CFPB–IG Reform Act of 2023

Subjects: Finance and Financial Sector

Summary:  <p><b>Bureau of Consumer Financial Protection-Inspector General Reform Act of 2023 or the CFPB-IG Act of 2023</b></p> <p>This bill establishes a separate Office of Inspector General for the Consumer Financial Protection Bureau (CFPB). Currently, such oversight of the CFPB is combined with the Office of Inspector General for the Board of Governors of the Federal Reserve System.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1411 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1411

 To require Senate confirmation of Inspector General of the Bureau of 
         Consumer Financial Protection, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 7, 2023

 Mr. Luetkemeyer introduced the following bill; which was referred to 
 the Committee on Oversight and Accountability, and in addition to the 
   Committee on Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To require Senate confirmation of Inspector General of the Bureau of 
         Consumer Financial Protection, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bureau of Consumer Financial 
Protection-Inspector General Reform Act of 2023'' or the ``CFPB-IG 
Reform Act of 2023''.

SEC. 2. APPOINTMENT OF INSPECTOR GENERAL.

    Chapter 4 of title 5, United States Code, is amended--
            (1) in section 401--
                    (A) in paragraph (1), by inserting ``the Bureau of 
                Consumer Financial Protection,'' after ``the Export-
                Import Bank of the United States,''; and
                    (B) in paragraph (3), by inserting ``the Director 
                of the Bureau of Consumer Financial Protection;'' after 
                ``the President of the Export-Import Bank of the United 
                States;''; and
            (2) in section 415--
                    (A) in subsection (a)(1), by striking ``and the 
                Bureau of Consumer Financial Protection'';
                    (B) in subsection (c), by striking ``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.''; and
                    (C) in subsection (g)(3), by striking ``and the 
                Bureau of Consumer Financial Protection''.

SEC. 3. REQUIREMENTS FOR THE INSPECTOR GENERAL FOR THE BUREAU OF 
              CONSUMER FINANCIAL PROTECTION.

    (a) Establishment.--Section 1011 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5491) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by striking ``and 
                Deputy Director'' and inserting ``, Deputy Director, 
                and Inspector General''; and
                    (B) by inserting after paragraph (5) the following:
            ``(6) Inspector general.--There is established the position 
        of the Inspector General.''; and
            (2) in subsection (d), by striking ``or Deputy Director'' 
        each place it appears and inserting ``, Deputy Director, or 
        Inspector General''.
    (b) Hearings.--Section 1016 of such Act is amended by inserting 
after subsection (c) the following:
    ``(d) Additional Requirement for Inspector General.--On a separate 
occasion from that described in subsection (a), the Inspector General 
of the Bureau shall appear, upon invitation, before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services and the Committee on Energy and Commerce of the 
House of Representatives at semiannual hearings regarding the reports 
required under subsection (b) and the reports required under section 
405 of title 5, United States Code.''.
    (c) Funding for Office of Inspector General.--Section 1017(a)(2) of 
such Act is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following:
                    ``(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.''.
    (d) Participation in the Council of Inspectors General on Financial 
Oversight.--Section 989E(a)(1) of such Act is amended by adding at the 
end the following:
                    ``(J) The Bureau of Consumer Financial 
                Protection.''.
    (e) Deadline for Appointment.--Not later than 60 days after the 
date of the enactment of this Act, the President shall appoint an 
Inspector General for the Bureau of Consumer Financial Protection in 
accordance with section 403 of title 5, United States Code.

SEC. 4. EFFECTIVE DATE.

    (a) In General.--The amendments made by this Act shall take effect 
on the date on which the first Inspector General of the Bureau of 
Consumer Financial Protection is confirmed by the Senate.
    (b) Appointment.--The President may appoint, and the Senate may 
confirm, an Inspector General of the Bureau of Consumer Financial 
Protection before the amendments made by this Act take effect.
    (c) Transition.--The Inspector General of the Board of Governors of 
the Federal Reserve System and the Bureau of Consumer Financial 
Protection shall, upon the date on which the first Inspector General of 
the Bureau of Consumer Financial Protection is confirmed by the Senate, 
become the Inspector General of the Board of Governors of the Federal 
Reserve System.
                                 &lt;all&gt;
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