CFPB–IG Reform Act of 2021
Bill: H.R.6038 | Sponsor: Rep. Luetkemeyer, Blaine (R-MO)
Policy area: Finance and Financial Sector

Summary:
Bureau of Consumer Financial Protection-Inspector General Reform Act of 2021 or the CFPB-IG Act of 2021
This bill establishes a separate Office of Inspector General for the Consumer Financial Protection Bureau (CFPB). Currently, such oversight of the CFPB is combined with the Office of Inspector General for the Board of Governors of the Federal Reserve System.

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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bureau of Consumer Financial 
Protection-Inspector General Reform Act of 2021'' or the ``CFPB-IG 
Reform Act of 2021''.

SEC. 2. APPOINTMENT OF INSPECTOR GENERAL.

    The Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in section 8G--
                    (A) in subsection (a)(2), by striking ``and the 
                Bureau of Consumer Financial Protection'';
                    (B) in subsection (c), by striking ``For purposes 
                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 Director 
                of the Bureau of Consumer Financial Protection;'' after 
                ``the President of the Export-Import Bank;''; and
                    (B) in paragraph (2), by inserting ``the Bureau of 
                Consumer Financial Protection,'' after ``the Export-
                Import Bank,''.

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

    (a) Establishment.--Section 1011 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5491) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by striking ``and 
                Deputy Director'' and inserting ``, Deputy Director, 
                and Inspector General''; and
                    (B) by inserting after paragraph (5) the following:
            ``(6) Inspector general.--There is established the position 
        of the Inspector General.''; and
            (2) in subsection (d), by striking ``or Deputy Director'' 
        each place it appears and inserting ``, Deputy Director, or 
        Inspector General''.
    (b) Hearings.--Section 1016 of such Act is amended by inserting 
after subsection (c) the following:
    ``(d) Additional Requirement for Inspector General.--On a separate 
occasion from that described in subsection (a), the Inspector General 
of the Bureau shall appear, upon invitation, before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services and the Committee on Energy and Commerce of the 
House of Representatives at semiannual hearings regarding the reports 
required under subsection (b) and the reports required under section 5 
of the Inspector General Act of 1978 (5 U.S.C. App.).''.
    (c) Funding for Office of Inspector General.--Section 1017(a)(2) of 
such Act is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) Funding for office of inspector general.--
                Each fiscal year, the Bureau shall dedicate 2 percent 
                of the funds transferred pursuant to paragraph (1) to 
                the Office of the Inspector General.''.
    (d) Participation in the Council of Inspectors General on Financial 
Oversight.--Section 989E(a)(1) of such Act is amended by adding at the 
end the following:
                    ``(J) The Bureau of Consumer Financial 
                Protection.''.
    (e) Deadline for Appointment.--Not later than 60 days after the 
date of the enactment of this Act, the President shall appoint an 
Inspector General for the Bureau of Consumer Financial Protection in 
accordance with section 3 of the Inspector General Act of 1978 (5 
U.S.C. App.).

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect 60 days after the 
date of the enactment of this Act.

SEC. 5. 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 General 
for the Bureau of Consumer Financial Protection. At that time, the 
Inspector General of the Board of Governors of the Federal Reserve 
System and the Bureau of Consumer Financial Protection shall become the 
Inspector General of the Board of Governors of the Federal Reserve 
System.
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