CFPB Constitutional Reform Act of 2017

To replace the Director of the Bureau of Consumer Financial Protection with a 5-person commission, and for other purposes. 1. Short title This Act may be cited as the CFPB Constitutional Reform Act of 2017 2. Replacing the Director with a 5-person commission The Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 (1) in section 1011— (A) by striking subsections (b), (c), and (d); (B) by redesignating subsection (e) as subsection (h); and (C) by inserting after subsection (a) the following new subsections: (b) Bureau headed by a commission (1) In general The Bureau shall be headed by a commission, as provided under this subsection. (2) Composition of the commission (A) In general The commission shall be composed of 5 members who shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who— (i) are citizens of the United States; and (ii) have strong competencies and experiences related to consumer financial products and services. (B) Staggering The members of the commission shall serve staggered terms, which initially shall be established by the President for terms of 1, 2, 3, 4, and 5 years, respectively. (C) Terms (i) In general Except as provided under subparagraph (B), each member of the commission, including the Chair, shall serve for a term of 5 years. (ii) Removal The President may remove any member of the commission for inefficiency, neglect of duty, or malfeasance in office. (iii) Vacancies Any member of the commission appointed to fill a vacancy occurring before the expiration of the term to which that member’s predecessor was appointed (including the Chair) shall be appointed only for the remainder of the term. (iv) Continuation of service Each member of the commission may continue to serve after the expiration of the term of office to which that member was appointed until a successor has been appointed by the President and confirmed by the Senate, except that a member may not continue to serve more than 1 year after the date on which that member’s term would otherwise expire. (v) Other employment prohibited No member of the commission shall engage in any other business, vocation, or employment. (c) Affiliation Not more than 3 members of the commission shall be members of any one political party. (d) Chair (1) Appointment The Chair of the commission shall be appointed by the President from among the members of the commission. (2) Authority The Chair shall be the principal executive officer of the commission, and shall exercise all of the executive and administrative functions of the commission, including with respect to— (A) the appointment and supervision of personnel employed under the commission (other than personnel employed regularly and full time in the immediate offices of members of the commission other than the Chair); (B) the distribution of business among personnel appointed and supervised by the Chair and among administrative units of the commission; and (C) the use and expenditure of funds. (3) Limitation In carrying out any of the Chair’s functions under the provisions of this subsection the Chair shall be governed by general policies of the commission and by such regulatory decisions, findings, and determinations as the commission may by law be authorized to make. (e) No impairment by reason of vacancies No vacancy in the members of the commission shall impair the right of the remaining members of the commission to exercise all the powers of the commission. Three members of the commission shall constitute a quorum for the transaction of business, except that if there are only 3 members serving on the commission because of vacancies in the commission, 2 members of the commission shall constitute a quorum for the transaction of business. If there are only 2 members serving on the commission because of vacancies in the commission, 2 members shall constitute a quorum for the 6-month period beginning on the date of the vacancy which caused the number of commission members to decline to 2. (f) Seal The Commission shall have an official seal. (g) Compensation (1) Chair The Chair shall receive compensation at the rate prescribed for level I of the Executive Schedule under section 5313 of title 5, United States Code. (2) Other members of the commission The 4 other members of the commission shall each receive compensation at the rate prescribed for level II of the Executive Schedule under section 5314 of title 5, United States Code. . 3. Deeming of name Any reference in a law, regulation, document, paper, or other record of the United States to the Director of the Bureau of Consumer Financial Protection shall be deemed a reference to the Bureau of Consumer Financial Protection. 4. Conforming amendments (a) Consumer Financial Protection Act of 2010 (1) In general Except as provided under paragraph (2), the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 (A) by striking Director of the Bureau Bureau (B) by striking Director Bureau (C) in section 1002, by striking paragraph (10). (2) Exceptions The Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 (A) in section 1013(c)(3)— (i) by striking Assistant Director of the Bureau for Head of the Office of (ii) in subparagraph (B), by striking Assistant Director Head of the Office (B) in section 1013(g)(2)— (i) by striking Assistant director Head of the Office (ii) by striking an assistant director a Head of the Office of Financial Protection for Older Americans (C) in section 1016(a), by striking Director of the Bureau Chair of the Bureau (D) in section 1017(c)(1), by striking Director and other (E) in section 1027(l)(1), by striking Director and the Bureau Chair and the Bureau (F) in section 1066(a), by striking Director of the Bureau is first member of the Bureau is (b) Dodd-Frank Wall Street Reform and Consumer Protection Act The Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 (1) in section 111(b)(1)(D), by striking Director of the Bureau Chair of the Bureau (2) in section 1447, by striking Director of the Bureau Bureau (c) Electronic Fund Transfer Act Section 921(a)(4)(C) of the Electronic Fund Transfer Act ( 15 U.S.C. 1693o–2(a)(4)(C) Director of the Bureau of Consumer Financial Protection Bureau (d) Expedited Funds Availability Act The Expedited Funds Availability Act ( 12 U.S.C. 4001 Director of the (e) Federal Deposit Insurance Act Section 2 of the Federal Deposit Insurance Act ( 12 U.S.C. 1812 Director of the Consumer Financial Protection Bureau Chair of the Bureau of Consumer Financial Protection (f) Federal Financial Institutions Examination Council Act of 1978 Section 1004(a)(4) of the Federal Financial Institutions Examination Council Act of 1978 ( 12 U.S.C. 3303(a)(4) Director of the Consumer Financial Protection Bureau Chair of the Bureau of Consumer Financial Protection (g) Financial Literacy and Education Improvement Act Section 513 of the Financial Literacy and Education Improvement Act ( 20 U.S.C. 9702 Director of the Bureau of Consumer Financial Protection Chair of the Bureau of Consumer Financial Protection (h) Home Mortgage Disclosure Act of 1975 Section 307 of the Home Mortgage Disclosure Act of 1975 is amended by striking Director of the Bureau of Consumer Financial Protection Bureau of Consumer Financial Protection (i) Interstate Land Sales Full Disclosure Act The Interstate Land Sales Full Disclosure Act is amended— (1) by amending section 1402(1) to read as follows: (1) Chair ; and (2) in section 1416(a), by striking Director of the Bureau of Consumer Financial Protection Chair (j) Real Estate Settlement Procedures Act of 1974 Section 5 of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2604 (1) by striking The Director of the Bureau of Consumer Financial Protection (hereafter in this section referred to as the Director The Bureau of Consumer Financial Protection (2) by striking Director Bureau (k) S.A.F.E. Mortgage Licensing Act of 2008 The S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5101 (1) by striking Director Bureau (2) by striking director Bureau (3) in section 1503, by striking paragraph (10). (l) Title 44, United States Code Section 3513(c) of title 44, United States Code is amended by striking Director of the Bureau Bureau

Summary: CFPB Constitutional Reform Act of 2017 This bill amends the Consumer Financial Protection Act of 2010 to revise the leadership structure of the Consumer Financial Protection Bureau (CFPB). Specifically, the bill replaces the CFPB's director and deputy director with a five-person commission.