332 
organization has not met the requirements described 
under subsection (b). 
(2) NOTICE OF FAILURE TO MEET REQUIRE-
MENTS.—If the appropriate Federal banking agency 
determines that a banking organization submitting 
an election notice under subsection (c) does not meet 
the requirements described under subsection (b), the 
agency shall— 
(A) notify the banking organization (and 
any applicable State bank supervisor that regu-
lates the banking organization), in writing, of 
such determination as soon as possible after 
such determination is made, but in no case 
later than the end of the 30-day period begin-
ning on the date that the appropriate Federal 
banking agency receives the election; and 
(B) include in such notification the specific 
reasons for such determination and steps that 
the banking organization can take to meet such 
requirements. 
(e) TREATMENT OF CERTAIN NEW BANKING ORGA-
NIZATIONS.—In the case of a banking organization that 
is a newly-chartered insured depository institution or a 
banking organization that becomes a banking organization 
because it controls a newly-chartered insured depository 
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institution, such banking organization may be treated as 
a qualifying banking organization immediately upon be-
coming a banking organization, if— 
(1) an election to be treated as a qualifying 
banking organization was included in the application 
filed with the appropriate Federal banking agency in 
connection with becoming a banking organization; 
and 
(2) as of the date the banking organization be-
comes a banking organization, the banking organiza-
tion’s tangible equity divided by the banking organi-
zation’s leverage exposure, expressed as a percent-
age, is at least 10 percent. 
(f) FAILURE TO MAINTAIN QUARTERLY LEVERAGE 
RATIO AND LOSS OF ELECTION.— 
(1) EFFECT OF FAILURE TO MAINTAIN QUAR-
TERLY LEVERAGE RATIO.— 
(A) IN GENERAL.—If, with respect to the 
most recently completed calendar quarter, the 
appropriate Federal banking agency determines 
that a qualifying banking organization’s quar-
terly leverage ratio is below 10 percent— 
(i) the appropriate Federal banking 
agency shall notify the qualifying banking 
organization and any applicable State bank 
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334 
supervisor that regulates the banking orga-
nization of such determination; 
(ii) the appropriate Federal banking 
agency may prohibit the banking organiza-
tion from making a capital distribution; 
and 
(iii) the banking organization shall, 
within 3 months of the first such deter-
mination, submit a capital restoration plan 
to the appropriate Federal banking agency. 
(B) LOSS OF ELECTION AFTER ONE-YEAR 
REMEDIATION PERIOD.—If a banking organiza-
tion described under subparagraph (A) does 
not, within the 1-year period beginning on the 
date of such determination, raise the organiza-
tion’s quarterly leverage ratio for a calendar 
quarter ending in such 1-year period to at least 
10 percent, the banking organization’s election 
under this section shall be terminated, and the 
appropriate Federal banking agency shall notify 
any applicable State bank supervisor that regu-
lates the banking organization of such termi-
nation. 
(C) EFFECT OF SUBSIDIARY ON PARENT 
ORGANIZATION.—With respect to a qualifying 
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335 
banking organization described under subpara-
graph (A) that is an insured depository institu-
tion, any parent depository institution holding 
company of the qualifying banking organization 
shall— 
(i) if the appropriate Federal banking 
agency determines it appropriate, be pro-
hibited from making a capital distribution 
(other than a capital contribution to such 
qualifying banking organization described 
under subparagraph (A)); and 
(ii) if the qualifying banking organiza-
tion has an election terminated under sub-
paragraph (B), any such parent depository 
institution holding company shall also have 
its election under this section terminated. 
(2) IMMEDIATE
LOSS
OF
ELECTION
IF
THE 
QUARTERLY LEVERAGE RATIO FALLS BELOW 6 PER-
CENT.— 
(A) IN GENERAL.—If, with respect to the 
most recently completed calendar quarter, the 
appropriate Federal banking agency determines 
that a qualifying banking organization’s quar-
terly leverage ratio is below 6 percent, the 
banking organization’s election under this sec-
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336 
tion shall be terminated, and the appropriate 
Federal banking agency shall notify any appli-
cable State bank supervisor that regulates the 
banking organization of such termination. 
(B) EFFECT OF SUBSIDIARY ON PARENT 
ORGANIZATION.—With respect to a qualifying 
banking organization described under subpara-
graph (A) that is an insured depository institu-
tion, any parent depository institution holding 
company of the qualifying banking organization 
shall also have its election under this section 
terminated. 
(3) ABILITY TO MAKE FUTURE ELECTIONS.—If 
a banking organization has an election under this 
section terminated, the banking organization may 
not apply for another election under this section 
until the banking organization has maintained a 
quarterly leverage ratio of at least 10 percent for 8 
consecutive calendar quarters. 
SEC. 602. REGULATORY RELIEF. 
(a) IN GENERAL.—A qualifying banking organization 
shall be exempt from the following: 
(1) Any Federal law, rule, or regulation ad-
dressing capital or liquidity requirements or stand-
ards. 
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337 
(2) Any Federal law, rule, or regulation that 
permits an appropriate Federal banking agency to 
object to a capital distribution. 
(3) Any consideration by an appropriate Fed-
eral banking agency of the following: 
(A) Any risk the qualifying banking orga-
nization may pose to ‘‘the stability of the finan-
cial system of the United States’’, under section 
5(c)(2) of the Bank Holding Company Act of 
1956. 
(B) The ‘‘extent to which a proposed ac-
quisition, merger, or consolidation would result 
in greater or more concentrated risks to the 
stability of the United States banking or finan-
cial system’’, under section 3(c)(7) of the Bank 
Holding Company Act of 1956, so long as the 
banking organization, after such proposed ac-
quisition, merger, or consolidation, would main-
tain a quarterly leverage ratio of at least 10 
percent. 
(C) Whether the performance of an activity 
by the banking organization could possibly pose 
a ‘‘risk to the stability of the United States 
banking or financial system’’, under section 
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338 
4(j)(2)(A) of the Bank Holding Company Act 
of 1956. 
(D) Whether the acquisition of control of 
shares of a company engaged in an activity de-
scribed in section 4(j)(1)(A) of the Bank Hold-
ing Company Act of 1956 could possibly pose a 
‘‘risk to the stability of the United States bank-
ing 
or 
financial 
system’’, 
under 
section 
4(j)(2)(A) of the Bank Holding Company Act 
of 1956, so long as the banking organization, 
after acquiring control of such company, would 
maintain a quarterly leverage ratio of at least 
10 percent. 
(E) Whether a merger would pose a ‘‘risk 
to the stability of the United States banking or 
financial system’’, under section 18(c)(5) of the 
Federal Deposit Insurance Act, so long as the 
banking organization, after such proposed 
merger, would maintain a quarterly leverage 
ratio of at least 10 percent. 
(F) Any risk the qualifying banking orga-
nization may pose to ‘‘the stability of the finan-
cial system of the United States’’, under section 
10(b)(4) of the Home Owners’ Loan Act. 
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339 
(4) Subsections (i)(8) and (k)(6)(B)(ii) of sec-
tion 4 and section 14 of the Bank Holding Company 
Act of 1956. 
(5) Section 18(c)(13) of the Federal Deposit 
Insurance Act. 
(6) Section 163 of the Financial Stability Act 
of 2010. 
(7) Section 10(e)(2)(E) of the Home Owners’ 
Loan Act. 
(8) Any Federal law, rule, or regulation imple-
menting standards of the type provided for in sub-
sections (b), (c), (d), (e), (g), (h), (i), and (j) of sec-
tion 165 of the Financial Stability Act of 2010. 
(9) Any Federal law, rule, or regulation pro-
viding limitations on mergers, consolidations, or ac-
quisitions of assets or control, to the extent such 
limitations relate to capital or liquidity standards or 
concentrations of deposits or assets, so long as the 
banking organization, after such proposed merger, 
consolidation, or acquisition, would maintain a quar-
terly leverage ratio of at least 10 percent. 
(b) QUALIFYING BANKING ORGANIZATIONS TREAT-
ED AS WELL CAPITALIZED.—A qualifying banking organi-
zation shall be deemed to be ‘‘well capitalized’’ for pur-
poses of— 
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340 
(1) section 216 of the Federal Credit Union 
Act; and 
(2) sections 29, 38, 44, and 46 of the Federal 
Deposit Insurance Act. 
(c) TREATMENT OF CERTAIN RISK-WEIGHTED ASSET 
REQUIREMENTS FOR QUALIFYING BANKING ORGANIZA-
TIONS.— 
(1) ACQUISITION SIZE CRITERIA TREATMENT.— 
A qualifying banking organization shall be deemed 
to meet the criteria described under section 
4(j)(4)(D) of the Bank Holding Company Act of 
1956, so long as after the proposed transaction the 
acquiring qualifying banking organization would 
maintain a quarterly leverage ratio of at least 10 
percent. 
(2) USE OF LEVERAGE EXPOSURE.—With re-
spect to a qualifying banking organization, in deter-
mining whether a proposal qualifies with the criteria 
described under subparagraphs (A)(iii) and (B)(i) of 
section 4(j)(4) of the Bank Holding Company Act of 
1956, the Board of Governors of the Federal Re-
serve System shall consider the leverage exposure of 
an insured depository institution instead of the total 
risk-weighted assets of such institution. 
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341 
SEC. 603. CONTINGENT CAPITAL STUDY. 
(a) STUDY.—The Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corpora-
tion, and the Office of the Comptroller of the Currency 
shall each carry out a study, which shall include holding 
public hearings, on how to design a requirement that 
banking organizations issue contingent capital with a mar-
ket-based conversion trigger. 
(b) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
each agency described under subsection (a) shall submit 
a report to the Congress containing— 
(1) all findings and determinations made by the 
agency in carrying out the study required under sub-
section (a); and 
(2) the agency’s recommendations on how the 
Congress should design a requirement that banking 
organizations issue contingent capital with a market- 
based conversion trigger. 
SEC. 604. STUDY ON ALTERING THE CURRENT PROMPT 
CORRECTIVE ACTION RULES. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study to assess the benefits and 
feasibility of altering the current prompt corrective action 
rules and replacing the Basel-based capital ratios with the 
nonperforming asset coverage ratio or NACR as the trig-
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342 
ger for specific required supervisory interventions. The 
Comptroller General shall ensure that such study includes 
the following: 
(1) An assessment of the performance of an 
NACR forward-looking measure of a banking orga-
nization’s solvency condition relative to the regu-
latory capital ratios currently used by prompt cor-
rective action rules. 
(2) An analysis of the performance of alter-
native definitions of nonperforming assets. 
(3) An assessment of the impact of two alter-
native intervention thresholds: 
(A) An initial (high) intervention thresh-
old, below which appropriate Federal banking 
agency examiners are required to intervene and 
assess a banking organization’s condition and 
prescribe remedial measures. 
(B) A lower threshold, below which bank-
ing organizations must increase their capital, 
seek an acquirer, or face mandatory resolution 
within 90 days. 
(b) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Comptroller General shall submit a report to the Con-
gress containing— 
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343 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) recommendations on the most suitable defi-
nition of nonperforming assets, as well as the two 
numerical thresholds that trigger specific required 
supervisory interventions. 
SEC. 605. DEFINITIONS. 
For purposes of this title: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’— 
(A) has the meaning given such term 
under section 3 of the Federal Deposit Insur-
ance Act; and 
(B) means the National Credit Union Ad-
ministration, in the case of an insured credit 
union. 
(2) 
BANKING
ORGANIZATION.—The 
term 
‘‘banking organization’’ means— 
(A) an insured depository institution; 
(B) an insured credit union; 
(C) a depository institution holding com-
pany; 
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344 
(D) a company that is treated as a bank 
holding company for purposes of section 8 of 
the International Banking Act; and 
(E) a U.S. intermediate holding company 
established by a foreign banking organization 
pursuant to section 252.153 of title 12, Code of 
Federal Regulations. 
(3) FOREIGN
EXCHANGE
SWAP .—The term 
‘‘foreign exchange swap’’ has the meaning given that 
term under section 1a of the Commodity Exchange 
Act. 
(4) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the meaning given that term 
under section 101 of the Federal Credit Union Act. 
(5) LEVERAGE EXPOSURE.—The term ‘‘lever-
age exposure’’— 
(A) with respect to a banking organization 
other than an insured credit union or a tradi-
tional banking organization, has the meaning 
given the term ‘‘total leverage exposure’’ under 
section 
3.10(c)(4)(ii), 
217.10(c)(4), 
or 
324.10(c)(4) of title 12, Code of Federal Regu-
lations, as applicable, as in effect on the date 
of the enactment of this Act; 
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345 
(B) with respect to a traditional banking 
organization other than an insured credit union, 
means total assets (minus any items deducted 
from common equity tier 1 capital) as cal-
culated in accordance with generally accepted 
accounting principles and as reported on the 
traditional banking organization’s applicable 
regulatory filing with the banking organiza-
tion’s appropriate Federal banking agency; and 
(C) with respect to a banking organization 
that is an insured credit union, has the mean-
ing given the term ‘‘total assets’’ under section 
702.2 of title 12, Code of Federal Regulations, 
as in effect on the date of the enactment of this 
Act. 
(6) LEVERAGE RATIO DEFINITIONS.— 
(A) AVERAGE LEVERAGE RATIO.—With re-
spect to a banking organization, the term ‘‘av-
erage leverage ratio’’ means the average of the 
banking organization’s quarterly leverage ratios 
for each of the most recently completed four 
calendar quarters. 
(B) QUARTERLY LEVERAGE RATIO.—With 
respect to a banking organization and a cal-
endar quarter, the term ‘‘quarterly leverage 
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346 
ratio’’ means the organization’s tangible equity 
divided by the organization’s leverage exposure, 
expressed as a percentage, on the last day of 
such quarter. 
(7) NACR.—The term ‘‘NACR’’ means— 
(A) book equity less nonperforming assets 
plus loan loss reserves, divided by 
(B) total banking organization assets. 
(8) NONPERFORMING ASSETS.—The term ‘‘non-
performing assets’’ means— 
(A) 20 percent of assets that are past due 
30 to 89 days, plus 
(B) 50 percent of assets that are past due 
90 days or more, plus 
(C) 100 percent of nonaccrual assets and 
other real estate owned. 
(9) QUALIFYING
BANKING
ORGANIZATION.— 
The term ‘‘qualifying banking organization’’ means 
a banking organization that has made an election 
under section 601 and with respect to which such 
election is in effect. 
(10) SECURITY-BASED SWAP .—The term ‘‘se-
curity-based swap’’ has the meaning given that term 
under section 3 of the Securities Exchange Act of 
1934. 
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347 
(11) SWAP.—The term ‘‘swap’’ has the mean-
ing given that term under section 1a of the Com-
modity Exchange Act. 
(12) TANGIBLE EQUITY.—The term ‘‘tangible 
equity’’— 
(A) with respect to a banking organization 
other than a credit union, means the sum of— 
(i) common equity tier 1 capital; 
(ii) additional tier 1 capital consisting 
of instruments issued on or before the date 
of enactment of this Act; and 
(iii) with respect to a depository insti-
tution holding company that had less than 
$15,000,000,000 in total consolidated as-
sets as of December 31, 2009, or March 
31, 2010, or a banking organization that 
was a mutual holding company as of May 
19, 2010, trust preferred securities issued 
prior to May 19, 2010, to the extent such 
organization was permitted, as of the date 
of the enactment of this Act, to consider 
such securities as tier 1 capital under ex-
isting regulations of the appropriate Fed-
eral banking agency; and 
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348 
(B) with respect to a banking organization 
that is a credit union, has the meaning given 
the term ‘‘net worth’’ under section 702.2 of 
title 12, Code of Federal Regulations, as in ef-
fect on the date of the enactment of this Act. 
(13) TRADITIONAL BANKING ORGANIZATION.— 
The term ‘‘traditional banking organization’’ means 
a banking organization that— 
(A) has zero trading assets and zero trad-
ing liabilities; 
(B) does not engage in swaps or security- 
based swaps, other than swaps or security- 
based swaps referencing interest rates or for-
eign exchange swaps; and 
(C) has a total notional exposure of swaps 
and security-based swaps of not more than 
$8,000,000,000. 
(14) OTHER BANKING TERMS.—The terms ‘‘in-
sured depository institution’’ and ‘‘depository insti-
tution holding company’’ have the meaning given 
those terms, respectively, under section 3 of the 
Federal Deposit Insurance Act. 
(15) OTHER CAPITAL TERMS.—With respect to 
a banking organization, the terms ‘‘additional tier 1 
capital’’ and ‘‘common equity tier 1 capital’’ have 
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349 
the meaning given such terms, respectively, under 
section 3.20, 217.20, or 324.20 of title 12, Code of 
Federal Regulations, as applicable, as in effect on 
the date of the enactment of this Act. 
TITLE VII—EMPOWERING AMER-
ICANS TO ACHIEVE FINAN-
CIAL INDEPENDENCE 
Subtitle A—Separation of Powers 
and Liberty Enhancements 
SEC. 711. CONSUMER LAW ENFORCEMENT AGENCY. 
(a) MAKING THE BUREAU AN INDEPENDENT CON-
SUMER LAW ENFORCEMENT AGENCY.—The Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.) 
is amended— 
(1) in section 1011— 
(A) in the heading of such section, by 
striking ‘‘BUREAU
OF
CONSUMER
FINAN-
CIAL
PROTECTION’’ and inserting ‘‘CON-
SUMER LAW ENFORCEMENT AGENCY’’; 
(B) in subsection (a)— 
(i) in the heading of such subsection, 
by striking ‘‘BUREAU’’ and inserting 
‘‘AGENCY’’; 
(ii) by striking ‘‘in the Federal Re-
serve System,’’; 
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350 
(iii) by striking ‘‘independent bureau’’ 
and inserting ‘‘independent agency’’; and 
(iv) by striking ‘‘Bureau of Consumer 
Financial Protection’’ and inserting ‘‘Con-
sumer Law Enforcement Agency (herein-
after in this section referred to as the 
‘Agency’)’’; 
(C) in subsection (b)(5), by amending sub-
paragraph (A) to read as follows: 
‘‘(A) shall be appointed by the President; 
and’’; 
(D) in subsection (c), by striking para-
graph (3); 
(E) in subsection (e), by striking ‘‘, includ-
ing in cities in which the Federal reserve banks, 
or branches of such banks, are located,’’; and 
(F) by striking ‘‘Bureau’’ each place such 
term appears and inserting ‘‘Agency’’; and 
(2) in section 1012— 
(A) in subsection (a)(10), by striking ‘‘ex-
aminations,’’; and 
(B) by striking subsection (c). 
(b) DEEMING OF NAME.—Any reference in a law, 
regulation, document, paper, or other record of the United 
States to the Bureau of Consumer Financial Protection 
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351 
shall be deemed a reference to the Consumer Law En-
forcement Agency. 
(c) CONFORMING AMENDMENTS.— 
(1) DODD-FRANK WALL STREET REFORM AND 
CONSUMER
PROTECTION
ACT.—The Dodd-Frank 
Wall Street Reform and Consumer Protection Act 
(12 U.S.C. 5301 et seq.) is amended— 
(A) in the table of contents in section 
1(b)— 
(i) by striking ‘‘Bureau of Consumer 
Financial Protection’’ each place such term 
appears and inserting ‘‘Consumer Law En-
forcement Agency’’; and 
(ii) in the table of contents relating to 
title X, in the items relating to subtitle B, 
subtitle C, and section 1027, by striking 
‘‘Bureau’’ each place such term appears 
and inserting ‘‘Agency’’; 
(B) in section 2, by amending paragraph 
(4) to read as follows: 
‘‘(4) AGENCY.—The term ‘Agency’ means the 
Consumer Law Enforcement Agency established 
under title X.’’; 
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352 
(C) in section 342 by striking ‘‘Bureau’’ 
each place such term appears in headings and 
text and inserting ‘‘Agency’’; 
(D) in section 1400(b)— 
(i) by striking ‘‘Bureau of Consumer 
Financial Protection’’ and inserting ‘‘Con-
sumer Law Enforcement Agency’’; and 
(ii) in the subsection heading, by 
striking ‘‘BUREAU OF CONSUMER FINAN-
CIAL PROTECTION’’ and inserting ‘‘CON-
SUMER LAW ENFORCEMENT AGENCY’’; 
(E) in section 1411(a)(1), by striking ‘‘Bu-
reau’’ and inserting ‘‘Agency’’; and 
(F) in section 1447, by striking ‘‘Director 
of the Bureau’’ each place such term appears 
and inserting ‘‘Director of the Consumer Law 
Enforcement Agency’’. 
(2) ALTERNATIVE
MORTGAGE
TRANSACTION 
PARITY
ACT
OF
1982.—The Alternative Mortgage 
Transaction Parity Act of 1982 (12 U.S.C. 3801 et 
seq.) is amended— 
(A) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Law Enforce-
ment Agency’’; and 
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353 
(B) in the subsection heading of subsection 
(d) of section 804 (12 U.S.C. 3803(d)), by 
striking ‘‘BUREAU’’ and inserting ‘‘AGENCY’’. 
(3) ELECTRONIC FUND TRANSFER ACT.—The 
Electronic Fund Transfer Act (15 U.S.C. 1693 et 
seq.) is amended— 
(A) by amending the second paragraph (4) 
(defining the term ‘‘Bureau’’) to read as fol-
lows: 
‘‘(4) the term ‘Agency’ means the Consumer 
Law Enforcement Agency;’’; 
(B) in section 916(d)(1), by striking ‘‘Bu-
reau of Consumer Financial Protection’’ and in-
serting ‘‘Consumer Law Enforcement Agency’’; 
and 
(C) by striking ‘‘Bureau’’ each place that 
term appears in heading or text and inserting 
‘‘Agency’’. 
(4) EQUAL
CREDIT
OPPORTUNITY
ACT.—The 
Equal Credit Opportunity Act (15 U.S.C. 1691 et 
seq.) is amended— 
(A) in section 702 (15 U.S.C. 1691a), by 
amending subsection (c) to read as follows: 
‘‘(c) The term ‘Agency’ means the Consumer Law 
Enforcement Agency.’’; and 
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354 
(B) by striking ‘‘Bureau’’ each place that 
term appears in heading or text and inserting 
‘‘Agency’’. 
(5) EXPEDITED
FUNDS
AVAILABILITY
ACT.— 
The Expedited Funds Availability Act (12 U.S.C. 
4001 et seq.) is amended— 
(A) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Law Enforce-
ment Agency’’; and 
(B) in the heading of section 605(f)(1), by 
striking ‘‘BOARD AND BUREAU’’ and inserting 
‘‘BOARD AND AGENCY’’. 
(6) FAIR
AND
ACCURATE
CREDIT
TRANS-
ACTIONS
ACT
OF
2003.—The Fair and Accurate 
Credit Transactions Act of 2003 (Public Law 108- 
159) is amended by striking ‘‘Bureau’’ each place 
such term appears and inserting ‘‘Agency’’. 
(7) FAIR CREDIT REPORTING ACT.—The Fair 
Credit Reporting Act (15 U.S.C. 1681 et seq.) is 
amended— 
(A) by amending section 603(w) to read as 
follows: 
‘‘(w) AGENCY.—The term ‘Agency’ means the Con-
sumer Law Enforcement Agency.’’; and 
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355 
(B) by striking ‘‘Bureau’’ each place such 
term appears, other than in sections 626 and 
603(v), and inserting ‘‘Agency’’. 
(8) FAIR DEBT COLLECTION PRACTICES ACT.— 
The Fair Debt Collection Practices Act (15 U.S.C. 
1692 et seq.) is amended— 
(A) by amending section 803(1) to read as 
follows: 
‘‘(1) The term ‘Agency’ means the Consumer 
Law Enforcement Agency.’’; and 
(B) by striking ‘‘Bureau’’ each place such 
term appears in heading or text and inserting 
‘‘Agency’’. 
(9) FEDERAL DEPOSIT INSURANCE ACT.—The 
Federal Deposit Insurance Act (12 U.S.C. 1811 et 
seq.) is amended— 
(A) in the second paragraph (6) (with the 
heading ‘‘Referral to bureau of consumer finan-
cial protection’’) of section 8(t) (12 U.S.C. 
1818(t))— 
(i) in the paragraph heading, by strik-
ing ‘‘BUREAU
OF
CONSUMER
FINANCIAL 
PROTECTION’’; and inserting ‘‘CONSUMER 
LAW ENFORCEMENT AGENCY’’; and 
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356 
(ii) by striking ‘‘Bureau of Consumer 
Financial Protection’’ and inserting ‘‘Con-
sumer Law Enforcement Agency’’; 
(B) by amending clause (vi) of section 
11(t)(2)(A) (12 U.S.C. 1821(t)(2)(A)(vi)) to 
read as follows: 
‘‘(vi) The Consumer Law Enforce-
ment Agency.’’; 
(C) in section 18(x) (12 U.S.C. 1828(x)), 
by striking ‘‘Bureau of Consumer Financial 
Protection’’ each place such term appears and 
inserting ‘‘Consumer Law Enforcement Agen-
cy’’; 
(D) by striking ‘‘Bureau’’ each place such 
term appears and inserting ‘‘Agency’’; and 
(E) in section 43(e) (12 U.S.C. 1831t(e)), 
by amending paragraph (5) to read as follows: 
‘‘(5) AGENCY.—The term ‘Agency’ means the 
Consumer Law Enforcement Agency.’’. 
(10) FEDERAL FINANCIAL INSTITUTIONS EXAM-
INATION COUNCIL ACT OF 1978.—The Federal Fi-
nancial Institutions Examination Council Act of 
1978 (12 U.S.C. 3301 et seq.) is amended— 
(A) in section 1004(a)(4), by striking 
‘‘Consumer Financial Protection Bureau’’ and 
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358 
nance Board’’ and all that follows through 
‘‘Farm Credit Administration’’ and inserting 
‘‘Federal Housing Finance Board, the Con-
sumer Law Enforcement Agency, and the Farm 
Credit Administration’’. 
(12) FINANCIAL LITERACY AND EDUCATION IM-
PROVEMENT ACT.—Section 513 of the Financial Lit-
eracy and Education Improvement Act (20 U.S.C. 
9702) is amended by striking ‘‘Bureau of Consumer 
Financial Protection’’ each place such term appears 
and inserting ‘‘Consumer Law Enforcement Agen-
cy’’. 
(13) GRAMM-LEACH-BLILEY ACT.—Title V of 
the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et 
seq.) is amended— 
(A) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Law Enforce-
ment Agency’’; and 
(B) in section 505(a)(8) (15 U.S.C. 
6805(a)(8)), by striking ‘‘Bureau’’ and insert-
ing ‘‘Agency’’. 
(14) HOME
MORTGAGE
DISCLOSURE
ACT
OF 
1975.—The Home Mortgage Disclosure Act of 1975 
(12 U.S.C. 2801 et seq.) is amended— 
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359 
(A) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Law Enforce-
ment Agency’’; 
(B) by striking ‘‘Bureau’’ each place such 
term appears and inserting ‘‘Agency’’; and 
(C) in section 303, by amending paragraph 
(1) to read as follows: 
‘‘(1) the term ‘Agency’ means the Consumer 
Law Enforcement Agency;’’. 
(15) 
HOMEOWNERS
PROTECTION
ACT
OF 
1998.—Section 10(a)(4) of the Homeowners Protec-
tion Act of 1998 (12 U.S.C. 4909(a)(4)) is amended 
by striking ‘‘Bureau of Consumer Financial Protec-
tion’’ and inserting ‘‘Consumer Law Enforcement 
Agency’’. 
(16) HOME OWNERSHIP AND EQUITY PROTEC-
TION ACT OF 1994.—Section 158(a) of the Home 
Ownership and Equity Protection Act of 1994 (15 
U.S.C. 1601 note) is amended by striking ‘‘Bureau’’ 
and inserting ‘‘Consumer Law Enforcement Agen-
cy’’. 
(17) INTERSTATE LAND SALES FULL DISCLO-
SURE ACT.—The Interstate Land Sales Full Disclo-
sure Act (12 U.S.C. 1701 et seq.) is amended— 
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360 
(A) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Agency’’; 
(B) in section 1402, by amending para-
graph (12) to read as follows: 
‘‘(12) ‘Agency’ means the Consumer Law En-
forcement Agency.’’; and 
(C) in section 1416, by striking ‘‘Bureau’’ 
each place such term appears and inserting 
‘‘Agency’’. 
(18) REAL ESTATE SETTLEMENT PROCEDURES 
ACT OF 1974.—The Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2601 et seq.) is 
amended— 
(A) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Law Enforce-
ment Agency’’; 
(B) by striking ‘‘Bureau’’ each place such 
term appears and inserting ‘‘Agency’’; and 
(C) in section 3, by amending paragraph 
(9) to read as follows: 
‘‘(9) the term ‘Agency’ means the Consumer 
Law Enforcement Agency.’’. 
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361 
(19) REVISED
STATUES
OF
THE
UNITED 
STATES.—Section 5136C(b)(3)(B) of the Revised 
Statutes 
of 
the 
United 
States 
(12 
U.S.C. 
25b(b)(3)(B)) is amended by striking ‘‘Bureau of 
Consumer Financial Protection’’ and inserting ‘‘Con-
sumer Law Enforcement Agency’’. 
(20) RIGHT
TO
FINANCIAL
PRIVACY
ACT
OF 
1978.—The Right to Financial Privacy Act of 1978 
(12 U.S.C. 3401 et seq.) is amended— 
(A) by amending subparagraph (B) of sec-
tion 1101(7) (12 U.S.C. 3401(7)(B)) to read as 
follows: 
‘‘(B) the Consumer Law Enforcement 
Agency;’’; and 
(B) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears in heading or text and inserting ‘‘Con-
sumer Law Enforcement Agency’’. 
(21) S.A.F.E. MORTGAGE LICENSING ACT OF 
2008.—The S.A.F.E. Mortgage Licensing Act of 
2008 (12 U.S.C. 5101 et seq.) is amended— 
(A) in section 1507, by striking ‘‘Bureau, 
and the Bureau of Consumer Financial Protec-
tion’’ each place such term appears and insert-
ing ‘‘Consumer Law Enforcement Agency’’; 
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362 
(B) by striking ‘‘Bureau of Consumer Fi-
nancial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Law Enforce-
ment Agency’’; 
(C) by striking ‘‘Bureau’’ each place such 
appears, other than in sections 1505(a)(1), 
1507(a)(2)(A), and 1511(b), and inserting 
‘‘Agency’’; 
(D) in section 1503, by amending para-
graph (1) to read as follows: 
‘‘(1) AGENCY.—The term ‘Agency’ means the 
Consumer Law Enforcement Agency.’’; 
(E) in the heading of section 1508, by 
striking ‘‘BUREAU
OF
CONSUMER
FINAN-
CIAL
PROTECTION’’ and inserting ‘‘CON-
SUMER LAW ENFORCEMENT AGENCY’’; and 
(F) in the heading of section 1514, by 
striking ‘‘BUREAU’’ and inserting ‘‘AGENCY’’. 
(22) TELEMARKETING AND CONSUMER FRAUD 
AND ABUSE PREVENTION ACT.—The Telemarketing 
and Consumer Fraud and Abuse Prevention Act (15 
U.S.C. 6101 et seq.) is amended by striking ‘‘Bu-
reau of Consumer Financial Protection’’ each place 
such term appears in heading or text and inserting 
‘‘Consumer Law Enforcement Agency’’. 
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363 
(23) TITLE 5, UNITED STATES CODE.—Title 5, 
United States Code, is amended— 
(A) in section 552a(w)— 
(i) in the subsection heading, by strik-
ing ‘‘BUREAU OF CONSUMER FINANCIAL 
PROTECTION’’ and inserting ‘‘CONSUMER 
LAW ENFORCEMENT AGENCY’’; 
(ii) by striking ‘‘Bureau of Consumer 
Financial Protection’’ and inserting ‘‘Con-
sumer Law Enforcement Agency’’; 
(B) in section 609(d)(2), by striking ‘‘Con-
sumer Financial Protection Bureau of the Fed-
eral Reserve System’’ and inserting ‘‘Consumer 
Law Enforcement Agency’’; and 
(C) in section 3132(a)(1)(D), as amended 
by section 151(a)(1), is further amended by in-
serting ‘‘the Consumer Law Enforcement Agen-
cy,’’ before ‘‘and the National Credit Union Ad-
ministration’’. 
(24) TITLE 10, UNITED STATES CODE.— 
(A) SECTION
987.—Section 987(h)(3)(E) 
of title 10, United States Code, is amended by 
striking ‘‘Bureau of Consumer Financial Pro-
tection’’ and inserting ‘‘Consumer Law En-
forcement Agency’’. 
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364 
(B) NDAA FY
2015.—Section 557(a) of 
the Carl Levin and Howard P. ‘‘Buck’’ McKeon 
National Defense Authorization Act for Fiscal 
Year 2015 (Public Law 113-29; 128 Stat. 
3381; 10 U.S.C. 1144 note), is amended by 
striking ‘‘Consumer Financial Protection Bu-
reau’’ each place such term appears and insert-
ing ‘‘Consumer Law Enforcement Agency’’. 
(25) TITLE 44, UNITED STATES CODE.—Title 
44, United States Code, is amended— 
(A) in section 3502(5), by striking ‘‘the 
Bureau of Consumer Financial Protection, the 
Office of Financial Research,’’ and inserting 
‘‘the Consumer Law Enforcement Agency,’’; 
and 
(B) in section 3513(c), by striking ‘‘Bu-
reau of Consumer Financial Protection’’ and in-
serting ‘‘Consumer Law Enforcement Agency’’. 
(26) TRUTH IN LENDING ACT.—The Truth in 
Lending Act (15 U.S.C. 1601 et seq.) is amended— 
(A) by amending section 103(b) (15 U.S.C. 
1602(b)) to read as follows: 
‘‘(b) AGENCY.—The term ‘Agency’ means the Con-
sumer Law Enforcement Agency.’’; 
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365 
(B) by amending section 103(c) (15 U.S.C. 
1602(c)) to read as follows: 
‘‘(c) BOARD.—The term ‘Board’ means the Board of 
Governors of the Federal Reserve System.’’; and 
(C) in section 128(f) (15 U.S.C. 1638(f)), 
by striking ‘‘Board’’ each place such term ap-
pears and inserting ‘‘Agency’’; 
(D) in sections 129B (15 U.S.C. 1639b) 
and 129C (15 U.S.C. 1639c), by striking 
‘‘Board’’ each place such term appears and in-
serting ‘‘Agency’’; 
(E) in section 140A (15 U.S.C. 1651), by 
striking ‘‘in consultation with the Bureau’’ and 
inserting ‘‘in consultation with the Federal 
Trade Commission’’; 
(F) by striking ‘‘National Credit Union 
Administration Bureau’’ each place such term 
appears and inserting ‘‘National Credit Union 
Administration Board’’; 
(G) by striking ‘‘Bureau’’ each place such 
term appears in heading or text and inserting 
‘‘Agency’’; and 
(H) by striking ‘‘BUREAU’’ and inserting 
‘‘AGENCY’’ in the paragraph headings for— 
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366 
(i) section 122(d)(2) (15 U.S.C. 
1632(d)(2)); 
(ii) section 127(c)(5) (15 U.S.C. 
1637(c)(5)); 
(iii) section 127(r)(3) (15 U.S.C. 
1637(r)(3)); and 
(iv) section 127A(a)(14) (15 U.S.C. 
1637a(a)(14)). 
(27) TRUTH IN SAVINGS ACT.—The Truth in 
Savings Act (12 U.S.C. 4301 et seq.) is amended— 
(A) by amending paragraph (4) of section 
274 (12 U.S.C. 4313(4)) to read as follows: 
‘‘(4) AGENCY.—The term ‘Agency’ means the 
Consumer Law Enforcement Agency.’’; 
(B) by striking ‘‘National Credit Union 
Administration Bureau’’ each place such term 
appears and inserting ‘‘National Credit Union 
Administration Board’’; and 
(C) by striking ‘‘Bureau’’ each place such 
term appears and inserting ‘‘Agency’’. 
SEC. 712. AUTHORITY OF THE OFFICE OF INFORMATION 
AND REGULATORY AFFAIRS. 
Section 1022 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5512) is amended by adding at 
the end the following: 
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367 
‘‘(e) AUTHORITY OF THE OFFICE OF INFORMATION 
AND REGULATORY AFFAIRS.—The Office of Information 
and Regulatory Affairs shall have the same duties and au-
thorities with respect to the Consumer Law Enforcement 
Agency as the Office of Information and Regulatory Af-
fairs has with respect to any other agency that is not an 
independent regulatory agency (as such terms are defined, 
respectively, under section 3502 of title 44, United States 
Code).’’. 
SEC. 713. BRINGING THE AGENCY INTO THE REGULAR AP-
PROPRIATIONS PROCESS. 
Section 1017 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5497) is amended— 
(1) in subsection (a)— 
(A) by amending the heading of such sub-
section to read as follows: ‘‘BUDGET, FINAN-
CIAL MANAGEMENT, AND AUDIT.—’’; 
(B) by striking paragraphs (1), (2), and 
(3); 
(C) by redesignating paragraphs (4) and 
(5) as paragraphs (1) and (2), respectively; and 
(D) by striking subparagraphs (E) and (F) 
of paragraph (1), as so redesignated; 
(2) by striking subsections (b) and (c); 
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368 
(3) by redesignating subsections (d) and (e) as 
subsections (b) and (c), respectively; and 
(4) in subsection (c), as so redesignated— 
(A) by striking paragraphs (1), (2), and 
(3) and inserting the following: 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Agen-
cy for each of fiscal years 2017 and 2018 an amount 
equal to the aggregate amount of funds transferred 
by the Board of Governors to the Bureau of Con-
sumer Financial Protection during fiscal year 
2015.’’; and 
(B) by redesignating paragraph (4) as 
paragraph (2). 
SEC. 714. CONSUMER LAW ENFORCEMENT AGENCY INSPEC-
TOR GENERAL REFORM. 
(a) APPOINTMENT OF INSPECTOR GENERAL.—The 
Inspector General Act of 1978 (5 U.S.C. App.) is amend-
ed— 
(1) in section 8G— 
(A) in subsection (a)(2), by striking ‘‘and 
the Bureau of Consumer Financial Protection’’; 
(B) in subsection (c), by striking ‘‘For 
purposes of implementing this section’’ and all 
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369 
that follows through the end of the subsection; 
and 
(C) in subsection (g)(3), by striking ‘‘and 
the Bureau of Consumer Financial Protection’’; 
and 
(2) in section 12— 
(A) in paragraph (1), by inserting ‘‘the 
Consumer Law Enforcement Agency;’’ after 
‘‘the President of the Export-Import Bank;’’; 
and 
(B) in paragraph (2), by inserting ‘‘the 
Consumer Law Enforcement Agency,’’ after 
‘‘the Export-Import Bank,’’. 
(b) REQUIREMENTS FOR THE INSPECTOR GENERAL 
FOR THE CONSUMER LAW ENFORCEMENT AGENCY.— 
(1) ESTABLISHMENT.—Section 1011 of the 
Consumer Financial Protection Act of 2010 (12 
U.S.C. 5491), as amended by section 311, is further 
amended by adding at the end the following: 
‘‘(i) INSPECTOR GENERAL.—There is established the 
position of the Inspector General of the Agency.’’; and 
(2) HEARINGS.—Section 1016 of the Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5496) 
is amended by inserting after subsection (c) the fol-
lowing: 
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370 
‘‘(d) ADDITIONAL REQUIREMENT
FOR INSPECTOR 
GENERAL.—On a separate occasion from that described 
in subsection (a), the Inspector General of the Agency 
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 Rep-
resentatives at semi-annual hearings 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.).’’. 
(3) PARTICIPATION
IN
THE
COUNCIL
OF
IN-
SPECTORS GENERAL ON FINANCIAL OVERSIGHT.— 
Section 989E(a)(1) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act is amended by 
adding at the end the following: 
‘‘(J) The Consumer Law Enforcement 
Agency.’’. 
(4) DEADLINE FOR APPOINTMENT.—Not later 
than 60 days after the date of the enactment of this 
Act, the President shall appoint an Inspector Gen-
eral for the Consumer Law Enforcement Agency in 
accordance with section 3 of the Inspector General 
Act of 1978 (5 U.S.C. App.). 
(c) TRANSITION PERIOD.—The Inspector General of 
the Board of Governors of the Federal Reserve System 
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371 
and the Bureau of Consumer Financial Protection shall 
serve in that position until the confirmation of an Inspec-
tor General for the Consumer Law Enforcement Agency. 
At that time, the Inspector General of the Board of Gov-
ernors of the Federal Reserve System and the Bureau of 
Consumer Financial Protection shall become the Inspector 
General of the Board of Governors of the Federal Reserve 
System. 
SEC. 715. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 
AGENCY TO SEEK SANCTIONS BY FILING 
CIVIL ACTIONS; ADJUDICATIONS DEEMED AC-
TIONS. 
Section 1053 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5563) is amended by adding at 
the end the following: 
‘‘(f) PRIVATE PARTIES AUTHORIZED
TO COMPEL 
THE AGENCY TO SEEK SANCTIONS BY FILING CIVIL AC-
TIONS.— 
‘‘(1) TERMINATION OF ADMINISTRATIVE PRO-
CEEDING.—In the case of any person who is a party 
to a proceeding brought by the Agency under this 
section, to which chapter 5 of title 5, United States 
Code, applies, and against whom an order imposing 
a cease and desist order or a penalty may be issued 
at the conclusion of the proceeding, that person 
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372 
may, not later than 20 days after receiving notice of 
such proceeding, and at that person’s discretion, re-
quire the Agency to terminate the proceeding. 
‘‘(2) CIVIL ACTION AUTHORIZED.—If a person 
requires the Agency to terminate a proceeding pur-
suant to paragraph (1), the Agency may bring a civil 
action against that person for the same remedy that 
might be imposed. 
‘‘(g) ADJUDICATIONS DEEMED ACTIONS.—Any ad-
ministrative adjudication commenced under this section 
shall be deemed an ‘action’ for purposes of section 
1054(g).’’. 
SEC. 716. CIVIL INVESTIGATIVE DEMANDS TO BE AP-
PEALED TO COURTS. 
Section 1052 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5562) is amended— 
(1) in subsection (c)— 
(A) in paragraph (2), by inserting after 
‘‘shall state’’ the following: ‘‘with specificity’’; 
and 
(B) by adding at the end the following: 
‘‘(14) MEETING REQUIREMENT.—The recipient 
of a civil investigative demand shall meet and confer 
with an Agency investigator within 30 calendar days 
after receipt of the demand to discuss and attempt 
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373 
to resolve all issues regarding compliance with the 
civil investigative demand, unless the Agency grants 
an extension requested by such recipient.’’; 
(2) in subsection (f)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN
GENERAL.—Not later than 45 days 
after the service of any civil investigative demand 
upon any person under subsection (c), or at any 
time before the return date specified in the demand, 
whichever period is shorter, or within such period ex-
ceeding 45 days after service or in excess of such re-
turn date as may be prescribed in writing, subse-
quent to service, by any Agency investigator named 
in the demand, such person may file, in the district 
court of the United States for any judicial district 
in which such person resides, is found, or transacts 
business, a petition for an order modifying or setting 
aside the demand.’’; and 
(B) in paragraph (2), by striking ‘‘at the 
Bureau’’; and 
(3) in subsection (h)— 
(A) by striking ‘‘(1) IN GENERAL.—’’; and 
(B) by striking paragraph (2). 
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SEC. 717. AGENCY DUAL MANDATE AND ECONOMIC ANAL-
YSIS. 
(a) PURPOSE.—Section 1021(a) of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5511(a)) is 
amended by adding at the end the following: ‘‘In addition, 
the Director shall seek to implement and, where applica-
ble, enforce Federal consumer financial law consistently 
for the purpose of strengthening participation in markets 
by covered persons, without Government interference or 
subsidies, to increase competition and enhance consumer 
choice.’’. 
(b) OFFICE OF ECONOMIC ANALYSIS.— 
(1) IN GENERAL.—Section 1013 of the Con-
sumer Financial Protection Act of 2010 (12 U.S.C. 
5493) is amended by adding at the end the fol-
lowing: 
‘‘(h) OFFICE OF ECONOMIC ANALYSIS.— 
‘‘(1) ESTABLISHMENT.—The Director shall, not 
later than the end of the 60-day period beginning on 
the date of the enactment of this subsection, estab-
lish an Office of Economic Analysis. 
‘‘(2) DIRECT REPORTING.—The head of the Of-
fice of Economic Analysis shall report directly to the 
Director. 
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‘‘(3) REVIEW AND ASSESSMENT OF PROPOSED 
RULES AND REGULATIONS.—The Office of Economic 
Analysis shall— 
‘‘(A) review all proposed rules and regula-
tions of the Agency; 
‘‘(B) assess the impact of such rules and 
regulations on consumer choice, price, and ac-
cess to credit products; and 
‘‘(C) publish a report on such reviews and 
assessments in the Federal Register. 
‘‘(4) MEASURING EXISTING RULES AND REGU-
LATIONS.—The Office of Economic Analysis shall— 
‘‘(A) review each rule and regulation 
issued by the Commission after 1, 2, 6, and 11 
years; 
‘‘(B) measure the rule or regulation’s suc-
cess in solving the problem that the rule or reg-
ulation was intended to solve when issued; and 
‘‘(C) publish a report on such review and 
measurement in the Federal Register. 
‘‘(5) COST-BENEFIT ANALYSIS RELATED TO AD-
MINISTRATIVE
ENFORCEMENT
AND
CIVIL
AC-
TIONS.—The Office of Economic Analysis shall— 
‘‘(A) carry out a cost-benefit analysis of 
any proposed administrative enforcement ac-
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tion, civil lawsuit, or consent order of the Agen-
cy; and 
‘‘(B) assess the impact of such complaint, 
lawsuit, or order on consumer choice, price, and 
access to credit products.’’. 
(2) CONSIDERATION OF REVIEW AND ASSESS-
MENT; 
RULEMAKING
REQUIREMENTS.—Section 
1022(b) of the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5512(b)) is amended by adding 
at the end the following: 
‘‘(5) CONSIDERATION OF REVIEW AND ASSESS-
MENT BY THE OFFICE OF ECONOMIC ANALYSIS.— 
Before issuing any rule or regulation, the Director 
shall consider the review and assessment of such 
rule or regulation carried out by the Office of Eco-
nomic Analysis. 
‘‘(6) IDENTIFICATION
OF
PROBLEMS
AND 
METRICS FOR JUDGING SUCCESS.— 
‘‘(A) IN GENERAL.—The Director shall, in 
each proposed rulemaking of the Agency— 
‘‘(i) identify the problem that the par-
ticular rule or regulations is seeking to 
solve; and 
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‘‘(ii) specify the metrics by which the 
Agency will measure the success of the rule 
or regulation in solving such problem. 
‘‘(B) REQUIRED
METRICS.—The metrics 
specified under subparagraph (A)(ii) shall in-
clude a measurement of changes to consumer 
access to, and cost of, consumer financial prod-
ucts and services.’’. 
(3) CONSIDERATION OF COST-BENEFIT REVIEW 
RELATED
TO
ADMINISTRATIVE
ACTIONS.—The 
Dodd-Frank Wall Street Reform and Consumer Pro-
tection Act (12 U.S.C. 5301 et seq.) is amended— 
(A) in subtitle E of title X, by adding at 
the end the following: 
‘‘SEC. 1059. CONSIDERATION OF COST-BENEFIT ANALYSIS 
RELATED 
TO 
ADMINISTRATIVE 
ENFORCE-
MENT AND CIVIL ACTIONS. 
‘‘Before initiating any administrative enforcement ac-
tion or civil lawsuit or entering into a consent order, the 
Director shall consider the cost-benefit analysis of such 
action, lawsuit, or order carried out by the Office of Eco-
nomic Analysis.’’; and 
(B) in the table of contents under section 
1(b), by inserting after the item relating to sec-
tion 1058 the following: 
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‘‘Sec. 1059. Consideration of cost-benefit analysis related to administrative en-
forcement and civil actions.’’. 
(c) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY 
ANALYSES.—The Consumer Law Enforcement Agency 
may perform any of the analyses required by the amend-
ments made by this section in conjunction with, or as part 
of, any other agenda or analysis required by any other 
provision of law, if such other agenda or analysis satisfies 
the provisions of this section. 
SEC. 718. NO DEFERENCE TO AGENCY INTERPRETATION. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(1) in section 1022(b)(4)— 
(A) by striking ‘‘(A) IN GENERAL.—’’; and 
(B) by striking subparagraph (B); and 
(2) in section 1061(b)(5)(E)— 
(A) by striking ‘‘affords to the—’’ and all 
that follows through ‘‘(i) Federal Trade Com-
mission’’ and inserting ‘‘affords to the Federal 
Trade Commission’’; 
(B) by striking ‘‘; or’’ and inserting a pe-
riod; and 
(C) by striking clause (ii). 
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Subtitle B—Administrative 
Enhancements 
SEC. 721. ADVISORY OPINIONS. 
Section 1022(b) of the Consumer Financial Protec-
tion Act of 2010 (12 U.S.C. 5512(b)), as amended by sec-
tion 717, is further amended by adding at the end the 
following: 
‘‘(7) ADVISORY OPINIONS.— 
‘‘(A) ESTABLISHING PROCEDURES.— 
‘‘(i) IN GENERAL.—The Director shall 
establish a procedure and, as necessary, 
promulgate rules to provide written opin-
ions in response to inquiries concerning the 
conformance of specific conduct with Fed-
eral consumer financial law. In establishing 
the procedure, the Director shall consult 
with the prudential regulators and such 
other Federal departments and agencies as 
the Director determines appropriate, and 
obtain the views of all interested persons 
through a public notice and comment pe-
riod. 
‘‘(ii) SCOPE OF REQUEST.—A request 
for an opinion under this paragraph must 
relate to specific proposed or prospective 
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conduct by a covered person contemplating 
the proposed or prospective conduct. 
‘‘(iii) SUBMISSION.—A request for an 
opinion under this paragraph may be sub-
mitted to the Director either by or on be-
half of a covered person. 
‘‘(iv) 
RIGHT
TO
WITHDRAW
IN-
QUIRY.—Any inquiry under this paragraph 
may be withdrawn at any time prior to the 
Director issuing an opinion in response to 
such inquiry, and any opinion based on an 
inquiry that has been withdrawn shall have 
no force or effect. 
‘‘(B) ISSUANCE OF OPINIONS.— 
‘‘(i) 
IN
GENERAL.—The 
Director 
shall, within 90 days of receiving the re-
quest for an opinion under this paragraph, 
either— 
‘‘(I) issue an opinion stating 
whether the described conduct would 
violate Federal consumer financial 
law; 
‘‘(II) if permissible under clause 
(iii), deny the request; or 
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‘‘(III) explain why it is not fea-
sible to issue an opinion. 
‘‘(ii) 
EXTENSION.—Notwithstanding 
clause (i), if the Director determines that 
the Agency requires additional time to 
issue an opinion, the Director may make a 
single extension of the deadline of 90 days 
or less. 
‘‘(iii) DENIAL
OF
REQUESTS.—The 
Director shall not issue an opinion, and 
shall so inform the requestor, if the re-
quest for an opinion— 
‘‘(I) asks a general question of 
interpretation; 
‘‘(II) asks about a hypothetical 
situation; 
‘‘(III) asks about the conduct of 
someone other than the covered per-
son on whose behalf the request is 
made; 
‘‘(IV) asks about past conduct 
that the covered person on whose be-
half the request is made does not plan 
to continue in the future; or 
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382 
‘‘(V) fails to provide necessary 
supporting information requested by 
the Agency within a reasonable time 
established by the Agency. 
‘‘(iv) 
AMENDMENT
AND
REVOCA-
TION.—An advisory opinion issued under 
this paragraph may be amended or revoked 
at any time. 
‘‘(v) PUBLIC DISCLOSURE.—An opin-
ion rendered pursuant to this paragraph 
shall be placed in the Agency’s public 
record 90 days after the requesting party 
has received the advice, subject to any lim-
itations on public disclosure arising from 
statutory restrictions, Agency regulations, 
or the public interest. The Agency shall re-
dact any personal, confidential, or identi-
fying information about the covered person 
or any other persons mentioned in the ad-
visory opinion, unless the covered person 
consents to such disclosure. 
‘‘(vi) REPORT
TO
CONGRESS.—The 
Agency shall, concurrent with the semi-an-
nual 
report 
required 
under 
section 
1016(b), submit information regarding the 
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383 
number of requests for an advisory opinion 
received, the subject of each request, the 
number of requests denied pursuant to 
clause (iii), and the time needed to respond 
to each request. 
‘‘(C) RELIANCE ON OPINION.—Any person 
may rely on an opinion issued by the Director 
pursuant to this paragraph that has not been 
amended or withdrawn. No liability under Fed-
eral consumer financial law shall attach to con-
duct consistent with an advisory opinion that 
had not been amended or withdrawn at the time 
the conduct was undertaken. 
‘‘(D) CONFIDENTIALITY.—Any document 
or other material that is received by the Agency 
or any other Federal department or agency in 
connection with an inquiry under this para-
graph shall be exempt from disclosure under 
section 552 of title 5, United States Code (com-
monly referred to as the ‘Freedom of Informa-
tion Act’) and may not, except with the consent 
of the covered person making such inquiry, be 
made publicly available, regardless of whether 
the Director responds to such inquiry or the 
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384 
covered person withdraws such inquiry before 
receiving an opinion. 
‘‘(E) 
ASSISTANCE
FOR
SMALL
BUSI-
NESSES.— 
‘‘(i) IN GENERAL.—The Agency shall 
assist, to the maximum extent practicable, 
small businesses in preparing inquiries 
under this paragraph. 
‘‘(ii) SMALL
BUSINESS
DEFINED.— 
For purposes of this subparagraph, the 
term ‘small business’ has the meaning 
given the term ‘small business concern’ 
under section 3 of the Small Business Act 
(15 U.S.C. 632). 
‘‘(F) INQUIRY FEE.— 
‘‘(i) IN GENERAL.—The Director shall 
develop a system to charge a fee for each 
inquiry made under this paragraph in an 
amount sufficient, in the aggregate, to pay 
for the cost of carrying out this paragraph. 
‘‘(ii) NOTICE
AND
COMMENT.—Not 
later than 45 days after the date of the en-
actment of this paragraph, the Director 
shall publish a description of the fee sys-
tem described in clause (i) in the Federal 
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385 
Register and shall solicit comments from 
the public for a period of 60 days after 
publication. 
‘‘(iii) FINALIZATION.—The Director 
shall publish a final description of the fee 
system and implement such fee system not 
later than 30 days after the end of the 
public comment period described in clause 
(ii).’’. 
SEC. 722. REFORM OF CONSUMER FINANCIAL CIVIL PEN-
ALTY FUND. 
(a) SEGREGATED ACCOUNTS.—Section 1017(b) of 
the Consumer Financial Protection Act of 2010, as redes-
ignated by section 713, is amended by redesignating para-
graph (2) as paragraph (3), and by inserting after para-
graph (1) the following new paragraph: 
‘‘(2) SEGREGATED
ACCOUNTS
IN
CIVIL
PEN-
ALTY FUND.— 
‘‘(A) IN GENERAL.—The Agency shall es-
tablish and maintain a segregated account in 
the Civil Penalty Fund each time the Agency 
obtains a civil penalty against any person in 
any judicial or administrative action under Fed-
eral consumer financial laws. 
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‘‘(B) DEPOSITS
IN
SEGREGATED
AC-
COUNTS.—The Agency shall deposit each civil 
penalty collected into the segregated account es-
tablished for such penalty under subparagraph 
(A).’’. 
(b) PAYMENT TO VICTIMS.—Paragraph (3) of section 
1017(b) of such Act, as redesignated by subsection (a), 
is amended to read as follows: 
‘‘(3) PAYMENT TO VICTIMS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IDENTIFICATION OF CLASS.—Not 
later than 60 days after the date of deposit 
of amounts in a segregated account in the 
Civil Penalty Fund, the Agency shall iden-
tify the class of victims of the violation of 
Federal consumer financial laws for which 
such amounts were collected and deposited 
under paragraph (2). 
‘‘(ii) PAYMENTS.—The Agency, within 
2 years after the date on which such class 
of victims is identified, shall locate and 
make payments from such amounts to each 
victim. 
‘‘(B) FUNDS DEPOSITED IN TREASURY.— 
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‘‘(i) IN GENERAL.—The Agency shall 
deposit into the general fund of the Treas-
ury any amounts remaining in a seg-
regated account in the Civil Penalty Fund 
at the end of the 2-year period for pay-
ments to victims under subparagraph (A). 
‘‘(ii) IMPOSSIBLE
OR
IMPRACTICAL 
PAYMENTS.—If the Agency determines be-
fore the end of the 2-year period for pay-
ments to victims under subparagraph (A) 
that such victims cannot be located or pay-
ments to such victims are otherwise not 
practicable, the Agency shall deposit into 
the general fund of the Treasury the 
amounts in the segregated account in the 
Civil Penalty Fund.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to civil penalties 
collected after the date of enactment of this Act. 
(2) AMOUNTS IN CONSUMER FINANCIAL CIVIL 
PENALTY FUND ON DATE OF ENACTMENT.—With 
respect to amounts in the Consumer Financial Civil 
Penalty Fund on the date of enactment of this Act 
that were not allocated for consumer education and 
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388 
financial literacy programs on or before September 
30, 2015, the Consumer Law Enforcement Agency 
shall separate such amounts into segregated ac-
counts in accordance with, and for purposes of, sec-
tion 1017(d) of the Consumer Financial Protection 
Act of 2010, as amended by this section. The date 
of deposit of such amounts shall be deemed to be the 
date of enactment of this Act. 
SEC. 723. AGENCY PAY FAIRNESS. 
(a) IN GENERAL.—Section 1013(a)(2) of the Con-
sumer Financial Protection Act of 2010 (12 U.S.C. 
5493(a)(2)) is amended to read as follows: 
‘‘(2) COMPENSATION.—The rates of basic pay 
for all employees of the Agency shall be set and ad-
justed by the Director in accordance with the Gen-
eral Schedule set forth in section 5332 of title 5, 
United States Code.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to service by an employee of the 
Consumer Law Enforcement Agency following the 90-day 
period beginning on the date of enactment of this Act. 
SEC. 724. ELIMINATION OF MARKET MONITORING FUNC-
TIONS. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
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389 
(1) in section 1021(c)— 
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (3), (4), and (5), respec-
tively; 
(2) in section 1022, by striking subsection (c); 
and 
(3) in section 1026(b), by striking ‘‘, and to as-
sess and detect risks to consumers and consumer fi-
nancial markets’’. 
SEC. 725. REFORMS TO MANDATORY FUNCTIONAL UNITS. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(1) in section 1013— 
(A) in subsection (b)— 
(i) in paragraph (1), by striking 
‘‘shall establish’’ and inserting ‘‘may estab-
lish’’; 
(ii) in paragraph (2), by striking 
‘‘shall establish’’ and inserting ‘‘may estab-
lish’’; and 
(iii) paragraph (3)(D)— 
(I) by striking ‘‘To facilitate 
preparation of the reports required 
under subparagraph (C), supervision 
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390 
and enforcement activities, and moni-
toring of the market for consumer fi-
nancial products and services, the’’ 
and inserting ‘‘The’’; and 
(II) by adding at the end the fol-
lowing: ‘‘Information collected under 
this paragraph may not be made pub-
licly available.’’; 
(B) in subsection (c)— 
(i) in paragraph (1), by striking 
‘‘shall establish’’ and inserting ‘‘may estab-
lish’’; and 
(ii) in paragraph (3), by striking 
‘‘There is established the’’ and inserting 
‘‘At any time when the Office of Fair 
Lending and Equal Opportunity exists 
within the Agency, there shall be a’’; 
(C) in subsection (d)— 
(i) in paragraph (1), by striking 
‘‘shall establish’’ and inserting ‘‘may estab-
lish’’; 
(ii) in paragraph (3)— 
(I) in subparagraph (A), by in-
serting ‘‘, if such Office exists within 
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391 
the Agency,’’ after ‘‘Community Af-
fairs Office’’; and 
(II) in subparagraph (B), by 
striking ‘‘established by the Director’’ 
and inserting ‘‘, if established by the 
Director,’’; and 
(iii) in paragraph (4), by striking 
‘‘Not later than 24 months after the des-
ignated transfer date, and annually there-
after,’’ and inserting ‘‘Annually, at any 
time when the Office of Financial Edu-
cation exists within the Agency,’’; 
(D) in subsection (e)(1), by striking ‘‘shall 
establish’’ and inserting ‘‘may establish’’; 
(E) by striking subsection (f); 
(F) by redesignating subsections (g) and 
(h) as subsections (f) and (g), respectively; and 
(G) in subsection (f), as so redesignated— 
(i) in paragraph (1)— 
(I) by striking ‘‘Before the end of 
the 180-day period beginning on the 
designated transfer date, the Director 
shall’’ and inserting ‘‘The Director 
may’’; and 
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393 
(aa) by striking clause (i); 
and 
(bb) 
by 
redesignating 
clauses (ii) and (iii) as clauses (i) 
and (ii), respectively; 
(2) in section 1029(e), by inserting after ‘‘Af-
fairs,’’ the following: ‘‘if established under this 
title,’’; and 
(3) in section 1035— 
(A) in subsection (a), by striking ‘‘shall 
designate’’ and inserting ‘‘may designate’’; and 
(B) in subsection (b), by striking ‘‘The 
Secretary’’ and inserting ‘‘If the Secretary des-
ignates the Ombudsman under subsection (a), 
the Secretary’’. 
SEC. 726. REPEAL OF MANDATORY ADVISORY BOARD. 
(a) IN GENERAL.—Section 1014 of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5494) is re-
pealed. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended by striking the item 
relation to section 1014. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed as limiting the authority of the Di-
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394 
rector of the Consumer Law Enforcement Agency to es-
tablish advisory committees pursuant to the Federal Advi-
sory Committee Act. 
SEC. 727. ELIMINATION OF SUPERVISION AUTHORITY. 
(a) IN GENERAL.—The Consumer Financial Protec-
tion Act of 2010 (12 U.S.C. 5481 et seq.) is amended— 
(1) in section 1002(15)(B)(ii)(I), by striking 
‘‘examination or’’; 
(2) in section 1013(a)(1)(B), by striking ‘‘com-
pliance examiners, compliance supervision analysts,’’; 
(3) in section 1016(c)— 
(A) in paragraph (5), by striking ‘‘super-
visory and’’; and 
(B) in paragraph (6), by striking ‘‘orders, 
and supervisory actions’’ and inserting ‘‘and or-
ders’’; 
(4) in section 1024— 
(A) in the heading, by striking ‘‘SUPER-
VISION
OF’’ and inserting ‘‘AUTHORITY 
WITH RESPECT TO CERTAIN’’; 
(B) in subsection (a)— 
(i) in paragraph (1)(B), by striking 
‘‘as defined by rule in accordance with 
paragraph (2)’’ and inserting ‘‘as of the 
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395 
date of the enactment of the Financial 
CHOICE Act of 2017’’; 
(ii) by striking paragraph (2); 
(iii) by redesignating paragraph (3) as 
paragraph (2); and 
(iv) in subparagraph (A) of paragraph 
(2), as so redesignated, by striking 
‘‘1025(a) or’’; 
(C) by striking subsection (b); 
(D) by redesignating subsections (c), (d), 
(e), and (f) as subsections (b), (c), (d), and (e), 
respectively; 
(E) in subsection (c), as so redesignated— 
(i) in the heading, by striking ‘‘AND 
EXAMINATION AUTHORITY’’; and 
(ii) by striking ‘‘, conduct examina-
tions,’’ each place such term appears; 
(F) in subsection (d), as so redesignated— 
(i) by inserting ‘‘rulemaking and en-
forcement, but not supervisory,’’ before 
‘‘authority of the Bureau’’; and 
(ii) by striking ‘‘conducting any exam-
ination or requiring any report from a 
service provider subject to this subsection’’ 
and inserting ‘‘carrying out any authority 
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396 
pursuant to this subsection with respect to 
a service provider’’; 
(5) by striking section 1025; 
(6) in section 1026— 
(A) by amending subsection (a) to read as 
follows: 
‘‘(a) SCOPE OF COVERAGE.—This section shall apply 
to any covered person that is an insured depository insti-
tution or an insured credit union.’’; 
(B) in subsection (b)(3), by striking ‘‘re-
port of examination or related’’; 
(C) by striking subsection (c); 
(D) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively; and 
(E) in subsection (d), as so redesignated— 
(i) by striking ‘‘section 1025’’ and in-
serting ‘‘this section’’; and 
(ii) by striking ‘‘When conducting any 
examination or requiring any report from a 
service provider subject to this subsection’’ 
and inserting ‘‘In carrying out any author-
ity pursuant to this subsection with respect 
to a service provider’’; 
(7) in section 1027— 
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397 
(A) by striking ‘‘supervisory,’’ each place 
such term appears; 
(B) in subsection (e)(1), by striking ‘‘su-
pervisory or’’; and 
(C) in subsection (p), by striking ‘‘section 
1024(c)(1)’’ 
and 
inserting 
‘‘section 
1024(b)(1)’’; 
(8) in section 1034— 
(A) by striking subsections (b) and (c); 
and 
(B) by redesignating subsection (d) as sub-
section (b); 
(9) in section 1053— 
(A) in subsection (b)(1)(A), by striking 
‘‘sections 1024, 1025, and 1026’’ and inserting 
‘‘sections 1024 and 1026’’; and 
(B) in subsection (c)(3)(B)(ii)(II), by 
striking ‘‘, by examination or otherwise,’’; 
(10) in section 1054(a), by striking ‘‘sections 
1024, 1025, and 1026’’ and inserting ‘‘sections 
1024 and 1026’’; 
(11) in section 1061— 
(A) in subsection (a)(1)— 
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398 
(i) in subparagraph (A), by striking ‘‘; 
and’’ at the end and inserting a period; 
and 
(ii) by striking subparagraph (B); and 
(B) in subsection (c)— 
(i) by amending paragraph (1) to read 
as follows: 
‘‘(1) EXAMINATION.—A transferor agency that 
is a prudential regulator shall have exclusive author-
ity (relative to the Bureau) to require reports from 
and conduct examinations for compliance with Fed-
eral consumer financial laws with respect to a person 
described in section 1026(a).’’; 
(ii) in paragraph (2)— 
(I) by striking subparagraph (A); 
and 
(II) by redesignating subpara-
graphs (B) and (C) as subparagraphs 
(A) and (B), respectively; 
(12) in section 1063, by striking ‘‘sections 
1024, 1025, and 1026’’ each place such term ap-
pears and inserting ‘‘sections 1024 and 1026’’; and 
(13) in section 1067, by striking subsection (e). 
(b) HOME MORTGAGE DISCLOSURE ACT OF 1975.— 
Section 305(d) of the Home Mortgage Disclosure Act of 
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399 
1975 (12 U.S.C. 2804(d)) is amended by striking ‘‘exam-
ine and’’. 
(c) OMNIBUS APPROPRIATIONS ACT, 2009.—Section 
626 of the Omnibus Appropriations Act, 2009 (15 U.S.C. 
1638 note) is repealed. 
(d) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended— 
(1) in the item relating to section 1024, by 
striking ‘‘SUPERVISION OF’’ and inserting ‘‘AU-
THORITY WITH RESPECT TO CERTAIN’’; and 
(2) by striking the item relating to section 
1025. 
SEC. 728. TRANSFER OF OLD OTS BUILDING FROM OCC TO 
GSA. 
Not later than 180 days after the date of enactment 
of this Act, the Comptroller of the Currency shall transfer 
administrative jurisdiction over the Federal property lo-
cated at 1700 G Street, Northwest, in the District of Co-
lumbia to the Administrator of General Services. 
SEC. 729. LIMITATION ON AGENCY AUTHORITY. 
Section 1027 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5517) is amended— 
(1) in subsection (g)(3)(A), by striking ‘‘may 
not exercise any rulemaking or enforcement author-
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400 
ity’’ and inserting ‘‘may not exercise any rule-
making, enforcement, or other authority’’; 
(2) in subsection (i)(1), by striking ‘‘shall have 
no authority to exercise any power to enforce this 
title’’ and inserting ‘‘may not exercise any rule-
making, enforcement, or other authority’’; and 
(3) in subsection (j)(1), by striking ‘‘shall have 
no authority to exercise any power to enforce this 
title’’ and inserting ‘‘may not exercise any rule-
making, enforcement, or other authority’’. 
Subtitle C—Policy Enhancements 
SEC. 731. CONSUMER RIGHT TO FINANCIAL PRIVACY. 
(a) REQUIREMENT OF THE AGENCY TO OBTAIN PER-
MISSION BEFORE COLLECTING NONPUBLIC PERSONAL 
INFORMATION.—Section 1022 of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5512), as amended by 
section 724(3), is further amended by inserting after sub-
section (b) the following: 
‘‘(c) CONSUMER PRIVACY.— 
‘‘(1) IN GENERAL.—The Agency may not re-
quest, obtain, access, collect, use, retain, or disclose 
any nonpublic personal information about a con-
sumer unless— 
‘‘(A) the Agency clearly and conspicuously 
discloses to the consumer, in writing or in an 
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401 
electronic form, what information will be re-
quested, obtained, accessed, collected, used, re-
tained, or disclosed; and 
‘‘(B) before such information is requested, 
obtained, accessed, collected, used, retained, or 
disclosed, the consumer informs the Agency 
that such information may be requested, ob-
tained, accessed, collected, used, retained, or 
disclosed. 
‘‘(2) APPLICATION OF REQUIREMENT TO CON-
TRACTORS OF THE AGENCY.—Paragraph (1) shall 
apply to any person directed or engaged by the 
Agency to collect information to the extent such in-
formation is being collected on behalf of the Agency. 
‘‘(3) DEFINITION OF NONPUBLIC PERSONAL IN-
FORMATION.—In this subsection, the term ‘non-
public personal information’ has the meaning given 
the term in section 509 of the Gramm-Leach-Bliley 
Act (15 U.S.C. 6809).’’. 
(b) REMOVAL
OF EXEMPTION
FOR
THE AGENCY 
FROM THE RIGHT TO FINANCIAL PRIVACY ACT.—Section 
1113 of the Right to Financial Privacy Act of 1978 (12 
U.S.C. 3413) is amended by striking subsection (r). 
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SEC. 732. REPEAL OF COUNCIL AUTHORITY TO SET ASIDE 
AGENCY RULES AND REQUIREMENT OF SAFE-
TY AND SOUNDNESS CONSIDERATIONS WHEN 
ISSUING RULES. 
(a) REPEAL OF AUTHORITY.— 
(1) IN GENERAL.—Section 1023 of the Con-
sumer Financial Protection Act of 2010 (12 U.S.C. 
5513) is hereby repealed. 
(2) 
CONFORMING
AMENDMENT.—Section 
1022(b)(2)(C) of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5512(b)(2)(C)) is amended 
by striking ‘‘, except that nothing in this clause shall 
be construed as altering or limiting the procedures 
under section 1023 that may apply to any rule pre-
scribed by the Bureau’’. 
(3) CLERICAL AMENDMENT.—The table of con-
tents under section 1(b) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is 
amended by striking the item relating to section 
1023. 
(b) SAFETY
AND
SOUNDNESS
CHECK.—Section 
1022(b)(2)(A) of the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5512(b)(2)(A)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by adding ‘‘and’’ at the end; 
and 
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403 
(3) by adding at the end the following: 
‘‘(iii) the impact of such rule on the 
financial safety or soundness of an insured 
depository institution;’’. 
SEC. 733. REMOVAL OF AUTHORITY TO REGULATE SMALL- 
DOLLAR CREDIT. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(1) in section 1024(a)(1)— 
(A) in subparagraph (C), by adding ‘‘or’’ 
at the end; 
(B) in subparagraph (D), by striking ‘‘; 
or’’ and inserting a period; and 
(C) by striking subparagraph (E); and 
(2) in section 1027, by adding at the end the 
following: 
‘‘(t) NO AUTHORITY TO REGULATE SMALL-DOLLAR 
CREDIT.—The Agency may not exercise any rulemaking, 
enforcement, or other authority with respect to payday 
loans, vehicle title loans, or other similar loans.’’. 
SEC. 734. REFORMING INDIRECT AUTO FINANCING GUID-
ANCE. 
(a) NULLIFICATION
OF
AUTO
LENDING
GUID-
ANCE.—Bulletin 2013–02 of the Bureau of Consumer Fi-
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404 
nancial Protection (published March 21, 2013) shall have 
no force or effect. 
(b) GUIDANCE REQUIREMENTS.—Section 1022(b) of 
the Consumer Financial Protection Act of 2010 (12 
U.S.C. 5512(b)), as amended by section 721, is further 
amended by adding at the end the following: 
‘‘(8) GUIDANCE
ON
INDIRECT
AUTO
FINANC-
ING.—In proposing and issuing guidance primarily 
related to indirect auto financing, the Agency 
shall— 
‘‘(A) provide for a public notice and com-
ment period before issuing the guidance in final 
form; 
‘‘(B) make available to the public, includ-
ing on the website of the Agency, all studies, 
data, methodologies, analyses, and other infor-
mation relied on by the Agency in preparing 
such guidance; 
‘‘(C) redact any information that is exempt 
from disclosure under paragraph (3), (4), (6), 
(7), or (8) of section 552(b) of title 5, United 
States Code; 
‘‘(D) consult with the Board of Governors 
of the Federal Reserve System, the Federal 
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405 
Trade Commission, and the Department of Jus-
tice; and 
‘‘(E) conduct a study on the costs and im-
pacts of such guidance to consumers and 
women-owned, minority-owned, veteran-owned, 
and small businesses, including consumers and 
small businesses in rural areas.’’. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to apply to guidance issued by the 
Consumer Law Enforcement Agency that is not primarily 
related to indirect auto financing. 
SEC. 735. PROHIBITION OF GOVERNMENT PRICE CON-
TROLS FOR PAYMENT CARD TRANSACTIONS. 
(a) IN GENERAL.—Section 1075 of the Consumer Fi-
nancial Protection Act of 2010 is hereby repealed and the 
provisions of law amended by such section are revived or 
restored as if such section had not been enacted. 
(b) CLERICAL AMENDMENT.—The table of contents 
under section 1(b) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act is amended by striking the 
item relating to section 1075. 
SEC. 736. REMOVAL OF AGENCY UDAAP AUTHORITY. 
(a) IN GENERAL.—The Consumer Financial Protec-
tion Act of 2010 (12 U.S.C. 5481 et seq.) is amended— 
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406 
(1) in section 1021(b)(2), by striking ‘‘unfair, 
deceptive, or abusive acts and practices and’’; 
(2) by striking section 1031; 
(3) in section 1036(a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘provider’’ and all that 
follows through ‘‘to offer’’ and inserting 
‘‘provider to offer’’; 
(ii) by striking subparagraph (B); and 
(B) in paragraph (2)(C), by striking ‘‘; or’’ 
at the end and inserting a period; and 
(C) by striking paragraph (3); and 
(4) in section 1061(b)(5)— 
(A) in subparagraph (B), by striking 
clause (ii); 
(B) by striking subparagraph (D); and 
(C) by redesignating subparagraph (E) (as 
amended by section 718(2)) as subparagraph 
(D); and 
(5) in section 1076(b)(2), by striking ‘‘deter-
mine—’’ and all that follows through ‘‘(B) provide 
for’’ and inserting ‘‘determine, provide for’’. 
(b) TELEMARKETING AND CONSUMER FRAUD AND 
ABUSE PREVENTION ACT.—Section 3(c) of the Tele-
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407 
marketing and Consumer Fraud and Abuse Prevention 
Act (15 U.S.C. 6102) is amended— 
(1) in paragraph (1), by striking ‘‘; and’’ at the 
end and inserting a period; 
(2) by striking paragraph (2); and 
(3) by striking ‘‘subsection (a)—’’ and all that 
follows through ‘‘(1) shall’’ and inserting ‘‘sub-
section (a) shall’’. 
(c) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended by striking the item 
relating to section 1031. 
SEC. 737. PRESERVATION OF UDAP AUTHORITY FOR FED-
ERAL BANKING REGULATORS. 
(a) IN GENERAL.—Section 18(f) of the Federal 
Trade Commission Act (15 U.S.C. 57a(f)) is amended to 
read as follows: 
‘‘(f) UNFAIR OR DECEPTIVE ACTS OR PRACTICES BY 
DEPOSITORY INSTITUTIONS.— 
‘‘(1) IN GENERAL.—In order to prevent unfair 
or deceptive acts or practices in or affecting com-
merce (including acts or practices which are unfair 
or deceptive to consumers) by depository institu-
tions, each Federal banking regulator shall prescribe 
regulations to carry out the purposes of this section, 
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408 
including regulations defining with specificity such 
unfair or deceptive acts or practices, and containing 
requirements prescribed for the purpose of pre-
venting such acts or practices. 
‘‘(2) PROMULGATING SUBSTANTIALLY SIMILAR 
REGULATIONS.—Whenever the Commission pre-
scribes a rule under subsection (a)(1)(B), then with-
in 60 days after such rule takes effect each Federal 
banking regulator shall promulgate substantially 
similar regulations prohibiting acts or practices of 
depository institutions which are substantially simi-
lar to those prohibited by rules of the Commission 
and which impose substantially similar requirements, 
unless— 
‘‘(A) the Federal banking regulator finds 
that such acts or practices of depository institu-
tions are not unfair or deceptive; or 
‘‘(B) the Board of Governors of the Fed-
eral Reserve System finds that implementation 
of similar regulations with respect to depository 
institutions would seriously conflict with essen-
tial monetary and payments systems policies of 
such Board, and publishes any such finding, 
and the reasons therefor, in the Federal Reg-
ister. 
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409 
‘‘(3) ENFORCEMENT.— 
‘‘(A) IN GENERAL.—Compliance with regu-
lations prescribed under this subsection shall be 
enforced— 
‘‘(i) under section 8 of the Federal 
Deposit Insurance Act, with respect to a 
depository institution other than a Federal 
credit union; and 
‘‘(ii) under sections 120 and 206 of 
the Federal Credit Union Act, with respect 
to a Federal credit union. 
‘‘(B) DEEMING
OF
VIOLATION.—For the 
purpose of the exercise by a Federal banking 
regulator of the regulator’s powers under any 
Act referred to in subparagraph (A), a violation 
of any regulation prescribed under this sub-
section shall be deemed to be a violation of a 
requirement imposed under that Act. 
‘‘(C) ENFORCEMENT THROUGH ANY EXIST-
ING
AUTHORITY.—In addition to its powers 
under any provision of law specifically referred 
to in subparagraph (A), each Federal banking 
regulator may exercise, for the purpose of en-
forcing compliance with any regulation pre-
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410 
scribed under this subsection, any other author-
ity conferred on the regulator by law. 
‘‘(4) RULE OF CONSTRUCTION.—The authority 
of the Board of Governors of the Federal Reserve 
System to issue regulations under this subsection 
does not impair the authority of any other Federal 
banking regulator to make rules respecting the regu-
lator’s own procedures in enforcing compliance with 
regulations prescribed under this subsection. 
‘‘(5) REPORT
TO
CONGRESS.—Each Federal 
banking regulator exercising authority under this 
subsection shall transmit to the Congress each year 
a detailed report on its activities under this sub-
section during the preceding calendar year. 
‘‘(6) DEFINITIONS.—For purposes of this Act: 
‘‘(A) BANK.—The term ‘bank’ means— 
‘‘(i) national banks and Federal 
branches and Federal agencies of foreign 
banks; 
‘‘(ii) member banks of the Federal 
Reserve System (other than national 
banks), branches and agencies of foreign 
banks (other than Federal branches, Fed-
eral agencies, and insured State branches 
of foreign banks), commercial lending com-
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411 
panies owned or controlled by foreign 
banks, and organizations operating under 
section 25 or 25A of the Federal Reserve 
Act; and 
‘‘(iii) banks insured by the Federal 
Deposit Insurance Corporation (other than 
banks referred to in clause (i) or (ii) and 
insured State branches of foreign banks. 
‘‘(B) 
DEPOSITORY
INSTITUTION.—The 
term ‘depository institution’ means a bank, a 
savings and loan institution, or a Federal credit 
union. 
‘‘(C) FEDERAL
BANKING
REGULATOR.— 
The term ‘Federal banking regulator’— 
‘‘(i) has the meaning given the term 
‘appropriate 
Federal 
banking 
agency’ 
under section 3 of the Federal Deposit In-
surance Act; and 
‘‘(ii) means the National Credit Union 
Administration, in the case of a Federal 
credit union. 
‘‘(D) FEDERAL CREDIT UNION.—The term 
‘Federal credit union’ has the same meaning as 
in section 101 of the Federal Credit Union Act. 
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412 
‘‘(E) SAVINGS AND LOAN INSTITUTION.— 
The term ‘savings and loan institution’ has the 
same meaning as in section 3 of the Federal 
Deposit Insurance Act. 
‘‘(F) OTHER TERMS.—The terms used in 
this paragraph that are not defined in this Act 
or otherwise defined in section 3(s) of the Fed-
eral Deposit Insurance Act shall have the mean-
ing given to them in section 1(b) of the Inter-
national Banking Act of 1978.’’. 
(b) 
CONFORMING
AMENDMENTS.—The 
Federal 
Trade Commission Act (15 U.S.C. 41 et seq.) is amend-
ed— 
(1) in section 6(j)(6), by striking ‘‘section 
18(f)(3) (15 U.S.C. 57a(f)(3)), a Federal credit 
union described in section 18(f)(4) (15 U.S.C. 
57a(f)(4))’’ and inserting ‘‘section 18(f), a Federal 
credit union described in section 18(f)’’; 
(2) in section 21(b)(6)(C), by striking ‘‘section 
18(f)(3) of the Federal Trade Commission Act (15 
U.S.C. 57a(f)(3)), or a Federal credit union de-
scribed in section 18(f)(4) of the Federal Trade 
Commission Act (15 U.S.C. 57a(f)(4))’’ and insert-
ing ‘‘18(f), or a Federal credit union described in 
section 18(f)’’; 
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413 
(3) by striking ‘‘section 18(f)(2)’’ each place 
such term appears and inserting ‘‘section 18(f)’’; 
(4) by striking ‘‘section 18(f)(3)’’ each place 
such term appears and inserting ‘‘section 18(f)’’; 
and 
(5) by striking ‘‘section 18(f)(4)’’ each place 
such term appears and inserting ‘‘section 18(f)’’. 
SEC. 738. REPEAL OF AUTHORITY TO RESTRICT ARBITRA-
TION. 
(a) IN GENERAL.—Section 1028 of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5518) is hereby 
repealed. 
(b) CLERICAL AMENDMENT.—The table of contents 
under section 1(b) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act is amended by striking the 
item relating to section 1028. 
TITLE VIII—CAPITAL MARKETS 
IMPROVEMENTS 
Subtitle A—SEC Reform, 
Restructuring, and Accountability 
SEC. 801. AUTHORIZATION OF APPROPRIATIONS. 
Section 35 of the Securities Exchange Act of 1934 
(15 U.S.C. 78kk) is amended by striking paragraphs (1) 
through (5) and inserting the following: 
‘‘(1) for fiscal year 2017, $1,555,000,000; 
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414 
‘‘(2) for fiscal year 2018, $1,605,000,000; 
‘‘(3) for fiscal year 2019, $1,655,000,000; 
‘‘(4) for fiscal year 2020, $1,705,000,000; 
‘‘(5) for fiscal year 2021, $1,755,000,000; and 
‘‘(6) for fiscal year 2022, $1,805,000,000.’’. 
SEC. 802. REPORT ON UNOBLIGATED APPROPRIATIONS. 
Section 23 of the Securities Exchange Act of 1934 
(15 U.S.C. 78w) is amended by adding at the end the fol-
lowing: 
‘‘(e) REPORT ON UNOBLIGATED APPROPRIATIONS.— 
If, at the end of any fiscal year, there remain unobligated 
any funds that were appropriated to the Commission for 
such fiscal year, the Commission shall, not later than 30 
days after the last day of such fiscal year, submit to the 
Committee on Financial Services and the Committee on 
Appropriations of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs and 
the Committee on Appropriations of the Senate a report 
stating the amount of such unobligated funds. If there is 
any material change in the amount stated in the report, 
the Commission shall, not later than 7 days after deter-
mining the amount of the change, submit to such commit-
tees a supplementary report stating the amount of and 
reason for the change.’’. 
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415 
SEC. 803. SEC RESERVE FUND ABOLISHED. 
Section 4 of the Securities Exchange Act of 1934 (15 
U.S.C. 78d) is amended by striking subsection (i). 
SEC. 804. FEES TO OFFSET APPROPRIATIONS. 
(a) SECTION 31 OF THE SECURITIES EXCHANGE ACT 
OF 1934.—Section 31 of the Securities Exchange Act of 
1934 (15 U.S.C. 78ee) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) COLLECTION.—The Commission shall, in ac-
cordance with this section, collect transaction fees and as-
sessments.’’; 
(2) in subsection (i)— 
(A) in paragraph (1)(A), by inserting ‘‘ex-
cept as provided in paragraph (2),’’ before 
‘‘shall’’; and 
(B) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) GENERAL REVENUE.—Any fees collected 
for a fiscal year pursuant to this section, sections 
13(e) and 14(g) of this title, and section 6(b) of the 
Securities Act of 1933 in excess of the amount pro-
vided in appropriation Acts for collection for such 
fiscal year pursuant to such sections shall be depos-
ited and credited as general revenue of the Treas-
ury.’’; 
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416 
(3) in subsection (j)— 
(A) by striking ‘‘the regular appropriation 
to the Commission by Congress for such fiscal 
year’’ each place it appears and inserting ‘‘the 
target offsetting collection amount for such fis-
cal year’’; and 
(B) in paragraph (2), by striking ‘‘sub-
section (l)’’ and inserting ‘‘subsection (l)(2)’’; 
and 
(4) by striking subsection (l) and inserting the 
following: 
‘‘(l) DEFINITIONS.—For purposes of this section: 
‘‘(1) 
TARGET
OFFSETTING
COLLECTION 
AMOUNT.—The target offsetting collection amount 
for a fiscal year is— 
‘‘(A) for fiscal year 2017, $1,400,000,000; 
and 
‘‘(B) for each succeeding fiscal year, the 
target offsetting collection amount for the prior 
fiscal year, adjusted by the rate of inflation. 
‘‘(2) BASELINE ESTIMATE OF THE AGGREGATE 
DOLLAR AMOUNT OF SALES.—The baseline estimate 
of the aggregate dollar amount of sales for any fiscal 
year is the baseline estimate of the aggregate dollar 
amount of sales of securities (other than bonds, de-
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bentures, other evidences of indebtedness, security 
futures products, and options on securities indexes 
(excluding a narrow-based security index)) to be 
transacted on each national securities exchange and 
by or through any member of each national securi-
ties association (otherwise than on a national securi-
ties exchange) during such fiscal year as determined 
by the Commission, after consultation with the Con-
gressional Budget Office and the Office of Manage-
ment and Budget, using the methodology required 
for making projections pursuant to section 257 of 
the Balanced Budget and Emergency Deficit Control 
Act of 1985.’’. 
(b) SECTION 6(b) OF
THE SECURITIES ACT
OF 
1933.—Section 6(b) of the Securities Act of 1933 (15 
U.S.C. 77f(b)) is amended— 
(1) by striking ‘‘target fee collection amount’’ 
each place it appears and inserting ‘‘target offsetting 
collection amount’’; 
(2) in paragraph (4), by striking the last sen-
tence and inserting the following: ‘‘Subject to para-
graphs (6)(B) and (7), an adjusted rate prescribed 
under paragraph (2) shall take effect on the later 
of— 
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418 
‘‘(A) the first day of the fiscal year to 
which such rate applies; or 
‘‘(B) five days after the date on which a 
regular appropriation to the Commission for 
such fiscal year is enacted.’’; 
(3) in paragraph (5), by inserting ‘‘of the Secu-
rities Exchange Act of 1934’’ after ‘‘sections 13(e) 
and 14(g)’’; 
(4) by redesignating paragraph (6) as para-
graph (8); 
(5) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) OFFSETTING
COLLECTIONS.—Fees col-
lected pursuant to this subsection for any fiscal 
year— 
‘‘(A) except as provided in section 31(i)(2) 
of the Securities Exchange Act of 1934, shall 
be deposited and credited as offsetting collec-
tions to the account providing appropriations to 
the Commission; and 
‘‘(B) except as provided in paragraph (7), 
shall not be collected for any fiscal year except 
to the extent provided in advance in appropria-
tion Acts. 
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419 
‘‘(7) LAPSE
OF
APPROPRIATION.—If on the 
first day of a fiscal year a regular appropriation to 
the Commission has not been enacted, the Commis-
sion shall continue to collect fees (as offsetting col-
lections) under this subsection at the rate in effect 
during the preceding fiscal year, until 5 days after 
the date such a regular appropriation is enacted.’’; 
and 
(6) in subparagraph (A) of paragraph (8) (as 
so redesignated)— 
(A) by striking the subparagraph heading 
and inserting ‘‘TARGET OFFSETTING COLLEC-
TION AMOUNT.—’’; and 
(B) in the heading of the right column of 
the table, by striking ‘‘fee’’ and inserting ‘‘off-
setting’’. 
(c) SECTION 13(e) OF THE SECURITIES EXCHANGE 
ACT OF 1934.—Section 13(e) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78m(e)) is amended— 
(1) by striking paragraph (5) and inserting the 
following: 
‘‘(5) OFFSETTING
COLLECTIONS.—Fees col-
lected pursuant to this subsection for any fiscal 
year— 
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420 
‘‘(A) except as provided in section 31(i)(2), 
shall be deposited and credited as offsetting col-
lections to the account providing appropriations 
to the Commission; and 
‘‘(B) except as provided in paragraph (8), 
shall not be collected for any fiscal year except 
to the extent provided in advance in appropria-
tions Acts.’’; and 
(2) by adding at the end the following: 
‘‘(8) LAPSE
OF
APPROPRIATION.—If on the 
first day of a fiscal year a regular appropriation to 
the Commission has not been enacted, the Commis-
sion shall continue to collect fees (as offsetting col-
lections) under this subsection at the rate in effect 
during the preceding fiscal year, until 5 days after 
the date such a regular appropriation is enacted.’’. 
(d) SECTION 14(g) OF THE SECURITIES EXCHANGE 
ACT OF 1934.—Section 14(g) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78n(g)) is amended— 
(1) by striking paragraph (5) and inserting the 
following: 
‘‘(5) OFFSETTING
COLLECTIONS.—Fees col-
lected pursuant to this subsection for any fiscal 
year— 
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421 
‘‘(A) except as provided in section 31(i)(2), 
shall be deposited and credited as offsetting col-
lections to the account providing appropriations 
to the Commission; and 
‘‘(B) except as provided in paragraph (8), 
shall not be collected for any fiscal year except 
to the extent provided in advance in appropria-
tions Acts.’’; 
(2) by redesignating paragraph (8) as para-
graph (9); and 
(3) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) LAPSE
OF
APPROPRIATION.—If on the 
first day of a fiscal year a regular appropriation to 
the Commission has not been enacted, the Commis-
sion shall continue to collect fees (as offsetting col-
lections) under this subsection at the rate in effect 
during the preceding fiscal year, until 5 days after 
the date such a regular appropriation is enacted.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section— 
(1) shall apply beginning on October 1, 2017, 
except that for fiscal year 2018, the Securities and 
Exchange Commission shall publish— 
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422 
(A) the rates established under section 31 
of the Securities Exchange Act of 1934, as 
amended by this section, not later than 30 days 
after the date on which an Act making a reg-
ular appropriation to the Commission for fiscal 
year 2018 is enacted; and 
(B) the rate established under section 6(b) 
of the Securities Act of 1933, as amended by 
this section, not later than August 31, 2017; 
and 
(2) shall not apply with respect to fees for any 
fiscal year before fiscal year 2018. 
SEC. 805. COMMISSION RELOCATION FUNDING PROHIBI-
TION. 
The Securities and Exchange Commission may not 
obligate any funds for the purpose of constructing a new 
headquarters of the Commission. 
SEC. 806. IMPLEMENTATION OF RECOMMENDATIONS. 
Section 967 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act is amended by adding at 
the end the following: 
‘‘(d) IMPLEMENTATION
OF RECOMMENDATIONS.— 
Not later than 6 months after the date of enactment of 
this subsection, the Securities and Exchange Commission 
shall complete an implementation of the recommendations 
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423 
contained in the report of the independent consultant 
issued under subsection (b) on March 10, 2011. To the 
extent that implementation of certain recommendations 
requires legislation, the Commission shall submit a report 
to Congress containing a request for legislation granting 
the Commission such authority it needs to fully implement 
such recommendations.’’. 
SEC. 807. OFFICE OF CREDIT RATINGS TO REPORT TO THE 
DIVISION OF TRADING AND MARKETS. 
Section 15E(p)(1) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o–7(p)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘within 
the Commission’’ and inserting ‘‘within the Division 
of Trading and Markets’’; and 
(2) in subparagraph (B), by striking ‘‘report to 
the Chairman’’ and inserting ‘‘report to the head of 
the Division of Trading and Markets’’. 
SEC. 808. OFFICE OF MUNICIPAL SECURITIES TO REPORT 
TO THE DIVISION OF TRADING AND MAR-
KETS. 
Section 979 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 78o–4a) is 
amended— 
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424 
(1) in subsection (a), by inserting ‘‘, within the 
Division of Trading and Markets,’’ after ‘‘There 
shall be in the Commission’’; and 
(2) in subsection (b), by striking ‘‘report to the 
Chairman’’ and inserting ‘‘report to the head of the 
Division of Trading and Markets’’. 
SEC. 809. INDEPENDENCE OF COMMISSION OMBUDSMAN. 
Section 4(g)(8) of the Securities Exchange Act of 
1934 (15 U.S.C. 78d(g)(8)) is amended— 
(1) in subparagraph (A), by striking ‘‘the In-
vestor Advocate shall appoint’’ and all that follows 
through ‘‘Investor Advocate’’ and inserting ‘‘the 
Chairman shall appoint an Ombudsman, who shall 
report to the Commission’’; and 
(2) in subparagraph (D)— 
(A) by striking ‘‘report to the Investor Ad-
vocate’’ and inserting ‘‘report to the Commis-
sion’’; and 
(B) by striking the last sentence. 
SEC. 810. INVESTOR ADVISORY COMMITTEE IMPROVE-
MENTS. 
Section 39 of the Securities Exchange Act of 1934 
(15 U.S.C. 78pp) is amended— 
(1) in subsection (a)(2)(B), by striking ‘‘sub-
mit’’ and inserting, ‘‘in consultation with the Small 
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425 
Business Capital Formation Advisory Committee es-
tablished under section 40, submit’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (C), by striking 
‘‘and’’; 
(ii) in subparagraph (D)(iv), by strik-
ing the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(E) a member of the Small Business Cap-
ital Formation Advisory Committee who shall 
be a nonvoting member.’’; 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) TERM.— 
‘‘(A) LENGTH OF TERM FOR MEMBERS OF 
THE COMMITTEE.—Each member of the Com-
mittee appointed under paragraph (1), other 
than the Investor Advocate, shall serve for a 
term of 4 years. 
‘‘(B) LIMITATION ON MULTIPLE TERMS.— 
A member of the Committee may not serve for 
more than one term, except for the Investor Ad-
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426 
vocate, a representative of State securities com-
missions, and the member of the Small Busi-
ness Capital Formation Advisory Committee.’’; 
and 
(C) in paragraph (3), by striking ‘‘para-
graph (1)(B)’’ and inserting ‘‘paragraph (1)’’; 
(3) in subsection (c), by amending paragraph 
(2) to read as follows: 
‘‘(2) TERM.— 
‘‘(A) LENGTH
OF
TERM.—Each member 
elected under paragraph (1) shall serve for a 
term of 3 years in the capacity for which the 
member was elected under paragraph (1). 
‘‘(B) LIMITATION ON MULTIPLE TERMS.— 
A member elected under paragraph (1) may not 
serve for more than one term in the capacity 
for which the member was elected under para-
graph (1).’’; and 
(4) by striking subsections (i) and (j). 
SEC. 811. DUTIES OF INVESTOR ADVOCATE. 
Section 4(g)(4) of the Securities Exchange Act of 
1934 (15 U.S.C. 78d(g)(4)) is amended— 
(1) in subparagraph (D)(ii), by striking ‘‘and’’; 
(2) in subparagraph (E), by striking the period 
at the end and inserting a semicolon; and 
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427 
(3) by adding at the end the following: 
‘‘(F) not take a position on any legislation 
pending before Congress other than a legislative 
change proposed by the Investor Advocate pur-
suant to subparagraph (E); 
‘‘(G) consult with the Advocate for Small 
Business Capital Formation on proposed rec-
ommendations made under subparagraph (E); 
and 
‘‘(H) advise the Advocate for Small Busi-
ness Capital Formation on issues related to 
small business investors.’’. 
SEC. 812. ELIMINATION OF EXEMPTION OF SMALL BUSI-
NESS CAPITAL FORMATION ADVISORY COM-
MITTEE FROM FEDERAL ADVISORY COM-
MITTEE ACT. 
Section 40 of the Securities Exchange Act of 1934 
(as added by Public Law 114–284) is amended by striking 
subsection (h). 
SEC. 813. INTERNAL RISK CONTROLS. 
The Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) is amended— 
(1) by inserting after section 4G, as added by 
this Act, the following: 
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428 
‘‘SEC. 4H. INTERNAL RISK CONTROLS. 
‘‘(a) IN GENERAL.—Each of the following entities, in 
consultation with the Chief Economist, shall develop com-
prehensive 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 mar-
ket data: 
‘‘(1) The Commission. 
‘‘(2) Each national security association required 
to register under section 15A. 
‘‘(b) CONSOLIDATED AUDIT TRAIL.—The Commis-
sion may not approve a national market system plan pur-
suant to part 242.613 of title 17, Code of Federal Regula-
tions (or any successor regulation), unless the operator of 
the consolidated audit trail created by such plan has devel-
oped, in consultation with the Chief Economist, com-
prehensive internal risk control mechanisms to safeguard 
and govern the storage of all market data by such oper-
ator, all market data sharing agreements of such operator, 
and all academic research performed at such operator 
using market data.’’; 
(2) in section 3(a), by redesignating the second 
paragraph (80) (relating to funding portals) as 
paragraph (81); and 
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429 
(3) in section 3(a), by adding at the end the 
following: 
‘‘(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 deter-
mined by the Commission.’’. 
SEC. 814. APPLICABILITY OF NOTICE AND COMMENT RE-
QUIREMENTS OF THE ADMINISTRATIVE PRO-
CEDURE ACT TO GUIDANCE VOTED ON BY 
THE COMMISSION. 
The Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) is amended by inserting after section 4H, as added 
by this Act, the following: 
‘‘SEC. 4I. APPLICABILITY OF NOTICE AND COMMENT RE-
QUIREMENTS OF THE ADMINISTRATIVE PRO-
CEDURE ACT TO GUIDANCE VOTED ON BY 
THE COMMISSION. 
‘‘The notice and comment requirements of section 
553 of title 5, United States Code, shall also apply with 
respect to any Commission statement or guidance, includ-
ing interpretive rules, general statements of policy, or 
rules of Commission organization, procedure, or practice, 
that has the effect of implementing, interpreting, or pre-
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430 
scribing law or policy and that is voted on by the Commis-
sion.’’. 
SEC. 815. LIMITATION ON PILOT PROGRAMS. 
(a) IN GENERAL.—Section 4 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78d), as amended by sec-
tion 371(e), is further amended by adding at the end the 
following: 
‘‘(k) LIMITATION ON PILOT PROGRAMS.— 
‘‘(1) IN GENERAL.—Any pilot program estab-
lished by self-regulatory organizations, either indi-
vidually or jointly, and filed with the Commission, 
including under section 11A or 19, shall terminate 
after the end of the 5-year period beginning on the 
date that the Commission approved such program, 
unless the Commission issues a rule to permanently 
continue such program or approves such program on 
a permanent basis. 
‘‘(2) EXTENSION.—With respect to a particular 
pilot program described under paragraph (1), the 
Commission may extend the 5-year period described 
under such paragraph for an additional 3 years if 
the Commission determines such extension is nec-
essary or appropriate in the public interest or for 
the protection of investors. 
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431 
‘‘(3) LACK
OF
STATUTORY
AUTHORITY.—If, 
with respect to a pilot program described under 
paragraph (1), the Commission determines that the 
pilot program should continue permanently, but the 
Commission lacks sufficient statutory authority to 
permanently continue the program, the Commission 
shall, not later than 1 year before such pilot pro-
gram is scheduled to terminate pursuant to para-
graph (1), notify the Committee on Financial Serv-
ices of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate that the Commission believes the pro-
gram should continue permanently but does not have 
sufficient statutory authority to continue the pro-
gram.’’. 
(b) TREATMENT OF EXISTING PILOT PROGRAMS.— 
For purposes of section 4(k) of Securities Exchange Act 
of 1934, as added by subsection (a), the date on which 
the Commission approved a pilot program that was in ex-
istence on the date of the enactment of this Act shall be 
deemed to be the date of the enactment of this Act. 
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432 
SEC. 816. PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY. 
(a) PERSONS UNDER SECURITIES ACT OF 1933.— 
Section 8 of the Securities Act of 1933 (15 U.S.C. 77h) 
is amended by adding at the end the following: 
‘‘(g) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL 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, to the Commission unless the 
Commission first issues a subpoena.’’. 
(b) PERSONS UNDER THE SECURITIES EXCHANGE 
ACT OF 1934.—Section 23 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78w) is amended by adding at the 
end the following: 
‘‘(e) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL 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, to the Commission unless the 
Commission first issues a subpoena.’’. 
(c) INVESTMENT COMPANIES.—Section 31 of the In-
vestment Company Act of 1940 (15 U.S.C. 80a–30) is 
amended by adding at the end the following: 
‘‘(e) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY.—The Commission is not authorized 
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433 
to compel under this title an investment company to 
produce or furnish source code, including algorithmic trad-
ing source code or similar intellectual property, to the 
Commission unless the Commission first issues a sub-
poena.’’. 
(d) INVESTMENT ADVISERS.—Section 204 of the In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–4) is 
amended— 
(1) by adding at the end the following: 
‘‘(f) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL 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, to the Com-
mission unless the Commission first issues a subpoena.’’; 
and 
(2) in the second subsection (d), by striking 
‘‘(d)’’ and inserting ‘‘(e)’’. 
SEC. 817. PROCESS FOR CLOSING INVESTIGATIONS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Securities and Ex-
change Commission shall establish a process for closing 
investigations (including preliminary or informal inves-
tigations) that is designed to ensure that the Commission, 
in a timely manner— 
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434 
(1) makes a determination of whether or not to 
institute an administrative or judicial action in a 
matter or refer the matter to the Attorney General 
for potential criminal prosecution; and 
(2) if the Commission determines not to insti-
tute such an action or refer the matter to the Attor-
ney General, informs the persons who are the sub-
ject of the investigation that the investigation is 
closed. 
(b) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect the authority of the Com-
mission to re-open an investigation if the Commission ob-
tains new evidence after the investigation is closed, subject 
to any applicable statute of limitations. 
SEC. 818. ENFORCEMENT OMBUDSMAN. 
(a) IN GENERAL.—Section 4 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78d), as amended by sec-
tion 803, is further amended by adding at the end the 
following: 
‘‘(i) ENFORCEMENT OMBUDSMAN.— 
‘‘(1) ESTABLISHMENT.—The Commission shall 
have an Enforcement Ombudsman, who shall be ap-
pointed by and report directly to the Commission. 
‘‘(2) DUTIES.—The Enforcement Ombudsman 
shall— 
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435 
‘‘(A) act as a liaison between the Commis-
sion and any person who is the subject of an in-
vestigation (including a preliminary or informal 
investigation) by the Commission or an admin-
istrative or judicial action brought by the Com-
mission in resolving problems that such persons 
may have with the Commission or the conduct 
of Commission staff; and 
‘‘(B) establish safeguards to maintain the 
confidentiality of communications between the 
persons described in subparagraph (A) and the 
Enforcement Ombudsman. 
‘‘(3) LIMITATION.—In carrying out the duties 
of the Enforcement Ombudsman under paragraph 
(2), the Enforcement Ombudsman shall utilize per-
sonnel of the Commission to the extent practicable. 
Nothing in this subsection shall be construed as re-
placing, altering, or diminishing the activities of any 
ombudsman or similar office of any other agency. 
‘‘(4) REPORT.—The Enforcement Ombudsman 
shall submit to the Commission and to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate an annual re-
port that describes the activities and evaluates the 
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436 
effectiveness of the Enforcement Ombudsman during 
the preceding year.’’. 
(b) DEADLINE
FOR INITIAL APPOINTMENT.—The 
Securities and Exchange Commission shall appoint the ini-
tial Enforcement Ombudsman under subsection (i) of sec-
tion 4 of the Securities Exchange Act of 1934, as added 
by subsection (a), not later than 180 days after the date 
of the enactment of this Act. 
SEC. 819. ADEQUATE NOTICE. 
Section 21 of the Securities Exchange Act of 1934 
(15 U.S.C. 78u) is amended by adding at the end the fol-
lowing: 
‘‘(k) ADEQUATE NOTICE REQUIRED BEFORE BRING-
ING AN ENFORCEMENT ACTION.— 
‘‘(1) IN GENERAL.—No person shall be subject 
to an enforcement action by the Commission for an 
alleged violation of the securities laws or the rules 
and regulations issued thereunder if such person did 
not have adequate notice of such law, rule, or regu-
lation. 
‘‘(2) 
PUBLISHING
OF
INTERPRETATION 
DEEMED ADEQUATE NOTICE.—With respect to an 
enforcement action, adequate notice of a securities 
law or a rule or regulation issued thereunder shall 
be deemed to have been provided to a person if the 
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Commission approved a statement or guidance, in 
accordance with Section 4I, with respect to the con-
duct that is the subject of the enforcement action, 
prior to the time that the person engaged in the con-
duct that is the subject of the enforcement action.’’. 
SEC. 820. ADVISORY COMMITTEE ON COMMISSION’S EN-
FORCEMENT POLICIES AND PRACTICES. 
(a) ESTABLISHMENT.—Not later than 6 months after 
the date of the enactment of this Act, the Chairman shall 
establish an advisory committee on the Commission’s en-
forcement policies and practices (in this section referred 
to as the ‘‘Committee’’). 
(b) DUTIES.— 
(1) ANALYSIS AND RECOMMENDATIONS.— 
(A) IN
GENERAL.—The Committee shall 
conduct an analysis of the policies and practices 
of the Commission relating to the enforcement 
of the securities laws and make recommenda-
tions to the Commission regarding changes to 
such policies and practices. 
(B) SPECIFIC
MATTERS
INCLUDED.—In 
carrying out subparagraph (A), the Committee 
shall analyze and make recommendations to the 
Commission regarding matters including the 
following: 
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(i) How the Commission’s enforce-
ment objectives and strategies may be 
more effective. 
(ii) The Commission’s enforcement 
practices and procedures from the point of 
view of due process, the relationship of en-
forcement action to notice of legal require-
ments, the attribution of responsibility for 
violations, and the protection of reputation 
and rights of privacy. 
(iii) The Commission’s enforcement 
policies and practices in light of its statu-
tory responsibility to protect investors, 
maintain fair, orderly, and efficient mar-
kets, and facilitate capital formation. 
(iv) The appropriate blend of regula-
tion, publicity, and formal enforcement ac-
tion and on methods of furthering vol-
untary compliance. 
(v) Criteria for the selection and dis-
position of enforcement actions, the ade-
quacy of sanctions authorized by law, and 
the suitability and effectiveness of sanc-
tions imposed by the Commission pro-
ceedings. 
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439 
(2) REPORT.—Not later than 1 year after the 
establishment of the Committee under subsection 
(a), the Committee shall submit to the Commission 
and the appropriate congressional committees a re-
port containing the results of the analysis and the 
recommendations required by paragraph (1)(A). 
(c) MEMBERSHIP.— 
(1) NUMBER AND APPOINTMENT.—The Com-
mittee shall be composed of not less than 3 and not 
greater than 7 members appointed by the Chairman. 
(2) CHAIRPERSON.—The Chairperson of the 
Committee shall be designated by the Chairman at 
the time of appointment of the members. 
(d) SUPPORT.—The Commission shall provide the 
Committee with the administrative, professional, and tech-
nical support required by the Committee to carry out its 
responsibilities under this section. 
(e) TERMINATION OF COMMITTEE.—The Committee 
established by subsection (a) shall terminate on the date 
that the report required by subsection (b)(2) is submitted. 
(f) CONSIDERATION
AND
ADOPTION
OF
REC-
OMMENDATIONS BY COMMISSION.—Not later than 180 
days after the Committee submits the report required by 
subsection (b)(2), the Commission shall— 
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440 
(1) consider the analysis and recommendations 
included in such report; 
(2) adopt such recommendations, with any 
modifications, as the Commission considers appro-
priate; and 
(3) submit to the appropriate congressional 
committees a report that— 
(A) lists each recommendation included in 
such report that the Commission does not adopt 
or adopts with material modifications; and 
(B) for each recommendation listed under 
subparagraph (A), explains why the Commis-
sion does not consider it appropriate or does 
not have sufficient authority to adopt the rec-
ommendation or to adopt the recommendation 
without material modification. 
(g) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Financial Services 
of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Sen-
ate. 
(2) CHAIRMAN.—The term ‘‘Chairman’’ means 
the Chairman of the Commission. 
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441 
(3) COMMISSION.—The term ‘‘Commission’’ 
means the Securities and Exchange Commission. 
(4) SECURITIES LAWS.—The term ‘‘securities 
laws’’ has the meaning given such term in section 
3(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)). 
SEC. 821. PROCESS TO PERMIT RECIPIENT OF WELLS NOTI-
FICATION TO APPEAR BEFORE COMMISSION 
STAFF IN-PERSON. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Securities and Ex-
change Commission shall establish a process under which, 
in any instance in which the Commission staff provides 
a written Wells notification to an individual informing the 
individual that the Commission staff has made a prelimi-
nary determination to recommend that the Commission 
bring an administrative or judicial action against the indi-
vidual, the individual shall have the right to make an in- 
person presentation before the Commission staff con-
cerning such recommendation and to be represented by 
counsel at such presentation, at the individual’s own ex-
pense. 
(b) ATTENDANCE BY COMMISSIONERS.—Such proc-
ess shall provide that each Commissioner of the Commis-
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442 
sion, or a designee of the Commissioner, may attend any 
such presentation. 
(c) REPORT BY COMMISSION STAFF.—Such process 
shall provide that, before any Commission vote on whether 
to bring the administrative or judicial action against the 
individual, the Commission staff shall provide to each 
Commissioner a written report on any such presentation, 
including any factual or legal arguments made by the indi-
vidual and any supporting documents provided by the indi-
vidual. 
SEC. 822. PUBLICATION OF ENFORCEMENT MANUAL. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Securities and Ex-
change Commission shall approve, by vote of the Commis-
sion, and publish an updated manual that sets forth the 
policies and practices that the Commission will follow in 
the enforcement of the securities laws (as defined in sec-
tion 3(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a))). Such manual shall include policies and 
practices required by this Act, and by the amendments 
made by this Act, and shall be developed so as to ensure 
transparency in such enforcement and uniform application 
of such laws by the Commission. 
(b) ENFORCEMENT PLAN AND REPORT.—Beginning 
on the date that is one year after the date of enactment 
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443 
of this Act, and each year thereafter, and the Securities 
and Exchange Commission shall transmit to Congress and 
publish on its Internet website an annual enforcement 
plan and report that shall— 
(1) detail the priorities of the Commission with 
regard to enforcement and examination activities for 
the forthcoming year; 
(2) report on the Commission’s enforcement 
and examination activities for the previous year, in-
cluding an assessment of how such activities com-
ported with the priorities identified for that year 
pursuant to paragraph (1); 
(3) contain an analysis of litigated decisions 
found not in favor of the Commission over the pre-
ceding year; 
(4) contain a description of any emerging 
trends the Commission has focused on as part of its 
enforcement program, including whether and how 
the Commission has alerted or communicated with 
those who may be subject to the Commission’s regu-
lation of emerging trends; 
(5) contain a description of legal theories or 
standards employed by the Commission in enforce-
ment over the preceding year that had not previously 
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444 
been employed, and a summary justifying each such 
theory or standard; and 
(6) provide an opportunity and mechanism for 
public comment. 
SEC. 823. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 
SECURITIES AND EXCHANGE COMMISSION TO 
SEEK SANCTIONS BY FILING CIVIL ACTIONS. 
Title I of the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 41. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 
COMMISSION TO SEEK SANCTIONS BY FILING 
CIVIL ACTIONS. 
‘‘(a) TERMINATION
OF
ADMINISTRATIVE
PRO-
CEEDING.—In the case of any person who is a party to 
a proceeding brought by the Commission under a securi-
ties law, to which section 554 of title 5, United States 
Code, applies, and against whom an order imposing a 
cease and desist order and a penalty may be issued at 
the conclusion of the proceeding, that person may, not 
later than 20 days after receiving notice of such pro-
ceeding, and at that person’s discretion, require the Com-
mission to terminate the proceeding. 
‘‘(b) CIVIL ACTION AUTHORIZED.—If a person re-
quires the Commission to terminate a proceeding pursuant 
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445 
to subsection (a), the Commission may bring a civil action 
against that person for the same remedy that might be 
imposed. 
‘‘(c) STANDARD OF PROOF IN ADMINISTRATIVE PRO-
CEEDING.—Notwithstanding any other provision of law, in 
the case of a proceeding brought by the Commission under 
a securities law, to which section 554 of title 5, United 
States Code, applies, a legal or equitable remedy may be 
imposed on the person against whom the proceeding was 
brought only on a showing by the Commission of clear and 
convincing evidence that the person has violated the rel-
evant provision of law.’’. 
SEC. 824. CERTAIN FINDINGS REQUIRED TO APPROVE 
CIVIL MONEY PENALTIES AGAINST ISSUERS. 
The Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) is amended by inserting after section 4E the fol-
lowing: 
‘‘SEC. 4F. CERTAIN FINDINGS REQUIRED TO APPROVE 
CIVIL MONEY PENALTIES AGAINST ISSUERS. 
‘‘The Commission may not seek against or impose on 
an issuer a civil money penalty for violation of the securi-
ties laws unless the publicly available text of the order ap-
proving the seeking or imposition of such penalty contains 
findings, supported by an analysis by the Division of Eco-
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486 
(b) SECURITIES EXCHANGE ACT OF 1934.—Section 
3(a)(68) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(68)) is amended by inserting before sub-
section (b) the following: 
‘‘(F) TREATMENT
OF
SECURITY-BASED 
SWAP TRANSACTIONS BETWEEN AFFILIATES.— 
‘‘(i) EXEMPTION
FROM
SECURITY- 
BASED SWAP RULES.—Except as provided 
under clause (ii), the Commission may not 
regulate a security-based swap under this 
Act if all of the following apply to such se-
curity-based swap: 
‘‘(I) 
AFFILIATION.—One 
counterparty, directly or indirectly, 
holds a majority ownership interest in 
the other counterparty, or a third 
party, directly or indirectly, holds a 
majority ownership interest in both 
counterparties. 
‘‘(II) FINANCIAL STATEMENTS.— 
The affiliated counterparty that holds 
the majority interest in the other 
counterparty or the third party that, 
directly or indirectly, holds the major-
ity interests in both affiliated counter-
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487 
parties, reports its financial state-
ments on a consolidated basis under 
generally accepted accounting prin-
ciples or International Financial Re-
porting Standards, or other similar 
standards, and the financial state-
ments include the financial results of 
the 
majority-owned 
affiliated 
counterparty or counterparties. 
‘‘(ii) REQUIREMENTS FOR EXEMPTED 
SECURITY-BASED SWAPS.—With respect to 
a security-based swap described under 
clause (i): 
‘‘(I) 
REPORTING
REQUIRE-
MENT.—If at least one counterparty is 
a security-based swap dealer or major 
security-based swap participant, that 
counterparty shall report the security- 
based swap pursuant to section 13A, 
within such time period as the Com-
mission may by rule or regulation pre-
scribe— 
‘‘(aa) to a security-based 
swap data repository; or 
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