing credit ratings or 
                providing related services;
                  (B) the provision of consulting, advisory, or 
                other services by a nationally recognized 
                statistical rating organization, or any person 
                associated with such nationally recognized 
                statistical rating organization, to the 
                obligor, or any affiliate of the obligor;
                  (C) business relationships, ownership 
                interests, or any other financial or personal 
                interests between a nationally recognized 
                statistical rating organization, or any person 
                associated with such nationally recognized 
                statistical rating organization, and the 
                obligor, or any affiliate of the obligor;
                  (D) any affiliation of a nationally 
                recognized statistical rating organization, or 
                any person associated with such nationally 
                recognized statistical rating organization, 
                with any person that underwrites the securities 
                or money market instruments that are the 
                subject of a credit rating; and
                  (E) any other potential conflict of interest, 
                as the Commission deems necessary or 
                appropriate in the public interest or for the 
                protection of investors.
          (3) Separation of ratings from sales and marketing.--
                  (A) Rules required.--The Commission shall 
                issue rules to prevent the sales and marketing 
                considerations of a nationally recognized 
                statistical rating organization from 
                influencing the production of ratings by the 
                nationally recognized statistical rating 
                organization.
                  (B) Contents of rules.--The rules issued 
                under subparagraph (A) shall provide for--
                          (i) exceptions for small nationally 
                        recognized statistical rating 
                        organizations with respect to which the 
                        Commission determines that the 
                        separation of the production of ratings 
                        and sales and marketing activities is 
                        not appropriate; and
                          (ii) suspension or revocation of the 
                        registration of a nationally recognized 
                        statistical rating organization, if the 
                        Commission finds, on the record, after 
                        notice and opportunity for a hearing, 
                        that--
                                  (I) the nationally recognized 
                                statistical rating organization 
                                has committed a violation of a 
                                rule issued under this 
                                subsection; and
                                  (II) the violation of a rule 
                                issued under this subsection 
                                affected a rating.
          (4) Look-back requirement.--
                  (A) Review by the nationally recognized 
                statistical rating organization.--Each 
                nationally recognized statistical rating 
                organization shall establish, maintain, and 
                enforce policies and procedures reasonably 
                designed to ensure that, in any case in which 
                an employee of a person subject to a credit 
                rating of the nationally recognized statistical 
                rating organization or the issuer, underwriter, 
                or sponsor of a security or money market 
                instrument subject to a credit rating of the 
                nationally recognized statistical rating 
                organization was employed by the nationally 
                recognized statistical rating organization and 
                participated in any capacity in determining 
                credit ratings for the person or the securities 
                or money market instruments during the 1-year 
                period preceding the date an action was taken 
                with respect to the credit rating, the 
                nationally recognized statistical rating 
                organization shall--
                          (i) conduct a review to determine 
                        whether any conflicts of interest of 
                        the employee influenced the credit 
                        rating; and
                          (ii) take action to revise the rating 
                        if appropriate, in accordance with such 
                        rules as the Commission shall 
                        prescribe.
                  (B) Review by commission.--
                          (i) In general.--The Commission shall 
                        conduct periodic reviews of the 
                        policies described in subparagraph (A) 
                        and the implementation of the policies 
                        at each nationally recognized 
                        statistical rating organization to 
                        ensure they are reasonably designed and 
                        implemented to most effectively 
                        eliminate conflicts of interest.
                          (ii) Timing of reviews.--The 
                        Commission shall review the code of 
                        ethics and conflict of interest policy 
                        of each nationally recognized 
                        statistical rating organization--
                                  (I) not less frequently than 
                                annually; and
                                  (II) whenever such policies 
                                are materially modified or 
                                amended.
          (5) Report to commission on certain employment 
        transitions.--
                  (A) Report required.--Each nationally 
                recognized statistical rating organization 
                shall report to the Commission any case such 
                organization knows or can reasonably be 
                expected to know where a person associated with 
                such organization within the previous 5 years 
                obtains employment with any obligor, issuer, 
                underwriter, or sponsor of a security or money 
                market instrument for which the organization 
                issued a credit rating during the 12-month 
                period prior to such employment, if such 
                employee--
                          (i) was a senior officer of such 
                        organization;
                          (ii) participated in any capacity in 
                        determining credit ratings for such 
                        obligor, issuer, underwriter, or 
                        sponsor; or
                          (iii) supervised an employee 
                        described in clause (ii).
                  (B) Public disclosure.--Upon receiving such a 
                report, the Commission shall make such 
                information publicly available.
  (i) Prohibited Conduct.--
          (1) Prohibited acts and practices.--The Commission 
        shall issue final rules in accordance with subsection 
        (n) to prohibit any act or practice relating to the 
        issuance of credit ratings by a nationally recognized 
        statistical rating organization that the Commission 
        determines to be unfair, coercive, or abusive, 
        including any act or practice relating to--
                  (A) conditioning or threatening to condition 
                the issuance of a credit rating on the purchase 
                by the obligor or an affiliate thereof of other 
                services or products, including pre-credit 
                rating assessment products, of the nationally 
                recognized statistical rating organization or 
                any person associated with such nationally 
                recognized statistical rating organization;
                  (B) lowering or threatening to lower a credit 
                rating on, or refusing to rate, securities or 
                money market instruments issued by an asset 
                pool or as part of any asset-backed or 
                mortgage-backed securities transaction, unless 
                a portion of the assets within such pool or 
                part of such transaction, as applicable, also 
                is rated by the nationally recognized 
                statistical rating organization; or
                  (C) modifying or threatening to modify a 
                credit rating or otherwise departing from its 
                adopted systematic procedures and methodologies 
                in determining credit ratings, based on whether 
                the obligor, or an affiliate of the obligor, 
                purchases or will purchase the credit rating or 
                any other service or product of the nationally 
                recognized statistical rating organization or 
                any person associated with such organization.
          (2) Rule of construction.--Nothing in paragraph (1), 
        or in any rules or regulations adopted thereunder, may 
        be construed to modify, impair, or supersede the 
        operation of any of the antitrust laws (as defined in 
        the first section of the Clayton Act, except that such 
        term includes section 5 of the Federal Trade Commission 
        Act, to the extent that such section 5 applies to 
        unfair methods of competition).
  (j) Designation of Compliance Officer.--
          (1) In general.--Each nationally recognized 
        statistical rating organization shall designate an 
        individual responsible for administering the policies 
        and procedures that are required to be established 
        pursuant to subsections (g) and (h), and for ensuring 
        compliance with the securities laws and the rules and 
        regulations thereunder, including those promulgated by 
        the Commission pursuant to this section.
          (2) Limitations.--
                  (A) In general.--Except as provided in 
                subparagraph (B), an individual designated 
                under paragraph (1) may not, while serving in 
                the designated capacity--
                          (i) perform credit ratings;
                          (ii) participate in the development 
                        of ratings methodologies or models;
                          (iii) perform marketing or sales 
                        functions; or
                          (iv) participate in establishing 
                        compensation levels, other than for 
                        employees working for that individual.
                  (B) Exception.--The Commission may exempt a 
                small nationally recognized statistical rating 
                organization from the limitations under this 
                paragraph, if the Commission finds that 
                compliance with such limitations would impose 
                an unreasonable burden on the nationally 
                recognized statistical rating organization.
          (3) Other duties.--Each individual designated under 
        paragraph (1) shall establish procedures for the 
        receipt, retention, and treatment of--
                  (A) complaints regarding credit ratings, 
                models, methodologies, and compliance with the 
                securities laws and the policies and procedures 
                developed under this section; and
                  (B) confidential, anonymous complaints by 
                employees or users of credit ratings.
          (4) Compensation.--The compensation of each 
        compliance officer appointed under paragraph (1) shall 
        not be linked to the financial performance of the 
        nationally recognized statistical rating organization 
        and shall be arranged so as to ensure the independence 
        of the officer's judgment.
          (5) Annual reports required.--
                  (A) Annual reports required.--Each individual 
                designated under paragraph (1) shall submit to 
                the nationally recognized statistical rating 
                organization an annual report on the compliance 
                of the nationally recognized statistical rating 
                organization with the securities laws and the 
                policies and procedures of the nationally 
                recognized statistical rating organization that 
                includes--
                          (i) a description of any material 
                        changes to the code of ethics and 
                        conflict of interest policies of the 
                        nationally recognized statistical 
                        rating organization; and
                          (ii) a certification that the report 
                        is accurate and complete.
                  (B) Submission of reports to the 
                commission.--Each nationally recognized 
                statistical rating organization shall file the 
                reports required under subparagraph (A) 
                together with the financial report that is 
                required to be submitted to the Commission 
                under this section.
  (k) Statements of Financial Condition.--Each nationally 
recognized statistical rating organization shall, on a 
confidential basis, file with the Commission, at intervals 
determined by the Commission, such financial statements, 
certified (if required by the rules or regulations of the 
Commission) by an independent public accountant, and 
information concerning its financial condition, as the 
Commission, by rule, may prescribe as necessary or appropriate 
in the public interest or for the protection of investors.
  (l) Sole Method of Registration.--
          (1) In general.--On and after the effective date of 
        this section, a credit rating agency may only be 
        registered as a nationally recognized statistical 
        rating organization for any purpose in accordance with 
        this section.
          (2) Prohibition on reliance on no-action relief.--On 
        and after the effective date of this section--
                  (A) an entity that, before that date, 
                received advice, approval, or a no-action 
                letter from the Commission or staff thereof to 
                be treated as a nationally recognized 
                statistical rating organization pursuant to the 
                Commission rule at section 240.15c3-1 of title 
                17, Code of Federal Regulations, may represent 
                itself or act as a nationally recognized 
                statistical rating organization only--
                          (i) during Commission consideration 
                        of the application, if such entity has 
                        filed an application for registration 
                        under this section; and
                          (ii) on and after the date of 
                        approval of its application for 
                        registration under this section; and
                  (B) the advice, approval, or no-action letter 
                described in subparagraph (A) shall be void.
          (3) Notice to other agencies.--Not later than 30 days 
        after the date of enactment of this section, the 
        Commission shall give notice of the actions undertaken 
        pursuant to this section to each Federal agency which 
        employs in its rules and regulations the term 
        ``nationally recognized statistical rating 
        organization'' (as that term is used under Commission 
        rule 15c3-1 (17 C.F.R. 240.15c3-1), as in effect on the 
        date of enactment of this section).
  (m) Accountability.--
          (1) In general.--The enforcement and penalty 
        provisions of this title shall apply to statements made 
        by a credit rating agency in the same manner and to the 
        same extent as such provisions apply to statements made 
        by a registered public accounting firm or a securities 
        analyst under the securities laws, and such statements 
        shall not be deemed forward-looking statements for the 
        purposes of section 21E.
          (2) Rulemaking.--The Commission shall issue such 
        rules as may be necessary to carry out this subsection.
  (n) Regulations.--
          (1) New provisions.--Such rules and regulations as 
        are required by this section or are otherwise necessary 
        to carry out this section, including the application 
        form required under subsection (a)--
                  (A) shall be issued by the Commission in 
                final form, not later than 270 days after the 
                date of enactment of this section; and
                  (B) shall become effective not later than 270 
                days after the date of enactment of this 
                section.
          (2) Review of existing regulations.--Not later than 
        270 days after the date of enactment of this section, 
        the Commission shall--
                  (A) review its existing rules and regulations 
                which employ the term ``nationally recognized 
                statistical rating organization'' or ``NRSRO''; 
                and
                  (B) amend or revise such rules and 
                regulations in accordance with the purposes of 
                this section, as the Commission may prescribe 
                as necessary or appropriate in the public 
                interest or for the protection of investors.
  (o) NRSROs Subject to Commission Authority.--
          (1) In general.--No provision of the laws of any 
        State or political subdivision thereof requiring the 
        registration, licensing, or qualification as a credit 
        rating agency or a nationally recognized statistical 
        rating organization shall apply to any nationally 
        recognized statistical rating organization or person 
        employed by or working under the control of a 
        nationally recognized statistical rating organization.
          (2) Limitation.--Nothing in this subsection prohibits 
        the securities commission (or any agency or office 
        performing like functions) of any State from 
        investigating and bringing an enforcement action with 
        respect to fraud or deceit against any nationally 
        recognized statistical rating organization or person 
        associated with a nationally recognized statistical 
        rating organization.
  (p) Regulation of Nationally Recognized Statistical Rating 
Organizations.--
          (1) Establishment of office of credit ratings.--
                  (A) Office established.--The Commission shall 
                establish within the Commission an Office of 
                Credit Ratings (referred to in this subsection 
                as the ``Office'') to administer the rules of 
                the Commission--
                          (i) with respect to the practices of 
                        nationally recognized statistical 
                        rating organizations in determining 
                        ratings, for the protection of users of 
                        credit ratings and in the public 
                        interest;
                          (ii) to promote accuracy in credit 
                        ratings issued by nationally recognized 
                        statistical rating organizations; and
                          (iii) to ensure that such ratings are 
                        not unduly influenced by conflicts of 
                        interest.
                  (B) Director of the office.--The head of the 
                Office shall be the Director, who shall report 
                to the Chairman.
          (2) Staffing.--The Office established under this 
        subsection shall be staffed sufficiently to carry out 
        fully the requirements of this section. The staff shall 
        include persons with knowledge of and expertise in 
        corporate, municipal, and structured debt finance.
          (3) Commission examinations.--
                  (A) Annual examinations required.--The Office 
                shall conduct an examination of each nationally 
                recognized statistical rating organization at 
                least annually.
                  (B) Conduct of examinations.--Each 
                examination under subparagraph (A) shall 
                include, as appropriate, a review of--
                          (i) whether the nationally recognized 
                        statistical rating organization 
                        conducts business in accordance with 
                        the policies, procedures, and rating 
                        methodologies of the nationally 
                        recognized statistical rating 
                        organization;
                          (ii) the management of conflicts of 
                        interest by the nationally recognized 
                        statistical rating organization;
                          (iii) implementation of ethics 
                        policies by the nationally recognized 
                        statistical rating organization;
                          (iv) the internal supervisory 
                        controls of the nationally recognized 
                        statistical rating organization;
                          (v) the governance of the nationally 
                        recognized statistical rating 
                        organization;
                          (vi) the activities of the individual 
                        designated by the nationally recognized 
                        statistical rating organization under 
                        subsection (j)(1);
                          (vii) the processing of complaints by 
                        the nationally recognized statistical 
                        rating organization; and
                          (viii) the policies of the nationally 
                        recognized statistical rating 
                        organization governing the post-
                        employment activities of former staff 
                        of the nationally recognized 
                        statistical rating organization.
                  (C) Inspection reports.--The Commission shall 
                make available to the public, in an easily 
                understandable format, an annual report 
                summarizing--
                          (i) the essential findings of all 
                        examinations conducted under 
                        subparagraph (A), as deemed appropriate 
                        by the Commission;
                          (ii) the responses by the nationally 
                        recognized statistical rating 
                        organizations to any material 
                        regulatory deficiencies identified by 
                        the Commission under clause (i); and
                          (iii) whether the nationally 
                        recognized statistical rating 
                        organizations have appropriately 
                        addressed the recommendations of the 
                        Commission contained in previous 
                        reports under this subparagraph.
          (4) Rulemaking authority.--The Commission shall--
                  (A) establish, by rule, fines, and other 
                penalties applicable to any nationally 
                recognized statistical rating organization that 
                violates the requirements of this section and 
                the rules thereunder; and
                  (B) issue such rules as may be necessary to 
                carry out this section.
  (q) Transparency of Ratings Performance.--
          (1) Rulemaking required.--The Commission shall, by 
        rule, require that each nationally recognized 
        statistical rating organization publicly disclose 
        information on the initial credit ratings determined by 
        the nationally recognized statistical rating 
        organization for each type of obligor, security, and 
        money market instrument, and any subsequent changes to 
        such credit ratings, for the purpose of allowing users 
        of credit ratings to evaluate the accuracy of ratings 
        and compare the performance of ratings by different 
        nationally recognized statistical rating organizations.
          (2) Content.--The rules of the Commission under this 
        subsection shall require, at a minimum, disclosures 
        that--
                  (A) are comparable among nationally 
                recognized statistical rating organizations, to 
                allow users of credit ratings to compare the 
                performance of credit ratings across nationally 
                recognized statistical rating organizations;
                  (B) are clear and informative for investors 
                having a wide range of sophistication who use 
                or might use credit ratings;
                  (C) include performance information over a 
                range of years and for a variety of types of 
                credit ratings, including for credit ratings 
                withdrawn by the nationally recognized 
                statistical rating organization;
                  (D) are published and made freely available 
                by the nationally recognized statistical rating 
                organization, on an easily accessible portion 
                of its website, and in writing, when requested;
                  (E) are appropriate to the business model of 
                a nationally recognized statistical rating 
                organization; and
                  (F) each nationally recognized statistical 
                rating organization include an attestation with 
                any credit rating it issues affirming that no 
                part of the rating was influenced by any other 
                business activities, that the rating was based 
                solely on the merits of the instruments being 
                rated, and that such rating was an independent 
                evaluation of the risks and merits of the 
                instrument.
  (r) Credit Ratings Methodologies.--The Commission shall 
prescribe rules, for the protection of investors and in the 
public interest, with respect to the procedures and 
methodologies, including qualitative and quantitative data and 
models, used by nationally recognized statistical rating 
organizations that require each nationally recognized 
statistical rating organization--
          (1) to ensure that credit ratings are determined 
        using procedures and methodologies, including 
        qualitative and quantitative data and models, that 
        are--
                  (A) approved by the board of the nationally 
                recognized statistical rating organization, a 
                body performing a function similar to that of a 
                board; and
                  (B) in accordance with the policies and 
                procedures of the nationally recognized 
                statistical rating organization for the 
                development and modification of credit rating 
                procedures and methodologies;
          (2) to ensure that when material changes to credit 
        rating procedures and methodologies (including changes 
        to qualitative and quantitative data and models) are 
        made, that--
                  (A) the changes are applied consistently to 
                all credit ratings to which the changed 
                procedures and methodologies apply;
                  (B) to the extent that changes are made to 
                credit rating surveillance procedures and 
                methodologies, the changes are applied to then-
                current credit ratings by the nationally 
                recognized statistical rating organization 
                within a reasonable time period determined by 
                the Commission, by rule; and
                  (C) the nationally recognized statistical 
                rating organization publicly discloses the 
                reason for the change; and
          (3) to notify users of credit ratings--
                  (A) of the version of a procedure or 
                methodology, including the qualitative 
                methodology or quantitative inputs, used with 
                respect to a particular credit rating;
                  (B) when a material change is made to a 
                procedure or methodology, including to a 
                qualitative model or quantitative inputs;
                  (C) when a significant error is identified in 
                a procedure or methodology, including a 
                qualitative or quantitative model, that may 
                result in credit rating actions; and
                  (D) of the likelihood of a material change 
                described in subparagraph (B) resulting in a 
                change in current credit ratings.
  (s) Transparency of Credit Rating Methodologies and 
Information Reviewed.--
          (1) Form for disclosures.--The Commission shall 
        require, by rule, each nationally recognized 
        statistical rating organization to prescribe a form to 
        accompany the publication of each credit rating that 
        discloses--
                  (A) information relating to--
                          (i) the assumptions underlying the 
                        credit rating procedures and 
                        methodologies;
                          (ii) the data that was relied on to 
                        determine the credit rating; and
                          (iii) if applicable, how the 
                        nationally recognized statistical 
                        rating organization used servicer or 
                        remittance reports, and with what 
                        frequency, to conduct surveillance of 
                        the credit rating; and
                  (B) information that can be used by investors 
                and other users of credit ratings to better 
                understand credit ratings in each class of 
                credit rating issued by the nationally 
                recognized statistical rating organization.
          (2) Format.--The form developed under paragraph (1) 
        shall--
                  (A) be easy to use and helpful for users of 
                credit ratings to understand the information 
                contained in the report;
                  (B) require the nationally recognized 
                statistical rating organization to provide the 
                content described in paragraph (3)(B) in a 
                manner that is directly comparable across types 
                of securities; and
                  (C) be made readily available to users of 
                credit ratings, in electronic or paper form, as 
                the Commission may, by rule, determine.
          (3) Content of form.--
                  (A) Qualitative content.--Each nationally 
                recognized statistical rating organization 
                shall disclose on the form developed under 
                paragraph (1)--
                          (i) the credit ratings produced by 
                        the nationally recognized statistical 
                        rating organization;
                          (ii) the main assumptions and 
                        principles used in constructing 
                        procedures and methodologies, including 
                        qualitative methodologies and 
                        quantitative inputs and assumptions 
                        about the correlation of defaults 
                        across underlying assets used in rating 
                        structured products;
                          (iii) the potential limitations of 
                        the credit ratings, and the types of 
                        risks excluded from the credit ratings 
                        that the nationally recognized 
                        statistical rating organization does 
                        not comment on, including liquidity, 
                        market, and other risks;
                          (iv) information on the uncertainty 
                        of the credit rating, including--
                                  (I) information on the 
                                reliability, accuracy, and 
                                quality of the data relied on 
                                in determining the credit 
                                rating; and
                                  (II) a statement relating to 
                                the extent to which data 
                                essential to the determination 
                                of the credit rating were 
                                reliable or limited, 
                                including--
                                          (aa) any limits on 
                                        the scope of historical 
                                        data; and
                                          (bb) any limits in 
                                        accessibility to 
                                        certain documents or 
                                        other types of 
                                        information that would 
                                        have better informed 
                                        the credit rating;
                          (v) whether and to what extent third 
                        party due diligence services have been 
                        used by the nationally recognized 
                        statistical rating organization, a 
                        description of the information that 
                        such third party reviewed in conducting 
                        due diligence services, and a 
                        description of the findings or 
                        conclusions of such third party;
                          (vi) a description of the data about 
                        any obligor, issuer, security, or money 
                        market instrument that were relied upon 
                        for the purpose of determining the 
                        credit rating;
                          (vii) a statement containing an 
                        overall assessment of the quality of 
                        information available and considered in 
                        producing a rating for an obligor, 
                        security, or money market instrument, 
                        in relation to the quality of 
                        information available to the nationally 
                        recognized statistical rating 
                        organization in rating similar 
                        issuances;
                          (viii) information relating to 
                        conflicts of interest of the nationally 
                        recognized statistical rating 
                        organization; and
                          (ix) such additional information as 
                        the Commission may require.
                  (B) Quantitative content.--Each nationally 
                recognized statistical rating organization 
                shall disclose on the form developed under this 
                subsection--
                          (i) an explanation or measure of the 
                        potential volatility of the credit 
                        rating, including--
                                  (I) any factors that might 
                                lead to a change in the credit 
                                ratings; and
                                  (II) the magnitude of the 
                                change that a user can expect 
                                under different market 
                                conditions;
                          (ii) information on the content of 
                        the rating, including--
                                  (I) the historical 
                                performance of the rating; and
                                  (II) the expected probability 
                                of default and the expected 
                                loss in the event of default;
                          (iii) information on the sensitivity 
                        of the rating to assumptions made by 
                        the nationally recognized statistical 
                        rating organization, including--
                                  (I) 5 assumptions made in the 
                                ratings process that, without 
                                accounting for any other 
                                factor, would have the greatest 
                                impact on a rating if the 
                                assumptions were proven false 
                                or inaccurate; and
                                  (II) an analysis, using 
                                specific examples, of how each 
                                of the 5 assumptions identified 
                                under subclause (I) impacts a 
                                rating;
                          (iv) such additional information as 
                        may be required by the Commission.
          (4) Due diligence services for asset-backed 
        securities.--
                  (A) Findings.--The issuer or underwriter of 
                any asset-backed security shall make publicly 
                available the findings and conclusions of any 
                third-party due diligence report obtained by 
                the issuer or underwriter.
                  (B) Certification required.--In any case in 
                which third-party due diligence services are 
                employed by a nationally recognized statistical 
                rating organization, an issuer, or an 
                underwriter, the person providing the due 
                diligence services shall provide to any 
                nationally recognized statistical rating 
                organization that produces a rating to which 
                such services relate, written certification, as 
                provided in subparagraph (C).
                  (C) Format and content.--The Commission shall 
                establish the appropriate format and content 
                for the written certifications required under 
                subparagraph (B), to ensure that providers of 
                due diligence services have conducted a 
                thorough review of data, documentation, and 
                other relevant information necessary for a 
                nationally recognized statistical rating 
                organization to provide an accurate rating.
                  (D) Disclosure of certification.--The 
                Commission shall adopt rules requiring a 
                nationally recognized statistical rating 
                organization, at the time at which the 
                nationally recognized statistical rating 
                organization produces a rating, to disclose the 
                certification described in subparagraph (B) to 
                the public in a manner that allows the public 
                to determine the adequacy and level of due 
                diligence services provided by a third party.
  (t) Corporate Governance, Organization, and Management of 
Conflicts of Interest.--
          (1) Board of directors.--Each nationally recognized 
        statistical rating organization shall have a board of 
        directors.
          (2) Independent directors.--
                  (A) In general.--At least \1/2\ of the board 
                of directors, but not fewer than 2 of the 
                members thereof, shall be independent of the 
                nationally recognized statistical rating 
                agency. A portion of the independent directors 
                shall include users of ratings from a 
                nationally recognized statistical rating 
                organization.
                  (B) Independence determination.--In order to 
                be considered independent for purposes of this 
                subsection, a member of the board of directors 
                of a nationally recognized statistical rating 
                organization--
                          (i) may not, other than in his or her 
                        capacity as a member of the board of 
                        directors or any committee thereof--
                                  (I) accept any consulting, 
                                advisory, or other compensatory 
                                fee from the nationally 
                                recognized statistical rating 
                                organization; or
                                  (II) be a person associated 
                                with the nationally recognized 
                                statistical rating organization 
                                or with any affiliated company 
                                thereof; and
                          (ii) shall be disqualified from any 
                        deliberation involving a specific 
                        rating in which the independent board 
                        member has a financial interest in the 
                        outcome of the rating.
                  (C) Compensation and term.--The compensation 
                of the independent members of the board of 
                directors of a nationally recognized 
                statistical rating organization shall not be 
                linked to the business performance of the 
                nationally recognized statistical rating 
                organization, and shall be arranged so as to 
                ensure the independence of their judgment. The 
                term of office of the independent directors 
                shall be for a pre-agreed fixed period, not to 
                exceed 5 years, and shall not be renewable.
          (3) Duties of board of directors.--In addition to the 
        overall responsibilities of the board of directors, the 
        board shall oversee--
                  (A) the establishment, maintenance, and 
                enforcement of policies and procedures for 
                determining credit ratings;
                  (B) the establishment, maintenance, and 
                enforcement of policies and procedures to 
                address, manage, and disclose any conflicts of 
                interest;
                  (C) the effectiveness of the internal control 
                system with respect to policies and procedures 
                for determining credit ratings; and
                  (D) the compensation and promotion policies 
                and practices of the nationally recognized 
                statistical rating organization.
          (4) Treatment of nrsro subsidiaries.--If a nationally 
        recognized statistical rating organization is a 
        subsidiary of a parent entity, the board of the 
        directors of the parent entity may satisfy the 
        requirements of this subsection by assigning to a 
        committee of such board of directors the duties under 
        paragraph (3), if--
                  (A) at least \1/2\ of the members of the 
                committee (including the chairperson of the 
                committee) are independent, as defined in this 
                section; and
                  (B) at least 1 member of the committee is a 
                user of ratings from a nationally recognized 
                statistical rating organization.
          (5) Exception authority.--If the Commission finds 
        that compliance with the provisions of this subsection 
        present an unreasonable burden on a small nationally 
        recognized statistical rating organization, the 
        Commission may permit the nationally recognized 
        statistical rating organization to delegate such 
        responsibilities to a committee that includes at least 
        one individual who is a user of ratings of a nationally 
        recognized statistical rating organization.
  (u) Duty To Report Tips Alleging Material Violations of 
Law.--
          (1) Duty to report.--Each nationally recognized 
        statistical rating organization shall refer to the 
        appropriate law enforcement or regulatory authorities 
        any information that the nationally recognized 
        statistical rating organization receives from a third 
        party and finds credible that alleges that an issuer of 
        securities rated by the nationally recognized 
        statistical rating organization has committed or is 
        committing a material violation of law that has not 
        been adjudicated by a Federal or State court.
          (2) Rule of construction.--Nothing in paragraph (1) 
        may be construed to require a nationally recognized 
        statistical rating organization to verify the accuracy 
        of the information described in paragraph (1).
  (v) Information From Sources Other Than the Issuer.--In 
producing a credit rating, a nationally recognized statistical 
rating organization shall consider information about an issuer 
that the nationally recognized statistical rating organization 
has, or receives from a source other than the issuer or 
underwriter, that the nationally recognized statistical rating 
organization finds credible and potentially significant to a 
rating decision.

SEC. 15F. REGISTRATION AND REGULATION OF SECURITY-BASED SWAP DEALERS 
                    AND MAJOR SECURITY-BASED SWAP PARTICIPANTS.

  (a) Registration.--
          (1) Security-based swap dealers.--It shall be 
        unlawful for any person to act as a security-based swap 
        dealer unless the person is registered as a security-
        based swap dealer with the Commission.
          (2) Major security-based swap participants.--It shall 
        be unlawful for any person to act as a major security-
        based swap participant unless the person is registered 
        as a major security-based swap participant with the 
        Commission.
  (b) Requirements.--
          (1) In general.--A person shall register as a 
        security-based swap dealer or major security-based swap 
        participant by filing a registration application with 
        the Commission.
          (2) Contents.--
                  (A) In general.--The application shall be 
                made in such form and manner as prescribed by 
                the Commission, and shall contain such 
                information, as the Commission considers 
                necessary concerning the business in which the 
                applicant is or will be engaged.
                  (B) Continual reporting.--A person that is 
                registered as a security-based swap dealer or 
                major security-based swap participant shall 
                continue to submit to the Commission reports 
                that contain such information pertaining to the 
                business of the person as the Commission may 
                require.
          (3) Expiration.--Each registration under this section 
        shall expire at such time as the Commission may 
        prescribe by rule or regulation.
          (4) Rules.--Except as provided in subsections (d) and 
        (e), the Commission may prescribe rules applicable to 
        security-based swap dealers and major security-based 
        swap participants, including rules that limit the 
        activities of non-bank security-based swap dealers and 
        major security-based swap participants.
          (5) Transition.--Not later than 1 year after the date 
        of enactment of the Wall Street Transparency and 
        Accountability Act of 2010, the Commission shall issue 
        rules under this section to provide for the 
        registration of security-based swap dealers and major 
        security-based swap participants.
          (6) Statutory disqualification.--Except to the extent 
        otherwise specifically provided by rule, regulation, or 
        order of the Commission, it shall be unlawful for a 
        security-based swap dealer or a major security-based 
        swap participant to permit any person associated with a 
        security-based swap dealer or a major security-based 
        swap participant who is subject to a statutory 
        disqualification to effect or be involved in effecting 
        security-based swaps on behalf of the security-based 
        swap dealer or major security-based swap participant, 
        if the security-based swap dealer or major security-
        based swap participant knew, or in the exercise of 
        reasonable care should have known, of the statutory 
        disqualification.
  (c) Dual Registration.--
          (1) Security-based swap dealer.--Any person that is 
        required to be registered as a security-based swap 
        dealer under this section shall register with the 
        Commission, regardless of whether the person also is 
        registered with the Commodity Futures Trading 
        Commission as a swap dealer.
          (2) Major security-based swap participant.--Any 
        person that is required to be registered as a major 
        security-based swap participant under this section 
        shall register with the Commission, regardless of 
        whether the person also is registered with the 
        Commodity Futures Trading Commission as a major swap 
        participant.
  (d) Rulemaking.--
          (1) In general.--The Commission shall adopt rules for 
        persons that are registered as security-based swap 
        dealers or major security-based swap participants under 
        this section.
          (2) Exception for prudential requirements.--
                  (A) In general.--The Commission may not 
                prescribe rules imposing prudential 
                requirements on security-based swap dealers or 
                major security-based swap participants for 
                which there is a prudential regulator.
                  (B) Applicability.--Subparagraph (A) does not 
                limit the authority of the Commission to 
                prescribe rules as directed under this section.
  (e) Capital and Margin Requirements.--
          (1) In general.--
                  (A) Security-based swap dealers and major 
                security-based swap participants that are 
                banks.--Each registered security-based swap 
                dealer and major security-based swap 
                participant for which there is not a prudential 
                regulator shall meet such minimum capital 
                requirements and minimum initial and variation 
                margin requirements as the prudential regulator 
                shall by rule or regulation prescribe under 
                paragraph (2)(A).
                  (B) Security-based swap dealers and major 
                security-based swap participants that are not 
                banks.--Each registered security-based swap 
                dealer and major security-based swap 
                participant for which there is not a prudential 
                regulator shall meet such minimum capital 
                requirements and minimum initial and variation 
                margin requirements as the Commission shall by 
                rule or regulation prescribe under paragraph 
                (2)(B).
          (2) Rules.--
                  (A) Security-based swap dealers and major 
                security-based swap participants that are 
                banks.--The prudential regulators, in 
                consultation with the Commission and the 
                Commodity Futures Trading Commission, shall 
                adopt rules for security-based swap dealers and 
                major security-based swap participants, with 
                respect to their activities as a swap dealer or 
                major swap participant, for which there is a 
                prudential regulator imposing--
                          (i) capital requirements; and
                          (ii) both initial and variation 
                        margin requirements on all security-
                        based swaps that are not cleared by a 
                        registered clearing agency.
                  (B) Security-based swap dealers and major 
                security-based swap participants that are not 
                banks.--The Commission shall adopt rules for 
                security-based swap dealers and major security-
                based swap participants, with respect to their 
                activities as a swap dealer or major swap 
                participant, for which there is not a 
                prudential regulator imposing--
                          (i) capital requirements; and
                          (ii) both initial and variation 
                        margin requirements on all swaps that 
                        are not cleared by a registered 
                        clearing agency.
                  (C) Capital.--In setting capital requirements 
                for a person that is designated as a security-
                based swap dealer or a major security-based 
                swap participant for a single type or single 
                class or category of security-based swap or 
                activities, the prudential regulator and the 
                Commission shall take into account the risks 
                associated with other types of security-based 
                swaps or classes of security-based swaps or 
                categories of security-based swaps engaged in 
                and the other activities conducted by that 
                person that are not otherwise subject to 
                regulation applicable to that person by virtue 
                of the status of the person.
          (3) Standards for capital and margin.--
                  (A) In general.--To offset the greater risk 
                to the security-based swap dealer or major 
                security-based swap participant and the 
                financial system arising from the use of 
                security-based swaps that are not cleared, the 
                requirements imposed under paragraph (2) shall 
                --
                          (i) help ensure the safety and 
                        soundness of the security-based swap 
                        dealer or major security-based swap 
                        participant; and
                          (ii) be appropriate for the risk 
                        associated with the non-cleared 
                        security-based swaps held as a 
                        security-based swap dealer or major 
                        security-based swap participant.
                  (B) Rule of construction.--
                          (i) In general.--Nothing in this 
                        section shall limit, or be construed to 
                        limit, the authority--
                                  (I) of the Commission to set 
                                financial responsibility rules 
                                for a broker or dealer 
                                registered pursuant to section 
                                15(b) (except for section 
                                15(b)(11) thereof) in 
                                accordance with section 
                                15(c)(3); or
                                  (II) of the Commodity Futures 
                                Trading Commission to set 
                                financial responsibility rules 
                                for a futures commission 
                                merchant or introducing broker 
                                registered pursuant to section 
                                4f(a) of the Commodity Exchange 
                                Act (except for section 
                                4f(a)(3) thereof) in accordance 
                                with section 4f(b) of the 
                                Commodity Exchange Act.
                          (ii) Futures commission merchants and 
                        other dealers.--A futures commission 
                        merchant, introducing broker, broker, 
                        or dealer shall maintain sufficient 
                        capital to comply with the stricter of 
                        any applicable capital requirements to 
                        which such futures commission merchant, 
                        introducing broker, broker, or dealer 
                        is subject to under this title or the 
                        Commodity Exchange Act.
                  (C) Margin requirements.--In prescribing 
                margin requirements under this subsection, the 
                prudential regulator with respect to security-
                based swap dealers and major security-based 
                swap participants that are depository 
                institutions, and the Commission with respect 
                to security-based swap dealers and major 
                security-based swap participants that are not 
                depository institutions shall permit the use of 
                noncash collateral, as the regulator or the 
                Commission determines to be consistent with--
                          (i) preserving the financial 
                        integrity of markets trading security-
                        based swaps; and
                          (ii) preserving the stability of the 
                        United States financial system.
                  (D) Comparability of capital and margin 
                requirements.--
                          (i) In general.--The prudential 
                        regulators, the Commission, and the 
                        Securities and Exchange Commission 
                        shall periodically (but not less 
                        frequently than annually) consult on 
                        minimum capital requirements and 
                        minimum initial and variation margin 
                        requirements.
                          (ii) Comparability.--The entities 
                        described in clause (i) shall, to the 
                        maximum extent practicable, establish 
                        and maintain comparable minimum capital 
                        requirements and minimum initial and 
                        variation margin requirements, 
                        including the use of noncash 
                        collateral, for--
                                  (I) security-based swap 
                                dealers; and
                                  (II) major security-based 
                                swap participants.
          (4) Applicability with respect to counterparties.--
        [The requirements]
                  (A) In general._The requirements  of 
                paragraphs (2)(A)(ii) and (2)(B)(ii) shall not 
                apply to a security-based swap in which a 
                counterparty qualifies for an exception under 
                section 3C(g)(1) or satisfies the criteria in 
                section 3C(g)(4).
                  (B) Initial margin requirement.--The initial 
                margin requirements imposed by rules adopted 
                pursuant to paragraphs (2)(A)(ii) and 
                (2)(B)(ii) shall not apply to any security-
                based swap in which--
                          (i) one counterparty is a person in 
                        which the other counterparty, directly 
                        or indirectly, holds a majority 
                        ownership interest; or
                          (ii) a third party, directly or 
                        indirectly, holds a majority ownership 
                        interest in both counterparties.
  (f) Reporting and Recordkeeping.--
          (1) In general.--Each registered security-based swap 
        dealer and major security-based swap participant--
                  (A) shall make such reports as are required 
                by the Commission, by rule or regulation, 
                regarding the transactions and positions and 
                financial condition of the registered security-
                based swap dealer or major security-based swap 
                participant;
                  (B)(i) for which there is a prudential 
                regulator, shall keep books and records of all 
                activities related to the business as a 
                security-based swap dealer or major security-
                based swap participant in such form and manner 
                and for such period as may be prescribed by the 
                Commission by rule or regulation; and
                  (ii) for which there is no prudential 
                regulator, shall keep books and records in such 
                form and manner and for such period as may be 
                prescribed by the Commission by rule or 
                regulation; and
                  (C) shall keep books and records described in 
                subparagraph (B) open to inspection and 
                examination by any representative of the 
                Commission.
          (2) Rules.--The Commission shall adopt rules 
        governing reporting and recordkeeping for security-
        based swap dealers and major security-based swap 
        participants.
  (g) Daily Trading Records.--
          (1) In general.--Each registered security-based swap 
        dealer and major security-based swap participant shall 
        maintain daily trading records of the security-based 
        swaps of the registered security-based swap dealer and 
        major security-based swap participant and all related 
        records (including related cash or forward 
        transactions) and recorded communications, including 
        electronic mail, instant messages, and recordings of 
        telephone calls, for such period as may be required by 
        the Commission by rule or regulation.
          (2) Information requirements.--The daily trading 
        records shall include such information as the 
        Commission shall require by rule or regulation.
          (3) Counterparty records.--Each registered security-
        based swap dealer and major security-based swap 
        participant shall maintain daily trading records for 
        each counterparty in a manner and form that is 
        identifiable with each security-based swap transaction.
          (4) Audit trail.--Each registered security-based swap 
        dealer and major security-based swap participant shall 
        maintain a complete audit trail for conducting 
        comprehensive and accurate trade reconstructions.
          (5) Rules.--The Commission shall adopt rules 
        governing daily trading records for security-based swap 
        dealers and major security-based swap participants.
  (h) Business Conduct Standards.--
          (1) In general.--Each registered security-based swap 
        dealer and major security-based swap participant shall 
        conform with such business conduct standards as 
        prescribed in paragraph (3) and as may be prescribed by 
        the Commission by rule or regulation that relate to--
                  (A) fraud, manipulation, and other abusive 
                practices involving security-based swaps 
                (including security-based swaps that are 
                offered but not entered into);
                  (B) diligent supervision of the business of 
                the registered security-based swap dealer and 
                major security-based swap participant;
                  (C) adherence to all applicable position 
                limits; and
                  (D) such other matters as the Commission 
                determines to be appropriate.
          (2) Responsibilities with respect to special 
        entities.--
                  (A) Advising special entities.--A security-
                based swap dealer or major security-based swap 
                participant that acts as an advisor to special 
                entity regarding a security-based swap shall 
                comply with the requirements of paragraph (4) 
                with respect to such special entity.
                  (B) Entering of security-based swaps with 
                respect to special entities.--A security-based 
                swap dealer that enters into or offers to enter 
                into security-based swap with a special entity 
                shall comply with the requirements of paragraph 
                (5) with respect to such special entity.
                  (C) Special entity defined.--For purposes of 
                this subsection, the term ``special entity'' 
                means--
                          (i) a Federal agency;
                          (ii) a State, State agency, city, 
                        county, municipality, or other 
                        political subdivision of a State or;
                          (iii) any employee benefit plan, as 
                        defined in section 3 of the Employee 
                        Retirement Income Security Act of 1974 
                        (29 U.S.C. 1002);
                          (iv) any governmental plan, as 
                        defined in section 3 of the Employee 
                        Retirement Income Security Act of 1974 
                        (29 U.S.C. 1002); or
                          (v) any endowment, including an 
                        endowment that is an organization 
                        described in section 501(c)(3) of the 
                        Internal Revenue Code of 1986.
          (3) Business conduct requirements.--Business conduct 
        requirements adopted by the Commission shall--
                  (A) establish a duty for a security-based 
                swap dealer or major security-based swap 
                participant to verify that any counterparty 
                meets the eligibility standards for an eligible 
                contract participant;
                  (B) require disclosure by the security-based 
                swap dealer or major security-based swap 
                participant to any counterparty to the 
                transaction (other than a security-based swap 
                dealer, major security-based swap participant, 
                security-based swap dealer, or major security-
                based swap participant) of--
                          (i) information about the material 
                        risks and characteristics of the 
                        security-based swap;
                          (ii) any material incentives or 
                        conflicts of interest that the 
                        security-based swap dealer or major 
                        security-based swap participant may 
                        have in connection with the security-
                        based swap; and
                          (iii)(I) for cleared security-based 
                        swaps, upon the request of the 
                        counterparty, receipt of the daily mark 
                        of the transaction from the appropriate 
                        derivatives clearing organization; and
                          (II) for uncleared security-based 
                        swaps, receipt of the daily mark of the 
                        transaction from the security-based 
                        swap dealer or the major security-based 
                        swap participant;
                  (C) establish a duty for a security-based 
                swap dealer or major security-based swap 
                participant to communicate in a fair and 
                balanced manner based on principles of fair 
                dealing and good faith; and
                  (D) establish such other standards and 
                requirements as the Commission may determine 
                are appropriate in the public interest, for the 
                protection of investors, or otherwise in 
                furtherance of the purposes of this Act.
          (4) Special requirements for security-based swap 
        dealers acting as advisors.--
                  (A) In general.--It shall be unlawful for a 
                security-based swap dealer or major security-
                based swap participant--
                          (i) to employ any device, scheme, or 
                        artifice to defraud any special entity 
                        or prospective customer who is a 
                        special entity;
                          (ii) to engage in any transaction, 
                        practice, or course of business that 
                        operates as a fraud or deceit on any 
                        special entity or prospective customer 
                        who is a special entity; or
                          (iii) to engage in any act, practice, 
                        or course of business that is 
                        fraudulent, deceptive, or manipulative.
                  (B) Duty.--Any security-based swap dealer 
                that acts as an advisor to a special entity 
                shall have a duty to act in the best interests 
                of the special entity.
                  (C) Reasonable efforts.--Any security-based 
                swap dealer that acts as an advisor to a 
                special entity shall make reasonable efforts to 
                obtain such information as is necessary to make 
                a reasonable determination that any security-
                based swap recommended by the security-based 
                swap dealer is in the best interests of the 
                special entity, including information relating 
                to--
                          (i) the financial status of the 
                        special entity;
                          (ii) the tax status of the special 
                        entity;
                          (iii) the investment or financing 
                        objectives of the special entity; and
                          (iv) any other information that the 
                        Commission may prescribe by rule or 
                        regulation.
          (5) Special requirements for security-based swap 
        dealers as counterparties to special entities.--
                  (A) In general.--Any security-based swap 
                dealer or major security-based swap participant 
                that offers to or enters into a security-based 
                swap with a special entity shall--
                          (i) comply with any duty established 
                        by the Commission for a security-based 
                        swap dealer or major security-based 
                        swap participant, with respect to a 
                        counterparty that is an eligible 
                        contract participant within the meaning 
                        of subclause (I) or (II) of clause 
                        (vii) of section 1a(18) of the 
                        Commodity Exchange Act, that requires 
                        the security-based swap dealer or major 
                        security-based swap participant to have 
                        a reasonable basis to believe that the 
                        counterparty that is a special entity 
                        has an independent representative 
                        that--
                                  (I) has sufficient knowledge 
                                to evaluate the transaction and 
                                risks;
                                  (II) is not subject to a 
                                statutory disqualification;
                                  (III) is independent of the 
                                security-based swap dealer or 
                                major security-based swap 
                                participant;
                                  (IV) undertakes a duty to act 
                                in the best interests of the 
                                counterparty it represents;
                                  (V) makes appropriate 
                                disclosures;
                                  (VI) will provide written 
                                representations to the special 
                                entity regarding fair pricing 
                                and the appropriateness of the 
                                transaction; and
                                  (VII) in the case of employee 
                                benefit plans subject to the 
                                Employee Retirement Income 
                                Security act of 1974, is a 
                                fiduciary as defined in section 
                                3 of that Act (29 U.S.C. 1002); 
                                and
                          (ii) before the initiation of the 
                        transaction, disclose to the special 
                        entity in writing the capacity in which 
                        the security-based swap dealer is 
                        acting.
                  (B) Commission authority.--The Commission may 
                establish such other standards and requirements 
                under this paragraph as the Commission may 
                determine are appropriate in the public 
                interest, for the protection of investors, or 
                otherwise in furtherance of the purposes of 
                this Act.
          (6) Rules.--The Commission shall prescribe rules 
        under this subsection governing business conduct 
        standards for security-based swap dealers and major 
        security-based swap participants.
          (7) Applicability.--This subsection shall not apply 
        with respect to a transaction that is--
                  (A) initiated by a special entity on an 
                exchange or security-based swaps execution 
                facility; and
                  (B) the security-based swap dealer or major 
                security-based swap participant does not know 
                the identity of the counterparty to the 
                transaction.''
  (i) Documentation Standards.--
          (1) In general.--Each registered security-based swap 
        dealer and major security-based swap participant shall 
        conform with such standards as may be prescribed by the 
        Commission, by rule or regulation, that relate to 
        timely and accurate confirmation, processing, netting, 
        documentation, and valuation of all security-based 
        swaps.
          (2) Rules.--The Commission shall adopt rules 
        governing documentation standards for security-based 
        swap dealers and major security-based swap 
        participants.
  (j) Duties.--Each registered security-based swap dealer and 
major security-based swap participant shall, at all times, 
comply with the following requirements:
          (1) Monitoring of trading.--The security-based swap 
        dealer or major security-based swap participant shall 
        monitor its trading in security-based swaps to prevent 
        violations of applicable position limits.
          (2) Risk management procedures.--The security-based 
        swap dealer or major security-based swap participant 
        shall establish robust and professional risk management 
        systems adequate for managing the day-to-day business 
        of the security-based swap dealer or major security-
        based swap participant.
          (3) Disclosure of general information.--The security-
        based swap dealer or major security-based swap 
        participant shall disclose to the Commission and to the 
        prudential regulator for the security-based swap dealer 
        or major security-based swap participant, as 
        applicable, information concerning--
                  (A) terms and conditions of its security-
                based swaps;
                  (B) security-based swap trading operations, 
                mechanisms, and practices;
                  (C) financial integrity protections relating 
                to security-based swaps; and
                  (D) other information relevant to its trading 
                in security-based swaps.
          (4) Ability to obtain information.--The security-
        based swap dealer or major security-based swap 
        participant shall--
                  (A) establish and enforce internal systems 
                and procedures to obtain any necessary 
                information to perform any of the functions 
                described in this section; and
                  (B) provide the information to the Commission 
                and to the prudential regulator for the 
                security-based swap dealer or major security-
                based swap participant, as applicable, on 
                request.
          (5) Conflicts of interest.--The security-based swap 
        dealer and major security-based swap participant shall 
        implement conflict-of-interest systems and procedures 
        that--
                  (A) establish structural and institutional 
                safeguards to ensure that the activities of any 
                person within the firm relating to research or 
                analysis of the price or market for any 
                security-based swap or acting in a role of 
                providing clearing activities or making 
                determinations as to accepting clearing 
                customers are separated by appropriate 
                informational partitions within the firm from 
                the review, pressure, or oversight of persons 
                whose involvement in pricing, trading, or 
                clearing activities might potentially bias 
                their judgment or supervision and contravene 
                the core principles of open access and the 
                business conduct standards described in this 
                title; and
                  (B) address such other issues as the 
                Commission determines to be appropriate.
          (6) Antitrust considerations.--Unless necessary or 
        appropriate to achieve the purposes of this title, the 
        security-based swap dealer or major security-based swap 
        participant shall not--
                  (A) adopt any process or take any action that 
                results in any unreasonable restraint of trade; 
                or
                  (B) impose any material anticompetitive 
                burden on trading or clearing.
          (7) Rules.--The Commission shall prescribe rules 
        under this subsection governing duties of security-
        based swap dealers and major security-based swap 
        participants.
  (k) Designation of Chief Compliance Officer.--
          (1) In general.--Each security-based swap dealer and 
        major security-based swap participant shall designate 
        an individual to serve as a chief compliance officer.
          (2) Duties.--The chief compliance officer shall--
                  (A) report directly to the board or to the 
                senior officer of the security-based swap 
                dealer or major security-based swap 
                participant;
                  (B) review the compliance of the security-
                based swap dealer or major security-based swap 
                participant with respect to the security-based 
                swap dealer and major security-based swap 
                participant requirements described in this 
                section;
                  (C) in consultation with the board of 
                directors, a body performing a function similar 
                to the board, or the senior officer of the 
                organization, resolve any conflicts of interest 
                that may arise;
                  (D) be responsible for administering each 
                policy and procedure that is required to be 
                established pursuant to this section;
                  (E) ensure compliance with this title 
                (including regulations) relating to security-
                based swaps, including each rule prescribed by 
                the Commission under this section;
                  (F) establish procedures for the remediation 
                of noncompliance issues identified by the chief 
                compliance officer through any--
                          (i) compliance office review;
                          (ii) look-back;
                          (iii) internal or external audit 
                        finding;
                          (iv) self-reported error; or
                          (v) validated complaint; and
                  (G) establish and follow appropriate 
                procedures for the handling, management 
                response, remediation, retesting, and closing 
                of noncompliance issues.
          (3) Annual reports.--
                  (A) In general.--In accordance with rules 
                prescribed by the Commission, the chief 
                compliance officer shall annually prepare and 
                sign a report that contains a description of--
                          (i) the compliance of the security-
                        based swap dealer or major swap 
                        participant with respect to this title 
                        (including regulations); and
                          (ii) each policy and procedure of the 
                        security-based swap dealer or major 
                        security-based swap participant of the 
                        chief compliance officer (including the 
                        code of ethics and conflict of interest 
                        policies).
                  (B) Requirements.--A compliance report under 
                subparagraph (A) shall--
                          (i) accompany each appropriate 
                        financial report of the security-based 
                        swap dealer or major security-based 
                        swap participant that is required to be 
                        furnished to the Commission pursuant to 
                        this section; and
                          (ii) include a certification that, 
                        under penalty of law, the compliance 
                        report is accurate and complete.
  (l) Enforcement and Administrative Proceeding Authority.--
          (1) Primary enforcement authority.--
                  (A) Securities and exchange commission.--
                Except as provided in subparagraph (B), (C), or 
                (D), the Commission shall have primary 
                authority to enforce subtitle B, and the 
                amendments made by subtitle B of the Wall 
                Street Transparency and Accountability Act of 
                2010, with respect to any person.
                  (B) Prudential regulators.--The prudential 
                regulators shall have exclusive authority to 
                enforce the provisions of subsection (e) and 
                other prudential requirements of this title 
                (including risk management standards), with 
                respect to security-based swap dealers or major 
                security-based swap participants for which they 
                are the prudential regulator.
                  (C) Referral.--
                          (i) Violations of nonprudential 
                        requirements.--If the appropriate 
                        Federal banking agency for security-
                        based swap dealers or major security-
                        based swap participants that are 
                        depository institutions has cause to 
                        believe that such security-based swap 
                        dealer or major security-based swap 
                        participant may have engaged in conduct 
                        that constitutes a violation of the 
                        nonprudential requirements of this 
                        section or rules adopted by the 
                        Commission thereunder, the agency may 
                        recommend in writing to the Commission 
                        that the Commission initiate an 
                        enforcement proceeding as authorized 
                        under this title. The recommendation 
                        shall be accompanied by a written 
                        explanation of the concerns giving rise 
                        to the recommendation.
                          (ii) Violations of prudential 
                        requirements.--If the Commission has 
                        cause to believe that a securities-
                        based swap dealer or major securities-
                        based swap participant that has a 
                        prudential regulator may have engaged 
                        in conduct that constitute a violation 
                        of the prudential requirements of 
                        subsection (e) or rules adopted 
                        thereunder, the Commission may 
                        recommend in writing to the prudential 
                        regulator that the prudential regulator 
                        initiate an enforcement proceeding as 
                        authorized under this title. The 
                        recommendation shall be accompanied by 
                        a written explanation of the concerns 
                        giving rise to the recommendation.
                  (D) Backstop enforcement authority.--
                          (i) Initiation of enforcement 
                        proceeding by prudential regulator.--If 
                        the Commission does not initiate an 
                        enforcement proceeding before the end 
                        of the 90-day period beginning on the 
                        date on which the Commission receives a 
                        written report under subsection (C)(i), 
                        the prudential regulator may initiate 
                        an enforcement proceeding.
                          (ii) Initiation of enforcement 
                        proceeding by commission.--If the 
                        prudential regulator does not initiate 
                        an enforcement proceeding before the 
                        end of the 90-day period beginning on 
                        the date on which the prudential 
                        regulator receives a written report 
                        under subsection (C)(ii), the 
                        Commission may initiate an enforcement 
                        proceeding.
          (2) Censure, denial, suspension; notice and 
        hearing.--The Commission, by order, shall censure, 
        place limitations on the activities, functions, or 
        operations of, or revoke the registration of any 
        security-based swap dealer or major security-based swap 
        participant that has registered with the Commission 
        pursuant to subsection (b) if the Commission finds, on 
        the record after notice and opportunity for hearing, 
        that such censure, placing of limitations, or 
        revocation is in the public interest and that such 
        security-based swap dealer or major security-based swap 
        participant, or any person associated with such 
        security-based swap dealer or major security-based swap 
        participant effecting or involved in effecting 
        transactions in security-based swaps on behalf of such 
        security-based swap dealer or major security-based swap 
        participant, whether prior or subsequent to becoming so 
        associated--
                  (A) has committed or omitted any act, or is 
                subject to an order or finding, enumerated in 
                subparagraph (A), (D), or (E) of paragraph (4) 
                of section 15(b);
                  (B) has been convicted of any offense 
                specified in subparagraph (B) of such paragraph 
                (4) within 10 years of the commencement of the 
                proceedings under this subsection;
                  (C) is enjoined from any action, conduct, or 
                practice specified in subparagraph (C) of such 
                paragraph (4);
                  (D) is subject to an order or a final order 
                specified in subparagraph (F) or (H), 
                respectively, of such paragraph (4); or
                  (E) has been found by a foreign financial 
                regulatory authority to have committed or 
                omitted any act, or violated any foreign 
                statute or regulation, enumerated in 
                subparagraph (G) of such paragraph (4).
          (3) Associated persons.--With respect to any person 
        who is associated, who is seeking to become associated, 
        or, at the time of the alleged misconduct, who was 
        associated or was seeking to become associated with a 
        security-based swap dealer or major security-based swap 
        participant for the purpose of effecting or being 
        involved in effecting security-based swaps on behalf of 
        such security-based swap dealer or major security-based 
        swap participant, the Commission, by order, shall 
        censure, place limitations on the activities or 
        functions of such person, or suspend for a period not 
        exceeding 12 months, or bar such person from being 
        associated with a security-based swap dealer or major 
        security-based swap participant, if the Commission 
        finds, on the record after notice and opportunity for a 
        hearing, that such censure, placing of limitations, 
        suspension, or bar is in the public interest and that 
        such person--
                  (A) has committed or omitted any act, or is 
                subject to an order or finding, enumerated in 
                subparagraph (A), (D), or (E) of paragraph (4) 
                of section 15(b);
                  (B) has been convicted of any offense 
                specified in subparagraph (B) of such paragraph 
                (4) within 10 years of the commencement of the 
                proceedings under this subsection;
                  (C) is enjoined from any action, conduct, or 
                practice specified in subparagraph (C) of such 
                paragraph (4);
                  (D) is subject to an order or a final order 
                specified in subparagraph (F) or (H), 
                respectively, of such paragraph (4); or
                  (E) has been found by a foreign financial 
                regulatory authority to have committed or 
                omitted any act, or violated any foreign 
                statute or regulation, enumerated in 
                subparagraph (G) of such paragraph (4).
          (4) Unlawful conduct.--It shall be unlawful--
                  (A) for any person as to whom an order under 
                paragraph (3) is in effect, without the consent 
                of the Commission, willfully to become, or to 
                be, associated with a security-based swap 
                dealer or major security-based swap participant 
                in contravention of such order; or
                  (B) for any security-based swap dealer or 
                major security-based swap participant to permit 
                such a person, without the consent of the 
                Commission, to become or remain a person 
                associated with the security-based swap dealer 
                or major security-based swap participant in 
                contravention of such order, if such security-
                based swap dealer or major security-based swap 
                participant knew, or in the exercise of 
                reasonable care should have known, of such 
                order.

           *       *       *       *       *       *       *

             rules, regulations, and orders; annual reports

  Sec. 23. (a)(1) The Commission, the Board of Governors of the 
Federal Reserve System, and the other agencies enumerated in 
section 3(a)(34) of this title shall each have power to make 
such rules and regulations as may be necessary or appropriate 
to implement the provisions of this title for which they are 
responsible or for the execution of the functions vested in 
them by this title, and may for such purposes classify persons, 
securities, transactions, statements, applications, reports, 
and other matters within their respective jurisdictions, and 
prescribe greater, lesser, or different requirements for 
different classes thereof. No provision of this title imposing 
any liability shall apply to any act done or omitted in good 
faith in conformity with a rule, regulation, or order of the 
Commission, the Board of Governors of the Federal Reserve 
System, other agency enumerated in section 3(a)(34) of this 
title, or any self-regulatory organization, notwithstanding 
that such rule, regulation, or order may thereafter be amended 
or rescinded or determined by judicial or other authority to be 
invalid for any reason.
  (2) The Commission and the Secretary of the Treasury, in 
making rules and regulations pursuant to any provisions of this 
title, shall consider among other matters the impact any such 
rule or regulation would have on competition. The Commission 
and the Secretary of the Treasury shall not adopt any such rule 
or regulation which would impose a burden on competition not 
necessary or appropriate in furtherance of the purposes of this 
title. The Commission and the Secretary of the Treasury shall 
include in the statement of basis and purpose incorporated in 
any rule or regulation adopted under this title, the reasons 
for the Commission's or the Secretary's determination that any 
burden on competition imposed by such rule or regulation is 
necessary or appropriate in furtherance of the purposes of this 
title.
  (3) The Commission and the Secretary, in making rules and 
regulations pursuant to any provision of this title, 
considering any application for registration in accordance with 
section 19(a) of this title, or reviewing any proposed rule 
change of a self-regulatory organization in accordance with 
section 19(b) of this title, shall keep in a public file and 
make available for copying all written statements filed with 
the Commission and the Secretary and all written communications 
between the Commission or the Secretary and any person relating 
to the proposed rule, regulation, application, or proposed rule 
change: Provided, however, That the Commission and the 
Secretary shall not be required to keep in a public file or 
make available for copying any such statement or communication 
which it may withhold from the public in accordance with the 
provisions of section 552 of title 5, United States Code.
  (b)(1) The Commission, the Board of Governors of the Federal 
Reserve System, and the other agencies enumerated in section 
3(a)(34) of this title shall each make an annual report to the 
Congress on its work for the preceding year, and shall include 
in each such report whatever information, data, and 
recommendations for further legislation it considers advisable 
with regard to matters within its respective jurisdiction under 
this title.
  (2) The appropriate regulatory agency for a self-regulatory 
organization shall include in its annual report to the Congress 
for each fiscal year, a summary of its oversight activities 
under this title with respect to such self-regulatory 
organization, including a description of any examination 
conducted as part of such activities of any organization, any 
material recommendation presented as part of such activities to 
such organization for changes in its organization or rules, and 
any such action by such organization in response to any such 
recommendation.
  (3) The appropriate regulatory agency for any class of 
municipal securities dealers shall include in its annual report 
to the Congress for each fiscal year a summary of its 
regulatory activities pursuant to this title with respect to 
such municipal securities dealers, including the nature of and 
reason for any sanction imposed pursuant to this title against 
any such municipal securities dealer.
  (4) The Commission shall also include in its annual report to 
the Congress for each fiscal year--
          (A) a summary of the Commission's oversight 
        activities with respect to self-regulatory 
        organizations for which it is not the appropriate 
        regulatory agency, including a description of any 
        examination of any such organization, any material 
        recommendation presented to any such organization for 
        changes in its organization or rules, and any action by 
        any such organization in response to any such 
        recommendations;
          (B) a statement and analysis of the expenses and 
        operations of each self-regulatory organization in 
        connection with the performance of its responsibilities 
        under this title, for which purpose data pertaining to 
        such expenses and operations shall be made available by 
        such organization to the Commission at its request;
          (C) the steps the Commission has taken and the 
        progress it has made toward ending the physical 
        movement of the securities certificate in connection 
        with the settlement of securities transactions, and its 
        recommendations, if any, for legislation to eliminate 
        the securities certificate;
          (D) the number of requests for exemptions from 
        provisions of this title received, the number granted, 
        and the basis upon which any such exemption was 
        granted;
          (E) a summary of the Commission's regulatory 
        activities with respect to municipal securities dealers 
        for which it is not the appropriate regulatory agency, 
        including the nature of, and reason for, any sanction 
        imposed in proceedings against such municipal 
        securities dealers;
          (F) a statement of the time elapsed between the 
        filing of reports pursuant to section 13(f) of this 
        title and the public availability of the information 
        contained therein, the costs involved in the 
        Commission's processing of such reports and tabulating 
        such information, the manner in which the Commission 
        uses such information, and the steps the Commission has 
        taken and the progress it has made toward requiring 
        such reports to be filed and such information to be 
        made available to the public in machine language;
          (G) information concerning (i) the effects its rules 
        and regulations are having on the viability of small 
        brokers and dealers; (ii) its attempts to reduce any 
        unnecessary reporting burden on such brokers and 
        dealers; and (iii) its efforts to help to assure the 
        continued participation of small brokers and dealers in 
        the United States securities markets;
          (H) a statement detailing its administration of the 
        Freedom of Information Act, section 552 of title 5, 
        United States Code, including a copy of the report 
        filed pursuant to subsection (d) of such section; and
          (I) the steps that have been taken and the progress 
        that has been made in promoting the timely public 
        dissemination and availability for analytical purposes 
        (on a fair, reasonable, and nondiscriminatory basis) of 
        information concerning government securities 
        transactions and quotations, and its recommendations, 
        if any, for legislation to assure timely dissemination 
        of (i) information on transactions in regularly traded 
        government securities sufficient to permit the 
        determination of the prevailing market price for such 
        securities, and (ii) reports of the highest published 
        bids and lowest published offers for government 
        securities (including the size at which persons are 
        willing to trade with respect to such bids and offers).
  (c) The Commission, by rule, shall prescribe the procedure 
applicable to every case pursuant to this title of adjudication 
(as defined in section 551 of title 5, United States Code) not 
required to be determined on the record after notice and 
opportunity for hearing. Such rules shall, as a minimum, 
provide that prompt notice shall be given of any adverse action 
or final disposition and that such notice and the entry of any 
order shall be accompanied by a statement of written reasons.
  (d) Cease-and-Desist Procedures.--Within 1 year after the 
date of enactment of this subsection, the Commission shall 
establish regulations providing for the expeditious conduct of 
hearings and rendering of decisions under section 21C of this 
title, section 8A of the Securities Act of 1933, section 9(f) 
of the Investment Company Act of 1940, and section 203(k) of 
the Investment Advisers Act of 1940.
  (e) Procedure for Obtaining Certain Intellectual Property.--
The Commission is not authorized to compel under this title a 
person to produce or furnish source code, including algorithmic 
trading source code or similar intellectual property that forms 
the basis for design of the source code, to the Commission 
unless the Commission first issues a subpoena.

           *       *       *       *       *       *       *

                              ----------                              

                          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.
  (aa) 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.
  (bb) 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) 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) 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)] paragraph (1)(A) and 
section 129C, 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 and 
        insurance), unless--
                  (i) the charge is reasonable;
                  (ii) the creditor receives no direct or 
                indirect compensation, except as retained by a 
                creditor or its affiliate as a result of their 
                participation in an affiliated business 
                arrangement (as defined in section 2(7) of the 
                Real Estate Settlement Procedures Act of 1974 
                (12 U.S.C. 2602(7)); and
                  [(iii) the charge is paid to a third party 
                unaffiliated with the creditor; and]
                  (iii) the charge is--
                          (I) a bona fide third-party charge 
                        not retained by the mortgage 
                        originator, creditor, or an affiliate 
                        of the creditor or mortgage originator; 
                        or
                          (II) a charge set forth in section 
                        106(e)(1);
          (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] and 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.
  (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) 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);
                  (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) 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] 103(bb)(4)) 
                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)] 103(bb)(4).
                          (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.

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                              ----------                              

                         SECURITIES ACT OF 1933

TITLE I--

           *       *       *       *       *       *       *

                              definitions

  Sec. 2. (a) Definitions.--When used in this title, unless the 
context otherwise requires--
          (1) The term ``security'' means any note, stock, 
        treasury stock, security future, security-based swap, 
        bond, debenture, evidence of indebtedness, certificate 
        of interest or participation in any profit-sharing 
        agreement, collateral-trust certificate, 
        preorganization certificate or subscription, 
        transferable share, investment contract, voting-trust 
        certificate, certificate of deposit for a security, 
        fractional undivided interest in oil, gas, or other 
        mineral rights, any put, call, straddle, option, or 
        privilege on any security, certificate of deposit, or 
        group or index of securities (including any interest 
        therein or based on the value thereof), or any put, 
        call, straddle, option, or privilege entered into on a 
        national securities exchange relating to foreign 
        currency, or, in general, any interest or instrument 
        commonly known as a ``security'', or any certificate of 
        interest or participation in, temporary or interim 
        certificate for, receipt for, guarantee of, or warrant 
        or right to subscribe to or purchase, any of the 
        foregoing.
          (2) The term ``person'' means an individual, a 
        corporation, a partnership, an association, a joint-
        stock company, a trust, any unincorporated 
        organization, or a government or political subdivision 
        thereof. As used in this paragraph the term ``trust'' 
        shall include only a trust where the interest or 
        interests of the beneficiary or beneficiaries are 
        evidenced by a security.
          (3) The term ``sale'' or ``sell'' shall include every 
        contract of sale or disposition of a security or 
        interest in a security, for value. The term ``offer to 
        sell'', ``offer for sale'', or ``offer'' shall include 
        every attempt or offer to dispose of, or solicitation 
        of an offer to buy, a security or interest in a 
        security, for value. The terms defined in this 
        paragraph and the term ``offer to buy'' as used in 
        subsection (c) of section 5 shall not include 
        preliminary negotiations or agreements between an 
        issuer (or any person directly or indirectly 
        controlling or controlled by an issuer, or under direct 
        or indirect common control with an issuer) and any 
        underwriter or among underwriters who are or are to be 
        in privity of contract with an issuer (or any person 
        directly or indirectly controlling or controlled by an 
        issuer, or under direct or indirect common control with 
        an issuer). Any security given or delivered with, or as 
        a bonus on account of, any purchase of securities or 
        any other thing, shall be conclusively presumed to 
        constitute a part of the subject of such purchase and 
        to have been offered and sold for value. The issue or 
        transfer of a right or privilege, when originally 
        issued or transferred with a security, giving the 
        holder of such security the right to convert such 
        security into another security of the same issuer or of 
        another person, or giving a right to subscribe to 
        another security of the same issuer or of another 
        person, which right cannot be exercised until some 
        future date, shall not be deemed to be an offer or sale 
        of such other security; but the issue or transfer of 
        such other security upon the exercise of such right of 
        conversion or subscription shall be deemed a sale of 
        such other security. Any offer or sale of a security 
        futures product by or on behalf of the issuer of the 
        securities underlying the security futures product, an 
        affiliate of the issuer, or an underwriter, shall 
        constitute a contract for sale of, sale of, offer for 
        sale, or offer to sell the underlying securities. Any 
        offer or sale of a security-based swap by or on behalf 
        of the issuer of the securities upon which such 
        security-based swap is based or is referenced, an 
        affiliate of the issuer, or an underwriter, shall 
        constitute a contract for sale of, sale of, offer for 
        sale, or offer to sell such securities. The publication 
        or distribution by a broker or dealer of a research 
        report about an emerging growth company that is the 
        subject of a proposed public offering of the common 
        equity securities of such emerging growth company 
        pursuant to a registration statement that the issuer 
        proposes to file, or has filed, or that is effective 
        shall be deemed for purposes of paragraph (10) of this 
        subsection and section 5(c) not to constitute an offer 
        for sale or offer to sell a security, even if the 
        broker or dealer is participating or will participate 
        in the registered offering of the securities of the 
        issuer. As used in this paragraph, the term ``research 
        report'' means a written, electronic, or oral 
        communication that includes information, opinions, or 
        recommendations with respect to securities of an issuer 
        or an analysis of a security or an issuer, whether or 
        not it provides information reasonably sufficient upon 
        which to base an investment decision.
          (4) The term ``issuer'' means every person who issues 
        or proposes to issue any security; except that with 
        respect to certificates of deposit, voting-trust 
        certificates, or collateral-trust certificates, or with 
        respect to certificates of interest or shares in an 
        unincorporated investment trust not having a board of 
        directors (or persons performing similar functions) or 
        of the fixed, restricted management, or unit type, the 
        term ``issuer'' means the person or persons performing 
        the acts and assuming the duties of depositor or 
        manager pursuant to the provisions of the trust or 
        other agreement or instrument under which such 
        securities are issued; except that in the case of an 
        unincorporated association which provides by its 
        articles for limited liability of any or all of its 
        members, or in the case of a trust, committee, or other 
        legal entity, the trustees or members thereof shall not 
        be individually liable as issuers of any security 
        issued by the association, trust, committee, or other 
        legal entity; except that with respect to equipment-
        trust certificates or like securities, the term 
        ``issuer'' means the person by whom the equipment or 
        property is or is to be used; and except that with 
        respect to fractional undivided interests in oil, gas, 
        or other mineral rights, the term ``issuer'' means the 
        owner of any such right or of any interest in such 
        right (whether whole or fractional) who creates 
        fractional interests therein for the purpose of public 
        offering.
          (5) The term ``Commission'' means the Securities and 
        Exchange Commission.
          (6) The term ``Territory'' means Puerto Rico, the 
        Virgin Islands, and the insular possessions of the 
        United States.
          (7) The term ``interstate commerce'' means trade or 
        commerce in securities or any transportation or 
        communication relating thereto among the several States 
        or between the District of Columbia or any Territory of 
        the United States and any State or other Territory, or 
        between any foreign country and any State, Territory, 
        or the District of Columbia, or within the District of 
        Columbia.
          (8) The term ``registration statement'' means the 
        statement provided for in section 6, and includes any 
        amendment thereto and any report, document, or 
        memorandum filed as part of such statement or 
        incorporated therein by reference.
          (9) The term ``write'' or ``written'' shall include 
        printed, lithographed, or any means of graphic 
        communication.
          (10) The term ``prospectus'' means any prospectus, 
        notice, circular, advertisement, letter, or 
        communication, written or by radio or television, which 
        offers any security for sale or confirms the sale of 
        any security; except that (a) a communication sent or 
        given after the effective date of the registration 
        statement (other than a prospectus permitted under 
        subsection (b) of section 10) shall not be deemed a 
        prospectus if it is proved that prior to or at the same 
        time with such communication a written prospectus 
        meeting the requirements of subsection (a) of section 
        10 at the time of such communication was sent or given 
        to the person to whom the communication was made, and 
        (b) a notice, circular, advertisement, letter, or 
        communication in respect of a security shall not be 
        deemed to be a prospectus if it states from whom a 
        written prospectus meeting the requirements of section 
        10 may be obtained and, in addition, does no more than 
        identify the security, state the price thereof, state 
        by whom orders will be executed, and contain such other 
        information as the Commission, by rules or regulations 
        deemed necessary or appropriate in the public interest 
        and for the protection of investors, and subject to 
        such terms and conditions as may be prescribed therein, 
        may permit.
          (11) The term ``underwriter'' means any person who 
        has purchased from an issuer with a view to, or offers 
        or sells for an issuer in connection with, the 
        distribution of any security, or participates or has a 
        direct or indirect participation in any such 
        undertaking, or participates or has a participation in 
        the direct or indirect underwriting of any such 
        undertaking; but such term shall not include a person 
        whose interest is limited to a commission from an 
        underwriter or dealer not in excess of the usual and 
        customary distributors' or sellers' commission. As used 
        in this paragraph the term ``issuer'' shall include, in 
        addition to an issuer, any person directly or 
        indirectly controlling or controlled by the issuer, or 
        any person under direct or indirect common control with 
        the issuer.
          (12) The term ``dealer'' means any person who engages 
        either for all or part of his time, directly or 
        indirectly, as agent, broker, or principal, in the 
        business of offering, buying, selling, or otherwise 
        dealing or trading in securities issued by another 
        person.
          (13) The term ``insurance company'' means a company 
        which is organized as an insurance company, whose 
        primary and predominant business activity is the 
        writing of insurance or the reinsuring of risks 
        underwritten by insurance companies, and which is 
        subject to supervision by the insurance commissioner, 
        or a similar official or agency, of a State or 
        territory or the District of Columbia; or any receiver 
        or similar official or any liquidating agent for such 
        company, in his capacity as such.
          (14) The term ``separate account'' means an account 
        established and maintained by an insurance company 
        pursuant to the laws of any State or territory of the 
        United States, the District of Columbia, or of Canada 
        or any province thereof, under which income, gains and 
        losses, whether or not realized, from assets allocated 
        to such account, are, in accordance with the applicable 
        contract, credited to or charged against such account 
        without regard to other income, gains, or losses of the 
        insurance company.
          (15) The term ``accredited investor'' shall mean--
                  
                  [(i)] (A) a bank as defined in section 
                3(a)(2) whether acting in its individual or 
                fiduciary capacity; an insurance company as 
                defined in paragraph (13) of this subsection; 
                an investment company registered under the 
                Investment Company Act of 1940 or a business 
                development company as defined in section 
                2(a)(48) of that Act; a Small Business 
                Investment Company licensed by the Small 
                Business Administration; or an employee benefit 
                plan, including an individual retirement 
                account, which is subject to the provisions of 
                the Employee Retirement Income Security Act of 
                1974, if the investment decision is made by a 
                plan fiduciary, as defined in section 3(21) of 
                such Act, which is either a bank, insurance 
                company, or registered investment adviser[; or] 
                ;
          (B) any natural person whose individual net worth, or 
        joint net worth with that person's spouse, exceeds 
        $1,000,000 (which amount, along with the amounts set 
        forth in subparagraph (C), shall be adjusted for 
        inflation by the Commission every 5 years to the 
        nearest $10,000 to reflect the change in the Consumer 
        Price Index for All Urban Consumers published by the 
        Bureau of Labor Statistics) where, for purposes of 
        calculating net worth under this subparagraph--
                  (i) the person's primary residence shall not 
                be included as an asset; 
                  (ii) indebtedness that is secured by the 
                person's primary residence, up to the estimated 
                fair market value of the primary residence at 
                the time of the sale of securities, shall not 
                be included as a liability (except that if the 
                amount of such indebtedness outstanding at the 
                time of sale of securities exceeds the amount 
                outstanding 60 days before such time, other 
                than as a result of the acquisition of the 
                primary residence, the amount of such excess 
                shall be included as a liability); and 
                  (iii) indebtedness that is secured by the 
                person's primary residence in excess of the 
                estimated fair market value of the primary 
                residence at the time of the sale of securities 
                shall be included as a liability; 
          (C) any natural person who had an individual income 
        in excess of $200,000 in each of the 2 most recent 
        years or joint income with that person's spouse in 
        excess of $300,000 in each of those years and has a 
        reasonable expectation of reaching the same income 
        level in the current year; 
          (D) any natural person who is currently licensed or 
        registered as a broker or investment adviser by the 
        Commission, the Financial Industry Regulatory 
        Authority, or an equivalent self-regulatory 
        organization (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934), or the securities 
        division of a State or the equivalent State division 
        responsible for licensing or registration of 
        individuals in connection with securities activities; 
          (E) any natural person the Commission determines, by 
        regulation, to have demonstrable education or job 
        experience to qualify such person as having 
        professional knowledge of a subject related to a 
        particular investment, and whose education or job 
        experience is verified by the Financial Industry 
        Regulatory Authority or an equivalent self-regulatory 
        organization (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934); or 
                  [(ii)] (F) any person who, on the basis of 
                such factors as financial sophistication, net 
                worth, knowledge, and experience in financial 
                matters, or amount of assets under management 
                qualifies as an accredited investor under rules 
                and regulations which the Commission shall 
                prescribe.
          (16) The terms ``security future'', ``narrow-based 
        security index'', and ``security futures product'' have 
        the same meanings as provided in section 3(a)(55) of 
        the Securities Exchange Act of 1934.
          (17) The terms ``swap'' and ``security-based swap'' 
        have the same meanings as in section 1a of the 
        Commodity Exchange Act (7 U.S.C. 1a).
          (18) The terms ``purchase'' or ``sale'' of a 
        security-based swap shall be deemed to mean the 
        execution, termination (prior to its scheduled maturity 
        date), assignment, exchange, or similar transfer or 
        conveyance of, or extinguishing of rights or 
        obligations under, a security-based swap, as the 
        context may require.
          (19) The term ``emerging growth company'' means an 
        issuer that had total annual gross revenues of less 
        than $1,000,000,000 (as such amount is indexed for 
        inflation every 5 years by the Commission to reflect 
        the change in the Consumer Price Index for All Urban 
        Consumers published by the Bureau of Labor Statistics, 
        setting the threshold to the nearest 1,000,000) during 
        its most recently completed fiscal year. An issuer that 
        is an emerging growth company as of the first day of 
        that fiscal year shall continue to be deemed an 
        emerging growth company until the earliest of--
                  (A) the last day of the fiscal year of the 
                issuer during which it had total annual gross 
                revenues of $1,000,000,000 (as such amount is 
                indexed for inflation every 5 years by the 
                Commission to reflect the change in the 
                Consumer Price Index for All Urban Consumers 
                published by the Bureau of Labor Statistics, 
                setting the threshold to the nearest 1,000,000) 
                or more;
                  (B) the last day of the fiscal year of the 
                issuer following the fifth anniversary of the 
                date of the first sale of common equity 
                securities of the issuer pursuant to an 
                effective registration statement under this 
                title;
                  (C) the date on which such issuer has, during 
                the previous 3-year period, issued more than 
                $1,000,000,000 in non-convertible debt; or
                  (D) the date on which such issuer is deemed 
                to be a ``large accelerated filer'', as defined 
                in section 240.12b-2 of title 17, Code of 
                Federal Regulations, or any successor thereto.
  (b) Consideration of Promotion of Efficiency, Competition, 
and Capital Formation.--Whenever pursuant to this title the 
Commission is engaged in rulemaking and is required to 
consider or determine whether an action is necessary or 
appropriate in the public interest, the Commission shall also 
consider, in addition to the protection of investors, whether 
the action will promote efficiency, competition, and capital 
formation.

           *       *       *       *       *       *       *

       prohibitions relating to interstate commerce and the mails

  Sec. 5. (a) Unless a registration statement is in effect as 
to a security, it shall be unlawful for any person, directly or 
indirectly--
          (1) to make use of any means or instruments of 
        transportation or communication in interstate commerce 
        or of the mails to sell such security through the use 
        or medium of any prospectus or otherwise; or
          (2) to carry or cause to be carried through the mails 
        or in interstate commerce, by any means or instruments 
        of transportation, any such security for the purpose of 
        sale or for delivery after sale.
  (b) It shall be unlawful for any person, directly or 
indirectly--
          (1) to make use of any means or instruments of 
        transportation or communication in interstate commerce 
        or of the mails to carry or transmit any prospectus 
        relating to any security with respect to which a 
        registration statement has been filed under this title, 
        unless such prospectus meets the requirements of 
        section 10; or
          (2) to carry or cause to be carried through the mails 
        or in interstate commerce any such security for the 
        purpose of sale or for delivery after sale, unless 
        accompanied or preceded by a prospectus that meets the 
        requirements of subsection (a) of section 10.
  (c) It shall be unlawful for any person, directly or 
indirectly, to make use of any means or instruments of 
transportation or communication in interstate commerce or of 
the mails to offer to sell or offer to buy through the use or 
medium of any prospectus or otherwise any security, unless a 
registration statement has been filed as to such security, or 
while the registration statement is the subject of a refusal 
order or stop order or (prior to the effective date of the 
registration statement) any public proceeding or examination 
under section 8.
  (d) Limitation.--[Notwithstanding]
          (1) In general._Notwithstanding  any other provision 
        of this section, [an emerging growth company or any 
        person authorized to act on behalf of an emerging 
        growth company] an issuer or any person authorized to 
        act on behalf of an issuer may engage in oral or 
        written communications with potential investors that 
        are qualified institutional buyers or institutions that 
        are accredited investors, as such terms are 
        respectively defined in section 230.144A and section 
        230.501(a) of title 17, Code of Federal Regulations, or 
        any successor thereto, to determine whether such 
        investors might have an interest in a contemplated 
        securities offering, either prior to or following the 
        date of filing of a registration statement with respect 
        to such securities with the Commission, subject to the 
        requirement of subsection (b)(2).
          (2) Additional requirements.--
                  (A) In general.--The Commission may issue 
                regulations, subject to public notice and 
                comment, to impose such other terms, 
                conditions, or requirements on the engaging in 
                oral or written communications described under 
                paragraph (1) by an issuer other than an 
                emerging growth company as the Commission 
                determines appropriate.
                  (B) Report to congress.--Prior to any 
                rulemaking described under subparagraph (A), 
                the Commission shall issue a report to the 
                Congress containing a list of the findings 
                supporting the basis of such rulemaking.
  (e) Notwithstanding the provisions of section 3 or 4, unless 
a registration statement meeting the requirements of section 
10(a) is in effect as to a security-based swap, it shall be 
unlawful for any person, directly or indirectly, to make use of 
any means or instruments of transportation or communication in 
interstate commerce or of the mails to offer to sell, offer to 
buy or purchase or sell a security-based swap to any person who 
is not an eligible contract participant as defined in section 
1a(18) of the Commodity Exchange Act (7 U.S.C. 1a(18)).

    registration of securities and signing of registration statement

  Sec. 6. (a) Any security may be registered with the 
Commission under the terms and conditions hereinafter provided, 
by filing a registration statement in triplicate, at least one 
of which shall be signed by each issuer, its principal 
executive officer or officers, its principal financial officer, 
its comptroller or principal accounting officer, and the 
majority of its board of directors or persons performing 
similar functions (or, if there is no board of directors or 
persons performing similar functions, by the majority of the 
persons or board having the power of management of the issuer), 
and in case the issuer is a foreign or Territorial person by 
its duly authorized representative in the United States; except 
that when such registration statement relates to a security 
issued by a foreign government, or political subdivision 
thereof, it need be signed only by the underwriter of such 
security. Signatures of all such persons when written on the 
said registration statements shall be presumed to have been so 
written by authority of the person whose signature is so 
affixed and the burden of proof, in the event such authority 
shall be denied, shall be upon the party denying the same. The 
affixing of any signature without the authority of the 
purported signer shall constitute a violation of this title. A 
registration statement shall be deemed effective only as to the 
securities specified therein as proposed to be offered.
  (b) Registration Fee.--
          (1) Fee payment required.--At the time of filing a 
        registration statement, the applicant shall pay to the 
        Commission a fee at a rate that shall be equal to $92 
        per $1,000,000 of the maximum aggregate price at which 
        such securities are proposed to be offered, except that 
        during fiscal year 2003 and any succeeding fiscal year 
        such fee shall be adjusted pursuant to paragraph (2).
          (2) Annual adjustment.--For each fiscal year, the 
        Commission shall by order adjust the rate required by 
        paragraph (1) for such fiscal year to a rate that, when 
        applied to the baseline estimate of the aggregate 
        maximum offering prices for such fiscal year, is 
        reasonably likely to produce aggregate fee collections 
        under this subsection that are equal to the target fee 
        collection amount for such fiscal year.
          (3) 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.
          (4) Review and effective date.--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 (2) and published under 
        paragraph (5) shall not be subject to judicial review. 
        An adjusted rate prescribed under paragraph (2) shall 
        take effect on the first day of the fiscal year to 
        which such rate applies.
          (5) Publication.--The Commission shall publish in the 
        Federal Register notices of the rate applicable under 
        this subsection and under sections 13(e) and 14(g) for 
        each fiscal year not later than August 31 of the fiscal 
        year preceding the fiscal year to which such rate 
        applies, together with any estimates or projections on 
        which such rate is based.
          (6) Definitions.--For purposes of this subsection:
                  (A) Target offsetting collection amount.--The 
                target fee collection amount for each fiscal 
                year is determined according to the following 
                table:

                                                              Target fee
  Fiscal year:                                         collection amount
2002....................................................   $377,000,000 
2003....................................................   $435,000,000 
2004....................................................   $467,000,000 
2005....................................................   $570,000,000 
2006....................................................   $689,000,000 
2007....................................................   $214,000,000 
2008....................................................   $234,000,000 
2009....................................................   $284,000,000 
2010....................................................   $334,000,000 
2011....................................................   $394,000,000 
2012....................................................   $425,000,000 
2013....................................................   $455,000,000 
2014....................................................   $485,000,000 
2015....................................................   $515,000,000 
2016....................................................   $550,000,000 
2017....................................................   $585,000,000 
2018....................................................   $620,000,000 
2019....................................................   $660,000,000 
2020....................................................   $705,000,000 
  2021 and each fiscAn amount that is equal to the target fee collection 
                    amount for the prior fiscal year, adjusted by the 
                    rate of inflation.

                  (B) Baseline estimate of the aggregate 
                maximum offering prices.--The baseline estimate 
                of the aggregate maximum offering prices for 
                any fiscal year is the baseline estimate of the 
                aggregate maximum offering price at which 
                securities are proposed to be offered pursuant 
                to registration statements filed with the 
                Commission 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 projections 
                pursuant to section 257 of the Balanced Budget 
                and Emergency Deficit Control Act of 1985.
  (c) The filing with the Commission of a registration 
statement, or of an amendment to a registration statement, 
shall be deemed to have taken place upon the receipt thereof, 
but the filing of a registration statement shall not be deemed 
to have taken place unless it is accompanied by a United States 
postal money order or a certified bank check or cash for the 
amount of the fee required under subsection (b).
  (d) The information contained in or filed with any 
registration statement shall be made available to the public 
under such regulations as the Commission may prescribe, and 
copies thereof, photostatic or otherwise, shall be furnished to 
every applicant at such reasonable charge as the Commission may 
prescribe.
  (e)  [Emerging Growth Companies] Draft Registration 
Statements.--
          [(1) In general.--Any emerging growth company, prior 
        to its initial public offering date, may confidentially 
        submit to the Commission a draft registration 
        statement, for confidential nonpublic review by the 
        staff of the Commission prior to public filing, 
        provided that the initial confidential submission and 
        all amendments thereto shall be publicly filed with the 
        Commission not later than 15 days before the date on 
        which the issuer conducts a road show, as such term is 
        defined in section 230.433(h)(4) of title 17, Code of 
        Federal Regulations, or any successor thereto. An 
        issuer that was an emerging growth company at the time 
        it submitted a confidential registration statement or, 
        in lieu thereof, a publicly filed registration 
        statement for review under this subsection but ceases 
        to be an emerging growth company thereafter shall 
        continue to be treated as an emerging market growth 
        company for the purposes of this subsection through the 
        earlier of the date on which the issuer consummates its 
        initial public offering pursuant to such registrations 
        statement or the end of the 1-year period beginning on 
        the date the company ceases to be an emerging growth 
        company.]
          (1) Prior to initial public offering.--Any issuer, 
        prior to its initial public offering date, may 
        confidentially submit to the Commission a draft 
        registration statement, for confidential nonpublic 
        review by the staff of the Commission prior to public 
        filing, provided that the initial confidential 
        submission and all amendments thereto shall be publicly 
        filed with the Commission not later than 15 days before 
        the date on which the issuer conducts a road show (as 
        defined under section 230.433(h)(4) of title 17, Code 
        of Federal Regulations) or, in the absence of a road 
        show, at least 15 days prior to the requested effective 
        date of the registration statement.
          (2) Within 1 year after initial public offering or 
        exchange registration.--Any issuer, within the 1-year 
        period following its initial public offering or its 
        registration of a security under section 12(b) of the 
        Securities Exchange Act of 1934, may confidentially 
        submit to the Commission a draft registration 
        statement, for confidential nonpublic review by the 
        staff of the Commission prior to public filing, 
        provided that the initial confidential submission and 
        all amendments thereto shall be publicly filed with the 
        Commission not later than 15 days before the date on 
        which the issuer conducts a road show (as defined under 
        section 230.433(h)(4) of title 17, Code of Federal 
        Regulations) or, in the absence of a road show, at 
        least 15 days prior to the requested effective date of 
        the registration statement.
          (3) Additional requirements.--
                  (A) In general.--The Commission may issue 
                regulations, subject to public notice and 
                comment, to impose such other terms, 
                conditions, or requirements on the submission 
                of draft registration statements described 
                under this subsection by an issuer other than 
                an emerging growth company as the Commission 
                determines appropriate.
                  (B) Report to congress.--Prior to any 
                rulemaking described under subparagraph (A), 
                the Commission shall issue a report to the 
                Congress containing a list of the findings 
                supporting the basis of such rulemaking.
          [(2)] (4) Confidentiality.--Notwithstanding any other 
        provision of this title, the Commission shall not be 
        compelled to disclose any information provided to or 
        obtained by the Commission pursuant to this subsection. 
        For purposes of section 552 of title 5, United States 
        Code, this subsection shall be considered a statute 
        described in subsection (b)(3)(B) of such section 552. 
        Information described in or obtained pursuant to this 
        subsection shall be deemed to constitute confidential 
        information for purposes of section 24(b)(2) of the 
        Securities Exchange Act of 1934.

           *       *       *       *       *       *       *

    taking effect of registration statements and amendments thereto

  Sec. 8. (a) Except as hereinafter provided, the effective 
date of a registration statement shall be the twentieth day 
after the filing thereof or such earlier date as the Commission 
may determine, having due regard to the adequacy of the 
information respecting the issuer theretofore available to the 
public, to the facility with which the nature of the securities 
to be registered, their relationship to the capital structure 
of the issuer and the rights of holders thereof can be 
understood, and to the public interest and the protection of 
investors. If any amendment to any such statement is filed 
prior to the effective date of such statement, the registration 
statement shall be deemed to have been filed when such 
amendment was filed; except that an amendment filed with the 
consent of the Commission, prior to the effective date of the 
registration statement, or filed pursuant to an order of the 
Commission, shall be treated as a part of the registration 
statement.
  (b) If it appears to the Commission that a registration 
statement is on its face incomplete or inaccurate in any 
material respect, the Commission may, after notice by personal 
service or the sending of confirmed telegraphic notice not 
later than ten days after the filing of the registration 
statement, and opportunity for hearing (at a time fixed by the 
Commission) within ten days after such notice by personal 
service or the sending of such telegraphic notice, issue an 
order prior to the effective date of registration refusing to 
permit such statement to become effective until it has been 
amended in accordance with such order. When such statement has 
been amended in accordance with such order the Commission shall 
so declare and the registration shall become effective at the 
time provided in subsection (a) or upon the date of such 
declaration, whichever date is the later.
  (c) An amendment filed after the effective date of the 
registration statement, if such amendment, upon its face, 
appears to the Commission not to be incomplete or inaccurate in 
any material respect, shall become effective on such date as 
the Commission may determine, having due regard to the public 
interest and the protection of investors.
  (d) If it appears to the Commission at any time that the 
registration statement includes any untrue statement of a 
material fact or omits to state any material fact required to 
be stated therein or necessary to make the statements therein 
not misleading, the Commission may, after notice by personal 
service or the sending of confirmed telegraphic notice, and 
after opportunity for hearing (at a time fixed by the 
Commission) within fifteen days after such notice by personal 
service or the sending of such telegraphic notice, issue a stop 
order suspending the effectiveness of the registration 
statement. When such statement has been amended in accordance 
with such stop order the Commission shall so declare and 
thereupon the stop order shall cease to be effective.
  (e) The Commission is hereby empowered to make an examination 
in any case in order to determine whether a stop order should 
issue under subsection (d). In making such examination the 
Commission or any officer or officers designated by it shall 
have access to and may demand the production of any books and 
papers of, and may administer oaths and affirmations to and 
examine, the issuer, underwriter, or any other person, in 
respect of any matter relevant to the examination, and may, in 
its discretion, require the production of a balance sheet 
exhibiting the assets and liabilities of the issuer, or its 
income statement, or both, to be certified to by a public or 
certified accountant approved by the Commission. If the issuer 
or underwriter shall fail to cooperate, or shall obstruct or 
refuse to permit the making of an examination, such conduct 
shall be proper ground for the issuance of a stop order.
  (f) Any notice required under this section shall be sent to 
or served on the issuer, or, in case of a foreign government or 
political subdivision thereof, to or on the underwriter, or, in 
the case of a foreign or Territorial person, to or on its duly 
authorized representative in the United States named in the 
registration statement, properly directed in each case of 
telegraphic notice to the address given in such statement.
  (g) Procedure for Obtaining Certain Intellectual Property.--
The Commission is not authorized to compel under this title a 
person to produce or furnish source code, including algorithmic 
trading source code or similar intellectual property that forms 
the basis for design of the source code, to the Commission 
unless the Commission first issues a subpoena.

           *       *       *       *       *       *       *

                              ----------                              

                       SARBANES-OXLEY ACT OF 2002

           *       *       *       *       *       *       *
TITLE IV--ENHANCED FINANCIAL DISCLOSURES

           *       *       *       *       *       *       *

SEC. 404. MANAGEMENT ASSESSMENT OF INTERNAL CONTROLS.

  (a) Rules Required.--The Commission shall prescribe rules 
requiring each annual report required by section 13(a) or 15(d) 
of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 
78o(d)) to contain an internal control report, which shall--
          (1) state the responsibility of management for 
        establishing and maintaining an adequate internal 
        control structure and procedures for financial 
        reporting; and
          (2) contain an assessment, as of the end of the most 
        recent fiscal year of the issuer, of the effectiveness 
        of the internal control structure and procedures of the 
        issuer for financial reporting.
  (b) Internal Control Evaluation and Reporting.--With respect 
to the internal control assessment required by subsection (a), 
each registered public accounting firm that prepares or issues 
the audit report for the issuer, other than an issuer that is 
an emerging growth company (as defined in section 3 of the 
Securities Exchange Act of 1934), shall attest to, and report 
on, the assessment made by the management of the issuer. An 
attestation made under this subsection shall be made in 
accordance with standards for attestation engagements issued or 
adopted by the Board. Any such attestation shall not be the 
subject of a separate engagement.
  (c) Exemption for Smaller Issuers.--Subsection (b) shall not 
apply with respect to any audit report prepared for an issuer 
that is neither a ``large accelerated filer'' nor an 
``accelerated filer'' as those terms are defined in Rule 12b-2 
of the Commission (17 C.F.R. 240.12b-2).
  (d) Temporary Exemption for Low-Revenue Issuers.--
          (1) Low-revenue exemption.--Subsection (b) shall not 
        apply with respect to an audit report prepared for an 
        issuer that--
                  (A) ceased to be an emerging growth company 
                on the last day of the fiscal year of the 
                issuer following the fifth anniversary of the 
                date of the first sale of common equity 
                securities of the issuer pursuant to an 
                effective registration statement under the 
                Securities Act of 1933;
                  (B) had average annual gross revenues of less 
                than $50,000,000 as of its most recently 
                completed fiscal year; and
                  (C) is not a large accelerated filer.
          (2) Expiration of temporary exemption.--An issuer 
        ceases to be eligible for the exemption described under 
        paragraph (1) at the earliest of--
                  (A) the last day of the fiscal year of the 
                issuer following the tenth anniversary of the 
                date of the first sale of common equity 
                securities of the issuer pursuant to an 
                effective registration statement under the 
                Securities Act of 1933;
                  (B) the last day of the fiscal year of the 
                issuer during which the average annual gross 
                revenues of the issuer exceed $50,000,000; or
                  (C) the date on which the issuer becomes a 
                large accelerated filer.
          (3) Definitions.--For purposes of this subsection:
                  (A) Average annual gross revenues.--The term 
                ``average annual gross revenues'' means the 
                total gross revenues of an issuer over its most 
                recently completed three fiscal years divided 
                by three.
                  (B) Emerging growth company.--The term 
                ``emerging growth company'' has the meaning 
                given such term under section 3 of the 
                Securities Exchange Act of 1934 (15 U.S.C. 
                78c).
                  (C) Large accelerated filer.--The term 
                ``large accelerated filer'' has the meaning 
                given that term under section 240.12b-2 of 
                title 17, Code of Federal Regulations, or any 
                successor thereto.

           *       *       *       *       *       *       *

                              ----------                              

       VICTIMS OF TRAFFICKING AND VIOLENCE PROTECTION ACT OF 2000

           *       *       *       *       *       *       *
DIVISION A--TRAFFICKING VICTIMS PROTECTION ACT OF 2000

           *       *       *       *       *       *       *

SEC. 105. INTERAGENCY TASK FORCE TO MONITOR AND COMBAT TRAFFICKING.

  (a) Establishment.--The President shall establish an 
Interagency Task Force to Monitor and Combat Trafficking.
  (b) Appointment.--The President shall appoint the members of 
the Task Force, which shall include the Secretary of State, the 
Administrator of the United States Agency for International 
Development, the Attorney General, the Secretary of Labor, the 
Secretary of Health and Human Services, the Director of 
National Intelligence, the Secretary of Defense, the Secretary 
of Homeland Security, the Secretary of Education, the Secretary 
of the Treasury, and such other officials as may be designated 
by the President.
  (c) Chairman.--The Task Force shall be chaired by the 
Secretary of State.
  (d) Activities of the Task Force.--The Task Force shall carry 
out the following activities:
          (1) Coordinate the implementation of this division.
          (2) Measure and evaluate progress of the United 
        States and other countries in the areas of trafficking 
        prevention, protection, and assistance to victims of 
        trafficking, and prosecution and enforcement against 
        traffickers, including the role of public corruption in 
        facilitating trafficking. The Task Force shall have 
        primary responsibility for assisting the Secretary of 
        State in the preparation of the reports described in 
        section 110.
          (3) Expand interagency procedures to collect and 
        organize data, including significant research and 
        resource information on domestic and international 
        trafficking. Any data collection procedures established 
        under this subsection shall respect the confidentiality 
        of victims of trafficking.
          (4) Engage in efforts to facilitate cooperation among 
        countries of origin, transit, and destination. Such 
        efforts shall aim to strengthen local and regional 
        capacities to prevent trafficking, prosecute 
        traffickers and assist trafficking victims, and shall 
        include initiatives to enhance cooperative efforts 
        between destination countries and countries of origin 
        and assist in the appropriate reintegration of 
        stateless victims of trafficking.
          (5) Examine the role of the international ``sex 
        tourism'' industry in the trafficking of persons and in 
        the sexual exploitation of women and children around 
        the world.
          (6) Engage in consultation and advocacy with 
        governmental and nongovernmental organizations, among 
        other entities, to advance the purposes of this 
        division, and make reasonable efforts to distribute 
        information to enable all relevant Federal Government 
        agencies to publicize the National Human Trafficking 
        Resource Center Hotline on their websites, in all 
        headquarters offices, and in all field offices 
        throughout the United States.
          (7) Not later than May 1, 2004, and annually 
        thereafter, the Attorney General shall submit to the 
        Committee on Ways and Means, the Committee on Foreign 
        Affairs, and the Committee on the Judiciary of the 
        House of Representatives and the Committee on Finance, 
        the Committee on Foreign Relations, and the Committee 
        on the Judiciary of the Senate, a report on Federal 
        agencies that are implementing any provision of this 
        division, or any amendment made by this division, which 
        shall include, at a minimum, information on--
                  (A) the number of persons who received 
                benefits or other services under subsections 
                (b) and (f) of section 107 in connection with 
                programs or activities funded or administered 
                by the Secretary of Health and Human Services, 
                the Secretary of Labor, the Attorney General, 
                the Board of Directors of the Legal Services 
                Corporation, and other appropriate Federal 
                agencies during the preceding fiscal year;
                  (B) the number of persons who have been 
                granted continued presence in the United States 
                under section 107(c)(3) during the preceding 
                fiscal year and the mean and median time taken 
                to adjudicate applications submitted under such 
                section, including the time from the receipt of 
                an application by law enforcement to the 
                issuance of continued presence, and a 
                description of any efforts being taken to 
                reduce the adjudication and processing time 
                while ensuring the safe and competent 
                processing of the applications;
                  (C) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                otherwise provided status under subparagraph 
                (T)(i) or (U)(i) of section 101(a)(15) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)) during the preceding fiscal year;
                  (D) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                status under clause (ii) of section 
                101(a)(15)(T) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(15)(T)) 
                during the preceding fiscal year, broken down 
                by the number of such persons described in 
                subclauses (I), (II), and (III) of such clause 
                (ii);
                  (E) the amount of Federal funds expended in 
                direct benefits paid to individuals described 
                in subparagraph (D) in conjunction with T visa 
                status;
                  (F) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                status under section 101(a)(15)(U)(i) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)(U)(i)) during the preceding fiscal 
                year;
                  (G) the mean and median time in which it 
                takes to adjudicate applications submitted 
                under the provisions of law set forth in 
                subparagraph (C), including the time between 
                the receipt of an application and the issuance 
                of a visa and work authorization;
                  (H) any efforts being taken to reduce the 
                adjudication and processing time, while 
                ensuring the safe and competent processing of 
                the applications;
                  (I) the number of persons who have been 
                charged or convicted under one or more of 
                sections 1581, 1583, 1584, 1589, 1590, 1591, 
                1592, or 1594 of title 18, United States Code, 
                during the preceding fiscal year and the 
                sentences imposed against each such person;
                  (J) the amount, recipient, and purpose of 
                each grant issued by any Federal agency to 
                carry out the purposes of sections 106 and 107 
                of this Act, or section 134 of the Foreign 
                Assistance Act of 1961, during the preceding 
                fiscal year;
                  (K) the nature of training conducted pursuant 
                to section 107(c)(4) during the preceding 
                fiscal year;
                  (L) the amount, recipient, and purpose of 
                each grant under section 202 and 204 of the 
                Trafficking Victims Protection Act of 2005;
                  (M) activities by the Department of Defense 
                to combat trafficking in persons, including--
                          (i) educational efforts for, and 
                        disciplinary actions taken against, 
                        members of the United States Armed 
                        Forces;
                          (ii) the development of materials 
                        used to train the armed forces of 
                        foreign countries;
                          (iii) all known trafficking in 
                        persons cases reported to the Under 
                        Secretary of Defense for Personnel and 
                        Readiness;
                          (iv) efforts to ensure that United 
                        States Government contractors and their 
                        employees or United States Government 
                        subcontractors and their employees do 
                        not engage in trafficking in persons; 
                        and
                          (v) all trafficking in persons 
                        activities of contractors reported to 
                        the Under Secretary of Defense for 
                        Acquisition, Technology, and Logistics;
                  (N) activities or actions by Federal 
                departments and agencies to enforce--
                          (i) section 106(g) and any similar 
                        law, regulation, or policy relating to 
                        United States Government contractors 
                        and their employees or United States 
                        Government subcontractors and their 
                        employees that engage in severe forms 
                        of trafficking in persons, the 
                        procurement of commercial sex acts, or 
                        the use of forced labor, including debt 
                        bondage;
                          (ii) section 307 of the Tariff Act of 
                        1930 (19 U.S.C. 1307; relating to 
                        prohibition on importation of convict-
                        made goods), including any 
                        determinations by the Secretary of 
                        Homeland Security to waive the 
                        restrictions of such section; and
                          (iii) prohibitions on the procurement 
                        by the United States Government of 
                        items or services produced by slave 
                        labor, consistent with Executive Order 
                        13107 (December 10, 1998);
                  (O) the activities undertaken by the Senior 
                Policy Operating Group to carry out its 
                responsibilities under subsection (g); and
                  (P) the activities undertaken by Federal 
                agencies to train appropriate State, tribal, 
                and local government and law enforcement 
                officials to identify victims of severe forms 
                of trafficking, including both sex and labor 
                trafficking;
                  (Q) the activities undertaken by Federal 
                agencies in cooperation with State, tribal, and 
                local law enforcement officials to identify, 
                investigate, and prosecute offenses under 
                sections 1581, 1583, 1584, 1589, 1590, 1591, 
                1592, 1594, 2251, 2251A, 2421, 2422, and 2423 
                of title 18, United States Code, or equivalent 
                State offenses, including, in each fiscal 
                year--
                          (i) the number, age, gender, country 
                        of origin, and citizenship status of 
                        victims identified for each offense;
                          (ii) the number of individuals 
                        charged, and the number of individuals 
                        convicted, under each offense;
                          (iii) the number of individuals 
                        referred for prosecution for State 
                        offenses, including offenses relating 
                        to the purchasing of commercial sex 
                        acts;
                          (iv) the number of victims granted 
                        continued presence in the United States 
                        under section 107(c)(3);
                          (v) the number of victims granted a 
                        visa or otherwise provided status under 
                        subparagraph (T)(i) or (U)(i) of 
                        section 101(a)(15) of the Immigration 
                        and Nationality Act (8 U.S.C. 
                        1101(a)(15));
                          (vi) the number of individuals 
                        required by a court order to pay 
                        restitution in connection with a 
                        violation of each offense under title 
                        18, United States Code, the amount of 
                        restitution required to be paid under 
                        each such order, and the amount of 
                        restitution actually paid pursuant to 
                        each such order; and
                          (vii) the age, gender, race, country 
                        of origin, country of citizenship, and 
                        description of the role in the offense 
                        of individuals convicted under each 
                        offense; and
                  (R) the activities undertaken by the 
                Department of Justice and the Department of 
                Health and Human Services to meet the specific 
                needs of minor victims of domestic trafficking, 
                including actions taken pursuant to subsection 
                (f) and section 202(a) of the Trafficking 
                Victims Protection Reauthorization Act of 2005 
                (42 U.S.C. 14044(a)), and the steps taken to 
                increase cooperation among Federal agencies to 
                ensure the effective and efficient use of 
                programs for which the victims are eligible.
  (e) Office To Monitor and Combat Trafficking.--
          (1) In general.--The Secretary of State shall 
        establish within the Department of State an Office to 
        Monitor and Combat Trafficking, which shall provide 
        assistance to the Task Force. Any such Office shall be 
        headed by a Director, who shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate, with the rank of Ambassador-at-Large. The 
        Director shall have the primary responsibility for 
        assisting the Secretary of State in carrying out the 
        purposes of this division and may have additional 
        responsibilities as determined by the Secretary. The 
        Director shall consult with nongovernmental 
        organizations and multilateral organizations, and with 
        trafficking victims or other affected persons. The 
        Director shall have the authority to take evidence in 
        public hearings or by other means. The agencies 
        represented on the Task Force are authorized to provide 
        staff to the Office on a nonreimbursable basis.
          (2) United states assistance.--The Director shall be 
        responsible for--
                  (A) all policy, funding, and programming 
                decisions regarding funds made available for 
                trafficking in persons programs that are 
                centrally controlled by the Office to Monitor 
                and Combat Trafficking; and
                  (B) coordinating any trafficking in persons 
                programs of the Department of State or the 
                United States Agency for International 
                Development that are not centrally controlled 
                by the Director.
  (f) Regional Strategies for Combating Trafficking in 
Persons.--Each regional bureau in the Department of State shall 
contribute to the realization of the anti-trafficking goals and 
objectives of the Secretary of State. Each year, in cooperation 
with the Office to Monitor and Combat Trafficking in Persons, 
each regional bureau shall submit a list of anti-trafficking 
goals and objectives to the Secretary of State for each country 
in the geographic area of responsibilities of the regional 
bureau. Host governments shall be informed of the goals and 
objectives for their particular country and, to the extent 
possible, host government officials should be consulted 
regarding the goals and objectives.
  (g) Senior Policy Operating Group.--
          (1) Establishment.--There shall be established within 
        the executive branch a Senior Policy Operating Group.
          (2) Membership; related matters.--
                  (A) In general.--The Operating Group shall 
                consist of the senior officials designated as 
                representatives of the appointed members of the 
                Task Force (pursuant to Executive Order No. 
                13257 of February 13, 2002).
                  (B) Chairperson.--The Operating Group shall 
                be chaired by the Director of the Office to 
                Monitor and Combat Trafficking of the 
                Department of State.
                  (C) Meetings.--The Operating Group shall meet 
                on a regular basis at the call of the 
                Chairperson.
          (3) Duties.--The Operating Group shall coordinate 
        activities of Federal departments and agencies 
        regarding policies (including grants and grant 
        policies) involving the international trafficking in 
        persons and the implementation of this division.
          (4) Availability of information.--Each Federal 
        department or agency represented on the Operating Group 
        shall fully share all information with such Group 
        regarding the department or agency's plans, before and 
        after final agency decisions are made, on all matters 
        relating to grants, grant policies, and other 
        significant actions regarding the international 
        trafficking in persons and the implementation of this 
        division.
          (5) Regulations.--Not later than 90 days after the 
        date of the enactment of the Trafficking Victims 
        Protection Reauthorization Act of 2003, the President 
        shall promulgate regulations to implement this section, 
        including regulations to carry out paragraph (4).

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                              ----------                              

                      TITLE 31, UNITED STATES CODE

SUBTITLE I--GENERAL

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CHAPTER 3--DEPARTMENT OF THE TREASURY

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SUBCHAPTER I--ORGANIZATION

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Sec. 312. Terrorism and Financial Intelligence

  (a) Office of Terrorism and Financial Intelligence.--
          (1) Establishment.--There is established within the 
        Department of the Treasury the Office of Terrorism and 
        Financial Intelligence (in this section referred to as 
        ``OTFI''), which shall be the successor to any such 
        office in existence on the date of enactment of this 
        section.
          (2) Leadership.--
                  (A) Undersecretary.--There is established 
                within the Department of the Treasury, the 
                Office of the Undersecretary for Terrorism and 
                Financial Crimes, who shall serve as the head 
                of the OTFI, and shall report to the Secretary 
                of the Treasury through the Deputy Secretary of 
                the Treasury. The Office of the Undersecretary 
                for Terrorism and Financial Crimes shall be the 
                successor to the Office of the Undersecretary 
                for Enforcement.
                  (B) Appointment.--The Undersecretary for 
                Terrorism and Financial Crimes shall be 
                appointed by the President, by and with the 
                advice and consent of the Senate.
          (3) Assistant Secretary for Terrorist Financing.--
                  (A) Establishment.--There is established 
                within the OTFI the position of Assistant 
                Secretary for Terrorist Financing.
                  (B) Appointment.--The Assistant Secretary for 
                Terrorist Financing shall be appointed by the 
                President, by and with the advice and consent 
                of the Senate.
                  (C) Duties.--The Assistant Secretary for 
                Terrorist Financing shall be responsible for 
                formulating and coordinating the counter 
                terrorist financing and anti-money laundering 
                efforts of the Department of the Treasury, and 
                shall report directly to the Undersecretary for 
                Terrorism and Financial Crimes.
          (4) Functions.--The functions of the OTFI include 
        providing policy, strategic, and operational direction 
        to the Department on issues relating to--
                  (A) implementation of titles I and II of the 
                Bank Secrecy Act;
                  (B) United States economic sanctions 
                programs;
                  (C) combating terrorist financing;
                  (D) combating financial crimes, including 
                money laundering, counterfeiting, and other 
                offenses threatening the integrity of the 
                banking and financial systems;
                  (E) combating illicit financing relating to 
                severe forms of trafficking in persons;
                  [(E)] (F) other enforcement matters;
                  [(F)] (G) those intelligence analysis and 
                coordination functions described in subsection 
                (b); and
                  [(G)] (H) the security functions and programs 
                of the Department of the Treasury.
          (5) Reports to Congress on proposed measures.--The 
        Undersecretary for Terrorism and Financial Crimes and 
        the Assistant Secretary for Terrorist Financing shall 
        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 
        72 hours after proposing by rule, regulation, order, or 
        otherwise, any measure to reorganize the structure of 
        the Department for combatting money laundering and 
        terrorist financing, before any such proposal becomes 
        effective.
          (6) Other offices within OTFI.--Notwithstanding any 
        other provision of law, the following offices of the 
        Department of the Treasury shall be within the OTFI:
                  (A) The Office of the Assistant Secretary for 
                Intelligence and Analysis, which shall report 
                directly to the Undersecretary for Terrorism 
                and Financial Crimes.
                  (B) The Office of the Assistant Secretary for 
                Terrorist Financing, which shall report 
                directly to the Undersecretary for Terrorism 
                and Financial Crimes.
                  (C) The Office of Foreign Assets Control (in 
                this section referred to as the ``OFAC''), 
                which shall report directly to the 
                Undersecretary for Terrorism and Financial 
                Crimes.
                  (D) The Executive Office for Asset 
                Forfeiture, which shall report to the 
                Undersecretary for Terrorism and Financial 
                Crimes.
                  (E) The Office of Intelligence and Analysis 
                (in this section referred to as the ``OIA''), 
                which shall report to the Assistant Secretary 
                for Intelligence and Analysis.
                  (F) The Office of Terrorist Financing, which 
                shall report to the Assistant Secretary for 
                Terrorist Financing.
          (7) FinCEN.--
                  (A) Reporting to Undersecretary.--The 
                Financial Crimes Enforcement Network (in this 
                section referred to as ``FinCEN''), a bureau of 
                the Department of the Treasury, shall report to 
                the Undersecretary for Terrorism and Financial 
                Crimes. The Undersecretary for Terrorism and 
                Financial Crimes may not redelegate its 
                reporting authority over FinCEN.
                  (B) Office of Compliance.--There is 
                established within FinCEN, an Office of 
                Compliance.
          (8) Interagency coordination.--The Secretary of the 
        Treasury, after consultation with the Undersecretary 
        for Terrorism and Financial Crimes, shall designate an 
        office within the OTFI that shall coordinate efforts to 
        combat the illicit financing of severe forms of 
        trafficking in persons with--
                  (A) other offices of the Department of the 
                Treasury;
                  (B) other Federal agencies, including--
                          (i) the Office to Monitor and Combat 
                        Trafficking in Persons of the 
                        Department of State; and
                          (ii) the Interagency Task Force to 
                        Monitor and Combat Trafficking;
                  (C) State and local law enforcement agencies; 
                and
                  (D) foreign governments.
          (9) Definition.--In this subsection, the term 
        ``severe forms of trafficking in persons'' has the 
        meaning given such term in section 103 of the 
        Trafficking Victims Protection Act of 2000 (22 U.S.C. 
        7102).
  (b) Office of Intelligence and Analysis.--
          (1) Assistant Secretary for Intelligence and 
        Analysis.--The Assistant Secretary for Intelligence and 
        Analysis shall head the OIA.
          (2) Responsibilities.--The OIA shall be responsible 
        for the receipt, analysis, collation, and dissemination 
        of intelligence and counterintelligence information 
        related to the operations and responsibilities of the 
        entire Department of the Treasury, including all 
        components and bureaus of the Department.
          (3) Primary functions.--The primary functions of the 
        OIA are--
                  (A) to build a robust analytical capability 
                on terrorist finance by coordinating and 
                overseeing work involving intelligence analysts 
                in all components of the Department of the 
                Treasury, focusing on the highest priorities of 
                the Department, as well as ensuring that the 
                existing intelligence needs of the OFAC and 
                FinCEN are met; and
                  (B) to provide intelligence support to senior 
                officials of the Department on a wide range of 
                international economic and other relevant 
                issues.
          (4) Other functions and duties.--The OIA shall--
                  (A) carry out the intelligence support 
                functions that are assigned, to the Office of 
                Intelligence Support under section 311 
                (pursuant to section 105 of the Intelligence 
                Authorization Act for Fiscal Year 2004);
                  (B) serve in a liaison capacity with the 
                intelligence community; and
                  (C) represent the Department in various 
                intelligence related activities.
          (5) Duties of the Assistant Secretary.--The Assistant 
        Secretary for Intelligence and Analysis shall serve as 
        the Senior Officer Intelligence Community, and shall 
        represent the Department in intelligence community 
        fora, including the National Foreign Intelligence Board 
        committees and the Intelligence Community Management 
        Staff.
  (c) Delegation.--To the extent that any authorities, powers, 
and responsibilities over enforcement matters delegated to the 
Undersecretary for Terrorism and Financial Crimes, or the 
positions of Assistant Secretary for Terrorism and Financial 
Crimes, Assistant Secretary for Enforcement and Operations, or 
Deputy Assistant Secretary for Terrorist Financing and 
Financial Crimes, have not been transferred to the Department 
of Homeland Security, the Department of Justice, or the 
Assistant Secretary for Tax Policy (related to the customs 
revenue functions of the Bureau of Alcohol and Tobacco Tax and 
Trade), those remaining authorities, powers, and 
responsibilities are delegated to the Undersecretary for 
Terrorism and Financial Crimes.
  (d) Designation as Enforcement Organization.--The Office of 
Terrorism and Financial Intelligence (including any components 
thereof) is designated as a law enforcement organization of the 
Department of the Treasury for purposes of section 9705 of 
title 31, United States Code, and other relevant authorities.
  (e) Use of Existing Resources.--The Secretary may employ 
personnel, facilities, and other Department of the Treasury 
resources available to the Secretary on the date of enactment 
of this section in carrying out this section, except as 
otherwise prohibited by law.
  (f) References.--References in this section to the 
``Secretary'', ``Undersecretary'', ``Deputy Secretary'', 
``Deputy Assistant Secretary'', ``Office'', ``Assistant 
Secretary'', and ``Department'' are references to positions and 
offices of the Department of the Treasury, unless otherwise 
specified.

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                              ----------                              

               TRAFFICKING VICTIMS PROTECTION ACT OF 2000

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DIVISION A--TRAFFICKING VICTIMS PROTECTION ACT OF 2000

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SEC. 105. INTERAGENCY TASK FORCE TO MONITOR AND COMBAT TRAFFICKING.

  (a) Establishment.--The President shall establish an 
Interagency Task Force to Monitor and Combat Trafficking.
  (b) Appointment.--The President shall appoint the members of 
the Task Force, which shall include the Secretary of State, the 
Administrator of the United States Agency for International 
Development, the Attorney General, the Secretary of Labor, the 
Secretary of Health and Human Services, the Director of 
National Intelligence, the Secretary of Defense, the Secretary 
of Homeland Security, the Secretary of Education, and such 
other officials as may be designated by the President.
  (c) Chairman.--The Task Force shall be chaired by the 
Secretary of State.
  (d) Activities of the Task Force.--The Task Force shall carry 
out the following activities:
          (1) Coordinate the implementation of this division.
          (2) Measure and evaluate progress of the United 
        States and other countries in the areas of trafficking 
        prevention, protection, and assistance to victims of 
        trafficking, and prosecution and enforcement against 
        traffickers, including the role of public corruption in 
        facilitating trafficking. The Task Force shall have 
        primary responsibility for assisting the Secretary of 
        State in the preparation of the reports described in 
        section 110.
          (3) Expand interagency procedures to collect and 
        organize data, including significant research and 
        resource information on domestic and international 
        trafficking. Any data collection procedures established 
        under this subsection shall respect the confidentiality 
        of victims of trafficking.
          (4) Engage in efforts to facilitate cooperation among 
        countries of origin, transit, and destination. Such 
        efforts shall aim to strengthen local and regional 
        capacities to prevent trafficking, prosecute 
        traffickers and assist trafficking victims, and shall 
        include initiatives to enhance cooperative efforts 
        between destination countries and countries of origin 
        and assist in the appropriate reintegration of 
        stateless victims of trafficking.
          (5) Examine the role of the international ``sex 
        tourism'' industry in the trafficking of persons and in 
        the sexual exploitation of women and children around 
        the world.
          (6) Engage in consultation and advocacy with 
        governmental and nongovernmental organizations, among 
        other entities, to advance the purposes of this 
        division, and make reasonable efforts to distribute 
        information to enable all relevant Federal Government 
        agencies to publicize the National Human Trafficking 
        Resource Center Hotline on their websites, in all 
        headquarters offices, and in all field offices 
        throughout the United States.
          (7) Not later than May 1, 2004, and annually 
        thereafter, the Attorney General shall submit to the 
        Committee on Ways and Means, the Committee on Foreign 
        Affairs, the Committee on Financial Services, and the 
        Committee on the Judiciary of the House of 
        Representatives and the Committee on Finance, the 
        Committee on Foreign Relations, the Committee on 
        Banking, Housing, and Urban Affairs, and the Committee 
        on the Judiciary of the Senate, a report on Federal 
        agencies that are implementing any provision of this 
        division, or any amendment made by this division, which 
        shall include, at a minimum, information on--
                  (A) the number of persons who received 
                benefits or other services under subsections 
                (b) and (f) of section 107 in connection with 
                programs or activities funded or administered 
                by the Secretary of Health and Human Services, 
                the Secretary of Labor, the Attorney General, 
                the Board of Directors of the Legal Services 
                Corporation, and other appropriate Federal 
                agencies during the preceding fiscal year;
                  (B) the number of persons who have been 
                granted continued presence in the United States 
                under section 107(c)(3) during the preceding 
                fiscal year and the mean and median time taken 
                to adjudicate applications submitted under such 
                section, including the time from the receipt of 
                an application by law enforcement to the 
                issuance of continued presence, and a 
                description of any efforts being taken to 
                reduce the adjudication and processing time 
                while ensuring the safe and competent 
                processing of the applications;
                  (C) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                otherwise provided status under subparagraph 
                (T)(i) or (U)(i) of section 101(a)(15) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)) during the preceding fiscal year;
                  (D) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                status under clause (ii) of section 
                101(a)(15)(T) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(15)(T)) 
                during the preceding fiscal year, broken down 
                by the number of such persons described in 
                subclauses (I), (II), and (III) of such clause 
                (ii);
                  (E) the amount of Federal funds expended in 
                direct benefits paid to individuals described 
                in subparagraph (D) in conjunction with T visa 
                status;
                  (F) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                status under section 101(a)(15)(U)(i) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)(U)(i)) during the preceding fiscal 
                year;
                  (G) the mean and median time in which it 
                takes to adjudicate applications submitted 
                under the provisions of law set forth in 
                subparagraph (C), including the time between 
                the receipt of an application and the issuance 
                of a visa and work authorization;
                  (H) any efforts being taken to reduce the 
                adjudication and processing time, while 
                ensuring the safe and competent processing of 
                the applications;
                  (I) the number of persons who have been 
                charged or convicted under one or more of 
                sections 1581, 1583, 1584, 1589, 1590, 1591, 
                1592, or 1594 of title 18, United States Code, 
                during the preceding fiscal year and the 
                sentences imposed against each such person;
                  (J) the amount, recipient, and purpose of 
                each grant issued by any Federal agency to 
                carry out the purposes of sections 106 and 107 
                of this Act, or section 134 of the Foreign 
                Assistance Act of 1961, during the preceding 
                fiscal year;
                  (K) the nature of training conducted pursuant 
                to section 107(c)(4) during the preceding 
                fiscal year;
                  (L) the amount, recipient, and purpose of 
                each grant under section 202 and 204 of the 
                Trafficking Victims Protection Act of 2005;
                  (M) activities by the Department of Defense 
                to combat trafficking in persons, including--
                          (i) educational efforts for, and 
                        disciplinary actions taken against, 
                        members of the United States Armed 
                        Forces;
                          (ii) the development of materials 
                        used to train the armed forces of 
                        foreign countries;
                          (iii) all known trafficking in 
                        persons cases reported to the Under 
                        Secretary of Defense for Personnel and 
                        Readiness;
                          (iv) efforts to ensure that United 
                        States Government contractors and their 
                        employees or United States Government 
                        subcontractors and their employees do 
                        not engage in trafficking in persons; 
                        and
                          (v) all trafficking in persons 
                        activities of contractors reported to 
                        the Under Secretary of Defense for 
                        Acquisition, Technology, and Logistics;
                  (N) activities or actions by Federal 
                departments and agencies to enforce--
                          (i) section 106(g) and any similar 
                        law, regulation, or policy relating to 
                        United States Government contractors 
                        and their employees or United States 
                        Government subcontractors and their 
                        employees that engage in severe forms 
                        of trafficking in persons, the 
                        procurement of commercial sex acts, or 
                        the use of forced labor, including debt 
                        bondage;
                          (ii) section 307 of the Tariff Act of 
                        1930 (19 U.S.C. 1307; relating to 
                        prohibition on importation of convict-
                        made goods), including any 
                        determinations by the Secretary of 
                        Homeland Security to waive the 
                        restrictions of such section; and
                          (iii) prohibitions on the procurement 
                        by the United States Government of 
                        items or services produced by slave 
                        labor, consistent with Executive Order 
                        13107 (December 10, 1998);
                  (O) the activities undertaken by the Senior 
                Policy Operating Group to carry out its 
                responsibilities under subsection (g); and
                  (P) the activities undertaken by Federal 
                agencies to train appropriate State, tribal, 
                and local government and law enforcement 
                officials to identify victims of severe forms 
                of trafficking, including both sex and labor 
                trafficking;
                  (Q) the activities undertaken by Federal 
                agencies in cooperation with State, tribal, and 
                local law enforcement officials to identify, 
                investigate, and prosecute offenses under 
                sections 1581, 1583, 1584, 1589, 1590, 1591, 
                1592, 1594, 2251, 2251A, 2421, 2422, and 2423 
                of title 18, United States Code, or equivalent 
                State offenses, including, in each fiscal 
                year--
                          (i) the number, age, gender, country 
                        of origin, and citizenship status of 
                        victims identified for each offense;
                          (ii) the number of individuals 
                        charged, and the number of individuals 
                        convicted, under each offense;
                          (iii) the number of individuals 
                        referred for prosecution for State 
                        offenses, including offenses relating 
                        to the purchasing of commercial sex 
                        acts;
                          (iv) the number of victims granted 
                        continued presence in the United States 
                        under section 107(c)(3);
                          (v) the number of victims granted a 
                        visa or otherwise provided status under 
                        subparagraph (T)(i) or (U)(i) of 
                        section 101(a)(15) of the Immigration 
                        and Nationality Act (8 U.S.C. 
                        1101(a)(15));
                          (vi) the number of individuals 
                        required by a court order to pay 
                        restitution in connection with a 
                        violation of each offense under title 
                        18, United States Code, the amount of 
                        restitution required to be paid under 
                        each such order, and the amount of 
                        restitution actually paid pursuant to 
                        each such order; and
                          (vii) the age, gender, race, country 
                        of origin, country of citizenship, and 
                        description of the role in the offense 
                        of individuals convicted under each 
                        offense[; and];
                  (R) the activities undertaken by the 
                Department of Justice and the Department of 
                Health and Human Services to meet the specific 
                needs of minor victims of domestic trafficking, 
                including actions taken pursuant to subsection 
                (f) and section 202(a) of the Trafficking 
                Victims Protection Reauthorization Act of 2005 
                (42 U.S.C. 14044(a)), and the steps taken to 
                increase cooperation among Federal agencies to 
                ensure the effective and efficient use of 
                programs for which the victims are eligible[.]; 
                and
                  (S) the efforts of the United States to 
                eliminate money laundering relating to severe 
                forms of trafficking in persons and the number 
                of investigations, arrests, indictments, and 
                convictions in money laundering cases with a 
                nexus to severe forms of trafficking in 
                persons.
  (e) Office To Monitor and Combat Trafficking.--
          (1) In general.--The Secretary of State shall 
        establish within the Department of State an Office to 
        Monitor and Combat Trafficking, which shall provide 
        assistance to the Task Force. Any such Office shall be 
        headed by a Director, who shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate, with the rank of Ambassador-at-Large. The 
        Director shall have the primary responsibility for 
        assisting the Secretary of State in carrying out the 
        purposes of this division and may have additional 
        responsibilities as determined by the Secretary. The 
        Director shall consult with nongovernmental 
        organizations and multilateral organizations, and with 
        trafficking victims or other affected persons. The 
        Director shall have the authority to take evidence in 
        public hearings or by other means. The agencies 
        represented on the Task Force are authorized to provide 
        staff to the Office on a nonreimbursable basis.
          (2) United states assistance.--The Director shall be 
        responsible for--
                  (A) all policy, funding, and programming 
                decisions regarding funds made available for 
                trafficking in persons programs that are 
                centrally controlled by the Office to Monitor 
                and Combat Trafficking; and
                  (B) coordinating any trafficking in persons 
                programs of the Department of State or the 
                United States Agency for International 
                Development that are not centrally controlled 
                by the Director.
  (f) Regional Strategies for Combating Trafficking in 
Persons.--Each regional bureau in the Department of State shall 
contribute to the realization of the anti-trafficking goals and 
objectives of the Secretary of State. Each year, in cooperation 
with the Office to Monitor and Combat Trafficking in Persons, 
each regional bureau shall submit a list of anti-trafficking 
goals and objectives to the Secretary of State for each country 
in the geographic area of responsibilities of the regional 
bureau. Host governments shall be informed of the goals and 
objectives for their particular country and, to the extent 
possible, host government officials should be consulted 
regarding the goals and objectives.
  (g) Senior Policy Operating Group.--
          (1) Establishment.--There shall be established within 
        the executive branch a Senior Policy Operating Group.
          (2) Membership; related matters.--
                  (A) In general.--The Operating Group shall 
                consist of the senior officials designated as 
                representatives of the appointed members of the 
                Task Force (pursuant to Executive Order No. 
                13257 of February 13, 2002).
                  (B) Chairperson.--The Operating Group shall 
                be chaired by the Director of the Office to 
                Monitor and Combat Trafficking of the 
                Department of State.
                  (C) Meetings.--The Operating Group shall meet 
                on a regular basis at the call of the 
                Chairperson.
          (3) Duties.--The Operating Group shall coordinate 
        activities of Federal departments and agencies 
        regarding policies (including grants and grant 
        policies) involving the international trafficking in 
        persons and the implementation of this division.
          (4) Availability of information.--Each Federal 
        department or agency represented on the Operating Group 
        shall fully share all information with such Group 
        regarding the department or agency's plans, before and 
        after final agency decisions are made, on all matters 
        relating to grants, grant policies, and other 
        significant actions regarding the international 
        trafficking in persons and the implementation of this 
        division.
          (5) Regulations.--Not later than 90 days after the 
        date of the enactment of the Trafficking Victims 
        Protection Reauthorization Act of 2003, the President 
        shall promulgate regulations to implement this section, 
        including regulations to carry out paragraph (4).

           *       *       *       *       *       *       *

SEC. 108. MINIMUM STANDARDS FOR THE ELIMINATION OF TRAFFICKING.

  (a) Minimum Standards.--For purposes of this division, the 
minimum standards for the elimination of trafficking applicable 
to the government of a country of origin, transit, or 
destination for victims of severe forms of trafficking are the 
following:
          (1) The government of the country should prohibit 
        severe forms of trafficking in persons and punish acts 
        of such trafficking.
          (2) For the knowing commission of any act of sex 
        trafficking involving force, fraud, coercion, or in 
        which the victim of sex trafficking is a child 
        incapable of giving meaningful consent, or of 
        trafficking which includes rape or kidnapping or which 
        causes a death, the government of the country should 
        prescribe punishment commensurate with that for grave 
        crimes, such as forcible sexual assault.
          (3) For the knowing commission of any act of a severe 
        form of trafficking in persons, the government of the 
        country should prescribe punishment that is 
        sufficiently stringent to deter and that adequately 
        reflects the heinous nature of the offense.
          (4) The government of the country should make serious 
        and sustained efforts to eliminate severe forms of 
        trafficking in persons.
  (b) Criteria.--In determinations under subsection (a)(4), the 
following factors should be considered as indicia of serious 
and sustained efforts to eliminate severe forms of trafficking 
in persons:
          (1) Whether the government of the country vigorously 
        investigates and prosecutes acts of severe forms of 
        trafficking in persons, and convicts and sentences 
        persons responsible for such acts, that take place 
        wholly or partly within the territory of the country, 
        including, as appropriate, requiring incarceration of 
        individuals convicted of such acts. For purposes of the 
        preceding sentence, suspended or significantly-reduced 
        sentences for convictions of principal actors in cases 
        of severe forms of trafficking in persons shall be 
        considered, on a case-by-case basis, whether to be 
        considered an indicator of serious and sustained 
        efforts to eliminate severe forms of trafficking in 
        persons. After reasonable requests from the Department 
        of State for data regarding investigations, 
        prosecutions, convictions, and sentences, a government 
        which does not provide such data, consistent with the 
        capacity of such government to obtain such data, shall 
        be presumed not to have vigorously investigated, 
        prosecuted, convicted or sentenced such acts. During 
        the periods prior to the annual report submitted on 
        June 1, 2004, and on June 1, 2005, and the periods 
        afterwards until September 30 of each such year, the 
        Secretary of State may disregard the presumption 
        contained in the preceding sentence if the government 
        has provided some data to the Department of State 
        regarding such acts and the Secretary has determined 
        that the government is making a good faith effort to 
        collect such data.
          (2) Whether the government of the country protects 
        victims of severe forms of trafficking in persons and 
        encourages their assistance in the investigation and 
        prosecution of such trafficking, including provisions 
        for legal alternatives to their removal to countries in 
        which they would face retribution or hardship, and 
        ensures that victims are not inappropriately 
        incarcerated, fined, or otherwise penalized solely for 
        unlawful acts as a direct result of being trafficked, 
        including by providing training to law enforcement and 
        immigration officials regarding the identification and 
        treatment of trafficking victims using approaches that 
        focus on the needs of the victims.
          (3) Whether the government of the country has adopted 
        measures to prevent severe forms of trafficking in 
        persons, such as measures to inform and educate the 
        public, including potential victims, about the causes 
        and consequences of severe forms of trafficking in 
        persons, measures to establish the identity of local 
        populations, including birth registration, citizenship, 
        and nationality, measures to ensure that its nationals 
        who are deployed abroad as part of a diplomatic, 
        peacekeeping, or other similar mission do not engage in 
        or facilitate severe forms of trafficking in persons or 
        exploit victims of such trafficking, a transparent 
        system for remediating or punishing such public 
        officials as a deterrent, measures to prevent the use 
        of forced labor or child labor in violation of 
        international standards, effective bilateral, 
        multilateral, or regional information sharing and 
        cooperation arrangements with other countries, and 
        effective policies or laws regulating foreign labor 
        recruiters and holding them civilly and criminally 
        liable for fraudulent recruiting.
          (4) Whether the government of the country cooperates 
        with other governments in the investigation and 
        prosecution of severe forms of trafficking in persons 
        and has entered into bilateral, multilateral, or 
        regional law enforcement cooperation and coordination 
        arrangements with other countries.
          (5) Whether the government of the country extradites 
        persons charged with acts of severe forms of 
        trafficking in persons on substantially the same terms 
        and to substantially the same extent as persons charged 
        with other serious crimes (or, to the extent such 
        extradition would be inconsistent with the laws of such 
        country or with international agreements to which the 
        country is a party, whether the government is taking 
        all appropriate measures to modify or replace such laws 
        and treaties so as to permit such extradition).
          (6) Whether the government of the country monitors 
        immigration and emigration patterns for evidence of 
        severe forms of trafficking in persons and whether law 
        enforcement agencies of the country respond to any such 
        evidence in a manner that is consistent with the 
        vigorous investigation and prosecution of acts of such 
        trafficking, as well as with the protection of human 
        rights of victims and the internationally recognized 
        human right to leave any country, including one's own, 
        and to return to one's own country.
          (7) Whether the government of the country vigorously 
        investigates, prosecutes, convicts, and sentences 
        public officials, including diplomats and soldiers, who 
        participate in or facilitate severe forms of 
        trafficking in persons, including nationals of the 
        country who are deployed abroad as part of a 
        diplomatic, peacekeeping, or other similar mission who 
        engage in or facilitate severe forms of trafficking in 
        persons or exploit victims of such trafficking, and 
        takes all appropriate measures against officials who 
        condone such trafficking. A government's failure to 
        appropriately address public allegations against such 
        public officials, especially once such officials have 
        returned to their home countries, shall be considered 
        inaction under these criteria. After reasonable 
        requests from the Department of State for data 
        regarding such investigations, prosecutions, 
        convictions, and sentences, a government which does not 
        provide such data consistent with its resources shall 
        be presumed not to have vigorously investigated, 
        prosecuted, convicted, or sentenced such acts. During 
        the periods prior to the annual report submitted on 
        June 1, 2004, and on June 1, 2005, and the periods 
        afterwards until September 30 of each such year, the 
        Secretary of State may disregard the presumption 
        contained in the preceding sentence if the government 
        has provided some data to the Department of State 
        regarding such acts and the Secretary has determined 
        that the government is making a good faith effort to 
        collect such data.
          (8) Whether the percentage of victims of severe forms 
        of trafficking in the country that are non-citizens of 
        such countries is insignificant.
          (9) Whether the government has entered into 
        effective, transparent partnerships, cooperative 
        arrangements, or agreements that have resulted in 
        concrete and measurable outcomes with--
                  (A) domestic civil society organizations, 
                private sector entities, or international 
                nongovernmental organizations, or into 
                multilateral or regional arrangements or 
                agreements, to assist the government's efforts 
                to prevent trafficking, protect victims, and 
                punish traffickers; or
                  (B) the United States toward agreed goals and 
                objectives in the collective fight against 
                trafficking.
          (10) Whether the government of the country, 
        consistent with the capacity of such government, 
        systematically monitors its efforts to satisfy the 
        criteria described in paragraphs (1) through (8) and 
        makes available publicly a periodic assessment of such 
        efforts.
          (11) Whether the government of the country achieves 
        appreciable progress in eliminating severe forms of 
        trafficking when compared to the assessment in the 
        previous year.
          (12) Whether the government of the country has made 
        serious and sustained efforts to reduce the demand 
        for--
                  (A) commercial sex acts; and
                  (B) participation in international sex 
                tourism by nationals of the country.
          (13) Whether the government of the country, 
        consistent with the capacity of the country, has in 
        effect a framework to prevent financial transactions 
        involving the proceeds of severe forms of trafficking 
        in persons, and is taking steps to implement such a 
        framework, including by investigating, prosecuting, 
        convicting, and sentencing individuals who attempt or 
        conduct such transactions.

           *       *       *       *       *       *       *

                              ----------                              

                 SMALL BUSINESS INVESTMENT ACT OF 1958

           *       *       *       *       *       *       *
                TITLE III--INVESTMENT DIVISION PROGRAMS

Part A--Small Business Investment Companies

           *       *       *       *       *       *       *

                          capital requirements

  Sec. 302.
  (a) Amount.--
          (1) In general.--Except as provided in paragraph (2), 
        the private capital of each licensee shall be not less 
        than--
                  (A) $5,000,000; or
                  (B) $10,000,000, with respect to each 
                licensee authorized or seeking authority to 
                issue participating securities to be purchased 
                or guaranteed by the Administration under this 
                Act.
          (2) Exception.--The Administrator may, in the 
        discretion of the Administrator and based on a showing 
        of special circumstances and good cause, permit the 
        private capital of a licensee authorized or seeking 
        authorization to issue participating securities to be 
        purchased or guaranteed by the Administration to be 
        less than $10,000,000, but not less than $5,000,000, if 
        the Administrator determines that such action would not 
        create or otherwise contribute to an unreasonable risk 
        of default or loss to the Federal Government.
          (3) Adequacy.--In addition to the requirements of 
        paragraph (1), the Administrator shall--
                  (A) determine whether the private capital of 
                each licensee is adequate to assure a 
                reasonable prospect that the licensee will be 
                operated soundly and profitably, and managed 
                actively and prudently in accordance with its 
                articles; and
                  (B) determine that the licensee will be able 
                both prior to licensing and prior to approving 
                any request for financing, to make periodic 
                payments on any debt of the company which is 
                interest bearing and shall take into 
                consideration the income which the company 
                anticipates on its contemplated investments, 
                the experience of the company's owners and 
                managers, the history of the company as an 
                entity, if any, and the company's financial 
                resources.
          (4) Exemption from capital requirements.--The 
        Administrator may, in the discretion of the 
        Administrator, approve leverage for any licensee 
        licensed under subsection (c) or (d) of section 301 
        before the date of enactment of the Small Business 
        Program Improvement Act of 1996 that does not meet the 
        capital requirements of paragraph (1), if--
                  (A) the licensee certifies in writing that 
                not less 50 percent of the aggregate dollar 
                amount of its financings after the date of 
                enactment of the Small Business Program 
                Improvement Act of 1996 will be provided to 
                smaller enterprises; and
                  (B) the Administrator determines that such 
                action would not create or otherwise contribute 
                to an unreasonable risk of default or loss to 
                the United States Government.
  (b) Financial Institution Investments.--
          (1) Certain banks.--Notwithstanding the provisions of 
        section 6(a)(1) of the Bank Holding Company Act of 
        1956, any national bank, or any member bank of the 
        Federal Reserve System or nonmember insured bank to the 
        extent permitted under applicable State law, may invest 
        in any 1 or more small business investment companies, 
        or in any entity established to invest solely in small 
        business investment companies, except that in no event 
        shall the total amount of such investments of any such 
        bank exceed 5 percent of the capital and surplus of the 
        bank or, subject to the approval of the appropriate 
        Federal banking agency, 15 percent of such capital and 
        surplus.
          (2) Certain savings associations.--Notwithstanding 
        any other provision of law, any Federal savings 
        association may invest in any one or more small 
        business investment companies, or in any entity 
        established to invest solely in small business 
        investment companies, except that in no event may the 
        total amount of such investments by any such Federal 
        savings association exceed 5 percent of the capital and 
        surplus of the Federal savings association or, subject 
        to the approval of the appropriate Federal banking 
        agency, 15 percent of such capital and surplus.
          (3) Appropriate federal banking agency defined.--For 
        purposes of this subsection, the term ``appropriate 
        Federal banking agency'' has the meaning given that 
        term under section 3 of the Federal Deposit Insurance 
        Act.
  (c) Diversification of Ownership.--The Administrator shall 
ensure that the management of each licensee licensed after the 
date of enactment of the Small Business Program Improvement Act 
of 1996 is sufficiently diversified from and unaffiliated with 
the ownership of the licensee in a manner that ensures 
independence and objectivity in the financial management and 
oversight of the investments and operations of the licensee.

           *       *       *       *       *       *       *

                              ----------                              

                         GRAMM-LEACH-BLILEY ACT

           *       *       *       *       *       *       *
                            TITLE V--PRIVACY

Subtitle A--Disclosure of Nonpublic Personal Information

           *       *       *       *       *       *       *

SEC. 503. DISCLOSURE OF INSTITUTION PRIVACY POLICY.

  (a) Disclosure Required.--At the time of establishing a 
customer relationship with a consumer and not less than 
annually during the continuation of such relationship, a 
financial institution shall provide a clear and conspicuous 
disclosure to such consumer, in writing or in electronic form 
or other form permitted by the regulations prescribed under 
section 504, of such financial institution's policies and 
practices with respect to--
          (1) disclosing nonpublic personal information to 
        affiliates and nonaffiliated third parties, consistent 
        with section 502, including the categories of 
        information that may be disclosed;
          (2) disclosing nonpublic personal information of 
        persons who have ceased to be customers of the 
        financial institution; and
          (3) protecting the nonpublic personal information of 
        consumers.
  (b) Regulations.--Disclosures required by subsection (a) 
shall be made in accordance with the regulations prescribed 
under section 504.
  (c) Information To Be Included.--The disclosure required by 
subsection (a) shall include--
          (1) the policies and practices of the institution 
        with respect to disclosing nonpublic personal 
        information to nonaffiliated third parties, other than 
        agents of the institution, consistent with section 502 
        of this subtitle, and including--
                  (A) the categories of persons to whom the 
                information is or may be disclosed, other than 
                the persons to whom the information may be 
                provided pursuant to section 502(e); and
                  (B) the policies and practices of the 
                institution with respect to disclosing of 
                nonpublic personal information of persons who 
                have ceased to be customers of the financial 
                institution;
          (2) the categories of nonpublic personal information 
        that are collected by the financial institution;
          (3) the policies that the institution maintains to 
        protect the confidentiality and security of nonpublic 
        personal information in accordance with section 501; 
        and
          (4) the disclosures required, if any, under section 
        603(d)(2)(A)(iii) of the Fair Credit Reporting Act.
  (d) Exemption for Certified Public Accountants.--
          (1) In general.--The disclosure requirements of 
        subsection (a) do not apply to any person, to the 
        extent that the person is--
                  (A) a certified public accountant;
                  (B) certified or licensed for such purpose by 
                a State; and
                  (C) subject to any provision of law, rule, or 
                regulation issued by a legislative or 
                regulatory body of the State, including rules 
                of professional conduct or ethics, that 
                prohibits disclosure of nonpublic personal 
                information without the knowing and expressed 
                consent of the consumer.
          (2) Limitation.--Nothing in this subsection shall be 
        construed to exempt or otherwise exclude any financial 
        institution that is affiliated or becomes affiliated 
        with a certified public accountant described in 
        paragraph (1) from any provision of this section.
          (3) Definitions.--For purposes of this subsection, 
        the term ``State'' means any State or territory of the 
        United States, the District of Columbia, Puerto Rico, 
        Guam, American Samoa, the Trust Territory of the 
        Pacific Islands, the Virgin Islands, or the Northern 
        Mariana Islands.
  (e) Model Forms.--
          (1) In general.--The agencies referred to in section 
        504(a)(1) shall jointly develop a model form which may 
        be used, at the option of the financial institution, 
        for the provision of disclosures under this section.
          (2) Format.--A model form developed under paragraph 
        (1) shall--
                  (A) be comprehensible to consumers, with a 
                clear format and design;
                  (B) provide for clear and conspicuous 
                disclosures;
                  (C) enable consumers easily to identify the 
                sharing practices of a financial institution 
                and to compare privacy practices among 
                financial institutions; and
                  (D) be succinct, and use an easily readable 
                type font.
          (3) Timing.--A model form required to be developed by 
        this subsection shall be issued in proposed form for 
        public comment not later than 180 days after the date 
        of enactment of this subsection.
          (4) Safe harbor.--Any financial institution that 
        elects to provide the model form developed by the 
        agencies under this subsection shall be deemed to be in 
        compliance with the disclosures required under this 
        section.
  (f) Exception to Annual Notice Requirement.--A financial 
institution that--
          (1) provides nonpublic personal information only in 
        accordance with the provisions of subsection (b)(2) or 
        (e) of section 502 or regulations prescribed under 
        section 504(b), and
          (2) has not changed its policies and practices with 
        regard to disclosing nonpublic personal information 
        from the policies and practices that were disclosed in 
        the most recent disclosure sent to consumers in 
        accordance with this section,
shall not be required to provide an annual disclosure under 
this section until such time as the financial institution fails 
to comply with any criteria described in paragraph (1) or (2).
  (g) Additional Exception to Annual Notice Requirement.--
          (1) In general.--A vehicle financial company that has 
        not changed its policies and practices with regard to 
        disclosing nonpublic personal information from the 
        policies and practices that were disclosed in the most 
        recent disclosure sent to consumers in accordance with 
        this section shall not be required to provide an annual 
        disclosure under this section if--
                  (A) the vehicle financial company makes its 
                current policy available to consumers on its 
                website and via mail upon written request sent 
                to a designated address identified for the 
                purpose of requesting the policy or upon 
                telephone request made using a toll free 
                consumer service telephone number;
                  (B) the vehicle financial company 
                conspicuously notifies consumers of the 
                availability of the current policy, including--
                          (i) with respect to consumers who are 
                        entitled to a periodic billing 
                        statement, a message on the front page 
                        of each periodic billing statement; and
                          (ii) with respect to consumers who 
                        are not entitled to a periodic billing 
                        statement, through other reasonable 
                        means such as through a link on the 
                        landing page of the company's website 
                        or with other written communication, 
                        including electronic communication, 
                        sent to the consumer; and
                  (C) the vehicle financial company--
                          (i) provides consumers with the 
                        ability to opt out, subject to any 
                        exemption or exception provided under 
                        subsection (b)(2) or (e) of section 502 
                        or under regulations prescribed under 
                        section 504(b), of having the 
                        consumer's nonpublic personal 
                        information disclosed to a 
                        nonaffiliated third party; and
                          (ii) includes a description about 
                        where to locate the procedures for a 
                        consumer to select such opt out in each 
                        periodic billing statement sent to the 
                        consumer.
          (2) Treatment of multiple policies.--If a vehicle 
        financial company maintains more than one set of 
        policies described under paragraph (1) that vary 
        depending on the consumer's account status or State of 
        residence, the vehicle financial company may comply 
        with the website posting requirement in paragraph 
        (1)(A) by posting all of such policies to the public 
        section of the vehicle financial company's website, 
        with instructions for choosing the applicable policy.
          (3) Vehicle financial company defined.--For purposes 
        of this subsection, the term ``vehicle financial 
        company'' means--
                  (A) a financial institution that--
                          (i) is regularly engaged in the 
                        business of extending credit for the 
                        purchase of vehicles;
                          (ii) is affiliated with a vehicle 
                        manufacturer; and
                          (iii) only shares nonpublic personal 
                        information of consumers with 
                        nonaffiliated third parties that are 
                        vehicle dealers; or
                  (B) a financial institution that--
                          (i) regularly engages in the business 
                        of extending credit for the purchase or 
                        lease of vehicles from vehicle dealers; 
                        or
                          (ii) purchases vehicle installment 
                        sales contracts or leases from vehicle 
                        dealers.

           *       *       *       *       *       *       *

                              ----------                              

                     INVESTMENT COMPANY ACT OF 1940

TITLE I--INVESTMENT COMPANIES

           *       *       *       *       *       *       *

                          accounts and records

  Sec. 31. (a) Maintenance of Records.--
          (1) In general.--Each registered investment company, 
        and each underwriter, broker, dealer, or investment 
        adviser that is a majority-owned subsidiary of such a 
        company, shall maintain and preserve such records (as 
        defined in section 3(a)(37) of the Securities Exchange 
        Act of 1934) for such period or periods as the 
        Commission, by rules and regulations, may prescribe as 
        necessary or appropriate in the public interest or for 
        the protection of investors. Each investment adviser 
        that is not a majority-owned subsidiary of, and each 
        depositor of any registered investment company, and 
        each principal underwriter for any registered 
        investment company other than a closed-end company, 
        shall maintain and preserve for such period or periods 
        as the Commission shall prescribe by rules and 
        regulations, such records as are necessary or 
        appropriate to record such person's transactions with 
        such registered company. Each person having custody or 
        use of the securities, deposits, or credits of a 
        registered investment company shall maintain and 
        preserve all records that relate to the custody or use 
        by such person of the securities, deposits, or credits 
        of the registered investment company for such period or 
        periods as the Commission, by rule or regulation, may 
        prescribe, as necessary or appropriate in the public 
        interest or for the protection of investors.
          (2) Minimizing compliance burden.--In exercising its 
        authority under this subsection, the Commission shall 
        take such steps as it deems necessary or appropriate, 
        consistent with the public interest and for the 
        protection of investors, to avoid unnecessary 
        recordkeeping by, and minimize the compliance burden 
        on, persons required to maintain records under this 
        subsection (hereafter in this section referred to as 
        ``subject persons''). Such steps shall include 
        considering, and requesting public comment on--
                  (A) feasible alternatives that minimize the 
                recordkeeping burdens on subject persons;
                  (B) the necessity of such records in view of 
                the public benefits derived from the 
                independent scrutiny of such records through 
                Commission examination;
                  (C) the costs associated with maintaining the 
                information that would be required to be 
                reflected in such records; and
                  (D) the effects that a proposed recordkeeping 
                requirement would have on internal compliance 
                policies and procedures.
  (b) Examinations of Records.--
          (1) In general.--All records required to be 
        maintained and preserved in accordance with subsection 
        (a) shall be subject at any time and from time to time 
        to such reasonable periodic, special, and other 
        examinations by the Commission, or any member or 
        representative thereof, as the Commission may 
        prescribe.
          (2) Availability.--For purposes of examinations 
        referred to in paragraph (1), any subject person shall 
        make available to the Commission or its representatives 
        any copies or extracts from such records as may be 
        prepared without undue effort, expense, or delay as the 
        Commission or its representatives may reasonably 
        request.
          (3) Commission action.--The Commission shall exercise 
        its authority under this subsection with due regard for 
        the benefits of internal compliance policies and 
        procedures and the effective implementation and 
        operation thereof.
          (4) Records of persons with custody or use.--
                  (A) In general.--Records of persons having 
                custody or use of the securities, deposits, or 
                credits of a registered investment company that 
                relate to such custody or use, are subject at 
                any time, or from time to time, to such 
                reasonable periodic, special, or other 
                examinations and other information and document 
                requests by representatives of the Commission, 
                as the Commission deems necessary or 
                appropriate in the public interest or for the 
                protection of investors.
                  (B) Certain persons subject to other 
                regulation.--Any person that is subject to 
                regulation and examination by a Federal 
                financial institution regulatory agency (as 
                such term is defined under section 212(c)(2) of 
                title 18, United States Code) may satisfy any 
                examination request, information request, or 
                document request described under subparagraph 
                (A), by providing to the Commission a detailed 
                listing, in writing, of the securities, 
                deposits, or credits of the registered 
                investment company within the custody or use of 
                such person.
  (c) Regulatory Authority.--The Commission may, in the public 
interest or for the protection of investors, issue rules and 
regulations providing for a reasonable degree of uniformity in 
the accounting policies and principles to be followed by 
registered investment companies in maintaining their accounting 
records and in preparing financial statements required pursuant 
to this title.
  (d) Exemption Authority.--The Commission, upon application 
made by any registered investment company, may by order exempt 
a specific transaction or transactions from the provisions of 
any rule or regulation made pursuant to subsection (e), if the 
Commission finds that such rule or regulation should not 
reasonably be applied to such transaction.
  (e) Procedure for Obtaining Certain Intellectual Property.--
The Commission is not authorized to compel under this title an 
investment company to produce or furnish source code, including 
algorithmic trading source code or similar intellectual 
property that forms the basis for design of the source code, to 
the Commission unless the Commission first issues a subpoena.

           *       *       *       *       *       *       *

                              ----------                              

                    INVESTMENT ADVISERS ACT OF 1940

           *       *       *       *       *       *       *
TITLE II--INVESTMENT ADVISERS

           *       *       *       *       *       *       *

                        annual and other reports

  Sec. 204. (a) In General.--Every investment adviser who makes 
use of the mails or of any means or instrumentality of 
interstate commerce in connection with his or its business as 
an investment adviser (other than one specifically exempted 
from registration pursuant to section 203(b) of this title), 
shall make and keep for prescribed periods such records (as 
defined in section 3(a)(37) of the Securities Exchange Act of 
1934), furnish such copies thereof, and make and disseminate 
such reports as the Commission, by rule, may prescribe as 
necessary or appropriate in the public interest or for the 
protection of investors. All records (as so defined) of such 
investment advisers are subject at any time, or from time to 
time, to such reasonable periodic, special, or other 
examinations by representatives of the Commission as the 
Commission deems necessary or appropriate in the public 
interest or for the protection of investors.
  (b) Records and Reports of Private Funds.--
          (1) In general.--The Commission may require any 
        investment adviser registered under this title--
                  (A) to maintain such records of, and file 
                with the Commission such reports regarding, 
                private funds advised by the investment 
                adviser, as necessary and appropriate in the 
                public interest and for the protection of 
                investors, or for the assessment of systemic 
                risk by the Financial Stability Oversight 
                Council (in this subsection referred to as the 
                ``Council''); and
                  (B) to provide or make available to the 
                Council those reports or records or the 
                information contained therein.
          (2) Treatment of records.--The records and reports of 
        any private fund to which an investment adviser 
        registered under this title provides investment advice 
        shall be deemed to be the records and reports of the 
        investment adviser.
          (3) Required information.--The records and reports 
        required to be maintained by an investment adviser and 
        subject to inspection by the Commission under this 
        subsection shall include, for each private fund advised 
        by the investment adviser, a description of--
                  (A) the amount of assets under management and 
                use of leverage, including off-balance-sheet 
                leverage;
                  (B) counterparty credit risk exposure;
                  (C) trading and investment positions;
                  (D) valuation policies and practices of the 
                fund;
                  (E) types of assets held;
                  (F) side arrangements or side letters, 
                whereby certain investors in a fund obtain more 
                favorable rights or entitlements than other 
                investors;
                  (G) trading practices; and
                  (H) such other information as the Commission, 
                in consultation with the Council, determines is 
                necessary and appropriate in the public 
                interest and for the protection of investors or 
                for the assessment of systemic risk, which may 
                include the establishment of different 
                reporting requirements for different classes of 
                fund advisers, based on the type or size of 
                private fund being advised.
          (4) Maintenance of records.--An investment adviser 
        registered under this title shall maintain such records 
        of private funds advised by the investment adviser for 
        such period or periods as the Commission, by rule, may 
        prescribe as necessary and appropriate in the public 
        interest and for the protection of investors, or for 
        the assessment of systemic risk.
          (5) Filing of records.--The Commission shall issue 
        rules requiring each investment adviser to a private 
        fund to file reports containing such information as the 
        Commission deems necessary and appropriate in the 
        public interest and for the protection of investors or 
        for the assessment of systemic risk.
          (6) Examination of records.--
                  (A) Periodic and special examinations.--The 
                Commission--
                          (i) shall conduct periodic 
                        inspections of the records of private 
                        funds maintained by an investment 
                        adviser registered under this title in 
                        accordance with a schedule established 
                        by the Commission; and
                          (ii) may conduct at any time and from 
                        time to time such additional, special, 
                        and other examinations as the 
                        Commission may prescribe as necessary 
                        and appropriate in the public interest 
                        and for the protection of investors, or 
                        for the assessment of systemic risk.
                  (B) Availability of records.--An investment 
                adviser registered under this title shall make 
                available to the Commission any copies or 
                extracts from such records as may be prepared 
                without undue effort, expense, or delay, as the 
                Commission or its representatives may 
                reasonably request.
          (7) Information sharing.--
                  (A) In general.--The Commission shall make 
                available to the Council copies of all reports, 
                documents, records, and information filed with 
                or provided to the Commission by an investment 
                adviser under this subsection as the Council 
                may consider necessary for the purpose of 
                assessing the systemic risk posed by a private 
                fund.
                  (B) Confidentiality.--The Council shall 
                maintain the confidentiality of information 
                received under this paragraph in all such 
                reports, documents, records, and information, 
                in a manner consistent with the level of 
                confidentiality established for the Commission 
                pursuant to paragraph (8). The Council shall be 
                exempt from section 552 of title 5, United 
                States Code, with respect to any information in 
                any report, document, record, or information 
                made available, to the Council under this 
                subsection.
          (8) Commission confidentiality of reports.--
        Notwithstanding any other provision of law, the 
        Commission may not be compelled to disclose any report 
        or information contained therein required to be filed 
        with the Commission under this subsection, except that 
        nothing in this subsection authorizes the Commission--
                  (A) to withhold information from Congress, 
                upon an agreement of confidentiality; or
                  (B) prevent the Commission from complying 
                with--
                          (i) a request for information from 
                        any other Federal department or agency 
                        or any self-regulatory organization 
                        requesting the report or information 
                        for purposes within the scope of its 
                        jurisdiction; or
                          (ii) an order of a court of the 
                        United States in an action brought by 
                        the United States or the Commission.
          (9) Other recipients confidentiality.--Any 
        department, agency, or self-regulatory organization 
        that receives reports or information from the 
        Commission under this subsection shall maintain the 
        confidentiality of such reports, documents, records, 
        and information in a manner consistent with the level 
        of confidentiality established for the Commission under 
        paragraph (8).
          (10) Public information exception.--
                  (A) In general.--The Commission, the Council, 
                and any other department, agency, or self-
                regulatory organization that receives 
                information, reports, documents, records, or 
                information from the Commission under this 
                subsection, shall be exempt from the provisions 
                of section 552 of title 5, United States Code, 
                with respect to any such report, document, 
                record, or information. Any proprietary 
                information of an investment adviser 
                ascertained by the Commission from any report 
                required to be filed with the Commission 
                pursuant to this subsection shall be subject to 
                the same limitations on public disclosure as 
                any facts ascertained during an examination, as 
                provided by section 210(b) of this title.
                  (B) Proprietary information.--For purposes of 
                this paragraph, proprietary information 
                includes sensitive, non-public information 
                regarding--
                          (i) the investment or trading 
                        strategies of the investment adviser;
                          (ii) analytical or research 
                        methodologies;
                          (iii) trading data;
                          (iv) computer hardware or software 
                        containing intellectual property; and
                          (v) any additional information that 
                        the Commission determines to be 
                        proprietary.
          (11) Annual report to congress.--The Commission shall 
        report annually to Congress on how the Commission has 
        used the data collected pursuant to this subsection to 
        monitor the markets for the protection of investors and 
        the integrity of the markets.
  (c) Filing Depositories.--The Commission may, by rule, 
require an investment adviser--
          (1) to file with the Commission any fee, application, 
        report, or notice required to be filed by this title or 
        the rules issued under this title through any entity 
        designated by the Commission for that purpose; and
          (2) to pay the reasonable costs associated with such 
        filing and the establishment and maintenance of the 
        systems required by subsection (c).
  (d) Access to Disciplinary and Other Information.--
          (1) Maintenance of system to respond to inquiries.--
                  (A) In general.--The Commission shall require 
                the entity designated by the Commission under 
                subsection (b)(1) to establish and maintain a 
                toll-free telephone listing, or a readily 
                accessible electronic or other process, to 
                receive and promptly respond to inquiries 
                regarding registration information (including 
                disciplinary actions, regulatory, judicial, and 
                arbitration proceedings, and other information 
                required by law or rule to be reported) 
                involving investment advisers and persons 
                associated with investment advisers.
                  (B) Applicability.--This subsection shall 
                apply to any investment adviser (and the 
                persons associated with that adviser), whether 
                the investment adviser is registered with the 
                Commission under section 203 or regulated 
                solely by a State, as described in section 
                203A.
          (2) Recovery of costs.--An entity designated by the 
        Commission under subsection (b)(1) may charge persons 
        making inquiries, other than individual investors, 
        reasonable fees for responses to inquiries described in 
        paragraph (1).
          (3) Limitation on liability.--An entity designated by 
        the Commission under subsection (b)(1) shall not have 
        any liability to any person for any actions taken or 
        omitted in good faith under this subsection.
  [(d)] (e) Records of Persons With Custody or Use.--
          (1) In general.--Records of persons having custody or 
        use of the securities, deposits, or credits of a 
        client, that relate to such custody or use, are subject 
        at any time, or from time to time, to such reasonable 
        periodic, special, or other examinations and other 
        information and document requests by representatives of 
        the Commission, as the Commission deems necessary or 
        appropriate in the public interest or for the 
        protection of investors.
          (2) Certain persons subject to other regulation.--Any 
        person that is subject to regulation and examination by 
        a Federal financial institution regulatory agency (as 
        such term is defined under section 212(c)(2) of title 
        18, United States Code) may satisfy any examination 
        request, information request, or document request 
        described under paragraph (1), by providing the 
        Commission with a detailed listing, in writing, of the 
        securities, deposits, or credits of the client within 
        the custody or use of such person.
  (f) Procedure for Obtaining Certain Intellectual Property.--
The Commission is not authorized to compel under this title an 
investment adviser to produce or furnish source code, including 
algorithmic trading source code or similar intellectual 
property that forms the basis for design of the source code, to 
the Commission unless the Commission first issues a subpoena.

           *       *       *       *       *       *       *

                              ----------                              

                    FINANCIAL STABILITY ACT OF 2010

           *       *       *       *       *       *       *
TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *

Subtitle A--Financial Stability Oversight Council

           *       *       *       *       *       *       *

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) the appropriateness of the imposition of 
                prudential standards as opposed to other forms 
                of regulation to mitigate the identified risks; 
                and
                  [(K)] (L) 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) the appropriateness of the imposition of 
                prudential standards as opposed to other forms 
                of regulation to mitigate the identified risks; 
                and
                  [(K)] (L) 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).]
  (d) Reevaluation and Rescission.--
          (1) Annual reevaluation.--Not less frequently than 
        annually, the Council shall reevaluate each 
        determination made under subsections (a) and (b) with 
        respect to a nonbank financial company supervised by 
        the Board of Governors and shall--
                  (A) provide written notice to the nonbank 
                financial company being reevaluated and afford 
                such company an opportunity to submit written 
                materials, within such time as the Council 
                determines to be appropriate (but which shall 
                be not less than 30 days after the date of 
                receipt by the company of such notice), to 
                contest the determination, including materials 
                concerning whether, in the company's view, 
                material financial distress at the company, or 
                the nature, scope, size, scale, concentration, 
                interconnectedness, or mix of the activities of 
                the company could pose a threat to the 
                financial stability of the United States;
                  (B) provide an opportunity for the nonbank 
                financial company to meet with the Council to 
                present the information described in 
                subparagraph (A); and
                  (C) if the Council does not rescind the 
                determination, provide notice to the nonbank 
                financial company, its primary financial 
                regulatory agency and the primary financial 
                regulatory agency of any of the company's 
                significant subsidiaries of the reasons for the 
                Council's decision, which notice shall address 
                with specificity how the Council assessed the 
                material factors presented by the company under 
                subparagraphs (A) and (B).
          (2) Periodic reevaluation.--
                  (A) Review.--Every 5 years after the date of 
                a final determination with respect to a nonbank 
                financial company under subsection (a) or (b), 
                as applicable, the nonbank financial company 
                may submit a written request to the Council for 
                a reevaluation of such determination. Upon 
                receipt of such a request, the Council shall 
                conduct a reevaluation of such determination 
                and hold a vote on whether to rescind such 
                determination.
                  (B) Procedures.--Upon receipt of a written 
                request under paragraph (A), the Council shall 
                fix a time (not earlier than 30 days after the 
                date of receipt of the request) and place at 
                which such company may appear, personally or 
                through counsel, to--
                          (i) submit written materials (which 
                        may include a plan to modify the 
                        company's business, structure, or 
                        operations, which shall specify the 
                        length of the implementation period); 
                        and
                          (ii) provide oral testimony and oral 
                        argument before the members of the 
                        Council.
                  (C) Treatment of plan.--If the company 
                submits a plan in accordance with subparagraph 
                (B)(i), the Council shall consider whether the 
                plan, if implemented, would cause the company 
                to no longer meet the standards for a final 
                determination under subsection (a) or (b), as 
                applicable. The Council shall provide the 
                nonbank financial company an opportunity to 
                revise the plan after consultation with the 
                Council.
                  (D) Explanation for certain companies.--With 
                respect to a reevaluation under this paragraph 
                where the determination being reevaluated was 
                made before the date of enactment of this 
                paragraph, the nonbank financial company may 
                require the Council, as part of such 
                reevaluation, to explain with specificity the 
                basis for such determination.
          (3) Rescission of determination.--
                  (A) In general.--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 under this subsection 
                that a nonbank financial company no longer 
                meets the standards for a final determination 
                under subsection (a) or (b), as applicable, the 
                Council shall rescind such determination.
                  (B) Approval of company plan.--Approval by 
                the Council of a plan submitted or revised in 
                accordance with paragraph (2) shall require a 
                vote of not fewer than \2/3\ of the voting 
                members then serving, including an affirmative 
                vote by the Chairperson. If such plan is 
                approved by the Council, the company shall 
                implement the plan during the period identified 
                in the plan, except that the Council, in its 
                sole discretion and upon request from the 
                company, may grant one or more extensions of 
                the implementation period. After the end of the 
                implementation period, including any extensions 
                granted by the Council, the Council shall 
                proceed to a vote as described under 
                subparagraph (A).
  (e) Requirements for Proposed Determination, Notice and 
Opportunity for Hearing, and Final Determination.--
          (1) Notice of identification for initial evaluation 
        and opportunity for voluntary submission.--Upon 
        identifying a nonbank financial company for 
        comprehensive analysis of the potential for the nonbank 
        company to pose a threat to the financial stability of 
        the United States, the Council shall provide the 
        nonbank financial company with--
                  (A) written notice that explains with 
                specificity the basis for so identifying the 
                company, a copy of which shall be provided to 
                the company's primary financial regulatory 
                agency;
                  (B) an opportunity to submit written 
                materials for consideration by the Council as 
                part of the Council's initial evaluation of the 
                risk profile and characteristics of the 
                company;
                  (C) an opportunity to meet with the Council 
                to discuss the Council's analysis; and
                  (D) a list of the public sources of 
                information being considered by the Council as 
                part of such analysis.
          (2) Requirements before making a proposed 
        determination.--Before making a proposed determination 
        with respect to a nonbank financial company under 
        paragraph (3), the Council shall--
                  (A) by a vote of not fewer than \2/3\ of the 
                voting members then serving, including an 
                affirmative vote by the Chairperson, approve a 
                resolution that identifies with specificity any 
                risks to the financial stability of the United 
                States the Council has identified relating to 
                the nonbank financial company;
                  (B) with respect to nonbank financial company 
                with a primary financial regulatory agency, 
                provide a copy of the resolution described 
                under subparagraph (A) to the primary financial 
                regulatory agency and provide such agency with 
                at least 180 days from the receipt of the 
                resolution to--
                          (i) consider the risks identified in 
                        the resolution; and
                          (ii) provide a written response to 
                        the Council that includes its 
                        assessment of the risks identified and 
                        the degree to which they are or could 
                        be addressed by existing regulation 
                        and, as appropriate, issue proposed 
                        regulations or undertake other 
                        regulatory action to mitigate the 
                        identified risks;
                  (C) provide the nonbank financial company 
                with written notice that the Council--
                          (i) is considering whether to make a 
                        proposed determination with respect to 
                        the nonbank financial company under 
                        subsection (a) or (b), as applicable, 
                        which notice explains with specificity 
                        the basis for the Council's 
                        consideration, including any aspects of 
                        the company's operations or activities 
                        that are a primary focus for the 
                        Council; or
                          (ii) has determined not to subject 
                        the company to further review, which 
                        action shall not preclude the Council 
                        from issuing a notice to the company 
                        under subparagraph (1)(A) at a future 
                        time; and
                  (D) in the case of a notice to the nonbank 
                financial company under subparagraph (C)(i), 
                provide the company with--
                          (i) an opportunity to meet with the 
                        Council to discuss the Council's 
                        analysis;
                          (ii) an opportunity to submit written 
                        materials, within such time as the 
                        Council deems appropriate (but not less 
                        than 30 days after the date of receipt 
                        by the company of the notice described 
                        under clause (i)), to the Council to 
                        inform the Council's consideration of 
                        the nonbank financial company for a 
                        proposed determination, including 
                        materials concerning the company's 
                        views as to whether it satisfies the 
                        standard for determination set forth in 
                        subsection (a) or (b), as applicable;
                          (iii) an explanation of how any 
                        request by the Council for information 
                        from the nonbank financial company 
                        relates to potential risks to the 
                        financial stability of the United 
                        States and the Council's analysis of 
                        the company;
                          (iv) written notice when the Council 
                        deems its evidentiary record regarding 
                        such nonbank financial company to be 
                        complete; and
                          (v) an opportunity to meet with the 
                        members of the Council.
          (3) Proposed determination.--
                  (A) Voting.--The Council may, by a vote of 
                not fewer than \2/3\ of the voting members then 
                serving, including an affirmative vote by the 
                Chairperson, propose to make a determination in 
                accordance with the provisions of subsection 
                (a) or (b), as applicable, with respect to a 
                nonbank financial company.
                  (B) Deadline for making a proposed 
                determination.--With respect to a nonbank 
                financial company provided with a written 
                notice under paragraph (2)(C)(i), if the 
                Council does not provide the company with the 
                written notice of a proposed determination 
                described under paragraph (4) within the 180-
                day period following the date on which the 
                Council notifies the company under paragraph 
                (2)(C) that the evidentiary record is complete, 
                the Council may not make such a proposed 
                determination with respect to such company 
                unless the Council repeats the procedures 
                described under paragraph (2).
                  (C) Review of actions of primary financial 
                regulatory agency.--With respect to a nonbank 
                financial company with a primary financial 
                regulatory agency, the Council may not vote 
                under subparagraph (A) to make a proposed 
                determination unless--
                          (i) the Council first determines that 
                        any proposed regulations or other 
                        regulatory actions taken by the primary 
                        financial regulatory agency after 
                        receipt of the resolution described 
                        under paragraph (2)(A) are insufficient 
                        to mitigate the risks identified in the 
                        resolution;
                          (ii) the primary financial regulatory 
                        agency has notified the Council that 
                        the agency has no proposed regulations 
                        or other regulatory actions to mitigate 
                        the risks identified in the resolution; 
                        or
                          (iii) the period allowed by the 
                        Council under paragraph (2)(B) has 
                        elapsed and the primary financial 
                        regulatory agency has taken no action 
                        in response to the resolution.
          (4) Notice of proposed determination.--The Council 
        shall--
                  (A) 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, an explanation of 
                the specific risks to the financial stability 
                of the United States presented by the nonbank 
                financial company, and a detailed explanation 
                of why existing regulations or other regulatory 
                action by the company's primary financial 
                regulatory agency, if any, is insufficient to 
                mitigate such risk; and
                  (B) provide the primary financial regulatory 
                agency of the nonbank financial company a copy 
                of the nonpublic written explanation of the 
                Council's proposed determination.
          (5) Hearing.--
                  (A) In general.--Not later than 30 days after 
                the date of receipt of any notice of a proposed 
                determination under paragraph (4), the nonbank 
                financial company may request, in writing, an 
                opportunity for a written or oral hearing 
                before the Council to contest the proposed 
                determination, including the opportunity to 
                present a plan to modify the company's 
                business, structure, or operations in order to 
                mitigate the risks identified in the notice, 
                and which plan shall also include any steps the 
                company expects to take during the 
                implementation period to mitigate such risks.
                  (B) Grant of hearing.--Upon receipt of a 
                timely request, the Council shall fix a time 
                (not earlier than 30 days after the date of 
                receipt of the request) and place at which such 
                company may appear, personally or through 
                counsel, to--
                          (i) submit written materials (which 
                        may include a plan to modify the 
                        company's business, structure, or 
                        operations); or
                          (ii) provide oral testimony and oral 
                        argument to the members of the Council.
          (6) Council consideration of company plan.--
                  (A) In general.--If a nonbank financial 
                company submits a plan in accordance with 
                paragraph (5), the Council shall, prior to 
                making a final determination--
                          (i) consider whether the plan, if 
                        implemented, would mitigate the risks 
                        identified in the notice under 
                        paragraph (4); and
                          (ii) provide the nonbank financial 
                        company an opportunity to revise the 
                        plan after consultation with the 
                        Council.
                  (B) Voting.--Approval by the Council of a 
                plan submitted under paragraph (5) or revised 
                under subparagraph (A)(ii) shall require a vote 
                of not fewer than \2/3\ of the voting members 
                then serving, including an affirmative vote by 
                the Chairperson.
                  (C) Implementation of approved plan.--With 
                respect to a nonbank financial company's plan 
                approved by the Council under subparagraph (B), 
                the company shall have one year to implement 
                the plan, except that the Council, in its sole 
                discretion and upon request from the nonbank 
                financial company, may grant one or more 
                extensions of the implementation period.
                  (D) Oversight of implementation.--
                          (i) Periodic reports.--The Council, 
                        acting through the Office of Financial 
                        Research, may require the submission of 
                        periodic reports from a nonbank 
                        financial company for the purpose of 
                        evaluating the company's progress in 
                        implementing a plan approved by the 
                        Council under subparagraph (B).
                          (ii) Inspections.--The Council may 
                        direct the primary financial regulatory 
                        agency of a nonbank financial company 
                        or its subsidiaries (or, if none, the 
                        Board of Governors) to inspect the 
                        company or its subsidiaries for the 
                        purpose of evaluating the 
                        implementation of the company's plan.
                  (E) Authority to rescind approval.--
                          (i) In general.--During the 
                        implementation period described under 
                        subparagraph (C), including any 
                        extensions granted by the Council, the 
                        Council shall retain the authority to 
                        rescind its approval of the plan if the 
                        Council finds, by a vote of not fewer 
                        than \2/3\ of the voting members then 
                        serving, including an affirmative vote 
                        by the Chairperson, that the company's 
                        implementation of the plan is no longer 
                        sufficient to mitigate or prevent the 
                        risks identified in the resolution 
                        described under paragraph (2)(A).
                          (ii) Final determination vote.--The 
                        Council may proceed to a vote on final 
                        determination under subsection (a) or 
                        (b), as applicable, not earlier than 10 
                        days after providing the nonbank 
                        financial company with written notice 
                        that the Council has rescinded the 
                        approval of the company's plan pursuant 
                        to clause (i).
                  (F) Actions after implementation.--
                          (i) Evaluation of implementation.--
                        After the end of the implementation 
                        period described under subparagraph 
                        (C), including any extensions granted 
                        by the Council, the Council shall 
                        consider whether the plan, as 
                        implemented by the nonbank financial 
                        company, adequately mitigates or 
                        prevents the risks identified in the 
                        resolution described under paragraph 
                        (2)(A).
                          (ii) Voting.--If, after performing an 
                        evaluation under clause (i), not fewer 
                        than \2/3\ of the voting members of the 
                        Council then serving, including an 
                        affirmative vote by the Chairperson, 
                        determine that the plan, as 
                        implemented, adequately mitigates or 
                        prevents the identified risks, the 
                        Council shall not make a final 
                        determination under subsection (a) or 
                        (b), as applicable, with respect to the 
                        nonbank financial company and shall 
                        notify the company of the Council's 
                        decision to take no further action.
          (7) Final council decisions.--
                  (A) In general.--Not later than 90 days after 
                the date of a hearing under paragraph (5), the 
                Council shall notify the nonbank financial 
                company of--
                          (i) a final determination under 
                        subsection (a) or (b), as applicable;
                          (ii) the Council's approval of a plan 
                        submitted by the nonbank financial 
                        company under paragraph (5) or revised 
                        under paragraph (6); or
                          (iii) the Council's decision to take 
                        no further action with respect to the 
                        nonbank financial company.
                  (B) Explanatory statement.--A final 
                determination of the Council, under subsection 
                (a) or (b), shall contain a statement of the 
                basis for the decision of the Council, 
                including the reasons why the Council rejected 
                any plan by the nonbank financial company 
                submitted under paragraph (5) or revised under 
                paragraph (6).
                  (C) Notice to primary financial regulatory 
                agency.--In the case of a final determination 
                under subsection (a) or (b), the Council shall 
                provide the primary financial regulatory agency 
                of the nonbank financial company a copy of the 
                nonpublic written explanation of the Council's 
                final determination.
  (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] from the outset of the Council's consideration 
of the company, including before the Council makes any proposed 
or 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.
  (j) Public Disclosure Requirement.--The Council shall--
          (1) in each case where a nonbank financial company 
        has been notified that it is subject to the Council's 
        review and the company has publicly disclosed such 
        fact, confirm that the nonbank financial company is 
        subject to the Council's review, in response to a 
        request from a third party;
          (2) upon making a final determination, publicly 
        provide a written explanation of the basis for its 
        decision with sufficient detail to provide the public 
        with an understanding of the specific bases of the 
        Council's determination, including any assumptions 
        related thereof, subject to the requirements of section 
        112(d)(5);
          (3) include, in the annual report required by section 
        112, the number of nonbank financial companies from the 
        previous year subject to preliminary analysis, further 
        review, and subject to a proposed or final 
        determination; and
          (4) within 90 days after the enactment of this 
        subsection, publish information regarding its 
        methodology for calculating any quantitative thresholds 
        or other metrics used to identify nonbank financial 
        companies for analysis by the Council.
  (k) Periodic Assessment of the Impact of Designations.--
          (1) Assessment.--Every five years after the date of 
        enactment of this section, the Council shall--
                  (A) conduct a study of the Council's 
                determinations that nonbank financial companies 
                shall be supervised by the Board of Governors 
                and shall be subject to prudential standards; 
                and
                  (B) comprehensively assess the impact of such 
                determinations on the companies for which such 
                determinations were made and the wider economy, 
                including whether such determinations are 
                having the intended result of improving the 
                financial stability of the United States.
          (2) Report.--Not later than 90 days after completing 
        a study required under paragraph (1), the Council shall 
        issue a report to the Congress that--
                  (A) describes all findings and conclusions 
                made by the Council in carrying out such study; 
                and
                  (B) identifies whether any of the Council's 
                determinations should be rescinded or whether 
                related regulations or regulatory guidance 
                should be modified, streamlined, expanded, or 
                repealed.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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 to ensure that 
                companies with comparable risk profiles and 
                business models are operating under a similar 
                set of requirements.
                  (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).
  (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 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) whether the company owns an 
                        insured depository institution;
                          (iii) nonfinancial activities and 
                        affiliations of the company; and
                          (iv) any other risk-related factors 
                        that the Board of Governors 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 paragraph (1) of 
                this subsection;
                  (C) take into account any recommendations of 
                the Council under section 115; and
                  (D) 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);
                  (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 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 of Governors and the 
        Corporation shall 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).
          (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, 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) 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).
                  (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), as determined 
                necessary or appropriate by the Board of 
                Governors to promote sound risk management 
                practices.
          (3) 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;
                  (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; and
                  (C) include at least 1 risk management expert 
                having experience in identifying, assessing, 
                and managing risk exposures of large, complex 
                firms.
          (4) 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;
                          (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.
          (2) By the company.--
                  (A) Requirement.--A nonbank financial company 
                supervised by the Board of Governors and a bank 
                holding company described in subsection (a) 
                shall conduct semiannual stress tests. All 
                other financial 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 shall require.
                  (C) Regulations.--Each Federal primary 
                financial regulatory agency, in coordination 
                with the Board of Governors and the Federal 
                Insurance Office, 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.
  (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 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.

           *       *       *       *       *       *       *

                              ----------                              

                    BANK HOLDING COMPANY ACT OF 1956

           *       *       *       *       *       *       *
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.]
          (2) Rulemaking.--
                  (A) In general.--The Board may, as 
                appropriate, consult with the Comptroller of 
                the Currency, the Federal Deposit Insurance 
                Corporation, the Securities and Exchange 
                Commission, or the Commodity Futures Trading 
                Commission to adopt rules or guidance to carry 
                out this section, as provided in subparagraph 
                (B).
                  (B) Rulemaking requirements.--In adopting a 
                rule or guidance under subparagraph (A), the 
                Board--
                          (i) shall consider the findings of 
                        the report required in paragraph (1) 
                        and, as appropriate, subsequent 
                        reports;
                          (ii) shall assure, to the extent 
                        possible, that such rule or guidance 
                        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; and
                          (iii) shall include requirements to 
                        ensure compliance with this section, 
                        such as requirements regarding internal 
                        controls and recordkeeping.
                  (C) Authority.--The Board shall have sole 
                authority to issue and amend rules under this 
                section after the date of the enactment of this 
                paragraph.
                  (D) Conforming authority.--
                          (i) Continuity of regulations.--Any 
                        rules or guidance issued under this 
                        section prior to the date of enactment 
                        of this paragraph shall continue in 
                        effect until the Board issues a 
                        successor rule or guidance, or amends 
                        such rule or guidance, pursuant to 
                        subparagraph (C).
                          (ii) Applicable guidance.--In 
                        performing examinations or other 
                        supervisory duties, the appropriate 
                        Federal banking agencies, the 
                        Securities and Exchange Commission, and 
                        the Commodity Futures Trading 
                        Commission, as appropriate, shall 
                        update any applicable policies and 
                        procedures to ensure that such policies 
                        and procedures are consistent (to the 
                        extent practicable) with any rules or 
                        guidance issued pursuant to 
                        subparagraph (C).
  (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),] The Board shall have the authority 
        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,] the Board 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] the Board, 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] has not 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, except that the hedge fund or 
                        private equity fund may share the same 
                        name or a variation of the same name as 
                        a banking entity that is an investment 
                        adviser to the hedge fund or private 
                        equity fund, if--
                                  (I) such investment adviser 
                                is not an insured depository 
                                institution, a company that 
                                controls an insured depository 
                                institution, or a company that 
                                is treated as a bank holding 
                                company for purposes of section 
                                8 of the International Banking 
                                Act of 1978 (12 U.S.C. 3106);
                                  (II) such investment adviser 
                                does not share the same name or 
                                a variation of the same name as 
                                an insured depository 
                                institution, any company that 
                                controls an insured depository 
                                institution, or any company 
                                that is treated as a bank 
                                holding company for purposes of 
                                section 8 of the International 
                                Banking Act of 1978 (12 U.S.C. 
                                3106); and
                                  (III) such name does not 
                                contain the word ``bank'';
                          (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,] Board, 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] Board 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] Board 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] Board 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] Board 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.]
  (e) Enforcement; Anti-Evasion.--
          (1) Appropriate federal banking agency.--
        Notwithstanding any other provision of law except for 
        any rules or guidance issued under subsection (b)(2), 
        whenever the appropriate Federal banking agency has 
        reasonable cause to believe that a banking entity or 
        nonbank financial company supervised by the Board has 
        made an investment or engaged in an activity in a 
        manner that either violates the restrictions under this 
        section, or that functions as an evasion of the 
        requirements of this section (including through an 
        abuse of any permitted activity), such appropriate 
        Federal banking agency 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.
          (2) Securities and exchange commission and commodity 
        futures trading commission.--
                  (A) In general.--Notwithstanding any other 
                provision of law except for any rules or 
                guidance issued under subsection (b)(2), 
                whenever the Securities and Exchange Commission 
                or the Commodity Futures Trading Commission, as 
                appropriate, has reasonable cause to believe 
                that a covered nonbank financial company for 
                which the respective agency is the primary 
                Federal regulator has made an investment or 
                engaged in an activity in a manner that either 
                violates the restrictions under this section, 
                or that functions as an evasion of the 
                requirements of this section (including through 
                an abuse of any permitted activity), the 
                Securities and Exchange Commission or the 
                Commodity Futures Trading Commission, as 
                appropriate, shall order, after due notice and 
                opportunity for hearing, the covered nonbank 
                financial company to terminate the activity 
                and, as relevant, dispose of the investment.
                  (B) Covered nonbank financial company 
                defined.--In this paragraph, the term ``covered 
                nonbank financial company'' means a nonbank 
                financial company (as defined in section 102 of 
                the Financial Stability Act of 2010) supervised 
                by the Securities and Exchange Commission or 
                the Commodity Futures Trading Commission, as 
                appropriate.
  (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] Board 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--
                  (A) that functions solely in a trust or 
                fiduciary capacity, if--
                          (i) all or substantially all of the 
                        deposits of such institution are in 
                        trust funds and are received in a bona 
                        fide fiduciary capacity;
                          (ii) 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;
                          (iii) 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
                          (iv) 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)); or
                  (B) that does not have and is not controlled 
                by a company that has--
                          (i) more than $10,000,000,000 in 
                        total consolidated assets; and
                          (ii) total trading assets and trading 
                        liabilities, as reported on the most 
                        recent applicable regulatory filing 
                        filed by the institution, that are more 
                        than 5 percent of total consolidated 
                        assets.
          (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] Board 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] Board 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] Board 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)).

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                              ----------                              

       DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

           *       *       *       *       *       *       *
TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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).
  (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 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) whether the company owns an 
                        insured depository institution;
                          (iii) nonfinancial activities and 
                        affiliations of the company; and
                          (iv) any other risk-related factors 
                        that the Board of Governors 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 paragraph (1) of 
                this subsection;
                  (C) take into account any recommendations of 
                the Council under section 115; and
                  (D) 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);
                  (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] 
        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 
                        company submits the resolution plan, 
                        provide feedback to the company on such 
                        plan.
                  (B) Disclosure of assessment framework.--The 
                Board of Governors and the Corporation shall 
                publicly disclose the assessment framework that 
                is used to review information under this 
                paragraph.
          (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, 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) 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).
                  (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), as determined 
                necessary or appropriate by the Board of 
                Governors to promote sound risk management 
                practices.
          (3) 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;
                  (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; and
                  (C) include at least 1 risk management expert 
                having experience in identifying, assessing, 
                and managing risk exposures of large, complex 
                firms.
          (4) 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;
                          (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.
          (2) By the company.--
                  (A) Requirement.--A nonbank financial company 
                supervised by the Board of Governors and a bank 
                holding company described in subsection (a) 
                shall conduct semiannual stress tests. All 
                other financial companies that have total 
                consolidated assets of more than 
                $10,000,000,000 and [are regulated by a primary 
                Federal financial regulatory agency] whose 
                primary financial regulatory agency is a 
                Federal banking agency or the Federal Housing 
                Finance 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 shall require.
                  (C) Regulations.--Each Federal primary 
                financial regulatory agency, in coordination 
                with the Board of Governors and the Federal 
                Insurance Office, 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.
                  (D) SEC and cftc.--The Securities and 
                Exchange Commission and the Commodity Futures 
                Trading Commission may each issue regulations 
                requiring financial companies with respect to 
                which they are the primary financial regulatory 
                agency to conduct periodic analyses of the 
                financial condition, including available 
                liquidity, of such companies under adverse 
                economic conditions.
  (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 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.

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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

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

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TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

           *       *       *       *       *       *       *

          Subtitle A--Bureau of Consumer Financial Protection

SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL 
                    PROTECTION.

  (a) Bureau Established.--There is established in the Federal 
Reserve System, an independent bureau to be known as the 
``Bureau of Consumer Financial Protection'', which shall 
regulate the offering and provision of consumer financial 
products or services under the Federal consumer financial laws. 
The Bureau shall be considered an Executive agency, as defined 
in section 105 of title 5, United States Code. Except as 
otherwise provided expressly by law, all Federal laws dealing 
with public or Federal contracts, property, works, officers, 
employees, budgets, or funds, including the provisions of 
chapters 5 and 7 of title 5, shall apply to the exercise of the 
powers of the Bureau.
  (b) Director [and Deputy Director], Deputy Director, and 
Inspector General.--
          (1) In general.--There is established the position of 
        the Director, who shall serve as the head of the 
        Bureau.
          (2) Appointment.--Subject to paragraph (3), the 
        Director shall be appointed by the President, by and 
        with the advice and consent of the Senate.
          (3) Qualification.--The President shall nominate the 
        Director from among individuals who are citizens of the 
        United States.
          (4) Compensation.--The Director shall be compensated 
        at the rate prescribed for level II of the Executive 
        Schedule under section 5313 of title 5, United States 
        Code.
          (5) Deputy director.--There is established the 
        position of Deputy Director, who shall--
                  (A) be appointed by the Director; and
                  (B) serve as acting Director in the absence 
                or unavailability of the Director.
          (6) Inspector general.--There is established the 
        position of the Inspector General.
  (c) Term.--
          (1) In general.--The Director shall serve for a term 
        of 5 years.
          (2) Expiration of term.--An individual may serve as 
        Director after the expiration of the term for which 
        appointed, until a successor has been appointed and 
        qualified.
          (3) Removal for cause.--The President may remove the 
        Director for inefficiency, neglect of duty, or 
        malfeasance in office.
  (d) Service Restriction.--No Director [or Deputy Director], 
Deputy Director, or Inspector General may hold any office, 
position, or employment in any Federal reserve bank, Federal 
home loan bank, covered person, or service provider during the 
period of service of such person as Director [or Deputy 
Director], Deputy Director, or Inspector General.
  (e) Offices.--The principal office of the Bureau shall be in 
the District of Columbia. The Director may establish regional 
offices of the Bureau, including in cities in which the Federal 
reserve banks, or branches of such banks, are located, in order 
to carry out the responsibilities assigned to the Bureau under 
the Federal consumer financial laws.

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SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

  (a) Appearances Before Congress.--The Director of the Bureau 
shall appear before the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial 
Services and the Committee on Energy and Commerce of the House 
of Representatives at semi-annual hearings regarding the 
reports required under subsection (b).
  (b) Reports Required.--The Bureau shall, concurrent with each 
semi-annual hearing referred to in subsection (a), prepare and 
submit to the President and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services and the Committee on Energy and Commerce of 
the House of Representatives, a report, beginning with the 
session following the designated transfer date. The Bureau may 
also submit such report to the Committee on Commerce, Science, 
and Transportation of the Senate.
  (c) Contents.--The reports required by subsection (b) shall 
include--
          (1) a discussion of the significant problems faced by 
        consumers in shopping for or obtaining consumer 
        financial products or services;
          (2) a justification of the budget request of the 
        previous year;
          (3) a list of the significant rules and orders 
        adopted by the Bureau, as well as other significant 
        initiatives conducted by the Bureau, during the 
        preceding year and the plan of the Bureau for rules, 
        orders, or other initiatives to be undertaken during 
        the upcoming period;
          (4) an analysis of complaints about consumer 
        financial products or services that the Bureau has 
        received and collected in its central database on 
        complaints during the preceding year;
          (5) a list, with a brief statement of the issues, of 
        the public supervisory and enforcement actions to which 
        the Bureau was a party during the preceding year;
          (6) the actions taken regarding rules, orders, and 
        supervisory actions with respect to covered persons 
        which are not credit unions or depository institutions;
          (7) an assessment of significant actions by State 
        attorneys general or State regulators relating to 
        Federal consumer financial law;
          (8) an analysis of the efforts of the Bureau to 
        fulfill the fair lending mission of the Bureau; and
          (9) an analysis of the efforts of the Bureau to 
        increase workforce and contracting diversity consistent 
        with the procedures established by the Office of 
        Minority and Women Inclusion.
  (d) Additional Requirement for Inspector General.--On a 
separate occasion from that described in subsection (a), the 
Inspector General of the Bureau shall appear, upon invitation, 
before the Committee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services of the House 
of Representatives at hearings no less frequently than twice 
annually, at a date determined by the chairman of the 
respective committee, regarding the reports required under 
subsection (b) and the reports required under section 5 of the 
Inspector General Act of 1978 (5 U.S.C. App.).

           *       *       *       *       *       *       *

SEC. 1017. FUNDING; PENALTIES AND FINES.

  (a) Transfer of Funds From Board Of Governors.--
          (1) In general.--Each year (or quarter of such year), 
        beginning on the designated transfer date, and each 
        quarter thereafter, the Board of Governors shall 
        transfer to the Bureau from the combined earnings of 
        the Federal Reserve System, the amount determined by 
        the Director to be reasonably necessary to carry out 
        the authorities of the Bureau under Federal consumer 
        financial law, taking into account such other sums made 
        available to the Bureau from the preceding year (or 
        quarter of such year).
          (2) Funding cap.--
                  (A) In general.--Notwithstanding paragraph 
                (1), and in accordance with this paragraph, the 
                amount that shall be transferred to the Bureau 
                in each fiscal year shall not exceed a fixed 
                percentage of the total operating expenses of 
                the Federal Reserve System, as reported in the 
                Annual Report, 2009, of the Board of Governors, 
                equal to--
                          (i) 10 percent of such expenses in 
                        fiscal year 2011;
                          (ii) 11 percent of such expenses in 
                        fiscal year 2012; and
                          (iii) 12 percent of such expenses in 
                        fiscal year 2013, and in each year 
                        thereafter.
                  (B) Adjustment of amount.--The dollar amount 
                referred to in subparagraph (A)(iii) shall be 
                adjusted annually, using the percent increase, 
                if any, in the employment cost index for total 
                compensation for State and local government 
                workers published by the Federal Government, or 
                the successor index thereto, for the 12-month 
                period ending on September 30 of the year 
                preceding the transfer.
                  (C) Funding for office of inspector 
                general.--Each fiscal year, the Bureau shall 
                dedicate 2 percent of the funds transferred 
                pursuant to paragraph (1) to the Office of the 
                Inspector General.
                  [(C)] (D) Reviewability.--Notwithstanding any 
                other provision in this title, the funds 
                derived from the Federal Reserve System 
                pursuant to this subsection shall not be 
                subject to review by the Committees on 
                Appropriations of the House of Representatives 
                and the Senate.
          (3) Transition period.--Beginning on the date of 
        enactment of this Act and until the designated transfer 
        date, the Board of Governors shall transfer to the 
        Bureau the amount estimated by the Secretary needed to 
        carry out the authorities granted to the Bureau under 
        Federal consumer financial law, from the date of 
        enactment of this Act until the designated transfer 
        date.
          (4) Budget and financial management.--
                  (A) Financial operating plans and 
                forecasts.--The Director shall provide to the 
                Director of the Office of Management and Budget 
                copies of the financial operating plans and 
                forecasts of the Director, as prepared by the 
                Director in the ordinary course of the 
                operations of the Bureau, and copies of the 
                quarterly reports of the financial condition 
                and results of operations of the Bureau, as 
                prepared by the Director in the ordinary course 
                of the operations of the Bureau.
                  (B) Financial statements.--The Bureau shall 
                prepare annually a statement of--
                          (i) assets and liabilities and 
                        surplus or deficit;
                          (ii) income and expenses; and
                          (iii) sources and application of 
                        funds.
                  (C) Financial management systems.--The Bureau 
                shall implement and maintain financial 
                management systems that comply substantially 
                with Federal financial management systems 
                requirements and applicable Federal accounting 
                standards.
                  (D) Assertion of internal controls.--The 
                Director shall provide to the Comptroller 
                General of the United States an assertion as to 
                the effectiveness of the internal controls that 
                apply to financial reporting by the Bureau, 
                using the standards established in section 
                3512(c) of title 31, United States Code.
                  (E) Rule of construction.--This subsection 
                may not be construed as implying any obligation 
                on the part of the Director to consult with or 
                obtain the consent or approval of the Director 
                of the Office of Management and Budget with 
                respect to any report, plan, forecast, or other 
                information referred to in subparagraph (A) or 
                any jurisdiction or oversight over the affairs 
                or operations of the Bureau.
                  (F) Financial statements.--The financial 
                statements of the Bureau shall not be 
                consolidated with the financial statements of 
                either the Board of Governors or the Federal 
                Reserve System.
          (5) Audit of the bureau.--
                  (A) In general.--The Comptroller General 
                shall annually audit the financial transactions 
                of the Bureau in accordance with the United 
                States generally accepted government auditing 
                standards, as may be prescribed by the 
                Comptroller General of the United States. The 
                audit shall be conducted at the place or places 
                where accounts of the Bureau are normally kept. 
                The representatives of the Government 
                Accountability Office shall have access to the 
                personnel and to all books, accounts, 
                documents, papers, records (including 
                electronic records), reports, files, and all 
                other papers, automated data, things, or 
                property belonging to or under the control of 
                or used or employed by the Bureau pertaining to 
                its financial transactions and necessary to 
                facilitate the audit, and such representatives 
                shall be afforded full facilities for verifying 
                transactions with the balances or securities 
                held by depositories, fiscal agents, and 
                custodians. All such books, accounts, 
                documents, records, reports, files, papers, and 
                property of the Bureau shall remain in 
                possession and custody of the Bureau. The 
                Comptroller General may obtain and duplicate 
                any such books, accounts, documents, records, 
                working papers, automated data and files, or 
                other information relevant to such audit 
                without cost to the Comptroller General, and 
                the right of access of the Comptroller General 
                to such information shall be enforceable 
                pursuant to section 716(c) of title 31, United 
                States Code.
                  (B) Report.--The Comptroller General shall 
                submit to the Congress a report of each annual 
                audit conducted under this subsection. The 
                report to the Congress shall set forth the 
                scope of the audit and shall include the 
                statement of assets and liabilities and surplus 
                or deficit, the statement of income and 
                expenses, the statement of sources and 
                application of funds, and such comments and 
                information as may be deemed necessary to 
                inform Congress of the financial operations and 
                condition of the Bureau, together with such 
                recommendations with respect thereto as the 
                Comptroller General may deem advisable. A copy 
                of each report shall be furnished to the 
                President and to the Bureau at the time 
                submitted to the Congress.
                  (C) Assistance and costs.--For the purpose of 
                conducting an audit under this subsection, the 
                Comptroller General may, in the discretion of 
                the Comptroller General, employ by contract, 
                without regard to section 3709 of the Revised 
                Statutes of the United States (41 U.S.C. 5), 
                professional services of firms and 
                organizations of certified public accountants 
                for temporary periods or for special purposes. 
                Upon the request of the Comptroller General, 
                the Director of the Bureau shall transfer to 
                the Government Accountability Office from funds 
                available, the amount requested by the 
                Comptroller General to cover the full costs of 
                any audit and report conducted by the 
                Comptroller General. The Comptroller General 
                shall credit funds transferred to the account 
                established for salaries and expenses of the 
                Government Accountability Office, and such 
                amount shall be available upon receipt and 
                without fiscal year limitation to cover the 
                full costs of the audit and report.
  (b) Consumer Financial Protection Fund.--
          (1) Separate fund in federal reserve established.--
        There is established in the Federal Reserve a separate 
        fund, to be known as the ``Bureau of Consumer Financial 
        Protection Fund'' (referred to in this section as the 
        ``Bureau Fund''). The Bureau Fund shall be maintained 
        and established at a Federal reserve bank, in 
        accordance with such requirements as the Board of 
        Governors may impose.
          (2) Fund receipts.--All amounts transferred to the 
        Bureau under subsection (a) shall be deposited into the 
        Bureau Fund.
          (3) Investment authority.--
                  (A) Amounts in bureau fund may be invested.--
                The Bureau may request the Board of Governors 
                to direct the investment of the portion of the 
                Bureau Fund that is not, in the judgment of the 
                Bureau, required to meet the current needs of 
                the Bureau.
                  (B) Eligible investments.--Investments 
                authorized by this paragraph shall be made in 
                obligations of the United States or obligations 
                that are guaranteed as to principal and 
                interest by the United States, with maturities 
                suitable to the needs of the Bureau Fund, as 
                determined by the Bureau.
                  (C) Interest and proceeds credited.--The 
                interest on, and the proceeds from the sale or 
                redemption of, any obligations held in the 
                Bureau Fund shall be credited to the Bureau 
                Fund.
  (c) Use of Funds.--
          (1) In general.--Funds obtained by, transferred to, 
        or credited to the Bureau Fund shall be immediately 
        available to the Bureau and under the control of the 
        Director, and shall remain available until expended, to 
        pay the expenses of the Bureau in carrying out its 
        duties and responsibilities. The compensation of the 
        Director and other employees of the Bureau and all 
        other expenses thereof may be paid from, obtained by, 
        transferred to, or credited to the Bureau Fund under 
        this section.
          (2) Funds that are not government funds.--Funds 
        obtained by or transferred to the Bureau Fund shall not 
        be construed to be Government funds or appropriated 
        monies.
          (3) Amounts not subject to apportionment.--
        Notwithstanding any other provision of law, amounts in 
        the Bureau Fund and in the Civil Penalty Fund 
        established under subsection (d) shall not be subject 
        to apportionment for purposes of chapter 15 of title 
        31, United States Code, or under any other authority.
  (d) Penalties and Fines.--
          (1) Establishment of victims relief fund.--There is 
        established in the Federal Reserve a separate fund, to 
        be known as the ``Consumer Financial Civil Penalty 
        Fund'' (referred to in this section as the ``Civil 
        Penalty Fund''). The Civil Penalty Fund shall be 
        maintained and established at a Federal reserve bank, 
        in accordance with such requirements as the Board of 
        Governors may impose. If the Bureau obtains a civil 
        penalty against any person in any judicial or 
        administrative action under Federal consumer financial 
        laws, the Bureau shall deposit into the Civil Penalty 
        Fund, the amount of the penalty collected.
          (2) Payment to victims.--Amounts in the Civil Penalty 
        Fund shall be available to the Bureau, without fiscal 
        year limitation, for payments to the victims of 
        activities for which civil penalties have been imposed 
        under the Federal consumer financial laws. To the 
        extent that such victims cannot be located or such 
        payments are otherwise not practicable, the Bureau may 
        use such funds for the purpose of consumer education 
        and financial literacy programs.
  (e) Authorization of Appropriations; Annual Report.--
          (1) Determination regarding need for appropriated 
        funds.--
                  (A) In general.--The Director is authorized 
                to determine that sums available to the Bureau 
                under this section will not be sufficient to 
                carry out the authorities of the Bureau under 
                Federal consumer financial law for the upcoming 
                year.
                  (B) Report required.--When making a 
                determination under subparagraph (A), the 
                Director shall prepare a report regarding the 
                funding of the Bureau, including the assets and 
                liabilities of the Bureau, and the extent to 
                which the funding needs of the Bureau are 
                anticipated to exceed the level of the amount 
                set forth in subsection (a)(2). The Director 
                shall submit the report to the President and to 
                the Committee on Appropriations of the Senate 
                and the Committee on Appropriations of the 
                House of Representatives.
          (2) Authorization of appropriations.--If the Director 
        makes the determination and submits the report pursuant 
        to paragraph (1), there are hereby authorized to be 
        appropriated to the Bureau, for the purposes of 
        carrying out the authorities granted in Federal 
        consumer financial law, $200,000,000 for each of fiscal 
        years 2010, 2011, 2012, 2013, and 2014.
          (3) Apportionment.--Notwithstanding any other 
        provision of law, the amounts in paragraph (2) shall be 
        subject to apportionment under section 1517 of title 
        31, United States Code, and restrictions that generally 
        apply to the use of appropriated funds in title 31, 
        United States Code, and other laws.
          (4) Annual report.--The Director shall prepare and 
        submit a report, on an annual basis, to the Committee 
        on Appropriations of the Senate and the Committee on 
        Appropriations of the House of Representatives 
        regarding the financial operating plans and forecasts 
        of the Director, the financial condition and results of 
        operations of the Bureau, and the sources and 
        application of funds of the Bureau, including any funds 
        appropriated in accordance with this subsection.

           *       *       *       *       *       *       *

                              ----------                              

     FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978

           *       *       *       *       *       *       *
TITLE X--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

           *       *       *       *       *       *       *

                              definitions

  Sec. 1003. As used in this title--
          [(1) the term ``Federal financial institutions 
        regulatory agencies'' means the Office of the 
        Comptroller of the Currency, the Board of Governors of 
        the Federal Reserve System, the Federal Deposit 
        Insurance Corporation, the Office of Thrift 
        Supervision, and the National Credit Union 
        Administration;]
          (1) the term ``Federal financial institutions 
        regulatory agencies''--
                  (A) means the Office of the Comptroller of 
                the Currency, the Board of Governors of the 
                Federal Reserve System, the Federal Deposit 
                Insurance Corporation, and the National Credit 
                Union Administration; and
                  (B) for purposes of sections 1012, 1013, and 
                1014, includes the Bureau of Consumer Financial 
                Protection;
          (2) the term ``Council'' means the Financial 
        Institutions Examination Council; and
          [(3) the term ``financial institution'' means a 
        commercial bank, a savings bank, a trust company, a 
        savings association, a building and loan association, a 
        homestead association, a cooperative bank, or a credit 
        union;]
          (3) the term ``financial institution''--
                  (A) means a commercial bank, a savings bank, 
                a trust company, a savings association, a 
                building and loan association, a homestead 
                association, a cooperative bank, or a credit 
                union; and
                  (B) for purposes of sections 1012, 1013, and 
                1014, includes a nondepository covered person 
                subject to supervision by the Bureau of 
                Consumer Financial Protection under section 
                1024 of the Consumer Financial Protection Act 
                of 2010 (12 U.S.C. 5514).

           *       *       *       *       *       *       *

                        expenses of the council

  Sec. 1005. [One-fifth] One-fourth of the costs and expenses 
of the Council, including the salaries of its employees, shall 
be paid by each of the Federal financial institutions 
regulatory agencies. Annual assessments for such share shall be 
levied by the Council based upon its projected budget for the 
year, and additional assessments may be made during the year if 
necessary.

           *       *       *       *       *       *       *

SEC. 1012. TIMELINESS OF EXAMINATION REPORTS.

  (a) In General.--
          (1) Final examination report.--A Federal financial 
        institutions regulatory agency shall provide a final 
        examination report to a financial institution not later 
        than 60 days after the later of--
                  (A) the exit interview for an examination of 
                the institution; or
                  (B) the provision of additional information 
                by the institution relating to the examination.
          (2) Exit interview.--If a financial institution is 
        not subject to a resident examiner program, the exit 
        interview shall occur not later than the end of the 9-
        month period beginning on the commencement of the 
        examination, except that such period may be extended by 
        the Federal financial institutions regulatory agency by 
        providing written notice to the institution and the 
        Independent Examination Review Director describing with 
        particularity the reasons that a longer period is 
        needed to complete the examination.
  (b) Examination Materials.--Upon the request of a financial 
institution, the Federal financial institutions regulatory 
agency shall include with the final report an appendix listing 
all examination or other factual information relied upon by the 
agency in support of a material supervisory determination.

SEC. 1013. OFFICE OF INDEPENDENT EXAMINATION REVIEW.

  (a) Establishment.--There is established in the Council an 
Office of Independent Examination Review (the ``Office'').
  (b) Head of Office.--There is established the position of the 
Independent Examination Review Director (the ``Director''), as 
the head of the Office. The Director shall be appointed by the 
Council and shall be independent from any member agency of the 
Council.
  (c) Term.--The Director shall serve for a term of 5 years, 
and may be appointed to serve a subsequent 5-year term.
  (d) Staffing.--The Director is authorized to hire staff to 
support the activities of the Office.
  (e) Duties.--The Director shall--
          (1) receive and, at the Director's discretion, 
        investigate complaints from financial institutions, 
        their representatives, or another entity acting on 
        behalf of such institutions, concerning examinations, 
        examination practices, or examination reports;
          (2) hold meetings, at least once every three months 
        and in locations designed to encourage participation 
        from all sections of the United States, with financial 
        institutions, their representatives, or another entity 
        acting on behalf of such institutions, to discuss 
        examination procedures, examination practices, or 
        examination policies;
          (3) in accordance with subsection (f), review 
        examination procedures of the Federal financial 
        institutions regulatory agencies to ensure that the 
        written examination policies of those agencies are 
        being followed in practice and adhere to the standards 
        for consistency established by the Council;
          (4) conduct a continuing and regular review of 
        examination quality assurance for all examination types 
        conducted by the Federal financial institutions 
        regulatory agencies;
          (5) adjudicate any supervisory appeal initiated under 
        section 1014; and
          (6) report annually to the Committee on Financial 
        Services of the House of Representatives, the Committee 
        on Banking, Housing, and Urban Affairs of the Senate, 
        and the Council, on the reviews carried out pursuant to 
        paragraphs (3) and (4), including compliance with the 
        requirements set forth in section 1012 regarding 
        timeliness of examination reports, and the Council's 
        recommendations for improvements in examination 
        procedures, practices, and policies.
  (f) Standard for Reviewing Examination Procedures.--In 
conducting reviews pursuant to subsection (e)(4), the Director 
shall prioritize factors relating to the safety and soundness 
of the financial system of the United States.
  (g) Removal.--If the Director is removed from office, the 
Council shall communicate in writing the reasons for any such 
removal to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate not later than 30 days before the 
removal.
  (h) Confidentiality.--The Director shall keep confidential 
all meetings with, discussions with, and information provided 
by financial institutions.

SEC. 1014. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY 
                    DETERMINATIONS.

  (a) In General.--A financial institution shall have the right 
to obtain an independent review of a material supervisory 
determination contained in a final report of examination.
  (b) Notice.--
          (1) Timing.--A financial institution seeking review 
        of a material supervisory determination under this 
        section shall file a written notice with the 
        Independent Examination Review Director (the 
        ``Director'') within 60 days after receiving the final 
        report of examination that is the subject of such 
        review.
          (2) Identification of determination.--The written 
        notice shall identify the material supervisory 
        determination that is the subject of the independent 
        examination review, and a statement of the reasons why 
        the institution believes that the determination is 
        incorrect or should otherwise be modified.
          (3) Information to be provided to institution.--Any 
        information relied upon by the agency in the final 
        report that is not in the possession of the financial 
        institution may be requested by the financial 
        institution and shall be delivered promptly by the 
        agency to the financial institution.
  (c) Right to Hearing.--
          (1) In general.--The Director shall determine the 
        merits of the appeal on the record or, at the financial 
        institution's election, shall refer the appeal to an 
        Administrative Law Judge to conduct a confidential 
        hearing pursuant to the procedures set forth under 
        sections 556 and 557 of title 5, United States Code, 
        which hearing shall take place not later than 60 days 
        after the petition for review was received by the 
        Director, and to issue a proposed decision to the 
        Director based upon the record established at such 
        hearing.
          (2) Standard of review.--In rendering a determination 
        or recommendation under this subsection, neither the 
        Administrative Law Judge nor the Director shall defer 
        to the opinions of the examiner or agency, but shall 
        conduct a de novo review to independently determine the 
        appropriateness of the agency's decision based upon the 
        relevant statutes, regulations, and other appropriate 
        guidance, as well as evidence adduced at any hearing.
  (d) Final Decision.--A decision by the Director on an 
independent review under this section shall--
          (1) be made not later than 60 days after the record 
        has been closed; and
          (2) subject to subsection (e), be deemed a final 
        agency action and shall bind the agency whose 
        supervisory determination was the subject of the review 
        and the financial institution requesting the review.
  (e) Limited Review by FFIEC.--
          (1) In general.--If the agency whose supervisory 
        determination was the subject of the review believes 
        that the Director's decision under subsection (d) would 
        pose an imminent threat to the safety and soundness of 
        the financial institution, such agency may file a 
        written notice seeking review of the Director's 
        decision with the Council within 10 days of receiving 
        the Director's decision.
          (2) Standard of review.--In making a determination 
        under this subsection, the Council shall conduct a 
        review to determine whether there is substantial 
        evidence that the Director's decision would pose an 
        imminent threat to the safety and soundness of the 
        financial institution.
          (3) Final determination.--A determination by the 
        Council shall--
                  (A) be made not later than 30 days after the 
                filing of the notice pursuant to paragraph (1); 
                and
                  (B) be deemed a final agency action and shall 
                bind the agency whose supervisory determination 
                was the subject of the review and the financial 
                institution requesting the review.
  (f) Right to Judicial Review.--A financial institution shall 
have the right to petition for review of final agency action 
under this section by filing a Petition for Review within 60 
days of the Director's decision or the Council's decision in 
the United States Court of Appeals for the District of Columbia 
Circuit or the Circuit in which the financial institution is 
located.
  (g) Report.--The Director shall report annually to the 
Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate on actions taken under this section, including the types 
of issues that the Director has reviewed and the results of 
those reviews. In no case shall such a report contain 
information about individual financial institutions or any 
confidential or privileged information shared by financial 
institutions.
  (h) Retaliation Prohibited.--A Federal financial institutions 
regulatory agency may not--
          (1) retaliate against a financial institution, 
        including service providers, or any institution-
        affiliated party (as defined under section 3 of the 
        Federal Deposit Insurance Act), for exercising 
        appellate rights under this section; or
          (2) delay or deny any agency action that would 
        benefit a financial institution or any institution-
        affiliated party on the basis that an appeal under this 
        section is pending under this section.
  (i) Rule of Construction.--Nothing in this section may be 
construed--
          (1) to affect the right of a Federal financial 
        institutions regulatory agency to take enforcement or 
        other supervisory actions related to a material 
        supervisory determination under review under this 
        section; or
          (2) to prohibit the review under this section of a 
        material supervisory determination with respect to 
        which there is an ongoing enforcement or other 
        supervisory action.

           *       *       *       *       *       *       *

                              ----------                              

  RIEGLE COMMUNITY DEVELOPMENT AND REGULATORY IMPROVEMENT ACT OF 1994

           *       *       *       *       *       *       *
TITLE III--PAPERWORK REDUCTION AND REGULATORY IMPROVEMENT

           *       *       *       *       *       *       *

SEC. 309. REGULATORY APPEALS PROCESS, OMBUDSMAN, AND ALTERNATIVE 
                    DISPUTE RESOLUTION.

  (a) In General.--Not later than 180 days after the date of 
enactment of this Act, each appropriate Federal banking agency, 
the Bureau of Consumer Financial Protection, and the National 
Credit Union Administration Board shall establish an 
independent intra-agency appellate process. The process shall 
be available to review material supervisory determinations made 
at insured depository institutions or at insured credit unions 
that the agency supervises.
  (b) Review Process.--In establishing the independent 
appellate process under subsection (a), each agency shall 
ensure that--
          (1) any appeal of a material supervisory 
        determination by an insured depository institution or 
        insured credit union is heard and decided 
        expeditiously; and
          (2) appropriate safeguards exist for protecting [the 
        appellant from retaliation by agency examiners] the 
        insured depository institution or insured credit union 
        from retaliation by the agencies referred to in 
        subsection (a).
For purposes of this subsection and subsection (e), retaliation 
includes delaying consideration of, or withholding approval of, 
any request, notice, or application that otherwise would have 
been approved, but for the exercise of the institution's or 
credit union's rights under this section.
  (c) Comment Period.--Not later than 90 days after the date of 
enactment of this Act, each appropriate Federal banking agency 
and the National Credit Union Administration Board shall 
provide public notice and opportunity for comment on proposed 
guidelines for the establishment of an appellate process under 
this section.
  (d) Agency Ombudsman.--
          (1) Establishment required.--Not later than 180 days 
        after the date of enactment of this Act, each Federal 
        banking agency and the National Credit Union 
        Administration Board shall appoint an ombudsman.
          (2) Duties of ombudsman.--The ombudsman appointed in 
        accordance with paragraph (1) for any agency shall--
                  (A) act as a liaison between the agency and 
                any affected person with respect to any problem 
                such party may have in dealing with the agency 
                resulting from the regulatory activities of the 
                agency; and
                  (B) assure that safeguards exist to encourage 
                complainants to come forward and preserve 
                confidentiality.
  (e) Alternative Dispute Resolution Pilot Program.--
          (1) In general.--Not later than 18 months after the 
        date of enactment of this Act, each Federal banking 
        agency and the National Credit Union Administration 
        Board shall develop and implement a pilot program for 
        using alternative means of dispute resolution of issues 
        in controversy (hereafter in this section referred to 
        as the ``alternative dispute resolution program'') that 
        is consistent with the requirements of subchapter IV of 
        chapter 5 of title 5, United States Code, if the 
        parties to the dispute, including the agency, agree to 
        such proceeding.
          (2) Standards.--An alternative dispute resolution 
        pilot program developed under paragraph (1) shall--
                  (A) be fair to all interested parties to a 
                dispute;
                  (B) resolve disputes expeditiously; [and]
                  (C) be less costly than traditional means of 
                dispute resolution, including litigation[.]; 
                and
                  (D) ensure that appropriate safeguards exist 
                for protecting the insured depository 
                institution or insured credit union from 
                retaliation by any agency referred to in 
                subsection (a) for exercising its rights under 
                this subsection.
          (3) Independent evaluation.--Not later than 18 months 
        after the date on which a pilot program is implemented 
        under paragraph (1), the Administrative Conference of 
        the United States shall submit to the Congress a report 
        containing--
                  (A) an evaluation of that pilot program;
                  (B) the extent to which the pilot programs 
                meet the standards established under paragraph 
                (2);
                  (C) the extent to which parties to disputes 
                were offered alternative means of dispute 
                resolution and the frequency with which the 
                parties, including the agencies, accepted or 
                declined to use such means; and
                  (D) any recommendations of the Conference to 
                improve the alternative dispute resolution 
                procedures of the Federal banking agencies and 
                the National Credit Union Administration Board.
          (4) Implementation of program.--At any time after 
        completion of the evaluation under paragraph (3)(A), 
        any Federal banking agency and the National Credit 
        Union Administration Board may implement an alternative 
        dispute resolution program throughout the agency, 
        taking into account the results of that evaluation.
          (5) Coordination with existing agency adr programs.--
                  (A) Evaluation required.--If any Federal 
                banking agency or the National Credit Union 
                Administration maintains an alternative dispute 
                resolution program as of the date of enactment 
                of this Act under any other provision of law, 
                the Administrative Conference of the United 
                States shall include such program in the 
                evaluation conducted under paragraph (3)(A).
                  (B) Multiple adr programs.--No provision of 
                this section shall be construed as precluding 
                any Federal banking agency or the National 
                Credit Union Administration Board from 
                establishing more than 1 alternative means of 
                dispute resolution.
  (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Material supervisory determinations.--The term 
        ``material supervisory determinations''--
                  (A) includes determinations relating to--
                          (i) examination ratings;
                          (ii) the adequacy of loan loss 
                        reserve provisions; [and]
                          (iii) loan classifications on loans 
                        that are significant to an institution; 
                        [and]
                          (iv) any issue specifically listed in 
                        an exam report as a matter requiring 
                        attention by the institution's 
                        management or board of directors; and
                          (v) any suspension or removal of an 
                        institution's status as eligible for 
                        expedited processing of applications, 
                        requests, notices, or filings on the 
                        grounds of a supervisory or compliance 
                        concern, regardless of whether that 
                        concern has been cited as a basis for 
                        another material supervisory 
                        determination or matter requiring 
                        attention in an examination report, 
                        provided that the conduct at issue did 
                        not involve violation of any criminal 
                        law; and
                  (B) does not include a determination by a 
                Federal banking agency or the National Credit 
                Union Administration Board 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 
                or section 212 of the Federal Credit Union Act, 
                as appropriate.
          (2) Independent appellate process.--The term 
        ``independent appellate process'' means a review by an 
        agency official who does not directly or indirectly 
        report to the agency official who made the material 
        supervisory determination under review.
          (3) Alternative means of dispute resolution.--The 
        term ``alternative means of dispute resolution'' has 
        the meaning given to such term in section 571 of title 
        5, United States Code.
          (4) Issues in controversy.--The term ``issues in 
        controversy'' means--
                  (A) any final agency decision involving any 
                claim against an insured depository institution 
                or insured credit union for which the agency 
                has been appointed conservator or receiver or 
                for which a liquidating agent has been 
                appointed, as the case may be;
                  (B) any final action taken by an agency in 
                the agency's capacity as conservator or 
                receiver for an insured depository institution 
                or by the liquidating agent appointed for an 
                insured credit union; and
                  (C) any other issue for which the appropriate 
                Federal banking agency or the National Credit 
                Union Administration Board determines that 
                alternative means of dispute resolution would 
                be appropriate.
  (g) Effect on Other Authority.--Nothing in this section shall 
affect the authority of an appropriate Federal banking agency 
or the National Credit Union Administration Board to take 
enforcement or supervisory action.

           *       *       *       *       *       *       *

                              ----------                              

                        FEDERAL CREDIT UNION ACT

           *       *       *       *       *       *       *
TITLE II--SHARE INSURANCE

           *       *       *       *       *       *       *

              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.
  (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 Bureau of Consumer Financial 
        Protection, 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 Bureau of Consumer Financial 
                Protection, the Administration, any State 
                credit union supervisor, or foreign banking 
                authority, but for this subsection.

           *       *       *       *       *       *       *

                              ----------                              

             REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974

           *       *       *       *       *       *       *
                      uniform settlement statement

  Sec. 4. (a) The Bureau shall publish a single, integrated 
disclosure for mortgage loan transactions (including real 
estate settlement cost statements) which includes the 
disclosure requirements of this section and section 5, in 
conjunction with the disclosure requirements of the Truth in 
Lending Act that, taken together, may apply to a transaction 
that is subject to both or either provisions of law. The 
purpose of such model disclosure shall be to facilitate 
compliance with the disclosure requirements of this title and 
the Truth in Lending Act, and to aid the borrower or lessee in 
understanding the transaction by utilizing readily 
understandable language to simplify the technical nature of the 
disclosures. Such forms shall conspicuously and clearly 
[itemize all charges] itemize all actual charges imposed upon 
the borrower [and all charges imposed upon the seller in 
connection with the settlement and] and the seller in 
connection with the settlement. Such forms shall indicate 
whether any title insurance premium included in such charges 
covers or insures the lender's interest in the property, the 
borrower's interest, or both. Charges for any title insurance 
premium disclosed on such forms shall be equal to the amount 
charged for each individual title insurance policy, subject to 
any discounts as required by State regulation or the title 
company rate filings. The Bureau may, by regulation, permit the 
deletion from the forms prescribed under this section of items 
which are not, under local laws or customs, applicable in any 
locality, except that such regulation shall require that the 
numerical code prescribed by the Bureau be retained in forms to 
be used in all localities. Nothing in this section may be 
construed to require that that part of the standard forms which 
relates to the borrower's transaction to be furnished to the 
seller, or to require that that part of the standard forms 
which relates to the seller be furnished to the borrower.
  (b) The forms prescribed under this section shall be 
completed and made available for inspection by the borrower at 
or before settlement by the person conducting the settlement, 
except that (1) the Bureau may exempt from the requirements of 
this section settlements occurring in localities where the 
final settlement statement is not customarily provided at or 
before the date of settlement, or settlements where such 
requirements are impractical and (2) the borrower may, in 
accordance with regulations of the Bureau, waive his right to 
have the forms made available at such time. Upon the request of 
the borrower to inspect the forms prescribed under this section 
during the business day immediately preceding the day of 
settlement, the person who will conduct the settlement shall 
permit the borrower to inspect those items which are known to 
such person during such preceding day.
  (c) The standard form described in subsection (a) may 
include, in the case of an appraisal coordinated by an 
appraisal management company (as such term is defined in 
section 1121(11) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(11))), a 
clear disclosure of--
          (1) the fee paid directly to the appraiser by such 
        company; and
          (2) the administration fee charged by such company.

           *       *       *       *       *       *       *

                              ----------                              

                     INSPECTOR GENERAL ACT OF 1978

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

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

           *       *       *       *       *       *       *

                              definitions

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

           *       *       *       *       *       *       *

                              ----------                              

               CONSUMER FINANCIAL PROTECTION ACT OF 2010

           *       *       *       *       *       *       *
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

           *       *       *       *       *       *       *

          Subtitle A--Bureau of Consumer Financial Protection

SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL 
                    PROTECTION.

  (a) Bureau Established.--There is established in the Federal 
Reserve System, an independent bureau to be known as the 
``Bureau of Consumer Financial Protection'', which shall 
regulate the offering and provision of consumer financial 
products or services under the Federal consumer financial laws. 
The Bureau shall be considered an Executive agency, as defined 
in section 105 of title 5, United States Code. Except as 
otherwise provided expressly by law, all Federal laws dealing 
with public or Federal contracts, property, works, officers, 
employees, budgets, or funds, including the provisions of 
chapters 5 and 7 of title 5, shall apply to the exercise of the 
powers of the Bureau.
  (b) Director and Deputy Director.--
          (1) In general.--There is established the position of 
        the Director, who shall serve as the head of the 
        Bureau.
          (2) Appointment.--Subject to paragraph (3), the 
        Director shall be appointed by the President, by and 
        with the advice and consent of the Senate.
          (3) Qualification.--The President shall nominate the 
        Director from among individuals who are citizens of the 
        United States.
          (4) Compensation.--The Director shall be compensated 
        at the rate prescribed for level II of the Executive 
        Schedule under section 5313 of title 5, United States 
        Code.
          (5) Deputy director.--There is established the 
        position of Deputy Director, who shall--
                  (A) be appointed by the Director; and
                  (B) serve as acting Director in the absence 
                or unavailability of the Director.
  (c) Term.--
          (1) In general.--The Director shall serve for a term 
        of 5 years.
          (2) Expiration of term.--An individual may serve as 
        Director after the expiration of the term for which 
        appointed, until a successor has been appointed and 
        qualified.
          [(3) Removal for cause.--The President may remove the 
        Director for inefficiency, neglect of duty, or 
        malfeasance in office.]
  (d) Service Restriction.--No Director or Deputy Director may 
hold any office, position, or employment in any Federal reserve 
bank, Federal home loan bank, covered person, or service 
provider during the period of service of such person as 
Director or Deputy Director.
  (e) Offices.--The principal office of the Bureau shall be in 
the District of Columbia. The Director may establish regional 
offices of the Bureau, including in cities in which the Federal 
reserve banks, or branches of such banks, are located, in order 
to carry out the responsibilities assigned to the Bureau under 
the Federal consumer financial laws.

           *       *       *       *       *       *       *

SEC. 1017. FUNDING; PENALTIES AND FINES.

  (a)  [Transfer of Funds From Board Of Governors.--] Budget, 
Financial Management, and Audit._
          [(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 appropriation.--There authorized 
        to be appropriated for fiscal year 2020 to the Bureau 
        from the combined earnings of the Federal Reserve 
        System $485,000,000.
          [(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.

           *       *       *       *       *       *       *

                              ----------                              

                      TITLE 5, UNITED STATES CODE

PART I--THE AGENCIES GENERALLY

           *       *       *       *       *       *       *

         [CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

[Sec. 801. Congressional review

  [(a)(1)(A) Before a rule can take effect, the Federal agency 
promulgating such rule shall submit to each House of the 
Congress and to the Comptroller General a report containing--
          [(i) a copy of the rule;
          [(ii) a concise general statement relating to the 
        rule, including whether it is a major rule; and
          [(iii) the proposed effective date of the rule.
  [(B) On the date of the submission of the report under 
subparagraph (A), the Federal agency promulgating the rule 
shall submit to the Comptroller General and make available to 
each House of Congress--
          [(i) a complete copy of the cost-benefit analysis of 
        the rule, if any;
          [(ii) the agency's actions relevant to sections 603, 
        604, 605, 607, and 609;
          [(iii) the agency's actions relevant to sections 202, 
        203, 204, and 205 of the Unfunded Mandates Reform Act 
        of 1995; and
          [(iv) any other relevant information or requirements 
        under any other Act and any relevant Executive orders.
  [(C) Upon receipt of a report submitted under subparagraph 
(A), each House shall provide copies of the report to the 
chairman and ranking member of each standing committee with 
jurisdiction under the rules of the House of Representatives or 
the Senate to report a bill to amend the provision of law under 
which the rule is issued.
  [(2)(A) The Comptroller General shall provide a report on 
each major rule to the committees of jurisdiction in each House 
of the Congress by the end of 15 calendar days after the 
submission or publication date as provided in section 
802(b)(2). The report of the Comptroller General shall include 
an assessment of the agency's compliance with procedural steps 
required by paragraph (1)(B).
  [(B) Federal agencies shall cooperate with the Comptroller 
General by providing information relevant to the Comptroller 
General's report under subparagraph (A).
  [(3) A major rule relating to a report submitted under 
paragraph (1) shall take effect on the latest of--
          [(A) the later of the date occurring 60 days after 
        the date on which--
                  [(i) the Congress receives the report 
                submitted under paragraph (1); or
                  [(ii) the rule is published in the Federal 
                Register, if so published;
          [(B) if the Congress passes a joint resolution of 
        disapproval described in section 802 relating to the 
        rule, and the President signs a veto of such 
        resolution, the earlier date--
                  [(i) on which either House of Congress votes 
                and fails to override the veto of the 
                President; or
                  [(ii) occurring 30 session days after the 
                date on which the Congress received the veto 
                and objections of the President; or
          [(C) the date the rule would have otherwise taken 
        effect, if not for this section (unless a joint 
        resolution of disapproval under section 802 is 
        enacted).
  [(4) Except for a major rule, a rule shall take effect as 
otherwise provided by law after submission to Congress under 
paragraph (1).
  [(5) Notwithstanding paragraph (3), the effective date of a 
rule shall not be delayed by operation of this chapter beyond 
the date on which either House of Congress votes to reject a 
joint resolution of disapproval under section 802.
  [(b)(1) A rule shall not take effect (or continue), if the 
Congress enacts a joint resolution of disapproval, described 
under section 802, of the rule.
  [(2) A rule that does not take effect (or does not continue) 
under paragraph (1) may not be reissued in substantially the 
same form, and a new rule that is substantially the same as 
such a rule may not be issued, unless the reissued or new rule 
is specifically authorized by a law enacted after the date of 
the joint resolution disapproving the original rule.
  [(c)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (3)), a rule that would not take 
effect by reason of subsection (a)(3) may take effect, if the 
President makes a determination under paragraph (2) and submits 
written notice of such determination to the Congress.
  [(2) Paragraph (1) applies to a determination made by the 
President by Executive order that the rule should take effect 
because such rule is--
          [(A) necessary because of an imminent threat to 
        health or safety or other emergency;
          [(B) necessary for the enforcement of criminal laws;
          [(C) necessary for national security; or
          [(D) issued pursuant to any statute implementing an 
        international trade agreement.
  [(3) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under section 
802 or the effect of a joint resolution of disapproval under 
this section.
  [(d)(1) In addition to the opportunity for review otherwise 
provided under this chapter, in the case of any rule for which 
a report was submitted in accordance with subsection (a)(1)(A) 
during the period beginning on the date occurring--
          [(A) in the case of the Senate, 60 session days, or
          [(B) in the case of the House of Representatives, 60 
        legislative days,
before the date the Congress adjourns a session of Congress 
through the date on which the same or succeeding Congress first 
convenes its next session, section 802 shall apply to such rule 
in the succeeding session of Congress.
  [(2)(A) In applying section 802 for purposes of such 
additional review, a rule described under paragraph (1) shall 
be treated as though--
          [(i) such rule were published in the Federal Register 
        (as a rule that shall take effect) on--
                  [(I) in the case of the Senate, the 15th 
                session day, or
                  [(II) in the case of the House of 
                Representatives, the 15th legislative day,
        after the succeeding session of Congress first 
        convenes; and
          [(ii) a report on such rule were submitted to 
        Congress under subsection (a)(1) on such date.
  [(B) Nothing in this paragraph shall be construed to affect 
the requirement under subsection (a)(1) that a report shall be 
submitted to Congress before a rule can take effect.
  [(3) A rule described under paragraph (1) shall take effect 
as otherwise provided by law (including other subsections of 
this section).
  [(e)(1) For purposes of this subsection, section 802 shall 
also apply to any major rule promulgated between March 1, 1996, 
and the date of the enactment of this chapter.
  [(2) In applying section 802 for purposes of Congressional 
review, a rule described under paragraph (1) shall be treated 
as though--
          [(A) such rule were published in the Federal Register 
        on the date of enactment of this chapter; and
          [(B) a report on such rule were submitted to Congress 
        under subsection (a)(1) on such date.
  [(3) The effectiveness of a rule described under paragraph 
(1) shall be as otherwise provided by law, unless the rule is 
made of no force or effect under section 802.
  [(f) Any rule that takes effect and later is made of no force 
or effect by enactment of a joint resolution under section 802 
shall be treated as though such rule had never taken effect.
  [(g) If the Congress does not enact a joint resolution of 
disapproval under section 802 respecting a rule, no court or 
agency may infer any intent of the Congress from any action or 
inaction of the Congress with regard to such rule, related 
statute, or joint resolution of disapproval.

[Sec. 802. Congressional disapproval procedure

  [(a) For purposes of this section, the term ``joint 
resolution'' means only a joint resolution introduced in the 
period beginning on the date on which the report referred to in 
section 801(a)(1)(A) is received by Congress and ending 60 days 
thereafter (excluding days either House of Congress is 
adjourned for more than 3 days during a session of Congress), 
the matter after the resolving clause of which is as follows: 
``That Congress disapproves the rule submitted by the -- -- 
relating to -- --, and such rule shall have no force or 
effect.'' (The blank spaces being appropriately filled in).
  [(b)(1) A joint resolution described in subsection (a) shall 
be referred to the committees in each House of Congress with 
jurisdiction.
  [(2) For purposes of this section, the term ``submission or 
publication date'' means the later of the date on which--
          [(A) the Congress receives the report submitted under 
        section 801(a)(1); or
          [(B) the rule is published in the Federal Register, 
        if so published.
  [(c) In the Senate, if the committee to which is referred a 
joint resolution described in subsection (a) has not reported 
such joint resolution (or an identical joint resolution) at the 
end of 20 calendar days after the submission or publication 
date defined under subsection (b)(2), such committee may be 
discharged from further consideration of such joint resolution 
upon a petition supported in writing by 30 Members of the 
Senate, and such joint resolution shall be placed on the 
calendar.
  [(d)(1) In the Senate, when the committee to which a joint 
resolution is referred has reported, or when a committee is 
discharged (under subsection (c)) from further consideration of 
a joint resolution described in subsection (a), it is at any 
time thereafter in order (even though a previous motion to the 
same effect has been disagreed to) for a motion to proceed to 
the consideration of the joint resolution, and all points of 
order against the joint resolution (and against consideration 
of the joint resolution) are waived. The motion is not subject 
to amendment, or to a motion to postpone, or to a motion to 
proceed to the consideration of other business. A motion to 
reconsider the vote by which the motion is agreed to or 
disagreed to shall not be in order. If a motion to proceed to 
the consideration of the joint resolution is agreed to, the 
joint resolution shall remain the unfinished business of the 
Senate until disposed of.
  [(2) In the Senate, debate on the joint resolution, and on 
all debatable motions and appeals in connection therewith, 
shall be limited to not more than 10 hours, which shall be 
divided equally between those favoring and those opposing the 
joint resolution. A motion further to limit debate is in order 
and not debatable. An amendment to, or a motion to postpone, or 
a motion to proceed to the consideration of other business, or 
a motion to recommit the joint resolution is not in order.
  [(3) In the Senate, immediately following the conclusion of 
the debate on a joint resolution described in subsection (a), 
and a single quorum call at the conclusion of the debate if 
requested in accordance with the rules of the Senate, the vote 
on final passage of the joint resolution shall occur.
  [(4) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure 
relating to a joint resolution described in subsection (a) 
shall be decided without debate.
  [(e) In the Senate the procedure specified in subsection (c) 
or (d) shall not apply to the consideration of a joint 
resolution respecting a rule--
          [(1) after the expiration of the 60 session days 
        beginning with the applicable submission or publication 
        date, or
          [(2) if the report under section 801(a)(1)(A) was 
        submitted during the period referred to in section 
        801(d)(1), after the expiration of the 60 session days 
        beginning on the 15th session day after the succeeding 
        session of Congress first convenes.
  [(f) If, before the passage by one House of a joint 
resolution of that House described in subsection (a), that 
House receives from the other House a joint resolution 
described in subsection (a), then the following procedures 
shall apply:
          [(1) The joint resolution of the other House shall 
        not be referred to a committee.
          [(2) With respect to a joint resolution described in 
        subsection (a) of the House receiving the joint 
        resolution--
                  [(A) the procedure in that House shall be the 
                same as if no joint resolution had been 
                received from the other House; but
                  [(B) the vote on final passage shall be on 
                the joint resolution of the other House.
  [(g) This section is enacted by Congress--
          [(1) as an exercise of the rulemaking power of the 
        Senate and House of Representatives, respectively, and 
        as such it is deemed a part of the rules of each House, 
        respectively, but applicable only with respect to the 
        procedure to be followed in that House in the case of a 
        joint resolution described in subsection (a), and it 
        supersedes other rules only to the extent that it is 
        inconsistent with such rules; and
          [(2) with full recognition of the constitutional 
        right of either House to change the rules (so far as 
        relating to the procedure of that House) at any time, 
        in the same manner, and to the same extent as in the 
        case of any other rule of that House.

[Sec. 803. Special rule on statutory, regulatory, and judicial 
                    deadlines

  [(a) In the case of any deadline for, relating to, or 
involving any rule which does not take effect (or the 
effectiveness of which is terminated) because of enactment of a 
joint resolution under section 802, that deadline is extended 
until the date 1 year after the date of enactment of the joint 
resolution. Nothing in this subsection shall be construed to 
affect a deadline merely by reason of the postponement of a 
rule's effective date under section 801(a).
  [(b) The term ``deadline'' means any date certain for 
fulfilling any obligation or exercising any authority 
established by or under any Federal statute or regulation, or 
by or under any court order implementing any Federal statute or 
regulation.

[Sec. 804. Definitions

   [For purposes of this chapter--
          [(1) The term ``Federal agency'' means any agency as 
        that term is defined in section 551(1).
          [(2) The term ``major rule'' means any rule that the 
        Administrator of the Office of Information and 
        Regulatory Affairs of the Office of Management and 
        Budget finds has resulted in or is likely to result 
        in--
                  [(A) an annual effect on the economy of 
                $100,000,000 or more;
                  [(B) a major increase in costs or prices for 
                consumers, individual industries, Federal, 
                State, or local government agencies, or 
                geographic regions; or
                  [(C) significant adverse effects on 
                competition, employment, investment, 
                productivity, innovation, or on the ability of 
                United States-based enterprises to compete with 
                foreign-based enterprises in domestic and 
                export markets.
        The term does not include any rule promulgated under 
        the Telecommunications Act of 1996 and the amendments 
        made by that Act.
          [(3) The term ``rule'' has the meaning given such 
        term in section 551, except that such term does not 
        include--
                  [(A) any rule of particular applicability, 
                including a rule that approves or prescribes 
                for the future rates, wages, prices, services, 
                or allowances therefor, corporate or financial 
                structures, reorganizations, mergers, or 
                acquisitions thereof, or accounting practices 
                or disclosures bearing on any of the foregoing;
                  [(B) any rule relating to agency management 
                or personnel; or
                  [(C) any rule of agency organization, 
                procedure, or practice that does not 
                substantially affect the rights or obligations 
                of non-agency parties.

[Sec. 805. Judicial review

  [No determination, finding, action, or omission under this 
chapter shall be subject to judicial review.

[Sec. 806. Applicability; severability

  [(a) This chapter shall apply notwithstanding any other 
provision of law.
  [(b) If any provision of this chapter or the application of 
any provision of this chapter to any person or circumstance, is 
held invalid, the application of such provision to other 
persons or circumstances, and the remainder of this chapter, 
shall not be affected thereby.

[Sec. 807. Exemption for monetary policy

  [Nothing in this chapter shall apply to rules that concern 
monetary policy proposed or implemented by the Board of 
Governors of the Federal Reserve System or the Federal Open 
Market Committee.

[Sec. 808. Effective date of certain rules

   [Notwithstanding section 801--
          [(1) any rule that establishes, modifies, opens, 
        closes, or conducts a regulatory program for a 
        commercial, recreational, or subsistence activity 
        related to hunting, fishing, or camping, or
          [(2) any rule which an agency for good cause finds 
        (and incorporates the finding and a brief statement of 
        reasons therefor in the rule issued) that notice and 
        public procedure thereon are impracticable, 
        unnecessary, or contrary to the public interest,
shall take effect at such time as the Federal agency 
promulgating the rule determines.]

          CHAPTER 8--CONGRESSIONAL REVIEW OF BUREAU RULEMAKING

Sec.
801. Congressional review.
802. Congressional approval procedure for major rules.
803. Congressional disapproval procedure for nonmajor rules.
804. Definitions.
805. Judicial review.
806. Exemption for monetary policy.
807. Effective date of certain rules.
808. Regulatory cut-go requirement.
809. Review of rules currently in effect.

Sec. 801. Congressional review

  (a)(1)(A) Before a rule may take effect, the Bureau shall 
satisfy the requirements of section 808 and shall publish in 
the Federal Register a list of information on which the rule is 
based, including data, scientific and economic studies, and 
cost-benefit analyses, and identify how the public can access 
such information online, and shall submit to each House of the 
Congress and to the Comptroller General a report containing--
          (i) a copy of the rule;
          (ii) a concise general statement relating to the 
        rule;
          (iii) a classification of the rule as a major or 
        nonmajor rule, including an explanation of the 
        classification specifically addressing each criteria 
        for a major rule contained within sections 804(2)(A), 
        804(2)(B), and 804(2)(C);
          (iv) a list of any other related regulatory actions 
        intended to implement the same statutory provision or 
        regulatory objective as well as the individual and 
        aggregate economic effects of those actions; and
          (v) the proposed effective date of the rule.
  (B) On the date of the submission of the report under 
subparagraph (A), the Bureau shall submit to the Comptroller 
General and make available to each House of Congress--
          (i) a complete copy of the cost-benefit analysis of 
        the rule, if any, including an analysis of any jobs 
        added or lost, differentiating between public and 
        private sector jobs;
          (ii) the Bureau's actions pursuant to sections 603, 
        604, 605, 607, and 609 of this title;
          (iii) the Bureau's actions pursuant to sections 202, 
        203, 204, and 205 of the Unfunded Mandates Reform Act 
        of 1995; and
          (iv) any other relevant information or requirements 
        under any other Act and any relevant Executive orders.
  (C) Upon receipt of a report submitted under subparagraph 
(A), each House shall provide copies of the report to the 
chairman and ranking member of each standing committee with 
jurisdiction under the rules of the House of Representatives or 
the Senate to report a bill to amend the provision of law under 
which the rule is issued.
  (2)(A) The Comptroller General shall provide a report on each 
major rule to the committees of jurisdiction by the end of 15 
calendar days after the submission or publication date. The 
report of the Comptroller General shall include an assessment 
of the Bureau's compliance with procedural steps required by 
paragraph (1)(B) and an assessment of whether the major rule 
imposes any new limits or mandates on private-sector activity.
  (B) Federal agencies shall cooperate with the Comptroller 
General by providing information relevant to the Comptroller 
General's report under subparagraph (A).
  (3) A major rule relating to a report submitted under 
paragraph (1) shall take effect upon enactment of a joint 
resolution of approval described in section 802 or as provided 
for in the rule following enactment of a joint resolution of 
approval described in section 802, whichever is later.
  (4) A nonmajor rule shall take effect as provided by section 
803 after submission to Congress under paragraph (1).
  (5) If a joint resolution of approval relating to a major 
rule is not enacted within the period provided in subsection 
(b)(2), then a joint resolution of approval relating to the 
same rule may not be considered under this chapter in the same 
Congress by either the House of Representatives or the Senate.
  (b)(1) A major rule shall not take effect unless the Congress 
enacts a joint resolution of approval described under section 
802.
  (2) If a joint resolution described in subsection (a) is not 
enacted into law by the end of 70 session days or legislative 
days, as applicable, beginning on the date on which the report 
referred to in section 801(a)(1)(A) is received by Congress 
(excluding days either House of Congress is adjourned for more 
than 3 days during a session of Congress), then the rule 
described in that resolution shall be deemed not to be approved 
and such rule shall not take effect.
  (c)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (3)), a major rule may take effect 
for one 90-calendar-day period if the President makes a 
determination under paragraph (2) and submits written notice of 
such determination to the Congress.
  (2) Paragraph (1) applies to a determination made by the 
President by Executive order that the major rule should take 
effect because such rule is--
          (A) necessary because of an imminent threat to health 
        or safety or other emergency;
          (B) necessary for the enforcement of criminal laws;
          (C) necessary for national security; or
          (D) issued pursuant to any statute implementing an 
        international trade agreement.
  (3) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under section 
802.
  (d)(1) In addition to the opportunity for review otherwise 
provided under this chapter, in the case of any rule for which 
a report was submitted in accordance with subsection (a)(1)(A) 
during the period beginning on the date occurring--
          (A) in the case of the Senate, 60 session days; or
          (B) in the case of the House of Representatives, 60 
        legislative days,
before the date the Congress is scheduled to adjourn a session 
of Congress through the date on which the same or succeeding 
Congress first convenes its next session, sections 802 and 803 
shall apply to such rule in the succeeding session of Congress.
  (2)(A) In applying sections 802 and 803 for purposes of such 
additional review, a rule described under paragraph (1) shall 
be treated as though--
          (i) such rule were published in the Federal Register 
        on--
                  (I) in the case of the Senate, the 15th 
                session day; or
                  (II) in the case of the House of 
                Representatives, the 15th legislative day,
        after the succeeding session of Congress first 
        convenes; and
          (ii) a report on such rule were submitted to Congress 
        under subsection (a)(1) on such date.
  (B) Nothing in this paragraph shall be construed to affect 
the requirement under subsection (a)(1) that a report shall be 
submitted to Congress before a rule can take effect.
  (3) A rule described under paragraph (1) shall take effect as 
otherwise provided by law (including other subsections of this 
section).

Sec. 802. Congressional approval procedure for major rules

  (a)(1) For purposes of this section, the term ``joint 
resolution'' means only a joint resolution addressing a report 
classifying a rule as major pursuant to section 
801(a)(1)(A)(iii) that--
          (A) bears no preamble;
          (B) bears the following title (with blanks filled as 
        appropriate): ``Approving the rule submitted by ___ 
        relating to ___.'';
          (C) includes after its resolving clause only the 
        following (with blanks filled as appropriate): ``That 
        Congress approves the rule submitted by ___ relating to 
        ___.''; and
          (D) is introduced pursuant to paragraph (2).
  (2) After a House of Congress receives a report classifying a 
rule as major pursuant to section 801(a)(1)(A)(iii), the 
majority leader of that House (or his or her respective 
designee) shall introduce (by request, if appropriate) a joint 
resolution described in paragraph (1)--
          (A) in the case of the House of Representatives, 
        within 3 legislative days; and
          (B) in the case of the Senate, within 3 session days.
  (3) A joint resolution described in paragraph (1) shall not 
be subject to amendment at any stage of proceeding.
  (b) A joint resolution described in subsection (a) shall be 
referred in each House of Congress to the committees having 
jurisdiction over the provision of law under which the rule is 
issued.
  (c) In the Senate, if the committee or committees to which a 
joint resolution described in subsection (a) has been referred 
have not reported it at the end of 15 session days after its 
introduction, such committee or committees shall be 
automatically discharged from further consideration of the 
resolution and it shall be placed on the calendar. A vote on 
final passage of the resolution shall be taken on or before the 
close of the 15th session day after the resolution is reported 
by the committee or committees to which it was referred, or 
after such committee or committees have been discharged from 
further consideration of the resolution.
  (d)(1) In the Senate, when the committee or committees to 
which a joint resolution is referred have reported, or when a 
committee or committees are discharged (under subsection (c)) 
from further consideration of a joint resolution described in 
subsection (a), it is at any time thereafter in order (even 
though a previous motion to the same effect has been disagreed 
to) for a motion to proceed to the consideration of the joint 
resolution, and all points of order against the joint 
resolution (and against consideration of the joint resolution) 
are waived. The motion is not subject to amendment, or to a 
motion to postpone, or to a motion to proceed to the 
consideration of other business. A motion to reconsider the 
vote by which the motion is agreed to or disagreed to shall not 
be in order. If a motion to proceed to the consideration of the 
joint resolution is agreed to, the joint resolution shall 
remain the unfinished business of the Senate until disposed of.
  (2) In the Senate, debate on the joint resolution, and on all 
debatable motions and appeals in connection therewith, shall be 
limited to not more than 2 hours, which shall be divided 
equally between those favoring and those opposing the joint 
resolution. A motion to further limit debate is in order and 
not debatable. An amendment to, or a motion to postpone, or a 
motion to proceed to the consideration of other business, or a 
motion to recommit the joint resolution is not in order.
  (3) In the Senate, immediately following the conclusion of 
the debate on a joint resolution described in subsection (a), 
and a single quorum call at the conclusion of the debate if 
requested in accordance with the rules of the Senate, the vote 
on final passage of the joint resolution shall occur.
  (4) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure 
relating to a joint resolution described in subsection (a) 
shall be decided without debate.
  (e) In the House of Representatives, if any committee to 
which a joint resolution described in subsection (a) has been 
referred has not reported it to the House at the end of 15 
legislative days after its introduction, such committee shall 
be discharged from further consideration of the joint 
resolution, and it shall be placed on the appropriate calendar. 
On the second and fourth Thursdays of each month it shall be in 
order at any time for the Speaker to recognize a Member who 
favors passage of a joint resolution that has appeared on the 
calendar for at least 5 legislative days to call up that joint 
resolution for immediate consideration in the House without 
intervention of any point of order. When so called up a joint 
resolution shall be considered as read and shall be debatable 
for 1 hour equally divided and controlled by the proponent and 
an opponent, and the previous question shall be considered as 
ordered to its passage without intervening motion. It shall not 
be in order to reconsider the vote on passage. If a vote on 
final passage of the joint resolution has not been taken by the 
third Thursday on which the Speaker may recognize a Member 
under this subsection, such vote shall be taken on that day.
  (f)(1) If, before passing a joint resolution described in 
subsection (a), one House receives from the other a joint 
resolution having the same text, then--
          (A) the joint resolution of the other House shall not 
        be referred to a committee; and
          (B) the procedure in the receiving House shall be the 
        same as if no joint resolution had been received from 
        the other House until the vote on passage, when the 
        joint resolution received from the other House shall 
        supplant the joint resolution of the receiving House.
  (2) This subsection shall not apply to the House of 
Representatives if the joint resolution received from the 
Senate is a revenue measure.
  (g) If either House has not taken a vote on final passage of 
the joint resolution by the last day of the period described in 
section 801(b)(2), then such vote shall be taken on that day.
  (h) This section and section 803 are enacted by Congress--
          (1) as an exercise of the rulemaking power of the 
        Senate and House of Representatives, respectively, and 
        as such is deemed to be part of the rules of each 
        House, respectively, but applicable only with respect 
        to the procedure to be followed in that House in the 
        case of a joint resolution described in subsection (a) 
        and superseding other rules only where explicitly so; 
        and
          (2) with full recognition of the Constitutional right 
        of either House to change the rules (so far as they 
        relate to the procedure of that House) at any time, in 
        the same manner and to the same extent as in the case 
        of any other rule of that House.

Sec. 803. Congressional disapproval procedure for nonmajor rules

  (a) For purposes of this section, the term ``joint 
resolution'' means only a joint resolution introduced in the 
period beginning on the date on which the report referred to in 
section 801(a)(1)(A) is received by Congress and ending 60 days 
thereafter (excluding days either House of Congress is 
adjourned for more than 3 days during a session of Congress), 
the matter after the resolving clause of which is as follows: 
``That Congress disapproves the nonmajor rule submitted by the 
___ relating to ___, and such rule shall have no force or 
effect.'' (The blank spaces being appropriately filled in).
  (b) A joint resolution described in subsection (a) shall be 
referred to the committees in each House of Congress with 
jurisdiction.
  (c) In the Senate, if the committee to which is referred a 
joint resolution described in subsection (a) has not reported 
such joint resolution (or an identical joint resolution) at the 
end of 15 session days after the date of introduction of the 
joint resolution, such committee may be discharged from further 
consideration of such joint resolution upon a petition 
supported in writing by 30 Members of the Senate, and such 
joint resolution shall be placed on the calendar.
  (d)(1) In the Senate, when the committee to which a joint 
resolution is referred has reported, or when a committee is 
discharged (under subsection (c)) from further consideration of 
a joint resolution described in subsection (a), it is at any 
time thereafter in order (even though a previous motion to the 
same effect has been disagreed to) for a motion to proceed to 
the consideration of the joint resolution, and all points of 
order against the joint resolution (and against consideration 
of the joint resolution) are waived. The motion is not subject 
to amendment, or to a motion to postpone, or to a motion to 
proceed to the consideration of other business. A motion to 
reconsider the vote by which the motion is agreed to or 
disagreed to shall not be in order. If a motion to proceed to 
the consideration of the joint resolution is agreed to, the 
joint resolution shall remain the unfinished business of the 
Senate until disposed of.
  (2) In the Senate, debate on the joint resolution, and on all 
debatable motions and appeals in connection therewith, shall be 
limited to not more than 10 hours, which shall be divided 
equally between those favoring and those opposing the joint 
resolution. A motion to further limit debate is in order and 
not debatable. An amendment to, or a motion to postpone, or a 
motion to proceed to the consideration of other business, or a 
motion to recommit the joint resolution is not in order.
  (3) In the Senate, immediately following the conclusion of 
the debate on a joint resolution described in subsection (a), 
and a single quorum call at the conclusion of the debate if 
requested in accordance with the rules of the Senate, the vote 
on final passage of the joint resolution shall occur.
  (4) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure 
relating to a joint resolution described in subsection (a) 
shall be decided without debate.
  (e) In the Senate, the procedure specified in subsection (c) 
or (d) shall not apply to the consideration of a joint 
resolution respecting a nonmajor rule--
          (1) after the expiration of the 60 session days 
        beginning with the applicable submission or publication 
        date; or
          (2) if the report under section 801(a)(1)(A) was 
        submitted during the period referred to in section 
        801(d)(1), after the expiration of the 60 session days 
        beginning on the 15th session day after the succeeding 
        session of Congress first convenes.
  (f) If, before the passage by one House of a joint resolution 
of that House described in subsection (a), that House receives 
from the other House a joint resolution described in subsection 
(a), then the following procedures shall apply:
          (1) The joint resolution of the other House shall not 
        be referred to a committee.
          (2) With respect to a joint resolution described in 
        subsection (a) of the House receiving the joint 
        resolution--
                  (A) the procedure in that House shall be the 
                same as if no joint resolution had been 
                received from the other House; but
                  (B) the vote on final passage shall be on the 
                joint resolution of the other House.

Sec. 804. Definitions

  For purposes of this chapter:
          (1) The term ``Bureau'' means the Bureau of Consumer 
        Financial Protection.
          (2) The term ``major rule'' means any rule, including 
        an interim final rule, that the Administrator of the 
        Office of Information and Regulatory Affairs of the 
        Office of Management and Budget finds has resulted in 
        or is likely to result in--
                  (A) an annual cost on the economy of 
                $100,000,000 or more, adjusted annually for 
                inflation;
                  (B) a major increase in costs or prices for 
                consumers, individual industries, Federal, 
                State, or local government agencies, or 
                geographic regions; or
                  (C) significant adverse effects on 
                competition, employment, investment, 
                productivity, innovation, or on the ability of 
                United States-based enterprises to compete with 
                foreign-based enterprises in domestic and 
                export markets.
          (3) The term ``nonmajor rule'' means any rule that is 
        not a major rule.
          (4) The term ``rule'' has the meaning given such term 
        in section 551, except that such term does not 
        include--
                  (A) any rule of particular applicability, 
                including a rule that approves or prescribes 
                for the future rates, wages, prices, services, 
                or allowances therefore, corporate or financial 
                structures, reorganizations, mergers, or 
                acquisitions thereof, or accounting practices 
                or disclosures bearing on any of the foregoing;
                  (B) any rule relating to Bureau management or 
                personnel; or
                  (C) any rule of Bureau organization, 
                procedure, or practice that does not 
                substantially affect the rights or obligations 
                of non-Bureau parties.
          (5) The term ``submission date or publication date'', 
        except as otherwise provided in this chapter, means--
                  (A) in the case of a major rule, the date on 
                which the Congress receives the report 
                submitted under section 801(a)(1); and
                  (B) in the case of a nonmajor rule, the later 
                of--
                          (i) the date on which the Congress 
                        receives the report submitted under 
                        section 801(a)(1); and
                          (ii) the date on which the nonmajor 
                        rule is published in the Federal 
                        Register, if so published.

Sec. 805. Judicial review

  (a) No determination, finding, action, or omission under this 
chapter shall be subject to judicial review.
  (b) Notwithstanding subsection (a), a court may determine 
whether the Bureau has completed the necessary requirements 
under this chapter for a rule to take effect.
  (c) The enactment of a joint resolution of approval under 
section 802 shall not be interpreted to serve as a grant or 
modification of statutory authority by Congress for the 
promulgation of a rule, shall not extinguish or affect any 
claim, whether substantive or procedural, against any alleged 
defect in a rule, and shall not form part of the record before 
the court in any judicial proceeding concerning a rule except 
for purposes of determining whether or not the rule is in 
effect.

Sec. 806. Exemption for monetary policy

  Nothing in this chapter shall apply to rules that concern 
monetary policy proposed or implemented by the Board of 
Governors of the Federal Reserve System or the Federal Open 
Market Committee.

Sec. 807. Effective date of certain rules

  Notwithstanding section 801--
          (1) any rule that establishes, modifies, opens, 
        closes, or conducts a regulatory program for a 
        commercial, recreational, or subsistence activity 
        related to hunting, fishing, or camping; or
          (2) any rule other than a major rule which the Bureau 
        for good cause finds (and incorporates the finding and 
        a brief statement of reasons therefore in the rule 
        issued) that notice and public procedure thereon are 
        impracticable, unnecessary, or contrary to the public 
        interest,
shall take effect at such time as the Bureau determines.

Sec. 808. Regulatory cut-go requirement

  In making any new rule, the Bureau shall identify a rule or 
rules that may be amended or repealed to completely offset any 
annual costs of the new rule to the United States economy. 
Before the new rule may take effect, the Bureau shall make each 
such repeal or amendment. In making such an amendment or 
repeal, the Bureau shall comply with the requirements of 
subchapter II of chapter 5, but the Bureau may consolidate 
proceedings under subchapter with proceedings on the new rule.

Sec. 809. Review of rules currently in effect

  (a) Annual Review.--Beginning on the date that is 6 months 
after the date of enactment of this section and annually 
thereafter for the 9 years following, the Bureau shall 
designate not less than 10 percent of eligible rules made by 
the Bureau for review, and shall submit a report including each 
such eligible rule in the same manner as a report under section 
801(a)(1). Section 801, section 802, and section 803 shall 
apply to each such rule, subject to subsection (c) of this 
section. No eligible rule previously designated may be 
designated again.
  (b) Sunset for Eligible Rules Not Extended.--Beginning after 
the date that is 10 years after the date of enactment of this 
section, if Congress has not enacted a joint resolution of 
approval for that eligible rule, that eligible rule shall not 
continue in effect.
  (c) Consolidation; Severability.--In applying sections 801, 
802, and 803 to eligible rules under this section, the 
following shall apply:
          (1) The words ``take effect'' shall be read as 
        ``continue in effect''.
          (2) Except as provided in paragraph (3), a single 
        joint resolution of approval shall apply to all 
        eligible rules in a report designated for a year, and 
        the matter after the resolving clause of that joint 
        resolution is as follows: ``That Congress approves the 
        rules submitted by the __ for the year __.'' (The blank 
        spaces being appropriately filled in).
          (3) It shall be in order to consider any amendment 
        that provides for specific conditions on which the 
        approval of a particular eligible rule included in the 
        joint resolution is contingent.
          (4) A member of either House may move that a separate 
        joint resolution be required for a specified rule.
  (d) Definition.--In this section, the term ``eligible rule'' 
means a rule that is in effect as of the date of enactment of 
this section.

           *       *       *       *       *       *       *

                              ----------                              

       BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985

           *       *       *       *       *       *       *
  PART C--EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM 
DEFICIT AMOUNT

           *       *       *       *       *       *       *

SEC. 257. THE BASELINE.

  (a) In General.--For any budget year, the baseline refers to 
a projection of current-year levels of new budget authority, 
outlays, revenues, and the surplus or deficit into the budget 
year and the outyears based on laws enacted through the 
applicable date.
  (b) Direct Spending and Receipts.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions:
          (1) In general.--Laws providing or creating direct 
        spending and receipts are assumed to operate in the 
        manner specified in those laws for each such year and 
        funding for entitlement authority is assumed to be 
        adequate to make all payments required by those laws.
          (2) Exceptions.--(A)(i) No program established by a 
        law enacted on or before the date of enactment of the 
        Balanced Budget Act of 1997 with estimated current year 
        outlays greater than $50,000,000 shall be assumed to 
        expire in the budget year or the outyears. The scoring 
        of new programs with estimated outlays greater than 
        $50,000,000 a year shall be based on scoring by the 
        Committees on Budget or OMB, as applicable. OMB, CBO, 
        and the Budget Committees shall consult on the scoring 
        of such programs where there are differences between 
        CBO and OMB.
          (ii) On the expiration of the suspension of a 
        provision of law that is suspended under section 171 of 
        Public Law 104-127 and that authorizes a program with 
        estimated fiscal year outlays that are greater than 
        $50,000,000, for purposes of clause (i), the program 
        shall be assumed to continue to operate in the same 
        manner as the program operated immediately before the 
        expiration of the suspension.
          (B) The increase for veterans' compensation for a 
        fiscal year is assumed to be the same as that required 
        by law for veterans' pensions unless otherwise provided 
        by law enacted in that session.
          (C) Excise taxes dedicated to a trust fund, if 
        expiring, are assumed to be extended at current rates.
          (D) If any law expires before the budget year or any 
        outyear, then any program with estimated current year 
        outlays greater than $50,000,000 that operates under 
        that law shall be assumed to continue to operate under 
        that law as in effect immediately before its 
        expiration.
          (E) Budgetary effects of rules subject to section 802 
        of title 5, united states code.--Any rules subject to 
        the congressional approval procedure set forth in 
        section 802 of chapter 8 of title 5, United States 
        Code, affecting budget authority, outlays, or receipts 
        shall be assumed to be effective unless it is not 
        approved in accordance with such section.
          (3) Hospital insurance trust fund.--Notwithstanding 
        any other provision of law, the receipts and 
        disbursements of the Hospital Insurance Trust Fund 
        shall be included in all calculations required by this 
        Act.
  (c) Discretionary Appropriations.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions regarding all amounts other than those 
covered by subsection (b):
          (1) Inflation of current-year appropriations.--
        Budgetary resources other than unobligated balances 
        shall be at the level provided for the budget year in 
        full-year appropriation Acts. If for any account a 
        full-year appropriation has not yet been enacted, 
        budgetary resources other than unobligated balances 
        shall be at the level available in the current year, 
        adjusted sequentially and cumulatively for expiring 
        housing contracts as specified in paragraph (2), for 
        social insurance administrative expenses as specified 
        in paragraph (3), to offset pay absorption and for pay 
        annualization as specified in paragraph (4), for 
        inflation as specified in paragraph (5), and to account 
        for changes required by law in the level of agency 
        payments for personnel benefits other than pay.
          (2) Expiring housing contracts.--New budget authority 
        to renew expiring multiyear subsidized housing 
        contracts shall be adjusted to reflect the difference 
        in the number of such contracts that are scheduled to 
        expire in that fiscal year and the number expiring in 
        the current year, with the per-contract renewal cost 
        equal to the average current-year cost of renewal 
        contracts.
          (3) Social insurance administrative expenses.--
        Budgetary resources for the administrative expenses of 
        the following trust funds shall be adjusted by the 
        percentage change in the beneficiary population from 
        the current year to that fiscal year: the Federal 
        Hospital Insurance Trust Fund, the Supplementary 
        Medical Insurance Trust Fund, the Unemployment Trust 
        Fund, and the railroad retirement account.
          (4) Pay annualization; offset to pay absorption.--
        Current-year new budget authority for Federal employees 
        shall be adjusted to reflect the full 12-month costs 
        (without absorption) of any pay adjustment that 
        occurred in that fiscal year.
          (5) Inflators.--The inflator used in paragraph (1) to 
        adjust budgetary resources relating to personnel shall 
        be the percent by which the average of the Bureau of 
        Labor Statistics Employment Cost Index (wages and 
        salaries, private industry workers) for that fiscal 
        year differs from such index for the current year. The 
        inflator used in paragraph (1) to adjust all other 
        budgetary resources shall be the percent by which the 
        average of the estimated gross domestic product chain-
        type price index for that fiscal year differs from the 
        average of such estimated index for the current year.
          (6) Current-year appropriations.--If, for any 
        account, a continuing appropriation is in effect for 
        less than the entire current year, then the current-
        year amount shall be assumed to equal the amount that 
        would be available if that continuing appropriation 
        covered the entire fiscal year. If law permits the 
        transfer of budget authority among budget accounts in 
        the current year, the current-year level for an account 
        shall reflect transfers accomplished by the submission 
        of, or assumed for the current year in, the President's 
        original budget for the budget year.
  (d) Up-to-Date Concepts.--In deriving the baseline for any 
budget year or outyear, current-year amounts shall be 
calculated using the concepts and definitions that are required 
for that budget year.
  (e) Asset Sales.--Amounts realized from the sale of an asset 
shall not be included in estimates under section 251, 252, or 
253 if that sale would result in a financial cost to the 
Federal Government as determined pursuant to scorekeeping 
guidelines.

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                              ----------                              

                      TITLE 18, UNITED STATES CODE

PART I--CRIMES

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      CHAPTER 121--STORED WIRE AND ELECTRONIC COMMUNICATIONS AND 
TRANSACTIONAL RECORDS ACCESS

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Sec. 2702. Voluntary disclosure of customer communications or records

  (a) Prohibitions.--Except as provided in subsection (b) or 
(c)--
          (1) a person or entity providing an electronic 
        communication service to the public shall not knowingly 
        [divulge] disclose to any person or entity the contents 
        of a communication [while in electronic storage by that 
        service] that is in electronic storage with or 
        otherwise stored, held, or maintained by that service; 
        and
          (2) a person or entity providing remote computing 
        service [to the public] shall not knowingly [divulge] 
        disclose to any person or entity the contents of any 
        communication [which is carried or maintained on that 
        service] that is stored, held, or maintained by that 
        service--
                  (A) on behalf of, and received by means of 
                electronic transmission from (or created by 
                means of computer processing of communications 
                received by means of electronic transmission 
                from), a subscriber or customer of such 
                service;
                  (B) solely for the purpose of providing 
                storage or computer processing services to such 
                subscriber or customer, if the provider is not 
                authorized to access the contents of any such 
                communications for purposes of providing any 
                services other than storage or computer 
                processing; and
          (3) [a provider of] a person or entity providing 
        remote computing service or electronic communication 
        service to the public shall not knowingly [divulge] 
        disclose a record or other information pertaining to a 
        subscriber to or customer of such service (not 
        including the contents of communications covered by 
        paragraph (1) or (2)) to any governmental entity.
  (b) Exceptions for disclosure of communications.--A provider 
described in subsection (a) may [divulge] disclose the contents 
of a wire or electronic communication--
          [(1) to an addressee or intended recipient of such 
        communication or an agent of such addressee or intended 
        recipient;]
          (1) to an originator, addressee, or intended 
        recipient of such communication, to the subscriber or 
        customer on whose behalf the provider stores, holds, or 
        maintains such communication, or to an agent of such 
        addressee, intended recipient, subscriber, or customer;
          (2) as otherwise authorized in section 2517, 
        2511(2)(a), or 2703 of this title;
          [(3) with the lawful consent of the originator or an 
        addressee or intended recipient of such communication, 
        or the subscriber in the case of remote computing 
        service;]
          (3) with the lawful consent of the originator, 
        addressee, or intended recipient of such communication, 
        or of the subscriber or customer on whose behalf the 
        provider stores, holds, or maintains such 
        communication;
          (4) to a person employed or authorized or whose 
        facilities are used to forward such communication to 
        its destination;
          (5) as may be necessarily incident to the rendition 
        of the service or to the protection of the rights or 
        property of the provider of that service;
          (6) to the National Center for Missing and Exploited 
        Children, in connection with a report submitted thereto 
        under section 2258A;
          (7) to a law enforcement agency--
                  (A) if the contents--
                          (i) were inadvertently obtained by 
                        the service provider; and
                          (ii) appear to pertain to the 
                        commission of a crime;
                  [(B) Repealed. Pub. L. 108-21, title V, Sec. 
                508(b)(1)(A), Apr. 30, 2003, 117 Stat. 684]
          (8) to a governmental entity, if the provider, in 
        good faith, believes that an emergency involving danger 
        of death or serious physical injury to any person 
        requires disclosure without delay of communications 
        relating to the emergency; or
          (9) to a foreign government pursuant to an order from 
        a foreign government that is subject to an executive 
        agreement that the Attorney General has determined and 
        certified to Congress satisfies section 2523.
  (c) Exceptions for Disclosure of Customer Records.--A 
provider described in subsection (a) may [divulge] disclose a 
record or other information pertaining to a subscriber to or 
customer of such service (not including the contents of wire or 
electronic communications covered by subsection (a)(1) or 
(a)(2))--
          (1) as otherwise authorized in section 2703;
          [(2) with the lawful consent of the customer or 
        subscriber;]
          (2) with the lawful consent of the subscriber or 
        customer;
          (3) as may be necessarily incident to the rendition 
        of the service or to the protection of the rights or 
        property of the provider of that service;
          (4) to a governmental entity, if the provider, in 
        good faith, believes that an emergency involving danger 
        of death or serious physical injury to any person 
        requires disclosure without delay of information 
        relating to the emergency;
          (5) to the National Center for Missing and Exploited 
        Children, in connection with a report submitted thereto 
        under section 2258A;
          (6) to any person other than a governmental entity; 
        or
          (7) to a foreign government pursuant to an order from 
        a foreign government that is subject to an executive 
        agreement that the Attorney General has determined and 
        certified to Congress satisfies section 2523.
  (d) Reporting of Emergency Disclosures.--On an annual basis, 
the Attorney General shall submit to the Committee on the 
Judiciary of the House of Representatives and the Committee on 
the Judiciary of the Senate a report containing--
          (1) the number of accounts from which the Department 
        of Justice has received voluntary disclosures under 
        subsection (b)(8);
          (2) a summary of the basis for disclosure in those 
        instances where--
                  (A) voluntary disclosures under subsection 
                (b)(8) were made to the Department of Justice; 
                and
                  (B) the investigation pertaining to those 
                disclosures was closed without the filing of 
                criminal charges; and
          (3) the number of accounts from which the Department 
        of Justice has received voluntary disclosures under 
        subsection (c)(4).

Sec. 2703. Required disclosure of customer communications or records

  [(a) Contents of Wire or Electronic Communications in 
Electronic Storage.--A governmental entity may require the 
disclosure by a provider of electronic communication service of 
the contents of a wire or electronic communication, that is in 
electronic storage in an electronic communications system for 
one hundred and eighty days or less, only pursuant to a warrant 
issued using the procedures described in the Federal Rules of 
Criminal Procedure (or, in the case of a State court, issued 
using State warrant procedures) by a court of competent 
jurisdiction. A governmental entity may require the disclosure 
by a provider of electronic communications services of the 
contents of a wire or electronic communication that has been in 
electronic storage in an electronic communications system for 
more than one hundred and eighty days by the means available 
under subsection (b) of this section.
  [(b) Contents of Wire or Electronic Communications in a 
Remote Computing Service.--(1) A governmental entity may 
require a provider of remote computing service to disclose the 
contents of any wire or electronic communication to which this 
paragraph is made applicable by paragraph (2) of this 
subsection--
          [(A) without required notice to the subscriber or 
        customer, if the governmental entity obtains a warrant 
        issued using the procedures described in the Federal 
        Rules of Criminal Procedure (or, in the case of a State 
        court, issued using State warrant procedures) by a 
        court of competent jurisdiction; or
          [(B) with prior notice from the governmental entity 
        to the subscriber or customer if the governmental 
        entity--
                  [(i) uses an administrative subpoena 
                authorized by a Federal or State statute or a 
                Federal or State grand jury or trial subpoena; 
                or
                  [(ii) obtains a court order for such 
                disclosure under subsection (d) of this 
                section;
        except that delayed notice may be given pursuant to 
        section 2705 of this title.
  [(2) Paragraph (1) is applicable with respect to any wire or 
electronic communication that is held or maintained on that 
service--
          [(A) on behalf of, and received by means of 
        electronic transmission from (or created by means of 
        computer processing of communications received by means 
        of electronic transmission from), a subscriber or 
        customer of such remote computing service; and
          [(B) solely for the purpose of providing storage or 
        computer processing services to such subscriber or 
        customer, if the provider is not authorized to access 
        the contents of any such communications for purposes of 
        providing any services other than storage or computer 
        processing.
  [(c) Records Concerning Electronic Communication Service or 
Remote Computing Service.--(1) A governmental entity may 
require a provider of electronic communication service or 
remote computing service to disclose a record or other 
information pertaining to a subscriber to or customer of such 
service (not including the contents of communications) only 
when the governmental entity--
          [(A) obtains a warrant issued using the procedures 
        described in the Federal Rules of Criminal Procedure 
        (or, in the case of a State court, issued using State 
        warrant procedures) by a court of competent 
        jurisdiction;
          [(B) obtains a court order for such disclosure under 
        subsection (d) of this section;
          [(C) has the consent of the subscriber or customer to 
        such disclosure;
          [(D) submits a formal written request relevant to a 
        law enforcement investigation concerning telemarketing 
        fraud for the name, address, and place of business of a 
        subscriber or customer of such provider, which 
        subscriber or customer is engaged in telemarketing (as 
        such term is defined in section 2325 of this title); or
          [(E) seeks information under paragraph (2).
  [(2) A provider of electronic communication service or remote 
computing service shall disclose to a governmental entity the--
          [(A) name;
          [(B) address;
          [(C) local and long distance telephone connection 
        records, or records of session times and durations;
          [(D) length of service (including start date) and 
        types of service utilized;
          [(E) telephone or instrument number or other 
        subscriber number or identity, including any 
        temporarily assigned network address; and
          [(F) means and source of payment for such service 
        (including any credit card or bank account number),
of a subscriber to or customer of such service when the 
governmental entity uses an administrative subpoena authorized 
by a Federal or State statute or a Federal or State grand jury 
or trial subpoena or any means available under paragraph (1).
  [(3) A governmental entity receiving records or information 
under this subsection is not required to provide notice to a 
subscriber or customer.]
  (a) Contents of Wire or Electronic Communications in 
Electronic Storage.--Except as provided in subsections (i) and 
(j), a governmental entity may require the disclosure by a 
provider of electronic communication service of the contents of 
a wire or electronic communication that is in electronic 
storage with or otherwise stored, held, or maintained by that 
service only if the governmental entity obtains a warrant 
issued using the procedures described in the Federal Rules of 
Criminal Procedure (or, in the case of a State court, issued 
using State warrant procedures) that--
          (1) is issued by a court of competent jurisdiction; 
        and
          (2) may indicate the date by which the provider must 
        make the disclosure to the governmental entity.
In the absence of a date on the warrant indicating the date by 
which the provider must make disclosure to the governmental 
entity, the provider shall promptly respond to the warrant.
  (b) Contents of Wire or Electronic Communications in a Remote 
Computing Service.--
          (1) In general.--Except as provided in subsections 
        (i) and (j), a governmental entity may require the 
        disclosure by a provider of remote computing service of 
        the contents of a wire or electronic communication that 
        is stored, held, or maintained by that service only if 
        the governmental entity obtains a warrant issued using 
        the procedures described in the Federal Rules of 
        Criminal Procedure (or, in the case of a State court, 
        issued using State warrant procedures) that--
                  (A) is issued by a court of competent 
                jurisdiction; and
                  (B) may indicate the date by which the 
                provider must make the disclosure to the 
                governmental entity.
        In the absence of a date on the warrant indicating the 
        date by which the provider must make disclosure to the 
        governmental entity, the provider shall promptly 
        respond to the warrant.
          (2) Applicability.--Paragraph (1) is applicable with 
        respect to any wire or electronic communication that is 
        stored, held, or maintained by the provider--
                  (A) on behalf of, and received by means of 
                electronic transmission from (or created by 
                means of computer processing of communication 
                received by means of electronic transmission 
                from), a subscriber or customer of such remote 
                computing service; and
                  (B) solely for the purpose of providing 
                storage or computer processing services to such 
                subscriber or customer, if the provider is not 
                authorized to access the contents of any such 
                communications for purposes of providing any 
                services other than storage or computer 
                processing.
  (c) Records Concerning Electronic Communication Service or 
Remote Computing Service.--
          (1) In general.--Except as provided in subsections 
        (i) and (j), a governmental entity may require the 
        disclosure by a provider of electronic communication 
        service or remote computing service of a record or 
        other information pertaining to a subscriber to or 
        customer of such service (not including the contents of 
        wire or electronic communications), only--
                  (A) if a governmental entity obtains a 
                warrant issued using the procedures described 
                in the Federal Rules of Criminal Procedure (or, 
                in the case of a State court, issued using 
                State warrant procedures) that--
                          (i) is issued by a court of competent 
                        jurisdiction directing the disclosure; 
                        and
                          (ii) may indicate the date by which 
                        the provider must make the disclosure 
                        to the governmental entity;
                  (B) if a governmental entity obtains a court 
                order directing the disclosure under subsection 
                (d);
                  (C) with the lawful consent of the subscriber 
                or customer; or
                  (D) as otherwise authorized in paragraph (2).
          (2) Subscriber or customer information.--A provider 
        of electronic communication service or remote computing 
        service shall, in response to an administrative 
        subpoena authorized by Federal or State statute, a 
        grand jury, trial, or civil discovery subpoena, or any 
        means available under paragraph (1), disclose to a 
        governmental entity the--
                  (A) name;
                  (B) address;
                  (C) local and long distance telephone 
                connection records, or records of session times 
                and durations;
                  (D) length of service (including start date) 
                and types of service used;
                  (E) telephone or instrument number or other 
                subscriber or customer number or identity, 
                including any temporarily assigned network 
                address; and
                  (F) means and source of payment for such 
                service (including any credit card or bank 
                account number),
        of a subscriber or customer of such service.
          (3) Notice not required.--A governmental entity that 
        receives records or information under this subsection 
        is not required to provide notice to a subscriber or 
        customer.
  (d) Requirements for Court Order.--A court order for 
disclosure under subsection [(b) or] (c) may be issued by any 
court that is a court of competent jurisdiction and shall issue 
only if the governmental entity offers specific and articulable 
facts showing that there are reasonable grounds to believe that 
[the contents of a wire or electronic communication, or] the 
records or other information [sought,] sought are relevant and 
material to an ongoing criminal investigation. In the case of a 
State governmental authority, such a court order shall not 
issue if prohibited by the law of such State. A court issuing 
an order pursuant to this [section] subsection, on a motion 
made promptly by the service provider, may quash or modify such 
order, if the information or records requested are unusually 
voluminous in nature or compliance with such order otherwise 
would cause an undue burden on such provider.
  (e) No Cause of Action Against a Provider Disclosing 
Information Under This Chapter.--No cause of action shall lie 
in any court against any provider of wire or electronic 
communication service, its officers, employees, agents, or 
other specified persons for providing information, facilities, 
or assistance in accordance with the terms of a court order, 
warrant, subpoena, statutory authorization, or certification 
under this chapter.
  (f) Requirement To Preserve Evidence.--
          (1) In general.--A provider of wire or electronic 
        communication services or a remote computing service, 
        upon the request of a governmental entity, shall take 
        all necessary steps to preserve records and other 
        evidence in its possession pending the issuance of a 
        court order or other process.
          (2) Period of retention.--Records referred to in 
        paragraph (1) shall be retained for a period of 90 
        days, which shall be extended for an additional 90-day 
        period upon a renewed request by the governmental 
        entity.
  (g) Presence of Officer Not Required.--Notwithstanding 
section 3105 of this title, the presence of an officer shall 
not be required for service or execution of a search warrant 
issued in accordance with this chapter requiring disclosure by 
a provider of electronic communications service or remote 
computing service of the contents of communications or records 
or other information pertaining to a subscriber to or customer 
of such service.
  (h) Comity Analysis and Disclosure of Information Regarding 
Legal Process Seeking Contents of Wire or Electronic 
Communication.--
          (1) Definitions.--In this subsection--
                  (A) the term ``qualifying foreign 
                government'' means a foreign government--
                          (i) with which the United States has 
                        an executive agreement that has entered 
                        into force under section 2523; and
                          (ii) the laws of which provide to 
                        electronic communication service 
                        providers and remote computing service 
                        providers substantive and procedural 
                        opportunities similar to those provided 
                        under paragraphs (2) and (5); and
                  (B) the term ``United States person'' has the 
                meaning given the term in section 2523.
          (2) Motions to quash or modify.--(A) A provider of 
        electronic communication service to the public or 
        remote computing service, including a foreign 
        electronic communication service or remote computing 
        service, that is being required to disclose pursuant to 
        legal process issued under this section the contents of 
        a wire or electronic communication of a subscriber or 
        customer, may file a motion to modify or quash the 
        legal process where the provider reasonably believes--
                  (i) that the customer or subscriber is not a 
                United States person and does not reside in the 
                United States; and
                  (ii) that the required disclosure would 
                create a material risk that the provider would 
                violate the laws of a qualifying foreign 
                government. Such a motion shall be filed not 
                later than 14 days after the date on which the 
                provider was served with the legal process, 
                absent agreement with the government or 
                permission from the court to extend the 
                deadline based on an application made within 
                the 14 days. The right to move to quash is 
                without prejudice to any other grounds to move 
                to quash or defenses thereto, but it shall be 
                the sole basis for moving to quash on the 
                grounds of a conflict of law related to a 
                qualifying foreign government.
          (B) Upon receipt of a motion filed pursuant to 
        subparagraph (A), the court shall afford the 
        governmental entity that applied for or issued the 
        legal process under this section the opportunity to 
        respond. The court may modify or quash the legal 
        process, as appropriate, only if the court finds that--
                  (i) the required disclosure would cause the 
                provider to violate the laws of a qualifying 
                foreign government;
                  (ii) based on the totality of the 
                circumstances, the interests of justice dictate 
                that the legal process should be modified or 
                quashed; and
                  (iii) the customer or subscriber is not a 
                United States person and does not reside in the 
                United States.
          (3) Comity analysis.--For purposes of making a 
        determination under paragraph (2)(B)(ii), the court 
        shall take into account, as appropriate--
                  (A) the interests of the United States, 
                including the investigative interests of the 
                governmental entity seeking to require the 
                disclosure;
                  (B) the interests of the qualifying foreign 
                government in preventing any prohibited 
                disclosure;
                  (C) the likelihood, extent, and nature of 
                penalties to the provider or any employees of 
                the provider as a result of inconsistent legal 
                requirements imposed on the provider;
                  (D) the location and nationality of the 
                subscriber or customer whose communications are 
                being sought, if known, and the nature and 
                extent of the subscriber or customer's 
                connection to the United States, or if the 
                legal process has been sought on behalf of a 
                foreign authority pursuant to section 3512, the 
                nature and extent of the subscriber or 
                customer's connection to the foreign 
                authority's country;
                  (E) the nature and extent of the provider's 
                ties to and presence in the United States;
                  (F) the importance to the investigation of 
                the information required to be disclosed;
                  (G) the likelihood of timely and effective 
                access to the information required to be 
                disclosed through means that would cause less 
                serious negative consequences; and
                  (H) if the legal process has been sought on 
                behalf of a foreign authority pursuant to 
                section 3512, the investigative interests of 
                the foreign authority making the request for 
                assistance.
          (4) Disclosure obligations during pendency of 
        challenge.--A service provider shall preserve, but not 
        be obligated to produce, information sought during the 
        pendency of a motion brought under this subsection, 
        unless the court finds that immediate production is 
        necessary to prevent an adverse result identified in 
        section 2705(a)(2).
          (5) Disclosure to qualifying foreign government.--(A) 
        It shall not constitute a violation of a protective 
        order issued under section 2705 for a provider of 
        electronic communication service to the public or 
        remote computing service to disclose to the entity 
        within a qualifying foreign government, designated in 
        an executive agreement under section 2523, the fact of 
        the existence of legal process issued under this 
        section seeking the contents of a wire or electronic 
        communication of a customer or subscriber who is a 
        national or resident of the qualifying foreign 
        government.
          (B) Nothing in this paragraph shall be construed to 
        modify or otherwise affect any other authority to make 
        a motion to modify or quash a protective order issued 
        under section 2705.
  (h) Notice.--Except as provided in section 2705, a provider 
of electronic communication service or remote computing service 
may notify a subscriber or customer of a receipt of a warrant, 
court order, subpoena, or request under subsection (a), (b), 
(c), or (d) of this section.
  (i) Rule of Construction Related to Legal Process.--Nothing 
in this section or in section 2702 shall limit the authority of 
a governmental entity to use an administrative subpoena 
authorized by Federal or State statute, a grand jury, trial, or 
civil discovery subpoena, or a warrant issued using the 
procedures described in the Federal Rules of Criminal Procedure 
(or, in the case of a State court, issued using State warrant 
procedures) by a court of competent jurisdiction to--
          (1) require an originator, addressee, or intended 
        recipient of a wire or electronic communication to 
        disclose a wire or electronic communication (including 
        the contents of that communication) to the governmental 
        entity;
          (2) require a person or entity that provides an 
        electronic communication service to the officers, 
        directors, employees, or agents of the person or entity 
        (for the purpose of carrying out their duties) to 
        disclose a wire or electronic communication (including 
        the contents of that communication) to or from the 
        person or entity itself or to or from an officer, 
        director, employee, or agent of the entity to a 
        governmental entity, if the wire or electronic 
        communication is stored, held, or maintained on an 
        electronic communications system owned, operated, or 
        controlled by the person or entity; or
          (3) require a person or entity that provides a remote 
        computing service or electronic communication service 
        to disclose a wire or electronic communication 
        (including the contents of that communication) that 
        advertises or promotes a product or service and that 
        has been made readily accessible to the general public.
  (j) Rule of Construction Related to Congressional 
Subpoenas.--Nothing in this section or in section 2702 shall 
limit the power of inquiry vested in the Congress by article I 
of the Constitution of the United States, including the 
authority to compel the production of a wire or electronic 
communication (including the contents of a wire or electronic 
communication) that is stored, held, or maintained by a person 
or entity that provides remote computing service or electronic 
communication service.

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[Sec. 2705. Delayed notice

  [(a) Delay of Notification.--(1) A governmental entity acting 
under section 2703(b) of this title may--
          [(A) where a court order is sought, include in the 
        application a request, which the court shall grant, for 
        an order delaying the notification required under 
        section 2703(b) of this title for a period not to 
        exceed ninety days, if the court determines that there 
        is reason to believe that notification of the existence 
        of the court order may have an adverse result described 
        in paragraph (2) of this subsection; or
          [(B) where an administrative subpoena authorized by a 
        Federal or State statute or a Federal or State grand 
        jury subpoena is obtained, delay the notification 
        required under section 2703(b) of this title for a 
        period not to exceed ninety days upon the execution of 
        a written certification of a supervisory official that 
        there is reason to believe that notification of the 
        existence of the subpoena may have an adverse result 
        described in paragraph (2) of this subsection.
  [(2) An adverse result for the purposes of paragraph (1) of 
this subsection is--
          [(A) endangering the life or physical safety of an 
        individual;
          [(B) flight from prosecution;
          [(C) destruction of or tampering with evidence;
          [(D) intimidation of potential witnesses; or
          [(E) otherwise seriously jeopardizing an 
        investigation or unduly delaying a trial.
  [(3) The governmental entity shall maintain a true copy of 
certification under paragraph (1)(B).
  [(4) Extensions of the delay of notification provided in 
section 2703 of up to ninety days each may be granted by the 
court upon application, or by certification by a governmental 
entity, but only in accordance with subsection (b) of this 
section.
  [(5) Upon expiration of the period of delay of notification 
under paragraph (1) or (4) of this subsection, the governmental 
entity shall serve upon, or deliver by registered or first-
class mail to, the customer or subscriber a copy of the process 
or request together with notice that--
          [(A) states with reasonable specificity the nature of 
        the law enforcement inquiry; and
          [(B) informs such customer or subscriber--
                  [(i) that information maintained for such 
                customer or subscriber by the service provider 
                named in such process or request was supplied 
                to or requested by that governmental authority 
                and the date on which the supplying or request 
                took place;
                  [(ii) that notification of such customer or 
                subscriber was delayed;
                  [(iii) what governmental entity or court made 
                the certification or determination pursuant to 
                which that delay was made; and
                  [(iv) which provision of this chapter allowed 
                such delay.
  [(6) As used in this subsection, the term ``supervisory 
official'' means the investigative agent in charge or assistant 
investigative agent in charge or an equivalent of an 
investigating agency's headquarters or regional office, or the 
chief prosecuting attorney or the first assistant prosecuting 
attorney or an equivalent of a prosecuting attorney's 
headquarters or regional office.
  [(b) Preclusion of Notice to Subject of Governmental 
Access.--A governmental entity acting under section 2703, when 
it is not required to notify the subscriber or customer under 
section 2703(b)(1), or to the extent that it may delay such 
notice pursuant to subsection (a) of this section, may apply to 
a court for an order commanding a provider of electronic 
communications service or remote computing service to whom a 
warrant, subpoena, or court order is directed, for such period 
as the court deems appropriate, not to notify any other person 
of the existence of the warrant, subpoena, or court order. The 
court shall enter such an order if it determines that there is 
reason to believe that notification of the existence of the 
warrant, subpoena, or court order will result in--
          [(1) endangering the life or physical safety of an 
        individual;
          [(2) flight from prosecution;
          [(3) destruction of or tampering with evidence;
          [(4) intimidation of potential witnesses; or
          [(5) otherwise seriously jeopardizing an 
        investigation or unduly delaying a trial.]

Sec. 2705. Delayed notice

  (a) In General.--A governmental entity acting under section 
2703 may apply to a court for an order directing a provider of 
electronic communication service or remote computing service to 
which a warrant, order, subpoena, or other directive under 
section 2703 is directed not to notify any other person of the 
existence of the warrant, order, subpoena, or other directive.
  (b) Determination.--A court shall grant a request for an 
order made under subsection (a) for delayed notification of up 
to 180 days if the court determines that there is reason to 
believe that notification of the existence of the warrant, 
order, subpoena, or other directive will likely result in--
          (1) endangering the life or physical safety of an 
        individual;
          (2) flight from prosecution;
          (3) destruction of or tampering with evidence;
          (4) intimidation of potential witnesses; or
          (5) otherwise seriously jeopardizing an investigation 
        or unduly delaying a trial.
  (c) Extension.--Upon request by a governmental entity, a 
court may grant one or more extensions, for periods of up to 
180 days each, of an order granted in accordance with 
subsection (b).

           *       *       *       *       *       *       *

                            DISSENTING VIEWS

    The Bipartisan Budget Act enacted early this year provided 
relief from unworkable discretionary spending caps. The 
agreement was supposed to provide the country with stability 
following a year of shutdowns, last-minute veto threats, and 
general uncertainty in government. That stability lasted long 
enough for Congress to pass a bipartisan Omnibus appropriations 
bill for Fiscal Year (FY) 2018, and then Republican chaos 
reigned again. The President threatened to veto the bill, 
unhappy with Congress' large investments in programs to help 
low- and middle-income Americans and rejection of his campaign-
promised border wall.
    Even after the President signed the bill, the 
Administration and Republican leadership in Congress who voted 
for the Bipartisan Budget Act and the Omnibus bill have 
continued to attempt to undo those bipartisan agreements. The 
majority passed H.R. 3, a rescission bill to undo funding and 
mollify an angry President. We have been told by OMB Director 
Mick Mulvaney that this was the first of many rescission 
packages meant to bring spending in line with the President's 
priorities, ignoring Congressional action that dismissed the 
President's draconian FY 2018 budget request.
    In addition to the unacceptable rescissions proposals, the 
majority's lack of transparency in allocating the FY 2019 
discretionary budget also endangers future bipartisan 
compromise. The majority abandoned longstanding committee 
practice to provide Members and the public with a budget 
blueprint for domestic spending, known as 302(b) allocations. 
Members were asked to vote on bills without having the full 
picture on what impact each bill would have on the other bills.
    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.
    While we appreciate the majority's work in assembling the 
Fiscal Year (FY) 2019 FSGG bill, the sheer number of policy 
provisions in this bill reflects an unprecedented degree of 
focus on partisan priorities from the Majority's side of the 
aisle. The bill's allocation is the same as the 2018 enacted 
level, $23.423 billion, which does not adequately meet the 
growing needs of taxpayers, consumers, and investors.
    The bill's most galling feature is its failure to provide 
any funding for Election Assistance Commission grants. Our 
election infrastructure is outdated, reliant on antiquated 
technology, and unable to adequately defend against future 
intrusions. For instance, before the 2016 election, Russia 
targeted the election systems of at least 21 states--including 
accessing the Illinois voter database. Congress has been 
repeatedly warned that Russia and other hostile actors will 
attempt to tamper with the 2018 or 2020 elections. With foreign 
governments attempting to disrupt and influence our democratic 
process, now is the time to double down on our efforts to 
prevent all forms of election hacking. Yet not a single 
Republican voted for an amendment from Ranking Member Quigley 
to provide $380 million, the amount appropriated in FY 2018, to 
help states fortify and protect election systems.
    The bill would also reduce the Community Development 
Financial Institutions (CDFI) Fund, one of the most significant 
bipartisan priorities within the subcommittee's jurisdiction. 
Even after accepting an amendment to increase funding, the bill 
as reported out of committee is $34 million below the FY 2018 
enacted level. CDFIs have historically generated twelve dollars 
of financing for every one dollar of appropriated funding. This 
committee should be doing more to ensure that low-income rural, 
urban, and Native American communities have access to quality, 
affordable, and responsible financial services products.
    Another particularly irresponsible cut targets the General 
Services Administration (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. Every dollar that GSA is unable to 
spend on basic maintenance and repairs leads to a long-term 
capital liability of four to five dollars in the future.
    These reductions are particularly problematic when compared 
to some of the priorities of the majority. Most notable is the 
creation of a $585 million ``Fund for America's Kids and 
Grandkids.'' This is an obvious attempt to not spend the 
subcommittee's full allocation under the guise of deficit 
reduction. Instead of throwing $585 million in a black hole, 
the resources provided for this program could have been far 
better invested in a number of areas that would have actually 
helped the next generation of Americans.
    Even more troubling than inadequate funding for critical 
priorities is the laundry list of ideological riders and 
authorizing provisions included in the bill. Titles IX, X, and 
XI contain 31 different authorizing bills. While several of 
these are non-controversial and received substantial Democratic 
support, they do not belong in a spending bill. It is 
disappointing that Republicans opposed an amendment offered by 
Rep. Kaptur to strike the extraneous titles.
    As in previous years, House Republicans have used the FSGG 
bill to attempt to weaken campaign finance laws. Riders are 
included to prevent the Securities and Exchange Commission 
(SEC) from requiring the disclosure of political contributions 
and to repeal the Federal Election Commission's prior approval 
requirement, which places limits on political solicitation. 
Republicans rejected an amendment from Rep. Cartwright to 
strike the SEC provision.
    Democrats also tried to remove 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 would make 
it even more difficult for a woman to purchase the health 
insurance she wants. Ranking Member Lowey offered an amendment 
to strike this harmful provision and protect a woman's right to 
make legal and private health choices without government 
interference, which Republicans opposed.
    Several of the objectionable Republican provisions that 
attack women's right to safe and legal abortion services also 
continued the Republican tradition of interfering in the local 
affairs of the District of Columbia. As in past years, the bill 
contains a variety of provisions that impose limits on the 
District's ability to govern itself. Rep. Ryan and Rep. Lee 
offered amendments to protect the District's ability to spend 
its own funds to enforce its Reproductive Health Non-
Discrimination Act and to cover safe and legal abortion under 
its Medicaid program, respectively. Republicans opposed both of 
these amendments.
    Rep. Aguilar offered an amendment that was rejected to make 
sure that individuals in the Deferred Action for Childhood 
Arrivals program, which covers certain non-criminal immigrants 
who entered the country as children and remain without U.S. 
citizenship, can lend their talents to the Federal workforce. 
Despite more Republican broken promises, Democrats will 
continue to work to help our Dreamers.
    Democrats sought to make a number of other improvements to 
the bill, including an amendment from Rep. McCollum to restore 
a provision to block pay raises for the Vice President and high 
ranking political appointees, an amendment from Rep. Serrano to 
nullify part-time Consumer Financial Protection Bureau Director 
Mulvaney's firing of the entire Consumer Advisory Board, an 
amendment from Rep. Wasserman Schultz to remove the prohibition 
on funds for the Internal Revenue Service to deny tax exemption 
to churches for engaging in political activity, and an 
amendment from Reps. Price and Serrano to restore the FCC's 
Open Internet Order and save net neutrality. All of these 
amendments were defeated.
    We were also disappointed that Republicans opposed an 
amendment from Rep. Joyce to ensure that financial institutions 
are not penalized solely because they provide services to 
entities involved with handling marijuana in states where such 
activity is legal. After several Republicans implied that they 
would support an amendment limited to entities handling medical 
marijuana, Rep. Joyce proposed such an amendment. The Majority 
encouraged him to withdraw that amendment as well. Democrats 
will continue to work to provide clarity for financial 
institutions and others operating legal businesses.
    Despite the bill's numerous shortcomings, we are pleased 
that it would increase funding for the Office of Terrorism and 
Financial Intelligence, Federal Defender Services, Small 
Business Administration, and Office of National Drug Control 
Policy. Additionally, we thank Chairman Graves for directing 
the United States Postal Service to issue a report on the 
adequacy of personnel levels, the use of temporary employees, 
and consolidation of distribution centers. Inconsistent mail 
delivery has reached epidemic proportions in many areas, and 
must be improved.
    However, on balance the reductions to critical programs and 
poison pill riders make this a bill Democrats strongly oppose. 
It is the latest example of House Republicans following 
President Trump's lead and turning their backs on hardworking 
American families.

                                   Nita M. Lowey.
                                   Mike Quigley.
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