IB 
Union Calendar No. 693 
114TH CONGRESS 
2D SESSION 
H. R. 5983 
[Report No. 114–883, Part I] 
To create hope and opportunity for consumers, investors, and entrepreneurs 
by ending bailouts and Too Big to Fail, holding Washington and Wall 
Street accountable, eliminating red tape to increase access to capital 
and credit, and repealing the provisions of the Dodd-Frank Act that 
make America less prosperous, less stable, and less free, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 9, 2016 
Mr. HENSARLING (for himself, Mr. GARRETT, Mr. NEUGEBAUER, Mr. 
LUETKEMEYER, Mr. HUIZENGA of Michigan, and Mr. DUFFY) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices, and in addition to the Committees on Agriculture, Ways and Means, 
the Judiciary, Oversight and Government Reform, Transportation and In-
frastructure, Rules, the Budget, and Education and the Workforce, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
DECEMBER 20, 2016 
Reported from the Committee on Financial Services with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 20, 2016 
The Committees on Agriculture, Ways and Means, the Judiciary, Oversight 
and Government Reform, Transportation and Infrastructure, Rules, the 
Budget, and Education and the Workforce discharged; committed to the 
Committee of the Whole House on the State of the Union and ordered 
to be printed 
[For text of introduced bill, see copy of bill as introduced on September 9, 2016] 
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A BILL 
To create hope and opportunity for consumers, investors, 
and entrepreneurs by ending bailouts and Too Big to 
Fail, holding Washington and Wall Street accountable, 
eliminating red tape to increase access to capital and 
credit, and repealing the provisions of the Dodd-Frank 
Act that make America less prosperous, less stable, and 
less free, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Fi-
nancial CHOICE Act of 2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—REGULATORY RELIEF FOR STRONGLY CAPITALIZED, 
WELL MANAGED BANKING ORGANIZATIONS 
Sec. 101. Capital election. 
Sec. 102. Regulatory relief. 
Sec. 103. Contingent capital study. 
Sec. 104. Study on altering the current prompt corrective action rules. 
Sec. 105. Definitions. 
TITLE II—ENDING ‘‘TOO BIG TO FAIL’’ AND BANK BAILOUTS 
Subtitle A—Reform of the Financial Stability Act of 2010 
Sec. 211. Repeal and modification of provisions of the Financial Stability Act of 
2010. 
Subtitle B—Repeal of the Orderly Liquidation Authority 
Sec. 221. Repeal of the orderly liquidation authority. 
Subtitle C—Financial Institution Bankruptcy 
Sec. 231. General provisions relating to covered financial corporations. 
Sec. 232. Liquidation, reorganization, or recapitalization of a covered financial 
corporation. 
Sec. 233. Amendments to title 28, United States Code. 
Subtitle D—Ending Government Guarantees 
Sec. 241. Repeal of obligation guarantee program. 
Sec. 242. Repeal of systemic risk determination in resolutions. 
Sec. 243. Restrictions on use of the Exchange Stabilization Fund. 
Subtitle E—Eliminating Financial Market Utility Designations 
Sec. 251. Repeal of title VIII. 
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TITLE III—EMPOWERING AMERICANS TO ACHIEVE FINANCIAL 
INDEPENDENCE 
Subtitle A—Separation of Powers and Liberty Enhancements 
Sec. 311. Consumer Financial Opportunity Commission. 
Sec. 312. Bringing the Commission into the regular appropriations process. 
Sec. 313. Consumer Financial Opportunity Commission Inspector General Re-
form. 
Sec. 314. Private parties authorized to compel the Commission to seek sanctions 
by filing civil actions; Adjudications deemed actions. 
Sec. 315. Civil investigative demands to be appealed to courts. 
Sec. 316. Commission dual mandate and economic analysis. 
Sec. 317. No deference to Commission interpretation. 
Subtitle B—Administrative Enhancements 
Sec. 321. Commission Advisory Boards. 
Sec. 322. Advisory opinions. 
Sec. 323. Reform of Consumer Financial Civil Penalty Fund. 
Sec. 324. Commission research paper transparency. 
Sec. 325. Commission pay fairness. 
Sec. 326. Separation of market monitoring functions and supervisory functions. 
Sec. 327. Requirement to verify information in the complaint database before it 
may be released to the general public. 
Sec. 328. Commission supervision limited to banks, thrifts, and credit unions 
with greater than $50 billion in assets. 
Sec. 329. Transfer of old OTS building from OCC to GSA. 
Subtitle C—Policy Enhancements 
Sec. 331. Consumer right to financial privacy. 
Sec. 332. Repeal of Council authority to set aside Bureau rules and requirement 
of safety and soundness considerations when issuing rules. 
Sec. 333. State and tribal payday loan regulation 5-year exemption. 
Sec. 334. Reforming indirect auto financing guidance. 
Sec. 335. Prohibition of Government price controls for payment card trans-
actions. 
Sec. 336. Annual studies on ending the conservatorship of Fannie Mae, Freddie 
Mac, and reforming the housing finance system. 
Sec. 337. Removal of ‘‘abusive’’ authority. 
Sec. 338. Repeal of authority to restrict arbitration. 
TITLE IV—CAPITAL MARKETS IMPROVEMENTS 
Subtitle A—SEC Reform, Restructuring, and Accountability 
Sec. 401. Authorization of appropriations. 
Sec. 402. Report on unobligated appropriations. 
Sec. 403. SEC Reserve Fund abolished. 
Sec. 404. Fees to offset appropriations. 
Sec. 405. Implementation of recommendations. 
Sec. 406. Office of Credit Ratings to report to the Division of Trading and Mar-
kets. 
Sec. 407. Office of Municipal Securities to report to the Division of Trading and 
Markets. 
Sec. 408. Independence of Commission Ombudsman. 
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Sec. 409. Coordination with the Investor Advisory Committee. 
Sec. 410. Duties of Investor Advocate. 
Sec. 411. Internal risk controls. 
Sec. 412. Applicability of Notice and Comment Requirements of the Administra-
tive Procedure Act to Guidance Voted on by the Commission. 
Sec. 413. Process for closing investigations. 
Sec. 414. Enforcement Ombudsman. 
Sec. 415. Process to ensure enforcement actions are within authority of Commis-
sion. 
Sec. 416. Process to permit recipient of Wells notification to appear before Com-
mission staff in-person. 
Sec. 417. Publication of enforcement manual. 
Sec. 418. Private parties authorized to compel the Securities and Exchange Com-
mission to seek sanctions by filing civil actions. 
Sec. 419. Certain findings required to approve civil money penalties against 
issuers. 
Sec. 420. Repeal of authority of the Commission to prohibit persons from serving 
as officers or directors. 
Sec. 421. Subpoena duration and renewal. 
Sec. 422. Elimination of automatic disqualifications. 
Sec. 423. Confidentiality of records obtained from foreign securities and law en-
forcement authorities. 
Sec. 424. Clarification of authority to impose sanctions on persons associated 
with a broker or dealer. 
Sec. 425. Congressional access to information held by the Public Company Ac-
counting Oversight Board. 
Sec. 426. Repeal of requirement for Public Company Accounting Oversight Board 
to use certain funds for merit scholarship program. 
Sec. 427. Reallocation of fines for violations of rules of municipal securities rule-
making board. 
Subtitle B—Eliminating Excessive Government Intrusion in the Capital 
Markets 
Sec. 441. Repeal of Department of Labor fiduciary rule and requirements prior 
to rulemaking relating to standards of conduct for brokers and 
dealers. 
Sec. 442. Exemption from risk retention requirements for nonresidential mort-
gage. 
Sec. 443. Frequency of shareholder approval of executive compensation. 
Sec. 444. Requirement for municipal advisor for issuers of municipal securities. 
Sec. 445. Small issuer exemption from internal control evaluation. 
Sec. 446. Exemptive authority for certain provisions relating to registration of 
nationally recognized statistical rating organizations. 
Sec. 447. Restriction on recovery of erroneously awarded compensation. 
Sec. 448. Risk-Based Examinations of Nationally Recognized Statistical Rating 
Organizations. 
Sec. 449. Repeals. 
Sec. 450. Exemption of and reporting by private equity fund advisers. 
Sec. 451. Records and reports of private funds. 
Sec. 452. Definition of accredited investor. 
Sec. 453. Repeal of certain provisions requiring a study and report to Congress. 
Sec. 454. Technical correction. 
Sec. 455. Repeal. 
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Subtitle C—Commodity Futures Trading Commission Reforms 
Sec. 461. Division directors. 
Sec. 462. Procedures governing actions taken by commission staff. 
Sec. 463. Strategic technology plan. 
Sec. 464. Internal risk controls. 
Sec. 465. Subpoena duration and renewal. 
Sec. 466. Applicability of notice and comment requirements of the administrative 
procedure act to guidance voted on by the commission. 
Sec. 467. Judicial review of commission rules. 
Sec. 468. Cross-border regulation of derivatives transactions. 
Subtitle D—Harmonization of Derivatives Rules 
Sec. 471. Agency review and harmonization of rules relating to the regulation of 
over-the-counter swaps markets. 
TITLE V—IMPROVING INSURANCE COORDINATION THROUGH AN 
INDEPENDENT ADVOCATE 
Sec. 501. Repeal of the Federal Insurance Office; Creation of the Office of the 
Independent Insurance Advocate. 
Sec. 502. Treatment of covered agreements. 
TITLE VI—DEMANDING ACCOUNTABILITY FROM FINANCIAL 
REGULATORS AND DEVOLVING POWER AWAY FROM WASHINGTON 
Subtitle A—Cost-Benefit Analyses 
Sec. 611. Definitions. 
Sec. 612. Required regulatory analysis. 
Sec. 613. Rule of construction. 
Sec. 614. Public availability of data and regulatory analysis. 
Sec. 615. Five-year regulatory impact analysis. 
Sec. 616. Retrospective review of existing rules. 
Sec. 617. Judicial review. 
Sec. 618. Chief Economists Council. 
Sec. 619. Conforming amendments. 
Sec. 620. Other regulatory entities. 
Sec. 621. Avoidance of duplicative or unnecessary analyses. 
Subtitle B—Congressional Review of Federal Financial Agency Rulemaking 
Sec. 631. Congressional review. 
Sec. 632. Congressional approval procedure for major rules. 
Sec. 633. Congressional disapproval procedure for nonmajor rules. 
Sec. 634. Definitions. 
Sec. 635. Judicial review. 
Sec. 636. Effective date of certain rules. 
Sec. 637. Budgetary effects of rules subject to section 632 of the Financial 
CHOICE Act of 2016. 
Subtitle C—Judicial Review of Agency Actions 
Sec. 641. Scope of judicial review of agency actions. 
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Subtitle D—Leadership of Financial Regulators 
Sec. 651. Federal Deposit Insurance Corporation. 
Sec. 652. Federal Housing Finance Agency. 
Sec. 653. National Credit Union Administration. 
Sec. 654. Office of the Comptroller of the Currency. 
Subtitle E—Congressional Oversight of Appropriations 
Sec. 661. Bringing the Federal Deposit Insurance Corporation into the regular 
appropriations process. 
Sec. 662. Bringing the Federal Housing Finance Agency into the regular appro-
priations process. 
Sec. 663. Bringing the National Credit Union Administration into the regular 
appropriations process. 
Sec. 664. Bringing the Office of the Comptroller of the Currency into the regular 
appropriations process. 
Sec. 665. Bringing the non-monetary policy related functions of the Board of 
Governors of the Federal Reserve System into the regular appro-
priations process. 
Subtitle F—International Processes 
Sec. 671. Requirements for international processes. 
TITLE VII—FED OVERSIGHT REFORM AND MODERNIZATION 
Sec. 701. Requirements for policy rules of the Federal Open Market Committee. 
Sec. 702. Federal Open Market Committee blackout period. 
Sec. 703. Membership of Federal Open Market Committee. 
Sec. 704. Frequency of testimony of the Chairman of the Board of Governors of 
the Federal Reserve System to Congress. 
Sec. 705. Vice Chairman for Supervision report requirement. 
Sec. 706. Salaries, financial disclosures, and office staff of the Board of Governors 
of the Federal Reserve System. 
Sec. 707. Amendments to powers of the Board of Governors of the Federal Reserve 
System. 
Sec. 708. Interest rates on balances maintained at a Federal Reserve bank by de-
pository institutions established by Federal Open Market Com-
mittee. 
Sec. 709. Audit reform and transparency for the Board of Governors of the Fed-
eral Reserve System. 
Sec. 710. Establishment of a Centennial Monetary Commission. 
Sec. 711. Public transcripts of FOMC meetings. 
TITLE VIII—DEMANDING ACCOUNTABILITY FROM WALL STREET 
Subtitle A—SEC Penalties Modernization 
Sec. 801. Enhancement of civil penalties for securities laws violations. 
Sec. 802. Updated civil money penalties of Public Company Accounting Oversight 
Board. 
Sec. 803. Updated civil money penalty for controlling persons in connection with 
insider trading. 
Sec. 804. Update of certain other penalties. 
Sec. 805. Monetary sanctions to be used for the relief of victims. 
Sec. 806. GAO report on use of civil money penalty authority by Commission. 
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Subtitle B—FIRREA Penalties Modernization 
Sec. 811. Increase of civil and criminal penalties originally established in the Fi-
nancial Institutions Reform, Recovery, and Enforcement Act of 
1989. 
TITLE IX—REPEAL OF THE VOLCKER RULE AND OTHER 
PROVISIONS 
Sec. 901. Repeals. 
TITLE X—UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, 
INNOVATORS, AND JOB CREATORS BY FACILITATING CAPITAL 
FORMATION 
Subtitle A—Small Business Mergers, Acquisitions, Sales, and Brokerage 
Simplification 
Sec. 1001. Registration exemption for merger and acquisition brokers. 
Sec. 1002. Effective date. 
Subtitle B—Encouraging Employee Ownership 
Sec. 1006. Increased threshold for disclosures relating to compensatory benefit 
plans. 
Subtitle C—Small Company Disclosure Simplification 
Sec. 1011. Exemption from XBRL requirements for emerging growth companies 
and other smaller companies. 
Sec. 1012. Analysis by the SEC. 
Sec. 1013. Report to Congress. 
Sec. 1014. Definitions. 
Subtitle D—Securities and Exchange Commission Overpayment Credit 
Sec. 1016. Refunding or crediting overpayment of section 31 fees. 
Subtitle E—Fair Access to Investment Research 
Sec. 1021. Safe harbor for investment fund research. 
Subtitle F—Accelerating Access to Capital 
Sec. 1026. Expanded eligibility for use of Form S–3. 
Subtitle G—SEC Small Business Advocate 
Sec. 1031. Establishment of Office of the Advocate for Small Business Capital 
Formation and Small Business Capital Formation Advisory 
Committee. 
Subtitle H—Small Business Credit Availability 
Sec. 1036. Business development company ownership of securities of investment 
advisers and certain financial companies. 
Sec. 1037. Expanding access to capital for business development companies. 
Sec. 1038. Parity for business development companies regarding offering and 
proxy rules. 
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Subtitle I—Fostering Innovation 
Sec. 1041. Temporary exemption for low-revenue issuers. 
Subtitle J—Small Business Capital Formation Enhancement 
Sec. 1046. Annual review of government-business forum on capital formation. 
Subtitle K—Helping Angels Lead Our Startups 
Sec. 1051. Definition of angel investor group. 
Sec. 1052. Clarification of general solicitation. 
Subtitle L—Main Street Growth 
Sec. 1056. Venture exchanges. 
Subtitle M—Micro Offering Safe Harbor 
Sec. 1061. Exemptions for micro-offerings. 
Subtitle N—Private Placement Improvement 
Sec. 1066. Revisions to SEC Regulation D. 
Subtitle O—Supporting America’s Innovators 
Sec. 1071. Investor limitation for qualifying venture capital funds. 
Subtitle P—Fix Crowdfunding 
Sec. 1076. Crowdfunding vehicles. 
Sec. 1077. Crowdfunding exemption from registration. 
Subtitle Q—Corporate Governance Reform and Transparency 
Sec. 1081. Definitions. 
Sec. 1082. Registration of proxy advisory firms. 
Sec. 1083. Commission annual report. 
Subtitle R—Senior Safe 
Sec. 1091. Immunity. 
Sec. 1092. Training required. 
Sec. 1093. Relationship to State law. 
Subtitle S—National Securities Exchange Regulatory Parity 
Sec. 1096. Application of exemption. 
TITLE XI—REGULATORY RELIEF FOR MAIN STREET AND 
COMMUNITY FINANCIAL INSTITUTIONS 
Subtitle A—Preserving Access to Manufactured Housing 
Sec. 1101. Mortgage originator definition. 
Sec. 1102. High-Cost mortgage definition. 
Subtitle B—Mortgage Choice 
Sec. 1106. Definition of points and fees. 
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Subtitle C—Financial Institution Customer Protection 
Sec. 1111. Requirements for deposit account termination requests and orders. 
Sec. 1112. Amendments to the Financial Institutions Reform, Recovery, and En-
forcement Act of 1989. 
Subtitle D—Portfolio Lending and Mortgage Access 
Sec. 1116. Safe harbor for certain loans held on portfolio. 
Subtitle E—Application of the Expedited Funds Availability Act 
Sec. 1121. Application of the Expedited Funds Availability Act. 
Subtitle F—Small Bank Holding Company Policy Statement 
Sec. 1126. Changes required to small bank holding company policy statement on 
assessment of financial and managerial factors. 
Subtitle G—Community Institution Mortgage Relief 
Sec. 1131. Community financial institution mortgage relief. 
Subtitle H—Financial Institutions Examination Fairness and Reform 
Sec. 1136. Timeliness of examination reports. 
Subtitle I—National Credit Union Administration Budget Transparency 
Sec. 1141. Budget transparency for the NCUA. 
Subtitle J—Taking Account of Institutions With Low Operation Risk 
Sec. 1146. Regulations appropriate to business models. 
Subtitle K—Federal Savings Association Charter Flexibility 
Sec. 1151. Option for Federal savings associations to operate as a covered savings 
association. 
Subtitle L—SAFE Transitional Licensing 
Sec. 1156. Eliminating barriers to jobs for loan originators. 
Subtitle M—Right to Lend 
Sec. 1161. Small business loan data collection requirement. 
Subtitle N—Community Bank Reporting Relief 
Sec. 1166. Short form call report. 
Subtitle O—Homeowner Information Privacy Protection 
Sec. 1171. Study regarding privacy of information collected under the Home 
Mortgage Disclosure Act of 1975. 
Subtitle P—Home Mortgage Disclosure Adjustment 
Sec. 1176. Depository institutions subject to maintenance of records and disclo-
sure requirements. 
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Subtitle Q—National Credit Union Administration Advisory Council 
Sec. 1181. Credit Union Advisory Council. 
Subtitle R—Credit Union Examination Reform 
Sec. 1186. Extension of examination cycle of the National Credit Union Adminis-
tration to 18 months or longer. 
Subtitle S—NCUA Overhead Transparency 
Sec. 1191. Fund transparency. 
TITLE I—REGULATORY RELIEF 
FOR STRONGLY CAPITALIZED, 
WELL MANAGED BANKING OR-
GANIZATIONS 
SEC. 101. CAPITAL ELECTION. 
(a) IN GENERAL.—A banking organization may make 
an election under this section to be treated as a qualifying 
banking organization for purposes of the regulatory relief 
described under section 102. 
(b) REQUIREMENTS.—A banking organization may 
qualify to be treated as a qualifying banking organization 
if— 
(1) the banking organization has an average le-
verage ratio of at least 10 percent; 
(2) with respect to a banking organization that 
is an insured depository institution or insured credit 
union, the institution received a CAMELS composite 
rating of 1 or 2 under the Uniform Financial Institu-
tions Rating System (or an equivalent rating under 
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a comparable rating system) as of the most recent ex-
amination of the institution; 
(3) with respect to a depository institution hold-
ing company, each insured depository institution sub-
sidiary of the holding company simultaneously makes 
the election described under subsection (a); and 
(4) with respect to an insured depository institu-
tion, any parent depository institution holding com-
pany of the institution simultaneously makes the elec-
tion described under subsection (a). 
(c) ELECTION PROCESS.—To make an election under 
this section, a banking organization shall submit an elec-
tion to the appropriate Federal banking agency (and any 
applicable State bank supervisor that regulates the banking 
organization) containing— 
(1) a notice of such election; 
(2) the banking organization’s average leverage 
ratio, as well as the organization’s quarterly leverage 
ratio for each of the most recently completed four cal-
endar quarters; 
(3) if the banking organization is a depository 
institution holding company, the information de-
scribed under paragraph (2) for each of the organiza-
tion’s insured depository institution subsidiaries; and 
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(4) if the banking organization is an insured de-
pository institution, the information described under 
paragraph (2) for any parent depository institution 
holding company of the institution. 
(d) EFFECTIVE DATE OF ELECTION.— 
(1) IN GENERAL.—An election made under this 
section shall take effect at the end of the 30-day pe-
riod beginning on the date that the appropriate Fed-
eral banking agency receives the application described 
under subsection (c), unless the appropriate Federal 
banking agency determines that the banking organi-
zation has not met the requirements described under 
subsection (b). 
(2) NOTICE
OF
FAILURE
TO
MEET
REQUIRE-
MENTS.—If the appropriate Federal banking agency 
determines that a banking organization submitting 
an election notice under subsection (c) does not meet 
the requirements described under subsection (b), the 
agency shall— 
(A) notify the banking organization (and 
any applicable State bank supervisor that regu-
lates the banking organization), in writing, of 
such determination as soon as possible after such 
determination is made, but in no case later than 
the end of the 30-day period beginning on the 
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date that the appropriate Federal banking agen-
cy receives the election; and 
(B) include in such notification the specific 
reasons for such determination and steps that the 
banking organization can take to meet such re-
quirements. 
(e) TREATMENT OF CERTAIN NEW BANKING ORGANI-
ZATIONS.—In the case of a banking organization that is 
a newly-chartered insured depository institution or a bank-
ing organization that becomes a banking organization be-
cause it controls a newly-chartered insured depository insti-
tution, such banking organization may be treated as a 
qualifying banking organization immediately upon becom-
ing a banking organization, if— 
(1) an election to be treated as a qualifying 
banking organization was included in the application 
filed with the appropriate Federal banking agency in 
connection with becoming a banking organization; 
and 
(2) as of the date the banking organization be-
comes a banking organization, the banking organiza-
tion’s tangible equity divided by the banking organi-
zation’s leverage exposure, expressed as a percentage, 
is at least 10 percent. 
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(f) FAILURE
TO MAINTAIN QUARTERLY LEVERAGE 
RATIO AND LOSS OF ELECTION.— 
(1) EFFECT
OF
FAILURE
TO
MAINTAIN
QUAR-
TERLY LEVERAGE RATIO.— 
(A) IN GENERAL.—If, with respect to the 
most recently completed calendar quarter, the 
appropriate Federal banking agency determines 
that a qualifying banking organization’s quar-
terly leverage ratio is below 10 percent— 
(i) the appropriate Federal banking 
agency shall notify the qualifying banking 
organization and any applicable State bank 
supervisor that regulates the banking orga-
nization of such determination; 
(ii) the appropriate Federal banking 
agency may prohibit the banking organiza-
tion from making a capital distribution; 
and 
(iii) the banking organization shall, 
within 3 months of the first such determina-
tion, submit a capital restoration plan to 
the appropriate Federal banking agency. 
(B) LOSS OF ELECTION AFTER ONE-YEAR 
REMEDIATION PERIOD.—If a banking organiza-
tion described under subparagraph (A) does not, 
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within the 1-year period beginning on the date 
of such determination, raise the organization’s 
quarterly leverage ratio for a calendar quarter 
ending in such 1-year period to at least 10 per-
cent, the banking organization’s election under 
this section shall be terminated, and the appro-
priate Federal banking agency shall notify any 
applicable State bank supervisor that regulates 
the banking organization of such termination. 
(C) EFFECT OF SUBSIDIARY ON PARENT OR-
GANIZATION.—With respect to a qualifying bank-
ing organization described under subparagraph 
(A) that is an insured depository institution, 
any parent depository institution holding com-
pany of the qualifying banking organization 
shall— 
(i) if the appropriate Federal banking 
agency determines it appropriate, be pro-
hibited from making a capital distribution 
(other than a capital contribution to such 
qualifying banking organization described 
under subparagraph (A)); and 
(ii) if the qualifying banking organiza-
tion has an election terminated under sub-
paragraph (B), any such parent depository 
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institution holding company shall also have 
its election under this section terminated. 
(2) IMMEDIATE
LOSS
OF
ELECTION
IF
THE 
QUARTERLY LEVERAGE RATIO FALLS BELOW 6 PER-
CENT.— 
(A) IN GENERAL.—If, with respect to the 
most recently completed calendar quarter, the 
appropriate Federal banking agency determines 
that a qualifying banking organization’s quar-
terly leverage ratio is below 6 percent, the bank-
ing organization’s election under this section 
shall be terminated, and the appropriate Federal 
banking agency shall notify any applicable State 
bank supervisor that regulates the banking orga-
nization of such termination. 
(B) EFFECT OF SUBSIDIARY ON PARENT OR-
GANIZATION.—With respect to a qualifying bank-
ing organization described under subparagraph 
(A) that is an insured depository institution, 
any parent depository institution holding com-
pany of the qualifying banking organization 
shall also have its election under this section ter-
minated. 
(3) ABILITY TO MAKE FUTURE ELECTIONS.—If a 
banking organization has an election under this sec-
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tion terminated, the banking organization may not 
apply for another election under this section until the 
banking organization has maintained a quarterly le-
verage ratio of at least 10 percent for 8 consecutive 
calendar quarters. 
SEC. 102. REGULATORY RELIEF. 
(a) IN GENERAL.—A qualifying banking organization 
shall be exempt from the following: 
(1) Any Federal law, rule, or regulation address-
ing capital or liquidity requirements or standards. 
(2) Any Federal law, rule, or regulation that 
permits an appropriate Federal banking agency to 
object to a capital distribution. 
(3) Any consideration by an appropriate Federal 
banking agency of the following: 
(A) Any risk the qualifying banking organi-
zation may pose to ‘‘the stability of the financial 
system of the United States’’, under section 
5(c)(2) of the Bank Holding Company Act of 
1956. 
(B) The ‘‘extent to which a proposed acqui-
sition, merger, or consolidation would result in 
greater or more concentrated risks to the sta-
bility of the United States banking or financial 
system’’, under section 3(c)(7) of the Bank Hold-
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ing Company Act of 1956, so long as the banking 
organization, after such proposed acquisition, 
merger, or consolidation, would maintain a 
quarterly leverage ratio of at least 10 percent. 
(C) Whether the performance of an activity 
by the banking organization could possibly pose 
a ‘‘risk to the stability of the United States 
banking or financial system’’, under section 
4(j)(2)(A) of the Bank Holding Company Act of 
1956. 
(D) Whether the acquisition of control of 
shares of a company engaged in an activity de-
scribed in section 4(j)(1)(A) of the Bank Holding 
Company Act of 1956 could possibly pose a ‘‘risk 
to the stability of the United States banking or 
financial system’’, under section 4(j)(2)(A) of the 
Bank Holding Company Act of 1956, so long as 
the banking organization, after acquiring control 
of such company, would maintain a quarterly le-
verage ratio of at least 10 percent. 
(E) Whether a merger would pose a ‘‘risk to 
the stability of the United States banking or fi-
nancial system’’, under section 18(c)(5) of the 
Federal Deposit Insurance Act, so long as the 
banking organization, after such proposed merg-
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er, would maintain a quarterly leverage ratio of 
at least 10 percent. 
(F) Any risk the qualifying banking organi-
zation may pose to ‘‘the stability of the financial 
system of the United States’’, under section 
10(b)(4) of the Home Owners’ Loan Act. 
(4) Subsections (i)(8) and (k)(6)(B)(ii) of section 
4 and section 14 of the Bank Holding Company Act 
of 1956. 
(5) Section 18(c)(13) of the Federal Deposit In-
surance Act. 
(6) Section 163 of the Financial Stability Act of 
2010. 
(7) Section 10(e)(2)(E) of the Home Owners’ 
Loan Act. 
(8) Any Federal law, rule, or regulation imple-
menting standards of the type provided for in sub-
sections (b), (c), (d), (e), (g), (h), (i), and (j) of sec-
tion 165 of the Financial Stability Act of 2010. 
(9) Any Federal law, rule, or regulation pro-
viding limitations on mergers, consolidations, or ac-
quisitions of assets or control, to the extent such limi-
tations relate to capital or liquidity standards or con-
centrations of deposits or assets, so long as the bank-
ing organization, after such proposed merger, consoli-
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dation, or acquisition, would maintain a quarterly 
leverage ratio of at least 10 percent. 
(b) STRESS TEST EXCEPTION.—Notwithstanding sub-
section (a), other than paragraph (2) of subsection (a), the 
appropriate Federal banking agencies may conduct stress 
tests of qualifying banking organizations. A qualifying 
banking organization with total consolidated assets of more 
than $10,000,000,000 and less than $50,000,000,000 shall 
not be required to conduct annual stress tests required 
under section 165(i)(2)(A) of the Financial Stability Act 
of 2010. 
(c) QUALIFYING BANKING ORGANIZATIONS TREATED 
AS WELL CAPITALIZED.—A qualifying banking organiza-
tion shall be deemed to be ‘‘well capitalized’’ for purposes 
of— 
(1) section 216 of the Federal Credit Union Act; 
and 
(2) sections 29, 38, 44, and 46 of the Federal De-
posit Insurance Act. 
(d) TREATMENT OF CERTAIN RISK-WEIGHTED ASSET 
REQUIREMENTS
FOR QUALIFYING BANKING ORGANIZA-
TIONS.— 
(1) ACQUISITION SIZE CRITERIA TREATMENT.— 
A qualifying banking organization shall be deemed to 
meet the criteria described under section 4(j)(4)(D) of 
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the Bank Holding Company Act of 1956, so long as 
after the proposed transaction the acquiring quali-
fying banking organization would maintain a quar-
terly leverage ratio of at least 10 percent. 
(2) USE OF LEVERAGE EXPOSURE.—With respect 
to a qualifying banking organization, in determining 
whether a proposal qualifies with the criteria de-
scribed under subparagraphs (A)(iii) and (B)(i) of 
section 4(j)(4) of the Bank Holding Company Act of 
1956, the Board of Governors of the Federal Reserve 
System shall consider the leverage exposure of an in-
sured depository institution instead of the total risk- 
weighted assets of such institution. 
SEC. 103. CONTINGENT CAPITAL STUDY. 
(a) STUDY.—The Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corpora-
tion, and the Office of the Comptroller of the Currency shall 
each carry out a study, which shall include holding public 
hearings, on how to design a requirement that banking or-
ganizations issue contingent capital with a market-based 
conversion trigger. 
(b) REPORT.—Not later than the end of the 1-year pe-
riod beginning on the date of the enactment of this Act, 
each agency described under subsection (a) shall submit a 
report to the Congress containing— 
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(1) all findings and determinations made by the 
agency in carrying out the study required under sub-
section (a); and 
(2) the agency’s recommendations on how the 
Congress should design a requirement that banking 
organizations issue contingent capital with a market- 
based conversion trigger. 
SEC. 104. STUDY ON ALTERING THE CURRENT PROMPT 
CORRECTIVE ACTION RULES. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study to assess the benefits and feasi-
bility of altering the current prompt corrective action rules 
and replacing the Basel-based capital ratios with the non-
performing asset coverage ratio or NACR as the trigger for 
specific required supervisory interventions. The Comptroller 
General shall ensure that such study includes the following: 
(1) An assessment of the performance of an 
NACR forward-looking measure of a banking organi-
zation’s solvency condition relative to the regulatory 
capital ratios currently used by prompt corrective ac-
tion rules. 
(2) An analysis of the performance of alternative 
definitions of nonperforming assets. 
(3) An assessment of the impact of two alter-
native intervention thresholds: 
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(A) An initial (high) intervention threshold, 
below which appropriate Federal banking agency 
examiners are required to intervene and assess a 
banking organization’s condition and prescribe 
remedial measures. 
(B) A lower threshold, below which banking 
organizations must increase their capital, seek 
an acquirer, or face mandatory resolution within 
90 days. 
(b) REPORT.—Not later than the end of the 1-year pe-
riod beginning on the date of the enactment of this Act, 
the Comptroller General shall submit a report to the Con-
gress containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) recommendations on the most suitable defini-
tion of nonperforming assets, as well as the two nu-
merical thresholds that trigger specific required super-
visory interventions. 
SEC. 105. DEFINITIONS. 
For purposes of this title: 
(1) APPROPRIATE FEDERAL BANKING AGENCY.— 
The term ‘‘appropriate Federal banking agency’’— 
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(A) has the meaning given such term under 
section 3 of the Federal Deposit Insurance Act; 
and 
(B) means the National Credit Union Ad-
ministration, in the case of an insured credit 
union. 
(2) BANKING ORGANIZATION.—The term ‘‘bank-
ing organization’’ means— 
(A) an insured depository institution; 
(B) an insured credit union; 
(C) a depository institution holding com-
pany; 
(D) a company that is treated as a bank 
holding company for purposes of section 8 of the 
International Banking Act; and 
(E) a U.S. intermediate holding company 
established by a foreign banking organization 
pursuant to section 252.153 of title 12, Code of 
Federal Regulations. 
(3) FOREIGN EXCHANGE SWAP .—The term ‘‘for-
eign exchange swap’’ has the meaning given that term 
under section 1a of the Commodity Exchange Act. 
(4) INSURED CREDIT UNION.—The term ‘‘insured 
credit union’’ has the meaning given that term under 
section 101 of the Federal Credit Union Act. 
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(5) LEVERAGE EXPOSURE.—The term ‘‘leverage 
exposure’’— 
(A) with respect to a banking organization 
other than an insured credit union or a tradi-
tional banking organization, has the meaning 
given the term ‘‘total leverage exposure’’ under 
section 
3.10(c)(4)(ii), 
217.10(c)(4), 
or 
324.10(c)(4) of title 12, Code of Federal Regula-
tions, as applicable, as in effect on January 1, 
2015; 
(B) with respect to a traditional banking 
organization other than an insured credit union, 
means total assets (minus any items deducted 
from common equity tier 1 capital) as calculated 
in accordance with generally accepted accounting 
principles and as reported on the traditional 
banking organization’s applicable regulatory fil-
ing with the banking organization’s appropriate 
Federal banking agency; and 
(C) with respect to a banking organization 
that is an insured credit union, has the meaning 
given the term ‘‘total assets’’ under section 702.2 
of title 12, Code of Federal Regulations, as in ef-
fect on January 1, 2015. 
(6) LEVERAGE RATIO DEFINITIONS.— 
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(A) AVERAGE LEVERAGE RATIO.—With re-
spect to a banking organization, the term ‘‘aver-
age leverage ratio’’ means the average of the 
banking organization’s quarterly leverage ratios 
for each of the most recently completed four cal-
endar quarters. 
(B) QUARTERLY
LEVERAGE
RATIO.—With 
respect to a banking organization and a cal-
endar quarter, the term ‘‘quarterly leverage 
ratio’’ means the organization’s tangible equity 
divided by the organization’s leverage exposure, 
expressed as a percentage, on the last day of such 
quarter. 
(7) NACR.—The term ‘‘NACR’’ means— 
(A) book equity less nonperforming assets 
plus loan loss reserves, divided by 
(B) total banking organization assets. 
(8) NONPERFORMING ASSETS.—The term ‘‘non-
performing assets’’ means— 
(A) 20 percent of assets that are past due 
30 to 89 days, plus 
(B) 50 percent of assets that are past due 
90 days or more, plus 
(C) 100 percent of nonaccrual assets and 
other real estate owned. 
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(9) QUALIFYING BANKING ORGANIZATION.—The 
term ‘‘qualifying banking organization’’ means a 
banking organization that has made an election 
under section 101 and with respect to which such elec-
tion is in effect. 
(10) SECURITY-BASED SWAP .—The term ‘‘secu-
rity-based swap’’ has the meaning given that term 
under section 3 of the Securities Exchange Act of 
1934. 
(11) SWAP .—The term ‘‘swap’’ has the meaning 
given that term under section 1a of the Commodity 
Exchange Act. 
(12) TANGIBLE EQUITY.—The term ‘‘tangible eq-
uity’’— 
(A) with respect to a banking organization 
other than a credit union, means the sum of— 
(i) common equity tier 1 capital; 
(ii) additional tier 1 capital consisting 
of instruments issued on or before June 1, 
2016; and 
(iii) with respect to a depository insti-
tution holding company that had less than 
$15,000,000,000 in total consolidated assets 
as of December 31, 2009, or March 31, 
2010, or a banking organization that was a 
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mutual holding company as of May 19, 
2010, trust preferred securities issued prior 
to May 19, 2010, to the extent such organi-
zation was permitted, as of the date of the 
enactment of this Act, to consider such secu-
rities as tier 1 capital under existing regu-
lations of the appropriate Federal banking 
agency; and 
(B) with respect to a banking organization 
that is a credit union, has the meaning given the 
term ‘‘net worth’’ under section 702.2 of title 12, 
Code of Federal Regulations, as in effect on Jan-
uary 1, 2015. 
(13) TRADITIONAL
BANKING
ORGANIZATION.— 
The term ‘‘traditional banking organization’’ means a 
banking organization that— 
(A) has zero trading assets and zero trading 
liabilities; 
(B) does not engage in swaps or security- 
based swaps, other than swaps or security-based 
swaps referencing interest rates or foreign ex-
change swaps; and 
(C) has a total notional exposure of swaps 
and security-based swaps of not more than 
$8,000,000,000. 
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(14) OTHER BANKING TERMS.—The terms ‘‘in-
sured depository institution’’ and ‘‘depository institu-
tion holding company’’ have the meaning given those 
terms, respectively, under section 3 of the Federal De-
posit Insurance Act. 
(15) OTHER CAPITAL TERMS.—With respect to a 
banking organization, the terms ‘‘additional tier 1 
capital’’ and ‘‘common equity tier 1 capital’’ have the 
meaning given such terms, respectively, under section 
3.20, 217.20, or 324.20 of title 12, Code of Federal 
Regulations, as applicable, as in effect on January 1, 
2015. 
TITLE II—ENDING ‘‘TOO BIG TO 
FAIL’’ AND BANK BAILOUTS 
Subtitle A—Reform of the Financial 
Stability Act of 2010 
SEC. 211. REPEAL AND MODIFICATION OF PROVISIONS OF 
THE FINANCIAL STABILITY ACT OF 2010. 
(a) REPEALS.—The following provisions of the Finan-
cial Stability Act of 2010 are repealed, and the provisions 
of law amended or repealed by such provisions are restored 
or revived as if such provisions had not been enacted: 
(1) Subtitle B. 
(2) Section 113. 
(3) Section 114. 
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(4) Section 115. 
(5) Section 116. 
(6) Section 117. 
(7) Section 119. 
(8) Section 120. 
(9) Section 121. 
(10) Section 161. 
(11) Section 162. 
(12) Section 164. 
(13) Section 166. 
(14) Section 167. 
(15) Section 168. 
(16) Section 170. 
(17) Section 172. 
(18) Section 174. 
(19) Section 175. 
(b) ADDITIONAL MODIFICATIONS.—The Financial Sta-
bility Act of 2010 (12 U.S.C. 5311 et seq.) is amended— 
(1) in section 102(a), by striking paragraph (5); 
(2) in section 111— 
(A) in subsection (b)— 
(i) in paragraph (1)— 
(I) by striking ‘‘who shall each’’ 
and inserting ‘‘who shall, except as 
provided below, each’’; and 
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(II) by amending subparagraphs 
(B) through (I) to read as follows: 
‘‘(B) each member of the Board of Gov-
ernors, who shall collectively have 1 vote on the 
Council; 
‘‘(C) each member of the Board of Directors 
of the Office of the Comptroller of the Currency, 
who shall collectively have 1 vote on the Council; 
‘‘(D) each member of the Consumer Finan-
cial Opportunity Commission, who shall collec-
tively have 1 vote on the Council; 
‘‘(E) each member of the Commission, who 
shall collectively have 1 vote on the Council; 
‘‘(F) each member of the Corporation, who 
shall collectively have 1 vote on the Council; 
‘‘(G) each member of the Commodity Fu-
tures Trading Commission, who shall collectively 
have 1 vote on the Council; 
‘‘(H) each member of the Board of Directors 
of the Federal Housing Finance Agency, who 
shall collectively have 1 vote on the Council; 
‘‘(I) each member of the National Credit 
Union Administration Board, who shall collec-
tively have 1 vote on the Council; and’’; 
(ii) in paragraph (2)— 
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(I) by striking subparagraph (A); 
and 
(II) by redesignating subpara-
graphs (B), (C), (D), and (E) as sub-
paragraphs (A), (B), (C), and (D), re-
spectively; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(4) VOTING BY MULTI-PERSON ENTITY.— 
‘‘(A) VOTING WITHIN THE ENTITY.—An en-
tity described under subparagraph (B) through 
(I) of paragraph (1) shall determine the entity’s 
Council vote by using the voting process nor-
mally applicable to votes by the entity’s mem-
bers. 
‘‘(B) CASTING OF ENTITY VOTE.—The 1 col-
lective Council vote of an entity described under 
subparagraph (A) shall be cast by the head of 
such agency or, in the event such head is unable 
to cast such vote, the next most senior member of 
the entity available.’’; 
(B) in subsection (c), by striking ‘‘subpara-
graphs (C), (D), and (E)’’ and inserting ‘‘sub-
paragraphs (B), (C), and (D)’’; 
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(C) in subsection (e), by adding at the end 
the following: 
‘‘(3) STAFF ACCESS.—Any member of the Coun-
cil may select to have one or more individuals on the 
member’s staff attend a meeting of the Council, in-
cluding any meeting of representatives of the member 
agencies other than the members themselves. 
‘‘(4) CONGRESSIONAL OVERSIGHT.—All meetings 
of the Council, whether or not open to the public, shall 
be open to the attendance by members of the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate. 
‘‘(5) MEMBER AGENCY MEETINGS.—Any meeting 
of representatives of the member agencies other than 
the members themselves shall be open to attendance by 
staff of the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate.’’; 
(D) by striking subsection (g) (relating to 
the nonapplicability of FACA); 
(E) by inserting after subsection (f) the fol-
lowing: 
‘‘(g) OPEN MEETING REQUIREMENT.—The Council 
shall be an agency for purposes of section 552b of title 5, 
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United States Code (commonly referred to as the ‘Govern-
ment in the Sunshine Act’). 
‘‘(h) CONFIDENTIAL CONGRESSIONAL BRIEFINGS.—At 
the request of the Chairman of the Committee on Financial 
Services of the House of Representatives or the Chairman 
of the Committee on Banking, Housing, and Urban Affairs 
of the Senate, the Chairperson shall appear before Congress 
to provide a confidential briefing.’’; and 
(F) by redesignating subsections (h) through 
(j) as subsections (i) through (k), respectively; 
(3) in section 112— 
(A) in subsection (a)(2)— 
(i) in subparagraph (A), by striking 
‘‘direct the Office of Financial Research to’’; 
(ii) by striking subparagraphs (B), 
(H), (I), and (J); 
(iii) by redesignating subparagraphs 
(C), (D), (E), (F), (G), (K), (L), (M), and 
(N) as subparagraphs (B), (C), (D), (E), 
(F), (G), (H), (I), and (J), respectively; 
(iv) in subparagraph (J), as so redes-
ignated— 
(I) in clause (iii), by adding 
‘‘and’’ at the end; 
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(II) by striking clauses (iv) and 
(v); and 
(III) by redesignating clause (vi) 
as clause (iv); and 
(B) in subsection (d)— 
(i) in paragraph (1), by striking ‘‘the 
Office of Financial Research, member agen-
cies, and’’ and inserting ‘‘member agencies 
and’’; 
(ii) in paragraph (2), by striking ‘‘the 
Office of Financial Research, any member 
agency, and’’ and inserting ‘‘any member 
agency and’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘, acting through 
the Office of Financial Research,’’ each 
place it appears; and 
(II) in subparagraph (B), by 
striking ‘‘the Office of Financial Re-
search or’’; and 
(iv) in paragraph (5)(A), by striking 
‘‘, the Office of Financial Research,’’; 
(4) by amending section 118 to read as follows: 
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‘‘SEC. 118. COUNCIL FUNDING. 
‘‘There is authorized to be appropriated to the Council 
$4,000,000 for fiscal year 2017 and each fiscal year there-
after to carry out the duties of the Council.’’; 
(5) in section 163(b)(4)— 
(A) by striking ‘‘In addition’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—In addition’’; and 
(B) by adding at the end the following: 
‘‘(B) EXCEPTION FOR QUALIFYING BANKING 
ORGANIZATION.—Subparagraph (A) shall not 
apply to a proposed acquisition by a qualifying 
banking organization, as defined under section 
105 of the Financial CHOICE Act of 2016.’’; 
and 
(6) in section 165— 
(A) by striking ‘‘nonbank financial compa-
nies supervised by the Board of Governors and’’ 
each place such term appears; 
(B) by striking ‘‘nonbank financial com-
pany supervised by the Board of Governors and’’ 
each place such term appears; 
(C) in subsection (a), by amending para-
graph (2) to read as follows: 
‘‘(2) TAILORED
APPLICATION.—In prescribing 
more stringent prudential standards under this sec-
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tion, the Board of Governors may differentiate among 
companies on an individual basis or by category, tak-
ing into consideration their capital structure, riski-
ness, complexity, financial activities (including the fi-
nancial activities of their subsidiaries), size, and any 
other risk-related factors that the Board of Governors 
deems appropriate.’’; 
(D) in subsection (b)— 
(i) in paragraph (1)(B)(iv), by strik-
ing ‘‘, on its own or pursuant to a rec-
ommendation made by the Council in ac-
cordance with section 115,’’; 
(ii) in paragraph (2)— 
(I) by striking ‘‘foreign nonbank 
financial company supervised by the 
Board of Governors or’’; 
(II) by striking ‘‘shall—’’ and all 
that follows through ‘‘give due’’ and in-
serting ‘‘shall give due’’; 
(III) in subparagraph (A), by 
striking ‘‘; and’’ and inserting a pe-
riod; and 
(IV) by striking subparagraph 
(B); 
(iii) in paragraph (3)— 
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(I) in subparagraph (A)— 
(aa) by striking clause (i); 
(bb) by redesignating clauses 
(ii), (iii), and (iv) as clauses (i), 
(ii), and (iii), respectively; and 
(cc) in clause (iii), as so re-
designated, by adding ‘‘and’’ at 
the end; 
(II) by striking subparagraphs 
(B) and (C); and 
(III) by redesignating subpara-
graph (D) as subparagraph (B); and 
(iv) in paragraph (4), by striking ‘‘a 
nonbank financial company supervised by 
the Board of Governors or’’; 
(E) in subsection (c)— 
(i) in paragraph (1), by striking 
‘‘under section 115(c)’’; and 
(ii) in paragraph (2)— 
(I) by amending subparagraph 
(A) to read as follows: 
‘‘(A) any recommendations of the Council;’’; 
and 
(II) in subparagraph (D), by 
striking ‘‘nonbank financial company 
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supervised by the Board of Governors 
or’’; 
(F) in subsection (d)— 
(i) by striking ‘‘a nonbank financial 
company supervised by the Board of Gov-
ernors or’’ each place such term appears; 
(ii) in paragraph (1), by striking ‘‘pe-
riodically’’ and inserting ‘‘not more often 
than every 2 years’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘The Board’’ and 
inserting the following: 
‘‘(A) IN GENERAL.—The Board’’; 
(II) by striking ‘‘shall review’’ 
and inserting the following: ‘‘shall— 
‘‘(i) review’’; 
(III) by striking the period and 
inserting ‘‘; and’’; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(ii) not later than the end of the 6- 
month period beginning on the date the 
bank holding company submits the resolu-
tion plan, provide feedback to the bank 
holding company on such plan. 
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(I) in subsection (h)— 
(i) by striking paragraph (1); 
(ii) by redesignating paragraphs (2), 
(3), and (4) as paragraphs (1), (2), and (3), 
respectively; 
(iii) in paragraph (1), as so redesig-
nated, by striking ‘‘paragraph (3)’’ each 
place such term appears and inserting 
‘‘paragraph (2)’’; and 
(iv) in paragraph (2), as so redesig-
nated— 
(I) in subparagraph (A), by strik-
ing ‘‘the nonbank financial company 
supervised by the Board of Governors 
or bank holding company described in 
subsection (a), as applicable’’ and in-
serting ‘‘a bank holding company de-
scribed in subsection (a)’’; and 
(II) in subparagraph (B), by 
striking ‘‘the nonbank financial com-
pany supervised by the Board of Gov-
ernors or a bank holding company de-
scribed in subsection (a), as applica-
ble’’ and inserting ‘‘a bank holding 
company described in subsection (a)’’; 
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(J) in subsection (i)— 
(i) in paragraph (1)— 
(I) in subparagraph (B)— 
(aa) by amending clause (i) 
to read as follows: 
‘‘(i) shall— 
‘‘(I) issue regulations, after pro-
viding for public notice and comment, 
that provide for at least 3 different sets 
of conditions under which the evalua-
tion required by this subsection shall 
be conducted, including baseline, ad-
verse, and severely adverse, and meth-
odologies, including models used to es-
timate losses on certain assets; and 
‘‘(II) provide copies of such regu-
lations to the Comptroller General of 
the United States and the Panel of 
Economic Advisors of the Congres-
sional Budget Office before publishing 
such regulations;’’; 
(bb) in clause (ii), by strik-
ing ‘‘and nonbank financial com-
panies’’; and 
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(cc) in clause (v), by insert-
ing before the period the following: 
‘‘, including any results of a re-
submitted test’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(C) APPLICATION TO CCAR.—The require-
ments of subparagraph (B) shall apply to all 
stress tests performed under the Comprehensive 
Capital Analysis and Review exercise established 
by the Board of Governors.’’; and 
(ii) in paragraph (2)(A)— 
(I) by striking ‘‘a bank holding 
company’’ and inserting ‘‘bank holding 
company’’; and 
(II) by striking ‘‘All other finan-
cial companies’’ and inserting ‘‘All 
other bank holding companies’’; 
(K) in subsection (j)— 
(i) in paragraph (1), by striking ‘‘or a 
nonbank financial company supervised by 
the Board of Governors’’; and 
(ii) in paragraph (2), by striking ‘‘the 
factors described in subsections (a) and (b) 
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of section 113 and any other’’ and inserting 
‘‘any’’; 
(L) in subsection (k)(1), by striking ‘‘or 
nonbank financial company supervised by the 
Board of Governors’’; and 
(M) by adding at the end the following: 
‘‘(l) EXEMPTION FOR QUALIFYING BANKING ORGANI-
ZATIONS.—This section shall not apply to a proposed acqui-
sition by a qualifying banking organization, as defined 
under section 105 of the Financial CHOICE Act of 2016.’’. 
(c) ACTIONS
TO CREATE
A BANK HOLDING COM-
PANY.—Section 3(b)(1) of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1842(b)(1)) is amended— 
(1) by striking ‘‘Upon receiving’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—Upon receiving’’; 
(2) by striking ‘‘Notwithstanding any other pro-
vision’’ and inserting the following: 
‘‘(B) IMMEDIATE ACTION.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision’’; and 
(3) by adding at the end the following: 
‘‘(ii) EXCEPTION.—The Board may not 
take any action pursuant to clause (i) on 
an application that would cause any com-
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pany to become a bank holding company 
unless such application involves the com-
pany acquiring a bank that is critically 
undercapitalized (as such term is defined 
under section 38(b) of the Federal Deposit 
Insurance Act).’’. 
(d) CONCENTRATION LIMITS APPLIED ONLY TO BANK-
ING ORGANIZATIONS.—Section 14 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1852) is amended— 
(1) by striking ‘‘financial company’’ each place 
such term appears and inserting ‘‘banking organiza-
tion’’; 
(2) in subsection (a)— 
(A) by amending paragraph (2) to read as 
follows: 
‘‘(2) the term ‘banking organization’ means— 
‘‘(A) an insured depository institution; 
‘‘(B) a bank holding company; 
‘‘(C) a savings and loan holding company; 
‘‘(D) a company that controls an insured 
depository institution; and 
‘‘(E) a foreign bank or company that is 
treated as a bank holding company for purposes 
of this Act; and’’; 
(B) in paragraph (3)— 
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(i) in subparagraph (A)(ii), by adding 
‘‘and’’ at the end; 
(ii) in subparagraph (B)(ii), by strik-
ing ‘‘; and’’ and inserting a period; and 
(iii) by striking subparagraph (C); 
and 
(3) in subsection (b), by striking ‘‘financial com-
panies’’ and inserting ‘‘banking organizations’’. 
(e) CONFORMING AMENDMENT.—Section 3502(5) of 
title 44, United States Code, is amended by striking ‘‘the 
Office of Financial Research,’’. 
(f) 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 subtitle B of title I and 113, 114, 115, 
116, 117, 119, 120, 121, 161, 162, 164, 166, 167, 168, 170, 
172, 174, and 175. 
Subtitle B—Repeal of the Orderly 
Liquidation Authority 
SEC. 221. REPEAL OF THE ORDERLY LIQUIDATION AUTHOR-
ITY. 
(a) IN GENERAL.—Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby re-
pealed and any Federal law amended by such title shall, 
on and after the effective date of this Act, be effective as 
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if title II of the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act had not been enacted. 
(b) CONFORMING AMENDMENTS.— 
(1) DODD-FRANK
WALL
STREET
REFORM
AND 
CONSUMER PROTECTION ACT.—The Dodd-Frank Wall 
Street Reform and Consumer Protection Act is 
amended— 
(A) in the table of contents for such Act, by 
striking all items relating to title II; 
(B) in section 151, by amending paragraph 
(2) to read as follows: 
‘‘(2) the term ‘financial company’ means— 
‘‘(A) any company that is incorporated or 
organized under any provision of Federal law or 
the laws of any State; 
‘‘(B) any company that is— 
‘‘(i) a bank holding company, as de-
fined in section 2(a) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1841(a)); 
‘‘(ii) a nonbank financial company su-
pervised by the Board of Governors; 
‘‘(iii) any company that is predomi-
nantly engaged in activities that the Board 
of Governors has determined are financial 
in nature or incidental thereto for purposes 
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of section 4(k) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(k)) other 
than a company described in clause (i) or 
(ii); or 
‘‘(iv) any subsidiary of any company 
described in any of clauses (i) through (iii) 
that is predominantly engaged in activities 
that the Board of Governors has determined 
are financial in nature or incidental thereto 
for purposes of section 4(k) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 
1843(k)) (other than a subsidiary that is an 
insured depository institution or an insur-
ance company); 
‘‘(C) any company that is not a Farm 
Credit System institution chartered under and 
subject to the provisions of the Farm Credit Act 
of 1971, as amended (12 U.S.C. 2001 et seq.), a 
governmental entity, or a regulated entity, as de-
fined under section 1303(20) of the Federal 
Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4502(20)); 
and 
‘‘(D) includes an insured depository institu-
tion and an insurance company;’’; 
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(C) in section 165(d)(6), by striking ‘‘, a re-
ceiver appointed under title II,’’; and 
(D) in section 716(g), by striking ‘‘or a cov-
ered financial company under title II’’. 
(2) FEDERAL DEPOSIT INSURANCE ACT.—Section 
10(b)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(b)(3)) is amended by striking ‘‘, or of 
such nonbank financial company supervised by the 
Board of Governors or bank holding company de-
scribed in section 165(a) of the Financial Stability 
Act of 2010, for the purpose of implementing its au-
thority to provide for orderly liquidation of any such 
company under title II of that Act’’. 
(3) FEDERAL RESERVE ACT.—Section 13(3) of 
the Federal Reserve Act is amended— 
(A) in subparagraph (B)— 
(i) in clause (ii), by striking ‘‘, resolu-
tion under title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection 
Act, or’’ and inserting ‘‘or is subject to reso-
lution under’’; and 
(ii) in clause (iii), by striking ‘‘, reso-
lution under title II of the Dodd-Frank 
Wall Street Reform and Consumer Protec-
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tion Act, or’’ and inserting ‘‘or resolution 
under’’; and 
(B) by striking subparagraph (E). 
Subtitle C—Financial Institution 
Bankruptcy 
SEC. 231. GENERAL PROVISIONS RELATING TO COVERED FI-
NANCIAL CORPORATIONS. 
(a) DEFINITION.—Section 101 of title 11, United 
States Code, is amended by inserting the following after 
paragraph (9): 
‘‘(9A) The term ‘covered financial corporation’ 
means any corporation incorporated or organized 
under any Federal or State law, other than a stock-
broker, a commodity broker, or an entity of the kind 
specified in paragraph (2) or (3) of section 109(b), 
that is— 
‘‘(A) a bank holding company, as defined in 
section 2(a) of the Bank Holding Company Act 
of 1956; or 
‘‘(B) a corporation that exists for the pri-
mary purpose of owning, controlling and financ-
ing its subsidiaries, that has total consolidated 
assets of $50,000,000,000 or greater, and for 
which, in its most recently completed fiscal 
year— 
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‘‘(i) annual gross revenues derived by 
the corporation and all of its subsidiaries 
from activities that are financial in nature 
(as defined in section 4(k) of the Bank 
Holding Company Act of 1956) and, if ap-
plicable, from the ownership or control of 
one or more insured depository institutions, 
represents 85 percent or more of the consoli-
dated annual gross revenues of the corpora-
tion; or 
‘‘(ii) the consolidated assets of the cor-
poration and all of its subsidiaries related 
to activities that are financial in nature (as 
defined in section 4(k) of the Bank Holding 
Company Act of 1956) and, if applicable, 
related to the ownership or control of one or 
more insured depository institutions, rep-
resents 85 percent or more of the consoli-
dated assets of the corporation.’’. 
(b) APPLICABILITY
OF CHAPTERS.—Section 103 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘(l) Subchapter V of chapter 11 of this title applies 
only in a case under chapter 11 concerning a covered finan-
cial corporation.’’. 
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(c) WHO MAY BE A DEBTOR.—Section 109 of title 11, 
United States Code, is amended— 
(1) in subsection (b)— 
(A) in paragraph (2), by striking ‘‘or’’ at 
the end; 
(B) in paragraph (3)(B), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(4) a covered financial corporation.’’; and 
(2) in subsection (d)— 
(A) by striking ‘‘and’’ before ‘‘an uninsured 
State member bank’’; 
(B) by striking ‘‘or’’ before ‘‘a corporation’’; 
and 
(C) by inserting ‘‘, or a covered financial 
corporation’’ after ‘‘Federal Deposit Insurance 
Corporation Improvement Act of 1991’’. 
(d) CONVERSION TO CHAPTER 7.—Section 1112 of title 
11, United States Code, is amended by adding at the end 
the following: 
‘‘(g) Notwithstanding section 109(b), the court may 
convert a case under subchapter V to a case under chapter 
7 if— 
‘‘(1) a transfer approved under section 1185 has 
been consummated; 
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‘‘(2) the court has ordered the appointment of a 
special trustee under section 1186; and 
‘‘(3) the court finds, after notice and a hearing, 
that conversion is in the best interest of the creditors 
and the estate.’’. 
(e)(1) Section 726(a)(1) of title 11, United States 
Code, is amended by inserting after ‘‘first,’’ the following: 
‘‘in payment of any unpaid fees, costs, and expenses of a 
special trustee appointed under section 1186, and then’’. 
(2) Section 1129(a) of title 11, United States Code, 
is amended by inserting after paragraph (16) the following: 
‘‘(17) In a case under subchapter V, all payable 
fees, costs, and expenses of the special trustee have 
been paid or the plan provides for the payment of all 
such fees, costs, and expenses on the effective date of 
the plan. 
‘‘(18) In a case under subchapter V, confirma-
tion of the plan is not likely to cause serious adverse 
effects on financial stability in the United States.’’. 
(f) Section 322(b)(2) of title 11, United States Code, 
is amended by striking ‘‘The’’ and inserting ‘‘In cases under 
subchapter V, the United States trustee shall recommend to 
the court, and in all other cases, the’’. 
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SEC. 232. LIQUIDATION, REORGANIZATION, OR RECAPITAL-
IZATION OF A COVERED FINANCIAL COR-
PORATION. 
Chapter 11 of title 11, United States Code, is amended 
by adding at the end the following (and conforming the 
table of contents for such chapter accordingly): 
‘‘SUBCHAPTER V—LIQUIDATION, REORGANIZA-
TION, OR RECAPITALIZATION OF A COVERED 
FINANCIAL CORPORATION 
‘‘§ 1181. Inapplicability of other sections 
‘‘Sections 303 and 321(c) do not apply in a case under 
this subchapter concerning a covered financial corporation. 
Section 365 does not apply to a transfer under section 1185, 
1187, or 1188. 
‘‘§ 1182. Definitions for this subchapter 
‘‘In this subchapter, the following definitions shall 
apply: 
‘‘(1) The term ‘Board’ means the Board of Gov-
ernors of the Federal Reserve System. 
‘‘(2) The term ‘bridge company’ means a newly 
formed corporation to which property of the estate 
may be transferred under section 1185(a) and the eq-
uity securities of which may be transferred to a spe-
cial trustee under section 1186(a). 
‘‘(3) The term ‘capital structure debt’ means all 
unsecured debt of the debtor for borrowed money for 
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which the debtor is the primary obligor, other than a 
qualified financial contract and other than debt se-
cured by a lien on property of the estate that is to 
be transferred to a bridge company pursuant to an 
order of the court under section 1185(a). 
‘‘(4) The term ‘contractual right’ means a con-
tractual right of a kind defined in section 555, 556, 
559, 560, or 561. 
‘‘(5) The term ‘qualified financial contract’ 
means any contract of a kind defined in paragraph 
(25), (38A), (47), or (53B) of section 101, section 
741(7), or paragraph (4), (5), (11), or (13) of section 
761. 
‘‘(6) The term ‘special trustee’ means the trustee 
of a trust formed under section 1186(a)(1). 
‘‘§ 1183. Commencement of a case concerning a cov-
ered financial corporation 
‘‘(a) A case under this subchapter concerning a covered 
financial corporation may be commenced by the filing of 
a petition with the court by the debtor under section 301 
only if the debtor states to the best of its knowledge under 
penalty of perjury in the petition that it is a covered finan-
cial corporation. 
‘‘(b) The commencement of a case under subsection (a) 
constitutes an order for relief under this subchapter. 
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‘‘(c) The members of the board of directors (or body 
performing similar functions) of a covered financial com-
pany shall have no liability to shareholders, creditors, or 
other parties in interest for a good faith filing of a petition 
to commence a case under this subchapter, or for any rea-
sonable action taken in good faith in contemplation of or 
in connection with such a petition or a transfer under sec-
tion 1185 or section 1186, whether prior to or after com-
mencement of the case. 
‘‘(d) Counsel to the debtor shall provide, to the greatest 
extent practicable without disclosing the identity of the po-
tential debtor, sufficient confidential notice to the chief 
judge of the court of appeals for the circuit embracing the 
district in which such counsel intends to file a petition to 
commence a case under this subchapter regarding the poten-
tial commencement of such case. The chief judge of such 
court shall randomly assign to preside over such case a 
bankruptcy judge selected from among the bankruptcy 
judges designated by the Chief Justice of the United States 
under section 298 of title 28. 
‘‘§ 1184. Regulators 
‘‘The Board, the Securities Exchange Commission, the 
Office of the Comptroller of the Currency of the Department 
of the Treasury, the Commodity Futures Trading Commis-
sion, and the Federal Deposit Insurance Corporation may 
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raise and may appear and be heard on any issue in any 
case or proceeding under this subchapter. 
‘‘§ 1185. Special transfer of property of the estate 
‘‘(a) On request of the trustee, and after notice and 
a hearing that shall occur not less than 24 hours after the 
order for relief, the court may order a transfer under this 
section of property of the estate, and the assignment of exec-
utory contracts, unexpired leases, and qualified financial 
contracts of the debtor, to a bridge company. Upon the entry 
of an order approving such transfer, any property trans-
ferred, and any executory contracts, unexpired leases, and 
qualified financial contracts assigned under such order 
shall no longer be property of the estate. Except as provided 
under this section, the provisions of section 363 shall apply 
to a transfer and assignment under this section. 
‘‘(b) Unless the court orders otherwise, notice of a re-
quest for an order under subsection (a) shall consist of elec-
tronic or telephonic notice of not less than 24 hours to— 
‘‘(1) the debtor; 
‘‘(2) the holders of the 20 largest secured claims 
against the debtor; 
‘‘(3) the holders of the 20 largest unsecured 
claims against the debtor; 
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‘‘(4) counterparties to any debt, executory con-
tract, unexpired lease, and qualified financial con-
tract requested to be transferred under this section; 
‘‘(5) the Board; 
‘‘(6) the Federal Deposit Insurance Corporation; 
‘‘(7) the Secretary of the Treasury and the Office 
of the Comptroller of the Currency of the Treasury; 
‘‘(8) the Commodity Futures Trading Commis-
sion; 
‘‘(9) the Securities and Exchange Commission; 
‘‘(10) the United States trustee or bankruptcy 
administrator; and 
‘‘(11) each primary financial regulatory agency, 
as defined in section 2(12) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, with re-
spect to any affiliate the equity securities of which are 
proposed to be transferred under this section. 
‘‘(c) The court may not order a transfer under this 
section unless the court determines, based upon a prepon-
derance of the evidence, that— 
‘‘(1) the transfer under this section is necessary 
to prevent serious adverse effects on financial stability 
in the United States; 
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‘‘(2) the transfer does not provide for the as-
sumption of any capital structure debt by the bridge 
company; 
‘‘(3) the transfer does not provide for the transfer 
to the bridge company of any property of the estate 
that is subject to a lien securing a debt, executory 
contract, unexpired lease or agreement (including a 
qualified financial contract) of the debtor unless— 
‘‘(A)(i) the bridge company assumes such 
debt, executory contract, unexpired lease or 
agreement (including a qualified financial con-
tract), including any claims arising in respect 
thereof that would not be allowed secured claims 
under section 506(a)(1) and after giving effect to 
such transfer, such property remains subject to 
the lien securing such debt, executory contract, 
unexpired lease or agreement (including a quali-
fied financial contract); and 
‘‘(ii) the court has determined that assump-
tion of such debt, executory contract, unexpired 
lease or agreement (including a qualified finan-
cial contract) by the bridge company is in the 
best interests of the estate; or 
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‘‘(B) such property is being transferred to 
the bridge company in accordance with the pro-
visions of section 363; 
‘‘(4) the transfer does not provide for the as-
sumption by the bridge company of any debt, execu-
tory contract, unexpired lease or agreement (includ-
ing a qualified financial contract) of the debtor se-
cured by a lien on property of the estate unless the 
transfer provides for such property to be transferred 
to the bridge company in accordance with paragraph 
(3)(A) of this subsection; 
‘‘(5) the transfer does not provide for the transfer 
of the equity of the debtor; 
‘‘(6) the trustee has demonstrated that the bridge 
company is not likely to fail to meet the obligations 
of any debt, executory contract, qualified financial 
contract, or unexpired lease assumed and assigned to 
the bridge company; 
‘‘(7) the transfer provides for the transfer to a 
special trustee all of the equity securities in the bridge 
company and appointment of a special trustee in ac-
cordance with section 1186; 
‘‘(8) after giving effect to the transfer, adequate 
provision has been made for the fees, costs, and ex-
penses of the estate and special trustee; and 
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‘‘(9) the bridge company will have governing 
documents, and initial directors and senior officers, 
that are in the best interest of creditors and the estate. 
‘‘(d) Immediately before a transfer under this section, 
the bridge company that is the recipient of the transfer 
shall— 
‘‘(1) not have any property, executory contracts, 
unexpired leases, qualified financial contracts, or 
debts, other than any property acquired or executory 
contracts, unexpired leases, or debts assumed when 
acting as a transferee of a transfer under this section; 
and 
‘‘(2) have equity securities that are property of 
the estate, which may be sold or distributed in accord-
ance with this title. 
‘‘§ 1186. Special trustee 
‘‘(a)(1) An order approving a transfer under section 
1185 shall require the trustee to transfer to a qualified and 
independent special trustee, who is appointed by the court, 
all of the equity securities in the bridge company that is 
the recipient of a transfer under section 1185 to hold in 
trust for the sole benefit of the estate, subject to satisfaction 
of the special trustee’s fees, costs, and expenses. The trust 
of which the special trustee is the trustee shall be a newly 
formed trust governed by a trust agreement approved by 
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the court as in the best interests of the estate, and shall 
exist for the sole purpose of holding and administering, and 
shall be permitted to dispose of, the equity securities of the 
bridge company in accordance with the trust agreement. 
‘‘(2) In connection with the hearing to approve a 
transfer under section 1185, the trustee shall confirm to the 
court that the Board has been consulted regarding the iden-
tity of the proposed special trustee and advise the court of 
the results of such consultation. 
‘‘(b) The trust agreement governing the trust shall pro-
vide— 
‘‘(1) for the payment of the fees, costs, expenses, 
and indemnities of the special trustee from the assets 
of the debtor’s estate; 
‘‘(2) that the special trustee provide— 
‘‘(A) quarterly reporting to the estate, which 
shall be filed with the court; and 
‘‘(B) information about the bridge company 
reasonably requested by a party in interest to 
prepare a disclosure statement for a plan pro-
viding for distribution of any securities of the 
bridge company if such information is necessary 
to prepare such disclosure statement; 
‘‘(3) that for as long as the equity securities of 
the bridge company are held by the trust, the special 
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trustee shall file a notice with the court in connection 
with— 
‘‘(A) any change in a director or senior offi-
cer of the bridge company; 
‘‘(B) any modification to the governing doc-
uments of the bridge company; and 
‘‘(C) any material corporate action of the 
bridge company, including— 
‘‘(i) recapitalization; 
‘‘(ii) a material borrowing; 
‘‘(iii) termination of an intercompany 
debt or guarantee; 
‘‘(iv) a transfer of a substantial por-
tion of the assets of the bridge company; or 
‘‘(v) the issuance or sale of any securi-
ties of the bridge company; 
‘‘(4) that any sale of any equity securities of the 
bridge company shall not be consummated until the 
special trustee consults with the Federal Deposit In-
surance Corporation and the Board regarding such 
sale and discloses the results of such consultation with 
the court; 
‘‘(5) that, subject to reserves for payments per-
mitted under paragraph (1) provided for in the trust 
agreement, the proceeds of the sale of any equity secu-
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rities of the bridge company by the special trustee be 
held in trust for the benefit of or transferred to the 
estate; 
‘‘(6) the process and guidelines for the replace-
ment of the special trustee; and 
‘‘(7) that the property held in trust by the spe-
cial trustee is subject to distribution in accordance 
with subsection (c). 
‘‘(c)(1) The special trustee shall distribute the assets 
held in trust— 
‘‘(A) if the court confirms a plan in the case, in 
accordance with the plan on the effective date of the 
plan; or 
‘‘(B) if the case is converted to a case under 
chapter 7, as ordered by the court. 
‘‘(2) As soon as practicable after a final distribution 
under paragraph (1), the office of the special trustee shall 
terminate, except as may be necessary to wind up and con-
clude the business and financial affairs of the trust. 
‘‘(d) After a transfer to the special trustee under this 
section, the special trustee shall be subject only to applicable 
nonbankruptcy law, and the actions and conduct of the spe-
cial trustee shall no longer be subject to approval by the 
court in the case under this subchapter. 
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‘‘§ 1187. Temporary and supplemental automatic stay; 
assumed debt 
‘‘(a)(1) A petition filed under section 1183 operates 
as a stay, applicable to all entities, of the termination, ac-
celeration, or modification of any debt, contract, lease, or 
agreement of the kind described in paragraph (2), or of any 
right or obligation under any such debt, contract, lease, or 
agreement, solely because of— 
‘‘(A) a default by the debtor under any such 
debt, contract, lease, or agreement; or 
‘‘(B) a provision in such debt, contract, lease, or 
agreement, or in applicable nonbankruptcy law, that 
is conditioned on— 
‘‘(i) the insolvency or financial condition of 
the debtor at any time before the closing of the 
case; 
‘‘(ii) the commencement of a case under this 
title concerning the debtor; 
‘‘(iii) the appointment of or taking posses-
sion by a trustee in a case under this title con-
cerning the debtor or by a custodian before the 
commencement of the case; or 
‘‘(iv) a credit rating agency rating, or ab-
sence or withdrawal of a credit rating agency 
rating— 
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‘‘(I) of the debtor at any time after the 
commencement of the case; 
‘‘(II) of an affiliate during the period 
from the commencement of the case until 48 
hours after such order is entered; 
‘‘(III) of the bridge company while the 
trustee or the special trustee is a direct or 
indirect beneficial holder of more than 50 
percent of the equity securities of— 
‘‘(aa) the bridge company; or 
‘‘(bb) the affiliate, if all of the di-
rect or indirect interests in the affiliate 
that are property of the estate are 
transferred under section 1185; or 
‘‘(IV) of an affiliate while the trustee 
or the special trustee is a direct or indirect 
beneficial holder of more than 50 percent of 
the equity securities of— 
‘‘(aa) the bridge company; or 
‘‘(bb) the affiliate, if all of the di-
rect or indirect interests in the affiliate 
that are property of the estate are 
transferred under section 1185. 
‘‘(2) A debt, contract, lease, or agreement described in 
this paragraph is— 
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‘‘(i) the entry of an order authorizing a 
transfer under section 1185 in which the direct 
or indirect interests in the affiliate that are 
property of the estate are not transferred under 
section 1185; 
‘‘(ii) a final order by the court denying the 
request for a transfer under section 1185; 
‘‘(iii) 48 hours after the commencement of 
the case if the court has not ordered a transfer 
under section 1185; or 
‘‘(iv) the time the case is dismissed. 
‘‘(4) Subsections (d), (e), (f), and (g) of section 362 
apply to a stay under this subsection. 
‘‘(b) A debt, executory contract (other than a qualified 
financial contract), or unexpired lease of the debtor, or an 
agreement under which the debtor has issued or is obligated 
for any debt, may be assumed by a bridge company in a 
transfer under section 1185 notwithstanding any provision 
in an agreement or in applicable nonbankruptcy law 
that— 
‘‘(1) prohibits, restricts, or conditions the assign-
ment of the debt, contract, lease, or agreement; or 
‘‘(2) accelerates, terminates, or modifies, or per-
mits a party other than the debtor to terminate or 
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modify, the debt, contract, lease, or agreement on ac-
count of— 
‘‘(A) the assignment of the debt, contract, 
lease, or agreement; or 
‘‘(B) a change in control of any party to the 
debt, contract, lease, or agreement. 
‘‘(c)(1) A debt, contract, lease, or agreement of the kind 
described in subparagraph (A) or (B) of subsection (a)(2) 
may not be accelerated, terminated, or modified, and any 
right or obligation under such debt, contract, lease, or agree-
ment may not be accelerated, terminated, or modified, as 
to the bridge company solely because of a provision in the 
debt, contract, lease, or agreement or in applicable non-
bankruptcy law— 
‘‘(A) of the kind described in subsection (a)(1)(B) 
as applied to the debtor; 
‘‘(B) that prohibits, restricts, or conditions the 
assignment of the debt, contract, lease, or agreement; 
or 
‘‘(C) that accelerates, terminates, or modifies, or 
permits a party other than the debtor to terminate or 
modify, the debt, contract, lease or agreement on ac-
count of— 
‘‘(i) the assignment of the debt, contract, 
lease, or agreement; or 
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‘‘(ii) a change in control of any party to the 
debt, contract, lease, or agreement. 
‘‘(2) If there is a default by the debtor under a provi-
sion other than the kind described in paragraph (1) in a 
debt, contract, lease or agreement of the kind described in 
subparagraph (A) or (B) of subsection (a)(2), the bridge 
company may assume such debt, contract, lease, or agree-
ment only if the bridge company— 
‘‘(A) shall cure the default; 
‘‘(B) compensates, or provides adequate assur-
ance in connection with a transfer under section 1185 
that the bridge company will promptly compensate, a 
party other than the debtor to the debt, contract, lease, 
or agreement, for any actual pecuniary loss to the 
party resulting from the default; and 
‘‘(C) provides adequate assurance in connection 
with a transfer under section 1185 of future perform-
ance under the debt, contract, lease, or agreement, as 
determined by the court under section 1185(c)(4). 
‘‘§ 1188. Treatment of qualified financial contracts 
and affiliate contracts 
‘‘(a) Notwithstanding sections 362(b)(6), 362(b)(7), 
362(b)(17), 362(b)(27), 362(o), 555, 556, 559, 560, and 561, 
a petition filed under section 1183 operates as a stay, dur-
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ing the period specified in section 1187(a)(3)(A), applicable 
to all entities, of the exercise of a contractual right— 
‘‘(1) to cause the modification, liquidation, ter-
mination, or acceleration of a qualified financial con-
tract of the debtor or an affiliate; 
‘‘(2) to offset or net out any termination value, 
payment amount, or other transfer obligation arising 
under or in connection with a qualified financial con-
tract of the debtor or an affiliate; or 
‘‘(3) under any security agreement or arrange-
ment or other credit enhancement forming a part of 
or related to a qualified financial contract of the debt-
or or an affiliate. 
‘‘(b)(1) During the period specified in section 
1187(a)(3)(A), the trustee or the affiliate shall perform all 
payment and delivery obligations under such qualified fi-
nancial contract of the debtor or the affiliate, as the case 
may be, that become due after the commencement of the 
case. The stay provided under subsection (a) terminates as 
to a qualified financial contract of the debtor or an affiliate 
immediately upon the failure of the trustee or the affiliate, 
as the case may be, to perform any such obligation during 
such period. 
‘‘(2) Any failure by a counterparty to any qualified 
financial contract of the debtor or any affiliate to perform 
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any payment or delivery obligation under such qualified 
financial contract, including during the pendency of the 
stay provided under subsection (a), shall constitute a breach 
of such qualified financial contract by the counterparty. 
‘‘(c) Subject to the court’s approval, a qualified finan-
cial contract between an entity and the debtor may be as-
signed to or assumed by the bridge company in a transfer 
under, and in accordance with, section 1185 if and only 
if— 
‘‘(1) all qualified financial contracts between the 
entity and the debtor are assigned to and assumed by 
the bridge company in the transfer under section 
1185; 
‘‘(2) all claims of the entity against the debtor 
in respect of any qualified financial contract between 
the entity and the debtor (other than any claim that, 
under the terms of the qualified financial contract, is 
subordinated to the claims of general unsecured credi-
tors) are assigned to and assumed by the bridge com-
pany; 
‘‘(3) all claims of the debtor against the entity 
under any qualified financial contract between the 
entity and the debtor are assigned to and assumed by 
the bridge company; and 
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‘‘(4) all property securing or any other credit en-
hancement furnished by the debtor for any qualified 
financial contract described in paragraph (1) or any 
claim described in paragraph (2) or (3) under any 
qualified financial contract between the entity and 
the debtor is assigned to and assumed by the bridge 
company. 
‘‘(d) Notwithstanding any provision of a qualified fi-
nancial contract or of applicable nonbankruptcy law, a 
qualified financial contract of the debtor that is assumed 
or assigned in a transfer under section 1185 may not be 
accelerated, terminated, or modified, after the entry of the 
order approving a transfer under section 1185, and any 
right or obligation under the qualified financial contract 
may not be accelerated, terminated, or modified, after the 
entry of the order approving a transfer under section 1185 
solely because of a condition described in section 1187(c)(1), 
other than a condition of the kind specified in section 
1187(b) that occurs after property of the estate no longer 
includes a direct beneficial interest or an indirect beneficial 
interest through the special trustee, in more than 50 percent 
of the equity securities of the bridge company. 
‘‘(e) Notwithstanding any provision of any agreement 
or in applicable nonbankruptcy law, an agreement of an 
affiliate (including an executory contract, an unexpired 
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lease, qualified financial contract, or an agreement under 
which the affiliate issued or is obligated for debt) and any 
right or obligation under such agreement may not be accel-
erated, terminated, or modified, solely because of a condi-
tion described in section 1187(c)(1), other than a condition 
of the kind specified in section 1187(b) that occurs after 
the bridge company is no longer a direct or indirect bene-
ficial holder of more than 50 percent of the equity securities 
of the affiliate, at any time after the commencement of the 
case if— 
‘‘(1) all direct or indirect interests in the affil-
iate that are property of the estate are transferred 
under section 1185 to the bridge company within the 
period specified in subsection (a); 
‘‘(2) the bridge company assumes— 
‘‘(A) any guarantee or other credit enhance-
ment issued by the debtor relating to the agree-
ment of the affiliate; and 
‘‘(B) any obligations in respect of rights of 
setoff, netting arrangement, or debt of the debtor 
that directly arises out of or directly relates to 
the guarantee or credit enhancement; and 
‘‘(3) any property of the estate that directly 
serves as collateral for the guarantee or credit en-
hancement is transferred to the bridge company. 
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‘‘§ 1189. Licenses, permits, and registrations 
‘‘(a) Notwithstanding any otherwise applicable non-
bankruptcy law, if a request is made under section 1185 
for a transfer of property of the estate, any Federal, State, 
or local license, permit, or registration that the debtor or 
an affiliate had immediately before the commencement of 
the case and that is proposed to be transferred under section 
1185 may not be accelerated, terminated, or modified at 
any time after the request solely on account of— 
‘‘(1) the insolvency or financial condition of the 
debtor at any time before the closing of the case; 
‘‘(2) the commencement of a case under this title 
concerning the debtor; 
‘‘(3) the appointment of or taking possession by 
a trustee in a case under this title concerning the 
debtor or by a custodian before the commencement of 
the case; or 
‘‘(4) a transfer under section 1185. 
‘‘(b) Notwithstanding any otherwise applicable non-
bankruptcy law, any Federal, State, or local license, permit, 
or registration that the debtor had immediately before the 
commencement of the case that is included in a transfer 
under section 1185 shall be valid and all rights and obliga-
tions thereunder shall vest in the bridge company. 
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‘‘§ 1190. Exemption from securities laws 
‘‘For purposes of section 1145, a security of the bridge 
company shall be deemed to be a security of a successor 
to the debtor under a plan if the court approves the disclo-
sure statement for the plan as providing adequate informa-
tion (as defined in section 1125(a)) about the bridge com-
pany and the security. 
‘‘§ 1191. Inapplicability of certain avoiding powers 
‘‘A transfer made or an obligation incurred by the 
debtor to an affiliate prior to or after the commencement 
of the case, including any obligation released by the debtor 
or the estate to or for the benefit of an affiliate, in con-
templation of or in connection with a transfer under section 
1185 is not avoidable under section 544, 547, 548(a)(1)(B), 
or 549, or under any similar nonbankruptcy law. 
‘‘§ 1192. Consideration of financial stability 
‘‘The court may consider the effect that any decision 
in connection with this subchapter may have on financial 
stability in the United States.’’. 
SEC. 233. AMENDMENTS TO TITLE 28, UNITED STATES 
CODE. 
(a) AMENDMENT TO CHAPTER 13.—Chapter 13 of title 
28, United States Code, is amended by adding at the end 
the following: 
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‘‘§ 298. Judge for a case under subchapter V of chap-
ter 11 of title 11 
‘‘(a)(1) Notwithstanding section 295, the Chief Justice 
of the United States shall designate not fewer than 10 bank-
ruptcy judges to be available to hear a case under sub-
chapter V of chapter 11 of title 11. Bankruptcy judges may 
request to be considered by the Chief Justice of the United 
States for such designation. 
‘‘(2) Notwithstanding section 155, a case under sub-
chapter V of chapter 11 of title 11 shall be heard under 
section 157 by a bankruptcy judge designated under para-
graph (1), who shall be randomly assigned to hear such case 
by the chief judge of the court of appeals for the circuit 
embracing the district in which the case is pending. To the 
greatest extent practicable, the approvals required under 
section 155 should be obtained. 
‘‘(3) If the bankruptcy judge assigned to hear a case 
under paragraph (2) is not assigned to the district in which 
the case is pending, the bankruptcy judge shall be tempo-
rarily assigned to the district. 
‘‘(b) A case under subchapter V of chapter 11 of title 
11, and all proceedings in the case, shall take place in the 
district in which the case is pending. 
‘‘(c) In this section, the term ‘covered financial cor-
poration’ has the meaning given that term in section 
101(9A) of title 11.’’. 
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(b) AMENDMENT TO SECTION 1334 OF TITLE 28.—Sec-
tion 1334 of title 28, United States Code, is amended by 
adding at the end the following: 
‘‘(f) This section does not grant jurisdiction to the dis-
trict court after a transfer pursuant to an order under sec-
tion 1185 of title 11 of any proceeding related to a special 
trustee appointed, or to a bridge company formed, in con-
nection with a case under subchapter V of chapter 11 of 
title 11.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.—The 
table of sections for chapter 13 of title 28, United States 
Code, is amended by adding at the end the following: 
‘‘298. Judge for a case under subchapter V of chapter 11 of title 11.’’. 
Subtitle D—Ending Government 
Guarantees 
SEC. 241. REPEAL OF OBLIGATION GUARANTEE PROGRAM. 
(a) IN GENERAL.—The following sections of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
(12 U.S.C. 5301 et seq.) are repealed: 
(1) Section 1104. 
(2) Section 1105. 
(3) Section 1106. 
(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 1104, 1105, and 1106. 
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SEC. 242. REPEAL OF SYSTEMIC RISK DETERMINATION IN 
RESOLUTIONS. 
Section 13(c)(4)(G) of the Federal Deposit Insurance 
Act (12 U.S.C. 1823(c)(4)(G)) is hereby repealed. 
SEC. 243. RESTRICTIONS ON USE OF THE EXCHANGE STA-
BILIZATION FUND. 
(a) IN GENERAL.—Section 5302 of title 31, United 
States Code, is amended by adding at the end the following: 
‘‘(e) Amounts in the fund may not be used for the es-
tablishment of a guaranty program for any nongovern-
mental entity.’’. 
(b) CONFORMING AMENDMENT.—Section 131(b) of the 
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 
5236(b)) is amended by inserting ‘‘, or for the purposes of 
preventing the liquidation or insolvency of any entity’’ be-
fore the period. 
Subtitle E—Eliminating Financial 
Market Utility Designations 
SEC. 251. REPEAL OF TITLE VIII. 
(a) REPEAL.—Title VIII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 
5461 et seq.) is repealed, and provisions of law amended 
by such title are restored and revived as if such title had 
never been enacted. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Dodd-Frank Wall Street Reform and 
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Consumer Protection Act is amended by striking the items 
relating to title VIII. 
TITLE III—EMPOWERING AMERI-
CANS TO ACHIEVE FINANCIAL 
INDEPENDENCE 
Subtitle A—Separation of Powers 
and Liberty Enhancements 
SEC. 311. CONSUMER FINANCIAL OPPORTUNITY COMMIS-
SION. 
(a) MAKING THE BUREAU AN INDEPENDENT CON-
SUMER FINANCIAL OPPORTUNITY COMMISSION.—The Con-
sumer Financial Protection Act of 2010 (12 U.S.C. 5481 
et seq.) is amended— 
(1) in section 1011— 
(A) in the heading of such section, by strik-
ing ‘‘BUREAU
OF
CONSUMER
FINANCIAL 
PROTECTION’’ and inserting ‘‘CONSUMER FI-
NANCIAL OPPORTUNITY COMMISSION’’; 
(B) in subsection (a)— 
(i) in the heading of such subsection, 
by striking ‘‘BUREAU’’ and inserting ‘‘COM-
MISSION’’; 
(ii) by striking ‘‘in the Federal Reserve 
System,’’; 
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President, by and with the advice and consent of the 
Senate, from among individuals who— 
‘‘(A) are citizens of the United States; and 
‘‘(B) have strong competencies and experi-
ences related to consumer financial products and 
services. 
‘‘(2) STAGGERING.—The members of the Com-
mission shall serve staggered terms, which initially 
shall be established by the President for terms of 1, 2, 
3, 4, and 5 years, respectively. 
‘‘(3) TERMS.— 
‘‘(A) IN
GENERAL.—Each member of the 
Commission, including the Chair, shall serve for 
a term of 5 years. 
‘‘(B) REMOVAL.—The President may re-
move any member of the Commission for ineffi-
ciency, neglect of duty, or malfeasance in office. 
‘‘(C) VACANCIES.—Any member of the Com-
mission appointed to fill a vacancy occurring be-
fore the expiration of the term to which that 
member’s predecessor was appointed (including 
the Chair) shall be appointed only for the re-
mainder of the term. 
‘‘(D) CONTINUATION
OF
SERVICE.—Each 
member of the Commission may continue to 
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serve after the expiration of the term of office to 
which that member was appointed until a suc-
cessor has been appointed by the President and 
confirmed by the Senate, except that a member 
may not continue to serve more than 1 year after 
the date on which that member’s term would oth-
erwise expire. 
‘‘(E) OTHER EMPLOYMENT PROHIBITED.— 
No member of the Commission shall engage in 
any other business, vocation, or employment. 
‘‘(c) AFFILIATION.—Not more than 3 members of the 
Commission shall be members of any one political party. 
‘‘(d) CHAIR OF THE COMMISSION.— 
‘‘(1) APPOINTMENT.—The Chair of the Commis-
sion shall be appointed by the President from among 
the members of the Commission. 
‘‘(2) AUTHORITY.—The Chair shall be the prin-
cipal executive officer of the Commission, and shall 
exercise all of the executive and administrative func-
tions of the Commission, including with respect to— 
‘‘(A) the appointment and supervision of 
personnel employed under the Commission (other 
than personnel employed regularly and full time 
in the immediate offices of members of the Com-
mission other than the Chair); 
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‘‘(B) the distribution of business among per-
sonnel appointed and supervised by the Chair 
and among administrative units of the Commis-
sion; and 
‘‘(C) the use and expenditure of funds. 
‘‘(3) LIMITATION.—In carrying out any of the 
Chair’s functions under the provisions of this sub-
section the Chair shall be governed by general policies 
of the Commission and by such regulatory decisions, 
findings, and determinations as the Commission may 
by law be authorized to make. 
‘‘(4) REQUESTS OR ESTIMATES RELATED TO AP-
PROPRIATIONS.—Requests or estimates for regular, 
supplemental, or deficiency appropriations on behalf 
of the Commission may not be submitted by the Chair 
without the prior approval of the Commission. 
‘‘(e) NO IMPAIRMENT BY REASON OF VACANCIES.—No 
vacancy in the members of the Commission shall impair 
the right of the remaining members of the Commission to 
exercise all the powers of the Commission. Three members 
of the Commission shall constitute a quorum for the trans-
action of business, except that if there are only 3 members 
serving on the Commission because of vacancies in the Com-
mission, 2 members of the Commission shall constitute a 
quorum for the transaction of business. If there are only 
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2 members serving on the Commission because of vacancies 
in the Commission, 2 members shall constitute a quorum 
for the 6-month period beginning on the date of the vacancy 
which caused the number of Commission members to decline 
to 2. 
‘‘(f) SEAL.—The Commission shall have an official 
seal. 
‘‘(g) COMPENSATION.— 
‘‘(1) CHAIR.—The Chair shall receive compensa-
tion at the rate prescribed for level I of the Executive 
Schedule under section 5313 of title 5, United States 
Code. 
‘‘(2) OTHER MEMBERS OF THE COMMISSION.— 
The 4 other members of the Commission shall each re-
ceive compensation at the rate prescribed for level II 
of the Executive Schedule under section 5314 of title 
5, United States Code.’’; 
(2) in section 1012(c), by striking paragraphs 
(2), (3), (4), and (5); and 
(3) in section 1014(b), by striking ‘‘Not fewer 
than 6 members shall be appointed upon the rec-
ommendation of the regional Federal Reserve Bank 
Presidents, on a rotating basis.’’. 
(b) DEEMING OF NAME.—Any reference in a law, regu-
lation, document, paper, or other record of the United 
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States to the Bureau of Consumer Financial Protection 
shall be deemed a reference to the Consumer Financial Op-
portunity Commission. 
(c) CONFORMING AMENDMENTS.— 
(1) CONSUMER FINANCIAL PROTECTION ACT OF 
2010.— 
(A) REPLACEMENT OF REFERENCES TO DI-
RECTOR.— 
(i) IN GENERAL.—Except as provided 
under clause (ii) and subparagraph (B), the 
Consumer Financial Protection Act of 2010 
(12 U.S.C. 5481 et seq.) is amended— 
(I) by striking ‘‘Director of the 
Bureau’’ each place such term appears 
and inserting ‘‘Consumer Financial 
Opportunity Commission’’; 
(II) by striking ‘‘Director’’ each 
place such term appears and inserting 
‘‘Consumer 
Financial 
Opportunity 
Commission’’; and 
(III) in section 1002, by striking 
paragraph (10). 
(ii) EXCEPTIONS.—The amendments 
described under clause (i) shall not apply to 
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the following provisions of the Consumer Fi-
nancial Protection Act of 2010: 
(I) Paragraphs (5) and (6) of sec-
tion 1013(d). 
(II) The second instance of ‘‘Di-
rector’’ under section 1017(a)(1), as re-
designated by section 312. 
(III) Section 1043. 
(IV) Section 1061(b)(3). 
(V) Subsections (a)(1) and (b)(1) 
of section 1062. 
(VI) Section 1063(f). 
(VII) Subsection (a)(5)(A) and 
subparagraphs (E) and (G)(iii) of sub-
section (i)(2) of section 1064. 
(VIII) Section 1065(a). 
(B) EXCEPTIONS.—The Consumer Finan-
cial Protection Act of 2010 (12 U.S.C. 5481 et 
seq.) is amended— 
(i) in section 1013(c)(3)— 
(I) by striking ‘‘Assistant Director 
of the Bureau for’’ and inserting 
‘‘Head of the Office of’’; and 
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Street Reform and Consumer Protection Act (12 
U.S.C. 5301 et seq.) is amended— 
(A) in the item relating to section 1011 in 
table of contents in section 1(b) of such Act, by 
striking ‘‘Bureau of Consumer Financial Protec-
tion’’ and inserting ‘‘Consumer Financial Op-
portunity Commission’’; and 
(B) in section 1447, by striking ‘‘Director of 
the Bureau’’ each place such term appears and 
inserting ‘‘Consumer Financial Opportunity 
Commission’’. 
(3) EXPEDITED FUNDS AVAILABILITY ACT.—The 
Expedited Funds Availability Act (12 U.S.C. 4001 et 
seq.), as amended by section 1086 of the Consumer Fi-
nancial Protection Act of 2010, is amended by strik-
ing ‘‘Director of the Bureau’’ each place such term 
appears and inserting ‘‘Consumer Financial Oppor-
tunity Commission’’. 
(4) FEDERAL FINANCIAL INSTITUTIONS EXAMINA-
TION COUNCIL ACT OF 1978.—Section 1004(a)(4) of 
the Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3303(a)(4)), as 
amended by section 1091 of the Consumer Financial 
Protection Act of 2010, is amended by striking ‘‘Di-
rector of the Consumer Financial Protection Bureau’’ 
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and inserting ‘‘Chair of the Consumer Financial Op-
portunity Commission’’. 
(5) FINANCIAL
LITERACY
AND
EDUCATION
IM-
PROVEMENT ACT.—Section 513 of the Financial Lit-
eracy and Education Improvement Act (20 U.S.C. 
9702), as amended by section 1013(d)(5) of the Con-
sumer Financial Protection Act of 2010, is amended 
by striking ‘‘Director of the Bureau of Consumer Fi-
nancial Protection’’ each place such term appears and 
inserting ‘‘Chair of the Consumer Financial Oppor-
tunity Commission’’. 
(6) HOME
MORTGAGE
DISCLOSURE
ACT
OF 
1975.—Section 307 of the Home Mortgage Disclosure 
Act of 1975, as amended by section 1094(6) of the 
Consumer Financial Protection Act of 2010, is 
amended by striking ‘‘Director of the Bureau of Con-
sumer Financial Protection’’ each place such term ap-
pears and inserting ‘‘Consumer Financial Oppor-
tunity Commission’’. 
(7) INTERSTATE LAND SALES FULL DISCLOSURE 
ACT.—The Interstate Land Sales Full Disclosure Act, 
as amended by section 1098A of the Consumer Finan-
cial Protection Act of 2010, is amended— 
(A) by amending section 1402(1) to read as 
follows: 
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‘‘(1) ‘Chair’ means the Chair of the Consumer 
Financial Opportunity Commission;’’; and 
(B) in section 1416(a), by striking ‘‘Direc-
tor of the Bureau of Consumer Financial Protec-
tion’’ and inserting ‘‘Chair’’. 
(8) REAL
ESTATE
SETTLEMENT
PROCEDURES 
ACT OF 1974.—Section 5 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2604), as amended 
by section 1450 of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act, is amended— 
(A) by striking ‘‘The Director of the Bureau 
of Consumer Financial Protection (hereafter in 
this section referred to as the ‘Director’)’’ and in-
serting ‘‘The Consumer Financial Opportunity 
Commission’’; 
(B) by striking ‘‘Director’’ each place such 
term appears and inserting ‘‘Consumer Finan-
cial Opportunity Commission’’; and 
(C) by striking ‘‘Director’’ each place such 
term appears and inserting ‘‘Chair’’. 
(9) S.A.F.E. MORTGAGE
LICENSING
ACT
OF 
2008.—The S.A.F.E. Mortgage Licensing Act of 2008 
(12 U.S.C. 5101 et seq.), as amended by section 1100 
of the Consumer Financial Protection Act of 2010, is 
amended— 
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(A) by striking ‘‘Director’’ each place such 
term appears in headings and text and inserting 
‘‘Consumer Financial Opportunity Commis-
sion’’; and 
(B) in section 1503, by striking paragraph 
(10). 
(10) TITLE 44, UNITED STATES CODE.—Section 
3513(c) of title 44, United States Code, as amended 
by section 1100D(b) of the Consumer Financial Pro-
tection Act of 2010, is amended by striking ‘‘Director 
of the Bureau’’ and inserting ‘‘Consumer Financial 
Opportunity Commission’’. 
SEC. 312. BRINGING THE COMMISSION INTO THE REGULAR 
APPROPRIATIONS 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 
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(D) by striking subparagraphs (E) and (F) 
of paragraph (1), as so redesignated; 
(2) by striking subsections (b) and (c); 
(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 Com-
mission for fiscal year 2017 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. 313. CONSUMER FINANCIAL OPPORTUNITY COMMIS-
SION INSPECTOR 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’’; 
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(B) in subsection (c), by striking ‘‘For pur-
poses of implementing this section’’ and all that 
follows through the end of the subsection; and 
(C) in subsection (g)(3), by striking ‘‘and 
the Bureau of Consumer Financial Protection’’; 
and 
(2) in section 12— 
(A) in paragraph (1), by inserting ‘‘the 
Consumer Financial Opportunity Commission;’’ 
after ‘‘the President of the Export-Import 
Bank;’’; and 
(B) in paragraph (2), by inserting ‘‘the 
Consumer Financial Opportunity Commission,’’ 
after ‘‘the Export-Import Bank,’’. 
(b) REQUIREMENTS FOR THE INSPECTOR GENERAL 
FOR THE CONSUMER FINANCIAL OPPORTUNITY COMMIS-
SION.— 
(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 Commission.’’; and 
(2) HEARINGS.—Section 1016 of the Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5496) is 
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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 Commission 
shall appear, upon invitation, before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services and the Committee 
on Energy and Commerce of the House of Representatives 
at semi-annual hearings regarding the reports required 
under subsection (b) and the reports required under section 
5 of the Inspector General Act of 1978 (5 U.S.C. App.).’’. 
(3) PARTICIPATION IN THE COUNCIL OF 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 Financial Opportunity 
Commission.’’. 
(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 Financial Opportunity Commission 
in accordance with section 3 of the Inspector General 
Act of 1978 (5 U.S.C. App.). 
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(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 Financial Opportunity Commission. 
At that time, the Inspector General of the Board of Gov-
ernors of the Federal Reserve System and the Bureau of 
Consumer Financial Protection shall become the Inspector 
General of the Board of Governors of the Federal Reserve 
System. 
SEC. 314. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 
COMMISSION 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 
COMMISSION TO SEEK SANCTIONS BY FILING CIVIL AC-
TIONS.— 
‘‘(1) TERMINATION
OF
ADMINISTRATIVE
PRO-
CEEDING.—In the case of any person who is a party 
to a proceeding brought by the Commission under this 
section, to which chapter 5 of title 5, United States 
Code, applies, and against whom an order imposing 
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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 Commission to terminate the proceeding. 
‘‘(2) CIVIL ACTION AUTHORIZED.—If a person 
requires the Commission to terminate a proceeding 
pursuant to paragraph (1), the Commission 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. 315. 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 a Commission investigator within 30 calendar 
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days after receipt of the demand to discuss and at-
tempt to resolve all issues regarding compliance with 
the civil investigative demand, unless the Commission 
grants an extension requested by such recipient.’’; 
(2) in subsection (f)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Not later than 45 days after 
the service of any civil investigative demand upon 
any person under subsection (c), or at any time before 
the return date specified in the demand, whichever 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 Commission investigator named in the de-
mand, such person may file, in the district court of 
the United States for any judicial district in which 
such person resides, is found, or transacts business, a 
petition for an order modifying or setting aside the 
demand.’’; and 
(B) in paragraph (2), by striking ‘‘at the 
Bureau’’; and 
(3) in subsection (h)— 
(A) by striking ‘‘(1) IN GENERAL.—’’ ; and 
(B) by striking paragraph (2). 
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100 
SEC. 316. COMMISSION DUAL MANDATE AND ECONOMIC 
ANALYSIS. 
(a) PURPOSE.—Section 1021(a) of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5511(a)) is 
amended— 
(1) by striking ‘‘fair, transparent, and competi-
tive’’ and inserting: ‘‘fair and transparent’’; and 
(2) by adding at the end the following: ‘‘In addi-
tion, the Commission shall seek to implement and, 
where applicable, enforce Federal consumer financial 
law consistently for the purpose of strengthening par-
ticipation in markets by covered persons, without 
Government interference or subsidies, to increase com-
petition and enhance consumer choice.’’; and 
(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: 
‘‘(i) OFFICE OF ECONOMIC ANALYSIS.— 
‘‘(1) ESTABLISHMENT.—The Chair shall estab-
lish an Office of Economic Analysis. 
‘‘(2) REVIEW
AND
ASSESSMENT
OF
PROPOSED 
RULES AND REGULATIONS.—The Office of Economic 
Analysis shall— 
‘‘(A) review all proposed rules and regula-
tions of the Commission; 
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101 
‘‘(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. 
‘‘(3) 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, 5, and 10 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.’’. 
(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.— 
‘‘(A) IN GENERAL.—Before issuing any rule 
or regulation, the Chair shall consider the review 
and assessment of such rule or regulation carried 
out by the Office of Economic Analysis. 
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102 
‘‘(B) NOTICE
OF
DISAGREEMENT.—If a 
member of the Commission disagrees with any 
part of a review and assessment described under 
subparagraph (A) with respect to any rule or 
regulation, the member shall accompany any 
such rule or regulation with a statement explain-
ing why the member so disagrees. 
‘‘(6) 
IDENTIFICATION
OF
PROBLEMS
AND 
METRICS FOR JUDGING SUCCESS.— 
‘‘(A) IN
GENERAL.—The Chair shall, in 
each proposed rulemaking of the Commission— 
‘‘(i) identify the problem that the par-
ticular rule or regulations is seeking to 
solve; and 
‘‘(ii) specify the metrics by which the 
Commission 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.’’. 
(c) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY 
ANALYSES.—The Commission may perform any of the 
analyses required by this section in conjunction with, or 
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103 
as part of, any other agenda or analysis required by any 
other provision of law, if such other agenda or analysis sat-
isfies the provisions of this section. 
SEC. 317. NO DEFERENCE TO COMMISSION INTERPRETA-
TION. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(1) in section 1022(b)(4)— 
(A) by striking ‘‘(A) IN GENERAL.—’’; and 
(B) by striking subparagraph (B); and 
(2) in section 1061(b)(5)(E)— 
(A) by striking ‘‘affords to the—’’ and all 
that follows through ‘‘(i) Federal Trade 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. 321. COMMISSION ADVISORY BOARDS. 
(a) IN GENERAL.—The Consumer Financial Protec-
tion Act of 2010 is amended by inserting after section 1014 
(12 U.S.C. 5494) the following new section: 
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104 
‘‘SEC. 1014A. ADVISORY BOARDS. 
‘‘(a) SMALL BUSINESS ADVISORY BOARD.— 
‘‘(1) ESTABLISHMENT.—The Commission shall 
establish a Small Business Advisory Board— 
‘‘(A) to advise and consult with the Com-
mission in the exercise of the Commission’s func-
tions under the Federal consumer financial laws 
applicable to eligible financial products or serv-
ices; and 
‘‘(B) to provide information on emerging 
practices of small business concerns that provide 
eligible financial products or services, including 
regional trends, concerns, and other relevant in-
formation. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) NUMBER.—The Commission shall ap-
point no fewer than 15 and no more than 20 
members to the Small Business Advisory Board. 
‘‘(B) QUALIFICATION.—Members appointed 
pursuant to subparagraph (A) shall be represent-
atives of small business concerns that— 
‘‘(i) provide eligible financial products 
or services; 
‘‘(ii) are service providers to covered 
persons; and 
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‘‘(iii) use consumer financial products 
or services in financing the business activi-
ties of such concern. 
‘‘(3) MEETINGS.—The Small Business Advisory 
Board— 
‘‘(A) shall meet from time to time at the 
call of the Commission; and 
‘‘(B) shall meet at least twice each year. 
‘‘(b) CREDIT UNION ADVISORY COUNCIL.— 
‘‘(1) ESTABLISHMENT.—The Commission shall 
establish a Credit Union Advisory Council to advise 
and consult with the Commission on consumer finan-
cial products or services that impact credit unions. 
‘‘(2) MEMBERSHIP.—The Commission shall ap-
point no fewer than 15 and no more than 20 members 
to the Credit Union Advisory Council. 
‘‘(3) MEETINGS.—The Credit Union Advisory 
Council— 
‘‘(A) shall meet from time to time at the 
call of the Commission; and 
‘‘(B) shall meet at least twice each year. 
‘‘(c) COMMUNITY BANK ADVISORY COUNCIL.— 
‘‘(1) ESTABLISHMENT.—The Commission shall 
establish a Community Bank Advisory Council to ad-
vise and consult with the Commission on consumer fi-
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106 
nancial products or services that impact community 
banks. 
‘‘(2) MEMBERSHIP.—The Commission shall ap-
point no fewer than 15 and no more than 20 members 
to the Community Bank Advisory Council. 
‘‘(3) MEETINGS.—The Community Bank Advi-
sory Council— 
‘‘(A) shall meet from time to time at the 
call of the Commission; and 
‘‘(B) shall meet at least twice each year. 
‘‘(d) COMPENSATION AND TRAVEL EXPENSES.—Mem-
bers of the Small Business Advisory Board, the Credit 
Union Advisory Council, or the Community Bank Advisory 
Council who are not full-time employees of the United 
States shall— 
‘‘(1) be entitled to receive compensation at a rate 
fixed by the Commission while attending meetings of 
the Small Business Advisory Board, the Credit Union 
Advisory Council, or the Community Bank Advisory 
Council, including travel time; and 
‘‘(2) be allowed travel expenses, including trans-
portation and subsistence, while away from their 
homes or regular places of business. 
‘‘(e) DEFINITIONS.—In this section— 
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‘‘(1) the term ‘eligible financial product or serv-
ice’ means a financial product or service that is of-
fered or provided for use by consumers primarily for 
personal, family, or household purposes as described 
in clause (i), (iii), (v), (vi), or (ix) of section 
1002(15)(A); and 
‘‘(2) the term ‘small business concern’ has the 
meaning given such term in section 3 of the Small 
Business Act (15 U.S.C. 632).’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table of 
contents in section 1 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5301 et seq.) is 
amended by inserting after the item relating to section 1014 
the following new item: 
‘‘Sec. 1014A. Advisory Boards.’’. 
SEC. 322. ADVISORY OPINIONS. 
Section 1022(b) of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5512(b)), as amended by section 
316, is further amended by adding at the end the following: 
‘‘(7) ADVISORY OPINIONS.— 
‘‘(A) ESTABLISHING PROCEDURES.— 
‘‘(i) IN GENERAL.—The Chair shall es-
tablish a procedure and, as necessary, pro-
mulgate rules to provide written opinions 
in response to inquiries concerning the con-
formance of specific conduct with Federal 
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consumer financial law. In establishing the 
procedure the Chair shall consult with the 
prudential regulators and such other Fed-
eral departments and agencies as the Chair 
determines appropriate, and obtain the 
views of all interested persons through a 
public notice and comment period. 
‘‘(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 Chair 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 Chair 
issuing an opinion in response to such in-
quiry, and any opinion based on an in-
quiry that has been withdrawn shall have 
no force or effect. 
‘‘(B) ISSUANCE OF OPINIONS.— 
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‘‘(i) IN
GENERAL.—The Chair shall, 
within 90 days of receiving the request for 
an opinion under this paragraph, either— 
‘‘(I) issue an opinion stating 
whether the described conduct would 
violate Federal consumer financial 
law; 
‘‘(II) if permissible under clause 
(iii), deny the request; or 
‘‘(III) explain why it is not fea-
sible to issue an opinion. 
‘‘(ii) 
EXTENSION.—Notwithstanding 
clause (i), if the Chair determines that the 
Commission requires additional time to 
issue an opinion, the Chair may make a 
single extension of the deadline of 90 days 
or less. 
‘‘(iii) DENIAL
OF
REQUESTS.—The 
Chair 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; 
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‘‘(III) asks about the conduct of 
someone other than the covered person 
on whose behalf the request is made; 
‘‘(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 Commission within a reasonable 
time established by the Commission. 
‘‘(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 Commission’s public 
record 90 days after the requesting party 
has received the advice, subject to any limi-
tations on public disclosure arising from 
statutory restrictions, Commission regula-
tions, or the public interest. The Commis-
sion shall redact any personal, confidential, 
or identifying information about the covered 
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111 
person or any other persons mentioned in 
the advisory opinion, unless the covered per-
son consents to such disclosure. 
‘‘(vi) REPORT
TO
CONGRESS.—The 
Commission shall, concurrent with the semi- 
annual 
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 requests denied pursuant to 
clause (iii), and the time needed to respond 
to each request. 
‘‘(C) RELIANCE ON OPINION.—Any person 
may rely on an opinion issued by the Chair pur-
suant 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 Commis-
sion or any other Federal department or agency 
in connection with an inquiry under this para-
graph shall be exempt from disclosure under sec-
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112 
tion 552 of title 5, United States Code (com-
monly referred to as the ‘Freedom of Information 
Act’) and may not, except with the consent of the 
covered person making such inquiry, be made 
publicly available, regardless of whether the 
Chair responds to such inquiry or the covered 
person withdraws such inquiry before receiving 
an opinion. 
‘‘(E) 
ASSISTANCE
FOR
SMALL
BUSI-
NESSES.— 
‘‘(i) IN
GENERAL.—The Commission 
shall assist, to the maximum extent prac-
ticable, small businesses in preparing in-
quiries 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 Chair shall de-
velop a system to charge a fee for each in-
quiry made under this paragraph in an 
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113 
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 Chair shall 
publish a description of the fee system de-
scribed in clause (i) in the Federal Register 
and shall solicit comments from the public 
for a period of 60 days after publication. 
‘‘(iii) FINALIZATION.—The Chair shall 
publish a final description of the fee system 
and implement such fee system not later 
than 30 days after the end of the public 
comment period described in clause (ii).’’. 
SEC. 323. 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 312, 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 Commission shall 
establish and maintain a segregated account in 
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114 
the Civil Penalty Fund each time the Commis-
sion obtains a civil penalty against any person 
in any judicial or administrative action under 
Federal consumer financial laws. 
‘‘(B) 
DEPOSITS
IN
SEGREGATED
AC-
COUNTS.—The Commission shall deposit each 
civil penalty collected into the segregated account 
established 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 Commission shall 
identify the class of victims of the violation 
of Federal consumer financial laws for 
which such amounts were collected and de-
posited under paragraph (2). 
‘‘(ii) PAYMENTS.—The Commission, 
within 2 years after the date on which such 
class of victims is identified, shall locate 
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115 
and make payments from such amounts to 
each victim. 
‘‘(B) FUNDS DEPOSITED IN TREASURY.— 
‘‘(i) IN
GENERAL.—The Commission 
shall deposit into the general fund of the 
Treasury any amounts remaining in a seg-
regated 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 Commission determines 
before the end of the 2-year period for pay-
ments to victims under subparagraph (A) 
that such victims cannot be located or pay-
ments to such victims are otherwise not 
practicable, the Commission 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-
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spect to amounts in the Consumer Financial Civil 
Penalty Fund on the date of enactment of this Act 
that were not allocated for consumer education and 
financial literacy programs on or before September 
30, 2015, the Consumer Financial Opportunity Com-
mission shall separate such amounts into segregated 
accounts in accordance with, and for purposes of, sec-
tion 1017(d) of the Consumer Financial Protection 
Act of 2010, as amended by this section. The date of 
deposit of such amounts shall be deemed to be the date 
of enactment of this Act. 
SEC. 324. COMMISSION RESEARCH PAPER TRANSPARENCY. 
Section 1013 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5493), as amended by section 316, 
is further amended by adding at the end the following: 
‘‘(j) RESEARCH PAPER TRANSPARENCY.—Any time 
the Commission, either through the research unit established 
by the Chair under subsection (b)(1) or otherwise, issues 
a research paper that is available to the public, the Com-
mission shall accompany such paper with all studies, data, 
and other analyses on which the paper was based.’’. 
SEC. 325. COMMISSION 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: 
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‘‘(2) COMPENSATION.—The rates of basic pay for 
all employees of the Commission shall be set and ad-
justed by the Commission in accordance with the 
General Schedule 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 Financial Opportunity Commission following the 
90-day period beginning on the date of enactment of this 
Act. 
SEC. 326. SEPARATION OF MARKET MONITORING FUNC-
TIONS AND SUPERVISORY FUNCTIONS. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(1) in section 1022(c)— 
(A) in paragraph (1), by striking ‘‘In order 
to support its rulemaking and other functions, 
the’’ and inserting ‘‘The’’; and 
(B) in paragraph (4)— 
(i) in subparagraph (A), by inserting 
after ‘‘gather information’’ the following: 
‘‘on a sampling basis’’; 
(ii) in subparagraph (B)— 
(I) in clause (i), by striking ‘‘a 
variety of sources, including examina-
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118 
tion reports concerning covered persons 
or service providers’’; and 
(II) in clause (ii), by inserting 
after ‘‘require’’ the following: ‘‘, on a 
sampling basis,’’; and 
(iii) in subparagraph (C), by inserting 
before the period the following: ‘‘or for pur-
poses of assessing such covered persons’ or 
service providers’ compliance with the re-
quirements of Federal consumer financial 
law’’; 
(2) in section 1024(b)(1)— 
(A) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(B) in subparagraph (B), by striking ‘‘; 
and’’ and inserting a period; and 
(C) by striking subparagraph (C); 
(3) in section 1025(b)(1)— 
(A) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(B) in subparagraph (B), by striking ‘‘; 
and’’ and inserting a period; and 
(C) by striking subparagraph (C); and 
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131 
‘‘(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: 
‘‘(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 
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161 
(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 
(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).’’. 
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