CFPB Stability Act of 2022
Bill: S.5280 | Sponsor: Sen. Toomey, Patrick (R-PA)
Policy area: Finance and Financial Sector

Summary:
CFPB Stability Act of 2022
This bill restructures the leadership and funding of the Consumer Financial Protection Bureau.
Specifically, the bill removes the bureau from the Federal Reserve System. Additionally, the bill eliminates the positions of director and deputy director and establishes a five-person panel appointed by the President and confirmed by the Senate, with not more than three members belonging to any one political party.
Under the bill, the inspector general of the bureau must be appointed by the President and confirmed by the Senate. Under current law, the inspector general of the Federal Reserve Board also serves as the inspector general of the bureau.
Further, the source of funding for the bureau is changed from Federal Reserve System transfers to annual appropriations. Under current law, the transfers from the Federal Reserve System permit the bureau to be funded outside of the annual appropriations process.

To amend the Consumer Financial Protection Act of 2010 to subject the 
 Bureau of Consumer Financial Protection to the regular appropriations 
                    process, 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 ``CFPB Stability Act of 2022''.

SEC. 2. MAKING THE BUREAU A COMMISSION.

    (a) In General.--The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended--
            (1) in section 1011--
                    (A) in subsection (a), by striking ``in the Federal 
                Reserve System,'';
                    (B) by striking subsections (b), (c), and (d);
                    (C) by redesignating subsection (e) as subsection 
                (j);
                    (D) in subsection (j), as so redesignated, by 
                striking ``, including in cities in which the Federal 
                reserve banks, or branches of such banks, are 
                located,''; and
                    (E) by inserting after subsection (a) the 
                following:
    ``(b) Authority To Prescribe Regulations.--The Bureau may prescribe 
such regulations and issue such orders in accordance with this title as 
the Bureau may determine to be necessary for carrying out this title 
and all other laws within the Bureau's jurisdiction and shall exercise 
any authorities granted under this title and all other laws within the 
Bureau's jurisdiction.
    ``(c) Composition of the Bureau.--
            ``(1) In general.--The Bureau shall be composed of 5 
        members who shall be appointed by the President, by and with 
        the advice and consent of the Senate.
            ``(2) Staggering.--The members of the Bureau 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 Bureau, 
                including the Chair, shall serve for a term of 5 years.
                    ``(B) Removal.--The President may remove any member 
                of the Bureau for inefficiency, neglect of duty, or 
                malfeasance in office.
                    ``(C) Vacancies.--Any member of the Bureau 
                appointed to fill a vacancy occurring before the 
                expiration of the term to which that member's 
                predecessor was appointed (including the Chair) shall 
                be appointed only for the remainder of the term.
                    ``(D) Continuation of service.--Each member of the 
                Bureau may continue to serve after the expiration of 
                the term of office to which that member was appointed 
                until a successor has been appointed by the President 
                and confirmed by the Senate, except that a member may 
                not continue to serve more than 1 year after the date 
                on which that member's term would otherwise expire.
                    ``(E) Other employment prohibited.--No member of 
                the Bureau shall engage in any other business, 
                vocation, or employment.
    ``(d) Affiliation.--Not more than 3 members of the Bureau shall be 
members of any one political party.
    ``(e) Chair of the Bureau.--
            ``(1) Initial chair.--The first member and Chair of the 
        Bureau shall be the individual serving as Chair of the Bureau 
        of Consumer Financial Protection on the day before the date of 
        the enactment of this subsection.
            ``(2) Subsequent chair.--Of the 5 members appointed in 
        accordance with subsection (c), the President shall appoint 1 
        member to serve as the subsequent Chair of the Bureau.
            ``(3) Authority.--The Chair shall be the principal 
        executive officer of the Bureau, and shall exercise all of the 
        executive and administrative functions of the Bureau, including 
        with respect to--
                    ``(A) the appointment and supervision of personnel 
                employed under the Bureau (other than personnel 
                employed regularly and full time in the immediate 
                offices of members of the Bureau other than the Chair);
                    ``(B) the distribution of business among personnel 
                appointed and supervised by the Chair and among 
                administrative units of the Bureau; and
                    ``(C) the use and expenditure of funds.
            ``(4) Limitation.--In carrying out any of the Chair's 
        functions under the provisions of this subsection the Chair 
        shall be governed by general policies of the Bureau and by such 
        regulatory decisions, findings, and determinations as the 
        Bureau may by law be authorized to make.
            ``(5) Requests or estimates related to appropriations.--
        Requests or estimates for regular, supplemental, or deficiency 
        appropriations on behalf of the Bureau may not be submitted by 
        the Chair without the prior approval of the Bureau.
            ``(6) Term.--The term of each Chair serving under this 
        subsection shall expire on the earlier of--
                    ``(A) the date that is 5 years after the date on 
                which the Chair began serving; and
                    ``(B) the date on which the individual who was 
                President while the Chair was serving leaves office.
    ``(f) Initial Quorum Established.--The first member and Chair of 
the Bureau described under subsection (e)(1) shall constitute a quorum 
for the transaction of business until the President has appointed all 5 
members of the Bureau in accordance with subsection (c). Following such 
appointment of 5 members, the quorum requirements of subsection (g) 
shall apply.
    ``(g) No Impairment by Reason of Vacancies.--No vacancy in the 
members of the Bureau after the establishment of an initial quorum 
under subsection (f) shall impair the right of the remaining members of 
the Bureau to exercise all the powers of the Bureau. Three members of 
the Bureau shall constitute a quorum for the transaction of business, 
except that if there are only 3 members serving on the Bureau because 
of vacancies in the Bureau, 2 members of the Bureau shall constitute a 
quorum for the transaction of business. If there are only 2 members 
serving on the Bureau because of vacancies in the Bureau, 2 members 
shall constitute a quorum for the 6-month period beginning on the date 
of the vacancy which caused the number of Bureau members to decline to 
2.
    ``(h) Seal.--The Bureau shall have an official seal.
    ``(i) Compensation.--
            ``(1) Chair.--The Chair shall receive compensation at the 
        rate prescribed for level I of the Executive Schedule under 
        section 5313 of title 5, United States Code.
            ``(2) Other members of the bureau.--The 4 other members of 
        the Bureau shall each receive 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);
            (3) in section 1013(a), by striking paragraph (2) and 
        inserting the following:
            ``(2) Compensation.--Notwithstanding any otherwise 
        applicable provision of title 5, United States Code, concerning 
        compensation, including the provisions of chapter 51 and 
        chapter 53, the rates of basic pay for all employees of the 
        Bureau may be set and adjusted by the Chair.''; and
            (4) in section 1014(b), by striking ``Not fewer than 6 
        members shall be appointed upon the recommendation of the 
        regional Federal Reserve Bank Presidents, on a rotating 
        basis.''.
    (b) Presidential Appointment of Inspector General of the Financial 
Product Safety Bureau.--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 the 
                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 Chair 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. SUBJECTING THE BUREAU OF CONSUMER FINANCIAL PROTECTION TO THE 
              REGULAR APPROPRIATIONS PROCESS.

    (a) In General.--Section 1017 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5497) is amended--
            (1) in subsection (a)--
                    (A) in the subsection heading, by striking 
                ``Transfer of Funds From Board Of Governors.--'' and 
                inserting ``Budget and Financial Management.--'';
                    (B) by striking paragraphs (1) through (3);
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (1) and (2), respectively; and
                    (D) in paragraph (1), as so redesignated--
                            (i) in the paragraph heading, by striking 
                        ``Budget and financial management.--'' and 
                        inserting ``In general.--'';
                            (ii) by striking subparagraph (E); and
                            (iii) by redesignating subparagraph (F) as 
                        subparagraph (E);
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) and (e) as subsections 
        (b) and (c), respectively;
            (4) in subsection (b), as so redesignated--
                    (A) in paragraph (2)--
                            (i) in the first sentence, by inserting 
                        ``direct'' before ``victims''; and
                            (ii) by striking the second sentence; and
                    (B) by adding at the end the following:
            ``(3) Treatment of excess amounts.--If, after the Bureau 
        obtains a civil penalty in a judicial or administrative action 
        under Federal consumer financial laws, deposits that civil 
        penalty into the Civil Penalty Fund under paragraph (1), and, 
        under paragraph (2), makes payments to all of the direct 
        victims of activities for which that civil penalty was imposed, 
        amounts remain in the Civil Penalty Fund with respect to that 
        civil penalty, the Bureau shall transfer those excess amounts 
        to the general fund of the Treasury.''; and
            (5) in subsection (c), as so redesignated--
                    (A) by striking paragraphs (1) through (3) and 
                inserting the following:
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated such funds as may be necessary to carry out 
        this title for fiscal year 2024.''; and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2023.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Consumer Financial Protection Act of 2010.--
            (1) In general.--Except as provided under paragraph (2), 
        the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 
        et seq.) is amended--
                    (A) by striking ``Director of the Bureau'' each 
                place the term appears, other than where the term is 
                used to refer to a Director other than the Director of 
                the Bureau of Consumer Financial Protection, and 
                inserting ``Chair of the Bureau'';
                    (B) by striking ``Director'' each place the term 
                appears and inserting ``Chair'', other than where the 
                term is used to refer to a Director other than the 
                Director of the Bureau of Consumer Financial 
                Protection; and
                    (C) in section 1002, by striking paragraph (10).
            (2) Exceptions.--The Consumer Financial Protection Act of 
        2010 (12 U.S.C. 5481 et seq.) is amended--
                    (A) in section 1013(c)(3)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``Assistant Director of the 
                        Bureau for'' and inserting ``Head of the Office 
                        of''; and
                            (ii) in subparagraph (B), by striking 
                        ``Assistant Director'' and inserting ``Head of 
                        the Office''; and
                    (B) in section 1013(g)(2)--
                            (i) by striking ``Assistant director'' and 
                        inserting ``Head of the office''; and
                            (ii) by striking ``an assistant director'' 
                        and inserting ``a Head of the Office of 
                        Financial Protection for Older Americans''.
    (b) Dodd-Frank Wall Street Reform and Consumer Protection Act.--The 
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 
5301 et seq.) is amended--
            (1) in section 111(b)(1)(D), by striking ``Director'' and 
        inserting ``Chair''; and
            (2) in section 1447, by striking ``Director'' each place 
        the term appears and inserting ``Chair''.
    (c) Electronic Fund Transfer Act.--Section 920(a)(4)(C) of the 
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(a)(4)(C)), as added by 
section 1075(a)(2) of the Consumer Financial Protection Act of 2010, is 
amended by striking ``Director of the Bureau of Consumer Financial 
Protection'' and inserting ``Chair of the Bureau of Consumer Financial 
Protection''.
    (d) Expedited Funds Availability Act.--The Expedited Funds 
Availability Act (12 U.S.C. 4001 et seq.) is amended by striking 
``Director of the Bureau'' each place the term appears and inserting 
``Chair of the Bureau''.
    (e) Federal Deposit Insurance Act.--Section 2 of the Federal 
Deposit Insurance Act (12 U.S.C. 1812) is amended by striking 
``Director of the Consumer Financial Protection Bureau'' each place the 
term appears and inserting ``Chair of the Consumer Financial Protection 
Bureau''.
    (f) Federal Financial Institutions Examination Council Act of 
1978.--Section 1004(a)(4) of the Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3303(a)(4)) is amended by 
striking ``Director of the Consumer Financial Protection Bureau'' and 
inserting ``Chair of the Consumer Financial Protection Bureau''.
    (g) Financial Literacy and Education Improvement Act.--Section 513 
of the Financial Literacy and Education Improvement Act (20 U.S.C. 
9702) is amended by striking ``Director'' each place the term appears 
and inserting ``Chair''.
    (h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home 
Mortgage Disclosure Act of 1975 (12 U.S.C. 2806) is amended by striking 
``Director of the Bureau of Consumer Financial Protection'' each place 
the term appears and inserting ``Chair of the Bureau of Consumer 
Financial Protection''.
    (i) Interstate Land Sales Full Disclosure Act.--The Interstate Land 
Sales Full Disclosure Act (15 U.S.C. 1701 et seq.) is amended--
            (1) in section 1402 (15 U.S.C. 1701), by striking paragraph 
        (1) and inserting the following:
            ``(1) `Chair' means the Chair of the Bureau of Consumer 
        Financial Protection;''; and
            (2) by striking ``Director'' each place the term appears 
        and inserting ``Chair''.
    (j) Real Estate Settlement Procedures Act of 1974.--Section 5 of 
the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604) is 
amended--
            (1) by striking ``The Director of the Bureau of Consumer 
        Financial Protection (hereafter in this section referred to as 
        the `Director')'' and inserting ``The Chair of the Bureau of 
        Consumer Financial Protection (hereafter in this section 
        referred to as the `Chair')''; and
            (2) by striking ``Director'' each place the term appears 
        and inserting ``Chair''.
    (k) S.A.F.E. Mortgage Licensing Act of 2008.--The S.A.F.E. Mortgage 
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) is amended--
            (1) by striking ``Director'' each place the term appears in 
        headings and text, other than where the term is used in the 
        context of the Director of the Office of Thrift Supervision, 
        and inserting ``Chair''; and
            (2) in section 1503 (12 U.S.C. 5102), by striking paragraph 
        (10) and inserting the following:
            ``(10) Chair.--The term `Chair' means the Director of the 
        Bureau of Consumer Financial Protection.''.
    (l) Title 44, United States Code.--Section 3513(c) of title 44, 
United States Code is amended by striking ``Director of the Bureau of 
Consumer Financial Protection'' and inserting ``Chair of the Bureau of 
Consumer Financial Protection''.
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