358 
term appears in heading or text and inserting ‘‘Con-
sumer Law Enforcement Agency’’. 
(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 Protec-
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tion’’ and inserting ‘‘Consumer Law Enforce-
ment Agency’’. 
(B) NDAA FY 2015.—Section 557(a) of the 
Carl Levin and Howard P. ‘‘Buck’’ McKeon Na-
tional Defense Authorization Act for Fiscal Year 
2015 (Public Law 113–29; 128 Stat. 3381; 10 
U.S.C. 1144 note), is amended by striking ‘‘Con-
sumer Financial Protection Bureau’’ each place 
such term appears and inserting ‘‘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 Bu-
reau of Consumer Financial Protection, the Of-
fice of Financial Research,’’ and inserting ‘‘the 
Consumer Law Enforcement Agency,’’; and 
(B) in section 3513(c), by striking ‘‘Bureau 
of Consumer Financial Protection’’ and insert-
ing ‘‘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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(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 appears 
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 inserting 
‘‘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 Ad-
ministration Bureau’’ each place such term ap-
pears and inserting ‘‘National Credit Union Ad-
ministration 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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(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 Ad-
ministration Bureau’’ each place such term ap-
pears and inserting ‘‘National Credit Union Ad-
ministration 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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‘‘(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 Affairs 
has with respect to any other agency that is not an inde-
pendent regulatory agency (as such terms are defined, re-
spectively, 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, FINANCIAL 
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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(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 Agency 
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 Consumer 
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 In-
spector General Act of 1978 (5 U.S.C. App.) is amended— 
(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 pur-
poses of implementing this section’’ and all that 
follows through the end of the subsection; and 
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(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 Con-
sumer 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: 
‘‘(d) ADDITIONAL
REQUIREMENT
FOR
INSPECTOR 
GENERAL.—On a separate occasion from that described in 
subsection (a), the Inspector General of the Agency shall ap-
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pear, upon invitation, before the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representa-
tives at semi-annual hearings regarding the reports re-
quired 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 INSPEC-
TORS 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 Agen-
cy.’’. 
(4) DEADLINE
FOR
APPOINTMENT.—Not later 
than 60 days after the date of the enactment of this 
Act, the President shall appoint an Inspector General 
for the Consumer Law Enforcement Agency in accord-
ance 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 and 
the Bureau of Consumer Financial Protection shall serve 
in that position until the confirmation of an Inspector Gen-
eral for the Consumer Law Enforcement Agency. At that 
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time, the Inspector General of the Board of Governors 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 ACTIONS.— 
‘‘(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 sec-
tion, 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 may, 
not later than 20 days after receiving notice of such 
proceeding, and at that person’s discretion, require 
the Agency to terminate the proceeding. 
‘‘(2) CIVIL ACTION AUTHORIZED.—If a person 
requires the Agency to terminate a proceeding pursu-
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ant 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 admin-
istrative adjudication commenced under this section shall 
be deemed an ‘action’ for purposes of section 1054(g).’’. 
SEC. 716. CIVIL INVESTIGATIVE DEMANDS TO BE APPEALED 
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 to 
resolve all issues regarding compliance with the civil 
investigative demand, unless the Agency grants an ex-
tension requested by such recipient.’’; 
(2) in subsection (f)— 
(A) by amending paragraph (1) to read as 
follows: 
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‘‘(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 pe-
riod is shorter, or within such period exceeding 45 
days after service or in excess of such return date as 
may be prescribed in writing, subsequent 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 peti-
tion for an order modifying or setting aside the de-
mand.’’; 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). 
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 applicable, 
enforce Federal consumer financial law consistently for the 
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purpose of strengthening participation in markets by cov-
ered 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 Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5493) is 
amended by adding at the end the following: 
‘‘(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, establish 
an Office of Economic Analysis. 
‘‘(2) DIRECT REPORTING.—The head of the Office 
of Economic Analysis shall report directly to the Di-
rector. 
‘‘(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 access 
to credit products; and 
‘‘(C) publish a report on such reviews and 
assessments in the Federal Register. 
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‘‘(4) MEASURING EXISTING RULES AND REGULA-
TIONS.—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 regu-
lation 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 ACTIONS.— 
The Office of Economic Analysis shall— 
‘‘(A) carry out a cost-benefit analysis of 
any proposed administrative enforcement action, 
civil lawsuit, or consent order of the Agency; 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.—Be-
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fore issuing any rule or regulation, the Director shall 
consider the review and assessment of such rule or 
regulation carried out by the Office of Economic 
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 
‘‘(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 ac-
cess to, and cost of, consumer financial products 
and services.’’. 
(3) CONSIDERATION OF COST-BENEFIT REVIEW 
RELATED TO ADMINISTRATIVE ACTIONS.—The Dodd- 
Frank Wall Street Reform and Consumer Protection 
Act (12 U.S.C. 5301 et seq.) is amended— 
(A) in subtitle E of title X, by adding at the 
end the following: 
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‘‘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 ac-
tion, lawsuit, or order carried out by the Office of Economic 
Analysis.’’; and 
(B) in the table of contents under section 
1(b), by inserting after the item relating to sec-
tion 1058 the following: 
‘‘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 amendments 
made by this section in conjunction with, or as part of, 
any other agenda or analysis required by any other provi-
sion 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 
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(2) in section 1061(b)(5)(E)— 
(A) by striking ‘‘affords to the—’’ and all 
that follows through ‘‘(i) Federal Trade Commis-
sion’’ and inserting ‘‘affords to the Federal 
Trade Commission’’; 
(B) by striking ‘‘; or’’ and inserting a pe-
riod; and 
(C) by striking clause (ii). 
Subtitle B—Administrative 
Enhancements 
SEC. 721. ADVISORY OPINIONS. 
Section 1022(b) of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5512(b)), as amended by section 
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 
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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 
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 behalf 
of a covered person. 
‘‘(iv) RIGHT TO WITHDRAW INQUIRY.— 
Any inquiry under this paragraph may be 
withdrawn at any time prior to the Direc-
tor issuing an opinion in response to such 
inquiry, and any opinion based on an in-
quiry 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 request for 
an opinion under this paragraph, either— 
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‘‘(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 
‘‘(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 Di-
rector shall not issue an opinion, and shall 
so inform the requestor, if the request for an 
opinion— 
‘‘(I) asks a general question of in-
terpretation; 
‘‘(II) asks about a hypothetical 
situation; 
‘‘(III) asks about the conduct of 
someone other than the covered person 
on whose behalf the request is made; 
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‘‘(IV) asks about past conduct 
that the covered person on whose behalf 
the request is made does not plan to 
continue in the future; or 
‘‘(V) fails to provide necessary 
supporting information requested by 
the Agency within a reasonable time 
established by the Agency. 
‘‘(iv) AMENDMENT AND REVOCATION.— 
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 re-
ceived the advice, subject to any limitations 
on public disclosure arising from statutory 
restrictions, Agency regulations, or the pub-
lic interest. The Agency shall redact any 
personal, confidential, or identifying infor-
mation about the covered person or any 
other persons mentioned in the advisory 
opinion, unless the covered person consents 
to such disclosure. 
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‘‘(vi) REPORT
TO
CONGRESS.—The 
Agency shall, concurrent with the semi-an-
nual report required under section 1016(b), 
submit information regarding the number of 
requests for an advisory opinion received, 
the subject of each request, the number of re-
quests 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 con-
nection with an inquiry under this paragraph 
shall be exempt from disclosure under section 
552 of title 5, United States Code (commonly re-
ferred to as the ‘Freedom of Information Act’) 
and may not, except with the consent of the cov-
ered person making such inquiry, be made pub-
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licly available, regardless of whether the Director 
responds to such inquiry or the covered person 
withdraws such inquiry before receiving an opin-
ion. 
‘‘(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 in-
quiry 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 
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shall publish a description of the fee system 
described in clause (i) in the Federal Reg-
ister and shall solicit comments from the 
public for a period of 60 days after publica-
tion. 
‘‘(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 pub-
lic 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 redesignated 
by section 713, is amended by redesignating paragraph (2) 
as paragraph (3), and by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) SEGREGATED ACCOUNTS IN CIVIL PENALTY 
FUND.— 
‘‘(A) IN GENERAL.—The Agency shall estab-
lish and maintain a segregated account in the 
Civil Penalty Fund each time the Agency obtains 
a civil penalty against any person in any judi-
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cial or administrative action under Federal con-
sumer financial laws. 
‘‘(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. 
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‘‘(B) FUNDS DEPOSITED IN TREASURY.— 
‘‘(i) IN GENERAL.—The Agency shall 
deposit into the general fund of the Treas-
ury any amounts remaining in a segregated 
account in the Civil Penalty Fund at the 
end of the 2-year period for payments to 
victims under subparagraph (A). 
‘‘(ii) IMPOSSIBLE
OR
IMPRACTICAL 
PAYMENTS.—If the Agency determines before 
the end of the 2-year period for payments to 
victims under subparagraph (A) that such 
victims cannot be located or payments 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 re-
spect to amounts in the Consumer Financial Civil 
Penalty Fund on the date of enactment of this Act 
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that were not allocated for consumer education and 
financial literacy programs on or before September 
30, 2015, the Consumer Law Enforcement Agency 
shall separate such amounts into segregated accounts 
in accordance with, and for purposes of, section 
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 en-
actment of this Act. 
SEC. 723. AGENCY PAY FAIRNESS. 
(a) IN GENERAL.—Section 1013(a)(2) of the Consumer 
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 adjusted 
by the Director in accordance with the General Sched-
ule set forth in section 5332 of title 5, United States 
Code.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to service by an employee of the Con-
sumer Law Enforcement Agency following the 90-day pe-
riod beginning on the date of enactment of this Act. 
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383 
SEC. 724. ELIMINATION OF MARKET MONITORING FUNC-
TIONS. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(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 establish’’; 
(ii) in paragraph (2), by striking 
‘‘shall establish’’ and inserting ‘‘may estab-
lish’’; and 
(iii) paragraph (3)(D)— 
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(I) by striking ‘‘To facilitate 
preparation of the reports required 
under subparagraph (C), supervision 
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 establish’’; 
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 establish’’; 
(ii) in paragraph (3)— 
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(I) in subparagraph (A), by in-
serting ‘‘, if such Office exists within 
the Agency,’’ after ‘‘Community Affairs 
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 
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shall’’ and inserting ‘‘The Director 
may’’; and 
(II) by striking ‘‘on protection 
from unfair, deceptive, and abusive 
practices and’’; 
(ii) in paragraph (2), by striking ‘‘The 
Office’’ and inserting ‘‘At any time when 
the Office of Financial Protection for Older 
Americans exists within the Agency, the Of-
fice’’; and 
(iii) in paragraph (3)— 
(I) in subparagraph (A)— 
(aa) by striking clause (i); 
(bb) by redesignating clauses 
(ii) and (iii) as clauses (i) and 
(ii), respectively; and 
(cc) in clause (ii), as so re-
designated, by striking ‘‘to re-
spond 
to 
consumer 
problems 
caused by unfair, deceptive, or 
abusive practices’’; 
(II) in subparagraph (B), by 
striking ‘‘and alert the Commission 
and State regulators of certifications or 
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designations that are identified as un-
fair, deceptive, or abusive’’; and 
(III) in subparagraph (D)— 
(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 des-
ignate’’ and inserting ‘‘may designate’’; and 
(B) in subsection (b), by striking ‘‘The Sec-
retary’’ 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 repealed. 
(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. 
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(c) RULE OF CONSTRUCTION.—Nothing in this section 
may be construed as limiting the authority of the Director 
of the Consumer Law Enforcement Agency to establish advi-
sory committees pursuant to the Federal Advisory Com-
mittee 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 
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paragraph (2)’’ and inserting ‘‘as of the 
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 ‘‘au-
thority of the Bureau’’; and 
(ii) by striking ‘‘conducting any exam-
ination or requiring any report from a 
service provider subject to this subsection’’ 
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and inserting ‘‘carrying out any authority 
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 institu-
tion or an insured credit union.’’; 
(B) in subsection (b)(3), by striking ‘‘report 
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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(A) by striking ‘‘supervisory,’’ each place 
such term appears; 
(B) in subsection (e)(1), by striking ‘‘super-
visory 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 strik-
ing ‘‘, 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)— 
(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)— 
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(i) by amending paragraph (1) to read 
as follows: 
‘‘(1) EXAMINATION.—A transferor agency that is 
a prudential regulator shall have exclusive authority 
(relative to the Bureau) to require reports from and 
conduct examinations for compliance with Federal 
consumer financial laws with respect to a person de-
scribed 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 appears 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 1975 
(12 U.S.C. 2804(d)) is amended by striking ‘‘examine and’’. 
(c) OMNIBUS APPROPRIATIONS ACT, 2009.—Section 
626 of the Omnibus Appropriations Act, 2009 (15 U.S.C. 
1638 note) is repealed. 
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(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 strik-
ing ‘‘SUPERVISION OF’’ and inserting ‘‘AUTHOR-
ITY 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 Colum-
bia 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 authority’’ 
and inserting ‘‘may not exercise any rulemaking, en-
forcement, 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 
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(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 IN-
FORMATION.—Section 1022 of the Consumer Financial Pro-
tection Act of 2010 (12 U.S.C. 5512), as amended by section 
724(3), is further amended by inserting after subsection (b) 
the following: 
‘‘(c) CONSUMER PRIVACY.— 
‘‘(1) IN GENERAL.—The Agency may not request, 
obtain, access, collect, use, retain, or disclose any non-
public personal information about a consumer un-
less— 
‘‘(A) the Agency clearly and conspicuously 
discloses to the consumer, in writing or in an 
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 
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such information may be requested, obtained, 
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 Agen-
cy to collect information to the extent such informa-
tion is being collected on behalf of the Agency. 
‘‘(3) DEFINITION OF NONPUBLIC PERSONAL IN-
FORMATION.—In this subsection, the term ‘nonpublic 
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). 
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 Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5513) is 
hereby repealed. 
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(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 prescribed 
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 
(3) by adding at the end the following: 
‘‘(iii) the impact of such rule on the fi-
nancial 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— 
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(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 fol-
lowing: 
‘‘(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 GUIDANCE.— 
Bulletin 2013–02 of the Bureau of Consumer Financial 
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— 
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‘‘(A) provide for a public notice and com-
ment period before issuing the guidance in final 
form; 
‘‘(B) make available to the public, including 
on the website of the Agency, all studies, data, 
methodologies, analyses, and other information 
relied on by the Agency in preparing such guid-
ance; 
‘‘(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 Trade 
Commission, and the Department of Justice; 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 section 
shall be construed to apply to guidance issued by the Con-
sumer Law Enforcement Agency that is not primarily re-
lated to indirect auto financing. 
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SEC. 735. PROHIBITION OF GOVERNMENT PRICE CONTROLS 
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— 
(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)— 
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(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-
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 ‘‘subsection 
(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. 
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401 
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 commerce 
(including acts or practices which are unfair or de-
ceptive to consumers) by depository institutions, each 
Federal banking regulator shall prescribe regulations 
to carry out the purposes of this section, including 
regulations defining with specificity such unfair or 
deceptive acts or practices, and containing require-
ments prescribed for the purpose of preventing such 
acts or practices. 
‘‘(2) PROMULGATING
SUBSTANTIALLY
SIMILAR 
REGULATIONS.—Whenever the Commission prescribes 
a rule under subsection (a)(1)(B), then within 60 
days after such rule takes effect each Federal banking 
regulator shall promulgate substantially similar regu-
lations prohibiting acts or practices of depository in-
stitutions which are substantially similar to those 
prohibited by rules of the Commission and which im-
pose substantially similar requirements, unless— 
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‘‘(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 Federal 
Reserve System finds that implementation of 
similar regulations with respect to depository in-
stitutions would seriously conflict with essential 
monetary and payments systems policies of such 
Board, and publishes any such finding, and the 
reasons therefor, in the Federal Register. 
‘‘(3) ENFORCEMENT.— 
‘‘(A) IN GENERAL.—Compliance with regu-
lations prescribed under this subsection shall be 
enforced— 
‘‘(i) under section 8 of the Federal De-
posit Insurance Act, with respect to a de-
pository 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 reg-
ulator of the regulator’s powers under any Act 
referred to in subparagraph (A), a violation of 
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any regulation prescribed under this subsection 
shall be deemed to be a violation of a require-
ment 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 enforc-
ing compliance with any regulation prescribed 
under this subsection, any other authority con-
ferred 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 im-
pair the authority of any other Federal banking regu-
lator to make rules respecting the regulator’s own pro-
cedures in enforcing compliance with regulations pre-
scribed under this subsection. 
‘‘(5) REPORT
TO
CONGRESS.—Each Federal 
banking regulator exercising authority under this sub-
section shall transmit to the Congress each year a de-
tailed report on its activities under this subsection 
during the preceding calendar year. 
‘‘(6) DEFINITIONS.—For purposes of this Act: 
‘‘(A) BANK.—The term ‘bank’ means— 
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‘‘(i) 
national 
banks 
and 
Federal 
branches and Federal agencies of foreign 
banks; 
‘‘(ii) member banks of the Federal Re-
serve System (other than national banks), 
branches and agencies of foreign banks 
(other than Federal branches, Federal agen-
cies, and insured State branches of foreign 
banks), 
commercial 
lending 
companies 
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 De-
posit 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 Insurance 
Act; and 
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‘‘(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. 
‘‘(E) SAVINGS
AND
LOAN
INSTITUTION.— 
The term ‘savings and loan institution’ has the 
same meaning as in section 3 of the Federal De-
posit 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 Federal 
Deposit Insurance Act shall have the meaning 
given to them in section 1(b) of the International 
Banking Act of 1978.’’. 
(b) CONFORMING AMENDMENTS.—The Federal Trade 
Commission Act (15 U.S.C. 41 et seq.) is amended— 
(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 
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406 
U.S.C. 57a(f)(3)), or a Federal credit union described 
in section 18(f)(4) of the Federal Trade Commission 
Act (15 U.S.C. 57a(f)(4))’’ and inserting ‘‘18(f), or a 
Federal credit union described in section 18(f)’’; 
(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. 
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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; 
‘‘(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 following: 
‘‘(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 Com-
mittee on Financial Services and the Committee on Appro-
priations of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs and the 
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Committee on Appropriations of the Senate a report stating 
the amount of such unobligated funds. If there is any mate-
rial change in the amount stated in the report, the Commis-
sion shall, not later than 7 days after determining the 
amount of the change, submit to such committees a supple-
mentary report stating the amount of and reason for the 
change.’’. 
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 accord-
ance with this section, collect transaction fees and assess-
ments.’’; 
(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 inserting 
the following: 
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‘‘(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 Securi-
ties Act of 1933 in excess of the amount provided in 
appropriation Acts for collection for such fiscal year 
pursuant to such sections shall be deposited and cred-
ited as general revenue of the Treasury.’’; 
(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 fiscal 
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 
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‘‘(B) for each succeeding fiscal year, the tar-
get offsetting collection amount for the prior fis-
cal 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, deben-
tures, 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 securities association 
(otherwise than on a national securities exchange) 
during such fiscal year as determined by the Commis-
sion, after consultation with the Congressional Budget 
Office and the Office of Management 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— 
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411 
(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— 
‘‘(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 collected 
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 collections to 
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412 
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. 
‘‘(7) LAPSE OF APPROPRIATION.—If on the first 
day of a fiscal year a regular appropriation to the 
Commission has not been enacted, the Commission 
shall continue to collect fees (as offsetting collections) 
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— 
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(1) by striking paragraph (5) and inserting the 
following: 
‘‘(5) OFFSETTING COLLECTIONS.—Fees collected 
pursuant to this subsection for any fiscal year— 
‘‘(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 Commission 
shall continue to collect fees (as offsetting collections) 
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: 
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‘‘(5) OFFSETTING COLLECTIONS.—Fees collected 
pursuant to this subsection for any fiscal year— 
‘‘(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 Commission 
shall continue to collect fees (as offsetting collections) 
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— 
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(1) shall apply beginning on October 1, 2017, ex-
cept that for fiscal year 2018, the Securities and Ex-
change Commission shall publish— 
(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 regular appro-
priation 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 ob-
ligate any funds for the purpose of constructing a new head-
quarters 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 sub-
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section, the Securities and Exchange Commission shall com-
plete an implementation of the recommendations contained 
in the report of the independent consultant issued under 
subsection (b) on March 10, 2011. To the extent that imple-
mentation of certain recommendations requires legislation, 
the Commission shall submit a report to Congress con-
taining a request for legislation granting the Commission 
such authority it needs to fully implement such rec-
ommendations.’’. 
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 MARKETS. 
Section 979 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 78o–4a) is amend-
ed— 
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(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 Inves-
tor 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 ‘‘submit’’ 
and inserting, ‘‘in consultation with the Small Busi-
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ness Capital Formation Advisory Committee estab-
lished 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 Advocate, 
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a representative of State securities commissions, 
and the member of the Small Business 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 paragraph 
(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 
(3) by adding at the end the following: 
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‘‘(F) not take a position on any legislation 
pending before Congress other than a legislative 
change proposed by the Investor Advocate pursu-
ant 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 sub-
section (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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‘‘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 market 
data: 
‘‘(1) The Commission. 
‘‘(2) Each national security association required 
to register under section 15A. 
‘‘(b) CONSOLIDATED AUDIT TRAIL.—The Commission 
may not approve a national market system plan pursuant 
to part 242.613 of title 17, Code of Federal Regulations (or 
any successor regulation), unless the operator of the consoli-
dated audit trail created by such plan has developed, in 
consultation with the Chief Economist, comprehensive in-
ternal risk control mechanisms to safeguard and govern the 
storage of all market data by such operator, all market data 
sharing agreements of such operator, and all academic re-
search performed at such operator using market data.’’; 
(2) in section 3(a), by redesignating the second 
paragraph (80) (relating to funding portals) as para-
graph (81); and 
(3) in section 3(a), by adding at the end the fol-
lowing: 
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‘‘(82) CHIEF
ECONOMIST.—The term ‘Chief 
Economist’ means the Director of the Division of Eco-
nomic and Risk Analysis, or an employee of the Com-
mission with comparable authority, as determined 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, including inter-
pretive rules, general statements of policy, or rules of Com-
mission organization, procedure, or practice, that has the 
effect of implementing, interpreting, or prescribing law or 
policy and that is voted on by the Commission.’’. 
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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 section 
371(e), is further amended by adding at the end the fol-
lowing: 
‘‘(k) LIMITATION ON PILOT PROGRAMS.— 
‘‘(1) IN
GENERAL.—Any pilot program estab-
lished by self-regulatory organizations, either individ-
ually or jointly, and filed with the Commission, in-
cluding 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 perma-
nent 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 necessary or 
appropriate in the public interest or for the protec-
tion of investors. 
‘‘(3) LACK OF STATUTORY AUTHORITY.—If, with 
respect to a pilot program described under paragraph 
(1), the Commission determines that the pilot pro-
gram should continue permanently, but the Commis-
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sion lacks sufficient statutory authority to perma-
nently continue the program, the Commission shall, 
not later than 1 year before such pilot program is 
scheduled to terminate pursuant to paragraph (1), 
notify the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
that the Commission believes the program should con-
tinue permanently but does not have sufficient statu-
tory authority to continue the program.’’. 
(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 Commis-
sion approved a pilot program that was in existence on the 
date of the enactment of this Act shall be deemed to be the 
date of the enactment of this Act. 
SEC. 816. PROCEDURE FOR OBTAINING CERTAIN INTELLEC-
TUAL PROPERTY. 
(a) PERSONS UNDER SECURITIES ACT OF 1933.—Sec-
tion 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 INTELLEC-
TUAL 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 
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intellectual property, to the Commission unless the Commis-
sion 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 INTELLEC-
TUAL 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 Commis-
sion 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 INTELLEC-
TUAL PROPERTY.—The Commission is not authorized to 
compel under this title an investment company to produce 
or furnish source code, including algorithmic trading source 
code or similar intellectual property, to the Commission un-
less the Commission first issues a subpoena.’’. 
(d) INVESTMENT ADVISERS.—Section 204 of the In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–4) is amend-
ed— 
(1) by adding at the end the following: 
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‘‘(f) PROCEDURE FOR OBTAINING CERTAIN INTELLEC-
TUAL 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 Commission un-
less 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 in-
vestigations (including preliminary or informal investiga-
tions) that is designed to ensure that the Commission, in 
a timely manner— 
(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 institute 
such an action or refer the matter to the Attorney 
General, informs the persons who are the subject of 
the investigation that the investigation is closed. 
(b) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to affect the authority of the Commission 
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to re-open an investigation if the Commission obtains new 
evidence after the investigation is closed, subject to any ap-
plicable 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 section 
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— 
‘‘(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 adminis-
trative 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. 
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‘‘(3) LIMITATION.—In carrying out the duties of 
the Enforcement Ombudsman under paragraph (2), 
the Enforcement Ombudsman shall utilize personnel 
of the Commission to the extent practicable. Nothing 
in this subsection shall be construed as replacing, al-
tering, or diminishing the activities of any ombuds-
man or similar office of any other agency. 
‘‘(4) REPORT.—The Enforcement Ombudsman 
shall submit to the Commission and to the Committee 
on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban 
Affairs of the Senate an annual report that describes 
the activities and evaluates the effectiveness of the En-
forcement Ombudsman during the preceding year.’’. 
(b) DEADLINE FOR INITIAL APPOINTMENT.—The Secu-
rities and Exchange Commission shall appoint the initial 
Enforcement Ombudsman under subsection (i) of section 4 
of the Securities Exchange Act of 1934, as added by sub-
section (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 following: 
‘‘(k) ADEQUATE NOTICE REQUIRED BEFORE BRING-
ING AN ENFORCEMENT ACTION.— 
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‘‘(1) IN GENERAL.—No person shall be subject to 
an enforcement action by the Commission for an al-
leged 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 regulation. 
‘‘(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 Commission ap-
proved a statement or guidance, in accordance with 
Section 4I, with respect to the conduct that is the sub-
ject of the enforcement action, prior to the time that 
the person engaged in the conduct 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.— 
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(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 recommendations to 
the Commission regarding changes to such poli-
cies and practices. 
(B) SPECIFIC MATTERS INCLUDED.—In car-
rying out subparagraph (A), the Committee shall 
analyze and make recommendations to the Com-
mission regarding matters including the fol-
lowing: 
(i) How the Commission’s enforcement 
objectives and strategies may be more effec-
tive. 
(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, 
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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 voluntary 
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 sanctions 
imposed by the Commission proceedings. 
(2) REPORT.—Not later than 1 year after the es-
tablishment of the Committee under subsection (a), 
the Committee shall submit to the Commission and 
the appropriate congressional committees a report 
containing the results of the analysis and the rec-
ommendations 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. 
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(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 es-
tablished by subsection (a) shall terminate on the date that 
the report required by subsection (b)(2) is submitted. 
(f) CONSIDERATION AND ADOPTION OF RECOMMENDA-
TIONS BY COMMISSION.—Not later than 180 days after the 
Committee submits the report required by subsection (b)(2), 
the Commission shall— 
(1) consider the analysis and recommendations 
included in such report; 
(2) adopt such recommendations, with any modi-
fications, as the Commission considers appropriate; 
and 
(3) submit to the appropriate congressional com-
mittees 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 Commission 
does not consider it appropriate or does not have 
sufficient authority to adopt the recommendation 
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or to adopt the recommendation without mate-
rial modification. 
(g) DEFINITIONS.—In this section: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means the Committee on Financial Services of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate. 
(2) CHAIRMAN.—The term ‘‘Chairman’’ means 
the Chairman of the Commission. 
(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-
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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 concerning 
such recommendation and to be represented by counsel at 
such presentation, at the individual’s own expense. 
(b) ATTENDANCE BY COMMISSIONERS.—Such process 
shall provide that each Commissioner of the Commission, 
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 Com-
missioner a written report on any such presentation, in-
cluding 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 Exchange 
Commission shall approve, by vote of the Commission, and 
publish an updated manual that sets forth the policies and 
practices that the Commission will follow in the enforce-
ment of the securities laws (as defined in section 3(a) of 
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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 en-
forcement 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 of this 
Act, and each year thereafter, and the Securities and Ex-
change Commission shall transmit to Congress and publish 
on its Internet website an annual enforcement plan and re-
port 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, includ-
ing an assessment of how such activities comported 
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 enforce-
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ment program, including whether and how the Com-
mission has alerted or communicated with those who 
may be subject to the Commission’s regulation 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 
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 securities 
law, to which section 554 of title 5, United States Code, 
applies, and against whom an order imposing a cease and 
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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 proceeding, and at that per-
son’s discretion, require the Commission to terminate the 
proceeding. 
‘‘(b) CIVIL ACTION AUTHORIZED.—If a person re-
quires the Commission to terminate a proceeding pursuant 
to subsection (a), the Commission may bring a civil action 
against that person for the same remedy that might be im-
posed. 
‘‘(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: 
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‘‘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-
nomic and Risk Analysis and certified by the Chief Econo-
mist, of whether— 
‘‘(1) the alleged violation resulted in direct eco-
nomic benefit to the issuer; and 
‘‘(2) the penalty will harm the shareholders of 
the issuer.’’. 
SEC. 825. REPEAL OF AUTHORITY OF THE COMMISSION TO 
PROHIBIT PERSONS FROM SERVING AS OFFI-
CERS OR DIRECTORS. 
(a) UNDER SECURITIES ACT OF 1933.—Subsection (f) 
of section 8A of the Securities Act of 1933 (15 U.S.C. 77h– 
1) is repealed. 
(b) UNDER SECURITIES EXCHANGE ACT OF 1934.— 
Subsection (f) of section 21C of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u–3) is repealed. 
SEC. 826. SUBPOENA DURATION AND RENEWAL. 
Section 21(b) of the Securities Exchange Act of 1934 
(15 U.S.C. 78u(b)) is amended— 
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(1) by inserting ‘‘SUBPOENA.—’’ after the enu-
merator; 
(2) by striking ‘‘For the purpose of’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—For the purpose of’’; and 
(3) by adding at the end the following: 
‘‘(2) OMNIBUS ORDERS OF INVESTIGATION.— 
‘‘(A) DURATION AND RENEWAL.—An omni-
bus order of investigation shall not be for an in-
definite duration and may be renewed only by 
Commission action. 
‘‘(B) DEFINITION.—In paragraph (A), the 
term ‘omnibus order of investigation’ means an 
order of the Commission authorizing 1 of more 
members of the Commission or its staff to issue 
subpoenas under paragraph (1) to multiple per-
sons in relation to a particular subject matter 
area.’’. 
SEC. 827. ELIMINATION OF AUTOMATIC DISQUALIFICA-
TIONS. 
The Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.), as amended by this Act, is further amended by in-
serting after section 4F the following: 
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‘‘SEC. 4G. ELIMINATION OF AUTOMATIC DISQUALIFICA-
TIONS. 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, a non-natural person may not be disqualified 
or otherwise made ineligible to use an exemption or reg-
istration provision, engage in an activity, or qualify for 
any similar treatment under a provision of the securities 
laws or the rules issued by the Commission under the securi-
ties laws by reason of having, or a person described in sub-
section (b) having, been convicted of any felony or mis-
demeanor or made the subject of any judicial or adminis-
trative order, judgment, or decree arising out of a govern-
mental action (including an order, judgment, or decree 
agreed to in a settlement), or having, or a person described 
in subsection (b) having, been suspended or expelled from 
membership in, or suspended or barred from association 
with a member of, a registered national securities exchange 
or a registered national or affiliated securities association 
for any act or omission to act constituting conduct incon-
sistent with just and equitable principles of trade, unless 
the Commission, by order, on the record after notice and 
an opportunity for hearing, makes a determination that 
such non-natural person should be so disqualified or other-
wise made ineligible for purposes of such provision. 
‘‘(b) PERSON DESCRIBED.—A person is described in 
this subsection if the person is— 
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‘‘(1) a natural person who is a director, officer, 
employee, partner, member, or shareholder of the non- 
natural person referred to in subsection (a) or is oth-
erwise associated or affiliated with such non-natural 
person in any way; or 
‘‘(2) a non-natural person who is associated or 
affiliated with the non-natural person referred to in 
subsection (a) in any way. 
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit any authority of the Com-
mission, by order, on the record after notice and an oppor-
tunity for hearing, to prohibit a person from using an ex-
emption or registration provision, engaging in an activity, 
or qualifying for any similar treatment under a provision 
of the securities laws, or the rules issued by the Commission 
under the securities laws, by reason of a circumstance re-
ferred to in subsection (a) or any similar circumstance.’’. 
SEC. 828. DENIAL OF AWARD TO CULPABLE WHISTLE-
BLOWERS. 
Section 21F(c) of the Securities Exchange Act of 1934 
(15 U.S.C. 78u–6(c)) is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
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(B) in subparagraph (D), by striking the 
period and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(E) to any whistleblower who is respon-
sible for, or complicit in, the violation of the se-
curities laws for which the whistleblower pro-
vided information to the Commission.’’; and 
(2) by adding at the end the following: 
‘‘(3) DEFINITION.—For purposes of paragraph 
(2)(E), a person is responsible for, or complicit in, a 
violation of the securities laws if, with the intent to 
promote or assist the violation, the person— 
‘‘(A) procures, induces, or causes another 
person to commit the offense; 
‘‘(B) aids or abets another person in com-
mitting the offense; or 
‘‘(C) having a duty to prevent the violation, 
fails to make an effort the person is required to 
make.’’. 
SEC. 829. CONFIDENTIALITY OF RECORDS OBTAINED FROM 
FOREIGN SECURITIES AND LAW ENFORCE-
MENT AUTHORITIES. 
Section 24(d) of the Securities Exchange Act of 1934 
(15 U.S.C. 78x(d)) is amended to read as follows: 
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‘‘(d) RECORDS OBTAINED FROM FOREIGN SECURITIES 
AND LAW ENFORCEMENT AUTHORITIES.—Except as pro-
vided in subsection (g), the Commission shall not be com-
pelled to disclose records obtained from a foreign securities 
authority, or from a foreign law enforcement authority as 
defined in subsection (f)(4), if— 
‘‘(1) the foreign securities authority or foreign 
law enforcement authority has in good faith deter-
mined and represented to the Commission that the 
records are confidential under the laws of the country 
of such authority; and 
‘‘(2) the Commission obtains such records pursu-
ant to— 
‘‘(A) such procedure as the Commission 
may authorize for use in connection with the ad-
ministration or enforcement of the securities 
laws; or 
‘‘(B) a memorandum of understanding. 
For purposes of section 552 of title 5, United States Code, 
this subsection shall be considered a statute described in 
subsection (b)(3)(B) of such section 552.’’. 
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SEC. 830. CLARIFICATION OF AUTHORITY TO IMPOSE SANC-
TIONS ON PERSONS ASSOCIATED WITH A 
BROKER OR DEALER. 
Section 15(b)(6)(A)(i) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78o(b)(6)(A)(i)) is amended by striking 
‘‘enumerated’’ and all that follows and inserting ‘‘enumer-
ated in subparagraph (A), (D), (E), (G), or (H) of para-
graph (4) of this subsection;’’. 
SEC. 831. COMPLAINT AND BURDEN OF PROOF REQUIRE-
MENTS FOR CERTAIN ACTIONS FOR BREACH 
OF FIDUCIARY DUTY. 
Section 36(b) of the Investment Company Act of 1940 
(15 U.S.C. 80a–35(b)) is amended by adding at the end 
the following: 
‘‘(7) In any such action brought by a security 
holder of a registered investment company on behalf 
of such company— 
‘‘(A) the complaint shall state with particu-
larity all facts establishing a breach of fiduciary 
duty, and, if an allegation of any such facts is 
based on information and belief, the complaint 
shall state with particularity all facts on which 
that belief is formed; and 
‘‘(B) such security holder shall have the bur-
den of proving a breach of fiduciary duty by 
clear and convincing evidence.’’. 
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SEC. 832. CONGRESSIONAL ACCESS TO INFORMATION HELD 
BY 
THE 
PUBLIC 
COMPANY 
ACCOUNTING 
OVERSIGHT BOARD. 
Section 105(b)(5) of the Sarbanes-Oxley Act of 2002 
(15 U.S.C. 7215(b)(5)) is amended— 
(1) in subparagraph (A), by striking ‘‘subpara-
graphs (B) and (C)’’ and inserting ‘‘subparagraphs 
(B), (C) and (D)’’; and 
(2) by adding at the end the following: 
‘‘(D) AVAILABILITY TO THE CONGRESSIONAL 
COMMITTEES.—The Board shall make available 
to the Committees specified under section 
101(h)— 
‘‘(i) such information as the Commit-
tees shall request; and 
‘‘(ii) with respect to any confidential 
or privileged information provided in re-
sponse to a request under clause (i), includ-
ing any information subject to section 
104(g) and subparagraph (A), or any con-
fidential or privileged information provided 
orally in response to such a request, such 
information shall maintain the protections 
provided in subparagraph (A), and shall re-
tain its confidential and privileged status 
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in the hands of the Board and the Commit-
tees.’’. 
SEC. 833. ABOLISHING INVESTOR ADVISORY GROUP. 
The Public Company Accounting Oversight Board 
shall abolish the Investor Advisory Group. 
SEC. 834. REPEAL OF REQUIREMENT FOR PUBLIC COMPANY 
ACCOUNTING OVERSIGHT BOARD TO USE 
CERTAIN FUNDS FOR MERIT SCHOLARSHIP 
PROGRAM. 
(a) IN GENERAL.—Section 109(c) of the Sarbanes- 
Oxley Act of 2002 (15 U.S.C. 7219(c)) is amended by strik-
ing paragraph (2). 
(b) CONFORMING AMENDMENTS.—Section 109 of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7219) is amended— 
(1) in subsection (c), by striking ‘‘USES
OF 
FUNDS’’ and all that follows through ‘‘The budget’’ 
and inserting ‘‘USES OF FUNDS.—The budget’’; and 
(2) in subsection (f), by striking ‘‘subsection 
(c)(1)’’ and inserting ‘‘subsection (c)’’. 
SEC. 835. REALLOCATION OF FINES FOR VIOLATIONS OF 
RULES OF MUNICIPAL SECURITIES RULE-
MAKING BOARD. 
(a) IN GENERAL.—Section 15B(c)(9) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o–4(c)(9)) is amended 
to read as follows: 
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‘‘(9) Fines collected for violations of the rules of the 
Board shall be deposited and credited as general revenue 
of the Treasury, except as otherwise provided in section 308 
of the Sarbanes-Oxley Act of 2002 or section 21F of this 
title.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to fines collected after the date of 
enactment of this Act. 
Subtitle B—Eliminating Excessive 
Government 
Intrusion 
in 
the 
Capital Markets 
SEC. 841. REPEAL OF DEPARTMENT OF LABOR FIDUCIARY 
RULE AND REQUIREMENTS PRIOR TO RULE-
MAKING RELATING TO STANDARDS OF CON-
DUCT FOR BROKERS AND DEALERS. 
(a) REPEAL OF DEPARTMENT OF LABOR FIDUCIARY 
RULE.—The final rule of the Department of Labor titled 
‘‘Definition of the Term ‘Fiduciary’; Conflict of Interest 
Rule—Retirement Investment Advice’’ and related prohib-
ited transaction exemptions published April 8, 2016 (81 
Fed. Reg. 20946) shall have no force or effect. 
(b) STAY
ON
RULES
DEFINING
CERTAIN
FIDU-
CIARIES.—After the date of enactment of this Act, the Sec-
retary of Labor shall not prescribe any regulation under 
the Employee Retirement Income Security Act of 1974 (29 
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448 
U.S.C. 1001 et seq.) defining the circumstances under which 
an individual is considered a fiduciary until the date that 
is 60 days after the Securities and Exchange Commission 
issues a final rule relating to standards of conduct for bro-
kers and dealers pursuant to the second subsection (k) of 
section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 
78o(k)). 
(c) REQUIREMENT AFTER STAY.—If, after the stay de-
scribed under subsection (b), the Secretary of Labor pre-
scribes a regulation described under such subsection, the 
Secretary of Labor shall prescribe a substantially identical 
definition of what constitutes fiduciary investment advice 
and impose substantially identical standards of care and 
conditions as the Securities and Exchange Commission has 
imposed on brokers, dealers, or investment advisers. 
(d) REQUIREMENTS PRIOR TO RULEMAKING RELAT-
ING TO STANDARDS OF CONDUCT FOR BROKERS AND DEAL-
ERS.—The second subsection (k) of section 15 of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o(k)), as added by 
section 913(g)(1) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5301 et seq.), is 
amended by adding at the end the following: 
‘‘(3) REQUIREMENTS PRIOR TO RULEMAKING.— 
The Commission shall not promulgate a rule pursu-
ant to paragraph (1) before providing a report to the 
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Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate describing whether— 
‘‘(A) retail investors (and such other cus-
tomers as the Commission may provide) are 
being harmed due to brokers or dealers operating 
under different standards of conduct than those 
that apply to investment advisors under section 
211 of the Investment Advisers Act of 1940 (15 
U.S.C. 80b–11); 
‘‘(B) alternative remedies will reduce any 
confusion or harm to retail investors due to bro-
kers or dealers operating under different stand-
ards of conduct than those standards that apply 
to investment advisors under section 211 of the 
Investment Advisers Act of 1940 (15 U.S.C. 80b– 
11), including— 
‘‘(i) simplifying the titles used by bro-
kers, dealers, and investment advisers; and 
‘‘(ii) enhancing disclosure surrounding 
the different standards of conduct currently 
applicable to brokers, dealers, and invest-
ment advisers; 
‘‘(C) the adoption of a uniform fiduciary 
standard of conduct for brokers, dealers, and in-
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vestment advisors would adversely impact the 
commissions of brokers and dealers, the avail-
ability of proprietary products offered by brokers 
and dealers, and the ability of brokers and deal-
ers to engage in principal transactions with cus-
tomers; and 
‘‘(D) the adoption of a uniform fiduciary 
standard of conduct for brokers or dealers and 
investment advisors would adversely impact re-
tail investor access to personalized and cost-effec-
tive investment advice, recommendations about 
securities, or the availability of such advice and 
recommendations. 
‘‘(4) ECONOMIC
ANALYSIS.—The Commission’s 
conclusions contained in the report described in para-
graph (3) shall be supported by economic analysis. 
‘‘(5) REQUIREMENTS
FOR
PROMULGATING
A 
RULE.—The Commission shall publish in the Federal 
Register alongside the rule promulgated pursuant to 
paragraph (1) formal findings that such rule would 
reduce confusion or harm to retail customers (and 
such other customers as the Commission may by rule 
provide) due to different standards of conduct appli-
cable to brokers, dealers, and investment advisors. 
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‘‘(6) REQUIREMENTS UNDER INVESTMENT ADVIS-
ERS ACT OF 1940.—In proposing rules under para-
graph (1) for brokers or dealers, the Commission shall 
consider the differences in the registration, super-
vision, and examination requirements applicable to 
brokers, dealers, and investment advisors.’’. 
SEC. 842. EXEMPTION FROM RISK RETENTION REQUIRE-
MENTS FOR NONRESIDENTIAL MORTGAGE. 
(a) IN GENERAL.—Section 15G of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o–11) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3)(B), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (4)(B), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) the term ‘asset-backed security’ refers only 
to an asset-backed security that is comprised wholly 
of residential mortgages.’’; 
(2) in subsection (b)— 
(A) by striking paragraph (1); and 
(B) by striking ‘‘(2) RESIDENTIAL MORT-
GAGES.—’’; 
(3) by striking subsection (h) and redesignating 
subsection (i) as subsection (h); and 
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(4) in subsection (h) (as so redesignated)— 
(A) by striking ‘‘effective—’’ and all that 
follows through ‘‘(1) with respect to’’ and insert-
ing ‘‘effective with respect to’’; 
(B) in paragraph (1), by striking ‘‘; and’’ 
and inserting a period; and 
(C) by striking paragraph (2). 
(b) CONFORMING AMENDMENT.—Section 941 of the 
Dodd-Frank Wall Street Reform and Consumer Protection 
Act is amended by striking subsection (c). 
SEC. 843. FREQUENCY OF SHAREHOLDER APPROVAL OF EX-
ECUTIVE COMPENSATION. 
Section 14A(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78n–1(a)) is amended— 
(1) in paragraph (1), by striking ‘‘Not less fre-
quently than once every 3 years’’ and inserting ‘‘Each 
year in which there has been a material change to the 
compensation of executives of an issuer from the pre-
vious year’’; and 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2). 
SEC. 844. SHAREHOLDER PROPOSALS. 
(a) RESUBMISSION
THRESHOLDS.—The Securities 
and Exchange Commission shall revise section 240.14a– 
8(i)(12) of title 17, Code of Federal Regulations to— 
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(1) in paragraph (i), adjust the 3 percent thresh-
old to 6 percent; 
(2) in paragraph (ii), adjust the 6 percent 
threshold to 15 percent; and 
(3) in paragraph (iii), adjust the 10 percent 
threshold to 30 percent. 
(b) HOLDING REQUIREMENT.—The Securities and Ex-
change Commission shall revise the holding requirement for 
a shareholder to be eligible to submit a shareholder proposal 
to an issuer in section 240.14a–8(b)(1) of title 17, Code of 
Federal Regulations, to— 
(1) eliminate the option to satisfy the holding re-
quirement by holding a certain dollar amount; 
(2) require the shareholder to hold 1 percent of 
the issuer’s securities entitled to be voted on the pro-
posal, or such greater percentage as determined by the 
Commission; and 
(3) adjust the 1 year holding period to 3 years. 
(c) SHAREHOLDER PROPOSALS ISSUED
BY PROX-
IES.—Section 14 of the Securities Exchange Act of 1934 
(15 U.S.C. 78n) is amended by adding at the end the fol-
lowing: 
‘‘(j) SHAREHOLDER PROPOSALS
BY PROXIES NOT 
PERMITTED.—An issuer may not include in its proxy ma-
terials a shareholder proposal submitted by a person in such 
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person’s capacity as a proxy, representative, agent, or per-
son otherwise acting on behalf of a shareholder.’’. 
SEC. 845. PROHIBITION ON REQUIRING A SINGLE BALLOT. 
Section 14 of the Securities Exchange Act of 1934 (15 
U.S.C. 78n) is amended by adding at the end the following: 
‘‘(k) PROHIBITION
ON REQUIRING
A SINGLE BAL-
LOT.—The Commission may not require that a solicitation 
of a proxy, consent, or authorization to vote a security of 
an issuer in an election of members of the board of directors 
of the issuer be made using a single ballot or card that lists 
both individuals nominated by (or on behalf of) the issuer 
and individuals nominated by (or on behalf of) other pro-
ponents and permits the person granting the proxy, consent, 
or authorization to select from among individuals in both 
groups.’’. 
SEC. 846. REQUIREMENT FOR MUNICIPAL ADVISOR FOR 
ISSUERS OF MUNICIPAL SECURITIES. 
Section 15B(d) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–4(d)) is amended by adding at the end the 
following: 
‘‘(3) An issuer of municipal securities shall not be re-
quired to retain a municipal advisor prior to issuing any 
such securities.’’. 
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SEC. 847. SMALL ISSUER EXEMPTION FROM INTERNAL CON-
TROL EVALUATION. 
Section 404(c) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7262(c)) is amended to read as follows: 
‘‘(c) EXEMPTION FOR SMALLER ISSUERS.—Subsection 
(b) shall not apply with respect to any audit report pre-
pared for an issuer that has total market capitalization of 
less than $500,000,000, nor to any issuer that is a deposi-
tory institution with assets of less than $1,000,000,000.’’. 
SEC. 848. STREAMLINING OF APPLICATIONS FOR AN EX-
EMPTION FROM THE INVESTMENT COMPANY 
ACT OF 1940. 
Section 6(c) of the Investment Company Act of 1940 
(15 U.S.C. 80a–6(c)) is amended— 
(1) by striking ‘‘(c) The Commission’’ and in-
serting the following: 
‘‘(c) GENERAL EXEMPTIVE AUTHORITY.— 
‘‘(1) IN GENERAL.—The Commission’’; and 
(2) by adding at the end the following: 
‘‘(2) APPLICATION PROCESS.— 
‘‘(A) IN GENERAL.—A person who wishes to 
receive an exemption from the Commission pur-
suant to paragraph (1) shall file an application 
with the Commission in such form and manner 
and containing such information as the Commis-
sion may require. 
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456 
‘‘(B) PUBLICATION; REJECTION OF INVALID 
APPLICATIONS.— 
‘‘(i) IN GENERAL.—Not later than the 
end of the 5-day period beginning on the 
date that the Commission receives an appli-
cation under subparagraph (A), the Com-
mission shall either— 
‘‘(I) publish the application, in-
cluding by publication on the website 
of the Commission; or 
‘‘(II) if the Commission deter-
mines that the application does not 
comply with the proper form, manner, 
or information requirements described 
under subparagraph (A), reject such 
application and notify the applicant of 
the specific reasons the application was 
rejected. 
‘‘(ii) FAILURE TO PUBLISH APPLICA-
TION.—If the Commission does not reject an 
application under clause (i)(II), but fails to 
publish the application by the end of the 
time period specified under clause (i), such 
application shall be deemed to have been 
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published on the date that is the end of such 
time period. 
‘‘(3) DETERMINATION BY COMMISSION.— 
‘‘(A) IN GENERAL.—Not later than 45 days 
after the date that the Commission publishes an 
application pursuant to paragraph (2)(B), the 
Commission shall, by order— 
‘‘(i) approve the application; 
‘‘(ii) if the Commission determines 
that the application would have been ap-
proved had the applicant provided addi-
tional supporting documentation or made 
certain amendments to the application— 
‘‘(I) provide the applicant with 
the specific additional supporting doc-
umentation or amendments that the 
Commission believes are necessary for 
the applicant to provide in order for 
the application to be approved; and 
‘‘(II) request that the applicant 
withdraw the application and re-sub-
mit the application with such addi-
tional supporting documentation and 
amendments; or 
‘‘(iii) deny the application. 
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‘‘(B) EXTENSION
OF
TIME
PERIOD.—The 
Commission may extend the time period de-
scribed under subparagraph (A) by not more 
than an additional 45 days, if— 
‘‘(i) the Commission determines that a 
longer period is appropriate and publishes 
the reasons for such determination; or 
‘‘(ii) the applicant consents to the 
longer period. 
‘‘(C) TIME PERIOD FOR WITHDRAWAL.—If 
the Commission makes a request under subpara-
graph (A)(ii) for an applicant to withdraw an 
application, such application shall be deemed to 
be denied if the applicant informs the Commis-
sion that the applicant will not withdraw the 
application or if the applicant does not with-
draw the application before the end of the 30-day 
period beginning on the date the Commission 
makes such request. 
‘‘(4) PROCEEDINGS; NOTICE AND HEARING.—If 
an application is denied pursuant to paragraph (3), 
the Commission shall provide the applicant with— 
‘‘(A) a written explanation for why the ap-
plication was not approved; and 
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‘‘(B) an opportunity for hearing, if re-
quested by the applicant not later than 20 days 
after the date of such denial, with such hearing 
to be commenced not later than 30 days after the 
date of such denial. 
‘‘(5) RESULT
OF
FAILURE
TO
INSTITUTE
OR 
COMMENCE PROCEEDINGS.—An application shall be 
deemed to have been approved by the Commission, 
if— 
‘‘(A) the Commission fails to either approve, 
request the withdrawal of, or deny the applica-
tion, as required under paragraph (3)(A), within 
the time period required under paragraph 
(3)(A), as such time period may have been ex-
tended pursuant to paragraph (3)(B); or 
‘‘(B) the applicant requests an opportunity 
for hearing, pursuant to paragraph (4)(B), but 
the Commission does not commence such hearing 
within the time period required under para-
graph (4)(B). 
‘‘(6) RULEMAKING.—Not later than 180 days 
after the date of enactment of this paragraph, the 
Commission shall issue rules to carry out this sub-
section.’’. 
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SEC. 849. RESTRICTION ON RECOVERY OF ERRONEOUSLY 
AWARDED COMPENSATION. 
Section 10D(b)(2) of the Securities Exchange Act of 
1934 (15 U.S.C. 78j–4(b)(2)) is amended by inserting before 
the period the following: ‘‘, where such executive officer had 
control or authority over the financial reporting that re-
sulted in the accounting restatement’’. 
SEC. 850. EXEMPTIVE AUTHORITY FOR CERTAIN PROVI-
SIONS RELATING TO REGISTRATION OF NA-
TIONALLY RECOGNIZED STATISTICAL RATING 
ORGANIZATIONS. 
Section 15E of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–7) is amended by adding at the end the 
following: 
‘‘(w) COMMISSION
EXEMPTIVE
AUTHORITY.—The 
Commission, by rules and regulations upon its own motion, 
or by order upon application, may conditionally or uncon-
ditionally exempt any person from any provision or provi-
sions of this title or of any rule or regulation thereunder, 
if and to the extent it determines that such rule, regulation, 
or requirement is creating a barrier to entry into the mar-
ket for nationally recognized statistical rating organiza-
tions or impeding competition among such organizations, 
or that such an exemption is necessary or appropriate in 
the public interest and is consistent with the protection of 
investors.’’. 
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SEC. 851. RISK-BASED EXAMINATIONS OF NATIONALLY REC-
OGNIZED STATISTICAL RATING ORGANIZA-
TIONS. 
Section 15E(p)(3) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o–7(p)(3)) is amended— 
(1) in subparagraph (A)— 
(A) in the heading, by striking ‘‘ANNUAL’’ 
and inserting ‘‘RISK-BASED’’; 
(B) by striking ‘‘an examination’’ and in-
serting ‘‘examinations’’; and 
(C) by striking ‘‘at least annually’’; and 
(2) in subparagraph (B), in the matter pre-
ceding clause (i), by inserting ‘‘, as appropriate,’’ 
after ‘‘Each examination under subparagraph (A) 
shall include’’. 
SEC. 852. TRANSPARENCY OF CREDIT RATING METHODOLO-
GIES. 
Section 15E(s) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–7(s)) is amended— 
(1) in paragraph (2)(B), by inserting before the 
semicolon the following: ‘‘rated by the nationally rec-
ognized statistical rating agency’’; and 
(2) in paragraph (3)— 
(A) in subparagraph (A)(ix), by inserting 
before the period the following: ‘‘, except that the 
Commission may not require the inclusion of ref-
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462 
erences to statutory or regulatory requirements 
or statutory provision headings or enumerators 
for any specific disclosure’’; 
(B) in subparagraph (B)(iv), by inserting 
before the period the following: ‘‘, except that the 
Commission may not require the inclusion of ref-
erences to statutory or regulatory requirements 
or statutory provision headings or enumerators 
for any specific disclosure’’; and 
(C) by adding at the end the following: 
‘‘(C) NO MANDATE ON THE ORGANIZATION 
OF
DISCLOSURES.—The Commission may not 
mandate the specific organization of the disclo-
sures required under this paragraph.’’. 
SEC. 853. REPEAL OF CERTAIN ATTESTATION REQUIRE-
MENTS RELATING TO CREDIT RATINGS. 
Section 15E of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–7) is amended— 
(1) in subsection (c)(3)(B)— 
(A) in clause (i), by adding ‘‘and’’ at the 
end; 
(B) in clause (ii), by striking ‘‘; and’’ and 
inserting a period; and 
(C) by striking clause (iii); and 
(2) in subsection (q)(2)— 
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463 
(A) in subparagraph (D), by adding ‘‘and’’ 
at the end; 
(B) in subparagraph (E), by striking ‘‘; 
and’’ and inserting a period; and 
(C) by striking subparagraph (F). 
SEC. 854. LOOK-BACK REVIEW BY NRSRO. 
Section 15E(h)(4)(A) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78o–7(h)(4)(A)) is amended— 
(1) by striking ‘‘Each nationally’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—Each nationally’’; 
(2) by striking ‘‘underwriter’’ and inserting 
‘‘lead underwriter’’; 
(3) by striking ‘‘in any capacity’’; 
(4) by striking ‘‘during the 1-year period pre-
ceding the date an action was taken with respect to 
the credit rating’’; 
(5) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively, and adjusting the 
margin of such subclauses accordingly; 
(6) in subclause (I), as so redesignated, by in-
serting before the semicolon the following: ‘‘during the 
1-year period preceding the departure of the employee 
from the nationally recognized statistical rating orga-
nization’’; and 
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(7) by adding at the end the following: 
‘‘(ii) MAINTENANCE
OF
RATINGS
AC-
TIONS.—In the case of maintenance of rat-
ings actions, the requirement under clause 
(i) shall only apply to employees of a per-
son subject to a credit rating of the nation-
ally recognized statistical rating organiza-
tion or an issuer of a security or money 
market instrument subject to a credit rating 
of the nationally recognized statistical rat-
ing organization.’’. 
SEC. 855. APPROVAL OF CREDIT RATING PROCEDURES AND 
METHODOLOGIES. 
Section 15E(r)(1)(A) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78o–7(r)(1)(A)) is amended by inserting 
‘‘, or the Chief Credit Officer’’ after ‘‘performing a function 
similar to that of a board’’. 
SEC. 856. EXCEPTION FOR PROVIDING CERTAIN MATERIAL 
INFORMATION RELATING TO A CREDIT RAT-
ING. 
Section 15E(h)(3) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o–7(h)(3)) is amended by adding at the 
end the following: 
‘‘(C) EXCEPTION FOR PROVIDING CERTAIN 
MATERIAL
INFORMATION.—Rules issued under 
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this paragraph may not prohibit a person who 
participates in sales or marketing of a product 
or service of a nationally recognized statistical 
rating organization from providing material in-
formation, or information believed in good faith 
to be material, to the issuance or maintenance of 
a credit rating to a person who participates in 
determining or monitoring the credit rating, or 
developing or approving procedures or meth-
odologies used for determining the credit rating, 
so long as the information provided is not in-
tended to influence the determination of a credit 
rating, or the procedures or methodologies used 
to determine credit ratings.’’. 
SEC. 857. REPEALS. 
(a) REPEALS.—The following provisions of title IX of 
the Dodd-Frank Wall Street Reform and Consumer Protec-
tion Act are repealed, and the provisions of law amended 
or repealed by such sections are restored or revived as if 
such sections had not been enacted: 
(1) Section 912. 
(2) Section 914. 
(3) Section 917. 
(4) Section 918. 
(5) Section 919A. 
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(6) Section 919B. 
(7) Section 919C. 
(8) Section 921. 
(9) Section 929T. 
(10) Section 929X. 
(11) Section 929Y. 
(12) Section 929Z. 
(13) Section 931. 
(14) Section 933. 
(15) Section 937. 
(16) Section 939B. 
(17) Section 939C. 
(18) Section 939D. 
(19) Section 939E. 
(20) Section 939F. 
(21) Section 939G. 
(22) Section 939H. 
(23) Section 946. 
(24) Subsection (b) of section 953. 
(25) Section 955. 
(26) Section 956. 
(27) Section 964. 
(28) Section 965. 
(29) Section 968. 
(30) Section 971. 
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(31) Section 972. 
(32) Section 976. 
(33) Section 977. 
(34) Section 978. 
(35) Section 984. 
(36) Section 989. 
(37) Section 989A. 
(38) Section 989F. 
(39) Subsection (b) of section 989G. 
(40) Section 989I. 
(b) CONFORMING AMENDMENTS.—The Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 
U.S.C. 5301) is amended— 
(1) in the table of contents in section 1(b), by 
striking the items relating to the sections described 
under paragraphs (1) through (23), (25) through (38), 
and (40) of subsection (a); 
(2) in section 953, by striking ‘‘(a) DISCLOSURE 
OF PAY VERSUS PERFORMANCE.—’’; and 
(3) in section 989G, by striking ‘‘(a) EXEMP-
TION.—’’. 
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SEC. 858. EXEMPTION OF AND REPORTING BY PRIVATE EQ-
UITY FUND ADVISERS. 
Section 203 of the Investment Advisers Act of 1940 (15 
U.S.C. 80b–3) is amended by adding at the end the fol-
lowing: 
‘‘(o) EXEMPTION OF AND REPORTING BY PRIVATE EQ-
UITY FUND ADVISERS.— 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, no investment adviser shall be subject to 
the registration or reporting requirements of this title 
with respect to the provision of investment advice re-
lating to a private equity fund. 
‘‘(2) MAINTENANCE OF RECORDS AND ACCESS BY 
COMMISSION.—Not later than 6 months after the date 
of enactment of this subsection, the Commission shall 
issue final rules— 
‘‘(A) to require investment advisers de-
scribed in paragraph (1) to maintain such 
records and provide to the Commission such an-
nual or other reports as the Commission, taking 
into account fund size, governance, investment 
strategy, risk, and other factors, determines nec-
essary and appropriate in the public interest 
and for the protection of investors; and 
‘‘(B) to define the term ‘private equity fund’ 
for purposes of this subsection.’’. 
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469 
SEC. 859. RECORDS AND REPORTS OF PRIVATE FUNDS. 
The Investment Advisers Act of 1940 (15 U.S.C. 80b– 
1 et seq.) is amended— 
(1) in section 204(b)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘investors,’’ and all that follows and insert-
ing ‘‘investors.’’; 
(ii) by striking subparagraph (B); and 
(iii) by striking ‘‘this title—’’ and all 
that follows through ‘‘to maintain’’ and in-
serting ‘‘this title to maintain’’; 
(B) in paragraph (3)(H)— 
(i) by striking ‘‘, in consultation with 
the Council,’’; and 
(ii) by striking ‘‘or for the assessment 
of systemic risk’’; 
(C) in paragraph (4), by striking ‘‘, or for 
the assessment of systemic risk’’; 
(D) in paragraph (5), by striking ‘‘or for 
the assessment of systemic risk’’; 
(E) in paragraph (6)(A)(ii), by striking ‘‘, 
or for the assessment of systemic risk’’; 
(F) by striking paragraph (7) and redesig-
nating paragraphs (8) through (11) as para-
graphs (7) through (10), respectively; and 
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(G) in paragraph (8) (as so redesignated), 
by striking ‘‘paragraph (8)’’ and inserting 
‘‘paragraph (7)’’; and 
(2) in section 211(e)— 
(A) by striking ‘‘after consultation with the 
Council but’’; and 
(B) by striking ‘‘subsection 204(b)’’ and in-
serting ‘‘section 204(b)’’. 
SEC. 860. DEFINITION OF ACCREDITED INVESTOR. 
(a) IN GENERAL.—Section 2(a)(15) of the Securities 
Act of 1933 (15 U.S.C. 77b(a)(15)) is amended— 
(1) by redesignating clauses (i) and (ii) as sub-
paragraphs (A) and (F), respectively; and 
(2) in subparagraph (A) (as so redesignated), by 
striking ‘‘; or’’ at the end and inserting a semicolon, 
and inserting after such subparagraph the following: 
‘‘(B) any natural person whose individual 
net worth, or joint net worth with that person’s 
spouse, exceeds $1,000,000 (which amount, along 
with the amounts set forth in subparagraph (C), 
shall be adjusted for inflation by the Commission 
every 5 years to the nearest $10,000 to reflect the 
change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of 
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471 
Labor Statistics) where, for purposes of calcu-
lating net worth under this subparagraph— 
‘‘(i) the person’s primary residence 
shall not be included as an asset; 
‘‘(ii) indebtedness that is secured by 
the person’s primary residence, up to the es-
timated fair market value of the primary 
residence at the time of the sale of securities, 
shall not be included as a liability (except 
that if the amount of such indebtedness out-
standing at the time of sale of securities ex-
ceeds the amount outstanding 60 days be-
fore such time, other than as a result of the 
acquisition of the primary residence, the 
amount of such excess shall be included as 
a liability); and 
‘‘(iii) indebtedness that is secured by 
the person’s primary residence in excess of 
the estimated fair market value of the pri-
mary residence at the time of the sale of se-
curities shall be included as a liability; 
‘‘(C) any natural person who had an indi-
vidual income in excess of $200,000 in each of 
the 2 most recent years or joint income with that 
person’s spouse in excess of $300,000 in each of 
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those years and has a reasonable expectation of 
reaching the same income level in the current 
year; 
‘‘(D) any natural person who, by reason of 
their net worth or income, is an accredited inves-
tor under section 230.215 of title 17, Code of 
Federal Regulations (as in effect on the day be-
fore the date of enactment of this subparagraph); 
‘‘(E) any natural person who is currently 
licensed or registered as a broker or investment 
adviser by the Commission, the Financial Indus-
try Regulatory Authority, or an equivalent self- 
regulatory organization (as defined in section 
3(a)(26) of the Securities Exchange Act of 1934), 
or the securities division of a State or the equiv-
alent State division responsible for licensing or 
registration of individuals in connection with se-
curities activities; 
‘‘(F) any natural person the Commission 
determines, by regulation, to have demonstrable 
education or job experience to qualify such per-
son as having professional knowledge of a subject 
related to a particular investment, and whose 
education or job experience is verified by the Fi-
nancial Industry Regulatory Authority or an 
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473 
equivalent self-regulatory organization (as de-
fined in section 3(a)(26) of the Securities Ex-
change Act of 1934); or’’. 
(b) REPEAL.— 
(1) IN
GENERAL.—Section 413 of the Dodd- 
Frank Wall Street Reform and Consumer Protection 
Act (Public Law 111–203) is hereby repealed. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act is amended by 
striking the items relating to section 413. 
SEC. 861. REPEAL OF CERTAIN PROVISIONS REQUIRING A 
STUDY AND REPORT TO CONGRESS. 
(a) REPEAL.—The following provisions of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
are repealed: 
(1) Section 412. 
(2) Section 415. 
(3) Section 416. 
(4) Section 417. 
(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 items 
relating to sections 412, 415, 416, and 417. 
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474 
SEC. 862. REPEAL. 
(a) REPEAL.—The following sections of title XV of the 
Dodd-Frank Wall Street Reform and Consumer Protection 
Act are repealed, and the provisions of law amended or re-
pealed by such sections are restored or revived as if such 
sections had not been enacted: 
(1) Section 1502. 
(2) Section 1503. 
(3) Section 1504. 
(4) Section 1505. 
(5) Section 1506. 
(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 items 
relating to sections 1502, 1503, 1504, 1505, and 1506. 
Subtitle C—Harmonization of 
Derivatives Rules 
SEC. 871. COMMISSIONS REVIEW AND HARMONIZATION OF 
RULES RELATING TO THE REGULATION OF 
OVER-THE-COUNTER SWAPS MARKETS. 
The Securities and Exchange Commission and the 
Commodity Futures Trading Commission shall review each 
rule, order, and interpretive guidance issued by either such 
Commission pursuant to title VII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (15 U.S.C. 
8301 et seq.) and, where the Commissions find inconsist-
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encies in any such rules, orders, or interpretive guidance, 
shall jointly issue new rules, orders, or interpretive guid-
ance to resolve such inconsistencies. 
SEC. 872. TREATMENT OF TRANSACTIONS BETWEEN AFFILI-
ATES. 
(a) COMMODITY EXCHANGE ACT.—Section 1a(47) of 
the Commodity Exchange Act (7 U.S.C. 1a(47)) is amended 
by adding at the end the following: 
‘‘(G) TREATMENT OF SWAP TRANSACTIONS 
BETWEEN AFFILIATES.— 
‘‘(i) EXEMPTION FROM SWAP RULES.— 
Except as provided under clause (ii), the 
Commission may not regulate a swap under 
this Act if all of the following apply to such 
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 
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counterparty or the third party that, 
directly or indirectly, holds the major-
ity interests in both affiliated counter-
parties, reports its financial statements 
on a consolidated basis under generally 
accepted 
accounting 
principles 
or 
International 
Financial 
Reporting 
Standards, or other similar standards, 
and the financial statements include 
the financial results of the majority- 
owned 
affiliated 
counterparty 
or 
counterparties. 
‘‘(ii) REQUIREMENTS FOR EXEMPTED 
SWAPS.—With respect to a swap described 
under clause (i): 
‘‘(I) REPORTING REQUIREMENT.— 
If at least one counterparty is a swap 
dealer or major swap participant, that 
counterparty shall report the swap 
pursuant to section 4r, within such 
time period as the Commission may by 
rule or regulation prescribe— 
‘‘(aa) to a swap data reposi-
tory; or 
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477 
‘‘(bb) if there is no swap 
data repository that would accept 
the agreement, contract or trans-
action, to the Commission. 
‘‘(II) 
RISK
MANAGEMENT
RE-
QUIREMENT.—If 
at 
least 
one 
counterparty is a swap dealer or major 
swap participant, the swap shall be 
subject to a centralized risk manage-
ment program pursuant to section 4s(j) 
that is reasonably designed to monitor 
and to manage the risks associated 
with the swap. 
‘‘(III) ANTI-EVASION
REQUIRE-
MENT.—The swap shall not be struc-
tured to evade the Dodd-Frank Wall 
Street Reform and Consumer Protec-
tion Act in violation of any rule pro-
mulgated by the Commission pursuant 
to section 721(c) of such Act.’’. 
(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 subsection (b) 
the following: 
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478 
‘‘(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-
parties, reports its financial statements 
on a consolidated basis under generally 
accepted 
accounting 
principles 
or 
International 
Financial 
Reporting 
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479 
Standards, or other similar standards, 
and the financial statements 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 REQUIREMENT.— 
If at least one counterparty is a secu-
rity-based swap dealer or major secu-
rity-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 
‘‘(bb) if there is no security- 
based swap data repository that 
would accept the agreement, con-
tract or transaction, to the Com-
mission. 
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‘‘(II) 
RISK
MANAGEMENT
RE-
QUIREMENT.—If 
at 
least 
one 
counterparty is a security-based swap 
dealer or major security-based swap 
participant, the security-based swap 
shall be subject to a centralized risk 
management program pursuant to sec-
tion 15F(j) that is reasonably designed 
to monitor and to manage the risks as-
sociated with the security-based swap. 
‘‘(III) ANTI-EVASION
REQUIRE-
MENT.—The security-based swap shall 
not be structured to evade the Dodd- 
Frank Wall Street Reform and Con-
sumer Protection Act in violation of 
any rule promulgated by the Commis-
sion pursuant to section 761(b)(3) of 
such Act.’’. 
TITLE 
IX—REPEAL 
OF 
THE 
VOLCKER RULE AND OTHER 
PROVISIONS 
SEC. 901. REPEALS. 
(a) IN GENERAL.—The following sections of title VI 
of the Dodd-Frank Wall Street Reform and Consumer Pro-
tection Act are repealed, and the provisions of law amended 
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or repealed by such sections are restored or revived as if 
such sections had not been enacted: 
(1) Section 603. 
(2) Section 618. 
(3) Section 619. 
(4) Section 620. 
(5) Section 621. 
(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 
items relating to sections 603, 618, 619, 620, and 621. 
TITLE X—FED OVERSIGHT 
REFORM AND MODERNIZATION 
SEC. 1001. REQUIREMENTS FOR POLICY RULES OF THE FED-
ERAL OPEN MARKET COMMITTEE. 
The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
amended by inserting after section 2B the following new 
section: 
‘‘SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL 
OPEN MARKET COMMITTEE. 
‘‘(a) DEFINITIONS.—In this section the following defi-
nitions shall apply: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional commit-
tees’ means the Committee on Financial Services of 
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the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate. 
‘‘(2) DIRECTIVE POLICY RULE.—The term ‘Direc-
tive Policy Rule’ means a policy rule developed by the 
Federal Open Market Committee that meets the re-
quirements of subsection (c) and that provides the 
basis for the Open Market Operations Directive. 
‘‘(3) GDP.—The term ‘GDP’ means the gross do-
mestic product of the United States as computed and 
published by the Department of Commerce. 
‘‘(4) INTERMEDIATE POLICY INPUT.—The term 
‘Intermediate Policy Input’— 
‘‘(A) may include any variable determined 
by the Federal Open Market Committee as a nec-
essary input to guide open-market operations; 
‘‘(B) shall include an estimate of, and the 
method of calculation for, the current rate of in-
flation or current inflation expectations; and 
‘‘(C) shall include, specifying whether the 
variable or estimate is historical, current, or a 
forecast and the method of calculation, at least 
one of— 
‘‘(i) an estimate of real GDP, nominal 
GDP, or potential GDP; 
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‘‘(ii) an estimate of the monetary ag-
gregate compiled by the Board of Governors 
of the Federal Reserve System and Federal 
reserve banks; or 
‘‘(iii) an interactive variable or a net 
estimate composed of the estimates described 
in clauses (i) and (ii). 
‘‘(5) LEGISLATIVE
DAY.—The term ‘legislative 
day’ means a day on which either House of Congress 
is in session. 
‘‘(6) OPEN MARKET OPERATIONS DIRECTIVE.— 
The term ‘Open Market Operations Directive’ means 
an order to achieve a specified Policy Instrument 
Target provided to the Federal Reserve Bank of New 
York by the Federal Open Market Committee pursu-
ant to powers authorized under section 14 of this Act 
that guide open-market operations. 
‘‘(7) POLICY INSTRUMENT.—The term ‘Policy In-
strument’ means— 
‘‘(A) the nominal Federal funds rate; 
‘‘(B) the nominal rate of interest paid on 
nonborrowed reserves; or 
‘‘(C) the discount window primary credit 
interest rate most recently published on the Fed-
eral Reserve Statistical Release on selected inter-
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484 
est rates (daily or weekly), commonly referred to 
as the H.15 release. 
‘‘(8) POLICY
INSTRUMENT
TARGET.—The term 
‘Policy Instrument Target’ means the target for the 
Policy Instrument specified in the Open Market Oper-
ations Directive. 
‘‘(9) REFERENCE POLICY RULE.—The term ‘Ref-
erence Policy Rule’ means a calculation of the nomi-
nal Federal funds rate as equal to the sum of the fol-
lowing: 
‘‘(A) The rate of inflation over the previous 
four quarters. 
‘‘(B) One-half of the percentage deviation of 
the real GDP from an estimate of potential 
GDP. 
‘‘(C) One-half of the difference between the 
rate of inflation over the previous four quarters 
and two percent. 
‘‘(D) Two percent. 
‘‘(b) SUBMITTING A DIRECTIVE POLICY RULE.—Not 
later than 48 hours after the end of a meeting of the Federal 
Open Market Committee, the Chairman of the Federal Open 
Market Committee shall submit to the appropriate congres-
sional committees and the Comptroller General of the 
United States a Directive Policy Rule and a statement that 
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identifies the members of the Federal Open Market Com-
mittee who voted in favor of the Directive Policy Rule. 
‘‘(c) REQUIREMENTS
FOR
A
DIRECTIVE
POLICY 
RULE.—A Directive Policy Rule shall— 
‘‘(1) identify the Policy Instrument the Directive 
Policy Rule is designed to target; 
‘‘(2) describe the strategy or rule of the Federal 
Open Market Committee for the systematic quan-
titative adjustment of the Policy Instrument Target to 
respond to a change in the Intermediate Policy In-
puts; 
‘‘(3) include a function that comprehensively 
models the interactive relationship between the Inter-
mediate Policy Inputs; 
‘‘(4) include the coefficients of the Directive Pol-
icy Rule that generate the current Policy Instrument 
Target and a range of predicted future values for the 
Policy Instrument Target if changes occur in any In-
termediate Policy Input; 
‘‘(5) describe the procedure for adjusting the sup-
ply of bank reserves to achieve the Policy Instrument 
Target; 
‘‘(6) include a statement as to whether the Direc-
tive Policy Rule substantially conforms to the Ref-
erence Policy Rule and, if applicable— 
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‘‘(A) an explanation of the extent to which 
it departs from the Reference Policy Rule; 
‘‘(B) a detailed justification for that depar-
ture; and 
‘‘(C) a description of the circumstances 
under which the Directive Policy Rule may be 
amended in the future; 
‘‘(7) include a certification that the Directive 
Policy Rule is expected to support the economy in 
achieving stable prices and maximum natural em-
ployment over the long term; 
‘‘(8) include a calculation that describes with 
mathematical precision the expected annual inflation 
rate over a 5-year period; and 
‘‘(9) include a plan to use the most accurate 
data, subject to all historical revisions, for inputs into 
the Directive Policy Rule and the Reference Policy 
Rule. 
‘‘(d) GAO REPORT.—The Comptroller General of the 
United States shall compare the Directive Policy Rule sub-
mitted under subsection (b) with the rule that was most 
recently submitted to determine whether the Directive Pol-
icy Rule has materially changed. If the Directive Policy 
Rule has materially changed, the Comptroller General shall, 
not later than 7 days after each meeting of the Federal Open 
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Market Committee, prepare and submit a compliance report 
to the appropriate congressional committees specifying 
whether the Directive Policy Rule submitted after that meet-
ing and the Federal Open Market Committee are in compli-
ance with this section. 
‘‘(e) CHANGING MARKET CONDITIONS.— 
‘‘(1) RULE OF CONSTRUCTION.—Nothing in this 
Act shall be construed to require that the plans with 
respect to the systematic quantitative adjustment of 
the Policy Instrument Target described under sub-
section (c)(2) be implemented if the Federal Open 
Market Committee determines that such plans cannot 
or should not be achieved due to changing market con-
ditions. 
‘‘(2) GAO APPROVAL OF UPDATE.—Upon deter-
mining that plans described in paragraph (1) cannot 
or should not be achieved, the Federal Open Market 
Committee shall submit an explanation for that deter-
mination and an updated version of the Directive 
Policy Rule to the Comptroller General of the United 
States and the appropriate congressional committees 
not later than 48 hours after making the determina-
tion. The Comptroller General shall, not later than 48 
hours after receiving such updated version, prepare 
and submit to the appropriate congressional commit-
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tees a compliance report determining whether such 
updated version and the Federal Open Market Com-
mittee are in compliance with this section. 
‘‘(f) DIRECTIVE POLICY RULE AND FEDERAL OPEN 
MARKET COMMITTEE NOT IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—If the Comptroller General of 
the United States determines that the Directive Policy 
Rule and the Federal Open Market Committee are not 
in compliance with this section in the report sub-
mitted pursuant to subsection (d), or that the updated 
version of the Directive Policy Rule and the Federal 
Open Market Committee are not in compliance with 
this section in the report submitted pursuant to sub-
section (e)(2), the Chairman of the Board of Gov-
ernors of the Federal Reserve System shall, if re-
quested by the chairman of either of the appropriate 
congressional committees, not later than 7 legislative 
days after such request, testify before such committee 
as to why the Directive Policy Rule, the updated 
version, or the Federal Open Market Committee is not 
in compliance. 
‘‘(2) GAO AUDIT.—Notwithstanding subsection 
(b) of section 714 of title 31, United States Code, 
upon submitting a report of noncompliance pursuant 
to subsection (d) or subsection (e)(2) and after the pe-
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riod of 7 legislative days described in paragraph (1), 
the Comptroller General shall audit the conduct of 
monetary policy by the Board of Governors of the 
Federal Reserve System and the Federal Open Market 
Committee upon request of the appropriate congres-
sional committee. Such committee may specify the pa-
rameters of such audit. 
‘‘(g) CONGRESSIONAL HEARINGS.—The Chairman of 
the Board of Governors of the Federal Reserve System shall, 
if requested by the chairman of either of the appropriate 
congressional committees and not later than 7 legislative 
days after such request, appear before such committee to ex-
plain any change to the Directive Policy Rule.’’. 
SEC. 1002. FEDERAL OPEN MARKET COMMITTEE BLACKOUT 
PERIOD. 
Section 12A of the Federal Reserve Act (12 U.S.C. 263) 
is amended by adding at the end the following new sub-
section: 
‘‘(d) BLACKOUT PERIOD.— 
‘‘(1) IN GENERAL.—During a blackout period, 
the only public communications that may be made by 
members and staff of the Committee with respect to 
macroeconomic or financial developments or about 
current or prospective monetary policy issues are the 
following: 
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‘‘(A) The dissemination of published data, 
surveys, and reports that have been cleared for 
publication by the Board of Governors of the 
Federal Reserve System. 
‘‘(B) Answers to technical questions specific 
to a data release. 
‘‘(C) Communications with respect to the 
prudential or supervisory functions of the Board 
of Governors. 
‘‘(2) BLACKOUT
PERIOD
DEFINED.—For pur-
poses of this subsection, and with respect to a meeting 
of the Committee described under subsection (a), the 
term ‘blackout period’ means the time period that— 
‘‘(A) begins immediately after midnight on 
the day that is one week prior to the date on 
which such meeting takes place; and 
‘‘(B) ends at midnight on the day after the 
date on which such meeting takes place. 
‘‘(3) EXEMPTION FOR CHAIRMAN OF THE BOARD 
OF GOVERNORS.—Nothing in this section shall pro-
hibit the Chairman of the Board of Governors of the 
Federal Reserve System from participating in or 
issuing public communications.’’. 
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491 
SEC. 1003. PUBLIC TRANSCRIPTS OF FOMC MEETINGS. 
Section 12A of the Federal Reserve Act (12 U.S.C. 
263), as amended by section 1002, is further amended by 
adding at the end the following: 
‘‘(e) PUBLIC TRANSCRIPTS OF MEETINGS.—The Com-
mittee shall— 
‘‘(1) record all meetings of the Committee; and 
‘‘(2) make the full transcript of such meetings 
available to the public.’’. 
SEC. 1004. MEMBERSHIP OF FEDERAL OPEN MARKET COM-
MITTEE. 
Section 12A(a) of the Federal Reserve Act (12 U.S.C. 
263(a)) is amended— 
(1) in the first sentence, by striking ‘‘five’’ and 
inserting ‘‘six’’; 
(2) in the second sentence, by striking ‘‘One by 
the board of directors’’ and all that follows through 
the period at the end and inserting the following: 
‘‘One by the boards of directors of the Federal Reserve 
Banks of New York and Boston; one by the boards of 
directors of the Federal Reserve Banks of Philadelphia 
and Cleveland; one by the boards of directors of the 
Federal Reserve Banks of Richmond and Atlanta; one 
by the boards of directors of the Federal Reserve 
Banks of Chicago and St. Louis; one by the boards of 
directors of the Federal Reserve Banks of Minneapolis 
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and Kansas City; and one by the boards of directors 
of the Federal Reserve Banks of Dallas and San 
Francisco.’’; and 
(3) by inserting after the second sentence the fol-
lowing: ‘‘In odd numbered calendar years, one rep-
resentative shall be elected from each of the Federal 
Reserve Banks of Boston, Philadelphia, Richmond, 
Chicago, Minneapolis, and Dallas. In even-numbered 
calendar years, one representative shall be elected 
from each of the Federal Reserve Banks of New York, 
Cleveland, Atlanta, St. Louis, Kansas City, and San 
Francisco.’’. 
SEC. 1005. FREQUENCY OF TESTIMONY OF THE CHAIRMAN 
OF THE BOARD OF GOVERNORS OF THE FED-
ERAL RESERVE SYSTEM TO CONGRESS. 
(a) IN GENERAL.—Section 2B of the Federal Reserve 
Act (12 U.S.C. 225b) is amended— 
(1) by striking ‘‘semi-annual’’ each place it ap-
pears and inserting ‘‘quarterly’’; and 
(2) in subsection (a)(2)— 
(A) by inserting ‘‘and October 20’’ after 
‘‘July 20’’ each place it appears; and 
(B) by inserting ‘‘and May 20’’ after ‘‘Feb-
ruary 20’’ each place it appears. 
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(b) CONFORMING AMENDMENT.—Paragraph (12) of 
section 10 of the Federal Reserve Act (12 U.S.C. 247b(12)) 
is amended by striking ‘‘semi-annual’’ and inserting ‘‘quar-
terly’’. 
SEC. 1006. VICE CHAIRMAN FOR SUPERVISION REPORT RE-
QUIREMENT. 
Paragraph (12) of section 10 of the Federal Reserve 
Act (12 U.S.C. 247(b)) is amended— 
(1) by redesignating such paragraph as para-
graph (11); and 
(2) in such paragraph, by adding at the end the 
following: ‘‘In each such appearance, the Vice Chair-
man for Supervision shall provide written testimony 
that includes the status of all pending and antici-
pated rulemakings that are being made by the Board 
of Governors of the Federal Reserve System. If, at the 
time of any appearance described in this paragraph, 
the position of Vice Chairman for Supervision is va-
cant, the Vice Chairman for the Board of Governors 
of the Federal Reserve System (who has the responsi-
bility to serve in the absence of the Chairman) shall 
appear instead and provide the required written testi-
mony. If, at the time of any appearance described in 
this paragraph, both Vice Chairman positions are va-
cant, the Chairman of the Board of Governors of the 
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Federal Reserve System shall appear instead and pro-
vide the required written testimony.’’. 
SEC. 1007. SALARIES, FINANCIAL DISCLOSURES, AND OF-
FICE STAFF OF THE BOARD OF GOVERNORS 
OF THE FEDERAL RESERVE SYSTEM. 
(a) IN GENERAL.—Section 11 of the Federal Reserve 
Act (12 U.S.C. 248) is amended— 
(1) by redesignating the second subsection (s) 
(relating to ‘‘Assessments, Fees, and Other Charges for 
Certain Companies’’) as subsection (t); and 
(2) by inserting before subsection (w), as added 
by section 371(a), the following new subsections: 
‘‘(u) ETHICS STANDARDS FOR MEMBERS AND EM-
PLOYEES.— 
‘‘(1) PROHIBITED AND RESTRICTED FINANCIAL 
INTERESTS AND TRANSACTIONS.—The members and 
employees of the Board of Governors of the Federal 
Reserve System shall be subject to the provisions 
under section 4401.102 of title 5, Code of Federal 
Regulations, to the same extent as such provisions 
apply to an employee of the Securities and Exchange 
Commission. 
‘‘(2) TREATMENT OF BROKERAGE ACCOUNTS AND 
AVAILABILITY OF ACCOUNT STATEMENTS.—The mem-
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bers and employees of the Board of Governors of the 
Federal Reserve System shall— 
‘‘(A) disclose all brokerage accounts that the 
member or employee maintains, as well as any 
accounts in which the member or employee con-
trols trading or has a financial interest (includ-
ing managed accounts, trust accounts, invest-
ment club accounts, and accounts of spouses or 
minor children who live with the member or em-
ployee); and 
‘‘(B) with respect to any securities account 
that the member or employee is required to dis-
close to the Board of Governors, authorize the 
brokers and dealers of such account to send du-
plicate account statements directly to Board of 
Governors. 
‘‘(3) PROHIBITIONS RELATED TO OUTSIDE EM-
PLOYMENT AND ACTIVITIES.—The members and em-
ployees of the Board of Governors of the Federal Re-
serve System shall be subject to the prohibitions re-
lated to outside employment and activities described 
under section 4401.103(c) of title 5, Code of Federal 
Regulations, to the same extent as such prohibitions 
apply to an employee of the Securities and Exchange 
Commission. 
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‘‘(4) ADDITIONAL
ETHICS
STANDARDS.—The 
members and employees of the Board of Governors of 
the Federal Reserve System shall be subject to— 
‘‘(A) the employee responsibilities and con-
duct regulations of the Office of Personnel Man-
agement under part 735 of title 5, Code of Fed-
eral Regulations; 
‘‘(B) the canons of ethics contained in sub-
part C of part 200 of title 17, Code of Federal 
Regulations, to the same extent as such subpart 
applies to the employees of the Securities and 
Exchange Commission; and 
‘‘(C) the regulations concerning the conduct 
of members and employees and former members 
and employees contained in subpart M of part 
200 of title 17, Code of Federal Regulations, to 
the same extent as such subpart applies to the 
employees of the Securities and Exchange Com-
mission. 
‘‘(v) DISCLOSURE OF STAFF SALARIES AND FINANCIAL 
INFORMATION.—The Board of Governors of the Federal Re-
serve System shall make publicly available, on the website 
of the Board of Governors, a searchable database that con-
tains the names of all members, officers, and employees of 
the Board of Governors who receive an annual salary in 
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excess of the annual rate of basic pay for GS–15 of the Gen-
eral Schedule, and— 
‘‘(1) the yearly salary information for such indi-
viduals, along with any nonsalary compensation re-
ceived by such individuals; and 
‘‘(2) any financial disclosures required to be 
made by such individuals.’’. 
(b) OFFICE STAFF FOR EACH MEMBER OF THE BOARD 
OF GOVERNORS.—Subsection (l) of section 11 of the Federal 
Reserve Act (12 U.S.C. 248) is amended by adding at the 
end the following: ‘‘Each member of the Board of Governors 
of the Federal Reserve System may employ, at a minimum, 
2 individuals, with such individuals selected by such mem-
ber and the salaries of such individuals set by such member. 
A member may employ additional individuals as deter-
mined necessary by the Board of Governors.’’. 
SEC. 1008. AMENDMENTS TO POWERS OF THE BOARD OF 
GOVERNORS OF THE FEDERAL RESERVE SYS-
TEM. 
(a) IN GENERAL.—Section 13(3) of the Federal Re-
serve Act (12 U.S.C. 343(3)), as amended by section 
111(b)(3), is further amended— 
(1) in subparagraph (A)— 
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(A) by inserting ‘‘that pose a threat to the 
financial stability of the United States’’ after 
‘‘unusual and exigent circumstances’’; and 
(B) by inserting ‘‘and by the affirmative 
vote of not less than nine presidents of the Fed-
eral reserve banks’’ after ‘‘five members’’; 
(2) in subparagraph (B)— 
(A) in clause (i), by inserting at the end the 
following: ‘‘Federal reserve banks may not accept 
equity securities issued by the recipient of any 
loan or other financial assistance under this 
paragraph as collateral. Not later than 6 months 
after the date of enactment of this sentence, the 
Board shall, by rule, establish— 
‘‘(I) a method for determining the 
sufficiency of the collateral required 
under this paragraph; 
‘‘(II) acceptable classes of collat-
eral; 
‘‘(III) the amount of any discount 
on the value of the collateral that the 
Federal reserve banks will apply for 
purposes of calculating the sufficiency 
of collateral under this paragraph; and 
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‘‘(IV) a method for obtaining 
independent appraisals of the value of 
collateral the Federal reserve banks re-
ceive.’’; and 
(B) in clause (ii)— 
(i) by striking the second sentence; and 
(ii) by inserting after the first sentence 
the following: ‘‘A borrower shall not be eligi-
ble to borrow from any emergency lending 
program or facility unless the Board and 
all Federal banking regulators with juris-
diction over the borrower certify that, at the 
time the borrower initially borrows under 
the program or facility, the borrower is not 
insolvent.’’; 
(3) by inserting ‘‘financial institution’’ before 
‘‘participant’’ each place such term appears; 
(4) in subparagraph (D)(i), by inserting ‘‘finan-
cial institution’’ before ‘‘participants’’; and 
(5) by adding at the end the following new sub-
paragraphs: 
‘‘(E) PENALTY RATE.— 
‘‘(i) IN GENERAL.—Not later than 6 
months after the date of enactment of this 
subparagraph, the Board shall, with respect 
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to a recipient of any loan or other financial 
assistance under this paragraph, establish 
by rule a minimum interest rate on the 
principal amount of any loan or other fi-
nancial assistance. 
‘‘(ii) MINIMUM
INTEREST
RATE
DE-
FINED.—In this subparagraph, the term 
‘minimum interest rate’ shall mean the sum 
of— 
‘‘(I) the average of the secondary 
discount rate of all Federal Reserve 
banks over the most recent 90-day pe-
riod; and 
‘‘(II) the average of the difference 
between a distressed corporate bond 
yield index (as defined by rule of the 
Board) and a bond yield index of debt 
issued by the United States (as defined 
by rule of the Board) over the most re-
cent 90-day period. 
‘‘(F) FINANCIAL INSTITUTION PARTICIPANT 
DEFINED.—For purposes of this paragraph, the 
term ‘financial institution participant’— 
‘‘(i) means a company that is pre-
dominantly engaged in financial activities 
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(as defined in section 102(a) of the Dodd- 
Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5311(a))); and 
‘‘(ii) does not include an agency de-
scribed in subparagraph (W) of section 
5312(a)(2) of title 31, United States Code, 
or an entity controlled or sponsored by such 
an agency.’’. 
(b) CONFORMING AMENDMENT.—Section 11(r)(2)(A) 
of the Federal Reserve Act (12 U.S.C. 248(r)(2)(A)) is 
amended— 
(1) in clause (ii)(IV), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in clause (iii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(iv) the available members secure the affirma-
tive vote of not less than nine presidents of the Fed-
eral reserve banks.’’. 
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SEC. 1009. INTEREST RATES ON BALANCES MAINTAINED AT 
A FEDERAL RESERVE BANK BY DEPOSITORY 
INSTITUTIONS ESTABLISHED BY FEDERAL 
OPEN MARKET COMMITTEE. 
Subparagraph (A) of section 19(b)(12) of the Federal 
Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by in-
serting ‘‘established by the Federal Open Market Com-
mittee’’ after ‘‘rate or rates’’. 
SEC. 1010. AUDIT REFORM AND TRANSPARENCY FOR THE 
BOARD OF GOVERNORS OF THE FEDERAL RE-
SERVE SYSTEM. 
(a) IN GENERAL.—Notwithstanding section 714 of title 
31, United States Code, or any other provision of law, the 
Comptroller General of the United States shall annually 
complete an audit of the Board of Governors of the Federal 
Reserve System and the Federal reserve banks under sub-
section (b) of such section 714 within 12 months after the 
date of the enactment of this Act. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 90 days after 
each audit required pursuant to subsection (a) is 
completed, the Comptroller General— 
(A) shall submit to Congress a report on 
such audit; and 
(B) shall make such report available to the 
Speaker of the House, the majority and minority 
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leaders of the House of Representatives, the ma-
jority and minority leaders of the Senate, the 
Chairman and Ranking Member of the com-
mittee and each subcommittee of jurisdiction in 
the House of Representatives and the Senate, and 
any other Member of Congress who requests the 
report. 
(2) CONTENTS.—The report under paragraph (1) 
shall include a detailed description of the findings 
and conclusion of the Comptroller General with re-
spect to the audit that is the subject of the report, to-
gether with such recommendations for legislative or 
administrative action as the Comptroller General 
may determine to be appropriate. 
(c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 
(b) of section 714 of title 31, United States Code, is amend-
ed by striking the second sentence. 
(d) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN
GENERAL.—Section 714 of title 31, 
United States Code, is amended— 
(A) in subsection (d)(3), by striking ‘‘or (f)’’ 
each place such term appears; 
(B) in subsection (e), by striking ‘‘the third 
undesignated paragraph of section 13’’ and in-
serting ‘‘section 13(3)’’; and 
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(C) by striking subsection (f). 
(2) FEDERAL RESERVE ACT.—Subsection (s) (re-
lating to ‘‘Federal Reserve Transparency and Release 
of Information’’) of section 11 of the Federal Reserve 
Act (12 U.S.C. 248) is amended— 
(A) in paragraph (4)(A), by striking ‘‘has 
the same meaning as in section 714(f)(1)(A) of 
title 31, United States Code’’ and inserting 
‘‘means a program or facility, including any 
special purpose vehicle or other entity established 
by or on behalf of the Board of Governors of the 
Federal Reserve System or a Federal reserve 
bank, authorized by the Board of Governors 
under section 13(3), that is not subject to audit 
under section 714(e) of title 31, United States 
Code’’; 
(B) in paragraph (6), by striking ‘‘or in 
section 714(f)(3)(C) of title 31, United States 
Code, the information described in paragraph 
(1) and information concerning the transactions 
described in section 714(f) of such title,’’ and in-
serting ‘‘the information described in paragraph 
(1)’’; and 
(C) in paragraph (7), by striking ‘‘and sec-
tion 13(3)(C), section 714(f)(3)(C) of title 31, 
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United States Code, and’’ and inserting ‘‘, sec-
tion 13(3)(C), and’’. 
SEC. 1011. ESTABLISHMENT OF A CENTENNIAL MONETARY 
COMMISSION. 
(a) FINDINGS.—Congress finds the following: 
(1) The Constitution endows Congress with the 
power ‘‘to coin money, regulate the value thereof’’. 
(2) Following the financial crisis known as the 
Panic of 1907, Congress established the National 
Monetary Commission to provide recommendations 
for the reform of the financial and monetary systems 
of the United States. 
(3) Incorporating several of the recommendations 
of the National Monetary Commission, Congress cre-
ated the Federal Reserve System in 1913. As cur-
rently organized, the Federal Reserve System consists 
of the Board of Governors in Washington, District of 
Columbia, and the Federal reserve banks organized 
into 12 districts around the United States. The stock-
holders of the 12 Federal reserve banks include na-
tional and certain State-chartered commercial banks, 
which operate on a fractional reserve basis. 
(4) Originally, Congress gave the Federal Re-
serve System a monetary mandate to provide an elas-
tic currency, within the context of a gold standard, in 
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response to seasonal fluctuations in the demand for 
currency. 
(5) Congress also gave the Federal Reserve Sys-
tem a financial stability mandate to serve as the 
lender of last resort to solvent but illiquid banks dur-
ing a financial crisis. 
(6) In 1977, Congress changed the monetary 
mandate of the Federal Reserve System to a dual 
mandate for maximum employment and stable prices. 
(7) Empirical studies and historical evidence, 
both within the United States and in other countries, 
demonstrate that price stability is desirable because 
both inflation and deflation damage the economy. 
(8) The economic challenge of recent years—most 
notably the bursting of the housing bubble, the finan-
cial crisis of 2008, and the ensuing anemic recov-
ery—have occurred at great cost in terms of lost jobs 
and output. 
(9) Policymakers are reexamining the structure 
and functioning of financial institutions and markets 
to determine what, if any, changes need to be made 
to place the financial system on a stronger, more sus-
tainable path going forward. 
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(10) The Federal Reserve System has taken ex-
traordinary actions in response to the recent economic 
challenges. 
(11) The Federal Open Market Committee has 
engaged in multiple rounds of quantitative easing, 
providing unprecedented liquidity to financial mar-
kets, while committing to holding short-term interest 
rates low for a seemingly indefinite period, and pur-
suing a policy of credit allocation by purchasing Fed-
eral agency debt and mortgage-backed securities. 
(12) In the wake of the recent extraordinary ac-
tions of the Federal Reserve System, Congress—con-
sistent with its constitutional responsibilities and as 
it has done periodically throughout the history of the 
United States—has once again renewed its examina-
tion of monetary policy. 
(13) Central in such examination has been a re-
newed look at what is the most proper mandate for 
the Federal Reserve System to conduct monetary pol-
icy in the 21st century. 
(b) ESTABLISHMENT OF A CENTENNIAL MONETARY 
COMMISSION.—There is established a commission to be 
known as the ‘‘Centennial Monetary Commission’’ (in this 
section referred to as the ‘‘Commission’’). 
(c) STUDY AND REPORT ON MONETARY POLICY.— 
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(1) STUDY.—The Commission shall— 
(A) examine how United States monetary 
policy since the creation of the Board of Gov-
ernors of the Federal Reserve System in 1913 has 
affected the performance of the United States 
economy in terms of output, employment, prices, 
and financial stability over time; 
(B) evaluate various operational regimes 
under which the Board of Governors of the Fed-
eral Reserve System and the Federal Open Mar-
ket Committee may conduct monetary policy in 
terms achieving the maximum sustainable level 
of output and employment and price stability 
over the long term, including— 
(i) discretion in determining monetary 
policy without an operational regime; 
(ii) price level targeting; 
(iii) inflation rate targeting; 
(iv) nominal gross domestic product 
targeting (both level and growth rate); 
(v) the use of monetary policy rules; 
and 
(vi) the gold standard; 
(C) evaluate the use of macro-prudential su-
pervision and regulation as a tool of monetary 
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policy in terms of achieving the maximum sus-
tainable level of output and employment and 
price stability over the long term; 
(D) evaluate the use of the lender-of-last-re-
sort function of the Board of Governors of the 
Federal Reserve System as a tool of monetary 
policy in terms of achieving the maximum sus-
tainable level of output and employment and 
price stability over the long term; 
(E) recommend a course for United States 
monetary policy going forward, including— 
(i) the legislative mandate; 
(ii) the operational regime; 
(iii) the securities used in open-market 
operations; and 
(iv) transparency issues; and 
(F) consider the effects of the GDP output 
and employment targets of the ‘‘dual mandate’’ 
(both from the creation of the dual mandate in 
1977 until the present time and estimates of the 
future effect of the dual mandate ) on— 
(i) United States economic activity; 
(ii) actions of the Board of Governors 
of the Federal Reserve System; and 
(iii) Federal debt. 
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(2) REPORT.—Not later than 1 year after the 
date of the enactment of this section, the Commission 
shall submit to Congress and make publicly available 
a report containing a statement of the findings and 
conclusions of the Commission in carrying out the 
study under paragraph (1), together with the rec-
ommendations the Commission considers appropriate. 
In making such report, the Commission shall specifi-
cally report on the considerations required under 
paragraph (1)(F). 
(d) MEMBERSHIP.— 
(1) NUMBER AND APPOINTMENT.— 
(A) APPOINTED
VOTING
MEMBERS.—The 
Commission shall contain 12 voting members as 
follows: 
(i) Six members appointed by the 
Speaker of the House of Representatives, 
with four members from the majority party 
and two members from the minority party. 
(ii) Six members appointed by the 
President Pro Tempore of the Senate, with 
four members from the majority party and 
two members from the minority party. 
(B) CHAIRMAN.—The Speaker of the House 
of Representatives and the majority leader of the 
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Senate shall jointly designate one of the members 
of the Commission as Chairman. 
(C) NON-VOTING MEMBERS.—The Commis-
sion shall contain 2 non-voting members as fol-
lows: 
(i) One member appointed by the Sec-
retary of the Treasury. 
(ii) One member who is the president 
of a district Federal reserve bank appointed 
by the Chair of the Board of Governors of 
the Federal Reserve System. 
(2) PERIOD
OF
APPOINTMENT.—Each member 
shall be appointed for the life of the Commission. 
(3) TIMING OF APPOINTMENT.—All members of 
the Commission shall be appointed not later than 30 
days after the date of the enactment of this section. 
(4) VACANCIES.—A vacancy in the Commission 
shall not affect its powers, and shall be filled in the 
manner in which the original appointment was 
made. 
(5) MEETINGS.— 
(A) INITIAL
MEETING.—The Commission 
shall hold its initial meeting and begin the oper-
ations of the Commission as soon as is prac-
ticable. 
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(B) FURTHER MEETINGS.—The Commission 
shall meet upon the call of the Chair or a major-
ity of its members. 
(6) QUORUM.—Seven voting members of the 
Commission shall constitute a quorum but a lesser 
number may hold hearings. 
(7) MEMBER OF CONGRESS DEFINED.—In this 
subsection, the term ‘‘Member of Congress’’ means a 
Senator or a Representative in, or Delegate or Resi-
dent Commissioner to, the Congress. 
(e) POWERS.— 
(1) HEARINGS AND SESSIONS.—The Commission 
or, on the authority of the Commission, any sub-
committee or member thereof, may, for the purpose of 
carrying out this section, hold hearings, sit and act 
at times and places, take testimony, receive evidence, 
or administer oaths as the Commission or such sub-
committee or member thereof considers appropriate. 
(2) CONTRACT AUTHORITY.—To the extent or in 
the amounts provided in advance in appropriation 
Acts, the Commission may contract with and com-
pensate government and private agencies or persons 
to enable the Commission to discharge its duties 
under this section, without regard to section 3709 of 
the Revised Statutes (41 U.S.C. 5). 
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(3) OBTAINING OFFICIAL DATA.— 
(A) IN GENERAL.—The Commission is au-
thorized to secure directly from any executive de-
partment, bureau, agency, board, commission, of-
fice, independent establishment, or instrumen-
tality of the Government, any information, in-
cluding suggestions, estimates, or statistics, for 
the purposes of this section. 
(B) REQUESTING
OFFICIAL
DATA.—The 
head of such department, bureau, agency, board, 
commission, office, independent establishment, or 
instrumentality of the government shall, to the 
extent authorized by law, furnish such informa-
tion upon request made by— 
(i) the Chair; 
(ii) the Chair of any subcommittee cre-
ated by a majority of the Commission; or 
(iii) any member of the Commission 
designated by a majority of the commission 
to request such information. 
(4) ASSISTANCE FROM FEDERAL AGENCIES.— 
(A) 
GENERAL
SERVICES
ADMINISTRA-
TION.—The Administrator of General Services 
shall provide to the Commission on a reimburs-
able basis administrative support and other serv-
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ices for the performance of the functions of the 
Commission. 
(B) OTHER
DEPARTMENTS
AND
AGEN-
CIES.—In addition to the assistance prescribed 
in subparagraph (A), at the request of the Com-
mission, departments and agencies of the United 
States shall provide such services, funds, facili-
ties, staff, and other support services as may be 
authorized by law. 
(5) POSTAL SERVICE.—The Commission may use 
the United States mails in the same manner and 
under the same conditions as other departments and 
agencies of the United States. 
(f) COMMISSION PERSONNEL.— 
(1) 
APPOINTMENT
AND
COMPENSATION
OF 
STAFF.— 
(A) IN
GENERAL.—Subject to rules pre-
scribed by the Commission, the Chair may ap-
point and fix the pay of the executive director 
and other personnel as the Chair considers ap-
propriate. 
(B) APPLICABILITY
OF
CIVIL
SERVICE 
LAWS.—The staff of the Commission may be ap-
pointed without regard to the provisions of title 
5, United States Code, governing appointments 
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in the competitive service, and may be paid 
without regard to the provisions of chapter 51 
and subchapter III of chapter 53 of that title re-
lating to classification and General Schedule pay 
rates, except that an individual so appointed 
may not receive pay in excess of level V of the 
Executive Schedule. 
(2) CONSULTANTS.—The Commission may pro-
cure temporary and intermittent services under sec-
tion 3109(b) of title 5, United States Code, but at 
rates for individuals not to exceed the daily equiva-
lent of the rate of pay for a person occupying a posi-
tion at level IV of the Executive Schedule. 
(3) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Commission, the head of any Federal de-
partment or agency may detail, on a reimbursable 
basis, any of the personnel of such department or 
agency to the Commission to assist it in carrying out 
its duties under this section. 
(g) TERMINATION OF COMMISSION.— 
(1) IN GENERAL.—The Commission shall termi-
nate 6 months after the date on which the report is 
submitted under subsection (c)(2). 
(2) ADMINISTRATIVE ACTIVITIES BEFORE TERMI-
NATION.—The Commission may use the period be-
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tween the submission of its report and its termination 
for the purpose of concluding its activities, including 
providing testimony to the committee of Congress con-
cerning its report. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,000,000, which shall remain available until the date on 
which the Commission terminates. 
TITLE 
XI—IMPROVING 
INSUR-
ANCE 
COORDINATION 
THROUGH AN INDEPENDENT 
ADVOCATE 
SEC. 1101. REPEAL OF THE FEDERAL INSURANCE OFFICE; 
CREATION OF THE OFFICE OF THE INDE-
PENDENT INSURANCE ADVOCATE. 
(a) ESTABLISHMENT.—Section 313 of title 31, United 
States Code, is amended to read as follows (and conforming 
the table of contents for chapter 3 of such title accordingly): 
‘‘§ 313. Office of the Independent Insurance Advocate 
‘‘(a) ESTABLISHMENT.—There is established in the De-
partment of the Treasury a bureau to be known as the Office 
of the Independent Insurance Advocate (in this section re-
ferred to as the ‘Office’). 
‘‘(b) INDEPENDENT INSURANCE ADVOCATE.— 
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‘‘(1) ESTABLISHMENT OF POSITION.—The chief 
officer of the Office of the Independent Insurance Ad-
vocate shall be known as the Independent Insurance 
Advocate. The Independent Insurance Advocate shall 
perform the duties of such office under the general di-
rection of the Secretary of the Treasury. 
‘‘(2) APPOINTMENT.—The Independent Insurance 
Advocate shall be appointed by the President, by and 
with the advice and consent of the Senate, from 
among persons having insurance expertise. 
‘‘(3) TERM.— 
‘‘(A) IN GENERAL.—The Independent Insur-
ance Advocate shall serve a term of 6 years, un-
less sooner removed by the President upon rea-
sons which shall be communicated to the Senate. 
‘‘(B) SERVICE
AFTER
EXPIRATION.—If a 
successor is not nominated and confirmed by the 
end of the term of service of the Independent In-
surance Advocate, the person serving as Inde-
pendent Insurance Advocate shall continue to 
serve until such time a successor is appointed 
and confirmed. 
‘‘(C) VACANCY.—An Independent Insurance 
Advocate who is appointed to serve the remain-
der of a predecessor’s uncompleted term shall be 
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eligible thereafter to be appointed to a full 6 year 
term. 
‘‘(D) ACTING OFFICIAL ON FINANCIAL STA-
BILITY OVERSIGHT COUNCIL.—In the event of a 
vacancy in the office of the Independent Insur-
ance Advocate, and pending the appointment 
and confirmation of a successor, or during the 
absence or disability of the Independent Insur-
ance Advocate, the Independent Member shall ap-
point a federal official appointed by the Presi-
dent and confirmed by the Senate from a mem-
ber agency of the Financial Stability Oversight 
Council, not otherwise serving on the Council, 
who shall serve as a member of the Council and 
act in the place of the Independent Insurance 
Advocate until such vacancy, absence, or dis-
ability concludes. 
‘‘(4) EMPLOYMENT.—The Independent Insurance 
Advocate shall be an employee of the Federal Govern-
ment within the definition of employee under section 
2105 of title 5, United States Code. 
‘‘(c) INDEPENDENCE; OVERSIGHT.— 
‘‘(1) INDEPENDENCE.—The Secretary of the 
Treasury may not delay or prevent the issuance of 
any rule or the promulgation of any regulation by the 
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Independent Insurance Advocate, and may not inter-
vene in any matter or proceeding before the Inde-
pendent Insurance Advocate, unless otherwise specifi-
cally provided by law. 
‘‘(2) OVERSIGHT BY INSPECTOR GENERAL.—The 
Office of the Independent Insurance Advocate shall be 
an office in the establishment of the Department of 
the Treasury for purposes of the Inspector General 
Act of 1978 (5 U.S.C. App.). 
‘‘(d) RETENTION OF EXISTING STATE REGULATORY 
AUTHORITY.—Nothing in this section or section 314 shall 
be construed to establish or provide the Office or the Depart-
ment of the Treasury with general supervisory or regulatory 
authority over the business of insurance. 
‘‘(e) BUDGET.— 
‘‘(1) ANNUAL
TRANSMITTAL.—For each fiscal 
year, the Independent Insurance Advocate shall trans-
mit a budget estimate and request to the Secretary of 
the Treasury, which shall specify the aggregate 
amount of funds requested for such fiscal year for the 
operations of the Office of the Independent Insurance 
Advocate. 
‘‘(2) INCLUSIONS.—In transmitting the proposed 
budget to the President for approval, the Secretary of 
the Treasury shall include— 
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‘‘(A) an aggregate request for the Inde-
pendent Insurance Advocate; and 
‘‘(B) any comments of the Independent In-
surance Advocate with respect to the proposal. 
‘‘(3) PRESIDENT’S BUDGET.—The President shall 
include in each budget of the United States Govern-
ment submitted to the Congress— 
‘‘(A) a separate statement of the budget esti-
mate prepared in accordance with paragraph 
(1); 
‘‘(B) the amount requested by the President 
for the Independent Insurance Advocate; and 
‘‘(C) any comments of the Independent In-
surance Advocate with respect to the proposal if 
the Independent Insurance Advocate concludes 
that the budget submitted by the President would 
substantially inhibit the Independent Insurance 
Advocate from performing the duties of the office. 
‘‘(f) ASSISTANCE.—The Secretary of the Treasury shall 
provide the Independent Insurance Advocate such services, 
funds, facilities and other support services as the Inde-
pendent Insurance Advocate may request and as the Sec-
retary may approve. 
‘‘(g) PERSONNEL.— 
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‘‘(1) EMPLOYEES.—The Independent Insurance 
Advocate may fix the number of, and appoint and di-
rect, the employees of the Office, in accordance with 
the applicable provisions of title 5, United States 
Code. The Independent Insurance Advocate is author-
ized to employ attorneys, analysts, economists, and 
other employees as may be deemed necessary to assist 
the Independent Insurance Advocate to carry out the 
duties and functions of the Office. Unless otherwise 
provided expressly by law, any individual appointed 
under this paragraph shall be an employee as defined 
in section 2105 of title 5, United States Code, and 
subject to the provisions of such title and other laws 
generally applicable to the employees of the Executive 
Branch. 
‘‘(2) COMPENSATION.—Employees of the Office 
shall be paid in accordance with the provisions of 
chapter 51 and subchapter III of chapter 53 of title 
5, United States Code, relating to classification and 
General Schedule pay rates. 
‘‘(3) PROCUREMENT OF TEMPORARY AND INTER-
MITTENT SERVICES.—The Independent Insurance Ad-
vocate may procure temporary and intermittent serv-
ices under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the 
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daily equivalent of the annual rate of basic pay pre-
scribed for Level V of the Executive Schedule under 
section 5316 of such title. 
‘‘(4) DETAILS.—Any employee of the Federal 
Government may be detailed to the Office with or 
without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or 
privilege. An employee of the Federal Government de-
tailed to the Office shall report to and be subject to 
oversight by the Independent Insurance Advocate dur-
ing the assignment to the office, and may be com-
pensated by the branch, department, or agency from 
which the employee was detailed. 
‘‘(5) INTERGOVERNMENTAL
PERSONNEL.—The 
Independent Insurance Advocate may enter into 
agreements under subchapter VI of chapter 33 of title 
5, United States Code, with State and local govern-
ments, institutions of higher education, Indian tribal 
governments, and other eligible organizations for the 
assignment of intermittent, part-time, and full-time 
personnel, on a reimbursable or non-reimbursable 
basis. 
‘‘(h) ETHICS.— 
‘‘(1) DESIGNATED ETHICS OFFICIAL.—The Legal 
Counsel of the Financial Stability Oversight Council, 
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or in the absence of a Legal Counsel of the Council, 
the designated ethics official of any Council member 
agency, as chosen by the Independent Insurance Advo-
cate, shall be the ethics official for the Independent 
Insurance Advocate. 
‘‘(2) RESTRICTION
ON
REPRESENTATION.—In 
addition to any restriction under section 205(c) of 
title18, United States Code, except as provided in 
subsections (d) through (i) of section 205 of such title, 
the Independent Insurance Advocate (except in the 
proper discharge of official duties) shall not, with or 
without compensation, represent anyone to or before 
any officer or employee of— 
‘‘(A) the Financial Stability Oversight 
Council on any matter; or 
‘‘(B) the Department of Justice with respect 
to litigation involving a matter described in sub-
paragraph (A). 
‘‘(3) COMPENSATION FOR SERVICES PROVIDED BY 
ANOTHER.—For purposes of section 203 of title 18, 
United States Code, and if a special government em-
ployee— 
‘‘(A) the Independent Insurance Advocate 
shall not be subject to the restrictions of sub-
section (a)(1) of section 203,of title 18, United 
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