G:\P\15\CHOICE\CHOICE2017V2.XML [DISCUSSION DRAFT] 115TH CONGRESS 1ST SESSION H. R. ll To create hope and opportunity for investors, consumers, 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 Mr. HENSARLING introduced the following bill; which was referred to the Committee on lllllllllllllll A BILL To create hope and opportunity for investors, consumers, 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. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 2 1 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) SHORT TITLE.—This Act may be cited as the 3 ‘‘Financial CHOICE Act of 2017’’. 4 (b) TABLE OF CONTENTS.—The table of contents for 5 this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—ENDING ‘‘TOO BIG TO FAIL’’ AND BANK BAILOUTS Subtitle A—Repeal of the Orderly Liquidation Authority Sec. 111. Repeal of the orderly liquidation authority. Subtitle B—Financial Institution Bankruptcy Sec. 121. General provisions relating to covered financial corporations. Sec. 122. Liquidation, reorganization, or recapitalization of a covered financial corporation. Sec. 123. Amendments to title 28, United States Code. Subtitle C—Ending Government Guarantees Sec. 131. Repeal of obligation guarantee program. Sec. 132. Repeal of systemic risk determination in resolutions. Sec. 133. Restrictions on use of the Exchange Stabilization Fund. Subtitle D—Eliminating Financial Market Utility Designations Sec. 141. Repeal of title VIII. Subtitle E—Reform of the Financial Stability Act of 2010 Sec. 151. Repeal and modification of provisions of the Financial Stability Act of 2010. Sec. 152. Operational risk capital requirements for banking organizations. TITLE II—DEMANDING ACCOUNTABILITY FROM WALL STREET Subtitle A—SEC Penalties Modernization Sec. 211. Enhancement of civil penalties for securities laws violations. Sec. 212. Updated civil money penalties of Public Company Accounting Oversight Board. Sec. 213. Updated civil money penalty for controlling persons in connection with insider trading. Sec. 214. Update of certain other penalties. Sec. 215. Monetary sanctions to be used for the relief of victims. Sec. 216. GAO report on use of civil money penalty authority by Commission. Subtitle B—FIRREA Penalties Modernization G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 3 Sec. 221. Increase of civil and criminal penalties originally established in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. TITLE III—DEMANDING ACCOUNTABILITY FROM FINANCIAL REGULATORS AND DEVOLVING POWER AWAY FROM WASHINGTON Subtitle A—Cost-Benefit Analyses Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 311. 312. 313. 314. 315. 316. 317. 318. 319. 320. 321. Definitions. Required regulatory analysis. Rule of construction. Public availability of data and regulatory analysis. Five-year regulatory impact analysis. Retrospective review of existing rules. Judicial review. Chief Economists Council. Conforming amendments. Other regulatory entities. Avoidance of duplicative or unnecessary analyses. Subtitle B—Congressional Review of Federal Financial Agency Rulemaking Sec. Sec. Sec. Sec. Sec. Sec. Sec. 331. 332. 333. 334. 335. 336. 337. Congressional review. Congressional approval procedure for major rules. Congressional disapproval procedure for nonmajor rules. Definitions. Judicial review. Effective date of certain rules. Budgetary effects of rules subject to section 332 of the Financial CHOICE Act of 2017. Subtitle C—Judicial Review of Agency Actions Sec. 341. Scope of judicial review of agency actions. Subtitle D—Leadership of Financial Regulators Sec. 351. Federal Deposit Insurance Corporation. Sec. 352. Federal Housing Finance Agency. Subtitle E—Congressional Oversight of Appropriations Sec. 361. Bringing the Federal Deposit Insurance Corporation into the regular appropriations process. Sec. 362. Bringing the Federal Housing Finance Agency into the regular appropriations process. Sec. 363. Bringing the National Credit Union Administration into the regular appropriations process. Sec. 364. Bringing the Office of the Comptroller of the Currency into the regular appropriations process. Sec. 365. Bringing the non-monetary policy related functions of the Board of Governors of the Federal Reserve System into the regular appropriations process. Subtitle F—International Processes Sec. 371. Requirements for international processes. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 4 Subtitle G—Unfunded Mandates Reform Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 381. 382. 383. 384. 385. 386. 387. 388. Definitions. Statements to accompany significant regulatory actions. Small government agency plan. State, local, and tribal government and private sector input. Least burdensome option or explanation required. Assistance to the Office of Information and Regulatory Affairs. Office of Information and Regulatory Affairs responsibilities. Judicial review. Subtitle H—Enforcement Coordination Sec. 391. Policies to minimize duplication of enforcement efforts. Subtitle I—Penalties for Unauthorized Disclosures Sec. 392. Criminal penalty for unauthorized disclosures. Subtitle J—Stop Settlement Slush Funds Sec. 393. Limitation on donations made pursuant to settlement agreements to which certain departments or agencies are a party. TITLE IV—UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, INNOVATORS, AND JOB CREATORS BY FACILITATING CAPITAL FORMATION Subtitle A—Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Sec. 401. Registration exemption for merger and acquisition brokers. Sec. 402. Effective date. Subtitle B—Encouraging Employee Ownership Sec. 406. Increased threshold for disclosures relating to compensatory benefit plans. Subtitle C—Small Company Disclosure Simplification Sec. 411. Exemption from XBRL requirements for emerging growth companies and other smaller companies. Sec. 412. Analysis by the SEC. Sec. 413. Report to Congress. Sec. 414. Definitions. Subtitle D—Securities and Exchange Commission Overpayment Credit Sec. 416. Refunding or crediting overpayment of section 31 fees. Subtitle E—Fair Access to Investment Research Sec. 421. Safe harbor for investment fund research. Subtitle F—Accelerating Access to Capital Sec. 426. Expanded eligibility for use of Form S–3. Subtitle G—Enhancing the RAISE Act G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 5 Sec. 431. Certain accredited investor transactions. Subtitle H—Small Business Credit Availability Sec. 436. Business development company ownership of securities of investment advisers and certain financial companies. Sec. 437. Expanding access to capital for business development companies. Sec. 438. Parity for business development companies regarding offering and proxy rules. Subtitle I—Fostering Innovation Sec. 441. Temporary exemption for low-revenue issuers. Subtitle J—Small Business Capital Formation Enhancement Sec. 446. Annual review of government-business forum on capital formation. Subtitle K—Helping Angels Lead Our Startups Sec. 451. Definition of angel investor group. Sec. 452. Clarification of general solicitation. Subtitle L—Main Street Growth Sec. 456. Venture exchanges. Subtitle M—Micro Offering Safe Harbor Sec. 461. Exemptions for micro-offerings. Subtitle N—Private Placement Improvement Sec. 466. Revisions to SEC Regulation D. Subtitle O—Supporting America’s Innovators Sec. 471. Investor limitation for qualifying venture capital funds. Subtitle P—Fix Crowdfunding Sec. Sec. Sec. Sec. 476. 477. 478. 479. Crowdfunding exemption. Exclusion of crowdfunding investors from shareholder cap. Preemption of State law. Treatment of funding portals. Subtitle Q—Corporate Governance Reform and Transparency Sec. 481. Definitions. Sec. 482. Registration of proxy advisory firms. Sec. 483. Commission annual report. Subtitle R—Senior Safe Sec. 491. Immunity. Sec. 492. Training required. Sec. 493. Relationship to State law. Subtitle S—National Securities Exchange Regulatory Parity Sec. 496. Application of exemption. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00005 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 6 Subtitle T—Private Company Flexibility and Growth Sec. 497. Shareholder threshold for registration. Subtitle U—Small Company Capital Formation Enhancements Sec. 498. JOBS Act-related exemption. Subtitle V—Encouraging Public Offerings Sec. 499. Expanding testing the waters and confidential submissions. TITLE V—REGULATORY RELIEF FOR MAIN STREET AND COMMUNITY FINANCIAL INSTITUTIONS Subtitle A—Preserving Access to Manufactured Housing Sec. 501. Mortgage originator definition. Sec. 502. High-Cost mortgage definition. Subtitle B—Mortgage Choice Sec. 506. Definition of points and fees. Subtitle C—Financial Institution Customer Protection Sec. 511. Requirements for deposit account termination requests and orders. Sec. 512. Amendments to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Subtitle D—Portfolio Lending and Mortgage Access Sec. 516. Safe harbor for certain loans held on portfolio. Subtitle E—Application of the Expedited Funds Availability Act Sec. 521. Application of the Expedited Funds Availability Act. Subtitle F—Small Bank Holding Company Policy Statement Sec. 526. Changes required to small bank holding company policy statement on assessment of financial and managerial factors. Subtitle G—Community Institution Mortgage Relief Sec. 531. Community financial institution mortgage relief. Subtitle H—Financial Institutions Examination Fairness and Reform Sec. 536. Timeliness of examination reports. Subtitle I—National Credit Union Administration Budget Transparency Sec. 541. Budget transparency for the NCUA. Subtitle J—Taking Account of Institutions With Low Operation Risk Sec. 546. Regulations appropriate to business models. Subtitle K—Federal Savings Association Charter Flexibility G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00006 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 7 Sec. 551. Option for Federal savings associations to operate as a covered savings association. Subtitle L—SAFE Transitional Licensing Sec. 556. Eliminating barriers to jobs for loan originators. Subtitle M—Right to Lend Sec. 561. Small business loan data collection requirement. Subtitle N—Community Bank Reporting Relief Sec. 566. Short form call report. Subtitle O—Homeowner Information Privacy Protection Sec. 571. Study regarding privacy of information collected under the Home Mortgage Disclosure Act of 1975. Subtitle P—Home Mortgage Disclosure Adjustment Sec. 576. Depository institutions subject to maintenance of records and disclosure requirements. Subtitle Q—Protecting Consumers’ Access to Credit Sec. 581. Rate of interest after transfer of loan. Subtitle R—NCUA Overhead Transparency Sec. 586. Fund transparency. TITLE VI—REGULATORY RELIEF FOR STRONGLY CAPITALIZED, WELL MANAGED BANKING ORGANIZATIONS Sec. Sec. Sec. Sec. Sec. 601. 602. 603. 604. 605. Capital election. Regulatory relief. Contingent capital study. Study on altering the current prompt corrective action rules. Definitions. TITLE VII—EMPOWERING AMERICANS TO ACHIEVE FINANCIAL INDEPENDENCE Subtitle A—Separation of Powers and Liberty Enhancements Sec. Sec. Sec. Sec. Sec. 711. 712. 713. 714. 715. Consumer Law Enforcement Agency. Authority of the Office of Information and Regulatory Affairs. Bringing the Agency into the regular appropriations process. Consumer Law Enforcement Agency Inspector General Reform. Private parties authorized to compel the Agency to seek sanctions by filing civil actions; Adjudications deemed actions. Sec. 716. Civil investigative demands to be appealed to courts. Sec. 717. Agency dual mandate and economic analysis. Sec. 718. No deference to Agency interpretation. Subtitle B—Administrative Enhancements Sec. 721. Advisory opinions. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00007 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 8 Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 722. 723. 724. 725. 726. 727. 728. 729. Reform of Consumer Financial Civil Penalty Fund. Agency pay fairness. Elimination of market monitoring functions. Reforms to mandatory functional units. Repeal of mandatory advisory board. Elimination of supervision authority. Transfer of old OTS building from OCC to GSA. Limitation on Agency authority. Subtitle C—Policy Enhancements Sec. 731. Consumer right to financial privacy. Sec. 732. Repeal of Council authority to set aside Agency rules and requirement of safety and soundness considerations when issuing rules. Sec. 733. Removal of authority to regulate small-dollar credit. Sec. 734. Reforming indirect auto financing guidance. Sec. 735. Prohibition of Government price controls for payment card transactions. Sec. 736. Removal of Agency UDAAP authority. Sec. 737. Preservation of UDAP authority for Federal banking regulators. Sec. 738. Repeal of authority to restrict arbitration. TITLE VIII—CAPITAL MARKETS IMPROVEMENTS Subtitle A—SEC Reform, Restructuring, and Accountability Sec. Sec. Sec. Sec. Sec. Sec. Sec. 801. 802. 803. 804. 805. 806. 807. Sec. 808. Sec. Sec. Sec. Sec. 809. 810. 811. 812. Sec. 813. Sec. 814. Sec. Sec. Sec. Sec. Sec. Sec. 815. 816. 817. 818. 819. 820. Sec. 821. Sec. 822. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 Authorization of appropriations. Report on unobligated appropriations. SEC Reserve Fund abolished. Fees to offset appropriations. Commission relocation funding prohibition. Implementation of recommendations. Office of Credit Ratings to report to the Division of Trading and Markets. Office of Municipal Securities to report to the Division of Trading and Markets. Independence of Commission Ombudsman. Investor Advisory Committee improvements. Duties of Investor Advocate. Elimination of exemption of Small Business Capital Formation Advisory Committee from Federal Advisory Committee Act. Internal risk controls. Applicability of notice and comment requirements of the Administrative Procedure Act to guidance voted on by the Commission. Limitation on pilot programs. Procedure for obtaining certain intellectual property. Process for closing investigations. Enforcement Ombudsman. Adequate notice. Advisory committee on Commission’s enforcement policies and practices. Process to permit recipient of Wells notification to appear before Commission staff in-person. Publication of enforcement manual. (657255 10) PO 00000 Frm 00008 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 9 Sec. 823. Private parties authorized to compel the Securities and Exchange Commission to seek sanctions by filing civil actions. Sec. 824. Certain findings required to approve civil money penalties against issuers. Sec. 825. Repeal of authority of the Commission to prohibit persons from serving as officers or directors. Sec. 826. Subpoena duration and renewal. Sec. 827. Elimination of automatic disqualifications. Sec. 828. Denial of award to culpable whistleblowers. Sec. 829. Confidentiality of records obtained from foreign securities and law enforcement authorities. Sec. 830. Clarification of authority to impose sanctions on persons associated with a broker or dealer. Sec. 831. Complaint and burden of proof requirements for certain actions for breach of fiduciary duty. Sec. 832. Congressional access to information held by the Public Company Accounting Oversight Board. Sec. 833. Abolishing Investor Advisory Group. Sec. 834. Repeal of requirement for Public Company Accounting Oversight Board to use certain funds for merit scholarship program. Sec. 835. Reallocation of fines for violations of rules of municipal securities rulemaking board. Subtitle B—Eliminating Excessive Government Intrusion in the Capital Markets Sec. 841. Repeal of Department of Labor fiduciary rule and requirements prior to rulemaking relating to standards of conduct for brokers and dealers. Sec. 842. Exemption from risk retention requirements for nonresidential mortgage. Sec. 843. Frequency of shareholder approval of executive compensation. Sec. 844. Shareholder Proposals. Sec. 845. Prohibition on requiring a single ballot. Sec. 846. Requirement for municipal advisor for issuers of municipal securities. Sec. 847. Small issuer exemption from internal control evaluation. Sec. 848. Streamlining of applications for an exemption from the Investment Company Act of 1940. Sec. 849. Restriction on recovery of erroneously awarded compensation. Sec. 850. Exemptive authority for certain provisions relating to registration of nationally recognized statistical rating organizations. Sec. 851. Risk-based examinations of Nationally Recognized Statistical Rating Organizations. Sec. 852. Transparency of credit rating methodologies. Sec. 853. Repeal of certain attestation requirements relating to credit ratings. Sec. 854. Look-back review by NRSRO. Sec. 855. Approval of credit rating procedures and methodologies. Sec. 856. Exception for providing certain material information relating to a credit rating. Sec. 857. Repeals. Sec. 858. Exemption of and reporting by private equity fund advisers. Sec. 859. Records and reports of private funds. Sec. 860. Definition of accredited investor. Sec. 861. Repeal of certain provisions requiring a study and report to Congress. Sec. 862. Repeal. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00009 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 10 Subtitle C—Harmonization of Derivatives Rules Sec. 871. Commissions review and harmonization of rules relating to the regulation of over-the-counter swaps markets. Sec. 872. Treatment of transactions between affiliates. TITLE IX—REPEAL OF THE VOLCKER RULE AND OTHER PROVISIONS Sec. 901. Repeals. TITLE X—FED OVERSIGHT REFORM AND MODERNIZATION Sec. 1001. Requirements for policy rules of the Federal Open Market Committee. Sec. 1002. Federal Open Market Committee blackout period. Sec. 1003. Public transcripts of FOMC meetings. Sec. 1004. Membership of Federal Open Market Committee. Sec. 1005. Frequency of testimony of the Chairman of the Board of Governors of the Federal Reserve System to Congress. Sec. 1006. Vice Chairman for Supervision report requirement. Sec. 1007. Salaries, financial disclosures, and office staff of the Board of Governors of the Federal Reserve System. Sec. 1008. Amendments to powers of the Board of Governors of the Federal Reserve System. Sec. 1009. Interest rates on balances maintained at a Federal Reserve bank by depository institutions established by Federal Open Market Committee. Sec. 1010. Audit reform and transparency for the Board of Governors of the Federal Reserve System. Sec. 1011. Establishment of a Centennial Monetary Commission. TITLE XI—IMPROVING INSURANCE COORDINATION THROUGH AN INDEPENDENT ADVOCATE Sec. 1101. Repeal of the Federal Insurance Office; Creation of the Office of the Independent Insurance Advocate. Sec. 1102. Treatment of covered agreements. TITLE XII—TECHNICAL CORRECTIONS Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 1201. 1202. 1203. 1204. 1205. 1206. 1207. 1208. 1209. 1210. 1211. 1212. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 Table of contents; Definitional corrections. Antitrust savings clause corrections. Title I corrections. Title III corrections. Title IV correction. Title VI corrections. Title VII corrections. Title IX corrections. Title X corrections. Title XII correction. Title XIV correction. Technical corrections to other statutes. (657255 10) PO 00000 Frm 00010 Fmt 6652 Sfmt 6211 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 11 4 TITLE I—ENDING ‘‘TOO BIG TO FAIL’’ AND BANK BAILOUTS Subtitle A—Repeal of the Orderly Liquidation Authority 5 SEC. 111. REPEAL OF THE ORDERLY LIQUIDATION AU- 1 2 3 6 7 THORITY. (a) IN GENERAL.—Title II of the Dodd-Frank Wall 8 Street Reform and Consumer Protection Act is hereby re9 pealed and any Federal law amended by such title shall, 10 on and after the effective date of this Act, be effective 11 as if title II of the Dodd-Frank Wall Street Reform and 12 Consumer Protection Act had not been enacted. 13 (b) CONFORMING AMENDMENTS.— 14 (1) DODD-FRANK 15 CONSUMER 16 Wall Street Reform and Consumer Protection Act is 17 amended— 18 PROTECTION ACT.—The Dodd-Frank (A) in the table of contents for such Act, 19 by striking all items relating to title II; 20 (B) in section 165(d)— 21 (i) in paragraph (1), by striking ‘‘, the 22 Council, and the Corporation’’ and insert- 23 ing ‘‘and the Council’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 WALL STREET REFORM AND 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 12 1 (ii) in paragraph (2), by striking ‘‘, 2 the Council, and the Corporation’’ and in- 3 serting ‘‘and the Council’’; 4 (iii) in paragraph (3), by striking 5 ‘‘and the Corporation’’; 6 (iv) in paragraph (4)— 7 (I) by striking ‘‘and the Corpora- 8 tion jointly determine’’ and inserting 9 ‘‘determines’’; 10 (II) by striking ‘‘their’’ and in- 11 serting ‘‘its’’; 12 (III) in subparagraph (A), by 13 striking ‘‘and the Corporation’’; and 14 (IV) in subparagraph (B), by 15 striking ‘‘and the Corporation’’; 16 (v) in paragraph (5)— 17 (I) in subparagraph (A), by strik- 18 ing ‘‘and the Corporation may jointly’’ 19 and inserting ‘‘may’’; and 20 (II) in subparagraph (B)— 21 (aa) by striking ‘‘and the 22 Corporation’’ each place such 23 term appears; 24 (bb) by striking ‘‘may joint- 25 ly’’ and inserting ‘‘may’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 13 1 (cc) by striking ‘‘have joint- 2 ly’’ and inserting ‘‘has’’; 3 (vi) in paragraph (6), by striking ‘‘, a 4 receiver appointed under title II,’’; and 5 (vii) by amending paragraph (8) to 6 read as follows: 7 ‘‘(8) RULES.—Not later than 12 months after 8 enactment of this paragraph, the Board of Gov- 9 ernors shall issue final rules implementing this sec- 10 tion.’’; and 11 (C) in section 716(g), by striking ‘‘or a 12 covered financial company under title II’’. 13 (2) FEDERAL 14 tion 10(b)(3) of the Federal Deposit Insurance Act 15 (12 U.S.C. 1820(b)(3)) is amended by striking ‘‘, or 16 of such nonbank financial company supervised by 17 the Board of Governors or bank holding company 18 described in section 165(a) of the Financial Stability 19 Act of 2010, for the purpose of implementing its au- 20 thority to provide for orderly liquidation of any such 21 company under title II of that Act’’. 22 23 (3) FEDERAL 13(3) of (A) in subparagraph (B)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 RESERVE ACT.—Section the Federal Reserve Act is amended— 24 VerDate 0ct 09 2002 DEPOSIT INSURANCE ACT.—Sec- Jkt 000000 (657255 10) PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 14 1 (i) in clause (ii), by striking ‘‘, resolu- 2 tion under title II of the Dodd-Frank Wall 3 Street Reform and Consumer Protection 4 Act, or’’ and inserting ‘‘or is subject to 5 resolution under’’; and 6 (ii) in clause (iii), by striking ‘‘, reso- 7 lution under title II of the Dodd-Frank 8 Wall Street Reform and Consumer Protec- 9 tion Act, or’’ and inserting ‘‘or resolution 10 under’’; and 11 (B) by striking subparagraph (E). 13 Subtitle B—Financial Institution Bankruptcy 14 SEC. 121. GENERAL PROVISIONS RELATING TO COVERED 12 15 16 FINANCIAL CORPORATIONS. (a) DEFINITION.—Section 101 of title 11, United 17 States Code, is amended by inserting the following after 18 paragraph (9): 19 ‘‘(9A) The term ‘covered financial corporation’ 20 means any corporation incorporated or organized 21 under any Federal or State law, other than a stock- 22 broker, a commodity broker, or an entity of the kind 23 specified in paragraph (2) or (3) of section 109(b), 24 that is— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 15 1 ‘‘(A) a bank holding company, as defined 2 in section 2(a) of the Bank Holding Company 3 Act of 1956; or 4 ‘‘(B) a corporation that exists for the pri- 5 mary purpose of owning, controlling and financ- 6 ing its subsidiaries, that has total consolidated 7 assets of $50,000,000,000 or greater, and for 8 which, in its most recently completed fiscal 9 year— 10 ‘‘(i) annual gross revenues derived by 11 the corporation and all of its subsidiaries 12 from activities that are financial in nature 13 (as defined in section 4(k) of the Bank 14 Holding Company Act of 1956) and, if ap- 15 plicable, from the ownership or control of 16 one or more insured depository institu- 17 tions, represents 85 percent or more of the 18 consolidated annual gross revenues of the 19 corporation; or 20 ‘‘(ii) the consolidated assets of the 21 corporation and all of its subsidiaries re- 22 lated to activities that are financial in na- 23 ture (as defined in section 4(k) of the 24 Bank Holding Company Act of 1956) and, 25 if applicable, related to the ownership or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 16 1 control of one or more insured depository 2 institutions, represents 85 percent or more 3 of the consolidated assets of the corpora- 4 tion.’’. 5 (b) APPLICABILITY OF CHAPTERS.—Section 103 of 6 title 11, United States Code, is amended by adding at the 7 end the following: 8 ‘‘(l) Subchapter V of chapter 11 of this title applies 9 only in a case under chapter 11 concerning a covered fi10 nancial corporation.’’. 11 (c) WHO MAY BE A DEBTOR.—Section 109 of title 12 11, United States Code, is amended— 13 (1) in subsection (b)— 14 (A) in paragraph (2), by striking ‘‘or’’ at 15 the end; 16 (B) in paragraph (3)(B), by striking the 17 period at the end and inserting ‘‘; or’’; and 18 (C) by adding at the end the following: 19 ‘‘(4) a covered financial corporation.’’; and 20 (2) in subsection (d)— 21 (A) by striking ‘‘and’’ before ‘‘an unin- 22 sured State member bank’’; 23 (B) by striking ‘‘or’’ before ‘‘a corpora- 24 tion’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 17 1 (C) by inserting ‘‘, or a covered financial 2 corporation’’ after ‘‘Federal Deposit Insurance 3 Corporation Improvement Act of 1991’’. 4 (d) CONVERSION TO CHAPTER 7.—Section 1112 of 5 title 11, United States Code, is amended by adding at the 6 end the following: 7 ‘‘(g) Notwithstanding section 109(b), the court may 8 convert a case under subchapter V to a case under chapter 9 7 if— 10 11 ‘‘(1) a transfer approved under section 1185 has been consummated; 12 13 ‘‘(2) the court has ordered the appointment of a special trustee under section 1186; and 14 ‘‘(3) the court finds, after notice and a hearing, 15 that conversion is in the best interest of the credi- 16 tors and the estate.’’. 17 (e)(1) Section 726(a)(1) of title 11, United States 18 Code, is amended by inserting after ‘‘first,’’ the following: 19 ‘‘in payment of any unpaid fees, costs, and expenses of 20 a special trustee appointed under section 1186, and then’’. 21 (2) Section 1129(a) of title 11, United States Code, 22 is amended by inserting after paragraph (16) the fol23 lowing: 24 ‘‘(17) In a case under subchapter V, all payable 25 fees, costs, and expenses of the special trustee have G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 18 1 been paid or the plan provides for the payment of 2 all such fees, costs, and expenses on the effective 3 date of the plan. 4 ‘‘(18) In a case under subchapter V, confirma- 5 tion of the plan is not likely to cause serious adverse 6 effects on financial stability in the United States.’’. 7 (f) Section 322(b)(2) of title 11, United States Code, 8 is amended by striking ‘‘The’’ and inserting ‘‘In cases 9 under subchapter V, the United States trustee shall rec10 ommend to the court, and in all other cases, the’’. 11 SEC. 122. LIQUIDATION, REORGANIZATION, OR RECAPITAL- 12 IZATION OF A COVERED FINANCIAL COR- 13 PORATION. 14 Chapter 11 of title 11, United States Code, is amend- 15 ed by adding at the end the following (and conforming 16 the table of contents for such chapter accordingly): 17 ‘‘SUBCHAPTER V—LIQUIDATION, REORGANIZA18 TION, OR RECAPITALIZATION OF A COV- 19 ERED FINANCIAL CORPORATION 20 ‘‘§ 1181. Inapplicability of other sections 21 ‘‘Sections 303 and 321(c) do not apply in a case 22 under this subchapter concerning a covered financial cor23 poration. Section 365 does not apply to a transfer under 24 section 1185, 1187, or 1188. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 19 1 ‘‘§ 1182. Definitions for this subchapter 2 ‘‘In this subchapter, the following definitions shall 3 apply: 4 5 ‘‘(1) The term ‘Board’ means the Board of Governors of the Federal Reserve System. 6 ‘‘(2) The term ‘bridge company’ means a newly 7 formed corporation to which property of the estate 8 may be transferred under section 1185(a) and the 9 equity securities of which may be transferred to a 10 special trustee under section 1186(a). 11 ‘‘(3) The term ‘capital structure debt’ means all 12 unsecured debt of the debtor for borrowed money for 13 which the debtor is the primary obligor, other than 14 a qualified financial contract and other than debt se- 15 cured by a lien on property of the estate that is to 16 be transferred to a bridge company pursuant to an 17 order of the court under section 1185(a). 18 ‘‘(4) The term ‘contractual right’ means a con- 19 tractual right of a kind defined in section 555, 556, 20 559, 560, or 561. 21 ‘‘(5) The term ‘qualified financial contract’ 22 means any contract of a kind defined in paragraph 23 (25), (38A), (47), or (53B) of section 101, section 24 741(7), or paragraph (4), (5), (11), or (13) of sec- 25 tion 761. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 20 1 2 ‘‘(6) The term ‘special trustee’ means the trustee of a trust formed under section 1186(a)(1). 3 ‘‘§ 1183. Commencement of a case concerning a cov4 5 ered financial corporation ‘‘(a) A case under this subchapter concerning a cov- 6 ered financial corporation may be commenced by the filing 7 of a petition with the court by the debtor under section 8 301 only if the debtor states to the best of its knowledge 9 under penalty of perjury in the petition that it is a covered 10 financial corporation. 11 ‘‘(b) The commencement of a case under subsection 12 (a) constitutes an order for relief under this subchapter. 13 ‘‘(c) The members of the board of directors (or body 14 performing similar functions) of a covered financial com15 pany shall have no liability to shareholders, creditors, or 16 other parties in interest for a good faith filing of a petition 17 to commence a case under this subchapter, or for any rea18 sonable action taken in good faith in contemplation of or 19 in connection with such a petition or a transfer under sec20 tion 1185 or section 1186, whether prior to or after com21 mencement of the case. 22 ‘‘(d) Counsel to the debtor shall provide, to the great- 23 est extent practicable without disclosing the identity of the 24 potential debtor, sufficient confidential notice to the chief 25 judge of the court of appeals for the circuit embracing the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 21 1 district in which such counsel intends to file a petition to 2 commence a case under this subchapter regarding the po3 tential commencement of such case. The chief judge of 4 such court shall randomly assign to preside over such case 5 a bankruptcy judge selected from among the bankruptcy 6 judges designated by the Chief Justice of the United 7 States under section 298 of title 28. 8 ‘‘§ 1184. Regulators 9 ‘‘The Board, the Securities Exchange Commission, 10 the Office of the Comptroller of the Currency of the De11 partment of the Treasury, the Commodity Futures Trad12 ing Commission, and the Federal Deposit Insurance Cor13 poration may raise and may appear and be heard on any 14 issue in any case or proceeding under this subchapter. 15 ‘‘§ 1185. Special transfer of property of the estate 16 ‘‘(a) On request of the trustee, and after notice and 17 a hearing that shall occur not less than 24 hours after 18 the order for relief, the court may order a transfer under 19 this section of property of the estate, and the assignment 20 of executory contracts, unexpired leases, and qualified fi21 nancial contracts of the debtor, to a bridge company. 22 Upon the entry of an order approving such transfer, any 23 property transferred, and any executory contracts, unex24 pired leases, and qualified financial contracts assigned 25 under such order shall no longer be property of the estate. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 22 1 Except as provided under this section, the provisions of 2 section 363 shall apply to a transfer and assignment under 3 this section. 4 ‘‘(b) Unless the court orders otherwise, notice of a 5 request for an order under subsection (a) shall consist of 6 electronic or telephonic notice of not less than 24 hours 7 to— 8 ‘‘(1) the debtor; 9 ‘‘(2) the holders of the 20 largest secured 10 claims against the debtor; 11 12 ‘‘(3) the holders of the 20 largest unsecured claims against the debtor; 13 ‘‘(4) counterparties to any debt, executory con- 14 tract, unexpired lease, and qualified financial con- 15 tract requested to be transferred under this section; 16 ‘‘(5) the Board; 17 ‘‘(6) the Federal Deposit Insurance Corpora- 18 tion; 19 ‘‘(7) the Secretary of the Treasury and the Of- 20 fice of the Comptroller of the Currency of the Treas- 21 ury; 22 23 ‘‘(8) the Commodity Futures Trading Commission; 24 ‘‘(9) the Securities and Exchange Commission; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 23 1 2 ‘‘(10) the United States trustee or bankruptcy administrator; and 3 ‘‘(11) each primary financial regulatory agency, 4 as defined in section 2(12) of the Dodd-Frank Wall 5 Street Reform and Consumer Protection Act, with 6 respect to any affiliate the equity securities of which 7 are proposed to be transferred under this section. 8 ‘‘(c) The court may not order a transfer under this 9 section unless the court determines, based upon a prepon10 derance of the evidence, that— 11 ‘‘(1) the transfer under this section is necessary 12 to prevent serious adverse effects on financial sta- 13 bility in the United States; 14 ‘‘(2) the transfer does not provide for the as- 15 sumption of any capital structure debt by the bridge 16 company; 17 ‘‘(3) the transfer does not provide for the trans- 18 fer to the bridge company of any property of the es- 19 tate that is subject to a lien securing a debt, execu- 20 tory contract, unexpired lease or agreement (includ- 21 ing a qualified financial contract) of the debtor un- 22 less— 23 ‘‘(A)(i) the bridge company assumes such 24 debt, executory contract, unexpired lease or 25 agreement (including a qualified financial con- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 24 1 tract), including any claims arising in respect 2 thereof that would not be allowed secured 3 claims under section 506(a)(1) and after giving 4 effect to such transfer, such property remains 5 subject to the lien securing such debt, executory 6 contract, unexpired lease or agreement (includ- 7 ing a qualified financial contract); and 8 ‘‘(ii) the court has determined that as- 9 sumption of such debt, executory contract, un- 10 expired lease or agreement (including a quali- 11 fied financial contract) by the bridge company 12 is in the best interests of the estate; or 13 ‘‘(B) such property is being transferred to 14 the bridge company in accordance with the pro- 15 visions of section 363; 16 ‘‘(4) the transfer does not provide for the as- 17 sumption by the bridge company of any debt, execu- 18 tory contract, unexpired lease or agreement (includ- 19 ing a qualified financial contract) of the debtor se- 20 cured by a lien on property of the estate unless the 21 transfer provides for such property to be transferred 22 to the bridge company in accordance with paragraph 23 (3)(A) of this subsection; 24 25 ‘‘(5) the transfer does not provide for the transfer of the equity of the debtor; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 25 1 ‘‘(6) the trustee has demonstrated that the 2 bridge company is not likely to fail to meet the obli- 3 gations of any debt, executory contract, qualified fi- 4 nancial contract, or unexpired lease assumed and as- 5 signed to the bridge company; 6 ‘‘(7) the transfer provides for the transfer to a 7 special trustee all of the equity securities in the 8 bridge company and appointment of a special trustee 9 in accordance with section 1186; 10 ‘‘(8) after giving effect to the transfer, ade- 11 quate provision has been made for the fees, costs, 12 and expenses of the estate and special trustee; and 13 ‘‘(9) the bridge company will have governing 14 documents, and initial directors and senior officers, 15 that are in the best interest of creditors and the es- 16 tate. 17 ‘‘(d) Immediately before a transfer under this section, 18 the bridge company that is the recipient of the transfer 19 shall— 20 ‘‘(1) not have any property, executory con- 21 tracts, unexpired leases, qualified financial contracts, 22 or debts, other than any property acquired or execu- 23 tory contracts, unexpired leases, or debts assumed 24 when acting as a transferee of a transfer under this 25 section; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 26 1 ‘‘(2) have equity securities that are property of 2 the estate, which may be sold or distributed in ac- 3 cordance with this title. 4 ‘‘§ 1186. Special trustee 5 ‘‘(a)(1) An order approving a transfer under section 6 1185 shall require the trustee to transfer to a qualified 7 and independent special trustee, who is appointed by the 8 court, all of the equity securities in the bridge company 9 that is the recipient of a transfer under section 1185 to 10 hold in trust for the sole benefit of the estate, subject to 11 satisfaction of the special trustee’s fees, costs, and ex12 penses. The trust of which the special trustee is the trust13 ee shall be a newly formed trust governed by a trust agree14 ment approved by the court as in the best interests of the 15 estate, and shall exist for the sole purpose of holding and 16 administering, and shall be permitted to dispose of, the 17 equity securities of the bridge company in accordance with 18 the trust agreement. 19 ‘‘(2) In connection with the hearing to approve a 20 transfer under section 1185, the trustee shall confirm to 21 the court that the Board has been consulted regarding the 22 identity of the proposed special trustee and advise the 23 court of the results of such consultation. 24 ‘‘(b) The trust agreement governing the trust shall 25 provide— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 27 1 ‘‘(1) for the payment of the fees, costs, ex- 2 penses, and indemnities of the special trustee from 3 the assets of the debtor’s estate; 4 ‘‘(2) that the special trustee provide— 5 ‘‘(A) quarterly reporting to the estate, 6 which shall be filed with the court; and 7 ‘‘(B) information about the bridge com- 8 pany reasonably requested by a party in inter- 9 est to prepare a disclosure statement for a plan 10 providing for distribution of any securities of 11 the bridge company if such information is nec- 12 essary to prepare such disclosure statement; 13 ‘‘(3) that for as long as the equity securities of 14 the bridge company are held by the trust, the special 15 trustee shall file a notice with the court in connec- 16 tion with— 17 ‘‘(A) any change in a director or senior of- 18 ficer of the bridge company; 19 ‘‘(B) any modification to the governing 20 documents of the bridge company; and 21 ‘‘(C) any material corporate action of the 22 bridge company, including— 23 ‘‘(i) recapitalization; 24 ‘‘(ii) a material borrowing; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 28 1 ‘‘(iii) termination of an intercompany 2 debt or guarantee; 3 ‘‘(iv) a transfer of a substantial por- 4 tion of the assets of the bridge company; 5 or 6 ‘‘(v) the issuance or sale of any secu- 7 rities of the bridge company; 8 ‘‘(4) that any sale of any equity securities of 9 the bridge company shall not be consummated until 10 the special trustee consults with the Federal Deposit 11 Insurance Corporation and the Board regarding 12 such sale and discloses the results of such consulta- 13 tion with the court; 14 ‘‘(5) that, subject to reserves for payments per- 15 mitted under paragraph (1) provided for in the trust 16 agreement, the proceeds of the sale of any equity se- 17 curities of the bridge company by the special trustee 18 be held in trust for the benefit of or transferred to 19 the estate; 20 21 ‘‘(6) the process and guidelines for the replacement of the special trustee; and 22 ‘‘(7) that the property held in trust by the spe- 23 cial trustee is subject to distribution in accordance 24 with subsection (c). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 29 1 ‘‘(c)(1) The special trustee shall distribute the assets 2 held in trust— 3 ‘‘(A) if the court confirms a plan in the case, 4 in accordance with the plan on the effective date of 5 the plan; or 6 ‘‘(B) if the case is converted to a case under 7 chapter 7, as ordered by the court. 8 ‘‘(2) As soon as practicable after a final distribution 9 under paragraph (1), the office of the special trustee shall 10 terminate, except as may be necessary to wind up and con11 clude the business and financial affairs of the trust. 12 ‘‘(d) After a transfer to the special trustee under this 13 section, the special trustee shall be subject only to applica14 ble nonbankruptcy law, and the actions and conduct of 15 the special trustee shall no longer be subject to approval 16 by the court in the case under this subchapter. 17 ‘‘§ 1187. Temporary and supplemental automatic stay; 18 19 assumed debt ‘‘(a)(1) A petition filed under section 1183 operates 20 as a stay, applicable to all entities, of the termination, ac21 celeration, or modification of any debt, contract, lease, or 22 agreement of the kind described in paragraph (2), or of 23 any right or obligation under any such debt, contract, 24 lease, or agreement, solely because of— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 30 1 2 ‘‘(A) a default by the debtor under any such debt, contract, lease, or agreement; or 3 ‘‘(B) a provision in such debt, contract, lease, 4 or agreement, or in applicable nonbankruptcy law, 5 that is conditioned on— 6 ‘‘(i) the insolvency or financial condition of 7 the debtor at any time before the closing of the 8 case; 9 ‘‘(ii) the commencement of a case under 10 this title concerning the debtor; 11 ‘‘(iii) the appointment of or taking posses- 12 sion by a trustee in a case under this title con- 13 cerning the debtor or by a custodian before the 14 commencement of the case; or 15 ‘‘(iv) a credit rating agency rating, or ab- 16 sence or withdrawal of a credit rating agency 17 rating— 18 ‘‘(I) of the debtor at any time after 19 the commencement of the case; 20 ‘‘(II) of an affiliate during the period 21 from the commencement of the case until 22 48 hours after such order is entered; 23 ‘‘(III) of the bridge company while the 24 trustee or the special trustee is a direct or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 31 1 indirect beneficial holder of more than 50 2 percent of the equity securities of— 3 ‘‘(aa) the bridge company; or 4 ‘‘(bb) the affiliate, if all of the di- 5 rect or indirect interests in the affil- 6 iate that are property of the estate 7 are transferred under section 1185; or 8 ‘‘(IV) of an affiliate while the trustee 9 or the special trustee is a direct or indirect 10 beneficial holder of more than 50 percent 11 of the equity securities of— 12 ‘‘(aa) the bridge company; or 13 ‘‘(bb) the affiliate, if all of the di- 14 rect or indirect interests in the affil- 15 iate that are property of the estate 16 are transferred under section 1185. 17 ‘‘(2) A debt, contract, lease, or agreement described 18 in this paragraph is— 19 ‘‘(A) any debt (other than capital structure 20 debt), executory contract, or unexpired lease of the 21 debtor (other than a qualified financial contract); 22 ‘‘(B) any agreement under which the debtor 23 issued or is obligated for debt (other than capital 24 structure debt); G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 32 1 ‘‘(C) any debt, executory contract, or unexpired 2 lease of an affiliate (other than a qualified financial 3 contract); or 4 ‘‘(D) any agreement under which an affiliate 5 issued or is obligated for debt. 6 ‘‘(3) The stay under this subsection terminates— 7 8 ‘‘(A) for the benefit of the debtor, upon the earliest of— 9 ‘‘(i) 48 hours after the commencement of 10 the case; 11 ‘‘(ii) assumption of the debt, contract, 12 lease, or agreement by the bridge company 13 under an order authorizing a transfer under 14 section 1185; 15 ‘‘(iii) a final order of the court denying the 16 request for a transfer under section 1185; or 17 ‘‘(iv) the time the case is dismissed; and 18 19 ‘‘(B) for the benefit of an affiliate, upon the earliest of— 20 ‘‘(i) the entry of an order authorizing a 21 transfer under section 1185 in which the direct 22 or indirect interests in the affiliate that are 23 property of the estate are not transferred under 24 section 1185; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 33 1 ‘‘(ii) a final order by the court denying the 2 request for a transfer under section 1185; 3 ‘‘(iii) 48 hours after the commencement of 4 the case if the court has not ordered a transfer 5 under section 1185; or 6 7 ‘‘(iv) the time the case is dismissed. ‘‘(4) Subsections (d), (e), (f), and (g) of section 362 8 apply to a stay under this subsection. 9 ‘‘(b) A debt, executory contract (other than a quali- 10 fied financial contract), or unexpired lease of the debtor, 11 or an agreement under which the debtor has issued or is 12 obligated for any debt, may be assumed by a bridge com13 pany in a transfer under section 1185 notwithstanding 14 any provision in an agreement or in applicable nonbank15 ruptcy law that— 16 ‘‘(1) prohibits, restricts, or conditions the as- 17 signment of the debt, contract, lease, or agreement; 18 or 19 ‘‘(2) accelerates, terminates, or modifies, or 20 permits a party other than the debtor to terminate 21 or modify, the debt, contract, lease, or agreement on 22 account of— 23 ‘‘(A) the assignment of the debt, contract, 24 lease, or agreement; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 34 1 ‘‘(B) a change in control of any party to 2 3 the debt, contract, lease, or agreement. ‘‘(c)(1) A debt, contract, lease, or agreement of the 4 kind described in subparagraph (A) or (B) of subsection 5 (a)(2) may not be accelerated, terminated, or modified, 6 and any right or obligation under such debt, contract, 7 lease, or agreement may not be accelerated, terminated, 8 or modified, as to the bridge company solely because of 9 a provision in the debt, contract, lease, or agreement or 10 in applicable nonbankruptcy law— 11 12 ‘‘(A) of the kind described in subsection (a)(1)(B) as applied to the debtor; 13 ‘‘(B) that prohibits, restricts, or conditions the 14 assignment of the debt, contract, lease, or agree- 15 ment; or 16 ‘‘(C) that accelerates, terminates, or modifies, 17 or permits a party other than the debtor to termi- 18 nate or modify, the debt, contract, lease or agree- 19 ment on account of— 20 ‘‘(i) the assignment of the debt, contract, 21 lease, or agreement; or 22 ‘‘(ii) a change in control of any party to 23 24 the debt, contract, lease, or agreement. ‘‘(2) If there is a default by the debtor under a provi- 25 sion other than the kind described in paragraph (1) in G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 35 1 a debt, contract, lease or agreement of the kind described 2 in subparagraph (A) or (B) of subsection (a)(2), the 3 bridge company may assume such debt, contract, lease, 4 or agreement only if the bridge company— 5 ‘‘(A) shall cure the default; 6 ‘‘(B) compensates, or provides adequate assur- 7 ance in connection with a transfer under section 8 1185 that the bridge company will promptly com- 9 pensate, a party other than the debtor to the debt, 10 contract, lease, or agreement, for any actual pecu- 11 niary loss to the party resulting from the default; 12 and 13 ‘‘(C) provides adequate assurance in connection 14 with a transfer under section 1185 of future per- 15 formance under the debt, contract, lease, or agree- 16 ment, as determined by the court under section 17 1185(c)(4). 18 ‘‘§ 1188. Treatment of qualified financial contracts 19 20 and affiliate contracts ‘‘(a) Notwithstanding sections 362(b)(6), 362(b)(7), 21 362(b)(17), 362(b)(27), 362(o), 555, 556, 559, 560, and 22 561, a petition filed under section 1183 operates as a stay, 23 during the period specified in section 1187(a)(3)(A), ap24 plicable to all entities, of the exercise of a contractual 25 right— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 36 1 ‘‘(1) to cause the modification, liquidation, ter- 2 mination, or acceleration of a qualified financial con- 3 tract of the debtor or an affiliate; 4 ‘‘(2) to offset or net out any termination value, 5 payment amount, or other transfer obligation arising 6 under or in connection with a qualified financial con- 7 tract of the debtor or an affiliate; or 8 ‘‘(3) under any security agreement or arrange- 9 ment or other credit enhancement forming a part of 10 or related to a qualified financial contract of the 11 debtor or an affiliate. 12 ‘‘(b)(1) During the period specified in section 13 1187(a)(3)(A), the trustee or the affiliate shall perform 14 all payment and delivery obligations under such qualified 15 financial contract of the debtor or the affiliate, as the case 16 may be, that become due after the commencement of the 17 case. The stay provided under subsection (a) terminates 18 as to a qualified financial contract of the debtor or an 19 affiliate immediately upon the failure of the trustee or the 20 affiliate, as the case may be, to perform any such obliga21 tion during such period. 22 ‘‘(2) Any failure by a counterparty to any qualified 23 financial contract of the debtor or any affiliate to perform 24 any payment or delivery obligation under such qualified 25 financial contract, including during the pendency of the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 37 1 stay provided under subsection (a), shall constitute a 2 breach of such qualified financial contract by the 3 counterparty. 4 ‘‘(c) Subject to the court’s approval, a qualified finan- 5 cial contract between an entity and the debtor may be as6 signed to or assumed by the bridge company in a transfer 7 under, and in accordance with, section 1185 if and only 8 if— 9 ‘‘(1) all qualified financial contracts between 10 the entity and the debtor are assigned to and as- 11 sumed by the bridge company in the transfer under 12 section 1185; 13 ‘‘(2) all claims of the entity against the debtor 14 in respect of any qualified financial contract between 15 the entity and the debtor (other than any claim that, 16 under the terms of the qualified financial contract, 17 is subordinated to the claims of general unsecured 18 creditors) are assigned to and assumed by the bridge 19 company; 20 ‘‘(3) all claims of the debtor against the entity 21 under any qualified financial contract between the 22 entity and the debtor are assigned to and assumed 23 by the bridge company; and 24 ‘‘(4) all property securing or any other credit 25 enhancement furnished by the debtor for any quali- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 38 1 fied financial contract described in paragraph (1) or 2 any claim described in paragraph (2) or (3) under 3 any qualified financial contract between the entity 4 and the debtor is assigned to and assumed by the 5 bridge company. 6 ‘‘(d) Notwithstanding any provision of a qualified fi- 7 nancial contract or of applicable nonbankruptcy law, a 8 qualified financial contract of the debtor that is assumed 9 or assigned in a transfer under section 1185 may not be 10 accelerated, terminated, or modified, after the entry of the 11 order approving a transfer under section 1185, and any 12 right or obligation under the qualified financial contract 13 may not be accelerated, terminated, or modified, after the 14 entry of the order approving a transfer under section 1185 15 solely because of a condition described in section 16 1187(c)(1), other than a condition of the kind specified 17 in section 1187(b) that occurs after property of the estate 18 no longer includes a direct beneficial interest or an indi19 rect beneficial interest through the special trustee, in more 20 than 50 percent of the equity securities of the bridge com21 pany. 22 ‘‘(e) Notwithstanding any provision of any agreement 23 or in applicable nonbankruptcy law, an agreement of an 24 affiliate (including an executory contract, an unexpired 25 lease, qualified financial contract, or an agreement under G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 39 1 which the affiliate issued or is obligated for debt) and any 2 right or obligation under such agreement may not be ac3 celerated, terminated, or modified, solely because of a con4 dition described in section 1187(c)(1), other than a condi5 tion of the kind specified in section 1187(b) that occurs 6 after the bridge company is no longer a direct or indirect 7 beneficial holder of more than 50 percent of the equity 8 securities of the affiliate, at any time after the commence9 ment of the case if— 10 ‘‘(1) all direct or indirect interests in the affil- 11 iate that are property of the estate are transferred 12 under section 1185 to the bridge company within the 13 period specified in subsection (a); 14 ‘‘(2) the bridge company assumes— 15 ‘‘(A) any guarantee or other credit en- 16 hancement issued by the debtor relating to the 17 agreement of the affiliate; and 18 ‘‘(B) any obligations in respect of rights of 19 setoff, netting arrangement, or debt of the debt- 20 or that directly arises out of or directly relates 21 to the guarantee or credit enhancement; and 22 ‘‘(3) any property of the estate that directly 23 serves as collateral for the guarantee or credit en- 24 hancement is transferred to the bridge company. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 40 1 ‘‘§ 1189. Licenses, permits, and registrations 2 ‘‘(a) Notwithstanding any otherwise applicable non- 3 bankruptcy law, if a request is made under section 1185 4 for a transfer of property of the estate, any Federal, State, 5 or local license, permit, or registration that the debtor or 6 an affiliate had immediately before the commencement of 7 the case and that is proposed to be transferred under sec8 tion 1185 may not be accelerated, terminated, or modified 9 at any time after the request solely on account of— 10 11 ‘‘(1) the insolvency or financial condition of the debtor at any time before the closing of the case; 12 13 ‘‘(2) the commencement of a case under this title concerning the debtor; 14 ‘‘(3) the appointment of or taking possession by 15 a trustee in a case under this title concerning the 16 debtor or by a custodian before the commencement 17 of the case; or 18 19 ‘‘(4) a transfer under section 1185. ‘‘(b) Notwithstanding any otherwise applicable non- 20 bankruptcy law, any Federal, State, or local license, per21 mit, or registration that the debtor had immediately before 22 the commencement of the case that is included in a trans23 fer under section 1185 shall be valid and all rights and 24 obligations thereunder shall vest in the bridge company. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 41 1 ‘‘§ 1190. Exemption from securities laws 2 ‘‘For purposes of section 1145, a security of the 3 bridge company shall be deemed to be a security of a suc4 cessor to the debtor under a plan if the court approves 5 the disclosure statement for the plan as providing ade6 quate information (as defined in section 1125(a)) about 7 the bridge company and the security. 8 ‘‘§ 1191. Inapplicability of certain avoiding powers 9 ‘‘A transfer made or an obligation incurred by the 10 debtor to an affiliate prior to or after the commencement 11 of the case, including any obligation released by the debtor 12 or the estate to or for the benefit of an affiliate, in con13 templation of or in connection with a transfer under sec14 tion 1185 is not avoidable under section 544, 547, 15 548(a)(1)(B), or 549, or under any similar nonbankruptcy 16 law. 17 ‘‘§ 1192. Consideration of financial stability 18 ‘‘The court may consider the effect that any decision 19 in connection with this subchapter may have on financial 20 stability in the United States.’’. 21 SEC. 123. AMENDMENTS TO TITLE 28, UNITED STATES 22 23 CODE. (a) AMENDMENT TO CHAPTER 13.—Chapter 13 of 24 title 28, United States Code, is amended by adding at the 25 end the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 42 1 ‘‘§ 298. Judge for a case under subchapter V of chap2 3 ter 11 of title 11 ‘‘(a)(1) Notwithstanding section 295, the Chief Jus- 4 tice of the United States shall designate not fewer than 5 10 bankruptcy judges to be available to hear a case under 6 subchapter V of chapter 11 of title 11. Bankruptcy judges 7 may request to be considered by the Chief Justice of the 8 United States for such designation. 9 ‘‘(2) Notwithstanding section 155, a case under sub- 10 chapter V of chapter 11 of title 11 shall be heard under 11 section 157 by a bankruptcy judge designated under para12 graph (1), who shall be randomly assigned to hear such 13 case by the chief judge of the court of appeals for the cir14 cuit embracing the district in which the case is pending. 15 To the greatest extent practicable, the approvals required 16 under section 155 should be obtained. 17 ‘‘(3) If the bankruptcy judge assigned to hear a case 18 under paragraph (2) is not assigned to the district in 19 which the case is pending, the bankruptcy judge shall be 20 temporarily assigned to the district. 21 ‘‘(b) A case under subchapter V of chapter 11 of title 22 11, and all proceedings in the case, shall take place in 23 the district in which the case is pending. 24 ‘‘(c) In this section, the term ‘covered financial cor- 25 poration’ has the meaning given that term in section 26 101(9A) of title 11.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 43 1 (b) AMENDMENT TO SECTION 1334 OF TITLE 28.— 2 Section 1334 of title 28, United States Code, is amended 3 by adding at the end the following: 4 ‘‘(f) This section does not grant jurisdiction to the 5 district court after a transfer pursuant to an order under 6 section 1185 of title 11 of any proceeding related to a spe7 cial trustee appointed, or to a bridge company formed, in 8 connection with a case under subchapter V of chapter 11 9 of title 11.’’. 10 (c) TECHNICAL CONFORMING AMENDMENT.— AND 11 The table of sections for chapter 13 of title 28, United 12 States Code, is amended by adding at the end the fol13 lowing: ‘‘298. Judge for a case under subchapter V of chapter 11 of title 11.’’. 15 Subtitle C—Ending Government Guarantees 16 SEC. 131. REPEAL OF OBLIGATION GUARANTEE PROGRAM. 17 (a) IN GENERAL.—The following sections of the 14 18 Dodd-Frank Wall Street Reform and Consumer Protec19 tion Act (12 U.S.C. 5301 et seq.) are repealed: 20 (1) Section 1104. 21 (2) Section 1105. 22 (3) Section 1106. 23 (b) CLERICAL AMENDMENT.—The table of contents 24 under section 1(b) of the Dodd-Frank Wall Street Reform G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 44 1 and Consumer Protection Act is amended by striking the 2 items relating to sections 1104, 1105, and 1106. 3 SEC. 132. REPEAL OF SYSTEMIC RISK DETERMINATION IN 4 5 RESOLUTIONS. Section 13(c)(4)(G) of the Federal Deposit Insurance 6 Act (12 U.S.C. 1823(c)(4)(G)) is hereby repealed. 7 SEC. 133. RESTRICTIONS ON USE OF THE EXCHANGE STA- 8 9 BILIZATION FUND. (a) IN GENERAL.—Section 5302 of title 31, United 10 States Code, is amended by adding at the end the fol11 lowing: 12 ‘‘(e) Amounts in the fund may not be used for the 13 establishment of a guaranty program for any nongovern14 mental entity.’’. 15 (b) CONFORMING AMENDMENT.—Section 131(b) of 16 the Emergency Economic Stabilization Act of 2008 (12 17 U.S.C. 5236(b)) is amended by inserting ‘‘, or for the pur18 poses of preventing the liquidation or insolvency of any 19 entity’’ before the period. 20 21 22 23 Subtitle D—Eliminating Financial Market Utility Designations SEC. 141. REPEAL OF TITLE VIII. (a) REPEAL.—Title VIII of the Dodd-Frank Wall 24 Street Reform and Consumer Protection Act (12 U.S.C. 25 5461 et seq.) is repealed, and provisions of law amended G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 45 1 by such title are restored and revived as if such title had 2 never been enacted. 3 (b) CLERICAL AMENDMENT.—The table of contents 4 in section 1(b) of the Dodd-Frank Wall Street Reform and 5 Consumer Protection Act is amended by striking the items 6 relating to title VIII. 8 Subtitle E—Reform of the Financial Stability Act of 2010 9 SEC. 151. REPEAL AND MODIFICATION OF PROVISIONS OF 7 10 11 THE FINANCIAL STABILITY ACT OF 2010. (a) REPEALS.—The following provisions of the Fi- 12 nancial Stability Act of 2010 are repealed, and the provi13 sions of law amended or repealed by such provisions are 14 restored or revived as if such provisions had not been en15 acted: 16 (1) Subtitle B. 17 (2) Section 113. 18 (3) Section 114. 19 (4) Section 115. 20 (5) Section 116. 21 (6) Section 117. 22 (7) Section 119. 23 (8) Section 120. 24 (9) Section 121. 25 (10) Section 161. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 46 1 (11) Section 162. 2 (12) Section 164. 3 (13) Section 166. 4 (14) Section 167. 5 (15) Section 168. 6 (16) Section 170. 7 (17) Section 172. 8 (18) Section 174. 9 (19) Section 175. 10 (b) ADDITIONAL MODIFICATIONS.—The Financial 11 Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amend12 ed— 13 14 (1) in section 102(a), by striking paragraph (5); 15 (2) in section 111— 16 (A) in subsection (b)— 17 (i) in paragraph (1)— 18 (I) by striking ‘‘who shall each’’ 19 and inserting ‘‘who shall, except as 20 provided below, each’’; and 21 (II) by striking subparagraphs 22 (B) through (J) and inserting the fol- 23 lowing: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 47 1 ‘‘(B) each member of the Board of Gov- 2 ernors, who shall collectively have 1 vote on the 3 Council; 4 ‘‘(C) the Comptroller of the Currency; 5 ‘‘(D) the Director of the Consumer Law 6 Enforcement Agency; 7 ‘‘(E) each member of the Commission, who 8 shall collectively have 1 vote on the Council; 9 ‘‘(F) each member of the Corporation, who 10 shall collectively have 1 vote on the Council; 11 ‘‘(G) each member of the Commodity Fu- 12 tures Trading Commission, who shall collec- 13 tively have 1 vote on the Council; 14 ‘‘(H) the Director of the Federal Housing 15 Finance Agency; 16 ‘‘(I) each member of the National Credit 17 Union Administration Board, who shall collec- 18 tively have 1 vote on the Council; and 19 ‘‘(J) the Independent Insurance Advo- 20 cate.’’; 21 (ii) in paragraph (2)— 22 (I) by striking subparagraphs (A) 23 and (B); and 24 (II) by redesignating subpara- 25 graphs (C), (D), and (E) as subpara- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 48 1 graphs (A), (B), and (C), respectively; 2 and 3 (iii) by adding at the end the fol- 4 lowing: 5 ‘‘(4) VOTING 6 ‘‘(A) VOTING WITHIN THE ENTITY.—An 7 entity described under subparagraph (B), (E), 8 (F), (G), or (I) of paragraph (1) shall deter- 9 mine the entity’s Council vote by using the vot- 10 ing process normally applicable to votes by the 11 entity’s members. 12 ‘‘(B) CASTING OF ENTITY VOTE.—The 1 13 collective Council vote of an entity described 14 under subparagraph (A) shall be cast by the 15 head of such agency or, in the event such head 16 is unable to cast such vote, the next most senior 17 member of the entity available.’’; 18 (B) in subsection (c), by striking ‘‘sub- 19 paragraphs (C), (D), and (E)’’ and inserting 20 ‘‘subparagraphs (B), (C), and (D)’’; 21 (C) in subsection (e), by adding at the end 22 the following: 23 ‘‘(3) STAFF ACCESS.—Any member of the 24 Council may select to have one or more individuals 25 on the member’s staff attend a meeting of the Coun- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 BY MULTI-PERSON ENTITY.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 49 1 cil, including any meeting of representatives of the 2 member agencies other than the members them- 3 selves. 4 ‘‘(4) CONGRESSIONAL OVERSIGHT.—All meet- 5 ings of the Council, whether or not open to the pub- 6 lic, shall be open to the attendance by members of 7 the Committee on Financial Services of the House of 8 Representatives and the Committee on Banking, 9 Housing, and Urban Affairs of the Senate. 10 ‘‘(5) MEMBER AGENCY MEETINGS.—Any meet- 11 ing of representatives of the member agencies other 12 than the members themselves shall be open to at- 13 tendance by staff of the Committee on Financial 14 Services of the House of Representatives and the 15 Committee on Banking, Housing, and Urban Affairs 16 of the Senate.’’; 17 (D) by striking subsection (g) (relating to 18 the nonapplicability of FACA); 19 (E) by inserting after subsection (f) the 20 21 following: ‘‘(g) OPEN MEETING REQUIREMENT.—The Council 22 shall be an agency for purposes of section 552b of title 23 5, United States Code (commonly referred to as the ‘Gov24 ernment in the Sunshine Act’). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 50 1 ‘‘(h) CONFIDENTIAL CONGRESSIONAL BRIEFINGS.— 2 At the request of the Chairman of the Committee on Fi3 nancial Services of the House of Representatives or the 4 Chairman of the Committee on Banking, Housing, and 5 Urban Affairs of the Senate, the Chairperson shall appear 6 before Congress to provide a confidential briefing.’’; and 7 (F) redesignating subsections (h) 8 through (j) as subsections (i) through (k), re- 9 spectively; 10 (3) in section 112— 11 (A) in subsection (a)(2)— 12 (i) in subparagraph (A), by striking 13 ‘‘the Federal Insurance Office and, if nec- 14 essary to assess risks to the United States 15 financial system, direct the Office of Fi- 16 nancial Research to’’ and inserting ‘‘and, if 17 necessary to assess risks to the United 18 States financial system,’’; 19 (ii) by striking subparagraphs (B), 20 (H), (I), and (J); 21 (iii) by redesignating subparagraphs 22 (C), (D), (E), (F), (G), (K), (L), (M), and 23 (N) as subparagraphs (B), (C), (D), (E), 24 (F), (G), (H), (I), and (J), respectively; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 by 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 51 1 (iv) in subparagraph (J), as so redes- 2 ignated— 3 (I) in clause (iii), by adding 4 ‘‘and’’ at the end; 5 (II) by striking clauses (iv) and 6 (v); and 7 (III) by redesignating clause (vi) 8 as clause (iv); and 9 (B) in subsection (d)— 10 (i) in paragraph (1), by striking ‘‘the 11 Office of Financial Research, member 12 agencies, and the Federal Insurance Of- 13 fice’’ and inserting ‘‘member agencies’’; 14 (ii) in paragraph (2), by striking ‘‘the 15 Office of Financial Research, any member 16 agency, and the Federal Insurance Office,’’ 17 and inserting ‘‘member agencies’’; 18 (iii) in paragraph (3)— 19 (I) by striking ‘‘, acting through 20 the Office of Financial Research,’’ 21 each place it appears; and 22 (II) in subparagraph (B), by 23 striking ‘‘the Office of Financial Re- 24 search or’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 52 1 (iv) in paragraph (5)(A), by striking 2 ‘‘, the Office of Financial Research,’’; 3 (4) by amending section 118 to read as follows: 4 5 ‘‘SEC. 118. COUNCIL FUNDING. ‘‘There is authorized to be appropriated to the Coun- 6 cil $4,000,000 for fiscal year 2017 and each fiscal year 7 thereafter to carry out the duties of the Council.’’; 8 (5) in section 163— 9 (A) by striking subsection (a); 10 (B) by redesignating subsection (b) as sub- 11 section (a); and 12 (C) in subsection (a), as so redesignated— 13 (i) by striking ‘‘or a nonbank financial 14 company supervised by the Board of Gov- 15 ernors’’ each place such term appears; 16 (ii) in paragraph (4), by striking ‘‘In 17 addition’’ and inserting the following: 18 ‘‘(A) IN 19 addition’’; and (iii) by adding at the end the fol- 20 lowing: 21 ‘‘(B) EXCEPTION FOR QUALIFYING BANK- 22 ING ORGANIZATION.—Subparagraph 23 not apply to a proposed acquisition by a quali- 24 fying banking organization, as defined under G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—In 15:00 Apr 19, 2017 Jkt 000000 (A) shall (657255 10) PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 53 1 section 605 of the Financial CHOICE Act of 2 2017.’’; and 3 (6) in section 165— 4 (A) by striking ‘‘nonbank financial compa- 5 nies supervised by the Board of Governors and’’ 6 each place such term appears; 7 (B) by striking ‘‘nonbank financial com- 8 pany supervised by the Board of Governors 9 and’’ each place such term appears; 10 (C) in subsection (a), by amending para- 11 graph (2) to read as follows: 12 ‘‘(2) TAILORED prescribing 13 more stringent prudential standards under this sec- 14 tion, the Board of Governors may differentiate 15 among companies on an individual basis or by cat- 16 egory, taking into consideration their capital struc- 17 ture, riskiness, complexity, financial activities (in- 18 cluding the financial activities of their subsidiaries), 19 size, and any other risk-related factors that the 20 Board of Governors deems appropriate.’’; 21 (D) in subsection (b)— 22 (i) in paragraph (1)(B)(iv), by strik- 23 ing ‘‘, on its own or pursuant to a rec- 24 ommendation made by the Council in ac- 25 cordance with section 115,’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 APPLICATION.—In 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 54 1 (ii) in paragraph (2)— 2 (I) by striking ‘‘foreign nonbank 3 financial company supervised by the 4 Board of Governors or’’; 5 (II) by striking ‘‘shall—’’ and all 6 that follows through ‘‘give due’’ and 7 inserting ‘‘shall give due’’; 8 (III) in subparagraph (A), by 9 striking ‘‘; and’’ and inserting a pe- 10 riod; and 11 (IV) by striking subparagraph 12 (B); 13 (iii) in paragraph (3)— 14 (I) in subparagraph (A)— 15 (aa) by striking clause (i); 16 (bb) redesignating 17 clauses (ii), (iii), and (iv) as 18 clauses (i), (ii), and (iii), respec- 19 tively; and 20 (cc) in clause (iii), as so re- 21 designated, by adding ‘‘and’’ at 22 the end; 23 (II) by striking subparagraphs 24 (B) and (C); and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 by 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 55 1 (III) by redesignating subpara- 2 graph (D) as subparagraph (B); and 3 (iv) in paragraph (4), by striking ‘‘a 4 nonbank financial company supervised by 5 the Board of Governors or’’; 6 (E) in subsection (c)— 7 (i) in paragraph (1), by striking 8 ‘‘under section 115(c)’’; and 9 (ii) in paragraph (2)— 10 (I) by amending subparagraph 11 (A) to read as follows: 12 ‘‘(A) any recommendations of the Coun- 13 cil;’’; and 14 (II) in subparagraph (D), by 15 striking ‘‘nonbank financial company 16 supervised by the Board of Governors 17 or’’; 18 (F) in subsection (d)— 19 (i) by striking ‘‘a nonbank financial 20 company supervised by the Board of Gov- 21 ernors or’’ each place such term appears; 22 (ii) in paragraph (1), by striking ‘‘pe- 23 riodically’’ and inserting ‘‘not more often 24 than every 2 years’’; 25 (iii) in paragraph (3)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 56 1 (I) by striking ‘‘The Board’’ and 2 inserting the following: 3 ‘‘(A) IN 4 Board’’; (II) by striking ‘‘shall review’’ 5 and inserting the following: ‘‘shall— 6 ‘‘(i) review’’; 7 (III) by striking the period and 8 inserting ‘‘; and’’; and 9 (IV) by adding at the end the fol- 10 lowing: 11 ‘‘(ii) not later than the end of the 6- 12 month period beginning on the date the 13 bank holding company submits the resolu- 14 tion plan, provide feedback to the bank 15 holding company on such plan. 16 ‘‘(B) DISCLOSURE OF ASSESSMENT 17 FRAMEWORK.—The 18 publicly disclose the assessment framework that 19 is used to review information under this para- 20 graph and shall provide the public with a notice 21 and comment period before finalizing such as- 22 sessment framework.’’. Board of Governors shall 23 (iv) in paragraph (6), by striking 24 ‘‘nonbank financial company supervised by G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 57 1 the Board, any bank holding company,’’ 2 and inserting ‘‘bank holding company’’; 3 (G) in subsection (e)— 4 (i) in paragraph (1), by striking ‘‘a 5 nonbank financial company supervised by 6 the Board of Governors or’’; 7 (ii) in paragraph (3), by striking ‘‘the 8 nonbank financial company supervised by 9 the Board of Governors or’’ each place 10 such term appears; and 11 (iii) in paragraph (4), by striking ‘‘a 12 nonbank financial company supervised by 13 the Board of Governors or’’; 14 (H) in subsection (g)(1), by striking ‘‘and 15 any nonbank financial company supervised by 16 the Board of Governors’’; 17 (I) in subsection (h)— 18 (i) by striking paragraph (1); 19 (ii) by redesignating paragraphs (2), 20 (3), and (4) as paragraphs (1), (2), and 21 (3), respectively; 22 (iii) in paragraph (1), as so redesig- 23 nated, by striking ‘‘paragraph (3)’’ each 24 place such term appears and inserting 25 ‘‘paragraph (2)’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 58 1 (iv) in paragraph (2), as so redesig- 2 nated— 3 (I) in subparagraph (A), by strik- 4 ing ‘‘the nonbank financial company 5 supervised by the Board of Governors 6 or bank holding company described in 7 subsection (a), as applicable’’ and in- 8 serting ‘‘a bank holding company de- 9 scribed in subsection (a)’’; and 10 (II) in subparagraph (B), by 11 striking ‘‘the nonbank financial com- 12 pany supervised by the Board of Gov- 13 ernors or a bank holding company de- 14 scribed in subsection (a), as applica- 15 ble’’ and inserting ‘‘a bank holding 16 company described in subsection (a)’’; 17 (J) in subsection (i)— 18 (i) in paragraph (1)— 19 (I) in subparagraph (A), by strik- 20 ing ‘‘, in coordination with the appro- 21 priate primary financial regulatory 22 agencies and the Federal Insurance 23 Office,’’; 24 (II) in subparagraph (B)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 59 1 (aa) by amending clause (i) 2 to read as follows: 3 ‘‘(i) shall— 4 ‘‘(I) issue regulations, after pro- 5 viding for public notice and comment, 6 that provide for at least 3 different 7 sets of conditions under which the 8 evaluation required by this subsection 9 shall be conducted, including baseline, 10 adverse, and severely adverse, and 11 methodologies, including models used 12 to estimate losses on certain assets, 13 and the Board of Governors shall not 14 carry out any such evaluation until 60 15 days after such regulations are issued; 16 and 17 ‘‘(II) provide copies of such regu- 18 lations to the Comptroller General of 19 the United States and the Panel of 20 Economic Advisors of the Congres- 21 sional Budget Office before publishing 22 such regulations;’’; 23 (bb) in clause (ii), by strik- 24 ing ‘‘and nonbank financial com- 25 panies’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 60 1 (cc) in clause (iv), by strik- 2 ing ‘‘and’’ at the end; 3 (dd) in clause (v), by strik- 4 ing the period and inserting the 5 following: ‘‘, including any results 6 of a resubmitted test;’’; and 7 (ee) by adding at the end 8 the following: 9 ‘‘(vi) shall, in establishing the severely 10 adverse condition under clause (i), provide 11 detailed consideration of the model’s ef- 12 fects on financial stability and the cost and 13 availability of credit; 14 ‘‘(vii) shall, in developing the models 15 and methodologies and providing them for 16 notice and comment under this subpara- 17 graph, publish a process to test the models 18 and methodologies for their potential to 19 magnify systemic and institutional risks in- 20 stead of facilitating increased resiliency; 21 ‘‘(viii) shall design and publish a proc- 22 ess to test and document the sensitivity 23 and uncertainty associated with the model 24 system’s data quality, specifications, and 25 assumptions; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 61 1 ‘‘(ix) shall communicate the range and 2 sources of uncertainty surrounding the 3 models and methodologies.’’; and 4 (III) by adding at the end the 5 following: 6 ‘‘(C) CCAR 7 ‘‘(i) PARAMETERS AND CON- 8 SEQUENCES APPLICABLE TO CCAR.—The 9 requirements of subparagraph (B) shall 10 apply to CCAR. 11 ‘‘(ii) TWO-YEAR LIMITATION.—The 12 Board of Governors may not subject a 13 company to CCAR more than once every 14 two years. 15 ‘‘(iii) LIMITATION ON QUALITATIVE 16 CAPITAL PLANNING OBJECTIONS.—In 17 rying out CCAR, the Board of Governors 18 may not object to a company’s capital plan 19 on the basis of qualitative deficiencies in 20 the company’s capital planning process. 21 ‘‘(iv) NON-INCLUSION car- OF COMPANY- 22 RUN STRESS TESTS.—In 23 titative 24 Board of Governors may not take into ac- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REQUIREMENTS.— 15:00 Apr 19, 2017 Jkt 000000 assessment making a quan- under CCAR, the (657255 10) PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 62 1 count stress tests conducted pursuant to 2 paragraph (2). 3 ‘‘(v) COMPANY 4 Board of Governors shall establish and 5 publish procedures for responding to in- 6 quiries from companies subject to CCAR, 7 including establishing the time frame in 8 which such responses will be made, and 9 make such procedures publicly available. 10 ‘‘(vi) CCAR DEFINED.—For purposes 11 of this subparagraph and subparagraph 12 (E), the term ‘CCAR’ means the Com- 13 prehensive Capital Analysis and Review es- 14 tablished by the Board of Governors.’’; and 15 (ii) in paragraph (2)— 16 (I) in subparagraph (A)— 17 (aa) by striking ‘‘a bank 18 holding company’’ and inserting 19 ‘‘bank holding company’’; 20 (bb) 21 by striking ‘‘semi- annual’’ and inserting ‘‘annual’’; 22 (cc) by striking ‘‘All other 23 financial companies’’ and insert- 24 ing ‘‘All other bank holding com- 25 panies’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 INQUIRIES.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 63 1 (dd) by striking ‘‘and are 2 regulated by a primary Federal 3 financial regulatory agency’’; 4 (II) in subparagraph (B)— 5 (aa) by striking ‘‘and to its 6 primary 7 agency’’; and regulatory 8 (bb) by striking ‘‘primary fi- 9 nancial regulatory agency’’ the 10 second time it appears and in- 11 serting ‘‘Board of Governors’’; 12 and 13 (III) in subparagraph (C)— 14 (aa) by striking ‘‘Each Fed- 15 eral primary financial regulatory 16 agency, in coordination with the 17 Board of Governors and the Fed- 18 eral Insurance Office,’’ and in- 19 serting ‘‘The Board of Gov- 20 ernors’’; and 21 (bb) by striking ‘‘consistent 22 and comparable’’. 23 (K) in subsection (j)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 financial 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 64 1 (i) in paragraph (1), by striking ‘‘or a 2 nonbank financial company supervised by 3 the Board of Governors’’; and 4 (ii) in paragraph (2), by striking ‘‘the 5 factors described in subsections (a) and (b) 6 of section 113 and any other’’ and insert- 7 ing ‘‘any’’; 8 (L) in subsection (k)(1), by striking ‘‘or 9 nonbank financial company supervised by the 10 Board of Governors’’; and 11 12 13 (M) by adding at the end the following: ‘‘(l) EXEMPTION NIZATIONS.—This FOR QUALIFYING BANKING ORGA- section shall not apply to a proposed 14 acquisition by a qualifying banking organization, as de15 fined under section 605 of the Financial CHOICE Act of 16 2017.’’. 17 (c) TREATMENT 18 QUIREMENTS.— 19 (1) IN OTHER RESOLUTION PLAN RE- GENERAL.—With respect to an appro- 20 priate Federal banking agency that requires a bank- 21 ing organization to submit to the agency a resolution 22 plan not described under section 165(d) of the 23 Dodd-Frank Wall Street Reform and Consumer Pro- 24 tection Act— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 65 1 (A) the agency shall comply with the re- 2 quirements of paragraphs (3) and (4) of such 3 section 165(d); 4 (B) the agency may not require the sub- 5 mission of such a resolution plan more often 6 than every 2 years; and 7 (C) paragraphs (6) and (7) of such section 8 165(d) shall apply to such a resolution plan. 9 (2) DEFINITIONS.—For purposes of this sub- 10 section, the terms ‘‘appropriate Federal banking 11 agency’’ and ‘‘banking organization’’ have the mean- 12 ing given those terms, respectively, under section 13 105. 14 (d) ACTIONS 15 PANY.—Section TO CREATE A BANK HOLDING COM- 3(b)(1) of the Bank Holding Company 16 Act of 1956 (12 U.S.C. 1842(b)(1)) is amended— 17 18 (1) by striking ‘‘Upon receiving’’ and inserting the following: 19 ‘‘(A) IN 20 21 vision’’ and inserting the following: 22 ‘‘(B) IMMEDIATE 23 ‘‘(i) IN ACTION.— GENERAL.—Notwithstanding any other provision’’; and 25 (3) by adding at the end the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 receiving’’; (2) by striking ‘‘Notwithstanding any other pro- 24 VerDate 0ct 09 2002 GENERAL.—Upon Jkt 000000 (657255 10) PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 66 1 ‘‘(ii) EXCEPTION.—The Board may 2 not take any action pursuant to clause (i) 3 on an application that would cause any 4 company to become a bank holding com- 5 pany unless such application involves the 6 company acquiring a bank that is critically 7 undercapitalized (as such term is defined 8 under section 38(b) of the Federal Deposit 9 Insurance Act).’’. 10 (e) CONCENTRATION LIMITS APPLIED ONLY TO 11 BANKING ORGANIZATIONS.—Section 14 of the Bank 12 Holding Company Act of 1956 (12 U.S.C. 1852) is 13 amended— 14 (1) by striking ‘‘financial company’’ each place 15 such term appears and inserting ‘‘banking organiza- 16 tion’’; 17 (2) in subsection (a)— 18 (A) by amending paragraph (2) to read as 19 follows: 20 ‘‘(2) the term ‘banking organization’ means— 21 ‘‘(A) an insured depository institution; 22 ‘‘(B) a bank holding company; 23 ‘‘(C) a savings and loan holding company; 24 ‘‘(D) a company that controls an insured 25 depository institution; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 67 1 ‘‘(E) a foreign bank or company that is 2 treated as a bank holding company for purposes 3 of this Act; and’’; 4 (B) in paragraph (3)— 5 (i) in subparagraph (A)(ii), by adding 6 ‘‘and’’ at the end; 7 (ii) in subparagraph (B)(ii), by strik- 8 ing ‘‘; and’’ and inserting a period; and 9 (iii) by striking subparagraph (C); 10 and 11 (3) in subsection (b), by striking ‘‘financial 12 companies’’ and inserting ‘‘banking organizations’’. 13 (f) CONFORMING AMENDMENT.—Section 3502(5) of 14 title 44, United States Code, is amended by striking ‘‘the 15 Office of Financial Research,’’. 16 (g) CLERICAL AMENDMENT.—The table of contents 17 under section 1(b) of the Dodd-Frank Wall Street Reform 18 and Consumer Protection Act is amended by striking the 19 items relating to subtitle B of title I and 113, 114, 115, 20 116, 117, 119, 120, 121, 161, 162, 164, 166, 167, 168, 21 170, 172, 174, and 175. 22 SEC. 152. OPERATIONAL RISK CAPITAL REQUIREMENTS 23 FOR BANKING ORGANIZATIONS. 24 (a) IN GENERAL.—An appropriate Federal banking 25 agency may not establish an operational risk capital re- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 68 1 quirement for banking organizations, unless such require2 ment— 3 4 (1) is based on the risks posed by a banking organization’s current activities and businesses; 5 6 (2) is appropriately sensitive to the risks posed by such current activities and businesses; 7 (3) is determined under a forward-looking as- 8 sessment of potential losses that may arise out of a 9 banking organization’s current activities and busi- 10 nesses, which is not solely based on a banking orga- 11 nization’s historical losses; and 12 (4) permits adjustments based on qualifying 13 operational risk mitigants. 14 (b) DEFINITIONS.—For purposes of this section, the 15 terms ‘‘appropriate Federal banking agency’’ and ‘‘bank16 ing organization’’ have the meaning given those terms, re17 spectively, under section 605. 22 TITLE II—DEMANDING ACCOUNTABILITY FROM WALL STREET Subtitle A—SEC Penalties Modernization 23 SEC. 211. ENHANCEMENT OF CIVIL PENALTIES FOR SECU- 18 19 20 21 24 RITIES LAWS VIOLATIONS. 25 (a) UPDATED CIVIL MONEY PENALTIES.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 69 1 (1) SECURITIES 2 (A) MONEY PENALTIES IN ADMINISTRA- 3 TIVE ACTIONS.—Section 4 ties Act of 1933 (15 U.S.C. 77h–1(g)(2)) is 5 amended— 6 8A(g)(2) of the Securi- (i) in subparagraph (A)— 7 (I) by striking ‘‘$7,500’’ and in- 8 serting ‘‘$10,000’’; and 9 (II) by striking ‘‘$75,000’’ and 10 inserting ‘‘$100,000’’; 11 (ii) in subparagraph (B)— 12 (I) by striking ‘‘$75,000’’ and in- 13 serting ‘‘$100,000’’; and 14 (II) by striking ‘‘$375,000’’ and 15 inserting ‘‘$500,000’’; and 16 (iii) by striking subparagraph (C) and 17 inserting the following: 18 ‘‘(C) THIRD 19 ‘‘(i) IN TIER.— GENERAL.—Notwithstanding 20 subparagraphs (A) and (B), the amount of 21 penalty for each such act or omission shall 22 not exceed the amount specified in clause 23 (ii) if— 24 ‘‘(I) the act or omission described 25 in paragraph (1) involved fraud, de- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ACT OF 1933.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 70 1 ceit, manipulation, or deliberate or 2 reckless disregard of a regulatory re- 3 quirement; and 4 ‘‘(II) such act or omission di- 5 rectly or indirectly resulted in— 6 ‘‘(aa) substantial losses or 7 created a significant risk of sub- 8 stantial losses to other persons; 9 or 10 ‘‘(bb) substantial pecuniary 11 gain to the person who com- 12 mitted the act or omission. 13 ‘‘(ii) MAXIMUM 14 ALTY.—The 15 (i) is the greatest of— OF PEN- amount referred to in clause 16 ‘‘(I) $300,000 for a natural per- 17 son or $1,450,000 for any other per- 18 son; 19 ‘‘(II) 3 times the gross amount of 20 pecuniary gain to the person who 21 committed the act or omission; or 22 ‘‘(III) the amount of losses in- 23 curred by victims as a result of the 24 act or omission.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 71 1 (B) MONEY IN CIVIL 2 TIONS.—Section 3 of 1933 (15 U.S.C. 77t(d)(2)) is amended— 4 (i) in subparagraph (A)— 5 AC- 20(d)(2) of the Securities Act (I) by striking ‘‘$5,000’’ and in- 6 serting ‘‘$10,000’’; and 7 (II) by striking ‘‘$50,000’’ and 8 inserting ‘‘$100,000’’; 9 (ii) in subparagraph (B)— 10 (I) by striking ‘‘$50,000’’ and in- 11 serting ‘‘$100,000’’; and 12 (II) by striking ‘‘$250,000’’ and 13 inserting ‘‘$500,000’’; and 14 (iii) by striking subparagraph (C) and 15 inserting the following: 16 ‘‘(C) THIRD 17 ‘‘(i) IN TIER.— GENERAL.—Notwithstanding 18 subparagraphs (A) and (B), the amount of 19 penalty for each such violation shall not 20 exceed the amount specified in clause (ii) 21 if— 22 ‘‘(I) the violation described in 23 paragraph (1) involved fraud, deceit, 24 manipulation, or deliberate or reckless G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PENALTIES 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 72 1 disregard of a regulatory requirement; 2 and 3 ‘‘(II) such violation directly or in- 4 directly resulted in substantial losses 5 or created a significant risk of sub- 6 stantial losses to other persons. 7 ‘‘(ii) MAXIMUM 8 ALTY.—The 9 (i) is the greatest of— PEN- OF amount referred to in clause 10 ‘‘(I) $300,000 for a natural per- 11 son or $1,450,000 for any other per- 12 son; 13 ‘‘(II) 3 times the gross amount of 14 pecuniary gain to such defendant as a 15 result of the violation; or 16 ‘‘(III) the amount of losses in- 17 curred by victims as a result of the 18 violation.’’. 19 (2) SECURITIES 20 EXCHANGE ACT OF 1934.— (A) MONEY PENALTIES 21 TIONS.—Section 22 Exchange 23 78u(d)(3)(B)) is amended— 24 15:00 Apr 19, 2017 Act IN CIVIL AC- 21(d)(3)(B) of the Securities of 1934 (15 U.S.C. (i) in clause (i)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT Jkt 000000 (657255 10) PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 73 1 (I) by striking ‘‘$5,000’’ and in- 2 serting ‘‘$10,000’’; and 3 (II) by striking ‘‘$50,000’’ and 4 inserting ‘‘$100,000’’; 5 (ii) in clause (ii)— 6 (I) by striking ‘‘$50,000’’ and in- 7 serting ‘‘$100,000’’; and 8 (II) by striking ‘‘$250,000’’ and 9 inserting ‘‘$500,000’’; and 10 (iii) by striking clause (iii) and insert- 11 ing the following: 12 ‘‘(iii) THIRD 13 ‘‘(I) IN GENERAL.—Notwithstanding 14 clauses (i) and (ii), the amount of penalty 15 for each such violation shall not exceed the 16 amount specified in subclause (II) if— 17 ‘‘(aa) the violation described in 18 subparagraph (A) involved fraud, de- 19 ceit, manipulation, or deliberate or 20 reckless disregard of a regulatory re- 21 quirement; and 22 ‘‘(bb) such violation directly or 23 indirectly 24 losses or created a significant risk of 25 substantial losses to other persons. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TIER.— 15:00 Apr 19, 2017 Jkt 000000 resulted in substantial (657255 10) PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 74 1 ‘‘(II) MAXIMUM 2 ALTY.—The 3 clause (I) is the greatest of— OF PEN- amount referred to in sub- 4 ‘‘(aa) $300,000 for a natural 5 person or $1,450,000 for any other 6 person; 7 ‘‘(bb) 3 times the gross amount 8 of pecuniary gain to such defendant 9 as a result of the violation; or 10 ‘‘(cc) the amount of losses in- 11 curred by victims as a result of the 12 violation.’’. 13 (B) MONEY PENALTIES IN ADMINISTRA- 14 TIVE ACTIONS.—Section 15 ties Exchange Act of 1934 (15 U.S.C. 78u– 16 2(b)) is amended— 17 21B(b) of the Securi- (i) in paragraph (1)— 18 (I) by striking ‘‘$5,000’’ and in- 19 serting ‘‘$10,000’’; and 20 (II) by striking ‘‘$50,000’’ and 21 inserting ‘‘$100,000’’; 22 (ii) in paragraph (2)— 23 (I) by striking ‘‘$50,000’’ and in- 24 serting ‘‘$100,000’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 75 1 (II) by striking ‘‘$250,000’’ and 2 inserting ‘‘$500,000’’; and 3 (iii) by striking paragraph (3) and in- 4 serting the following: 5 ‘‘(3) THIRD 6 ‘‘(A) IN GENERAL.—Notwithstanding 7 paragraphs (1) and (2), the amount of penalty 8 for each such act or omission shall not exceed 9 the amount specified in subparagraph (B) if— 10 ‘‘(i) the act or omission described in 11 subsection (a) involved fraud, deceit, ma- 12 nipulation, or deliberate or reckless dis- 13 regard of a regulatory requirement; and 14 ‘‘(ii) such act or omission directly or 15 indirectly resulted in substantial losses or 16 created a significant risk of substantial 17 losses to other persons or resulted in sub- 18 stantial pecuniary gain to the person who 19 committed the act or omission. 20 ‘‘(B) MAXIMUM AMOUNT OF PENALTY.— 21 The amount referred to in subparagraph (A) is 22 the greatest of— 23 ‘‘(i) $300,000 for a natural person or 24 $1,450,000 for any other person; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TIER.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 76 1 ‘‘(ii) 3 times the gross amount of pe- 2 cuniary gain to the person who committed 3 the act or omission; or 4 ‘‘(iii) the amount of losses incurred by 5 victims as a result of the act or omission.’’. 6 (3) INVESTMENT 7 (A) MONEY PENALTIES IN ADMINISTRA- 8 TIVE ACTIONS.—Section 9 ment Company Act of 1940 (15 U.S.C. 80a– 10 9(d)(2) of the Invest- 9(d)(2)) is amended— 11 (i) in subparagraph (A)— 12 (I) by striking ‘‘$5,000’’ and in- 13 serting ‘‘$10,000’’; and 14 (II) by striking ‘‘$50,000’’ and 15 inserting ‘‘$100,000’’; 16 (ii) in subparagraph (B)— 17 (I) by striking ‘‘$50,000’’ and in- 18 serting ‘‘$100,000’’; and 19 (II) by striking ‘‘$250,000’’ and 20 inserting ‘‘$500,000’’; and 21 (iii) by striking subparagraph (C) and 22 inserting the following: 23 ‘‘(C) THIRD 24 ‘‘(i) IN 25 15:00 Apr 19, 2017 TIER.— GENERAL.—Notwithstanding subparagraphs (A) and (B), the amount of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COMPANY ACT OF 1940.— Jkt 000000 (657255 10) PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 77 1 penalty for each such act or omission shall 2 not exceed the amount specified in clause 3 (ii) if— 4 ‘‘(I) the act or omission described 5 in paragraph (1) involved fraud, de- 6 ceit, manipulation, or deliberate or 7 reckless disregard of a regulatory re- 8 quirement; and 9 ‘‘(II) such act or omission di- 10 rectly or indirectly resulted in sub- 11 stantial losses or created a significant 12 risk of substantial losses to other per- 13 sons or resulted in substantial pecu- 14 niary gain to the person who com- 15 mitted the act or omission. 16 ‘‘(ii) MAXIMUM 17 ALTY.—The 18 (i) is the greatest of— OF PEN- amount referred to in clause 19 ‘‘(I) $300,000 for a natural per- 20 son or $1,450,000 for any other per- 21 son; 22 ‘‘(II) 3 times the gross amount of 23 pecuniary gain to the person who 24 committed the act or omission; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 78 1 ‘‘(III) the amount of losses in- 2 curred by victims as a result of the 3 act or omission.’’. 4 (B) MONEY IN CIVIL AC- 5 TIONS.—Section 6 Company Act of 1940 (15 U.S.C. 80a– 7 41(e)(2)) is amended— 8 42(e)(2) of the Investment (i) in subparagraph (A)— 9 (I) by striking ‘‘$5,000’’ and in- 10 serting ‘‘$10,000’’; and 11 (II) by striking ‘‘$50,000’’ and 12 inserting ‘‘$100,000’’; 13 (ii) in subparagraph (B)— 14 (I) by striking ‘‘$50,000’’ and in- 15 serting ‘‘$100,000’’; and 16 (II) by striking ‘‘$250,000’’ and 17 inserting ‘‘$500,000’’; and 18 (iii) by striking subparagraph (C) and 19 inserting the following: 20 ‘‘(C) THIRD 21 ‘‘(i) IN TIER.— GENERAL.—Notwithstanding 22 subparagraphs (A) and (B), the amount of 23 penalty for each such violation shall not 24 exceed the amount specified in clause (ii) 25 if— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PENALTIES 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 79 1 ‘‘(I) the violation described in 2 paragraph (1) involved fraud, deceit, 3 manipulation, or deliberate or reckless 4 disregard of a regulatory requirement; 5 and 6 ‘‘(II) such violation directly or in- 7 directly resulted in substantial losses 8 or created a significant risk of sub- 9 stantial losses to other persons. 10 ‘‘(ii) MAXIMUM 11 ALTY.—The 12 (i) is the greatest of— OF PEN- amount referred to in clause 13 ‘‘(I) $300,000 for a natural per- 14 son or $1,450,000 for any other per- 15 son; 16 ‘‘(II) 3 times the gross amount of 17 pecuniary gain to such defendant as a 18 result of the violation; or 19 ‘‘(III) the amount of losses in- 20 curred by victims as a result of the 21 violation.’’. 22 (4) INVESTMENT 23 (A) MONEY 24 15:00 Apr 19, 2017 ADVISERS ACT OF 1940.— PENALTIES IN ADMINISTRA- TIVE ACTIONS.—Section G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT Jkt 000000 203(i)(2) of the Invest- (657255 10) PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 80 1 ment Advisers Act of 1940 (15 U.S.C. 80b– 2 3(i)(2)) is amended— 3 (i) in subparagraph (A)— 4 (I) by striking ‘‘$5,000’’ and in- 5 serting ‘‘$10,000’’; and 6 (II) by striking ‘‘$50,000’’ and 7 inserting ‘‘$100,000’’; 8 (ii) in subparagraph (B)— 9 (I) by striking ‘‘$50,000’’ and in- 10 serting ‘‘$100,000’’; and 11 (II) by striking ‘‘$250,000’’ and 12 inserting ‘‘$500,000’’; and 13 (iii) by striking subparagraph (C) and 14 inserting the following: 15 ‘‘(C) THIRD 16 ‘‘(i) IN GENERAL.—Notwithstanding 17 subparagraphs (A) and (B), the amount of 18 penalty for each such act or omission shall 19 not exceed the amount specified in clause 20 (ii) if— 21 ‘‘(I) the act or omission described 22 in paragraph (1) involved fraud, de- 23 ceit, manipulation, or deliberate or 24 reckless disregard of a regulatory re- 25 quirement; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TIER.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 81 1 ‘‘(II) such act or omission di- 2 rectly or indirectly resulted in sub- 3 stantial losses or created a significant 4 risk of substantial losses to other per- 5 sons or resulted in substantial pecu- 6 niary gain to the person who com- 7 mitted the act or omission. 8 ‘‘(ii) MAXIMUM 9 ALTY.—The 10 OF PEN- amount referred to in clause (i) is the greatest of— 11 ‘‘(I) $300,000 for a natural per- 12 son or $1,450,000 for any other per- 13 son; 14 ‘‘(II) 3 times the gross amount of 15 pecuniary gain to the person who 16 committed the act or omission; or 17 ‘‘(III) the amount of losses in- 18 curred by victims as a result of the 19 act or omission.’’. 20 (B) MONEY PENALTIES IN CIVIL AC- 21 TIONS.—Section 22 Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) 23 is amended— 24 15:00 Apr 19, 2017 209(e)(2) of the Investment (i) in subparagraph (A)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT Jkt 000000 (657255 10) PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 82 1 (I) by striking ‘‘$5,000’’ and in- 2 serting ‘‘$10,000’’; and 3 (II) by striking ‘‘$50,000’’ and 4 inserting ‘‘$100,000’’; 5 (ii) in subparagraph (B)— 6 (I) by striking ‘‘$50,000’’ and in- 7 serting ‘‘$100,000’’; and 8 (II) by striking ‘‘$250,000’’ and 9 inserting ‘‘$500,000’’; and 10 (iii) by striking subparagraph (C) and 11 inserting the following: 12 ‘‘(C) THIRD 13 ‘‘(i) IN GENERAL.—Notwithstanding 14 subparagraphs (A) and (B), the amount of 15 penalty for each such violation shall not 16 exceed the amount specified in clause (ii) 17 if— 18 ‘‘(I) the violation described in 19 paragraph (1) involved fraud, deceit, 20 manipulation, or deliberate or reckless 21 disregard of a regulatory requirement; 22 and 23 ‘‘(II) such violation directly or in- 24 directly resulted in substantial losses G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TIER.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 83 1 or created a significant risk of sub- 2 stantial losses to other persons. 3 ‘‘(ii) MAXIMUM 4 ALTY.—The 5 (i) is the greatest of— OF PEN- amount referred to in clause 6 ‘‘(I) $300,000 for a natural per- 7 son or $1,450,000 for any other per- 8 son; 9 ‘‘(II) 3 times the gross amount of 10 pecuniary gain to such defendant as a 11 result of the violation; or 12 ‘‘(III) the amount of losses in- 13 curred by victims as a result of the 14 violation.’’. 15 (b) PENALTIES FOR RECIDIVISTS.— 16 (1) SECURITIES 17 ACT OF 1933.— (A) MONEY PENALTIES IN ADMINISTRA- 18 TIVE ACTIONS.—Section 19 ties Act of 1933 (15 U.S.C. 77h–1(g)(2)) is 20 amended by adding at the end the following: 21 ‘‘(D) FOURTH 8A(g)(2) of the Securi- TIER.—Notwithstanding 22 subparagraphs (A), (B), and (C), the maximum 23 amount of penalty for each such act or omission 24 shall be 3 times the otherwise applicable 25 amount in such subparagraphs if, within the 5- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMOUNT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 84 1 year period preceding such act or omission, the 2 person who committed the act or omission was 3 criminally convicted for securities fraud or be- 4 came subject to a judgment or order imposing 5 monetary, equitable, or administrative relief in 6 any Commission action alleging fraud by that 7 person.’’. 8 (B) MONEY 9 TIONS.—Section IN CIVIL AC- 20(d)(2) of the Securities Act 10 of 1933 (15 U.S.C. 77t(d)(2)) is amended by 11 adding at the end the following: 12 ‘‘(D) FOURTH TIER.—Notwithstanding 13 subparagraphs (A), (B), and (C), the maximum 14 amount of penalty for each such violation shall 15 be 3 times the otherwise applicable amount in 16 such subparagraphs if, within the 5-year period 17 preceding such violation, the defendant was 18 criminally convicted for securities fraud or be- 19 came subject to a judgment or order imposing 20 monetary, equitable, or administrative relief in 21 any Commission action alleging fraud by that 22 defendant.’’. 23 (2) SECURITIES 24 TIONS.—Section G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 EXCHANGE ACT OF 1934.— (A) MONEY 25 VerDate 0ct 09 2002 PENALTIES Jkt 000000 PENALTIES IN CIVIL AC- 21(d)(3)(B) of the Securities (657255 10) PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 85 1 Exchange 2 78u(d)(3)(B)) is amended by adding at the end 3 the following: 4 of ‘‘(iv) 1934 FOURTH (15 U.S.C. TIER.—Notwith- 5 standing clauses (i), (ii), and (iii), the 6 maximum amount of penalty for each such 7 violation shall be 3 times the otherwise ap- 8 plicable amount in such clauses if, within 9 the 5-year period preceding such violation, 10 the defendant was criminally convicted for 11 securities fraud or became subject to a 12 judgment or order imposing monetary, eq- 13 uitable, or administrative relief in any 14 Commission action alleging fraud by that 15 defendant.’’. 16 (B) MONEY PENALTIES IN ADMINISTRA- 17 TIVE ACTIONS.—Section 18 ties Exchange Act of 1934 (15 U.S.C. 78u– 19 2(b)) is amended by adding at the end the fol- 20 lowing: 21 ‘‘(4) FOURTH 21B(b) of the Securi- TIER.—Notwithstanding para- 22 graphs (1), (2), and (3), the maximum amount of 23 penalty for each such act or omission shall be 3 24 times the otherwise applicable amount in such para- 25 graphs if, within the 5-year period preceding such G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 Act 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 86 1 act or omission, the person who committed the act 2 or omission was criminally convicted for securities 3 fraud or became subject to a judgment or order im- 4 posing monetary, equitable, or administrative relief 5 in any Commission action alleging fraud by that per- 6 son.’’. 7 (3) INVESTMENT 8 (A) MONEY 9 PENALTIES IN ADMINISTRA- TIVE ACTIONS.—Section 9(d)(2) of the Invest- 10 ment Company Act of 1940 (15 U.S.C. 80a– 11 9(d)(2)) is amended by adding at the end the 12 following: 13 ‘‘(D) FOURTH TIER.—Notwithstanding 14 subparagraphs (A), (B), and (C), the maximum 15 amount of penalty for each such act or omission 16 shall be 3 times the otherwise applicable 17 amount in such subparagraphs if, within the 5- 18 year period preceding such act or omission, the 19 person who committed the act or omission was 20 criminally convicted for securities fraud or be- 21 came subject to a judgment or order imposing 22 monetary, equitable, or administrative relief in 23 any Commission action alleging fraud by that 24 person.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COMPANY ACT OF 1940.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 87 1 (B) MONEY IN CIVIL AC- 2 TIONS.—Section 3 Company Act of 1940 (15 U.S.C. 80a– 4 41(e)(2)) is amended by adding at the end the 5 following: 6 ‘‘(D) 42(e)(2) of the Investment FOURTH TIER.—Notwithstanding 7 subparagraphs (A), (B), and (C), the maximum 8 amount of penalty for each such violation shall 9 be 3 times the otherwise applicable amount in 10 such subparagraphs if, within the 5-year period 11 preceding such violation, the defendant was 12 criminally convicted for securities fraud or be- 13 came subject to a judgment or order imposing 14 monetary, equitable, or administrative relief in 15 any Commission action alleging fraud by that 16 defendant.’’. 17 (4) INVESTMENT 18 (A) MONEY ADVISERS ACT OF 1940.— PENALTIES IN ADMINISTRA- 19 TIVE ACTIONS.—Section 20 ment Advisers Act of 1940 (15 U.S.C. 80b– 21 3(i)(2)) is amended by adding at the end the 22 following: 23 ‘‘(D) FOURTH 203(i)(2) of the Invest- TIER.—Notwithstanding 24 subparagraphs (A), (B), and (C), the maximum 25 amount of penalty for each such act or omission G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PENALTIES 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 88 1 shall be 3 times the otherwise applicable 2 amount in such subparagraphs if, within the 5- 3 year period preceding such act or omission, the 4 person who committed the act or omission was 5 criminally convicted for securities fraud or be- 6 came subject to a judgment or order imposing 7 monetary, equitable, or administrative relief in 8 any Commission action alleging fraud by that 9 person.’’. 10 (B) MONEY IN CIVIL AC- 11 TIONS.—Section 12 Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) 13 is amended by adding at the end the following: 14 ‘‘(D) 209(e)(2) of the Investment FOURTH TIER.—Notwithstanding 15 subparagraphs (A), (B), and (C), the maximum 16 amount of penalty for each such violation shall 17 be 3 times the otherwise applicable amount in 18 such subparagraphs if, within the 5-year period 19 preceding such violation, the defendant was 20 criminally convicted for securities fraud or be- 21 came subject to a judgment or order imposing 22 monetary, equitable, or administrative relief in 23 any Commission action alleging fraud by that 24 defendant.’’. 25 (c) VIOLATIONS OF INJUNCTIONS AND BARS.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PENALTIES 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 89 1 (1) SECURITIES 20(d) of 2 the Securities Act of 1933 (15 U.S.C. 77t(d)) is 3 amended— 4 (A) in paragraph (1), by inserting after 5 ‘‘the rules or regulations thereunder,’’ the fol- 6 lowing: ‘‘a Federal court injunction or a bar ob- 7 tained or entered by the Commission under this 8 title,’’; and 9 (B) by striking paragraph (4) and insert- 10 ing the following: 11 ‘‘(4) SPECIAL 12 PROVISIONS RELATING TO A VIO- LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 13 ‘‘(A) IN GENERAL.—Each separate viola- 14 tion of an injunction or order described in sub- 15 paragraph (B) shall be a separate offense, ex- 16 cept that in the case of a violation through a 17 continuing failure to comply with such injunc- 18 tion or order, each day of the failure to comply 19 with the injunction or order shall be deemed a 20 separate offense. 21 ‘‘(B) INJUNCTIONS AND ORDERS.—Sub- 22 paragraph (A) shall apply with respect to any 23 action to enforce— 24 ‘‘(i) a Federal court injunction ob- 25 tained pursuant to this title; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ACT OF 1933.—Section 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 90 1 ‘‘(ii) an order entered or obtained by 2 the Commission pursuant to this title that 3 bars, suspends, places limitations on the 4 activities or functions of, or prohibits the 5 activities of, a person; or 6 ‘‘(iii) a cease-and-desist order entered 7 by the Commission pursuant to section 8 8A.’’. 9 (2) SECURITIES 10 tion 21(d)(3) of the Securities Exchange Act of 11 1934 (15 U.S.C. 78u(d)(3)) is amended— 12 (A) in subparagraph (A), by inserting after 13 ‘‘the rules or regulations thereunder,’’ the fol- 14 lowing: ‘‘a Federal court injunction or a bar ob- 15 tained or entered by the Commission under this 16 title,’’; and 17 (B) by striking subparagraph (D) and in- 18 serting the following: 19 ‘‘(D) SPECIAL 20 PROVISIONS RELATING TO A VIO- LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 21 ‘‘(i) IN GENERAL.—Each separate violation 22 of an injunction or order described in clause (ii) 23 shall be a separate offense, except that in the 24 case of a violation through a continuing failure 25 to comply with such injunction or order, each G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EXCHANGE ACT OF 1934.—Sec- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 91 1 day of the failure to comply with the injunction 2 or order shall be deemed a separate offense. 3 ‘‘(ii) INJUNCTIONS 4 (i) shall apply with respect to an action to en- 5 force— 6 ‘‘(I) a Federal court injunction ob- 7 tained pursuant to this title; 8 ‘‘(II) an order entered or obtained by 9 the Commission pursuant to this title that 10 bars, suspends, places limitations on the 11 activities or functions of, or prohibits the 12 activities of, a person; or 13 ‘‘(III) a cease-and-desist order entered 14 by the Commission pursuant to section 15 21C.’’. 16 (3) INVESTMENT COMPANY ACT OF 1940.—Sec- 17 tion 42(e) of the Investment Company Act of 1940 18 (15 U.S.C. 80a–41(e)) is amended— 19 (A) in paragraph (1), by inserting after 20 ‘‘the rules or regulations thereunder,’’ the fol- 21 lowing: ‘‘a Federal court injunction or a bar ob- 22 tained or entered by the Commission under this 23 title,’’; and 24 (B) by striking paragraph (4) and insert- 25 ing the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND ORDERS.—Clause 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 92 1 2 ‘‘(4) SPECIAL LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 3 ‘‘(A) IN GENERAL.—Each separate viola- 4 tion of an injunction or order described in sub- 5 paragraph (B) shall be a separate offense, ex- 6 cept that in the case of a violation through a 7 continuing failure to comply with such injunc- 8 tion or order, each day of the failure to comply 9 with the injunction or order shall be deemed a 10 separate offense. 11 ‘‘(B) INJUNCTIONS AND ORDERS.—Sub- 12 paragraph (A) shall apply with respect to any 13 action to enforce— 14 ‘‘(i) a Federal court injunction ob- 15 tained pursuant to this title; 16 ‘‘(ii) an order entered or obtained by 17 the Commission pursuant to this title that 18 bars, suspends, places limitations on the 19 activities or functions of, or prohibits the 20 activities of, a person; or 21 ‘‘(iii) a cease-and-desist order entered 22 by the Commission pursuant to section 23 9(f).’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PROVISIONS RELATING TO A VIO- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 93 1 (4) INVESTMENT 2 tion 209(e) of the Investment Advisers Act of 1940 3 (15 U.S.C. 80b–9(e)) is amended— 4 (A) in paragraph (1), by inserting after 5 ‘‘the rules or regulations thereunder,’’ the fol- 6 lowing: ‘‘a Federal court injunction or a bar ob- 7 tained or entered by the Commission under this 8 title,’’; and 9 (B) by striking paragraph (4) and insert- 10 ing the following: 11 ‘‘(4) SPECIAL 12 PROVISIONS RELATING TO A VIO- LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 13 ‘‘(A) IN GENERAL.—Each separate viola- 14 tion of an injunction or order described in sub- 15 paragraph (B) shall be a separate offense, ex- 16 cept that in the case of a violation through a 17 continuing failure to comply with such injunc- 18 tion or order, each day of the failure to comply 19 with the injunction or order shall be deemed a 20 separate offense. 21 ‘‘(B) INJUNCTIONS AND ORDERS.—Sub- 22 paragraph (A) shall apply with respect to any 23 action to enforce— 24 ‘‘(i) a Federal court injunction ob- 25 tained pursuant to this title; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ADVISERS ACT OF 1940.—Sec- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 94 1 ‘‘(ii) an order entered or obtained by 2 the Commission pursuant to this title that 3 bars, suspends, places limitations on the 4 activities or functions of, or prohibits the 5 activities of, a person; or 6 ‘‘(iii) a cease-and-desist order entered 7 by the Commission pursuant to section 8 203(k).’’. 9 (d) EFFECTIVE DATE.—The amendments made by 10 this section shall apply with respect to conduct that occurs 11 after the date of the enactment of this Act. 12 SEC. 212. UPDATED CIVIL MONEY PENALTIES OF PUBLIC 13 14 COMPANY ACCOUNTING OVERSIGHT BOARD. (a) IN GENERAL.—Section 105(c)(4)(D) of the Sar- 15 banes-Oxley Act of 2002 (15 U.S.C. 7215(c)(4)(D)) is 16 amended— 17 (1) in clause (i)— 18 (A) by striking ‘‘$100,000’’ and inserting 19 ‘‘$200,000’’; and 20 (B) by striking ‘‘$2,000,000’’ and insert- 21 ing ‘‘$4,000,000’’; and 22 (2) in clause (ii)— 23 (A) by striking ‘‘$750,000’’ and inserting 24 ‘‘$1,500,000’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 95 1 (B) by striking ‘‘$15,000,000’’ and insert- 2 3 ing ‘‘$22,000,000’’. (b) EFFECTIVE DATE.—The amendments made by 4 this section shall apply with respect to conduct that occurs 5 after the date of the enactment of this Act. 6 SEC. 213. UPDATED CIVIL MONEY PENALTY FOR CONTROL- 7 LING PERSONS IN CONNECTION WITH IN- 8 SIDER TRADING. 9 (a) IN GENERAL.—Section 21A(a)(3) of the Securi- 10 ties Exchange Act of 1934 (15 U.S.C. 78u–1(a)(3)) is 11 amended by striking ‘‘$1,000,000’’ and inserting 12 ‘‘$2,500,000’’. 13 (b) EFFECTIVE DATE.—The amendment made by 14 this section shall apply with respect to conduct that occurs 15 after the date of the enactment of this Act. 16 17 SEC. 214. UPDATE OF CERTAIN OTHER PENALTIES. (a) IN GENERAL.—Section 32 of the Securities Ex- 18 change Act of 1934 (15 U.S.C. 78ff) is amended— 19 (1) in subsection (a), by striking ‘‘$5,000,000’’ 20 and inserting ‘‘$7,000,000’’; and 21 (2) in subsection (c)— 22 (A) in paragraph (1)— 23 (i) in subparagraph (A), by striking 24 ‘‘$2,000,000’’ and inserting ‘‘$4,000,000’’; 25 and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 96 1 (ii) in subparagraph (B), by striking 2 ‘‘$10,000’’ and inserting ‘‘$50,000’’; and 3 (B) in paragraph (2)— 4 (i) in subparagraph (A), by striking 5 ‘‘$100,000’’ and inserting ‘‘$250,000’’; 6 and 7 (ii) in subparagraph (B), by striking 8 9 ‘‘$10,000’’ and inserting ‘‘$50,000’’. (b) EFFECTIVE DATE.—The amendments made by 10 this section shall apply with respect to conduct that occurs 11 after the date of the enactment of this Act. 12 SEC. 215. MONETARY SANCTIONS TO BE USED FOR THE RE- 13 14 LIEF OF VICTIMS. (a) IN GENERAL.—Section 308(a) of the Sarbanes- 15 Oxley Act of 2002 (15 U.S.C. 7246(a)) is amended to read 16 as follows: 17 ‘‘(a) MONETARY SANCTIONS TO BE USED FOR THE 18 RELIEF OF VICTIMS.— 19 ‘‘(1) IN in any judicial or ad- 20 ministrative action brought by the Commission 21 under the securities laws, the Commission obtains a 22 monetary sanction (as defined in section 21F(a) of 23 the Securities Exchange Act of 1934) against any 24 person for a violation of such laws, or such person 25 agrees, in settlement of any such action, to such G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—If, 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 97 1 monetary sanction, the amount of such monetary 2 sanction shall, on the motion or at the direction of 3 the Commission, be added to and become part of a 4 disgorgement fund or other fund established for the 5 benefit of the victims of such violation. 6 ‘‘(2) DEFINITION OF VICTIM.—In this sub- 7 section, the term ‘victim’ has the meaning given the 8 term ‘crime victim’ in section 3771(e) of title 18, 9 United States Code.’’. 10 (b) MONETARY SANCTION DEFINED.—Section 11 21F(a)(4)(A) of the Securities Exchange Act of 1934 (15 12 U.S.C. 78u–6(a)(4)(A)) is amended by striking ‘‘ordered’’ 13 and inserting ‘‘required’’. 14 (c) EFFECTIVE DATE.—The amendments made by 15 this section apply with respect to any monetary sanction 16 ordered or required to be paid before or after the date 17 of enactment of this Act. 18 SEC. 216. GAO REPORT ON USE OF CIVIL MONEY PENALTY 19 20 AUTHORITY BY COMMISSION. (a) IN GENERAL.—Not later than 2 years after the 21 date of the enactment of this Act, the Comptroller General 22 of the United States shall submit to the Committee on 23 Financial Services of the House of Representatives and 24 the Committee on Banking, Housing, and Urban Affairs 25 of the Senate a report on the use by the Commission of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 98 1 the authority to impose or obtain civil money penalties for 2 violations of the securities laws during the period begin3 ning on June 1, 2010, and ending on the date of the en4 actment of this Act. 5 (b) MATTERS REQUIRED TO BE INCLUDED.—The 6 matters covered by the report required by subsection (a) 7 shall include the following: 8 9 (1) The types of violations for which civil money penalties were imposed or obtained. 10 (2) The types of persons on whom civil money 11 penalties were imposed or from whom such penalties 12 were obtained. 13 (3) The number and dollar amount of civil 14 money penalties imposed or obtained, disaggregated 15 as follows: 16 (A) Penalties imposed in administrative ac- 17 tions and penalties obtained in judicial actions. 18 (B) Penalties imposed on or obtained from 19 issuers (individual and aggregate filers) and 20 penalties imposed on or obtained from other 21 persons. 22 (C) Penalties permitted to be retained for 23 use by the Commission and penalties deposited 24 in the general fund of the Treasury of the 25 United States. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 99 1 2 (4) For penalties imposed on or obtained from issuers: 3 (A) Whether the violations involved re- 4 sulted in direct economic benefit to the issuers. 5 (B) The impact of the penalties on the 6 7 shareholders of the issuers. (c) DEFINITIONS.—In this section, the terms ‘‘Com- 8 mission’’, ‘‘issuer’’, and ‘‘securities laws’’ have the mean9 ings given such terms in section 3(a) of the Securities Ex10 change Act of 1934 (15 U.S.C. 78c(a)). 12 Subtitle B—FIRREA Penalties Modernization 13 SECTION 221. INCREASE OF CIVIL AND CRIMINAL PEN- 14 ALTIES ORIGINALLY ESTABLISHED IN THE FI- 15 NANCIAL 16 ERY, AND ENFORCEMENT ACT OF 1989. 11 17 (a) AMENDMENTS INSTITUTIONS TO REFORM, RECOV- FIRREA.— Section 951(b) of 18 the Financial Institutions Reform, Recovery, and Enforce19 ment Act of 1989 (12 U.S.C. 1833a(b)) is amended— 20 21 (1) in paragraph (1), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 22 (2) in paragraph (2), by striking ‘‘$1,000,000 23 per day or $5,000,000’’ and inserting ‘‘$1,500,000 24 per day or $7,500,000’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 100 1 (b) AMENDMENTS TO THE HOME OWNERS’ LOAN 2 ACT.—The Home Owners’ Loan Act (12 U.S.C. 1461 et 3 seq.) is amended— 4 5 (1) in section 5(v)(6), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 6 (2) in section 10— 7 (A) in subsection (r)(3), by striking 8 ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 9 (B) in subsection (i)(1)(B), by striking 10 11 12 ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. (c) AMENDMENTS SURANCE TO THE FEDERAL DEPOSIT IN- ACT.—The Federal Deposit Insurance Act (12 13 U.S.C. 1811 et seq.) is amended— 14 (1) in section 7— 15 (A) in subsection (a)(1), by striking 16 ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 17 (B) in subsection (j)(16)(D), by striking 18 ‘‘$1,000,000’’ each place such term appears 19 and inserting ‘‘$1,500,000’’; 20 (2) in section 8— 21 (A) in subsection (i)(2)(D), by striking 22 ‘‘$1,000,000’’ each place such term appears 23 and inserting ‘‘$1,500,000’’; and 24 (B) 25 15:00 Apr 19, 2017 subsection (j), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in Jkt 000000 (657255 10) PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 101 1 (3) in section 19(b), by striking ‘‘$1,000,000’’ 2 and inserting ‘‘$1,500,000’’. 3 (d) AMENDMENTS TO THE FEDERAL CREDIT UNION 4 ACT.—The Federal Credit Union Act (12 U.S.C. 1751 et 5 seq.) is amended— 6 (1) 7 in section 202(a)(3), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 8 (2) 9 in section 205(d)(3), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 10 (3) in section 206— 11 (A) in subsection (k)(2)(D), by striking 12 ‘‘$1,000,000’’ each place such term appears 13 and inserting ‘‘$1,500,000’’; and 14 (B) 15 subsection (l), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 16 17 in (e) AMENDMENTS THE TO THE REVISED STATUTES OF UNITED STATES.—Title LXII of the Revised Stat- 18 utes of the United States is amended— 19 20 (1) section 5213(c), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 21 (2) in section 5239(b)(4), by striking 22 ‘‘$1,000,000’’ each place such term appears and in- 23 serting ‘‘$1,500,000’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 102 1 (f) AMENDMENTS TO THE FEDERAL RESERVE 2 ACT.—The Federal Reserve Act (12 U.S.C. 221 et seq.) 3 is amended— 4 (1) in the 6th undesignated paragraph of sec- 5 tion 9, by striking ‘‘$1,000,000’’ and inserting 6 ‘‘$1,500,000’’; 7 (2) in section 19(l)(4), by striking 8 ‘‘$1,000,000’’ each place such term appears and in- 9 serting ‘‘$1,500,000’’; and 10 (3) in section 29(d), by striking ‘‘$1,000,000’’ 11 each 12 ‘‘$1,500,000’’. 13 (g) AMENDMENTS TO THE BANK HOLDING COMPANY place such term appears and inserting 14 ACT AMENDMENTS OF 1970.—Section 106(b)(2)(F)(iv) of 15 the Bank Holding Company Act Amendments of 1970 (12 16 U.S.C. 1978(b)(2)(F)(iv)) is amended by striking 17 ‘‘$1,000,000’’ each place such term appears and inserting 18 ‘‘$1,500,000’’. 19 (h) AMENDMENTS TO THE BANK HOLDING COMPANY 20 ACT OF 1956.—Section 8 of the Bank Holding Company 21 Act of 1956 (12 U.S.C. 1847) is amended— 22 23 (1) (2) 15:00 Apr 19, 2017 (a)(2), by striking in subsection (d)(3), by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 subsection ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 24 25 in Jkt 000000 (657255 10) PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 103 1 (i) AMENDMENTS TO TITLE 18, UNITED STATES 2 CODE.—Title 18, United States Code, is amended— 3 4 (1) in section 215(a) of chapter 11, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 5 (2) in chapter 31— 6 (A) 7 section 656, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 8 (B) 9 in section 657, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 10 (3) in chapter 47— 11 (A) 12 in section 1005, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 13 (B) 14 in section 1006, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 15 (C) 16 in section 1007, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 17 (D) in section 1014, by striking 18 ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 19 (4) in chapter 63— 20 (A) 21 (B) 23 section 1341, by striking in section 1343, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 24 (C) 25 in section 1344, by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 in ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 22 VerDate 0ct 09 2002 in Jkt 000000 (657255 10) PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 104 6 TITLE III—DEMANDING ACCOUNTABILITY FROM FINANCIAL REGULATORS AND DEVOLVING POWER AWAY FROM WASHINGTON Subtitle A—Cost-Benefit Analyses 7 SEC. 311. DEFINITIONS. 1 2 3 4 5 8 As used in this subtitle— 9 (1) the term ‘‘agency’’ means the Board of Gov- 10 ernors of the Federal Reserve System, the Consumer 11 Law Enforcement Agency, the Commodity Futures 12 Trading Commission, the Federal Deposit Insurance 13 Corporation, the Federal Housing Finance Agency, 14 the Office of the Comptroller of the Currency, the 15 National Credit Union Administration, and the Se- 16 curities and Exchange Commission; 17 (2) the term ‘‘chief economist’’ means— 18 (A) with respect to the Board of Governors 19 of the Federal Reserve System, the Director of 20 the Division of Research and Statistics, or an 21 employee of the agency with comparable author- 22 ity; 23 (B) with respect to the Consumer Law En- 24 forcement Agency, the Head of the Office of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 105 1 Economic Analysis, or an employee of the agen- 2 cy with comparable authority; 3 (C) with respect to the Commodity Fu- 4 tures Trading Commission, the Chief Econo- 5 mist, or an employee of the agency with com- 6 parable authority; 7 (D) with respect to the Federal Deposit 8 Insurance Corporation, the Director of the Divi- 9 sion of Insurance and Research, or an employee 10 of the agency with comparable authority; 11 (E) with respect to the Federal Housing 12 Finance Agency, the Chief Economist, or an 13 employee of the agency with comparable author- 14 ity; 15 (F) with respect to the Office of the Comp- 16 troller of the Currency, the Director for Policy 17 Analysis, or an employee of the agency with 18 comparable authority; 19 (G) with respect to the National Credit 20 Union Administration, the Chief Economist, or 21 an employee of the agency with comparable au- 22 thority; and 23 (H) with respect to the Securities and Ex- 24 change Commission, the Director of the Divi- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 106 1 sion of Economic and Risk Analysis, or an em- 2 ployee of the agency with comparable authority; 3 (3) the term ‘‘Council’’ means the Chief Econo- 4 mists Council established under section 318; and 5 (4) the term ‘‘regulation’’— 6 (A) means an agency statement of general 7 applicability and future effect that is designed 8 to implement, interpret, or prescribe law or pol- 9 icy or to describe the procedure or practice re- 10 quirements of an agency, including rules, orders 11 of general applicability, interpretive releases, 12 and other statements of general applicability 13 that the agency intends to have the force and 14 effect of law; and 15 (B) does not include— 16 (i) a regulation issued in accordance 17 with the formal rulemaking provisions of 18 section 556 or 557 of title 5, United States 19 Code; 20 (ii) a regulation that is limited to 21 agency organization, management, or per- 22 sonnel matters; 23 (iii) a regulation promulgated pursu- 24 ant to statutory authority that expressly 25 prohibits compliance with this provision; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 107 1 (iv) a regulation that is certified by 2 the agency to be an emergency action, if 3 such certification is published in the Fed- 4 eral Register; 5 (v) a regulation that is promulgated 6 by the Board of Governors of the Federal 7 Reserve System or the Federal Open Mar- 8 ket Committee under section 10A, 10B, 9 13, 13A, or 19 of the Federal Reserve Act, 10 or any of subsections (a) through (f) of 11 section 14 of that Act; or 12 (vi) a regulation filed with the Com- 13 mission by the Public Company Accounting 14 Oversight Board, the Municipal Securities 15 Rulemaking Board, or any national securi- 16 ties association registered under section 17 15A of the Securities Exchange Act of 18 1934 (15 U.S.C. 78o–4(a)) for which the 19 board or association has itself conducted 20 the cost-benefit analysis and otherwise 21 complied with the requirements of section 22 312. 23 24 SEC. 312. REQUIRED REGULATORY ANALYSIS. (a) REQUIREMENTS FOR NOTICES OF PROPOSED 25 RULEMAKING.—An agency may not issue a notice of pro- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00107 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 108 1 posed rulemaking unless the agency includes in the notice 2 of proposed rulemaking an analysis that contains, at a 3 minimum, with respect to each regulation that is being 4 proposed— 5 (1) an identification of the need for the regula- 6 tion and the regulatory objective, including identi- 7 fication of the nature and significance of the market 8 failure, regulatory failure, or other problem that ne- 9 cessitates the regulation; 10 (2) an explanation of why the private market or 11 State, local, or tribal authorities cannot adequately 12 address the identified market failure or other prob- 13 lem; 14 (3) an analysis of the adverse impacts to regu- 15 lated entities, other market participants, economic 16 activity, or agency effectiveness that are engendered 17 by the regulation and the magnitude of such adverse 18 impacts; 19 (4) a quantitative and qualitative assessment of 20 all anticipated direct and indirect costs and benefits 21 of the regulation (as compared to a benchmark that 22 assumes the absence of the regulation), including— 23 (A) compliance costs; 24 (B) effects on economic activity, net job 25 creation (excluding jobs related to ensuring G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 109 1 compliance with the regulation), efficiency, com- 2 petition, and capital formation; 3 (C) regulatory administrative costs; and 4 (D) costs imposed by the regulation on 5 State, local, or tribal governments or other reg- 6 ulatory authorities; 7 (5) if quantified benefits do not outweigh quan- 8 titative costs, a justification for the regulation; 9 (6) an identification and assessment of all avail- 10 able alternatives to the regulation, including modi- 11 fication of an existing regulation or statute, together 12 with— 13 (A) an explanation of why the regulation 14 meets the objectives of the regulation more ef- 15 fectively than the alternatives, and if the agency 16 is proposing multiple alternatives, an expla- 17 nation of why a notice of proposed rulemaking, 18 rather than an advanced notice of proposed 19 rulemaking, is appropriate; and 20 (B) if the regulation is not a pilot pro- 21 gram, an explanation of why a pilot program is 22 not appropriate; 23 (7) if the regulation specifies the behavior or 24 manner of compliance, an explanation of why the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00109 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 110 1 agency did not instead specify performance objec- 2 tives; 3 (8) an assessment of how the burden imposed 4 by the regulation will be distributed among market 5 participants, including whether consumers, investors, 6 small businesses, or independent financial firms and 7 advisors will be disproportionately burdened; 8 (9) an assessment of the extent to which the 9 regulation is inconsistent, incompatible, or duplica- 10 tive with the existing regulations of the agency or 11 those of other domestic and international regulatory 12 authorities with overlapping jurisdiction; 13 14 (10) a description of any studies, surveys, or other data relied upon in preparing the analysis; 15 (11) an assessment of the degree to which the 16 key assumptions underlying the analysis are subject 17 to uncertainty; and 18 (12) an explanation of predicted changes in 19 market structure and infrastructure and in behavior 20 by market participants, including consumers and in- 21 vestors, assuming that they will pursue their eco- 22 nomic interests. 23 (b) REQUIREMENTS 24 15:00 Apr 19, 2017 NOTICES OF FINAL RULE- MAKING.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FOR Jkt 000000 (657255 10) PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 111 1 (1) IN any other 2 provision of law, an agency may not issue a notice 3 of final rulemaking with respect to a regulation un- 4 less the agency— 5 (A) has issued a notice of proposed rule- 6 making for the relevant regulation; 7 (B) has conducted and includes in the no- 8 tice of final rulemaking an analysis that con- 9 tains, at a minimum, the elements required 10 under subsection (a); and 11 (C) includes in the notice of final rule- 12 making regulatory impact metrics selected by 13 the chief economist to be used in preparing the 14 report required pursuant to section 315. 15 (2) CONSIDERATION OF COMMENTS.—The 16 agency shall incorporate in the elements described in 17 paragraph (1)(B) the data and analyses provided to 18 the agency by commenters during the comment pe- 19 riod, or explain why the data or analyses are not 20 being incorporated. 21 (3) COMMENT PERIOD.—An agency shall not 22 publish a notice of final rulemaking with respect to 23 a regulation, unless the agency— 24 (A) has allowed at least 90 days from the 25 date of publication in the Federal Register of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Notwithstanding 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 112 1 the notice of proposed rulemaking for the sub- 2 mission of public comments; or 3 (B) includes in the notice of final rule- 4 making an explanation of why the agency was 5 not able to provide a 90-day comment period. 6 (4) PROHIBITED 7 (A) IN GENERAL.—An agency may not 8 publish a notice of final rulemaking if the agen- 9 cy, in its analysis under paragraph (1)(B), de- 10 termines that the quantified costs are greater 11 than the quantified benefits under subsection 12 (a)(5). 13 (B) PUBLICATION OF ANALYSIS.—If the 14 agency is precluded by subparagraph (A) from 15 publishing a notice of final rulemaking, the 16 agency shall publish in the Federal Register 17 and on the public website of the agency its 18 analysis under paragraph (1)(B), and provide 19 the analysis to each House of Congress. 20 (C) CONGRESSIONAL WAIVER.—If the 21 agency is precluded by subparagraph (A) from 22 publishing a notice of final rulemaking, Con- 23 gress, by joint resolution pursuant to the proce- 24 dures set forth for joint resolutions in section 25 802 of title 5, United States Code, may direct G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RULES.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 113 1 the agency to publish a notice of final rule- 2 making notwithstanding the prohibition con- 3 tained in subparagraph (A). In applying section 4 802 of title 5, United States Code, for purposes 5 of this paragraph, section 802(e)(2) shall not 6 apply and the terms— 7 (i) ‘‘joint resolution’’ or ‘‘joint resolu- 8 tion described in subsection (a)’’ means 9 only a joint resolution introduced during 10 the period beginning on the submission or 11 publication date and ending 60 days there- 12 after (excluding days either House of Con- 13 gress is adjourned for more than 3 days 14 during a session of Congress), the matter 15 after the resolving clause of which is as fol- 16 lows: ‘‘That Congress directs, notwith- 17 standing the prohibition contained in sec- 18 tion 19 CHOICE Act of 2017, the ll to publish 20 the notice of final rulemaking for the regu- 21 lation or regulations that were the subject 22 of the analysis submitted by the ll to 23 Congress on ll.’’ (The blank spaces 24 being appropriately filled in.); and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 312(b)(4)(A) of the Financial (657255 10) PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 114 1 (ii) ‘‘submission or publication date’’ 2 means— 3 (I) the date on which the analysis 4 under paragraph (1)(B) is submitted 5 to Congress under paragraph (4)(B); 6 or 7 (II) if the analysis is submitted 8 to Congress less than 60 session days 9 or 60 legislative days before the date 10 on which the Congress adjourns a ses- 11 sion of Congress, the date on which 12 the same or succeeding Congress first 13 convenes its next session. 14 15 SEC. 313. RULE OF CONSTRUCTION. For purposes of the Paperwork Reduction Act (44 16 U.S.C. 3501 et seq.), obtaining, causing to be obtained, 17 or soliciting information for purposes of complying with 18 section 312 with respect to a proposed rulemaking shall 19 not be construed to be a collection of information, provided 20 that the agency has first issued an advanced notice of pro21 posed rulemaking in connection with the regulation, iden22 tifies that advanced notice of proposed rulemaking in its 23 solicitation of information, and informs the person from 24 whom the information is obtained or solicited that the pro25 vision of information is voluntary. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 115 1 SEC. 314. PUBLIC AVAILABILITY OF DATA AND REGU- 2 3 LATORY ANALYSIS. (a) IN GENERAL.—At or before the commencement 4 of the public comment period with respect to a regulation, 5 the agency shall make available on its public website suffi6 cient information about the data, methodologies, and as7 sumptions underlying the analyses performed pursuant to 8 section 312 so that the analytical results of the agency 9 are capable of being substantially reproduced, subject to 10 an acceptable degree of imprecision or error. 11 (b) CONFIDENTIALITY.—The agency shall comply 12 with subsection (a) in a manner that preserves the con13 fidentiality of nonpublic information, including confiden14 tial trade secrets, confidential commercial or financial in15 formation, and confidential information about positions, 16 transactions, or business practices. 17 18 SEC. 315. FIVE-YEAR REGULATORY IMPACT ANALYSIS. (a) IN GENERAL.—Not later than 5 years after the 19 date of publication in the Federal Register of a notice of 20 final rulemaking, the chief economist of the agency shall 21 issue a report that examines the economic impact of the 22 subject regulation, including the direct and indirect costs 23 and benefits of the regulation. 24 (b) REGULATORY IMPACT METRICS.—In preparing 25 the report required by subsection (a), the chief economist 26 shall employ the regulatory impact metrics included in the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 116 1 notice of final rulemaking pursuant to section 2 312(b)(1)(C). 3 (c) REPRODUCIBILITY.—The report shall include the 4 data, methodologies, and assumptions underlying the eval5 uation so that the agency’s analytical results are capable 6 of being substantially reproduced, subject to an acceptable 7 degree of imprecision or error. 8 (d) CONFIDENTIALITY.—The agency shall comply 9 with subsection (c) in a manner that preserves the con10 fidentiality of nonpublic information, including confiden11 tial trade secrets, confidential commercial or financial in12 formation, and confidential information about positions, 13 transactions, or business practices. 14 (e) REPORT.—The agency shall submit the report re- 15 quired by subsection (a) to the Committee on Banking, 16 Housing, and Urban Affairs of the Senate and the Com17 mittee on Financial Services of the House of Representa18 tives and post it on the public website of the agency. The 19 Commodity Futures Trading Commission shall also sub20 mit its report to the Committee on Agriculture, Nutrition, 21 and Forestry of the Senate and the Committee on Agri22 culture of the House of Representatives. 23 24 SEC. 316. RETROSPECTIVE REVIEW OF EXISTING RULES. (a) REGULATORY IMPROVEMENT PLAN.—Not later 25 than 1 year after the date of enactment of this Act and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00116 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 117 1 every 5 years thereafter, each agency shall develop, submit 2 to the Committee on Banking, Housing, and Urban Af3 fairs of the Senate and the Committee on Financial Serv4 ices of the House of Representatives, and post on the pub5 lic website of the agency a plan, consistent with law and 6 its resources and regulatory priorities, under which the 7 agency will modify, streamline, expand, or repeal existing 8 regulations so as to make the regulatory program of the 9 agency more effective or less burdensome in achieving the 10 regulatory objectives. The Commodity Futures Trading 11 Commission shall also submit its plan to the Committee 12 on Agriculture, Nutrition, and Forestry of the Senate and 13 the Committee on Agriculture of the House of Representa14 tives. 15 (b) IMPLEMENTATION PROGRESS REPORT.—Two 16 years after the date of submission of each plan required 17 under subsection (a), each agency shall develop, submit 18 to the Committee on Banking, Housing, and Urban Af19 fairs of the Senate and the Committee on Financial Serv20 ices of the House of Representatives, and post on the pub21 lic website of the agency a report of the steps that it has 22 taken to implement the plan, steps that remain to be taken 23 to implement the plan, and, if any parts of the plan will 24 not be implemented, reasons for not implementing those 25 parts of the plan. The Commodity Futures Trading Com- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00117 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 118 1 mission shall also submit its plan to the Committee on 2 Agriculture, Nutrition, and Forestry of the Senate and the 3 Committee on Agriculture of the House of Representa4 tives. 5 6 SEC. 317. JUDICIAL REVIEW. (a) IN GENERAL.—Notwithstanding any other provi- 7 sion of law, during the period beginning on the date on 8 which a notice of final rulemaking for a regulation is pub9 lished in the Federal Register and ending 1 year later, 10 a person that is adversely affected or aggrieved by the reg11 ulation is entitled to bring an action in the United States 12 Court of Appeals for the District of Columbia Circuit for 13 judicial review of agency compliance with the requirements 14 of section 312. 15 (b) STAY.—The court may stay the effective date of 16 the regulation or any provision thereof. 17 (c) RELIEF.—If the court finds that an agency has 18 not complied with the requirements of section 312, the 19 court shall vacate the subject regulation, unless the agency 20 shows by clear and convincing evidence that vacating the 21 regulation would result in irreparable harm. Nothing in 22 this section affects other limitations on judicial review or 23 the power or duty of the court to dismiss any action or 24 deny relief on any other appropriate legal or equitable 25 ground. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 119 1 2 SEC. 318. CHIEF ECONOMISTS COUNCIL. (a) ESTABLISHMENT.—There is established the Chief 3 Economists Council. 4 (b) MEMBERSHIP.—The Council shall consist of the 5 chief economist of each agency. The members of the Coun6 cil shall select the first chairperson of the Council. There7 after the position of Chairperson shall rotate annually 8 among the members of the Council. 9 (c) MEETINGS.—The Council shall meet at the call 10 of the Chairperson, but not less frequently than quarterly. 11 (d) REPORT.—One year after the effective date of 12 this Act and annually thereafter, the Council shall prepare 13 and submit to the Committee on Banking, Housing, and 14 Urban Affairs and the Committee on Agriculture, Nutri15 tion, and Forestry of the Senate and the Committee on 16 Financial Services and the Committee on Agriculture of 17 the House of Representatives a report on— 18 19 (1) the benefits and costs of regulations adopted by the agencies during the past 12 months; 20 21 (2) the regulatory actions planned by the agencies for the upcoming 12 months; 22 (3) the cumulative effect of the existing regula- 23 tions of the agencies on economic activity, innova- 24 tion, international competitiveness of entities regu- 25 lated by the agencies, and net job creation (exclud- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 120 1 ing jobs related to ensuring compliance with the reg- 2 ulation); 3 (4) the training and qualifications of the per- 4 sons who prepared the cost-benefit analyses of each 5 agency during the past 12 months; 6 (5) the sufficiency of the resources available to 7 the chief economists during the past 12 months for 8 the conduct of the activities required by this subtitle; 9 and 10 (6) recommendations for legislative or regu- 11 latory action to enhance the efficiency and effective- 12 ness of financial regulation in the United States. 13 14 SEC. 319. CONFORMING AMENDMENTS. Section 15(a) of the Commodity Exchange Act (7 15 U.S.C. 19(a)) is amended— 16 (1) by striking paragraph (1); 17 (2) in paragraph (2), by striking ‘‘(2)’’ and all 18 that follows through ‘‘light of—’’ and inserting the 19 following: 20 ‘‘(1) CONSIDERATIONS.—Before promulgating a 21 regulation under this chapter or issuing an order 22 (except as provided in paragraph (2)), the Commis- 23 sion shall take into consideration—’’; 24 (3) in paragraph (1), as so redesignated— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 121 1 (A) in subparagraph (B), by striking ‘‘fu- 2 tures’’ and inserting ‘‘the relevant’’; 3 (B) in subparagraph (C), by adding ‘‘and’’ 4 at the end; 5 (C) in subparagraph (D), by striking ‘‘; 6 and’’ and inserting a period; and 7 (D) by striking subparagraph (E); and 8 (4) by redesignating paragraph (3) as para- 9 10 11 graph (2). SEC. 320. OTHER REGULATORY ENTITIES. Not later than 1 year after the date of enactment 12 of this Act, the Securities and Exchange Commission shall 13 provide to the Committee on Banking, Housing, and 14 Urban Affairs of the Senate and the Committee on Finan15 cial Services of the House of Representatives a report set16 ting forth a plan for subjecting the Public Company Ac17 counting Oversight Board, the Municipal Securities Rule18 making Board, and any national securities association reg19 istered under section 15A of the Securities Exchange Act 20 of 1934 (15 U.S.C. 78o–4(a)) to the requirements of this 21 subtitle, other than direct representation on the Council. 22 SEC. 321. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY 23 24 ANALYSES. An agency may perform the analyses required by this 25 subtitle in conjunction with, or as a part of, any other G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 122 1 agenda or analysis required by any other provision of law, 2 if such other analysis satisfies the provisions of this sub3 title. 6 Subtitle B—Congressional Review of Federal Financial Agency Rulemaking 7 SEC. 331. CONGRESSIONAL REVIEW. 4 5 8 (a)(1)(A) Before a rule may take effect, a Federal 9 financial agency shall publish in the Federal Register a 10 list of information on which the rule is based, including 11 data, scientific and economic studies, and cost-benefit 12 analyses, and identify how the public can access such in13 formation online, and shall submit to each House of the 14 Congress and to the Comptroller General a report con15 taining— 16 (i) a copy of the rule; 17 (ii) a concise general statement relating to the 18 rule; 19 (iii) a classification of the rule as a major or 20 nonmajor rule, including an explanation of the clas- 21 sification specifically addressing each criteria for a 22 major rule contained within subparagraphs (A) 23 through (C) of section 334(2); 24 (iv) a list of any other related regulatory ac- 25 tions intended to implement the same statutory pro- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 123 1 vision or regulatory objective as well as the indi- 2 vidual and aggregate economic effects of those ac- 3 tions; and 4 (v) the proposed effective date of the rule. 5 (B) On the date of the submission of the report under 6 subparagraph (A), the Federal financial agency shall sub7 mit to the Comptroller General and make available to each 8 House of Congress— 9 (i) a complete copy of the cost-benefit analysis 10 of the rule, if any, including an analysis of any jobs 11 added or lost, differentiating between public and pri- 12 vate sector jobs; 13 (ii) the Federal financial agency’s actions pur- 14 suant to sections 603, 604, 605, 607, and 609 of 15 title 5, United States Code; 16 (iii) the Federal financial agency’s actions pur- 17 suant to sections 202, 203, 204, and 205 of the Un- 18 funded Mandates Reform Act of 1995; and 19 (iv) any other relevant information or require- 20 ments under any other Act and any relevant Execu- 21 tive orders. 22 (C) Upon receipt of a report submitted under sub- 23 paragraph (A), each House shall provide copies of the re24 port to the chairman and ranking member of each stand25 ing committee with jurisdiction under the rules of the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 124 1 House of Representatives or the Senate to report a bill 2 to amend the provision of law under which the rule is 3 issued. 4 (2)(A) The Comptroller General shall provide a re- 5 port on each major rule to the committees of jurisdiction 6 by the end of 15 calendar days after the submission or 7 publication date. The report of the Comptroller General 8 shall include an assessment of the Federal financial agen9 cy’s compliance with procedural steps required by para10 graph (1)(B) and an assessment of whether the major rule 11 imposes any new limits or mandates on private-sector ac12 tivity. 13 (B) Federal financial agencies shall cooperate with 14 the Comptroller General by providing information relevant 15 to the Comptroller General’s report under subparagraph 16 (A). 17 (3) A major rule relating to a report submitted under 18 paragraph (1) shall take effect upon enactment of a joint 19 resolution of approval described in section 332 or as pro20 vided for in the rule following enactment of a joint resolu21 tion of approval described in section 332, whichever is 22 later. 23 (4) A nonmajor rule shall take effect as provided by 24 section 333 after submission to Congress under paragraph 25 (1). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 125 1 (5) If a joint resolution of approval relating to a 2 major rule is not enacted within the period provided in 3 subsection (b)(2), then a joint resolution of approval relat4 ing to the same rule may not be considered under this 5 subtitle in the same Congress by either the House of Rep6 resentatives or the Senate. 7 (b)(1) A major rule shall not take effect unless the 8 Congress enacts a joint resolution of approval described 9 under section 332. 10 (2) If a joint resolution described in subsection (a) 11 is not enacted into law by the end of 70 session days or 12 legislative days, as applicable, beginning on the date on 13 which the report referred to in subsection (a)(1)(A) is re14 ceived by Congress (excluding days either House of Con15 gress is adjourned for more than 3 days during a session 16 of Congress), then the rule described in that resolution 17 shall be deemed not to be approved and such rule shall 18 not take effect. 19 (c)(1) Notwithstanding any other provision of this 20 section (except subject to paragraph (3)), a major rule 21 may take effect for one 90-calendar-day period if the 22 President makes a determination under paragraph (2) and 23 submits written notice of such determination to the Con24 gress. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 126 1 (2) Paragraph (1) applies to a determination made 2 by the President by Executive order that the major rule 3 should take effect because such rule is— 4 5 (A) necessary because of an imminent threat to health or safety or other emergency; 6 7 (B) necessary for the enforcement of criminal laws; 8 (C) necessary for national security; or 9 (D) issued pursuant to any statute imple- 10 menting an international trade agreement. 11 (3) An exercise by the President of the authority 12 under this subsection shall have no effect on the proce13 dures under section 332. 14 (d)(1) In addition to the opportunity for review other- 15 wise provided under this subtitle, in the case of any rule 16 for which a report was submitted in accordance with sub17 section (a)(1)(A) during the period beginning on the date 18 occurring— 19 20 (A) in the case of the Senate, 60 session days; or 21 22 (B) in the case of the House of Representatives, 60 legislative days, 23 before the date the Congress is scheduled to adjourn a 24 session of Congress through the date on which the same 25 or succeeding Congress first convenes its next session, sec- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 127 1 tions 332 and 333 shall apply to such rule in the suc2 ceeding session of Congress. 3 (2)(A) In applying sections 332 and 333 for purposes 4 of such additional review, a rule described under para5 graph (1) shall be treated as though— 6 7 (i) such rule were published in the Federal Register on— 8 (I) in the case of the Senate, the 15th ses- 9 sion day; or 10 (II) in the case of the House of Represent- 11 atives, the 15th legislative day, 12 after the succeeding session of Congress first con- 13 venes; and 14 (ii) a report on such rule were submitted to 15 Congress under subsection (a)(1) on such date. 16 (B) Nothing in this paragraph shall be construed to 17 affect the requirement under subsection (a)(1) that a re18 port shall be submitted to Congress before a rule can take 19 effect. 20 (3) A rule described under paragraph (1) shall take 21 effect as otherwise provided by law (including other sub22 sections of this section). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 128 1 SEC. 332. CONGRESSIONAL APPROVAL PROCEDURE FOR 2 3 MAJOR RULES. (a)(1) For purposes of this section, the term ‘‘joint 4 resolution’’ means only a joint resolution addressing a re5 port classifying a rule as major pursuant to section 6 331(a)(1)(A)(iii) that— 7 (A) bears no preamble; 8 (B) bears the following title (with blanks filled 9 as appropriate): ‘‘Approving the rule submitted by 10 lll relating to lll.’’; 11 (C) includes after its resolving clause only the 12 following (with blanks filled as appropriate): ‘‘That 13 Congress approves the rule submitted by lll re- 14 lating to lll.’’; and 15 16 (D) is introduced pursuant to paragraph (2). (2) After a House of Congress receives a report 17 classifying a rule as major pursuant to section 18 331(a)(1)(A)(iii), the majority leader of that House (or 19 his or her respective designee) shall introduce (by request, 20 if appropriate) a joint resolution described in paragraph 21 (1)— 22 23 (A) in the case of the House of Representatives, within 3 legislative days; and 24 25 (B) in the case of the Senate, within 3 session days. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 129 1 (3) A joint resolution described in paragraph (1) shall 2 not be subject to amendment at any stage of proceeding. 3 (b) A joint resolution described in subsection (a) shall 4 be referred in each House of Congress to the committees 5 having jurisdiction over the provision of law under which 6 the rule is issued. 7 (c) In the Senate, if the committee or committees to 8 which a joint resolution described in subsection (a) has 9 been referred have not reported it at the end of 15 session 10 days after its introduction, such committee or committees 11 shall be automatically discharged from further consider12 ation of the resolution and it shall be placed on the cal13 endar. A vote on final passage of the resolution shall be 14 taken on or before the close of the 15th session day after 15 the resolution is reported by the committee or committees 16 to which it was referred, or after such committee or com17 mittees have been discharged from further consideration 18 of the resolution. 19 (d)(1) In the Senate, when the committee or commit- 20 tees to which a joint resolution is referred have reported, 21 or when a committee or committees are discharged (under 22 subsection (c)) from further consideration of a joint reso23 lution described in subsection (a), it is at any time there24 after in order (even though a previous motion to the same 25 effect has been disagreed to) for a motion to proceed to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 130 1 the consideration of the joint resolution, and all points of 2 order against the joint resolution (and against consider3 ation of the joint resolution) are waived. The motion is 4 not subject to amendment, or to a motion to postpone, 5 or to a motion to proceed to the consideration of other 6 business. A motion to reconsider the vote by which the 7 motion is agreed to or disagreed to shall not be in order. 8 If a motion to proceed to the consideration of the joint 9 resolution is agreed to, the joint resolution shall remain 10 the unfinished business of the Senate until disposed of. 11 (2) In the Senate, debate on the joint resolution, and 12 on all debatable motions and appeals in connection there13 with, shall be limited to not more than 2 hours, which 14 shall be divided equally between those favoring and those 15 opposing the joint resolution. A motion to further limit 16 debate is in order and not debatable. An amendment to, 17 or a motion to postpone, or a motion to proceed to the 18 consideration of other business, or a motion to recommit 19 the joint resolution is not in order. 20 (3) In the Senate, immediately following the conclu- 21 sion of the debate on a joint resolution described in sub22 section (a), and a single quorum call at the conclusion of 23 the debate if requested in accordance with the rules of the 24 Senate, the vote on final passage of the joint resolution 25 shall occur. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 131 1 (4) Appeals from the decisions of the Chair relating 2 to the application of the rules of the Senate to the proce3 dure relating to a joint resolution described in subsection 4 (a) shall be decided without debate. 5 (e) In the House of Representatives, if any committee 6 to which a joint resolution described in subsection (a) has 7 been referred has not reported it to the House at the end 8 of 15 legislative days after its introduction, such com9 mittee shall be discharged from further consideration of 10 the joint resolution, and it shall be placed on the appro11 priate calendar. On the second and fourth Thursdays of 12 each month it shall be in order at any time for the Speaker 13 to recognize a Member who favors passage of a joint reso14 lution that has appeared on the calendar for at least 5 15 legislative days to call up that joint resolution for imme16 diate consideration in the House without intervention of 17 any point of order. When so called up a joint resolution 18 shall be considered as read and shall be debatable for 1 19 hour equally divided and controlled by the proponent and 20 an opponent, and the previous question shall be considered 21 as ordered to its passage without intervening motion. It 22 shall not be in order to reconsider the vote on passage. 23 If a vote on final passage of the joint resolution has not 24 been taken by the third Thursday on which the Speaker G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 132 1 may recognize a Member under this subsection, such vote 2 shall be taken on that day. 3 (f)(1) If, before passing a joint resolution described 4 in subsection (a), one House receives from the other a 5 joint resolution having the same text, then— 6 7 (A) the joint resolution of the other House shall not be referred to a committee; and 8 (B) the procedure in the receiving House shall 9 be the same as if no joint resolution had been re- 10 ceived from the other House until the vote on pas- 11 sage, when the joint resolution received from the 12 other House shall supplant the joint resolution of 13 the receiving House. 14 (2) This subsection shall not apply to the House of 15 Representatives if the joint resolution received from the 16 Senate is a revenue measure. 17 (g) If either House has not taken a vote on final pas- 18 sage of the joint resolution by the last day of the period 19 described in section 331(b)(2), then such vote shall be 20 taken on that day. 21 (h) This section and section 333 are enacted by Con- 22 gress— 23 (1) as an exercise of the rulemaking power of 24 the Senate and House of Representatives, respec- 25 tively, and as such is deemed to be part of the rules G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 133 1 of each House, respectively, but applicable only with 2 respect to the procedure to be followed in that 3 House in the case of a joint resolution described in 4 subsection (a) and superseding other rules only 5 where explicitly so; and 6 (2) with full recognition of the Constitutional 7 right of either House to change the rules (so far as 8 they relate to the procedure of that House) at any 9 time, in the same manner and to the same extent as 10 11 in the case of any other rule of that House. SEC. 333. CONGRESSIONAL DISAPPROVAL PROCEDURE FOR 12 13 NONMAJOR RULES. (a) For purposes of this section, the term ‘‘joint reso- 14 lution’’ means only a joint resolution introduced in the pe15 riod beginning on the date on which the report referred 16 to in section 331(a)(1)(A) is received by Congress and 17 ending 60 days thereafter (excluding days either House 18 of Congress is adjourned for more than 3 days during a 19 session of Congress), the matter after the resolving clause 20 of which is as follows: ‘‘That Congress disapproves the 21 nonmajor rule submitted by the lll relating to 22 lll, and such rule shall have no force or effect.’’ (The 23 blank spaces being appropriately filled in). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 134 1 (b) A joint resolution described in subsection (a) shall 2 be referred to the committees in each House of Congress 3 with jurisdiction. 4 (c) In the Senate, if the committee to which is re- 5 ferred a joint resolution described in subsection (a) has 6 not reported such joint resolution (or an identical joint 7 resolution) at the end of 15 session days after the date 8 of introduction of the joint resolution, such committee may 9 be discharged from further consideration of such joint res10 olution upon a petition supported in writing by 30 Mem11 bers of the Senate, and such joint resolution shall be 12 placed on the calendar. 13 (d)(1) In the Senate, when the committee to which 14 a joint resolution is referred has reported, or when a com15 mittee is discharged (under subsection (c)) from further 16 consideration of a joint resolution described in subsection 17 (a), it is at any time thereafter in order (even though a 18 previous motion to the same effect has been disagreed to) 19 for a motion to proceed to the consideration of the joint 20 resolution, and all points of order against the joint resolu21 tion (and against consideration of the joint resolution) are 22 waived. The motion is not subject to amendment, or to 23 a motion to postpone, or to a motion to proceed to the 24 consideration of other business. A motion to reconsider the 25 vote by which the motion is agreed to or disagreed to shall G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 135 1 not be in order. If a motion to proceed to the consideration 2 of the joint resolution is agreed to, the joint resolution 3 shall remain the unfinished business of the Senate until 4 disposed of. 5 (2) In the Senate, debate on the joint resolution, and 6 on all debatable motions and appeals in connection there7 with, shall be limited to not more than 10 hours, which 8 shall be divided equally between those favoring and those 9 opposing the joint resolution. A motion to further limit 10 debate is in order and not debatable. An amendment to, 11 or a motion to postpone, or a motion to proceed to the 12 consideration of other business, or a motion to recommit 13 the joint resolution is not in order. 14 (3) In the Senate, immediately following the conclu- 15 sion of the debate on a joint resolution described in sub16 section (a), and a single quorum call at the conclusion of 17 the debate if requested in accordance with the rules of the 18 Senate, the vote on final passage of the joint resolution 19 shall occur. 20 (4) Appeals from the decisions of the Chair relating 21 to the application of the rules of the Senate to the proce22 dure relating to a joint resolution described in subsection 23 (a) shall be decided without debate. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00135 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 136 1 (e) In the Senate, the procedure specified in sub- 2 section (c) or (d) shall not apply to the consideration of 3 a joint resolution respecting a nonmajor rule— 4 (1) after the expiration of the 60 session days 5 beginning with the applicable submission or publica- 6 tion date; or 7 (2) if the report under section 331(a)(1)(A) was 8 submitted during the period referred to in section 9 331(d)(1), after the expiration of the 60 session 10 days beginning on the 15th session day after the 11 succeeding session of Congress first convenes. 12 (f) If, before the passage by one House of a joint res- 13 olution of that House described in subsection (a), that 14 House receives from the other House a joint resolution 15 described in subsection (a), then the following procedures 16 shall apply: 17 18 (1) The joint resolution of the other House shall not be referred to a committee. 19 (2) With respect to a joint resolution described 20 in subsection (a) of the House receiving the joint 21 resolution— 22 (A) the procedure in that House shall be 23 the same as if no joint resolution had been re- 24 ceived from the other House; but G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00136 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 137 1 (B) the vote on final passage shall be on 2 3 4 the joint resolution of the other House. SEC. 334. DEFINITIONS. For purposes of this subtitle: 5 (1) The term ‘‘Federal financial agency’’ means 6 the Consumer Law Enforcement Agency, Board of 7 Governors of the Federal Reserve System, the Com- 8 modity Futures Trading Commission, the Federal 9 Deposit Insurance Corporation, the Federal Housing 10 Finance Agency, the Office of the Comptroller of the 11 Currency, the National Credit Union Administra- 12 tion, and the Securities and Exchange Commission. 13 (2) The term ‘‘major rule’’ means any rule, in- 14 cluding an interim final rule, that the Administrator 15 of the Office of Information and Regulatory Affairs 16 of the Office of Management and Budget finds has 17 resulted in or is likely to result in— 18 (A) an annual effect on the economy of 19 $100 million or more; 20 (B) a major increase in costs or prices for 21 consumers, 22 State, or local government agencies, or geo- 23 graphic regions; or industries, Federal, 24 (C) significant adverse effects on competi- 25 tion, employment, investment, productivity, in- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 individual 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 138 1 novation, or on the ability of United States- 2 based enterprises to compete with foreign-based 3 enterprises in domestic and export markets. 4 (3) The term ‘‘nonmajor rule’’ means any rule 5 that is not a major rule. 6 (4) The term ‘‘rule’’ has the meaning given 7 such term in section 551 of title 5, United States 8 Code, except that such term does not include— 9 (A) any rule of particular applicability, in- 10 cluding a rule that approves or prescribes for 11 the future rates, wages, prices, services, or al- 12 lowances therefore, corporate or financial struc- 13 tures, reorganizations, mergers, or acquisitions 14 thereof, or accounting practices or disclosures 15 bearing on any of the foregoing; 16 (B) any rule relating to agency manage- 17 ment or personnel; or 18 (C) any rule of agency organization, proce- 19 dure, or practice that does not substantially af- 20 fect the rights or obligations of non-agency par- 21 ties. 22 (5) The term ‘‘submission date or publication 23 date’’, except as otherwise provided in this subtitle, 24 means— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00138 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 139 1 (A) in the case of a major rule, the date 2 on which the Congress receives the report sub- 3 mitted under section 331(a)(1)(A); and 4 (B) in the case of a nonmajor rule, the 5 later of— 6 (i) the date on which the Congress re- 7 ceives the report submitted under section 8 331(a)(1)(A); and 9 (ii) the date on which the nonmajor 10 rule is published in the Federal Register, if 11 so published. 12 SEC. 335. JUDICIAL REVIEW. 13 (a) No determination, finding, action, or omission 14 under this subtitle shall be subject to judicial review. 15 (b) Notwithstanding subsection (a), a court may de- 16 termine whether a Federal financial agency has completed 17 the necessary requirements under this subtitle for a rule 18 to take effect. 19 (c) The enactment of a joint resolution of approval 20 under section 332 shall not be interpreted to serve as a 21 grant or modification of statutory authority by Congress 22 for the promulgation of a rule, shall not extinguish or af23 fect any claim, whether substantive or procedural, against 24 any alleged defect in a rule, and shall not form part of 25 the record before the court in any judicial proceeding con- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 140 1 cerning a rule except for purposes of determining whether 2 or not the rule is in effect. 3 4 SEC. 336. EFFECTIVE DATE OF CERTAIN RULES. Notwithstanding section 331— 5 (1) any rule that establishes, modifies, opens, 6 closes, or conducts a regulatory program for a com- 7 mercial, recreational, or subsistence activity related 8 to hunting, fishing, or camping, or 9 (2) any rule other than a major rule which the 10 Federal financial agency for good cause finds (and 11 incorporates the finding and a brief statement of 12 reasons therefore in the rule issued) that notice and 13 public procedure thereon are impracticable, unneces- 14 sary, or contrary to the public interest, 15 shall take effect at such time as the Federal financial 16 agency promulgating the rule determines. 17 SEC. 337. BUDGETARY EFFECTS OF RULES SUBJECT TO 18 SECTION 332 OF THE FINANCIAL CHOICE ACT 19 OF 2017. 20 Section 257(b)(2) of the Balanced Budget and Emer- 21 gency Deficit Control Act of 1985 is amended by adding 22 at the end the following new subparagraph: 23 ‘‘(E) BUDGETARY 24 TO SECTION 332 OF THE FINANCIAL CHOICE ACT OF 25 2017.—Any G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EFFECTS OF RULES SUBJECT 15:00 Apr 19, 2017 Jkt 000000 rules subject to the congressional ap- (657255 10) PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 141 1 proval procedure set forth in section 332 of the Fi- 2 nancial CHOICE Act of 2017 affecting budget au- 3 thority, outlays, or receipts shall be assumed to be 4 effective unless it is not approved in accordance with 5 such section.’’. 6 7 Subtitle C—Judicial Review of Agency Actions 8 SEC. 341. SCOPE OF JUDICIAL REVIEW OF AGENCY AC- 9 TIONS. 10 (a) IN GENERAL.—Notwithstanding any other provi- 11 sion of law, in any judicial review of an agency action pur12 suant to chapter 7 of title 5, United States Code, to the 13 extent necessary to decision and when presented, the re14 viewing court shall determine the meaning or applicability 15 of the terms of an agency action and decide de novo all 16 relevant questions of law, including the interpretation of 17 constitutional and statutory provisions, and rules made by 18 an agency. Notwithstanding any other provision of law, 19 this section shall apply in any action for judicial review 20 of agency action authorized under any provision of law. 21 No law may exempt any such civil action from the applica22 tion of this section except by specific reference to this sec23 tion. 24 (b) AGENCY DEFINED.—For purposes of this section, 25 the term ‘‘agency’’ means the Consumer Law Enforce- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 142 1 ment Agency, the Board of Governors of the Federal Re2 serve System, the Commodity Futures Trading Commis3 sion, the Federal Deposit Insurance Corporation, the Fed4 eral Housing Finance Agency, the Office of the Comp5 troller of the Currency, the National Credit Union Admin6 istration, and the Securities and Exchange Commission. 7 (c) EFFECTIVE DATE.—Subsection (a) shall take ef- 8 fect after the end of the 2-year period beginning on the 9 date of the enactment of this Act. Subtitle D—Leadership of Financial Regulators 10 11 12 13 SEC. 351. FEDERAL DEPOSIT INSURANCE CORPORATION. Section 2 of the Federal Deposit Insurance Act (12 14 U.S.C. 1812) is amended— 15 (1) in subsection (a)(1), by striking ‘‘5 mem- 16 bers’’ and all that follows through ‘‘3 of whom’’ and 17 inserting the following: ‘‘5 members, who’’; 18 (2) by amending subsection (d) to read as fol- 19 lows: 20 ‘‘(d) VACANCY.—Any vacancy on the Board of Direc- 21 tors shall be filled in the manner in which the original 22 appointment was made.’’; and 23 (3) in subsection (f)— 24 (A) by striking paragraph (2); and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00142 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 143 1 (B) by redesignating paragraph (3) as 2 3 4 paragraph (2). SEC. 352. FEDERAL HOUSING FINANCE AGENCY. Section 1312(b)(2) of the Federal Housing Enter- 5 prises Financial Safety and Soundness Act of 1992 (12 6 U.S.C. 4512) is amended by striking ‘‘for cause’’. 8 Subtitle E—Congressional Oversight of Appropriations 9 SEC. 361. BRINGING THE FEDERAL DEPOSIT INSURANCE 10 CORPORATION INTO THE REGULAR APPRO- 11 PRIATIONS PROCESS. 7 12 (a) IN GENERAL.—Section 10(a) of the Federal De- 13 posit Insurance Act (12 U.S.C. 1820(a)) is amended— 14 (1) by striking ‘‘(a) The’’ and inserting the fol- 15 lowing: 16 ‘‘(a) POWERS.— 17 ‘‘(1) IN 18 (2) by inserting ‘‘, subject to paragraph (2) and 19 subsection (l),’’ after ‘‘The Board of Directors of the 20 Corporation’’; and 21 22 (3) by adding at the end the following new paragraph: 23 ‘‘(2) APPROPRIATIONS 24 ‘‘(A) RECOVERY 25 15:00 Apr 19, 2017 Jkt 000000 REQUIREMENT.— OF COSTS OF ANNUAL AP- PROPRIATION.—The G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The’’; Corporation shall collect (657255 10) PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 144 1 assessments and other fees, as provided under 2 this Act, that are designed to recover the costs 3 to the Government of the annual appropriation 4 to the Corporation by Congress. 5 ‘‘(B) OFFSETTING 6 ments and other fees described under subpara- 7 graph (A) for any fiscal year— 8 ‘‘(i) shall be deposited and credited as 9 offsetting collections to the account pro- 10 viding appropriations to the Corporation; 11 and 12 ‘‘(ii) except as provided in subpara- 13 graph (C), shall not be collected for any 14 fiscal year except to the extent provided in 15 advance in appropriation Acts. 16 ‘‘(C) LAPSE OF APPROPRIATION.—If on 17 the first day of a fiscal year a regular appro- 18 priation to the Corporation has not been en- 19 acted, the Corporation shall continue to collect 20 (as offsetting collections) the assessments and 21 other fees described under subparagraph (A) at 22 the rate in effect during the preceding fiscal 23 year, until 60 days after the date such a reg- 24 ular appropriation is enacted. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COLLECTIONS.—Assess- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00144 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 145 1 ‘‘(D) EXCEPTION FOR INSURANCE FUNC- 2 TIONS.—This 3 Deposit Insurance Fund, including assessments 4 and other fees that are deposited into, and 5 amounts paid from, the Deposit Insurance 6 Fund.’’. 7 paragraph shall not apply to the (b) CONFORMING AMENDMENT.—Subsection (d) of 8 section 7 of the Federal Deposit Insurance Act (12 U.S.C. 9 1817) is amended to read as follows: 10 11 ‘‘(d) DEPOSIT INSURANCE FUND EXEMPT FROM APPORTIONMENT.—Notwithstanding any other provision of 12 law, amounts received pursuant to any assessments or 13 other fees that are deposited into the Deposit Insurance 14 Fund shall not be subject to apportionment for the pur15 poses of chapter 15 of title 31, United States Code, or 16 under any other authority.’’. 17 (c) EFFECTIVE DATE.—The amendments made by 18 this section shall apply with respect to expenses paid and 19 fees collected on or after the date that is 90 days after 20 the date of the enactment of the first appropriation Act 21 that provides for appropriations to the Federal Deposit 22 Insurance Corporation and that is enacted after the date 23 of the enactment of this Act. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 146 1 SEC. 362. BRINGING THE FEDERAL HOUSING FINANCE 2 AGENCY INTO THE REGULAR APPROPRIA- 3 TIONS PROCESS. 4 (a) IN GENERAL.—Section 1316 of the Housing and 5 Community Development Act of 1992 (12 U.S.C. 4516) 6 is amended— 7 (1) by amending subsection (a) to read as fol- 8 lows: 9 ‘‘(a) APPROPRIATIONS REQUIREMENT.— 10 ‘‘(1) RECOVERY 11 PRIATION.—The 12 and other fees that are designed to recover the costs 13 to the Government of the annual appropriation to 14 the Agency by Congress. 15 Agency shall collect assessments ‘‘(2) OFFSETTING COLLECTIONS.—Assessments 16 and other fees described under paragraph (1) for 17 any fiscal year— 18 ‘‘(A) shall be deposited and credited as off- 19 setting collections to the account providing ap- 20 propriations to the Agency; and 21 ‘‘(B) except as provided in paragraph (3), 22 shall not be collected for any fiscal year except 23 to the extent provided in advance in appropria- 24 tion Acts. 25 ‘‘(3) LAPSE 26 15:00 Apr 19, 2017 OF APPROPRIATION.—If on the first day of a fiscal year a regular appropriation to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF COSTS OF ANNUAL APPRO- Jkt 000000 (657255 10) PO 00000 Frm 00146 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 147 1 the Agency has not been enacted, the Agency shall 2 continue to collect (as offsetting collections) the as- 3 sessments and other fees described under paragraph 4 (1) at the rate in effect during the preceding fiscal 5 year, until 60 days after the date such a regular ap- 6 propriation is enacted.’’; and 7 8 (2) by striking subsection (f). (b) EFFECTIVE DATE.—The amendments made by 9 this section shall apply with respect to expenses paid and 10 assessments and other fees collected on or after the date 11 that is 90 days after the date of the enactment of the 12 first appropriation Act that provides for appropriations to 13 the Federal Housing Finance Agency and that is enacted 14 after the date of the enactment of this Act. 15 SEC. 363. BRINGING THE NATIONAL CREDIT UNION ADMIN- 16 ISTRATION INTO THE REGULAR APPROPRIA- 17 TIONS PROCESS. 18 (a) IN GENERAL.—Section 105 of the Federal Credit 19 Union Act (12 U.S.C. 1755) is amended by striking sub20 sections (d) and (e) and inserting the following: 21 ‘‘(d) APPROPRIATIONS REQUIREMENT.— 22 ‘‘(1) RECOVERY 23 PRIATION.—The 24 ments and other fees, as provided under this Act, 25 that are designed to recover the costs to the Govern- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF COSTS OF ANNUAL APPRO- 15:00 Apr 19, 2017 Jkt 000000 Administration shall collect assess- (657255 10) PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 148 1 ment of the annual appropriation to the Administra- 2 tion by Congress. 3 ‘‘(2) OFFSETTING 4 and other fees described under paragraph (1) for 5 any fiscal year— 6 ‘‘(A) shall be deposited and credited as off- 7 setting collections to the account providing ap- 8 propriations to the Administration; and 9 ‘‘(B) except as provided in paragraph (3), 10 shall not be collected for any fiscal year except 11 to the extent provided in advance in appropria- 12 tion Acts. 13 ‘‘(3) LAPSE OF APPROPRIATION.—If on the 14 first day of a fiscal year a regular appropriation to 15 the Administration has not been enacted, the Ad- 16 ministration shall continue to collect (as offsetting 17 collections) the assessments and other fees described 18 under paragraph (1) at the rate in effect during the 19 preceding fiscal year, until 60 days after the date 20 such a regular appropriation is enacted. 21 ‘‘(4) 22 TIONS.—This 23 tional Credit Union Share Insurance Fund, includ- 24 ing assessments and other fees that are deposited G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COLLECTIONS.—Assessments 15:00 Apr 19, 2017 Jkt 000000 EXCEPTION FOR INSURANCE FUNC- subsection shall not apply to the Na- (657255 10) PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 149 1 into, and amounts paid from, the National Credit 2 Union Share Insurance Fund.’’. 3 (b) CONFORMING AMENDMENTS.—The Federal 4 Credit Union Act (12 U.S.C. 1751 et seq.) is amended— 5 6 (1) in section 120(j), by striking paragraph (3); and 7 (2) by amending section 128 to read as follows: 8 ‘‘SEC. 128. NATIONAL CREDIT UNION SHARE INSURANCE 9 10 FUND EXEMPT FROM APPORTIONMENT. ‘‘Notwithstanding any other provision of law, 11 amounts received pursuant to any assessments or other 12 fees that are deposited into the National Credit Union 13 Share Insurance Fund shall not be subject to apportion14 ment for the purposes of chapter 15 of title 31, United 15 States Code, or under any other authority.’’. 16 (c) EFFECTIVE DATE.—The amendments made by 17 this section shall apply with respect to expenses paid and 18 fees collected on or after the date that is 90 days after 19 the date of the enactment of the first appropriation Act 20 that provides for appropriations to the National Credit 21 Union Administration and that is enacted after the date 22 of the enactment of this Act. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00149 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 150 1 SEC. 364. BRINGING THE OFFICE OF THE COMPTROLLER 2 OF THE CURRENCY INTO THE REGULAR AP- 3 PROPRIATIONS PROCESS. 4 (a) IN GENERAL.—Section 5240A of the Revised 5 Statutes of the United States (12 U.S.C. 16) is amend6 ed— 7 (1) by striking ‘‘Sec. 5240A. The Comptroller 8 of the Currency may collect an assessment, fee, or 9 other charge from any entity described in section 10 3(q)(1) of the Federal Deposit Insurance Act (12 11 U.S.C. 1813(q)(1)), as the Comptroller determines 12 is necessary or appropriate to carry out the respon- 13 sibilities of the Office of the Comptroller of the Cur- 14 rency. In establishing the amount of an assessment, 15 fee, or charge collected from an entity under this 16 section,’’ and inserting the following: 17 ‘‘SEC. 5240A. COLLECTION OF FEES; APPROPRIATIONS RE- 18 19 QUIREMENT. ‘‘(a) IN GENERAL.—In establishing the amount of an 20 assessment, fee, or charge collected from an entity under 21 subsection (b),’’; 22 23 (2) by striking ‘‘Funds derived’’ and all that follows through the end of the section; and 24 25 (3) by adding at the end the following: ‘‘(b) APPROPRIATIONS REQUIREMENT.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00150 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 151 1 ‘‘(1) RECOVERY 2 PRIATION.—The 3 impose and collect assessments, fees, or other 4 charges that are designed to recover the costs to the 5 Government of the annual appropriation to the Of- 6 fice of the Comptroller of the Currency by Congress. 7 Comptroller of the Currency shall ‘‘(2) OFFSETTING COLLECTIONS.—Assessments 8 and other fees described under paragraph (1) for 9 any fiscal year— 10 ‘‘(A) shall be deposited and credited as off- 11 setting collections to the account providing ap- 12 propriations to the Office of the Comptroller of 13 the Currency; and 14 ‘‘(B) except as provided in paragraph (3), 15 shall not be collected for any fiscal year except 16 to the extent provided in advance in appropria- 17 tion Acts. 18 ‘‘(3) LAPSE OF APPROPRIATION.—If on the 19 first day of a fiscal year a regular appropriation to 20 the Office of the Comptroller of the Currency has 21 not been enacted, the Comptroller of the Currency 22 shall continue to collect (as offsetting collections) the 23 assessments and other fees described under para- 24 graph (1) at the rate in effect during the preceding G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF COSTS OF ANNUAL APPRO- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 152 1 fiscal year, until 60 days after the date such a reg- 2 ular appropriation is enacted.’’. 3 (b) CONFORMING AMENDMENT.—Section 5240 (12 4 U.S.C. 481 et seq.) of the Revised Statutes of the United 5 States is amended by striking the fourth undesignated 6 paragraph. 7 (c) EFFECTIVE DATE.—The amendments made by 8 this section shall apply with respect to expenses paid and 9 fees collected on or after the date that is 90 days after 10 the date of the enactment of the first appropriation Act 11 that provides for appropriations to the Comptroller of the 12 Currency and that is enacted after the date of the enact13 ment of this Act. 14 SEC. 365. BRINGING THE NON-MONETARY POLICY RELATED 15 FUNCTIONS OF THE BOARD OF GOVERNORS 16 OF THE FEDERAL RESERVE SYSTEM INTO 17 THE REGULAR APPROPRIATIONS PROCESS. 18 The Federal Reserve Act is amended by inserting 19 after section 11B the following: 20 ‘‘SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON- 21 MONETARY POLICY RELATED ADMINISTRA- 22 TIVE COSTS. 23 ‘‘(a) APPROPRIATIONS REQUIREMENT.— 24 25 ‘‘(1) RECOVERY PRIATION.—The G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 OF COSTS OF ANNUAL APPRO- Board of Governors of the Federal (657255 10) PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 153 1 Reserve System shall collect assessments and other 2 fees, as provided under this Act, that are designed 3 to recover the costs to the Government of the annual 4 appropriation to the Board of Governors of the Fed- 5 eral Reserve System by Congress. 6 ‘‘(2) OFFSETTING 7 and other fees described under paragraph (1) for 8 any fiscal year— 9 ‘‘(A) shall be deposited and credited as off- 10 setting collections to the account providing ap- 11 propriations to the Board of Governors of the 12 Federal Reserve System; and 13 ‘‘(B) except as provided in paragraph (3), 14 shall not be collected for any fiscal year except 15 to the extent provided in advance in appropria- 16 tion Acts. 17 ‘‘(3) LAPSE OF APPROPRIATION.—If on the 18 first day of a fiscal year a regular appropriation to 19 the Board of Governors of the Federal Reserve Sys- 20 tem has not been enacted, the Board of Governors 21 of the Federal Reserve System shall continue to col- 22 lect (as offsetting collections) the assessments and 23 other fees described under paragraph (1) at the rate 24 in effect during the preceding fiscal year, until 60 G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COLLECTIONS.—Assessments 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 154 1 days after the date such a regular appropriation is 2 enacted. 3 ‘‘(4) LIMITATION.—This subsection shall only 4 apply to the non-monetary policy related administra- 5 tive costs of the Board of Governors of the Federal 6 Reserve System. 7 ‘‘(b) DEFINITIONS.—For purposes of this section: 8 ‘‘(1) MONETARY term ‘monetary 9 policy’ means a strategy for producing a generally 10 acceptable exchange medium that supports the pro- 11 ductive employment of economic resources by reli- 12 ably serving as both a unit of account and store of 13 value. 14 ‘‘(2) NON-MONETARY POLICY RELATED ADMIN- 15 ISTRATIVE COSTS.—The 16 related administrative costs’ means administrative 17 costs not related to the conduct of monetary policy, 18 and include— term ‘non-monetary policy 19 ‘‘(A) direct operating expenses for super- 20 vising and regulating entities supervised and 21 regulated by the Board of Governors of the 22 Federal Reserve System, including conducting 23 examinations, conducting stress tests, commu- 24 nicating with the entities regarding supervisory 25 matters and laws, and regulations; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 POLICY.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 155 1 ‘‘(B) operating expenses for activities inte- 2 gral to carrying out supervisory and regulatory 3 responsibilities, such as training staff in the su- 4 pervisory function, research and analysis func- 5 tions including library subscription services, and 6 collecting and processing regulatory reports 7 filed by supervised institutions; and 8 ‘‘(C) support, overhead, and pension ex- 9 penses related to the items described under sub- 10 paragraphs (A) and (B).’’. 11 Subtitle F—International Processes 12 SEC. 371. REQUIREMENTS FOR INTERNATIONAL PROC- 13 14 ESSES. (a) BOARD OF GOVERNORS REQUIREMENTS.—Sec- 15 tion 11 of the Federal Reserve Act (12 U.S.C. 248), as 16 amended by section 1007(a), is further amended by add17 ing at the end the following new subsection: 18 ‘‘(w) INTERNATIONAL PROCESSES.— 19 ‘‘(1) NOTICE 20 least 30 calendar days before any member or em- 21 ployee of the Board of Governors of the Federal Re- 22 serve System participates in a process of setting fi- 23 nancial standards as a part of any foreign or multi- 24 national entity, the Board of Governors shall— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF PROCESS; CONSULTATION.—At 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00155 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 156 1 ‘‘(A) issue a notice of the process, includ- 2 ing the subject matter, scope, and goals of the 3 process, to the Committee on Financial Services 4 of the House of Representatives and the Com- 5 mittee on Banking, Housing, and Urban Affairs 6 of the Senate; 7 ‘‘(B) make such notice available to the 8 public, including on the website of the Board of 9 Governors; and 10 ‘‘(C) solicit public comment, and consult 11 with the committees described under subpara- 12 graph (A), with respect to the subject matter, 13 scope, and goals of the process. 14 ‘‘(2) PUBLIC the 15 end of any process described under paragraph (1), 16 the Board of Governors shall issue a public report 17 on the topics that were discussed during the process 18 and any new or revised rulemakings or policy 19 changes that the Board of Governors believes should 20 be implemented as a result of the process. 21 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTA- 22 TION.—At 23 ber or employee of the Board of Governors of the 24 Federal Reserve System participates in a process of 25 setting financial standards as a part of any foreign G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REPORTS ON PROCESS.—After 15:00 Apr 19, 2017 Jkt 000000 least 90 calendar days before any mem- (657255 10) PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 157 1 or multinational entity, the Board of Governors 2 shall— 3 ‘‘(A) issue a notice of agreement to the 4 Committee on Financial Services of the House 5 of Representatives and the Committee on Bank- 6 ing, Housing, and Urban Affairs of the Senate; 7 ‘‘(B) make such notice available to the 8 public, including on the website of the Board of 9 Governors; and 10 ‘‘(C) consult with the committees described 11 under subparagraph (A) with respect to the na- 12 ture of the agreement and any anticipated ef- 13 fects such agreement will have on the economy. 14 ‘‘(4) DEFINITION.—For purposes of this sub- 15 section, the term ‘process’ shall include any official 16 proceeding or meeting on financial regulation of a 17 recognized international organization with authority 18 to set financial standards on a global or regional 19 level, including the Financial Stability Board, the 20 Basel Committee on Banking Supervision (or a simi- 21 lar organization), and the International Association 22 of Insurance Supervisors (or a similar organiza- 23 tion).’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 158 1 (b) FDIC REQUIREMENTS.—The Federal Deposit 2 Insurance Act (12 U.S.C. 1811 et seq.) is amended by 3 adding at the end the following new section: 4 5 ‘‘SEC. 51. INTERNATIONAL PROCESSES. ‘‘(a) NOTICE OF PROCESS; CONSULTATION.—At least 6 30 calendar days before the Board of Directors partici7 pates in a process of setting financial standards as a part 8 of any foreign or multinational entity, the Board of Direc9 tors shall— 10 ‘‘(1) issue a notice of the process, including the 11 subject matter, scope, and goals of the process, to 12 the Committee on Financial Services of the House of 13 Representatives and the Committee on Banking, 14 Housing, and Urban Affairs of the Senate; 15 16 ‘‘(2) make such notice available to the public, including on the website of the Corporation; and 17 ‘‘(3) solicit public comment, and consult with 18 the committees described under paragraph (1), with 19 respect to the subject matter, scope, and goals of the 20 process. 21 ‘‘(b) PUBLIC REPORTS ON PROCESS.—After the end 22 of any process described under subsection (a), the Board 23 of Directors shall issue a public report on the topics that 24 were discussed at the process and any new or revised G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00158 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 159 1 rulemakings or policy changes that the Board of Directors 2 believes should be implemented as a result of the process. 3 ‘‘(c) NOTICE OF AGREEMENTS; CONSULTATION.—At 4 least 90 calendar days before the Board of Directors par5 ticipates in a process of setting financial standards as a 6 part of any foreign or multinational entity, the Board of 7 Directors shall— 8 ‘‘(1) issue a notice of agreement to the Com- 9 mittee on Financial Services of the House of Rep- 10 resentatives and the Committee on Banking, Hous- 11 ing, and Urban Affairs of the Senate; 12 13 ‘‘(2) make such notice available to the public, including on the website of the Corporation; and 14 ‘‘(3) consult with the committees described 15 under paragraph (1) with respect to the nature of 16 the agreement and any anticipated effects such 17 agreement will have on the economy. 18 ‘‘(d) DEFINITION.—For purposes of this section, the 19 term ‘process’ shall include any official proceeding or 20 meeting on financial regulation of a recognized inter21 national organization with authority to set financial stand22 ards on a global or regional level, including the Financial 23 Stability Board, the Basel Committee on Banking Super24 vision (or a similar organization), and the International G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 160 1 Association of Insurance Supervisors (or a similar organi2 zation).’’. 3 (c) TREASURY REQUIREMENTS.—Section 325 of title 4 31, United States Code, is amended by adding at the end 5 the following new subsection: 6 ‘‘(d) INTERNATIONAL PROCESSES.— 7 ‘‘(1) NOTICE 8 least 30 calendar days before the Secretary partici- 9 pates in a process of setting financial standards as 10 a part of any foreign or multinational entity, the 11 Secretary shall— 12 ‘‘(A) issue a notice of the process, includ- 13 ing the subject matter, scope, and goals of the 14 process, to the Committee on Financial Services 15 of the House of Representatives and the Com- 16 mittee on Banking, Housing, and Urban Affairs 17 of the Senate; 18 ‘‘(B) make such notice available to the 19 public, including on the website of the Depart- 20 ment of the Treasury; and 21 ‘‘(C) solicit public comment, and consult 22 with the committees described under subpara- 23 graph (A), with respect to the subject matter, 24 scope, and goals of the process. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF PROCESS; CONSULTATION.—At 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00160 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 161 1 ‘‘(2) PUBLIC the 2 end of any process described under paragraph (1), 3 the Secretary shall issue a public report on the top- 4 ics that were discussed at the process and any new 5 or revised rulemakings or policy changes that the 6 Secretary believes should be implemented as a result 7 of the process. 8 9 ‘‘(3) NOTICE TION.—At OF AGREEMENTS; CONSULTA- least 90 calendar days before the Sec- 10 retary participates in a process of setting financial 11 standards as a part of any foreign or multinational 12 entity, the Secretary shall— 13 ‘‘(A) issue a notice of agreement to the 14 Committee on Financial Services of the House 15 of Representatives and the Committee on Bank- 16 ing, Housing, and Urban Affairs of the Senate; 17 ‘‘(B) make such notice available to the 18 public, including on the website of the Depart- 19 ment of the Treasury; and 20 ‘‘(C) consult with the committees described 21 under subparagraph (A) with respect to the na- 22 ture of the agreement and any anticipated ef- 23 fects such agreement will have on the economy. 24 ‘‘(4) DEFINITION.—For purposes of this sub- 25 section, the term ‘process’ shall include any official G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REPORTS ON PROCESS.—After 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00161 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 162 1 proceeding or meeting on financial regulation of a 2 recognized international organization with authority 3 to set financial standards on a global or regional 4 level, including the Financial Stability Board, the 5 Basel Committee on Banking Supervision (or a simi- 6 lar organization), and the International Association 7 of Insurance Supervisors (or a similar organiza- 8 tion).’’. 9 (d) OCC REQUIREMENTS.—Chapter one of title LXII 10 of the Revised Statutes of the United States (12 U.S.C. 11 21 et seq.) is amended— 12 13 14 15 (1) by adding at the end the following new section: ‘‘SEC. 5156B. INTERNATIONAL PROCESSES. ‘‘(a) NOTICE OF PROCESS; CONSULTATION.—At least 16 30 calendar days before the Comptroller of the Currency 17 participates in a process of setting financial standards as 18 a part of any foreign or multinational entity, the Board 19 of Directors shall— 20 ‘‘(1) issue a notice of the process, including the 21 subject matter, scope, and goals of the process, to 22 the Committee on Financial Services of the House of 23 Representatives and the Committee on Banking, 24 Housing, and Urban Affairs of the Senate; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00162 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 163 1 ‘‘(2) make such notice available to the public, 2 including on the website of the Office of the Comp- 3 troller of the Currency; and 4 ‘‘(3) solicit public comment, and consult with 5 the committees described under paragraph (1), with 6 respect to the subject matter, scope, and goals of the 7 process. 8 ‘‘(b) PUBLIC REPORTS ON PROCESS.—After the end 9 of any process described under subsection (a), the Board 10 of Directors shall issue a public report on the topics that 11 were discussed at the process and any new or revised 12 rulemakings or policy changes that the Board of Directors 13 believes should be implemented as a result of the process. 14 ‘‘(c) NOTICE OF AGREEMENTS; CONSULTATION.—At 15 least 90 calendar days before the Board of Directors par16 ticipates in a process of setting financial standards as a 17 part of any foreign or multinational entity, the Board of 18 Directors shall— 19 ‘‘(1) issue a notice of agreement to the Com- 20 mittee on Financial Services of the House of Rep- 21 resentatives and the Committee on Banking, Hous- 22 ing, and Urban Affairs of the Senate; 23 ‘‘(2) make such notice available to the public, 24 including on the website of the Office of the Comp- 25 troller of the Currency; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00163 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 164 1 ‘‘(3) consult with the committees described 2 under paragraph (1) with respect to the nature of 3 the agreement and any anticipated effects such 4 agreement will have on the economy. 5 ‘‘(d) DEFINITION.—For purposes of this section, the 6 term ‘process’ shall include any official proceeding or 7 meeting on financial regulation of a recognized inter8 national organization with authority to set financial stand9 ards on a global or regional level, including the Financial 10 Stability Board, the Basel Committee on Banking Super11 vision (or a similar organization), and the International 12 Association of Insurance Supervisors (or a similar organi13 zation).’’; and 14 15 (2) in the table of contents for such chapter, by adding at the end the following new item: ‘‘5156B. International processes.’’. 16 17 (e) SECURITIES AND QUIREMENTS.—Section EXCHANGE COMMISSION RE- 4 of the Securities Exchange Act 18 of 1934 (15 U.S.C. 78d), as amended by section 818(a), 19 is further amended by adding at the end the following new 20 subsection: 21 ‘‘(j) INTERNATIONAL PROCESSES.— 22 ‘‘(1) NOTICE 23 least 30 calendar days before the Commission par- 24 ticipates in a process of setting financial standards G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF PROCESS; CONSULTATION.—At 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00164 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 165 1 as a part of any foreign or multinational entity, the 2 Commission shall— 3 ‘‘(A) issue a notice of the process, includ- 4 ing the subject matter, scope, and goals of the 5 process, to the Committee on Financial Services 6 of the House of Representatives and the Com- 7 mittee on Banking, Housing, and Urban Affairs 8 of the Senate; 9 ‘‘(B) make such notice available to the 10 public, including on the website of the Commis- 11 sion; and 12 ‘‘(C) solicit public comment, and consult 13 with the committees described under subpara- 14 graph (A), with respect to the subject matter, 15 scope, and goals of the process. 16 ‘‘(2) PUBLIC the 17 end of any process described under paragraph (1), 18 the Commission shall issue a public report on the 19 topics that were discussed at the process and any 20 new or revised rulemakings or policy changes that 21 the Commission believes should be implemented as a 22 result of the process. 23 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTA- 24 TION.—At 25 mission participates in a process of setting financial G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REPORTS ON PROCESS.—After 15:00 Apr 19, 2017 Jkt 000000 least 90 calendar days before the Com- (657255 10) PO 00000 Frm 00165 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 166 1 standards as a part of any foreign or multinational 2 entity, the Commission shall— 3 ‘‘(A) issue a notice of agreement to the 4 Committee on Financial Services of the House 5 of Representatives and the Committee on Bank- 6 ing, Housing, and Urban Affairs of the Senate; 7 ‘‘(B) make such notice available to the 8 public, including on the website of the Commis- 9 sion; and 10 ‘‘(C) consult with the committees described 11 under subparagraph (A) with respect to the na- 12 ture of the agreement and any anticipated ef- 13 fects such agreement will have on the economy. 14 ‘‘(4) DEFINITION.—For purposes of this sub- 15 section, the term ‘process’ shall include any official 16 proceeding or meeting on financial regulation of a 17 recognized international organization with authority 18 to set financial standards on a global or regional 19 level, including the Financial Stability Board, the 20 Basel Committee on Banking Supervision (or a simi- 21 lar organization), and the International Association 22 of Insurance Supervisors (or a similar organiza- 23 tion).’’. 24 (f) COMMODITY FUTURES TRADING COMMISSION RE- 25 QUIREMENTS.—Section G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 2 of the Commodity Exchange Act (657255 10) PO 00000 Frm 00166 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 167 1 (7 U.S.C. 2) is amended by adding at the end the fol2 lowing: 3 ‘‘(k) INTERNATIONAL PROCESSES.— 4 ‘‘(1) NOTICE 5 least 30 calendar days before the Commission par- 6 ticipates in a process of setting financial standards 7 as a part of any foreign or multinational entity, the 8 Commission shall— 9 ‘‘(A) issue a notice of the process, includ- 10 ing the subject matter, scope, and goals of the 11 process, to— 12 ‘‘(i) the Committees on Financial 13 Services and Agriculture of the House of 14 Representatives; and 15 ‘‘(ii) the Committees on Banking, 16 Housing, and Urban Affairs and Agri- 17 culture, Nutrition, and Forestry of the 18 Senate; 19 ‘‘(B) make such notice available to the 20 public, including on the website of the Commis- 21 sion; and 22 ‘‘(C) solicit public comment, and consult 23 with the committees described under subpara- 24 graph (A), with respect to the subject matter, 25 scope, and goals of the process. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF PROCESS; CONSULTATION.—At 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00167 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 168 1 ‘‘(2) PUBLIC the 2 end of any process described under paragraph (1), 3 the Commission shall issue a public report on the 4 topics that were discussed during the process and 5 any new or revised rulemakings or policy changes 6 that the Commission believes should be implemented 7 as a result of the process. 8 9 ‘‘(3) NOTICE TION.—At OF AGREEMENTS; CONSULTA- least 90 calendar days before the Com- 10 mission participates in a process of setting financial 11 standards as a part of any foreign or multinational 12 entity, the Commission shall— 13 ‘‘(A) issue a notice of agreement to— 14 ‘‘(i) the Committees on Financial 15 Services and Agriculture of the House of 16 Representatives; and 17 ‘‘(ii) the Committees on Banking, 18 Housing, and Urban Affairs and Agri- 19 culture, Nutrition, and Forestry of the 20 Senate; 21 ‘‘(B) make such notice available to the 22 public, including on the website of the Commis- 23 sion; and 24 ‘‘(C) consult with the committees described 25 under subparagraph (A) with respect to the na- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REPORTS ON PROCESS.—After 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00168 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 169 1 ture of the agreement and any anticipated ef- 2 fects such agreement will have on the economy. 3 ‘‘(4) DEFINITION.—For purposes of this sub- 4 section, the term ‘process’ shall include any official 5 proceeding or meeting on financial regulation of a 6 recognized international organization with authority 7 to set financial standards on a global or regional 8 level, including the Financial Stability Board, the 9 Basel Committee on Banking Supervision (or a simi- 10 lar organization), and the International Association 11 of Insurance Supervisors (or a similar organiza- 12 tion).’’. 13 14 15 16 Subtitle G—Unfunded Mandates Reform SEC. 381. DEFINITIONS. For purposes of this title: 17 18 (1) AGENCY.—The term ‘‘agency’’ has the meaning given such term under section 311. 19 (2) OTHER as provided 20 under paragraph (1), the definitions under section 21 421 of the Congressional Budget and Impoundment 22 Control Act of 1974 shall apply to this title. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 DEFINITIONS.—Except 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00169 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 170 1 SEC. 382. STATEMENTS TO ACCOMPANY SIGNIFICANT REG- 2 3 ULATORY ACTIONS. (a) IN GENERAL.—Unless otherwise expressly pro- 4 hibited by law, before promulgating any general notice of 5 proposed rulemaking or any final rule, or within six 6 months after promulgating any final rule that was not pre7 ceded by a general notice of proposed rulemaking, if the 8 proposed rulemaking or final rule includes a Federal man9 date that may result in an annual effect on State, local, 10 or tribal governments, or to the private sector, in the ag11 gregate of $100,000,000 or more in any 1 year, the agency 12 shall prepare a written statement containing the following: 13 (1) The text of the draft proposed rulemaking 14 or final rule, together with the information required 15 under subsections (a) and (b)(1) of section 312, as 16 applicable, including an explanation of the manner 17 in which the proposed rulemaking or final rule is 18 consistent with the statutory requirement and avoids 19 undue interference with State, local, and tribal gov- 20 ernments in the exercise of their governmental func- 21 tions. 22 (2) Estimates by the agency, if and to the ex- 23 tent that the agency determines that accurate esti- 24 mates are reasonably feasible, of— 25 (A) the future compliance costs of the Fed- 26 eral mandate; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 171 1 (B) any disproportionate budgetary effects 2 of the Federal mandate upon any particular re- 3 gions of the nation or particular State, local, or 4 tribal governments, urban or rural or other 5 types of communities, or particular segments of 6 the private sector. 7 (3)(A) A detailed description of the extent of 8 the agency’s prior consultation with the private sec- 9 tor and elected representatives (under section 384) 10 of the affected State, local, and tribal governments. 11 (B) A detailed summary of the comments and 12 concerns that were presented by the private sector 13 and State, local, or tribal governments either orally 14 or in writing to the agency. 15 16 (C) A detailed summary of the agency’s evaluation of those comments and concerns. 17 (4) A detailed summary of how the agency com- 18 plied with each of the regulatory principles described 19 under section 312, as applicable. 20 (b) PROMULGATION.—In promulgating a general no- 21 tice of proposed rulemaking or a final rule for which a 22 statement under subsection (a) is required, the agency 23 shall include in the promulgation a summary of the infor24 mation contained in the statement. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 172 1 (c) PREPARATION IN CONJUNCTION WITH OTHER 2 STATEMENT.—Any agency may prepare any statement re3 quired under subsection (a) in conjunction with or as a 4 part of any other statement or analysis, provided that the 5 statement or analysis satisfies the provisions of subsection 6 (a). 7 8 SEC. 383. SMALL GOVERNMENT AGENCY PLAN. Before establishing any regulatory requirements that 9 might significantly or uniquely affect small governments, 10 agencies shall have developed a plan under which the agen11 cy shall— 12 13 (1) provide notice of the requirements to potentially affected small governments, if any; 14 (2) enable officials of affected small govern- 15 ments to provide meaningful and timely input in the 16 development of regulatory proposals containing sig- 17 nificant Federal intergovernmental mandates; and 18 19 20 (3) inform, educate, and advise small governments on compliance with the requirements. SEC. 384. STATE, LOCAL, AND TRIBAL GOVERNMENT AND 21 22 PRIVATE SECTOR INPUT. (a) IN GENERAL.—Each agency shall, to the extent 23 permitted in law, develop an effective process to permit 24 elected officers of State, local, and tribal governments (or 25 their designated employees with authority to act on their G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 173 1 behalf), and impacted parties within the private sector (in2 cluding small business), to provide meaningful and timely 3 input in the development of regulatory proposals con4 taining significant Federal mandates. 5 6 (b) MEETINGS BETWEEN STATE, LOCAL, TRIBAL AND FEDERAL OFFICERS.—The Federal Advisory Com- 7 mittee Act (5 U.S.C. App.) shall not apply to actions in 8 support of intergovernmental communications where— 9 (1) meetings are held exclusively between Fed- 10 eral officials and elected officers of State, local, and 11 tribal governments (or their designated employees 12 with authority to act on their behalf) acting in their 13 official capacities; and 14 (2) such meetings are solely for the purposes of 15 exchanging views, information, or advice relating to 16 the management or implementation of Federal pro- 17 grams established pursuant to public law that explic- 18 itly or inherently share intergovernmental respon- 19 sibilities or administration. 20 (c) GUIDELINES.—For appropriate implementation 21 of subsections (a) and (b) consistent with applicable laws 22 and regulations, the following guidelines shall be followed: 23 (1) Consultations shall take place as early as 24 possible, before issuance of a notice of proposed rule- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 174 1 making, continue through the final rule stage, and 2 be integrated explicitly into the rulemaking process. 3 (2) Agencies shall consult with a wide variety of 4 State, local, and tribal officials and impacted parties 5 within the private sector (including small busi- 6 nesses). Geographic, political, and other factors that 7 may differentiate varying points of view should be 8 considered. 9 (3) Agencies should estimate benefits and costs 10 to assist with these consultations. The scope of the 11 consultation should reflect the cost and significance 12 of the Federal mandate being considered. 13 (4) Agencies shall, to the extent practicable— 14 (A) seek out the views of State, local, and 15 tribal governments, and impacted parties within 16 the private sector (including small business), on 17 costs, benefits, and risks; and 18 (B) solicit ideas about alternative methods 19 of compliance and potential flexibilities, and 20 input on whether the Federal regulation will 21 harmonize with and not duplicate similar laws 22 in other levels of government. 23 (5) Consultations shall address the cumulative 24 impact of regulations on the affected entities. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 175 1 (6) Agencies may accept electronic submissions 2 of comments by relevant parties but may not use 3 those comments as the sole method of satisfying the 4 guidelines in this subsection. 5 SEC. 385. LEAST BURDENSOME OPTION OR EXPLANATION 6 7 REQUIRED. (a) IN GENERAL.—Except as provided in subsection 8 (b), before promulgating any rule for which a written 9 statement is required under section 382, the agency shall 10 identify and consider a reasonable number of regulatory 11 alternatives and from those alternatives select the least 12 costly, most cost-effective or least burdensome alternative 13 that achieves the objectives of the rule, for— 14 (1) State, local, and tribal governments, in the 15 case of a rule containing a Federal intergovern- 16 mental mandate; and 17 (2) the private sector, in the case of a rule con- 18 taining a Federal private sector mandate. 19 (b) EXCEPTION.—The provisions of subsection (a) 20 shall apply unless— 21 (1) the head of the affected agency publishes 22 with the final rule an explanation of why the least 23 costly, most cost-effective or least burdensome meth- 24 od of achieving the objectives of the rule was not 25 adopted; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 176 1 (2) the provisions are inconsistent with law. 2 (c) CERTIFICATION.—No later than 1 year after the 3 date of the enactment of this Act, the Administrator of 4 the Office of Information and Regulatory Affairs shall cer5 tify to Congress, with a written explanation, agency com6 pliance with this section and include in that certification 7 agencies and rulemakings that fail to adequately comply 8 with this section. 9 SEC. 386. ASSISTANCE TO THE OFFICE OF INFORMATION 10 11 AND REGULATORY AFFAIRS. The Administrator of the Office of Information and 12 Regulatory Affairs shall— 13 14 (1) collect from agencies the statements prepared under section 382; and 15 (2) periodically forward copies of such state- 16 ments to the Director of the Congressional Budget 17 Office on a reasonably timely basis after promulga- 18 tion of the general notice of proposed rulemaking or 19 of the final rule for which the statement was pre- 20 pared. 21 SEC. 387. OFFICE OF INFORMATION AND REGULATORY AF- 22 23 FAIRS RESPONSIBILITIES. (a) IN GENERAL.—The Administrator of the Office 24 of Information and Regulatory Affairs shall provide mean25 ingful guidance and oversight so that each agency’s regu- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 177 1 lations for which a written statement is required under 2 section 382 are consistent with the principles and require3 ments of this title, as well as other applicable laws, and 4 do not conflict with the policies or actions of another agen5 cy. If the Administrator determines that an agency’s regu6 lations for which a written statement is required under 7 section 382 do not comply with such principles and re8 quirements, are not consistent with other applicable laws, 9 or conflict with the policies or actions of another agency, 10 the Administrator shall identify areas of non-compliance, 11 notify the agency, and request that the agency comply be12 fore the agency finalizes the regulation concerned. 13 (b) ANNUAL STATEMENTS TO CONGRESS ON AGENCY 14 COMPLIANCE.—The Administrator of the Office of Infor15 mation and Regulatory Affairs annually shall submit to 16 Congress a written report detailing compliance by each 17 agency with the requirements of this title that relate to 18 regulations for which a written statement is required by 19 section 382, including activities undertaken at the request 20 of the Administrator to improve compliance, during the 21 preceding reporting period. The report shall also contain 22 an appendix detailing compliance by each agency with sec23 tion 384. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 178 1 2 3 SEC. 388. JUDICIAL REVIEW. (a) AGENCY STATEMENTS LATORY SIGNIFICANT REGU- ACTIONS.— 4 (1) IN GENERAL.—Compliance or noncompli- 5 ance by any agency with the provisions of section 6 382, paragraphs (1) and (2) of section 383(a), and 7 subsections (a) and (b) of section 385 shall be sub- 8 ject to judicial review in accordance with this sec- 9 tion. 10 (2) LIMITED 11 OR NONCOMPLIANCE.— REVIEW OF AGENCY COMPLIANCE 12 (A) Agency compliance or noncompliance 13 with the provisions of section 382, paragraphs 14 (1) and (2) of section 383(a), and subsections 15 (a) and (b) of section 385 shall be subject to ju- 16 dicial review under section 706(1) of title 5, 17 United States Code, and as provided under sub- 18 paragraph (B). 19 (B) If an agency fails to prepare the writ- 20 ten statement (including the preparation of the 21 estimates, analyses, statements, or descriptions) 22 under section 382, prepare the written plan 23 under paragraphs (1) and (2) of section 383(a), 24 or comply with subsections (a) and (b) of sec- 25 tion 385, a court may compel the agency to pre- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ON 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 179 1 pare such written statement, prepare such writ- 2 ten plan, or comply with such section; 3 (3) REVIEW any judi- 4 cial review under any other Federal law of an agency 5 rule for which a written statement under section 6 382, a written plan under paragraphs (1) and (2) of 7 section 383(a), or compliance with subsections (a) 8 and (b) of section 385 is required, the inadequacy or 9 failure to prepare such statement (including the in- 10 adequacy or failure to prepare any estimate, anal- 11 ysis, statement, or description), to prepare such 12 written plan, or to comply with such section may be 13 used as a basis for staying, enjoining, invalidating or 14 otherwise affecting such agency rule. 15 (4) CERTAIN INFORMATION AS PART OF 16 RECORD.—Any 17 382, paragraphs (1) and (2) of section 383(a), and 18 subsections (a) and (b) of section 385 that is part 19 of the rulemaking record for judicial review under 20 the provisions of any other Federal law may be con- 21 sidered as part of the record for judicial review con- 22 ducted under such other provisions of Federal law. 23 information generated under section (5) APPLICATION OF OTHER FEDERAL LAW.— 24 For any petition under paragraph (2) the provisions 25 of such other Federal law shall control all other mat- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF AGENCY RULES.—In 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 180 1 ters, such as exhaustion of administrative remedies, 2 the time for and manner of seeking review and 3 venue, except that if such other Federal law does not 4 provide a limitation on the time for filing a petition 5 for judicial review that is less than 180 days, such 6 limitation shall be 180 days after a final rule is pro- 7 mulgated by the appropriate agency. 8 (6) EFFECTIVE subsection shall 9 apply to any agency rule for which a general notice 10 of proposed rulemaking is promulgated on or after 11 the date of the enactment of this Act. 12 (b) JUDICIAL REVIEW 13 TION.—Except AND RULE OF CONSTRUC- as provided in subsection (a)— 14 (1) any estimate, analysis, statement, descrip- 15 tion or report prepared under this title, and any 16 compliance or noncompliance with the provisions of 17 this title, and any determination concerning the ap- 18 plicability of the provisions of this title shall not be 19 subject to judicial review; and 20 (2) no provision of this title shall be construed 21 to create any right or benefit, substantive or proce- 22 dural, enforceable by any person in any administra- 23 tive or judicial action. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 DATE.—This 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00180 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 181 2 Subtitle H—Enforcement Coordination 3 SEC. 391. POLICIES TO MINIMIZE DUPLICATION OF EN- 1 4 5 FORCEMENT EFFORTS. Each agency (as defined under section 311) shall, not 6 later than the end of the 90-day period beginning on the 7 date of the enactment of this Act, implement policies and 8 procedures— 9 (1) to minimize duplication of efforts with other 10 Federal or State authorities when bringing an ad- 11 ministrative or judicial action against an individual 12 or entity; 13 (2) to establish when joint investigations, ad- 14 ministrative actions, or judicial actions or the coordi- 15 nation of law enforcement activities are necessary 16 and appropriate and in the public interest; and 17 (3) to, in the course of a joint investigation, ad- 18 ministrative action, or judicial action, establish a 19 lead agency to avoid duplication of efforts and un- 20 necessary burdens and to ensure consistent enforce- 21 ment, as necessary and appropriate and in the pub- 22 lic interest. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00181 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 182 2 Subtitle I—Penalties for Unauthorized Disclosures 3 SEC. 392. CRIMINAL PENALTY FOR UNAUTHORIZED DIS- 1 4 5 CLOSURES. Section 165 of the Financial Stability Act of 2010 6 (12 U.S.C. 5365), as amended by section 151(b)(6)(M), 7 is further amended by adding at the end the following: 8 9 ‘‘(m) CRIMINAL PENALTY UNAUTHORIZED DIS- CLOSURES.— 10 ‘‘(1) IN GENERAL.—Any officer or employee of 11 a Federal department or agency, who by virtue of 12 such officer or employee’s employment or official po- 13 sition, has possession of, or access to, agency records 14 which contain individually identifiable information 15 submitted pursuant to the requirements of this sec- 16 tion, the disclosure of which is prohibited by Federal 17 statute, rule, or regulation, and who knowing that 18 disclosure of the specific material is so prohibited, 19 willfully discloses the material in any manner to any 20 person or agency not entitled to receive it, shall be 21 guilty of a misdemeanor and fined not more than 22 $5,000. 23 ‘‘(2) OBTAINING RECORDS UNDER FALSE PRE- 24 TENSES.—Any 25 requests or obtains information described under G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FOR 15:00 Apr 19, 2017 Jkt 000000 person who knowingly and willfully (657255 10) PO 00000 Frm 00182 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 183 1 paragraph (1) from a Federal department or agency 2 under false pretenses shall be guilty of a mis- 3 demeanor and fined not more than $5,000. 4 ‘‘(3) TREATMENT OF DETERMINATIONS.—For 5 purposes of this subsection, a determination made 6 under subsection (d) or (i) based on individually 7 identifiable information submitted pursuant to the 8 requirements of this section shall be deemed individ- 9 ually identifiable information, the disclosure of which 10 is prohibited by Federal statute.’’. 12 Subtitle J—Stop Settlement Slush Funds 13 SEC. 393. LIMITATION ON DONATIONS MADE PURSUANT TO 14 SETTLEMENT AGREEMENTS TO WHICH CER- 15 TAIN DEPARTMENTS OR AGENCIES ARE A 16 PARTY. 11 17 (a) LIMITATION ON REQUIRED DONATIONS.—No set- 18 tlement to which a department or agency is a party may 19 direct or provide for a payment to any person who is not 20 a victim of the alleged wrongdoing. 21 (b) PENALTY.—Any Executive branch official or 22 agent thereof who enters into or enforces a settlement in 23 violation of subsection (a), shall be subject to the same 24 penalties that would apply in the case of a violation of 25 section 3302 of title 31, United States Code. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 184 1 (c) EFFECTIVE DATE.—Subsections (a) and (b) 2 apply only in the case of a settlement agreement concluded 3 on or after the date of enactment of this Act. 4 (d) DEFINITIONS.— 5 (1) The term ‘‘department or agency’’— 6 (A) has the meaning given the term ‘‘agen- 7 cy’’ under section 311; and 8 (B) means the Department of Housing and 9 Urban Development, the Department of Jus- 10 tice, and the Rural Housing Service of the De- 11 partment of Agriculture. 12 (2) The term ‘‘settlement agreement’’ means a 13 settlement agreement resolving a civil action or po- 14 tential civil action, a plea agreement, a deferred 15 prosecution agreement, or a non-prosecution agree- 16 ment. 17 18 (3) The term ‘‘payment’’ means a payment or loan. 19 (4) The term ‘‘payment to any person who is 20 not a victim’’ means any payment other than a pay- 21 ment— 22 (A) to a person who is party to the lawsuit 23 or settlement; 24 (B) that provides restitution for or other- 25 wise directly remedies actual harm (including to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00184 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 185 1 the environment) directly and proximately 2 caused by the party making the payment as a 3 result of that party’s alleged wrongdoing; 4 (C) that constitutes payment for services 5 rendered in connection with the case; or 6 (D) made pursuant to section 3663 of title 7 18, United States Code. 15 TITLE IV—UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, INNOVATORS, AND JOB CREATORS BY FACILITATING CAPITAL FORMATION Subtitle A—Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification 16 SEC. 401. REGISTRATION EXEMPTION FOR MERGER AND 8 9 10 11 12 13 14 17 18 ACQUISITION BROKERS. Section 15(b) of the Securities Exchange Act of 1934 19 (15 U.S.C. 78o(b)) is amended by adding at the end the 20 following: 21 ‘‘(13) REGISTRATION 22 AND ACQUISITION BROKERS.— 23 ‘‘(A) IN GENERAL.—Except as provided in 24 subparagraph (B), an M&A broker shall be ex- 25 empt from registration under this section. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EXEMPTION FOR MERGER 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 186 1 ‘‘(B) EXCLUDED M&A 2 broker is not exempt from registration under 3 this paragraph if such broker does any of the 4 following: 5 ‘‘(i) Directly or indirectly, in connec- 6 tion with the transfer of ownership of an 7 eligible privately held company, receives, 8 holds, transmits, or has custody of the 9 funds or securities to be exchanged by the 10 parties to the transaction. 11 ‘‘(ii) Engages on behalf of an issuer in 12 a public offering of any class of securities 13 that is registered, or is required to be reg- 14 istered, with the Commission under section 15 12 or with respect to which the issuer files, 16 or is required to file, periodic information, 17 documents, and reports under subsection 18 (d). 19 ‘‘(iii) Engages on behalf of any party 20 in a transaction involving a public shell 21 company. 22 ‘‘(C) DISQUALIFICATIONS.—An M&A 23 broker is not exempt from registration under 24 this paragraph if such broker is subject to— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ACTIVITIES.—An 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00186 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 187 1 ‘‘(i) suspension or revocation of reg- 2 istration under paragraph (4); 3 ‘‘(ii) a statutory disqualification de- 4 scribed in section 3(a)(39); 5 ‘‘(iii) a disqualification under the 6 rules adopted by the Commission under 7 section 926 of the Investor Protection and 8 Securities Reform Act of 2010 (15 U.S.C. 9 77d note); or 10 ‘‘(iv) a final order described in para- 11 graph (4)(H). 12 ‘‘(D) RULE 13 in this paragraph shall be construed to limit 14 any other authority of the Commission to ex- 15 empt any person, or any class of persons, from 16 any provision of this title, or from any provision 17 of any rule or regulation thereunder. 18 ‘‘(E) DEFINITIONS.—In this paragraph: 19 ‘‘(i) CONTROL.—The term ‘control’ 20 means the power, directly or indirectly, to 21 direct the management or policies of a 22 company, whether through ownership of 23 securities, by contract, or otherwise. There 24 is a presumption of control for any person 25 who— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF CONSTRUCTION.—Nothing 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00187 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 188 1 ‘‘(I) is a director, general part- 2 ner, member or manager of a limited 3 liability company, or officer exercising 4 executive responsibility (or has similar 5 status or functions); 6 ‘‘(II) has the right to vote 20 7 percent or more of a class of voting 8 securities or the power to sell or direct 9 the sale of 20 percent or more of a 10 class of voting securities; or 11 ‘‘(III) in the case of a partner- 12 ship or limited liability company, has 13 the right to receive upon dissolution, 14 or has contributed, 20 percent or 15 more of the capital. 16 ‘‘(ii) PRIVATELY HELD 17 COMPANY.—The 18 held company’ means a privately held com- 19 pany that meets both of the following con- 20 ditions: term ‘eligible privately 21 ‘‘(I) The company does not have 22 any class of securities registered, or 23 required to be registered, with the 24 Commission under section 12 or with 25 respect to which the company files, or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ELIGIBLE 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00188 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 189 1 is required to file, periodic informa- 2 tion, documents, and reports under 3 subsection (d). 4 ‘‘(II) In the fiscal year ending 5 immediately before the fiscal year in 6 which the services of the M&A broker 7 are initially engaged with respect to 8 the securities transaction, the com- 9 pany meets either or both of the fol- 10 lowing conditions (determined in ac- 11 cordance with the historical financial 12 accounting records of the company): 13 ‘‘(aa) The earnings of the 14 company before interest, taxes, 15 depreciation, 16 are less than $25,000,000. 17 amortization ‘‘(bb) The gross revenues of 18 the 19 $250,000,000. 20 company ‘‘(iii) M&A are BROKER.—The less than term ‘M&A 21 broker’ means a broker, and any person 22 associated with a broker, engaged in the 23 business of effecting securities transactions 24 solely in connection with the transfer of 25 ownership of an eligible privately held com- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 and 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00189 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 190 1 pany, regardless of whether the broker acts 2 on behalf of a seller or buyer, through the 3 purchase, sale, exchange, issuance, repur- 4 chase, or redemption of, or a business com- 5 bination involving, securities or assets of 6 the eligible privately held company, if the 7 broker reasonably believes that— 8 ‘‘(I) upon consummation of the 9 transaction, any person acquiring se- 10 curities or assets of the eligible pri- 11 vately held company, acting alone or 12 in concert, will control and, directly or 13 indirectly, will be active in the man- 14 agement of the eligible privately held 15 company or the business conducted 16 with the assets of the eligible privately 17 held company; and 18 ‘‘(II) if any person is offered se- 19 curities in exchange for securities or 20 assets of the eligible privately held 21 company, such person will, prior to 22 becoming legally bound to consum- 23 mate the transaction, receive or have 24 reasonable access to the most recent 25 fiscal year-end financial statements of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 191 1 the issuer of the securities as custom- 2 arily prepared by the management of 3 the issuer in the normal course of op- 4 erations and, if the financial state- 5 ments of the issuer are audited, re- 6 viewed, or compiled, any related state- 7 ment by the independent accountant, 8 a balance sheet dated not more than 9 120 days before the date of the offer, 10 and information pertaining to the 11 management, business, results of op- 12 erations for the period covered by the 13 foregoing financial statements, and 14 material loss contingencies of the 15 issuer. 16 ‘‘(iv) PUBLIC 17 term ‘public shell company’ is a company 18 that at the time of a transaction with an 19 eligible privately held company— 20 ‘‘(I) has any class of securities 21 registered, or required to be reg- 22 istered, with the Commission under 23 section 12 or that is required to file 24 reports pursuant to subsection (d); G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 SHELL COMPANY.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 192 1 ‘‘(II) has no or nominal oper- 2 ations; and 3 ‘‘(III) has— 4 ‘‘(aa) no or nominal assets; 5 ‘‘(bb) assets consisting solely 6 of cash and cash equivalents; or 7 ‘‘(cc) assets consisting of 8 any amount of cash and cash 9 equivalents and nominal other as- 10 sets. 11 ‘‘(F) INFLATION 12 ‘‘(i) IN GENERAL.—On the date that 13 is 5 years after the date of the enactment 14 of this paragraph, and every 5 years there- 15 after, each dollar amount in subparagraph 16 (E)(ii)(II) shall be adjusted by— 17 ‘‘(I) dividing the annual value of 18 the Employment Cost Index For 19 Wages and Salaries, Private Industry 20 Workers (or any successor index), as 21 published by the Bureau of Labor 22 Statistics, for the calendar year pre- 23 ceding the calendar year in which the 24 adjustment is being made by the an- 25 nual value of such index (or suc- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ADJUSTMENT.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00192 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 193 1 cessor) for the calendar year ending 2 December 31, 2012; and 3 ‘‘(II) multiplying such dollar 4 amount by the quotient obtained 5 under subclause (I). 6 ‘‘(ii) ROUNDING.—Each dollar 7 amount determined under clause (i) shall 8 be rounded to the nearest multiple of 9 $100,000.’’. 10 SEC. 402. EFFECTIVE DATE. 11 This subtitle and any amendment made by this sub- 12 title shall take effect on the date that is 90 days after 13 the date of the enactment of this Act. 15 Subtitle B—Encouraging Employee Ownership 16 SEC. 406. INCREASED THRESHOLD FOR DISCLOSURES RE- 17 LATING TO COMPENSATORY BENEFIT PLANS. 18 Not later than 60 days after the date of the enact- 14 19 ment of this Act, the Securities and Exchange Commission 20 shall revise section 230.701(e) of title 17, Code of Federal 21 Regulations, so as to increase from $5,000,000 to 22 $20,000,000 the aggregate sales price or amount of secu23 rities sold during any consecutive 12-month period in ex24 cess of which the issuer is required under such section to 25 deliver an additional disclosure to investors. The Commis- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00193 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 194 1 sion shall index for inflation such aggregate sales price 2 or amount every 5 years to reflect the change in the Con3 sumer Price Index for All Urban Consumers published by 4 the Bureau of Labor Statistics, rounding to the nearest 5 $1,000,000. 7 Subtitle C—Small Company Disclosure Simplification 8 SEC. 411. EXEMPTION FROM XBRL REQUIREMENTS FOR 9 EMERGING GROWTH COMPANIES AND OTHER 6 10 11 12 SMALLER COMPANIES. (a) EXEMPTION NIES.—Emerging EMERGING GROWTH COMPA- FOR growth companies are exempted from 13 the requirements to use Extensible Business Reporting 14 Language (XBRL) for financial statements and other 15 periodic reporting required to be filed with the Commis16 sion under the securities laws. Such companies may elect 17 to use XBRL for such reporting. 18 19 (b) EXEMPTION NIES.—Issuers FOR OTHER SMALLER COMPA- with total annual gross revenues of less 20 than $250,000,000 are exempt from the requirements to 21 use XBRL for financial statements and other periodic re22 porting required to be filed with the Commission under 23 the securities laws. Such issuers may elect to use XBRL 24 for such reporting. An exemption under this subsection 25 shall continue in effect until— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00194 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 195 1 2 (1) the date that is five years after the date of enactment of this Act; or 3 (2) the date that is two years after a deter- 4 mination by the Commission, by order after con- 5 ducting the analysis required by section 3, that the 6 benefits of such requirements to such issuers out- 7 weigh the costs, but no earlier than three years after 8 enactment of this Act. 9 (c) MODIFICATIONS TO REGULATIONS.—Not later 10 than 60 days after the date of enactment of this Act, the 11 Commission shall revise its regulations under parts 229, 12 230, 232, 239, 240, and 249 of title 17, Code of Federal 13 Regulations, to reflect the exemptions set forth in sub14 sections (a) and (b). 15 16 SEC. 412. ANALYSIS BY THE SEC. The Commission shall conduct an analysis of the 17 costs and benefits to issuers described in section 411(b) 18 of the requirements to use XBRL for financial statements 19 and other periodic reporting required to be filed with the 20 Commission under the securities laws. Such analysis shall 21 include an assessment of— 22 (1) how such costs and benefits may differ from 23 the costs and benefits identified by the Commission 24 in the order relating to interactive data to improve G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00195 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 196 1 financial reporting (dated January 30, 2009; 74 2 Fed. Reg. 6776) because of the size of such issuers; 3 (2) the effects on efficiency, competition, capital 4 formation, and financing and on analyst coverage of 5 such issuers (including any such effects resulting 6 from use of XBRL by investors); 7 (3) the costs to such issuers of— 8 (A) submitting data to the Commission in 9 XBRL; 10 (B) posting data on the website of the 11 issuer in XBRL; 12 (C) software necessary to prepare, submit, 13 or post data in XBRL; and 14 (D) any additional consulting services or 15 filing agent services; 16 (4) the benefits to the Commission in terms of 17 improved ability to monitor securities markets, as- 18 sess the potential outcomes of regulatory alter- 19 natives, and enhance investor participation in cor- 20 porate governance and promote capital formation; 21 and 22 (5) the effectiveness of standards in the United 23 States for interactive filing data relative to the 24 standards of international counterparts. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00196 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 197 1 2 SEC. 413. REPORT TO CONGRESS. Not later than one year after the date of enactment 3 of this Act, the Commission shall provide the Committee 4 on Financial Services of the House of Representatives and 5 the Committee on Banking, Housing, and Urban Affairs 6 of the Senate a report regarding— 7 8 (1) the progress in implementing XBRL reporting within the Commission; 9 10 (2) the use of XBRL data by Commission officials; 11 (3) the use of XBRL data by investors; 12 (4) the results of the analysis required by sec- 13 tion 412; and 14 (5) any additional information the Commission 15 considers relevant for increasing transparency, de- 16 creasing costs, and increasing efficiency of regu- 17 latory filings with the Commission. 18 19 SEC. 414. DEFINITIONS. As used in this subtitle, the terms ‘‘Commission’’, 20 ‘‘emerging growth company’’, ‘‘issuer’’, and ‘‘securities 21 laws’’ have the meanings given such terms in section 3 22 of the Securities Exchange Act of 1934 (15 U.S.C. 78c). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00197 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 198 3 Subtitle D—Securities and Exchange Commission Overpayment Credit 4 SEC. 416. REFUNDING OR CREDITING OVERPAYMENT OF 1 2 5 6 SECTION 31 FEES. (a) IN GENERAL.—Section 31 of the Securities Ex- 7 change Act of 1934 (15 U.S.C. 78ee) is amended by add8 ing at the end the following: 9 ‘‘(n) OVERPAYMENT.—If a national securities ex- 10 change or national securities association pays to the Com11 mission an amount in excess of fees and assessments due 12 under this section and informs the Commission of such 13 amount paid in excess within 10 years of the date of the 14 payment, the Commission shall offset future fees and as15 sessments due by such exchange or association in an 16 amount equal to such excess amount.’’. 17 (b) APPLICABILITY.—The amendment made by this 18 section shall apply to any fees and assessments paid be19 fore, on, or after the date of enactment of this section. 21 Subtitle E—Fair Access to Investment Research 22 SEC. 421. SAFE HARBOR FOR INVESTMENT FUND RE- 20 23 24 SEARCH. (a) EXPANSION OF THE SAFE HARBOR.—Not later 25 than the end of the 45-day period beginning on the date G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00198 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 199 1 of enactment of this Act, the Securities and Exchange 2 Commission shall propose, and not later than the end of 3 the 120-day period beginning on such date, the Commis4 sion shall adopt, upon such terms, conditions, or require5 ments as the Commission may determine necessary or ap6 propriate in the public interest, for the protection of inves7 tors, and for the promotion of capital formation, revisions 8 to section 230.139 of title 17, Code of Federal Regula9 tions, to provide that a covered investment fund research 10 report that is published or distributed by a broker or deal11 er— 12 (1) shall be deemed, for purposes of sections 13 2(a)(10) and 5(c) of the Securities Act of 1933 (15 14 U.S.C. 77b(a)(10), 77e(c)), not to constitute an 15 offer for sale or an offer to sell a security that is the 16 subject of an offering pursuant to a registration 17 statement that is effective, even if the broker or 18 dealer is participating or will participate in the reg- 19 istered offering of the covered investment fund’s se- 20 curities; and 21 (2) shall be deemed to satisfy the conditions of 22 subsection (a)(1) or (a)(2) of section 230.139 of title 23 17, Code of Federal Regulations, or any successor 24 provisions, for purposes of the Commission’s rules G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00199 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 200 1 and regulations under the Federal securities laws 2 and the rules of any self-regulatory organization. 3 (b) IMPLEMENTATION OF SAFE HARBOR.—In imple- 4 menting the safe harbor pursuant to subsection (a), the 5 Commission shall— 6 (1) not, in the case of a covered investment 7 fund with a class of securities in substantially con- 8 tinuous distribution, condition the safe harbor on 9 whether the broker’s or dealer’s publication or dis- 10 tribution of a covered investment fund research re- 11 port constitutes such broker’s or dealer’s initiation 12 or reinitiation of research coverage on such covered 13 investment fund or its securities; 14 (2) not— 15 (A) require the covered investment fund to 16 have been registered as an investment company 17 under the Investment Company Act of 1940 18 (15 U.S.C. 80a–1 et seq.) or subject to the re- 19 porting requirements of section 13 or 15(d) of 20 the Securities Exchange Act of 1934 (15 21 U.S.C. 78m, 78o(d)) for any period exceeding 22 the period of time referenced under paragraph 23 (a)(1)(i)(A)(1) of section 230.139 of title 17, 24 Code of Federal Regulations; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00200 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 201 1 (B) impose a minimum float provision ex- 2 ceeding 3 (a)(1)(i)(A)(1)(i) of section 230.139 of title 17, 4 Code of Federal Regulations; 5 (3) provide that a self-regulatory organization 6 may not maintain or enforce any rule that would— 7 (A) prohibit the ability of a member to 8 publish or distribute a covered investment fund 9 research report solely because the member is 10 also participating in a registered offering or 11 other distribution of any securities of such cov- 12 ered investment fund; or referenced in paragraph 13 (B) prohibit the ability of a member to 14 participate in a registered offering or other dis- 15 tribution of securities of a covered investment 16 fund solely because the member has published 17 or distributed a covered investment fund re- 18 search report about such covered investment 19 fund or its securities; and 20 (4) provide that a covered investment fund re- 21 search report shall not be subject to section 24(b) of 22 the Investment Company Act of 1940 (15 U.S.C. 23 80a–24(b)) or the rules and regulations thereunder, 24 except that such report may still be subject to such 25 section and the rules and regulations thereunder to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 that 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00201 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 202 1 the extent that it is otherwise not subject to the con- 2 tent standards in the rules of any self-regulatory or- 3 ganization related to research reports, including 4 those contained in the rules governing communica- 5 tions with the public regarding investment compa- 6 nies or substantially similar standards. 7 (c) RULES OF CONSTRUCTION.—Nothing in this Act 8 shall be construed as in any way limiting— 9 (1) the applicability of the antifraud or 10 antimanipulation provisions of the Federal securities 11 laws and rules adopted thereunder to a covered in- 12 vestment fund research report, including section 17 13 of the Securities Act of 1933 (15 U.S.C. 77q), sec- 14 tion 34(b) of the Investment Company Act of 1940 15 (15 U.S.C. 80a–33), and sections 9 and 10 of the 16 Securities Exchange Act of 1934 (15 U.S.C. 78i, 17 78j); or 18 (2) the authority of any self-regulatory organi- 19 zation to examine or supervise a member’s practices 20 in connection with such member’s publication or dis- 21 tribution of a covered investment fund research re- 22 port for compliance with applicable provisions of the 23 Federal securities laws or self-regulatory organiza- 24 tion rules related to research reports, including those G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00202 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 203 1 contained in rules governing communications with 2 the public. 3 (d) INTERIM EFFECTIVENESS 4 (1) IN SAFE HARBOR.— and after the 120-day 5 period beginning on the date of enactment of this 6 Act, if the Commission has not adopted revisions to 7 section 230.139 of title 17, Code of Federal Regula- 8 tions, as required by subsection (a), and until such 9 time as the Commission has done so, a broker or 10 dealer distributing or publishing a covered invest- 11 ment fund research report after such date shall be 12 able to rely on the provisions of section 230.139 of 13 title 17, Code of Federal Regulations, and the 14 broker or dealer’s publication of such report shall be 15 deemed to satisfy the conditions of subsection (a)(1) 16 or (a)(2) of section 230.139 of title 17, Code of Fed- 17 eral Regulations, if the covered investment fund that 18 is the subject of such report satisfies the reporting 19 history requirements (without regard to Form S–3 20 or Form F–3 eligibility) and minimum float provi- 21 sions of such subsections for purposes of the Com- 22 mission’s rules and regulations under the Federal 23 securities laws and the rules of any self-regulatory 24 organization, as if revised and implemented in ac- 25 cordance with subsections (a) and (b). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—From OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00203 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 204 1 (2) STATUS 2 After such period and until the Commission has 3 adopted revisions to section 230.139 and FINRA 4 has revised rule 2210, for purposes of subsection 5 (c)(7)(O) of such rule, a covered investment fund 6 shall be deemed to be a security that is listed on a 7 national securities exchange and that is not subject 8 to section 24(b) of the Investment Company Act of 9 1940 (15 U.S.C. 80a–24(b)). Communications con- 10 cerning only covered investment funds that fall with- 11 in the scope of such section shall not be required to 12 be filed with FINRA. 13 (e) DEFINITIONS.—For purposes of this section: 14 (1) The term ‘‘covered investment fund re- 15 search report’’ means a research report published or 16 distributed by a broker or dealer about a covered in- 17 vestment fund or any securities issued by the cov- 18 ered investment fund, but not including a research 19 report to the extent that it is published or distrib- 20 uted by the covered investment fund or any affiliate 21 of the covered investment fund. 22 23 (2) The term ‘‘covered investment fund’’ means— 24 (A) an investment company registered 25 under, or that has filed an election to be treated G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF COVERED INVESTMENT FUND.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00204 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 205 1 as a business development company under, the 2 Investment Company Act of 1940 and that has 3 filed a registration statement under the Securi- 4 ties Act of 1933 for the public offering of a 5 class of its securities, which registration state- 6 ment has been declared effective by the Com- 7 mission; and 8 (B) a trust or other person— 9 (i) issuing securities in an offering 10 registered under the Securities Act of 1933 11 and which class of securities is listed for 12 trading on a national securities exchange; 13 (ii) the assets of which consist pri- 14 marily of commodities, currencies, or deriv- 15 ative instruments that reference commod- 16 ities or currencies, or interests in the fore- 17 going; and 18 (iii) that provides in its registration 19 statement under the Securities Act of 1933 20 that a class of its securities are purchased 21 or redeemed, subject to conditions or limi- 22 tations, for a ratable share of its assets. 23 (3) The term ‘‘FINRA’’ means the Financial 24 Industry Regulatory Authority. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00205 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 206 1 (4) The term ‘‘research report’’ has the mean- 2 ing given that term under section 2(a)(3) of the Se- 3 curities Act of 1933 (15 U.S.C. 77b(a)(3)), except 4 that such term shall not include an oral communica- 5 tion. 6 (5) The term ‘‘self-regulatory organization’’ has 7 the meaning given to that term under section 8 3(a)(26) of the Securities Exchange Act of 1934 (15 9 U.S.C. 78c(a)(26)). 10 11 12 13 Subtitle F—Accelerating Access to Capital SEC. 426. EXPANDED ELIGIBILITY FOR USE OF FORM S–3. Not later than 45 days after the date of the enact- 14 ment of this Act, the Securities and Exchange Commission 15 shall revise Form S–3— 16 (1) so as to permit securities to be registered 17 pursuant to General Instruction I.B.1. of such form 18 provided that either— 19 (A) the aggregate market value of the vot- 20 ing and non-voting common equity held by non- 21 affiliates of the registrant is $75,000,000 or 22 more; or 23 (B) the registrant has at least one class of 24 common equity securities listed and registered 25 on a national securities exchange; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00206 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 207 1 (2) so as to remove the requirement of para- 2 graph (c) from General Instruction I.B.6. of such 3 form. 4 5 6 Subtitle G—Enhancing the RAISE Act SEC. 431. CERTAIN 7 8 ACCREDITED INVESTOR TRANS- ACTIONS. Section 4 of the Securities Act of 1933 (15 U.S.C. 9 77d) is amended— 10 (1) by amending subsection (d) to read as fol- 11 lows: 12 ‘‘(d)(1) The transactions referred to in subsection 13 (a)(7) are transactions where— 14 ‘‘(A) each purchaser is an accredited inves- 15 tor, as that term is defined in section 16 230.501(a) of title 17, Code of Federal Regula- 17 tions (or any successor thereto); and 18 ‘‘(B) if any securities sold in reliance on 19 subsection (a)(7) are offered by means of any 20 general solicitation or general advertising, all 21 such sales are made through a platform avail- 22 able only to accredited investors. 23 ‘‘(2) Securities sold in reliance on subsection (a)(7) 24 shall be deemed to have been acquired in a transaction 25 not involving any public offering. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00207 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 208 1 ‘‘(3) The exemption provided by this subsection shall 2 not be available for a transaction where the seller is— 3 ‘‘(A) an issuer, its subsidiaries or parent; 4 ‘‘(B) an underwriter acting on behalf of the 5 issuer, its subsidiaries or parent, which receives com- 6 pensation from the issuer with respect to such sale; 7 or 8 9 ‘‘(C) a dealer. ‘‘(4) A transaction meeting the requirements of this 10 subsection shall be deemed not to be a distribution for 11 purposes of section 2(a)(11).’’; and 12 (2) by striking subsection (e). 14 Subtitle H—Small Business Credit Availability 15 SEC. 436. BUSINESS DEVELOPMENT COMPANY OWNERSHIP 16 OF SECURITIES OF INVESTMENT ADVISERS 17 AND CERTAIN FINANCIAL COMPANIES. 13 18 (a) IN GENERAL.—Section 60 of the Investment 19 Company Act of 1940 (15 U.S.C. 80a–59) is amended— 20 21 (1) by striking ‘‘Notwithstanding’’ and inserting ‘‘(a) Notwithstanding’’; 22 (2) by striking ‘‘except that the Commission 23 shall not’’ and inserting the following: ‘‘except 24 that— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00208 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 209 1 ‘‘(1) section 12 shall not apply to the pur- 2 chasing, otherwise acquiring, or holding by a busi- 3 ness development company of any security issued by, 4 or any other interest in the business of, any person 5 who is an investment adviser registered under title 6 II of this Act, who is an investment adviser to an 7 investment company, or who is an eligible portfolio 8 company; and 9 ‘‘(2) the Commission shall not’’; 10 11 (3) by adding at the end the following: ‘‘(b) Nothing in this section shall prevent the Com- 12 mission from issuing rules to address potential conflicts 13 of interest between business development companies and 14 investment advisers.’’. 15 16 (b) DEFINITION PANY.—Section OF ELIGIBLE PORTFOLIO COM- 2(a)(46)(B) of the Investment Company 17 Act of 1940 (15 U.S.C. 80a–2(a)(46)(B)) is amended by 18 inserting before the semicolon the following: ‘‘(unless it 19 is described in paragraph (2), (3), (4), (5), (6), or (9) of 20 such section)’’. 21 (c) INVESTMENT THRESHOLD.—Section 55(a) of the 22 Investment Company Act of 1940 is amended by inserting 23 before the colon the following: ‘‘, provided that no more 24 than 50 percent of its total assets are assets described 25 in section 3(c)’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00209 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 210 1 SEC. 437. EXPANDING ACCESS TO CAPITAL FOR BUSINESS 2 DEVELOPMENT COMPANIES. 3 (a) IN GENERAL.—Section 61(a) of the Investment 4 Company Act of 1940 (15 U.S.C. 80a–60(a)) is amend5 ed— 6 7 (1) by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; 8 9 (2) by striking paragraph (1) and inserting the following: 10 ‘‘(1) Except as provided in paragraph (2), the 11 asset coverage requirements of subparagraphs (A) 12 and (B) of section 18(a)(1) (and any related rule 13 promulgated under this Act) applicable to business 14 development companies shall be 200 percent. 15 ‘‘(2) The asset coverage requirements of sub- 16 paragraphs (A) and (B) of section 18(a)(1) and of 17 subparagraphs (A) and (B) of section 18(a)(2) (and 18 any related rule promulgated under this Act) appli- 19 cable to a business development company shall be 20 150 percent if— 21 ‘‘(A) within five business days of the ap- 22 proval of the adoption of the asset coverage re- 23 quirements described in clause (ii), the business 24 development company discloses such approval 25 and the date of its effectiveness in a Form 8- 26 K filed with the Commission and in a notice on G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00210 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 211 1 its website and discloses in its periodic filings 2 made under section 13 of the Securities and 3 Exchange Act of 1934 (15 U.S.C. 78m)— 4 ‘‘(i) the aggregate value of the senior 5 securities issued by such company and the 6 asset coverage percentage as of the date of 7 such company’s most recent financial 8 statements; and 9 ‘‘(ii) that such company has adopted 10 the asset coverage requirements of this 11 subparagraph and the effective date of 12 such requirements; 13 ‘‘(B) with respect to a business develop- 14 ment company that issues equity securities that 15 are registered on a national securities exchange, 16 the periodic filings of the company under sec- 17 tion 13(a) of the Securities Exchange Act of 18 1934 (15 U.S.C. 78m) include disclosures rea- 19 sonably designed to ensure that shareholders 20 are informed of— 21 ‘‘(i) the amount of indebtedness and 22 asset coverage ratio of the company, deter- 23 mined as of the date of the financial state- 24 ments of the company dated on or most re- 25 cently before the date of such filing; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00211 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 212 1 ‘‘(ii) the principal risk factors associ- 2 ated with such indebtedness, to the extent 3 such risk is incurred by the company; and 4 ‘‘(C)(i) the application of this paragraph to 5 the company is approved by the required major- 6 ity (as defined in section 57(o)) of the directors 7 of or general partners of such company who are 8 not interested persons of the business develop- 9 ment company, which application shall become 10 effective on the date that is 1 year after the 11 date of the approval, and, with respect to a 12 business development company that issues eq- 13 uity securities that are not registered on a na- 14 tional securities exchange, the company extends, 15 to each person who is a shareholder as of the 16 date of the approval, an offer to repurchase the 17 equity securities held by such person as of such 18 approval date, with 25 percent of such securi- 19 ties to be repurchased in each of the four quar- 20 ters following such approval date; or 21 ‘‘(ii) the company obtains, at a special or 22 annual meeting of shareholders or partners at 23 which a quorum is present, the approval of 24 more than 50 percent of the votes cast of the 25 application of this paragraph to the company, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00212 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 213 1 which application shall become effective on the 2 date immediately after the date of the ap- 3 proval.’’; 4 (3) in paragraph (3) (as redesignated), by in- 5 serting ‘‘or which is a stock’’ after ‘‘indebtedness’’; 6 (4) in subparagraph (A) of paragraph (4) (as 7 redesignated)— 8 (A) in the matter preceding clause (i), by 9 striking ‘‘voting’’; and 10 (B) by amending clause (iii) to read as fol- 11 lows: 12 ‘‘(iii) the exercise or conversion price 13 at the date of issuance of such warrants, 14 options, or rights is not less than— 15 ‘‘(I) the market value of the se- 16 curities issuable upon the exercise of 17 such warrants, options, or rights at 18 the date of issuance of such warrants, 19 options, or rights; or 20 ‘‘(II) if no such market value ex- 21 ists, the net asset value of the securi- 22 ties issuable upon the exercise of such 23 warrants, options, or rights at the 24 date of issuance of such warrants, op- 25 tions, or rights; and’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00213 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 214 1 (5) by adding at the end the following: 2 ‘‘(6)(A) Except as provided in subparagraph 3 (B), the following shall not apply to a business de- 4 velopment company: 5 ‘‘(i) Subparagraphs (C) and (D) of section 6 18(a)(2). 7 ‘‘(ii) Subparagraph (E) of section 18(a)(2), 8 to the extent such subparagraph requires any 9 priority over any other class of stock as to dis- 10 tribution of assets upon liquidation. 11 ‘‘(iii) With respect to a senior security 12 which is a stock, subsections (c) and (i) of sec- 13 tion 18. 14 ‘‘(B) Subparagraph (A) shall not apply with re- 15 spect to preferred stock issued to a person who is 16 not known by the company to be a qualified institu- 17 tional buyer (as defined in section 3(a) of the Secu- 18 rities Exchange Act of 1934).’’. 19 (b) CONFORMING AMENDMENTS.—The Investment 20 Company Act of 1940 (15 U.S.C. 80a–1 et seq.) is amend21 ed— 22 (1) in section 57— 23 (A) in subsection (j)(1), by striking ‘‘sec- 24 tion 25 61(a)(4)(B)’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 61(a)(3)(B)’’ and inserting ‘‘section (657255 10) PO 00000 Frm 00214 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 215 1 (B) in subsection (n)(2), by striking ‘‘sec- 2 tion 3 61(a)(4)(B)’’; and 4 (2) in section 63(3), by striking ‘‘section 5 6 61(a)(3)(B)’’ inserting ‘‘section 61(a)(3)’’ and inserting ‘‘section 61(a)(4)’’. SEC. 438. PARITY FOR BUSINESS DEVELOPMENT COMPA- 7 NIES 8 RULES. 9 and (a) REVISION REGARDING TO OFFERING AND PROXY RULES.—Not later than 1 year 10 after the date of enactment of this Act, the Securities and 11 Exchange Commission shall revise any rules to the extent 12 necessary to allow a business development company that 13 has filed an election pursuant to section 54 of the Invest14 ment Company Act of 1940 (15 U.S.C. 80a–53) to use 15 the securities offering and proxy rules that are available 16 to other issuers that are required to file reports under sec17 tion 13 or section 15(d) of the Securities Exchange Act 18 of 1934 (15 U.S.C. 78m; 78o(d)). Any action that the 19 Commission takes pursuant to this subsection shall in20 clude the following: 21 22 (1) The Commission shall revise rule 405 under the Securities Act of 1933 (17 C.F.R. 230.405)— 23 (A) to remove the exclusion of a business 24 development company from the definition of a G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00215 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 216 1 well-known seasoned issuer provided by that 2 rule; and 3 (B) to add registration statements filed on 4 Form N–2 to the definition of automatic shelf 5 registration statement provided by that rule. 6 (2) The Commission shall revise rules 168 and 7 169 under the Securities Act of 1933 (17 C.F.R. 8 230.168 and 230.169) to remove the exclusion of a 9 business development company from an issuer that 10 can use the exemptions provided by those rules. 11 (3) The Commission shall revise rules 163 and 12 163A under the Securities Act of 1933 (17 C.F.R. 13 230.163 and 230.163A) to remove a business devel- 14 opment company from the list of issuers that are in- 15 eligible to use the exemptions provided by those 16 rules. 17 (4) The Commission shall revise rule 134 under 18 the Securities Act of 1933 (17 C.F.R. 230.134) to 19 remove the exclusion of a business development com- 20 pany from that rule. 21 (5) The Commission shall revise rules 138 and 22 139 under the Securities Act of 1933 (17 C.F.R. 23 230.138 and 230.139) to specifically include a busi- 24 ness development company as an issuer to which 25 those rules apply. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00216 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 217 1 (6) The Commission shall revise rule 164 under 2 the Securities Act of 1933 (17 C.F.R. 230.164) to 3 remove a business development company from the 4 list of issuers that are excluded from that rule. 5 (7) The Commission shall revise rule 433 under 6 the Securities Act of 1933 (17 C.F.R. 230.433) to 7 specifically include a business development company 8 that is a well-known seasoned issuer as an issuer to 9 which that rule applies. 10 11 (8) The Commission shall revise rule 415 under the Securities Act of 1933 (17 C.F.R. 230.415)— 12 (A) to state that the registration for secu- 13 rities provided by that rule includes securities 14 registered by a business development company 15 on Form N–2; and 16 (B) to provide an exception for a business 17 development company from the requirement 18 that a Form N–2 registrant must furnish the 19 undertakings required by item 34.4 of Form N– 20 2. 21 (9) The Commission shall revise rule 497 under 22 the Securities Act of 1933 (17 C.F.R. 230.497) to 23 include a process for a business development com- 24 pany to file a form of prospectus that is parallel to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00217 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 218 1 the process for filing a form of prospectus under 2 rule 424(b). 3 (10) The Commission shall revise rules 172 and 4 173 under the Securities Act of 1933 (17 C.F.R. 5 230.172 and 230.173) to remove the exclusion of an 6 offering of a business development company from 7 those rules. 8 (11) The Commission shall revise rule 418 9 under the Securities Act of 1933 (17 C.F.R. 10 230.418) to provide that a business development 11 company that would otherwise meet the eligibility re- 12 quirements of General Instruction I.A of Form S–3 13 shall be exempt from paragraph (a)(3) of that rule. 14 (12) The Commission shall revise rule 14a–101 15 under the Securities Exchange Act of 1934 (17 16 C.F.R. 240.14a–101) to provide that a business de- 17 velopment company that would otherwise meet the 18 requirements of General Instruction I.A of Form S– 19 3 shall be deemed to meet the requirements of Form 20 S–3 for purposes of Schedule 14A. 21 (13) The Commission shall revise rule 103 22 under Regulation FD (17 C.F.R. 243.103) to pro- 23 vide that paragraph (a) of that rule applies for pur- 24 poses of Form N–2. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00218 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 219 1 (b) REVISION TO FORM N–2.—Not later than 1 year 2 after the date of enactment of this Act, the Commission 3 shall revise Form N–2— 4 (1) to include an item or instruction that is 5 similar to item 12 on Form S–3 to provide that a 6 business development company that would otherwise 7 meet the requirements of Form S–3 shall incor- 8 porate by reference its reports and documents filed 9 under the Securities Exchange Act of 1934 into its 10 registration statement filed on Form N–2; and 11 (2) to include an item or instruction that is 12 similar to the instruction regarding automatic shelf 13 offerings by well-known seasoned issuers on Form 14 S–3 to provide that a business development company 15 that is a well-known seasoned issuer may file auto- 16 matic shelf offerings on Form N–2. 17 (c) TREATMENT IF REVISIONS NOT COMPLETED IN 18 TIMELY MANNER.—If the Commission fails to complete 19 the revisions required by subsections (a) and (b) by the 20 time required by such subsections, a business development 21 company shall be entitled to treat such revisions as having 22 been completed in accordance with the actions required to 23 be taken by the Commission by such subsections until such 24 time as such revisions are completed by the Commission. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 220 1 (d) RULE OF CONSTRUCTION.—Any reference in this 2 section to a rule or form means such rule or form or any 3 successor rule or form. 4 Subtitle I—Fostering Innovation 5 SEC. 441. TEMPORARY EXEMPTION FOR LOW-REVENUE 6 7 ISSUERS. Section 404 of the Sarbanes-Oxley Act of 2002 (15 8 U.S.C. 7262) is amended by adding at the end the fol9 lowing: 10 ‘‘(d) TEMPORARY EXEMPTION FOR LOW-REVENUE 11 ISSUERS.— 12 ‘‘(1) LOW-REVENUE 13 (b) shall not apply with respect to an audit report 14 prepared for an issuer that— 15 ‘‘(A) ceased to be an emerging growth 16 company on the last day of the fiscal year of 17 the issuer following the fifth anniversary of the 18 date of the first sale of common equity securi- 19 ties of the issuer pursuant to an effective reg- 20 istration statement under the Securities Act of 21 1933; 22 ‘‘(B) had average annual gross revenues of 23 less than $50,000,000 as of its most recently 24 completed fiscal year; and 25 ‘‘(C) is not a large accelerated filer. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EXEMPTION.—Subsection 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00220 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 221 1 ‘‘(2) EXPIRATION TEMPORARY EXEMP- 2 TION.—An 3 tion described under paragraph (1) at the earliest 4 of— issuer ceases to be eligible for the exemp- 5 ‘‘(A) the last day of the fiscal year of the 6 issuer following the tenth anniversary of the 7 date of the first sale of common equity securi- 8 ties of the issuer pursuant to an effective reg- 9 istration statement under the Securities Act of 10 1933; 11 ‘‘(B) the last day of the fiscal year of the 12 issuer during which the average annual gross 13 revenues of the issuer exceed $50,000,000; or 14 ‘‘(C) the date on which the issuer becomes 15 a large accelerated filer. 16 ‘‘(3) DEFINITIONS.—For purposes of this sub- 17 section: 18 ‘‘(A) AVERAGE ANNUAL GROSS REVE- 19 NUES.—The 20 nues’ means the total gross revenues of an 21 issuer over its most recently completed three 22 fiscal years divided by three. 23 GROWTH COMPANY.—The term ‘emerging growth company’ has the mean- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 term ‘average annual gross reve- ‘‘(B) EMERGING 24 VerDate 0ct 09 2002 OF Jkt 000000 (657255 10) PO 00000 Frm 00221 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 222 1 ing given such term under section 3 of the Se- 2 curities Exchange Act of 1934 (15 U.S.C. 78c). 3 ‘‘(C) LARGE ACCELERATED FILER.—The 4 term ‘large accelerated filer’ has the meaning 5 given that term under section 240.12b–2 of title 6 17, Code of Federal Regulations, or any suc- 7 cessor thereto.’’. 8 9 Subtitle J—Small Business Capital Formation Enhancement 10 SEC. 446. ANNUAL REVIEW OF GOVERNMENT-BUSINESS 11 FORUM ON CAPITAL FORMATION. 12 Section 503 of the Small Business Investment Incen- 13 tive Act of 1980 (15 U.S.C. 80c–1) is amended by adding 14 at the end the following: 15 ‘‘(e) The Commission shall— 16 17 ‘‘(1) review the findings and recommendations of the forum; and 18 ‘‘(2) each time the forum submits a finding or 19 recommendation to the Commission, promptly issue 20 a public statement— 21 ‘‘(A) assessing the finding or recommenda- 22 tion of the forum; and 23 ‘‘(B) disclosing the action, if any, the Com- 24 mission intends to take with respect to the find- 25 ing or recommendation.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00222 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 223 1 2 3 4 Subtitle K—Helping Angels Lead Our Startups SEC. 451. DEFINITION OF ANGEL INVESTOR GROUP. As used in this subtitle, the term ‘‘angel investor 5 group’’ means any group that— 6 (1) is composed of accredited investors inter- 7 ested in investing personal capital in early-stage 8 companies; 9 (2) holds regular meetings and has defined 10 processes and procedures for making investment de- 11 cisions, either individually or among the membership 12 of the group as a whole; and 13 14 15 16 (3) is neither associated nor affiliated with brokers, dealers, or investment advisers. SEC. 452. CLARIFICATION OF GENERAL SOLICITATION. (a) IN GENERAL.—Not later than 6 months after the 17 date of enactment of this Act, the Securities and Ex18 change Commission shall revise Regulation D of its rules 19 (17 C.F.R. 230.500 et seq.) to require that in carrying 20 out the prohibition against general solicitation or general 21 advertising contained in section 230.502(c) of title 17, 22 Code of Federal Regulations, the prohibition shall not 23 apply to a presentation or other communication made by 24 or on behalf of an issuer which is made at an event— 25 (1) sponsored by— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00223 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 224 1 (A) the United States or any territory 2 thereof, by the District of Columbia, by any 3 State, by a political subdivision of any State or 4 territory, or by any agency or public instrumen- 5 tality of any of the foregoing; 6 (B) a college, university, or other institu- 7 tion of higher education; 8 (C) a nonprofit organization; 9 (D) an angel investor group; 10 (E) a venture forum, venture capital asso- 11 ciation, or trade association; or 12 (F) any other group, person or entity as 13 the Securities and Exchange Commission may 14 determine by rule; 15 (2) where any advertising for the event does not 16 reference any specific offering of securities by the 17 issuer; 18 (3) the sponsor of which— 19 (A) not make investment rec- 20 ommendations or provide investment advice to 21 event attendees; 22 (B) does not engage in an active role in 23 any investment negotiations between the issuer 24 and investors attending the event; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 does 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00224 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 225 1 (C) does not charge event attendees any 2 fees other than administrative fees; and 3 (D) does not receive any compensation 4 with respect to such event that would require 5 registration of the sponsor as a broker or a 6 dealer under the Securities Exchange Act of 7 1934, or as an investment advisor under the In- 8 vestment Advisers Act of 1940; and 9 (4) where no specific information regarding an 10 offering of securities by the issuer is communicated 11 or distributed by or on behalf of the issuer, other 12 than— 13 (A) that the issuer is in the process of of- 14 fering securities or planning to offer securities; 15 (B) the type and amount of securities 16 being offered; 17 (C) the amount of securities being offered 18 that have already been subscribed for; and 19 (D) the intended use of proceeds of the of- 20 21 fering. (b) RULE OF CONSTRUCTION.—Subsection (a) may 22 only be construed as requiring the Securities and Ex23 change Commission to amend the requirements of Regula24 tion D with respect to presentations and communications, 25 and not with respect to purchases or sales. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00225 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 226 1 2 3 Subtitle L—Main Street Growth SEC. 456. VENTURE EXCHANGES. (a) SECURITIES EXCHANGE ACT OF 1934.—Section 4 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) 5 is amended by adding at the end the following: 6 ‘‘(m) VENTURE EXCHANGE.— 7 ‘‘(1) REGISTRATION.— 8 ‘‘(A) IN national securities 9 exchange may elect to be treated (or for a list- 10 ing tier of such exchange to be treated) as a 11 venture exchange by notifying the Commission 12 of such election, either at the time the exchange 13 applies to be registered as a national securities 14 exchange or after registering as a national secu- 15 rities exchange. 16 ‘‘(B) DETERMINATION TIME PERIOD.— 17 With respect to a securities exchange electing to 18 be treated (or for a listing tier of such exchange 19 to be treated) as a venture exchange— 20 ‘‘(i) at the time the exchange applies 21 to be registered as a national securities ex- 22 change, such application and election shall 23 be deemed to have been approved by the 24 Commission unless the Commission denies 25 such application before the end of the 6- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—A 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00226 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 227 1 month period beginning on the date the 2 Commission received such application; and 3 ‘‘(ii) after registering as a national se- 4 curities exchange, such election shall be 5 deemed to have been approved by the Com- 6 mission unless the Commission denies such 7 approval before the end of the 6-month pe- 8 riod beginning on the date the Commission 9 received notification of such election. 10 11 ‘‘(2) POWERS venture exchange— 12 ‘‘(A) may only constitute, maintain, or pro- 13 vide a market place or facilities for bringing to- 14 gether purchasers and sellers of venture securi- 15 ties; 16 ‘‘(B) may determine the increment to be 17 used for quoting and trading venture securities 18 on the exchange; 19 ‘‘(C) shall disseminate last sale and 20 quotation information on terms that are fair 21 and reasonable and not unreasonably discrimi- 22 natory; 23 ‘‘(D) may choose to carry out periodic auc- 24 tions for the sale of a venture security instead G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND RESTRICTIONS.—A 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00227 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 228 1 of providing continuous trading of the venture 2 security; and 3 ‘‘(E) may not extend unlisted trading 4 privileges to any venture security. 5 ‘‘(3) EXEMPTIONS 6 SECURITY EXCHANGE REGULATIONS.—A 7 change shall not be required to— venture ex- 8 ‘‘(A) comply with any of sections 242.600 9 through 242.612 of title 17, Code of Federal 10 Regulations; 11 ‘‘(B) comply with any of sections 242.300 12 through 242.303 of title 17, Code of Federal 13 Regulations; 14 ‘‘(C) submit any data to a securities infor- 15 mation processor; or 16 ‘‘(D) use decimal pricing. 17 ‘‘(4) TREATMENT OF CERTAIN EXEMPTED SE- 18 CURITIES.—A 19 tion pursuant to section 3(b) of the Securities Act 20 of 1933 shall be exempt from section 12(a) of this 21 title with respect to the trading of such security on 22 a venture exchange, if the issuer of such security is 23 in compliance with all disclosure obligations of such 24 section 3(b) and the regulations issued under such 25 section. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FROM CERTAIN NATIONAL 15:00 Apr 19, 2017 Jkt 000000 security that is exempt from registra- (657255 10) PO 00000 Frm 00228 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 229 1 2 ‘‘(5) DEFINITIONS.—For purposes of this subsection: 3 ‘‘(A) EARLY-STAGE, 4 ‘‘(i) IN GENERAL.—The term ‘early- 5 stage, growth company’ means an issuer— 6 ‘‘(I) that has not made an initial 7 public offering of any securities of the 8 issuer; and 9 ‘‘(II) with a market capitalization 10 of $1,000,000,000 (as such amount is 11 indexed for inflation every 5 years by 12 the Commission to reflect the change 13 in the Consumer Price Index for All 14 Urban Consumers published by the 15 Bureau of Labor Statistics, setting 16 the 17 $1,000,000) or less. 18 ‘‘(ii) 19 threshold TREATMENT to the nearest WHEN MARKET CAPITALIZATION EXCEEDS THRESHOLD.— 20 ‘‘(I) IN GENERAL.—In the case 21 of an issuer that is an early-stage, 22 growth company the securities of 23 which are traded on a venture ex- 24 change, such issuer shall not cease to 25 be an early-stage, growth company by G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GROWTH COMPANY.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 230 1 reason of the market capitalization of 2 such issuer exceeding the threshold 3 specified in clause (i)(II) until the end 4 of the period of 24 consecutive 5 months during which the market cap- 6 italization of such issuer exceeds 7 $2,000,000,000 (as such amount is 8 indexed for inflation every 5 years by 9 the Commission to reflect the change 10 in the Consumer Price Index for All 11 Urban Consumers published by the 12 Bureau of Labor Statistics, setting 13 the 14 $1,000,000). to the nearest 15 ‘‘(II) EXEMPTIONS.—If an issuer 16 would cease to be an early-stage, 17 growth company under subclause (I), 18 the venture exchange may, at the re- 19 quest of the issuer, exempt the issuer 20 from the market capitalization re- 21 quirements of this subparagraph for 22 the 1-year period that begins on the 23 day after the end of the 24-month pe- 24 riod described in such subclause. The 25 venture exchange may, at the request G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 threshold 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00230 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 231 1 of the issuer, extend the exemption for 2 1 additional year. 3 ‘‘(B) 4 VENTURE SECURITY.—The term ‘venture security’ means— 5 ‘‘(i) securities of an early-stage, 6 growth company that are exempt from reg- 7 istration pursuant to section 3(b) of the 8 Securities Act of 1933; and 9 ‘‘(ii) securities of an emerging growth 10 company.’’. 11 (b) SECURITIES ACT OF 1933.—Section 18(b)(1) of 12 the Securities Act of 1933 (15 U.S.C. 77r(b)(1)) is 13 amended— 14 15 (1) in subparagraph (B), by striking ‘‘or’’ at the end; 16 17 (2) in subparagraph (C), by striking the period and inserting ‘‘; or’’; and 18 (3) by adding at the end the following: 19 ‘‘(D) a venture security, as defined under 20 section 6(m)(5) of the Securities Exchange Act 21 of 1934.’’. 22 (c) SENSE OF CONGRESS.—It is the sense of the Con- 23 gress that the Securities and Exchange Commission 24 should— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00231 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 232 1 (1) when necessary or appropriate in the public 2 interest and consistent with the protection of inves- 3 tors, make use of the Commission’s general exemp- 4 tive authority under section 36 of the Securities Ex- 5 change Act of 1934 (15 U.S.C. 78mm) with respect 6 to the provisions added by this section; and 7 (2) if the Commission determines appropriate, 8 create an Office of Venture Exchanges within the 9 Commission’s Division of Trading and Markets. 10 (d) RULE OF CONSTRUCTION.—Nothing in this sec- 11 tion or the amendments made by this section shall be con12 strued to impair or limit the construction of the antifraud 13 provisions of the securities laws (as defined in section 3(a) 14 of the Securities Exchange Act of 1934 (15 U.S.C. 15 78c(a))) or the authority of the Securities and Exchange 16 Commission under those provisions. 17 18 (e) EFFECTIVE DATE TIONAL FOR TIERS OF EXISTING NA- SECURITIES EXCHANGES.—In the case of a secu- 19 rities exchange that is registered as a national securities 20 exchange under section 6 of the Securities Exchange Act 21 of 1934 (15 U.S.C. 78f) on the date of the enactment of 22 this Act, any election for a listing tier of such exchange 23 to be treated as a venture exchange under subsection (m) 24 of such section shall not take effect before the date that 25 is 180 days after such date of enactment. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00232 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 233 1 2 3 4 Subtitle M—Micro Offering Safe Harbor SEC. 461. EXEMPTIONS FOR MICRO-OFFERINGS. (a) IN GENERAL.—Section 4 of the Securities Act of 5 1933 (15 U.S.C. 77d) is amended— 6 7 (1) in subsection (a), by adding at the end the following: 8 9 ‘‘(8) transactions meeting the requirements of subsection (e).’’; and 10 (2) as amended by section 434(2), by adding at 11 the end the following: 12 ‘‘(e) CERTAIN MICRO-OFFERINGS.—The transactions 13 referred to in subsection (a)(8) are transactions involving 14 the sale of securities by an issuer (including all entities 15 controlled by or under common control with the issuer) 16 that meet all of the following requirements: 17 ‘‘(1) PRE-EXISTING pur- 18 chaser has a substantive pre-existing relationship 19 with an officer of the issuer, a director of the issuer, 20 or a shareholder holding 10 percent or more of the 21 shares of the issuer. 22 ‘‘(2) 35 OR FEWER PURCHASERS.—There are 23 no more than, or the issuer reasonably believes that 24 there are no more than, 35 purchasers of securities 25 from the issuer that are sold in reliance on the ex- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RELATIONSHIP.—Each 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00233 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 234 1 emption provided under subsection (a)(8) during the 2 12-month period preceding such transaction. 3 ‘‘(3) SMALL OFFERING AMOUNT.—The aggre- 4 gate amount of all securities sold by the issuer, in- 5 cluding any amount sold in reliance on the exemp- 6 tion provided under subsection (a)(8), during the 12- 7 month period preceding such transaction, does not 8 exceed $500,000.’’. 9 (b) EXEMPTION UNDER STATE REGULATIONS.—Sec- 10 tion 18(b)(4) of the Securities Act of 1933 (15 U.S.C. 11 77r(b)(4)) is amended— 12 13 (1) in subparagraph (F), by striking ‘‘or’’ at the end; 14 15 (2) in subparagraph (G), by striking the period and inserting ‘‘; or’’; and 16 (3) by adding at the end the following: 17 18 19 20 21 ‘‘(H) section 4(a)(8).’’. Subtitle N—Private Placement Improvement SEC. 466. REVISIONS TO SEC REGULATION D. Not later than 45 days following the date of the en- 22 actment of this Act, the Securities and Exchange Commis23 sion shall revise Regulation D (17 C.F.R. 501 et seq.) in 24 accordance with the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00234 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 235 1 (1) The Commission shall revise Form D filing 2 requirements to require an issuer offering or selling 3 securities in reliance on an exemption provided 4 under Rule 506 of Regulation D to file with the 5 Commission a single notice of sales containing the 6 information required by Form D for each new offer- 7 ing of securities no earlier than 15 days after the 8 date of the first sale of securities in the offering. 9 The Commission shall not require such an issuer to 10 file any notice of sales containing the information re- 11 quired by Form D except for the single notice de- 12 scribed in the previous sentence. 13 (2) The Commission shall make the information 14 contained in each Form D filing available to the se- 15 curities commission (or any agency or office per- 16 forming like functions) of each State and territory of 17 the United States and the District of Columbia. 18 (3) The Commission shall not condition the 19 availability of any exemption for an issuer under 20 Rule 506 of Regulation D (17 C.F.R. 230.506) on 21 the issuer’s or any other person’s filing with the 22 Commission of a Form D or any similar report. 23 (4) The Commission shall not require issuers to 24 submit written general solicitation materials to the 25 Commission in connection with a Rule 506(c) offer- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00235 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 236 1 ing, except when the Commission requests such ma- 2 terials pursuant to the Commission’s authority 3 under section 8A or section 20 of the Securities Act 4 of 1933 (15 U.S.C. 77h–1 or 77t) or section 9, 5 10(b), 21A, 21B, or 21C of the Securities Exchange 6 Act of 1934 (15 U.S.C. 78i, 78j(b), 78u–1, 78u–2, 7 or 78u–3). 8 (5) The Commission shall not extend the re- 9 quirements contained in Rule 156 to private funds. 10 (6) The Commission shall revise Rule 501(a) of 11 Regulation D to provide that a person who is a 12 ‘‘knowledgeable employee’’ of a private fund or the 13 fund’s investment adviser, as defined in Rule 3c– 14 5(a)(4) (17 C.F.R. 270.3c–5(a)(4)), shall be an ac- 15 credited investor for purposes of a Rule 506 offering 16 of a private fund with respect to which the person 17 is a knowledgeable employee. 19 Subtitle O—Supporting America’s Innovators 20 SEC. 471. INVESTOR LIMITATION FOR QUALIFYING VEN- 18 21 22 TURE CAPITAL FUNDS. Section 3(c)(1) of the Investment Company Act of 23 1940 (15 U.S.C. 80a–3(c)(1)) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00236 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 237 1 (1) by inserting after ‘‘one hundred persons’’ 2 the following: ‘‘(or, with respect to a qualifying ven- 3 ture capital fund, 500 persons)’’; and 4 (2) by adding at the end the following: 5 ‘‘(C) The term ‘qualifying venture capital 6 fund’ means any venture capital fund (as de- 7 fined pursuant to section 203(l)(1) of the In- 8 vestment Advisers Act of 1940 (15 U.S.C. 80b– 9 3(l)(1)) with no more than $50,000,000 in ag- 10 gregate capital contributions and uncalled com- 11 mitted capital, as such dollar amount is annu- 12 ally adjusted by the Commission to reflect the 13 change in the Consumer Price Index for All 14 Urban Consumers published by the Bureau of 15 Labor Statistics of the Department of Labor.’’. 16 17 18 Subtitle P—Fix Crowdfunding SEC. 476. CROWDFUNDING EXEMPTION. (a) SECURITIES ACT OF 1933.—Section 4(a) of the 19 Securities Act of 1933 (15 U.S.C. 77d) is amended by 20 striking paragraph (6) and inserting the following: 21 22 ‘‘(6) transactions involving the offer or sale of securities by an issuer, provided that— 23 ‘‘(A) in the case of a transaction involving 24 an intermediary between the issuer and the in- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00237 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 238 1 vestor, such intermediary complies with the re- 2 quirements under section 4A(a); and 3 ‘‘(B) in the case of a transaction not in- 4 volving an intermediary between the issuer and 5 the investor, the issuer complies with the re- 6 quirements under section 4A(b).’’. 7 (b) REQUIREMENTS TO QUALIFY FOR 8 CROWDFUNDING EXEMPTION.—Section 4A of the Securi9 ties Act of 1933 (15 U.S.C. 77d–1) is amended to read 10 as follows: 11 ‘‘SEC. 4A. REQUIREMENTS WITH RESPECT TO CERTAIN 12 13 SMALL TRANSACTIONS. ‘‘(a) REQUIREMENTS ON INTERMEDIARIES.—For 14 purposes of section 4(a)(6), a person acting as an inter15 mediary in a transaction involving the offer or sale of secu16 rities shall comply with the requirements of this subsection 17 if the intermediary— 18 ‘‘(1) investors, including on the 19 intermediary’s website used for the offer and sale of 20 such securities, of the speculative nature generally 21 applicable to investments in startups, emerging busi- 22 nesses, and small issuers, including risks in the sec- 23 ondary market related to illiquidity; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 warns 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00238 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 239 1 ‘‘(2) warns investors that they are subject to 2 the restriction on sales requirement described under 3 subsection (e); 4 5 ‘‘(3) takes reasonable measures to reduce the risk of fraud with respect to such transaction; 6 ‘‘(4) registers with the Commission and the Fi- 7 nancial Industry Regulatory Authority, including by 8 providing the Commission with the intermediary’s 9 physical address, website address, and the names of 10 the intermediary and employees of the intermediary, 11 and keep such information up-to-date; 12 13 ‘‘(5) provides the Commission with continuous investor-level access to the intermediary’s website; 14 15 ‘‘(6) requires each potential investor to answer questions demonstrating— 16 ‘‘(A) an understanding of the level of risk 17 generally applicable to investments in startups, 18 emerging businesses, and small issuers; 19 ‘‘(B) an understanding of the risk of 20 illiquidity; and 21 ‘‘(C) such other areas as the Commission 22 may determine appropriate by rule or regula- 23 tion, including information relating to the own- 24 ers’ and management’s experience, and any re- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00239 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 240 1 lated party transactions and conflicts of inter- 2 est; 3 ‘‘(7) carries out a background check on the 4 issuer’s principals; 5 ‘‘(8) provides the Commission and potential in- 6 vestors with notice of the offering not less than 10 7 days prior to such offering, not later than the first 8 day securities are offered to potential investors, in- 9 cluding— 10 ‘‘(A) the issuer’s name, legal status, phys- 11 ical address, and website address; 12 ‘‘(B) the names of the issuer’s principals; 13 ‘‘(C) the stated purpose and intended use 14 of the proceeds of the offering sought by the 15 issuer; and 16 ‘‘(D) the target offering amount and the 17 deadline to reach the target offering amount; 18 ‘‘(9) outsources cash-management functions to 19 a qualified third party custodian, such as a broker 20 or dealer registered under section 15(b)(1) of the 21 Securities Exchange Act of 1934, a trust company, 22 or an insured depository institution; 23 ‘‘(10) makes available on the intermediary’s 24 website a method of communication that permits the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00240 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 241 1 issuer and investors to communicate with one an- 2 other; 3 ‘‘(11) provides the Commission with a notice 4 upon completion of the offering, which shall include 5 the aggregate offering amount and the number of 6 purchasers; and 7 ‘‘(b) REQUIREMENTS 8 MEDIARY.—For ON ISSUERS IF NO INTER- purposes of section 4(a)(6), an issuer who 9 offers or sells securities without an intermediary shall 10 comply with the requirements of this subsection if the 11 issuer— 12 ‘‘(1) warns investors, including on the issuer’s 13 website, of the speculative nature generally applica- 14 ble to investments in startups, emerging businesses, 15 and small issuers, including risks in the secondary 16 market related to illiquidity; 17 ‘‘(2) warns investors that they are subject to 18 the restriction on sales requirement described under 19 subsection (e); 20 21 ‘‘(3) takes reasonable measures to reduce the risk of fraud with respect to such transaction; 22 ‘‘(4) provides the Commission with the issuer’s 23 physical address, website address, and the names of 24 the principals and employees of the issuers, and 25 keeps such information up-to-date; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00241 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 242 1 2 ‘‘(5) provides the Commission with continuous investor-level access to the issuer’s website; 3 4 ‘‘(6) requires each potential investor to answer questions demonstrating— 5 ‘‘(A) an understanding of the level of risk 6 generally applicable to investments in startups, 7 emerging businesses, and small issuers; 8 ‘‘(B) an understanding of the risk of 9 illiquidity; and 10 ‘‘(C) such other areas as the Commission 11 may determine appropriate by rule or regula- 12 tion; 13 ‘‘(7) provides the Commission with notice of the 14 offering not less than 10 days prior to such offering, 15 not later than the first day securities are offered to 16 potential investors, including— 17 ‘‘(A) the stated purpose and intended use 18 of the proceeds of the offering sought by the 19 issuer; and 20 ‘‘(B) the target offering amount and the 21 deadline to reach the target offering amount; 22 ‘‘(8) outsources cash-management functions to 23 a qualified third party custodian, such as a broker 24 or dealer registered under section 15(b)(1) of the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00242 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 243 1 Securities Exchange Act of 1934, a trust company, 2 or an insured depository institution; 3 ‘‘(9) makes available on the issuer’s website a 4 method of communication that permits the issuer 5 and investors to communicate with one another; 6 7 ‘‘(10) does not offer personalized investment advice; 8 ‘‘(11) provides the Commission with a notice 9 upon completion of the offering, which shall include 10 the aggregate offering amount and the number of 11 purchasers; and 12 ‘‘(c) VERIFICATION OF INCOME.—For purposes of 13 section 4(a)(6), an issuer or intermediary may rely on cer14 tifications as to annual income provided by the person to 15 whom the securities are sold to verify the investor’s in16 come. 17 ‘‘(d) INFORMATION AVAILABLE TO STATES.—The 18 Commission shall make the notices described under sub19 sections (a)(9), (a)(13), (b)(8), and (b)(13) and the infor20 mation described under subsections (a)(4) and (b)(4) 21 available to the States. 22 ‘‘(e) RESTRICTION ON SALES.—With respect to a 23 transaction involving the issuance of securities described 24 under section 4(a)(6), a purchaser may not transfer such G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00243 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 244 1 securities during the 1-year period beginning on the date 2 of purchase, unless such securities are sold to— 3 ‘‘(1) the issuer of such securities; or 4 ‘‘(2) an accredited investor. 5 ‘‘(f) CONSTRUCTION.— 6 ‘‘(1) NO REGISTRATION AS BROKER.—With re- 7 spect to a transaction described under section 8 4(a)(6) involving an intermediary, such intermediary 9 shall not be required to register as a broker under 10 section 15(a)(1) of the Securities Exchange Act of 11 1934 solely by reason of participation in such trans- 12 action. 13 ‘‘(2) NO PRECLUSION OF OTHER CAPITAL RAIS- 14 ING.—Nothing 15 shall be construed as preventing an issuer from rais- 16 ing capital through methods not described under 17 section 4(a)(6).’’. 18 (c) RULEMAKING.—Not later than 180 days after the in this section or section 4(a)(6) 19 date of enactment of this Act, the Securities and Ex20 change Commission shall issue or revise such rules as may 21 be necessary to carry out section 4A of the Securities Act 22 of 1933, ans amended by this Act. In issuing or revising 23 such rules, the Commission shall consider the costs and 24 benefits of the action. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00244 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 245 1 (d) DISQUALIFICATION.—Not later than 180 days 2 after the date of enactment of this Act, the Securities and 3 Exchange Commission shall by rule or regulation establish 4 disqualification provisions under which an issuer shall not 5 be eligible to utilize the exemption under section 4(a)(6) 6 of the Securities Act of 1933 (as amended by this Act) 7 based on the disciplinary history of the issuer or its prede8 cessors, affiliates, officers, directors, or persons fulfilling 9 similar roles. The Commission shall also establish disquali10 fication provisions under which an intermediary shall not 11 be eligible to act as an intermediary in connection with 12 an offering utilizing the exemption under section 4(a)(6) 13 of the Securities Act of 1933 based on the disciplinary 14 history of the intermediary or its predecessors, affiliates, 15 officers, directors, or persons fulfilling similar roles. Such 16 provisions shall be substantially similar to the disqualifica17 tion provisions contained in the regulations adopted in ac18 cordance with section 926 of the Dodd-Frank Wall Street 19 Reform and Consumer Protection Act (15 U.S.C. 77d 20 note). 21 SEC. 477. EXCLUSION OF CROWDFUNDING INVESTORS 22 23 FROM SHAREHOLDER CAP. Section 12(g)(5) of the Securities Exchange Act of 24 1934 (15 U.S.C. 78l(g)(5)) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00245 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 246 1 2 (1) by striking ‘‘(5) For the purposes’’ and inserting: 3 ‘‘(5) DEFINITIONS.— 4 ‘‘(A) IN GENERAL.—For the purposes’’; 5 and 6 (2) by adding at the end the following: 7 ‘‘(B) EXCLUSION FOR PERSONS HOLDING 8 CERTAIN SECURITIES.—For 9 subsection, securities held by persons who pur- 10 chase such securities in transactions described 11 under section 4(a)(6) of the Securities Act of 12 1933 shall not be deemed to be ‘held of 13 record’.’’. 14 15 purposes of this SEC. 478. PREEMPTION OF STATE LAW. (a) IN GENERAL.—Section 18(b)(4)(C) of the Securi- 16 ties Act of 1933 (15 U.S.C. 77r(b)(4)(C)) is amended by 17 striking ‘‘section 4(6)’’ and inserting ‘‘section 4(a)(6)’’. 18 (b) CLARIFICATION OF THE PRESERVATION OF 19 STATE ENFORCEMENT AUTHORITY.— 20 (1) IN amendments made by 21 subsection (a) relate solely to State registration, doc- 22 umentation, and offering requirements, as described 23 under section 18(a) of Securities Act of 1933 (15 24 U.S.C. 77r(a)), and shall have no impact or limita- 25 tion on other State authority to take enforcement G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00246 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 247 1 action with regard to an issuer, intermediary, or any 2 other person or entity using the exemption from reg- 3 istration provided by section 4(a)(6) of such Act, ex- 4 cept that a State may not impose any fees under 5 such authority. 6 (2) CLARIFICATION OF STATE JURISDICTION 7 OVER UNLAWFUL CONDUCT OF INTERMEDIARIES, 8 ISSUERS, AND CUSTODIANS.—Section 9 Securities Act of 1933 is amended by striking ‘‘in 10 connection with securities or securities transactions’’ 11 and all that follows and inserting the following: ‘‘, 12 in connection with securities or securities trans- 13 actions, with respect to— 18(c)(1) of the 14 ‘‘(A) fraud or deceit; 15 ‘‘(B) unlawful conduct by a broker or deal- 16 er; and 17 ‘‘(C) with respect to a transaction de- 18 scribed under section 4(a)(6), unlawful conduct 19 by an intermediary, issuer, or custodian.’’. 20 21 SEC. 479. TREATMENT OF FUNDING PORTALS. Section 5312(c) of title 31, United States Code, is 22 amended by adding at the end the following: 23 ‘‘(2) FUNDING 24 DEFINITION.—The 25 defined in subsection (a)) does not include a funding G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PORTALS NOT INCLUDED IN 15:00 Apr 19, 2017 Jkt 000000 term ‘financial institution’ (as (657255 10) PO 00000 Frm 00247 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 248 1 portal (as defined under section 3(a) of the Securi- 2 ties Exchange Act of 1934 (15 U.S.C. 78c(a))).’’. 3 Subtitle Q—Corporate Governance Reform and Transparency 4 5 6 SEC. 481. DEFINITIONS. (a) SECURITIES EXCHANGE ACT OF 1934.—Section 7 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 8 78c(a)) is amended by adding at the end the following new 9 paragraphs: 10 ‘‘(83) ADVISORY FIRM.—The term 11 ‘proxy advisory firm’ means any person who is pri- 12 marily engaged in the business of providing proxy 13 voting research, analysis, or recommendations to cli- 14 ents, which conduct constitutes a solicitation within 15 the meaning of section 14 and the Commission’s 16 rules and regulations thereunder, except to the ex- 17 tent that the person is exempted by such rules and 18 regulations from requirements otherwise applicable 19 to persons engaged in a solicitation. 20 ‘‘(84) PERSON ASSOCIATED WITH A PROXY AD- 21 VISORY FIRM.—The term ‘person associated with’ a 22 proxy advisory firm means any partner, officer, or 23 director of a proxy advisory firm (or any person oc- 24 cupying a similar status or performing similar func- 25 tions), any person directly or indirectly controlling, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PROXY 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00248 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 249 1 controlled by, or under common control with a proxy 2 advisory firm, or any employee of a proxy advisory 3 firm, except that persons associated with a proxy ad- 4 visory firm whose functions are clerical or ministe- 5 rial shall not be included in the meaning of such 6 term. The Commission may by rules and regulations 7 classify, for purposes or any portion or portions of 8 this Act, persons, including employees controlled by 9 a proxy advisory firm.’’. 10 (b) APPLICABLE DEFINITIONS.—As used in this sub- 11 title— 12 13 (1) the term ‘‘Commission’’ means the Securities and Exchange Commission; and 14 (2) the term ‘‘proxy advisory firm’’ has the 15 same meaning as in section 3(a)(83) of the Securi- 16 ties Exchange Act of 1934, as added by this subtitle. 17 18 SEC. 482. REGISTRATION OF PROXY ADVISORY FIRMS. (a) AMENDMENT.—The Securities Exchange Act of 19 1934 is amended by inserting after section 15G the fol20 lowing new section: 21 22 ‘‘SEC. 15H. REGISTRATION OF PROXY ADVISORY FIRMS. ‘‘(a) CONDUCT PROHIBITED.—It shall be unlawful 23 for a proxy advisory firm to make use of the mails or any 24 means or instrumentality of interstate commerce to pro25 vide proxy voting research, analysis, or recommendations G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00249 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 250 1 to any client, unless such proxy advisory firm is registered 2 under this section. 3 ‘‘(b) REGISTRATION PROCEDURES.— 4 ‘‘(1) APPLICATION 5 ‘‘(A) IN GENERAL.—A proxy advisory firm 6 must file with the Commission an application 7 for registration, in such form as the Commis- 8 sion shall require, by rule or regulation, and 9 containing the information described in sub- 10 paragraph (B). 11 ‘‘(B) REQUIRED INFORMATION.—An appli- 12 cation for registration under this section shall 13 contain information regarding— 14 ‘‘(i) a certification that the applicant 15 has adequate financial and managerial re- 16 sources to consistently provide proxy advice 17 based on accurate information; 18 ‘‘(ii) the procedures and methodolo- 19 gies that the applicant uses in developing 20 proxy voting recommendations, including 21 whether and how the applicant considers 22 the size of a company when making proxy 23 voting recommendations; 24 ‘‘(iii) the organizational structure of 25 the applicant; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FOR REGISTRATION.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00250 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 251 1 ‘‘(iv) whether or not the applicant has 2 in effect a code of ethics, and if not, the 3 reasons therefor; 4 ‘‘(v) any potential or actual conflict of 5 interest relating to the ownership structure 6 of the applicant or the provision of proxy 7 advisory services by the applicant, includ- 8 ing whether the proxy advisory firm en- 9 gages in services ancillary to the provision 10 of proxy advisory services such as con- 11 sulting services for corporate issuers, and 12 if so the revenues derived therefrom; 13 ‘‘(vi) the policies and procedures in 14 place to manage conflicts of interest under 15 subsection (f); and 16 ‘‘(vii) any other information and docu- 17 ments concerning the applicant and any 18 person associated with such applicant as 19 the Commission, by rule, may prescribe as 20 necessary or appropriate in the public in- 21 terest or for the protection of investors. 22 ‘‘(2) REVIEW 23 ‘‘(A) INITIAL DETERMINATION.—Not later 24 than 90 days after the date on which the appli- 25 cation for registration is filed with the Commis- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF APPLICATION.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00251 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 252 1 sion under paragraph (1) (or within such longer 2 period as to which the applicant consents) the 3 Commission shall— 4 ‘‘(i) by order, grant registration; or 5 ‘‘(ii) institute proceedings to deter- 6 mine whether registration should be de- 7 nied. 8 ‘‘(B) CONDUCT 9 ‘‘(i) CONTENT.—Proceedings referred 10 to in subparagraph (A)(ii) shall— 11 ‘‘(I) include notice of the grounds 12 for denial under consideration and an 13 opportunity for hearing; and 14 ‘‘(II) be concluded not later than 15 120 days after the date on which the 16 application for registration is filed 17 with the Commission under paragraph 18 (1). 19 ‘‘(ii) DETERMINATION.—At the con- 20 clusion of such proceedings, the Commis- 21 sion, by order, shall grant or deny such ap- 22 plication for registration. 23 ‘‘(iii) EXTENSION AUTHORIZED.—The 24 Commission may extend the time for con- 25 clusion of such proceedings for not longer G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF PROCEEDINGS.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00252 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 253 1 than 90 days, if it finds good cause for 2 such extension and publishes its reasons 3 for so finding, or for such longer period as 4 to which the applicant consents. 5 ‘‘(C) GROUNDS Com- 6 mission shall grant registration under this sub- 7 section— 8 ‘‘(i) if the Commission finds that the 9 requirements of this section are satisfied; 10 and 11 ‘‘(ii) unless the Commission finds (in 12 which case the Commission shall deny such 13 registration) that— 14 ‘‘(I) the applicant has failed to 15 certify to the Commission’s satisfac- 16 tion that it has adequate financial and 17 managerial resources to consistently 18 provide proxy advice based on accu- 19 rate information and to materially 20 comply with the procedures and meth- 21 odologies disclosed under paragraph 22 (1)(B) and with subsections (f) and 23 (g); or 24 ‘‘(II) if the applicant were so reg- 25 istered, its registration would be sub- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FOR DECISION.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00253 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 254 1 ject to suspension or revocation under 2 subsection (e). 3 ‘‘(3) PUBLIC 4 Subject to section 24, the Commission shall make 5 the information and documents submitted to the 6 Commission by a proxy advisory firm in its com- 7 pleted application for registration, or in any amend- 8 ment submitted under paragraph (1) or (2) of sub- 9 section (c), publicly available on the Commission’s 10 website, or through another comparable, readily ac- 11 cessible means. 12 ‘‘(c) UPDATE OF REGISTRATION.— 13 ‘‘(1) UPDATE.—Each registered proxy advisory 14 firm shall promptly amend and update its applica- 15 tion for registration under this section if any infor- 16 mation or document provided therein becomes mate- 17 rially inaccurate, except that a registered proxy advi- 18 sory firm is not required to amend the information 19 required to be filed under subsection (b)(1)(B)(i) by 20 filing information under this paragraph, but shall 21 amend such information in the annual submission of 22 the organization under paragraph (2) of this sub- 23 section. 24 ‘‘(2) CERTIFICATION.—Not later than 90 cal- 25 endar days after the end of each calendar year, each G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AVAILABILITY OF INFORMATION.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00254 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 255 1 registered proxy advisory firm shall file with the 2 Commission an amendment to its registration, in 3 such form as the Commission, by rule, may prescribe 4 as necessary or appropriate in the public interest or 5 for the protection of investors— 6 ‘‘(A) certifying that the information and 7 documents in the application for registration of 8 such registered proxy advisory firm continue to 9 be accurate in all material respects; and 10 ‘‘(B) listing any material change that oc- 11 curred to such information or documents during 12 the previous calendar year. 13 14 ‘‘(d) CENSURE, DENIAL, ISTRATION; NOTICE AND OR SUSPENSION OF REG- HEARING.—The Commission, by 15 order, shall censure, place limitations on the activities, 16 functions, or operations of, suspend for a period not ex17 ceeding 12 months, or revoke the registration of any reg18 istered proxy advisory firm if the Commission finds, on 19 the record after notice and opportunity for hearing, that 20 such censure, placing of limitations, suspension, or revoca21 tion is necessary for the protection of investors and in the 22 public interest and that such registered proxy advisory 23 firm, or any person associated with such an organization, 24 whether prior to or subsequent to becoming so associ25 ated— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00255 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 256 1 ‘‘(1) has committed or omitted any act, or is 2 subject to an order or finding, enumerated in sub- 3 paragraph (A), (D), (E), (H), or (G) of section 4 15(b)(4), has been convicted of any offense specified 5 in section 15(b)(4)(B), or is enjoined from any ac- 6 tion, conduct, or practice specified in subparagraph 7 (C) of section 15(b)(4), during the 10-year period 8 preceding the date of commencement of the pro- 9 ceedings under this subsection, or at any time there- 10 after; 11 ‘‘(2) has been convicted during the 10-year pe- 12 riod preceding the date on which an application for 13 registration is filed with the Commission under this 14 section, or at any time thereafter, of— 15 ‘‘(A) any crime that is punishable by im- 16 prisonment for one or more years, and that is 17 not described in section 15(b)(4)(B); or 18 ‘‘(B) a substantially equivalent crime by a 19 foreign court of competent jurisdiction; 20 ‘‘(3) is subject to any order of the Commission 21 barring or suspending the right of the person to be 22 associated with a registered proxy advisory firm; 23 24 ‘‘(4) fails to furnish the certifications required under subsections (b)(2)(C)(ii)(I) and (c)(2); G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00256 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 257 1 2 ‘‘(5) has engaged in one or more prohibited acts enumerated in paragraph (1); or 3 ‘‘(6) fails to maintain adequate financial and 4 managerial resources to consistently offer advisory 5 services with integrity, including by failing to comply 6 with subsections (f) or (g). 7 ‘‘(e) TERMINATION OF REGISTRATION.— 8 ‘‘(1) VOLUNTARY registered 9 proxy advisory firm may, upon such terms and con- 10 ditions as the Commission may establish as nec- 11 essary in the public interest or for the protection of 12 investors, which terms and conditions shall include 13 at a minimum that the registered proxy advisory 14 firm will no longer conduct such activities as to 15 bring it within the definition of proxy advisory firm 16 in section 3(a)(83) of the Securities Exchange Act 17 of 1934, withdraw from registration by filing a writ- 18 ten notice of withdrawal to the Commission. 19 ‘‘(2) COMMISSION AUTHORITY.—In addition to 20 any other authority of the Commission under this 21 title, if the Commission finds that a registered proxy 22 advisory firm is no longer in existence or has ceased 23 to do business as a proxy advisory firm, the Com- 24 mission, by order, shall cancel the registration under 25 this section of such registered proxy advisory firm. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 WITHDRAWAL.—A 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00257 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 258 1 ‘‘(f) MANAGEMENT 2 CONFLICTS ‘‘(1) ORGANIZATION OF POLICIES INTEREST.— PROCE- AND 3 DURES.—Each 4 establish, maintain, and enforce written policies and 5 procedures reasonably designed, taking into consid- 6 eration the nature of the business of such registered 7 proxy advisory firm and associated persons, to ad- 8 dress and manage any conflicts of interest that can 9 arise from such business. 10 registered proxy advisory firm shall ‘‘(2) COMMISSION AUTHORITY.—The Commis- 11 sion shall issue final rules to prohibit, or require the 12 management and disclosure of, any conflicts of inter- 13 est relating to the offering of proxy advisory services 14 by a registered proxy advisory firm, including, with- 15 out limitation, conflicts of interest relating to— 16 ‘‘(A) the manner in which a registered 17 proxy advisory firm is compensated by the cli- 18 ent, or any affiliate of the client, for providing 19 proxy advisory services; 20 ‘‘(B) the provision of consulting, advisory, 21 or other services by a registered proxy advisory 22 firm, or any person associated with such reg- 23 istered proxy advisory firm, to the client; 24 ‘‘(C) business relationships, ownership in- 25 terests, or any other financial or personal inter- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00258 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 259 1 ests between a registered proxy advisory firm, 2 or any person associated with such registered 3 proxy advisory firm, and any client, or any af- 4 filiate of such client; 5 ‘‘(D) transparency around the formulation 6 of proxy voting policies; 7 ‘‘(E) the execution of proxy votes if such 8 votes are based upon recommendations made by 9 the proxy advisory firm in which someone other 10 than the issuer is a proponent; 11 ‘‘(F) issuing recommendations where proxy 12 advisory firms provide advisory services to a 13 company; and 14 ‘‘(G) any other potential conflict of inter- 15 est, as the Commission deems necessary or ap- 16 propriate in the public interest or for the pro- 17 tection of investors. 18 19 ‘‘(g) RELIABILITY PROXY ADVISORY FIRM SERV- ICES.— 20 ‘‘(1) IN GENERAL.—Each registered proxy advi- 21 sory firm shall have staff sufficient to produce proxy 22 voting recommendations that are based on accurate 23 and current information. Each registered proxy advi- 24 sory firm shall detail procedures sufficient to permit 25 companies G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 receiving proxy advisory firm rec- (657255 10) PO 00000 Frm 00259 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 260 1 ommendations access in a reasonable time to the 2 draft recommendations, with an opportunity to pro- 3 vide meaningful comment thereon, including the op- 4 portunity to present details to the person responsible 5 for developing the recommendation in person or tele- 6 phonically. Each registered proxy advisory firm shall 7 employ an ombudsman to receive complaints about 8 the accuracy of voting information used in making 9 recommendations from the subjects of the proxy ad- 10 visory firm’s voting recommendations, and shall re- 11 solve those complaints in a timely fashion and in any 12 event prior to voting on the matter to which the rec- 13 ommendation relates. 14 ‘‘(2) DRAFT 15 For purposes of this subsection, the term ‘draft rec- 16 ommendations’— 17 ‘‘(A) means the overall conclusions of 18 proxy voting recommendations prepared for the 19 clients of a proxy advisory firm, including any 20 public data cited therein, any company informa- 21 tion or substantive analysis impacting the rec- 22 ommendation, and the specific voting rec- 23 ommendations on individual proxy ballot issues; 24 and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RECOMMENDATIONS DEFINED.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00260 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 261 1 ‘‘(B) does not include the entirety of the 2 proxy advisory firm’s final report to its clients. 3 ‘‘(h) DESIGNATION OF COMPLIANCE OFFICER.— 4 Each registered proxy advisory firm shall designate an in5 dividual responsible for administering the policies and pro6 cedures that are required to be established pursuant to 7 subsections (f) and (g), and for ensuring compliance with 8 the securities laws and the rules and regulations there9 under, including those promulgated by the Commission 10 pursuant to this section. 11 ‘‘(i) PROHIBITED CONDUCT.— 12 ‘‘(1) PROHIBITED 13 Commission shall issue final rules to prohibit any 14 act or practice relating to the offering of proxy advi- 15 sory services by a registered proxy advisory firm 16 that the Commission determines to be unfair or co- 17 ercive, including any act or practice relating to— 18 ‘‘(A) conditioning a voting recommendation 19 or other proxy advisory firm recommendation 20 on the purchase by an issuer or an affiliate 21 thereof of other services or products, of the reg- 22 istered proxy advisory firm or any person asso- 23 ciated with such registered proxy advisory firm; 24 and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ACTS AND PRACTICES.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00261 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 262 1 ‘‘(B) modifying a voting recommendation 2 or otherwise departing from its adopted system- 3 atic procedures and methodologies in the provi- 4 sion of proxy advisory services, based on wheth- 5 er an issuer, or affiliate thereof, subscribes or 6 will subscribe to other services or product of the 7 registered proxy advisory firm or any person as- 8 sociated with such organization. 9 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 10 paragraph (1), or in any rules or regulations adopt- 11 ed thereunder, may be construed to modify, impair, 12 or supersede the operation of any of the antitrust 13 laws (as defined in the first section of the Clayton 14 Act, except that such term includes section 5 of the 15 Federal Trade Commission Act, to the extent that 16 such section 5 applies to unfair methods of competi- 17 tion). 18 ‘‘(j) STATEMENTS OF FINANCIAL CONDITION.—Each 19 registered proxy advisory firm shall, on a confidential 20 basis, file with the Commission, at intervals determined 21 by the Commission, such financial statements, certified (if 22 required by the rules or regulations of the Commission) 23 by an independent public auditor, and information con24 cerning its financial condition, as the Commission, by rule, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00262 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 263 1 may prescribe as necessary or appropriate in the public 2 interest or for the protection of investors. 3 ‘‘(k) ANNUAL REPORT.—Each registered proxy advi- 4 sory firm shall, at the beginning of each fiscal year of such 5 firm, report to the Commission on the number of share6 holder proposals its staff reviewed in the prior fiscal year, 7 the number of recommendations made in the prior fiscal 8 year, the number of staff who reviewed and made rec9 ommendations on such proposals in the prior fiscal year, 10 and the number of recommendations made in the prior 11 fiscal year where the proponent of such recommendation 12 was a client of or received services from the proxy advisory 13 firm. 14 ‘‘(l) TRANSPARENT POLICIES.—Each registered 15 proxy advisory firm shall file with the Commission and 16 make publicly available its methodology for the formula17 tion of proxy voting policies and voting recommendations. 18 ‘‘(m) RULES OF CONSTRUCTION.— 19 ‘‘(1) NO 20 DEFENSES.—Registration 21 with this section does not constitute a waiver of, or 22 otherwise diminish, any right, privilege, or defense 23 that a registered proxy advisory firm may otherwise 24 have under any provision of State or Federal law, 25 including any rule, regulation, or order thereunder. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 WAIVER OF RIGHTS, PRIVILEGES, OR 15:00 Apr 19, 2017 Jkt 000000 under and compliance (657255 10) PO 00000 Frm 00263 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 264 1 ‘‘(2) NO 2 in this section may be construed as creating any pri- 3 vate right of action, and no report filed by a reg- 4 istered proxy advisory firm in accordance with this 5 section or section 17 shall create a private right of 6 action under section 18 or any other provision of 7 law. 8 ‘‘(n) REGULATIONS.— 9 ‘‘(1) NEW PROVISIONS.—Such rules and regula- 10 tions as are required by this section or are otherwise 11 necessary to carry out this section, including the ap- 12 plication form required under subsection (a)— 13 ‘‘(A) shall be issued by the Commission, 14 not later than 180 days after the date of enact- 15 ment of this section; and 16 ‘‘(B) shall become effective not later than 17 1 year after the date of enactment of this sec- 18 tion. 19 ‘‘(2) REVIEW OF EXISTING REGULATIONS.—Not 20 later than 270 days after the date of enactment of 21 this section, the Commission shall— 22 ‘‘(A) review its existing rules and regula- 23 tions which affect the operations of proxy advi- 24 sory firms; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PRIVATE RIGHT OF ACTION.—Nothing 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00264 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 265 1 ‘‘(B) amend or revise such rules and regu- 2 lations in accordance with the purposes of this 3 section, and issue such guidance, as the Com- 4 mission may prescribe as necessary or appro- 5 priate in the public interest or for the protec- 6 tion of investors; and 7 ‘‘(C) direct Commission staff to withdraw 8 the Egan Jones Proxy Services (May 27, 2004) 9 and Institutional Shareholder Services, Inc. 10 11 (September 15, 2004) no-action letters. ‘‘(o) APPLICABILITY.—This section, other than sub- 12 section (n), which shall apply on the date of enactment 13 of this section, shall apply on the earlier of— 14 15 ‘‘(1) the date on which regulations are issued in final form under subsection (n)(1); or 16 ‘‘(2) 270 days after the date of enactment of 17 this section.’’. 18 (b) CONFORMING AMENDMENT.—Section 17(a)(1) of 19 the Securities Exchange Act of 1934 (15 U.S.C. 20 78q(a)(1)) is amended by inserting ‘‘proxy advisory firm,’’ 21 after ‘‘nationally recognized statistical rating organiza22 tion,’’. 23 24 SEC. 483. COMMISSION ANNUAL REPORT. The Commission shall make an annual report publicly 25 available on the Commission’s Internet website. Such re- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00265 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 266 1 port shall, with respect to the year to which the report 2 relates— 3 (1) identify applicants for registration under 4 section 15H of the Securities Exchange Act of 1934, 5 as added by this subtitle; 6 7 (2) specify the number of and actions taken on such applications; 8 (3) specify the views of the Commission on the 9 state of competition, transparency, policies and 10 methodologies, and conflicts of interest among proxy 11 advisory firms; 12 13 (4) include the determination of the Commission with regard to— 14 (A) the quality of proxy advisory services 15 issued by proxy advisory firms; 16 (B) the financial markets; 17 (C) competition among proxy advisory 18 firms; 19 (D) the incidence of undisclosed conflicts 20 of interest by proxy advisory firms; 21 (E) the process for registering as a proxy 22 advisory firm; and 23 (F) such other matters relevant to the im- 24 plementation of this subtitle and the amend- 25 ments made by this subtitle, as the Commission G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00266 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 267 1 determines necessary to bring to the attention 2 of the Congress; 3 (5) identify problems, if any, that have resulted 4 from the implementation of this subtitle and the 5 amendments made by this subtitle; and 6 (6) recommend solutions, including any legisla- 7 tive or regulatory solutions, to any problems identi- 8 fied under paragraphs (4) and (5). Subtitle R—Senior Safe 9 10 11 SEC. 491. IMMUNITY. (a) DEFINITIONS.—In this subtitle— 12 (1) the term ‘‘Bank Secrecy Act Officer’’ means 13 an individual responsible for ensuring compliance 14 with the requirements mandated by subchapter II of 15 chapter 53 of title 31, United States Code; 16 (2) the term ‘‘broker-dealer’’ means a broker or 17 dealer, as those terms are defined, respectively, in 18 section 3(a) of the Securities Exchange Act of 1934 19 (15 U.S.C. 78c(a)); 20 (3) the term ‘‘covered agency’’ means— 21 (A) a State financial regulatory agency, in- 22 cluding a State securities or law enforcement 23 authority and a State insurance regulator; 24 (B) each of the Federal financial institu- 25 tions regulatory agencies; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00267 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 268 1 (C) the Securities and Exchange Commis- 2 sion; 3 (D) a law enforcement agency; 4 (E) and State or local agency responsible 5 for administering adult protective service laws; 6 and 7 (F) a State attorney general. 8 9 (4) the term ‘‘covered financial institution’’ means— 10 (A) a credit union; 11 (B) a depository institution; 12 (C) an investment advisor; 13 (D) a broker-dealer; 14 (E) an insurance company; 15 (F) a State attorney general; and 16 (G) a transfer agent. 17 (5) the term ‘‘credit union’’ means a Federal 18 credit union, State credit union, or State-chartered 19 credit union, as those terms are defined in section 20 101 of the Federal Credit Union Act (12 U.S.C. 21 1752); 22 (6) the term ‘‘depository institution’’ has the 23 meaning given the term in section 3(c) of the Fed- 24 eral Deposit Insurance Act (12 U.S.C. 1813(c)); G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00268 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 269 1 (7) the term ‘‘exploitation’’ means the fraudu- 2 lent or otherwise illegal, unauthorized, or improper 3 act or process of an individual, including a caregiver 4 or fiduciary, that— 5 (A) uses the resources of a senior citizen 6 for monetary personal benefit, profit, or gain; 7 or 8 (B) results in depriving a senior citizen of 9 rightful access to or use of benefits, resources, 10 belongings or assets; 11 (8) the term ‘‘Federal financial institutions reg- 12 ulatory agencies’’ has the meaning given the term in 13 section 1003 of the Federal Financial Institutions 14 Examination Council Act of 1978 (12 U.S.C. 3302); 15 (9) the term ‘‘investment adviser’’ has the 16 meaning given the term in section 202 of the Invest- 17 ment Advisers Act of 1940 (15 U.S.C. 80b–2); 18 (10) the term ‘‘insurance company’’ has the 19 meaning given the term in section 2(a) of the Invest- 20 ment Company Act of 1940 (15 U.S.C. 80a–2(a)); 21 (11) term ‘‘registered representative’’ 22 means an individual who represents a broker-dealer 23 in effecting or attempting to affect a purchase or 24 sale of securities; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 the 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00269 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 270 1 2 (12) the term ‘‘senior citizen’’ means an individual who is not less than 65 years of age; 3 (13) the term ‘‘State insurance regulator’’ has 4 the meaning given such term in section 315 of the 5 Gramm-Leach-Bliley Act (15 U.S.C. 6735); 6 (14) the term ‘‘State securities or law enforce- 7 ment authority’’ has the meaning given the term in 8 section 24(f)(4) of the Securities Exchange Act of 9 1934 (15 U.S.C. 78x(f)(4)); and 10 (15) the term ‘‘transfer agent’’ has the meaning 11 given the term in section 3(a) of the Securities Ex- 12 change Act of 1934 (15 U.S.C. 78c(a)). 13 (b) IMMUNITY FROM SUIT.— 14 (1) IMMUNITY INDIVIDUALS.—An indi- 15 vidual who has received the training described in 16 section 1092 shall not be liable, including in any 17 civil or administrative proceeding, for disclosing the 18 possible exploitation of a senior citizen to a covered 19 agency if the individual, at the time of the disclo- 20 sure— 21 (A) served as a supervisor, compliance offi- 22 cer (including a Bank Secrecy Act Officer), or 23 registered representative for a covered financial 24 institution; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FOR 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00270 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 271 1 (B) made the disclosure with reasonable 2 care including reasonable efforts to avoid disclo- 3 sure other than to a covered agency. 4 (2) IMMUNITY FOR COVERED FINANCIAL INSTI- 5 TUTIONS.—A 6 be liable, including in any civil or administrative pro- 7 ceeding, for a disclosure made by an individual de- 8 scribed in paragraph (1) if— covered financial institution shall not 9 (A) the individual was employed by, or, in 10 the case of a registered representative, affiliated 11 or associated with, the covered financial institu- 12 tion at the time of the disclosure; and 13 (B) before the time of the disclosure, the 14 covered financial institution provided the train- 15 ing described in section 492 to each individual 16 described in section 492(a). 17 18 SEC. 492. TRAINING REQUIRED. (a) IN GENERAL.—A covered financial institution 19 may provide training described in subsection (b)(1) to 20 each officer or employee of, or registered representative 21 affiliated or associated with, the covered financial institu22 tion who— 23 (1) is described in section 491(b)(1)(A); G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00271 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 272 1 (2) may come into contact with a senior citizen 2 as a regular part of the duties of the officer, em- 3 ployee, or registered representative; or 4 (3) may review or approve the financial docu- 5 ments, records, or transactions of a senior citizen in 6 connection with providing financial services to a sen- 7 ior citizen. 8 (b) TRAINING.— 9 (1) IN 10 training described in this paragraph shall— 11 (A) instruct any individual attending the 12 training on how to identify and report the sus- 13 pected exploitation of a senior citizen; 14 (B) discuss the need to protect the privacy 15 and respect the integrity of each individual cus- 16 tomer of a covered financial institution; and 17 (C) be appropriate to the job responsibil- 18 ities of the individual attending the training. 19 (2) TIMING.—The training required under sub- 20 section (a) shall be provided as soon as reasonably 21 practicable but not later than 1 year after the date 22 on which an officer, employee, or registered rep- 23 resentative begins employment with or becomes af- 24 filiated or associated with the covered financial insti- 25 tution. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00272 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 273 1 (3) BANK SECRECY ACT OFFICER.—An indi- 2 vidual who is designated as a compliance officer 3 under an anti-money laundering program established 4 pursuant to section 5318(h) of title 31, United 5 States Code, shall be deemed to have received the 6 training described under this subsection. 7 8 SEC. 493. RELATIONSHIP TO STATE LAW. Nothing in this Act shall be construed to preempt or 9 limit any provision of State law, except only to the extent 10 that section 1091 provides a greater level of protection 11 against liability to an individual described in section 12 491(b)(1) or to a covered financial institution described 13 in section 491(b)(2) than is provided under State law. 14 15 16 17 Subtitle S—National Securities Exchange Regulatory Parity SEC. 496. APPLICATION OF EXEMPTION. Section 18(b)(1) of the Securities Act of 1933 (15 18 U.S.C. 77r(b)(1)), as amended by section 456(b), is fur19 ther amended— 20 (1) by striking subparagraph (A); 21 (2) in subparagraph (B), by striking ‘‘that the 22 Commission determines by rule (on its own initiative 23 or on the basis of a petition) are substantially simi- 24 lar to the listing standards applicable to securities G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00273 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 274 1 described in subparagraph (A)’’ and inserting ‘‘that 2 have been approved by the Commission’’; 3 4 (3) in subparagraph (C), by striking ‘‘or (B)’’; and 5 (4) by redesignating subparagraphs (B), (C), 6 and (D) as subparagraphs (A), (B), and (C), respec- 7 tively. 8 Subtitle T—Private Company Flexibility and Growth 9 10 SEC. 497. SHAREHOLDER THRESHOLD FOR REGISTRATION. 11 The Securities Exchange Act of 1934 (15 U.S.C. 78a 12 et seq.) is amended— 13 (1) in section 12(g)— 14 (A) in paragraph (1)— 15 (i) by striking ‘‘shall—’’ and all that 16 follows through ‘‘register such security’’ 17 and inserting ‘‘shall, not later than 120 18 days after the last day of its first fiscal 19 year ended after the effective date of this 20 subsection on which the issuer has total as- 21 sets exceeding $10,000,000 (or such great- 22 er amount of assets as the Commission 23 may establish by rule) and a class of eq- 24 uity security (other than an exempted se- 25 curity) held of record by 2,000 or more G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00274 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 275 1 persons (or such greater number of per- 2 sons as the Commission may establish by 3 rule), register such security’’; and 4 (ii) by adding at the end the fol- 5 lowing: ‘‘The dollar figure in this para- 6 graph shall be indexed for inflation every 5 7 years by the Commission to reflect the 8 change in the Consumer Price Index for 9 All Urban Consumers published by the Bu- 10 reau of Labor Statistics, rounded to the 11 nearest $100,000.’’; and 12 (B) in paragraph (4), by striking ‘‘300 13 persons’’ and all that follows through ‘‘1,200 14 persons persons’’ and inserting ‘‘1,200 per- 15 sons’’; and 16 (2) in section 15(d)(1), by striking ‘‘300 per- 17 sons’’ and all that follows through ‘‘1,200 persons 18 persons’’ and inserting ‘‘1,200 persons’’. 20 Subtitle U—Small Company Capital Formation Enhancements 21 SEC. 498. JOBS ACT-RELATED EXEMPTION. 19 22 Section 3(b) of the Securities Act of 1933 (15 U.S.C. 23 77c(b)) is amended— 24 25 (1) 15:00 Apr 19, 2017 paragraph (2)(A), by striking ‘‘$50,000,000’’ and inserting ‘‘$75,000,000, ad- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in Jkt 000000 (657255 10) PO 00000 Frm 00275 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 276 1 justed for inflation by the Commission every 2 years 2 to the nearest $10,000 to reflect the change in the 3 Consumer Price Index for All Urban Consumers 4 published by the Bureau of Labor Statistics’’; and 5 (2) in paragraph (5)— 6 (A) by striking ‘‘such amount as’’ and in- 7 serting: ‘‘such amount, in addition to the ad- 8 justment for inflation provided for under such 9 paragraph (2)(A), as’’; and 10 (B) by striking ‘‘such amount, it’’ and in- 11 serting ‘‘such amount, in addition to the adjust- 12 ment for inflation provided for under such 13 paragraph (2)(A), it’’. 15 Subtitle V—Encouraging Public Offerings 16 SEC. 499. EXPANDING TESTING THE WATERS AND CON- 14 17 18 FIDENTIAL SUBMISSIONS. The Securities Act of 1933 (15 U.S.C. 77a et seq.) 19 is amended— 20 (1) in section 5(d), by striking ‘‘an emerging 21 growth company or any person authorized to act on 22 behalf of an emerging growth company’’ and insert- 23 ing ‘‘an issuer or any person authorized to act on 24 behalf of an issuer’’; and 25 (2) in section 6(e)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00276 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 277 1 (A) in the heading, by striking ‘‘EMERG- 2 ING 3 ‘‘DRAFT REGISTRATION STATEMENTS’’; and 4 GROWTH COMPANIES’’ and inserting (B) by amending paragraph (1) to read as 5 follows: 6 ‘‘(1) IN GENERAL.—Any issuer, prior to its ini- 7 tial public offering date, may confidentially submit 8 to the Commission a draft registration statement, 9 for confidential nonpublic review by the staff of the 10 Commission prior to public filing, provided that the 11 initial confidential submission and all amendments 12 thereto shall be publicly filed with the Commission 13 not later than 15 days before the date on which the 14 issuer conducts a road show, as such term is defined 15 in section 230.433(h)(4) of title 17, Code of Federal 16 Regulations, or any successor thereto.’’. 22 TITLE V—REGULATORY RELIEF FOR MAIN STREET AND COMMUNITY FINANCIAL INSTITUTIONS Subtitle A—Preserving Access to Manufactured Housing 23 SEC. 501. MORTGAGE ORIGINATOR DEFINITION. 17 18 19 20 21 24 Section 103 of the Truth in Lending Act (15 U.S.C. 25 1602) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00277 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 278 1 (1) by redesignating the second subsection (cc) 2 and subsection (dd) as subsections (dd) and (ee), re- 3 spectively; and 4 (2) in paragraph (2)(C) of subsection (dd), as 5 so redesignated, by striking ‘‘an employee of a re- 6 tailer of manufactured homes who is not described 7 in clause (i) or (iii) of subparagraph (A) and who 8 does not advise a consumer on loan terms (including 9 rates, fees, and other costs)’’ and inserting ‘‘a re- 10 tailer of manufactured or modular homes or its em- 11 ployees unless such retailer or its employees receive 12 compensation or gain for engaging in activities de- 13 scribed in subparagraph (A) that is in excess of any 14 compensation or gain received in a comparable cash 15 transaction’’. 16 17 SEC. 502. HIGH-COST MORTGAGE DEFINITION. Section 103 of the Truth in Lending Act (15 U.S.C. 18 1602), as amended by section 501, is further amended— 19 (1) by redesignating subsection (aa) (relating to 20 disclosure of greater amount or percentage), as so 21 designated by section 1100A of the Consumer Fi- 22 nancial Protection Act of 2010, as subsection (bb); 23 (2) by redesignating subsection (bb) (relating to 24 high cost mortgages), as so designated by section 25 1100A of the Consumer Financial Protection Act of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00278 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 279 1 2010, as subsection (aa), and moving such sub- 2 section to immediately follow subsection (z); and 3 4 (3) in subsection (aa)(1)(A), as so redesignated— 5 (A) in clause (i)(I), by striking ‘‘(8.5 per- 6 centage points, if the dwelling is personal prop- 7 erty and the transaction is for less than 8 $50,000)’’ and inserting ‘‘(10 percentage points 9 if the dwelling is personal property or is a 10 transaction that does not include the purchase 11 of real property on which a dwelling is to be 12 placed, and the transaction is for less than 13 $75,000 (as such amount is adjusted by the 14 Consumer Law Enforcement Agency to reflect 15 the change in the Consumer Price Index))’’; 16 and 17 (B) in clause (ii)— 18 (i) in subclause (I), by striking ‘‘or’’ 19 at the end; and 20 (ii) by adding at the end the fol- 21 lowing: 22 ‘‘(III) in the case of a trans- 23 action for less than $75,000 (as such 24 amount is adjusted by the Consumer 25 Law Enforcement Agency to reflect G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00279 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 280 1 the change in the Consumer Price 2 Index) in which the dwelling is per- 3 sonal property (or is a consumer cred- 4 it transaction that does not include 5 the purchase of real property on 6 which a dwelling is to be placed) the 7 greater of 5 percent of the total trans- 8 action amount or $3,000 (as such 9 amount is adjusted by the Consumer 10 Law Enforcement Agency to reflect 11 the change in the Consumer Price 12 Index); or’’. 13 14 15 Subtitle B—Mortgage Choice SEC. 506. DEFINITION OF POINTS AND FEES. (a) AMENDMENT TO SECTION 103 OF TILA.—Para- 16 graph (4) of section 103(aa) of the Truth in Lending Act, 17 as redesignated by section 502, is amended— 18 19 (1) by striking ‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph (1)(A) and section 129C’’; 20 (2) in subparagraph (C)— 21 (A) by inserting ‘‘and insurance’’ after 22 ‘‘taxes’’; 23 (B) in clause (ii), by inserting ‘‘, except as 24 retained by a creditor or its affiliate as a result 25 of their participation in an affiliated business G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00280 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 281 1 arrangement (as defined in section 3(7) of the 2 Real Estate Settlement Procedures Act of 1974 3 (12 U.S.C. 2602(7))’’ after ‘‘compensation’’; 4 and 5 (C) by striking clause (iii) and inserting 6 the following: 7 ‘‘(iii) the charge is— 8 ‘‘(I) a bona fide third-party charge 9 not retained by the mortgage originator, 10 creditor, or an affiliate of the creditor or 11 mortgage originator; or 12 ‘‘(II) a charge set forth in section 13 106(e)(1);’’; and 14 (3) in subparagraph (D)— 15 (A) by striking ‘‘accident,’’; and 16 (B) by striking ‘‘or any payments’’ and in- 17 18 serting ‘‘and any payments’’. (b) AMENDMENT TO SECTION 129C OF TILA.—Sec- 19 tion 129C of the Truth in Lending Act (15 U.S.C. 1639c) 20 is amended— 21 (1) in subsection (a)(5)(C), by striking ‘‘103’’ 22 and all that follows through ‘‘or mortgage origi- 23 nator’’ and inserting ‘‘103(aa)(4)’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00281 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 282 1 (2) in subsection (b)(2)(C)(i), by striking ‘‘103’’ 2 and all that follows through ‘‘or mortgage origi- 3 nator)’’ and inserting ‘‘103(aa)(4)’’. 5 Subtitle C—Financial Institution Customer Protection 6 SEC. 511. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI- 7 NATION REQUESTS AND ORDERS. 4 8 (a) TERMINATION REQUESTS OR ORDERS MUST BE 9 MATERIAL.— 10 (1) IN appropriate Federal 11 banking agency may not formally or informally re- 12 quest or order a depository institution to terminate 13 a specific customer account or group of customer ac- 14 counts or to otherwise restrict or discourage a de- 15 pository institution from entering into or maintain- 16 ing a banking relationship with a specific customer 17 or group of customers unless— 18 (A) the agency has a material reason for 19 such request or order; and 20 (B) such reason is not based solely on rep- 21 utation risk. 22 (2) TREATMENT OF NATIONAL SECURITY 23 THREATS.—If 24 cy believes a specific customer or group of customers 25 is, or is acting as a conduit for, an entity which— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—An 15:00 Apr 19, 2017 Jkt 000000 an appropriate Federal banking agen- (657255 10) PO 00000 Frm 00282 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 283 1 (A) poses a threat to national security; 2 (B) is involved in terrorist financing; 3 (C) is an agency of the government of 4 Iran, North Korea, Syria, or any country listed 5 from time to time on the State Sponsors of 6 Terrorism list; 7 (D) is located in, or is subject to the juris- 8 diction of, any country specified in subpara- 9 graph (C); or 10 (E) does business with any entity described 11 in subparagraph (C) or (D), unless the appro- 12 priate Federal banking agency determines that 13 the customer or group of customers has used 14 due diligence to avoid doing business with any 15 entity described in subparagraph (C) or (D), 16 such belief shall satisfy the requirement under para- 17 graph (1). 18 (b) NOTICE REQUIREMENT.— 19 (1) IN an appropriate Federal 20 banking agency formally or informally requests or 21 orders a depository institution to terminate a spe- 22 cific customer account or a group of customer ac- 23 counts, the agency shall— 24 (A) provide such request or order to the 25 institution in writing; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—If 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00283 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 284 1 (B) accompany such request or order with 2 a written justification for why such termination 3 is needed, including any specific laws or regula- 4 tions the agency believes are being violated by 5 the customer or group of customers, if any. 6 (2) JUSTIFICATION jus- 7 tification described under paragraph (1)(B) may not 8 be based solely on the reputation risk to the deposi- 9 tory institution. 10 (c) CUSTOMER NOTICE.— 11 (1) NOTICE REQUIRED.—Except as provided 12 under paragraph (2), if an appropriate Federal 13 banking agency orders a depository institution to 14 terminate a specific customer account or a group of 15 customer accounts, the depository institution shall 16 inform the customer or customers of the justification 17 for the customer’s account termination described 18 under subsection (b). 19 (2) NOTICE 20 TIONAL SECURITY.—If 21 ing agency requests or orders a depository institu- 22 tion to terminate a specific customer account or a 23 group of customer accounts based on a belief that 24 the customer or customers pose a threat to national 25 security, or are otherwise described under subsection G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REQUIREMENT.—A 15:00 Apr 19, 2017 Jkt 000000 PROHIBITED IN CASES OF NA- an appropriate Federal bank- (657255 10) PO 00000 Frm 00284 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 285 1 (a)(2), neither the depository institution nor the ap- 2 propriate Federal banking agency may inform the 3 customer or customers of the justification for the 4 customer’s account termination. 5 (d) REPORTING REQUIREMENT.—Each appropriate 6 Federal banking agency shall issue an annual report to 7 the Congress stating— 8 (1) the aggregate number of specific customer 9 accounts that the agency requested or ordered a de- 10 pository institution to terminate during the previous 11 year; and 12 (2) the legal authority on which the agency re- 13 lied in making such requests and orders and the fre- 14 quency on which the agency relied on each such au- 15 thority. 16 (e) DEFINITIONS.—For purposes of this section: 17 (1) APPROPRIATE 18 CY.—The 19 cy’’ means— term ‘‘appropriate Federal banking agen- 20 (A) the appropriate Federal banking agen- 21 cy, as defined under section 3 of the Federal 22 Deposit Insurance Act (12 U.S.C. 1813); and 23 (B) the National Credit Union Administra- 24 tion, in the case of an insured credit union. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FEDERAL BANKING AGEN- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00285 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 286 1 2 (2) DEPOSITORY INSTITUTION.—The term ‘‘de- pository institution’’ means— 3 (A) a depository institution, as defined 4 under section 3 of the Federal Deposit Insur- 5 ance Act (12 U.S.C. 1813); and 6 (B) an insured credit union. 7 SEC. 512. AMENDMENTS TO THE FINANCIAL INSTITUTIONS 8 REFORM, 9 ACT OF 1989. 10 RECOVERY, AND ENFORCEMENT Section 951 of the Financial Institutions Reform, Re- 11 covery, and Enforcement Act of 1989 (12 U.S.C. 1833a) 12 is amended— 13 (1) in subsection (c)(2), by striking ‘‘affecting 14 a federally insured financial institution’’ and insert- 15 ing ‘‘against a federally insured financial institution 16 or by a federally insured financial institution against 17 an unaffiliated third person’’; and 18 (2) in subsection (g)— 19 (A) in the heading, by striking ‘‘SUB- 20 POENAS’’ 21 (B) by amending paragraph (1)(C) to read 22 as follows: 23 ‘‘(C) summon witnesses and require the 24 production of any books, papers, correspond- 25 ence, memoranda, or other records which the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 and inserting ‘‘INVESTIGATIONS’’; and 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00286 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 287 1 Attorney General deems relevant or material to 2 the inquiry, if the Attorney General— 3 ‘‘(i) requests a court order from a 4 court of competent jurisdiction for such ac- 5 tions and offers specific and articulable 6 facts showing that there are reasonable 7 grounds to believe that the information or 8 testimony sought is relevant and material 9 for conducting an investigation under this 10 section; or 11 ‘‘(ii) either personally or through dele- 12 gation no lower than the Deputy Attorney 13 General, issues and signs a subpoena for 14 such actions and such subpoena is sup- 15 ported by specific and articulable facts 16 showing that there are reasonable grounds 17 to believe that the information or testi- 18 mony sought is relevant for conducting an 19 investigation under this section.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00287 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 288 2 Subtitle D—Portfolio Lending and Mortgage Access 3 SEC. 516. SAFE HARBOR FOR CERTAIN LOANS HELD ON 1 4 5 PORTFOLIO. (a) IN GENERAL.—Section 129C of the Truth in 6 Lending Act (15 U.S.C. 1639c) is amended by adding at 7 the end the following: 8 ‘‘(j) SAFE HARBOR FOR CERTAIN LOANS HELD ON 9 PORTFOLIO.— 10 11 ‘‘(1) SAFE DEPOSITORY INSTITUTIONS.— 12 ‘‘(A) IN GENERAL.—A creditor that is a 13 depository institution shall not be subject to 14 suit for failure to comply with subsection (a), 15 (c)(1), or (f)(2) of this section or section 129H 16 with respect to a residential mortgage loan, and 17 the banking regulators shall treat such loan as 18 a qualified mortgage, if— 19 ‘‘(i) the creditor has, since the origi- 20 nation of the loan, held the loan on the 21 balance sheet of the creditor; and 22 ‘‘(ii) all prepayment penalties with re- 23 spect to the loan comply with the limita- 24 tions described under subsection (c)(3). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 HARBOR FOR CREDITORS THAT ARE 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00288 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 289 1 ‘‘(B) EXCEPTION 2 FERS.—In 3 that transfers a loan originated by that institu- 4 tion to another depository institution by reason 5 of the bankruptcy or failure of the originating 6 depository institution or the purchase of the 7 originating depository institution, the depository 8 institution transferring such loan shall be 9 deemed to have complied with the requirement the case of a depository institution 10 under subparagraph (A)(i). 11 ‘‘(2) SAFE HARBOR FOR MORTGAGE ORIGINA- 12 TORS.—A 13 to suit for a violation of section 129B(c)(3)(B) for 14 steering a consumer to a residential mortgage loan 15 if— mortgage originator shall not be subject 16 ‘‘(A) the creditor of such loan is a deposi- 17 tory institution and has informed the mortgage 18 originator that the creditor intends to hold the 19 loan on the balance sheet of the creditor for the 20 life of the loan; and 21 ‘‘(B) the mortgage originator informs the 22 consumer that the creditor intends to hold the 23 loan on the balance sheet of the creditor for the 24 life of the loan. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FOR CERTAIN TRANS- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00289 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 290 1 ‘‘(3) DEFINITIONS.—For purposes of this sub- 2 section: 3 ‘‘(A) BANKING REGULATORS.—The term 4 ‘banking regulators’ means the Federal banking 5 agencies, the Consumer Law Enforcement 6 Agency, and the National Credit Union Admin- 7 istration. 8 ‘‘(B) DEPOSITORY INSTITUTION.—The 9 term ‘depository institution’ has the meaning 10 given that term under section 19(b)(1) of the 11 Federal Reserve Act (12 U.S.C. 505(b)(1)). 12 ‘‘(C) FEDERAL BANKING AGENCIES.—The 13 term ‘Federal banking agencies’ has the mean- 14 ing given that term under section 3 of the Fed- 15 eral Deposit Insurance Act.’’. 16 (b) RULE OF CONSTRUCTION.—Nothing in the 17 amendment made by this section may be construed as pre18 venting a balloon loan from qualifying for the safe harbor 19 provided under section 129C(j) of the Truth in Lending 20 Act if the balloon loan otherwise meets all of the require21 ments under such subsection (j), regardless of whether the 22 balloon loan meets the requirements described under 23 clauses (i) through (iv) of section 129C(b)(2)(E) of such 24 Act. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00290 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 291 2 Subtitle E—Application of the Expedited Funds Availability Act 3 SEC. 521. APPLICATION OF THE EXPEDITED FUNDS AVAIL- 1 4 5 ABILITY ACT. (a) IN GENERAL.—The Expedited Funds Availability 6 Act (12 U.S.C. 4001 et seq.) is amended— 7 (1) in section 602(20) (12 U.S.C. 4001(20)) by 8 inserting ‘‘, located in the United States,’’ after 9 ‘‘ATM’’; 10 (2) in section 602(21) (12 U.S.C. 4001(21)) by 11 inserting ‘‘American Samoa, the Commonwealth of 12 the Northern Mariana Islands,’’ after ‘‘Puerto 13 Rico,’’; 14 (3) in section 602(23) (12 U.S.C. 4001(23)) by 15 inserting ‘‘American Samoa, the Commonwealth of 16 the Northern Mariana Islands,’’ after ‘‘Puerto 17 Rico,’’; and 18 (4) in section 603(d)(2)(A) (12 U.S.C. 19 4002(d)(2)(A)), by inserting ‘‘American Samoa, the 20 Commonwealth of the Northern Mariana Islands,’’ 21 after ‘‘Puerto Rico,’’. 22 (b) EFFECTIVE DATE.—This section shall take effect 23 on January 1, 2017. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00291 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 292 2 Subtitle F—Small Bank Holding Company Policy Statement 3 SEC. 526. CHANGES REQUIRED TO SMALL BANK HOLDING 4 COMPANY POLICY STATEMENT ON ASSESS- 5 MENT OF FINANCIAL AND MANAGERIAL FAC- 6 TORS. 1 7 (a) IN GENERAL.—Before the end of the 6-month pe- 8 riod beginning on the date of the enactment of this Act, 9 the Board of Governors of the Federal Reserve System 10 shall revise the Small Bank Holding Company Policy 11 Statement on Assessment of Financial and Managerial 12 Factors (12 C.F.R. part 225—appendix C) to raise the 13 consolidated asset threshold under such policy statement 14 from $1,000,000,000 (as adjusted by Public Law 113– 15 250) to $5,000,000,000. 16 (b) CONFORMING AMENDMENT.—Subparagraph (C) 17 of section 171(b)(5) of the Dodd-Frank Wall Street Re18 form and Consumer Protection Act (12 U.S.C. 19 5371(b)(5)) is amended to read as follows: 20 ‘‘(C) any bank holding company or savings 21 and loan holding company that is subject to the 22 application of the Small Bank Holding Com- 23 pany Policy Statement on Assessment of Finan- 24 cial and Managerial Factors of the Board of 25 Governors (12 C.F.R. part 225—appendix C).’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00292 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 293 2 Subtitle G—Community Institution Mortgage Relief 3 SEC. 531. COMMUNITY FINANCIAL INSTITUTION MORTGAGE 1 4 RELIEF. 5 (a) EXEMPTION FROM ESCROW REQUIREMENTS 6 LOANS HELD BY FOR SMALLER CREDITORS.—Section 129D 7 of the Truth in Lending Act (15 U.S.C. 1639d) is amend8 ed— 9 10 (1) by adding at the end the following: ‘‘(k) SAFE HARBOR FOR LOANS HELD BY SMALLER 11 CREDITORS.— 12 ‘‘(1) IN creditor shall not be in 13 violation of subsection (a) with respect to a loan if— 14 ‘‘(A) the creditor has consolidated assets of 15 $10,000,000,000 or less; and 16 ‘‘(B) the creditor holds the loan on the bal- 17 ance sheet of the creditor for the 3-year period 18 beginning on the date of the origination of the 19 loan. 20 ‘‘(2) EXCEPTION FOR CERTAIN TRANSFERS.— 21 In the case of a creditor that transfers a loan to an- 22 other person by reason of the bankruptcy or failure 23 of the creditor, the purchase of the creditor, or a su- 24 pervisory act or recommendation from a State or 25 Federal regulator, the creditor shall be deemed to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—A 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00293 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 294 1 have complied with the requirement under para- 2 graph (1)(B).’’; and 3 (2) by striking the term ‘‘Board’’ each place 4 such term appears and inserting ‘‘Consumer Law 5 Enforcement Agency’’. 6 (b) MODIFICATION 7 SERVICERS OF TO EXEMPTION SMALL FOR MORTGAGE LOANS.—Section 6 of the Real 8 Estate Settlement Procedures Act of 1974 (12 U.S.C. 9 2605) is amended by adding at the end the following: 10 ‘‘(n) SMALL SERVICER EXEMPTION.—The Consumer 11 Law Enforcement Agency shall, by regulation, provide ex12 emptions to, or adjustments for, the provisions of this sec13 tion for a servicer that annually services 20,000 or fewer 14 mortgage loans, in order to reduce regulatory burdens 15 while appropriately balancing consumer protections.’’. 16 17 18 19 Subtitle H—Financial Institutions Examination Fairness and Reform SEC. 536. TIMELINESS OF EXAMINATION REPORTS. (a) IN GENERAL.—The Federal Financial Institu- 20 tions Examination Council Act of 1978 (12 U.S.C. 3301 21 et seq.) is amended by adding at the end the following: 22 ‘‘SEC. 1012. TIMELINESS OF EXAMINATION REPORTS. 23 ‘‘(a) IN GENERAL.— 24 ‘‘(1) FINAL 25 15:00 Apr 19, 2017 Federal financial institutions regulatory agency shall provide G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EXAMINATION REPORT.—A Jkt 000000 (657255 10) PO 00000 Frm 00294 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 295 1 a final examination report to a financial institution 2 not later than 60 days after the later of— 3 ‘‘(A) the exit interview for an examination 4 of the institution; or 5 ‘‘(B) the provision of additional informa- 6 tion by the institution relating to the examina- 7 tion. 8 ‘‘(2) EXIT INTERVIEW.—If a financial institu- 9 tion is not subject to a resident examiner program, 10 the exit interview shall occur not later than the end 11 of the 9-month period beginning on the commence- 12 ment of the examination, except that such period 13 may be extended by the Federal financial institu- 14 tions regulatory agency by providing written notice 15 to the institution and the Independent Examination 16 Review Director describing with particularity the 17 reasons that a longer period is needed to complete 18 the examination. 19 ‘‘(b) EXAMINATION MATERIALS.—Upon the request 20 of a financial institution, the Federal financial institutions 21 regulatory agency shall include with the final report an 22 appendix listing all examination or other factual informa23 tion relied upon by the agency in support of a material 24 supervisory determination. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00295 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 296 1 2 ‘‘SEC. 1013. EXAMINATION STANDARDS. ‘‘(a) IN GENERAL.—In the examination of a financial 3 institution— 4 ‘‘(1) a commercial loan shall not be placed in 5 non-accrual status solely because the collateral for 6 such loan has deteriorated in value; 7 ‘‘(2) a modified or restructured commercial loan 8 shall be removed from non-accrual status if the bor- 9 rower demonstrates the ability to perform on such 10 loan over a maximum period of 6 months, except 11 that with respect to loans on a quarterly, semi- 12 annual, or longer repayment schedule such period 13 shall be a maximum of 3 consecutive repayment pe- 14 riods; 15 ‘‘(3) a new appraisal on a performing commer- 16 cial loan shall not be required unless an advance of 17 new funds is involved; and 18 ‘‘(4) in classifying a commercial loan in which 19 there has been deterioration in collateral value, the 20 amount to be classified shall be the portion of the 21 deficiency relating to the decline in collateral value 22 and repayment capacity of the borrower. 23 ‘‘(b) WELL CAPITALIZED INSTITUTIONS.—The Fed- 24 eral financial institutions regulatory agencies may not re25 quire a financial institution that is well capitalized to raise G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00296 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 297 1 additional capital in lieu of an action prohibited under 2 subsection (a). 3 ‘‘(c) CONSISTENT LOAN CLASSIFICATIONS.—The 4 Federal financial institutions regulatory agencies shall de5 velop and apply identical definitions and reporting require6 ments for non-accrual loans. 7 ‘‘SEC. 1014. OFFICE OF INDEPENDENT EXAMINATION RE- 8 9 VIEW. ‘‘(a) ESTABLISHMENT.—There is established in the 10 Council an Office of Independent Examination Review 11 (the ‘Office’). 12 ‘‘(b) HEAD OF OFFICE.—There is established the po- 13 sition of the Independent Examination Review Director 14 (the ‘Director’), as the head of the Office. The Director 15 shall be appointed by the Council and shall be independent 16 from any member agency of the Council. 17 ‘‘(c) STAFFING.—The Director is authorized to hire 18 staff to support the activities of the Office. 19 ‘‘(d) DUTIES.—The Director shall— 20 ‘‘(1) receive and, at the Director’s discretion, 21 investigate complaints from financial institutions, 22 their representatives, or another entity acting on be- 23 half of such institutions, concerning examinations, 24 examination practices, or examination reports; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00297 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 298 1 ‘‘(2) hold meetings, at least once every three 2 months and in locations designed to encourage par- 3 ticipation from all sections of the United States, 4 with financial institutions, their representatives, or 5 another entity acting on behalf of such institutions, 6 to discuss examination procedures, examination 7 practices, or examination policies; 8 ‘‘(3) review examination procedures of the Fed- 9 eral financial institutions regulatory agencies to en- 10 sure that the written examination policies of those 11 agencies are being followed in practice and adhere to 12 the standards for consistency established by the 13 Council; 14 ‘‘(4) conduct a continuing and regular review of 15 examination quality assurance for all examination 16 types conducted by the Federal financial institutions 17 regulatory agencies; 18 19 ‘‘(5) adjudicate any supervisory appeal initiated under section 1015; and 20 ‘‘(6) report annually to the Committee on Fi- 21 nancial Services of the House of Representatives, the 22 Committee on Banking, Housing, and Urban Affairs 23 of the Senate, and the Council, on the reviews car- 24 ried out pursuant to paragraphs (3) and (4), includ- 25 ing compliance with the requirements set forth in G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00298 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 299 1 section 1012 regarding timeliness of examination re- 2 ports, and the Council’s recommendations for im- 3 provements in examination procedures, practices, 4 and policies. 5 ‘‘(e) CONFIDENTIALITY.—The Director shall keep 6 confidential all meetings with, discussions with, and infor7 mation provided by financial institutions. 8 ‘‘SEC. 1015. RIGHT TO INDEPENDENT REVIEW OF MATERIAL 9 10 SUPERVISORY DETERMINATIONS. ‘‘(a) IN GENERAL.—A financial institution shall have 11 the right to obtain an independent review of a material 12 supervisory determination contained in a final report of 13 examination. 14 ‘‘(b) NOTICE.— 15 ‘‘(1) TIMING.—A financial institution seeking 16 review of a material supervisory determination under 17 this section shall file a written notice with the Inde- 18 pendent Examination Review Director (the ‘Direc- 19 tor’) within 60 days after receiving the final report 20 of examination that is the subject of such review. 21 ‘‘(2) IDENTIFICATION 22 The written notice shall identify the material super- 23 visory determination that is the subject of the inde- 24 pendent examination review, and a statement of the 25 reasons why the institution believes that the deter- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF DETERMINATION.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00299 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 300 1 mination is incorrect or should otherwise be modi- 2 fied. 3 ‘‘(3) INFORMATION 4 TUTION.—Any 5 cy in the final report that is not in the possession 6 of the financial institution may be requested by the 7 financial institution and shall be delivered promptly 8 by the agency to the financial institution. 9 ‘‘(c) RIGHT TO HEARING.— 10 ‘‘(1) IN information relied upon by the agen- GENERAL.—The Director shall deter- 11 mine the merits of the appeal on the record or, at 12 the financial institution’s election, shall refer the ap- 13 peal to an Administrative Law Judge to conduct a 14 confidential hearing pursuant to the procedures set 15 forth under sections 556 and 557 of title 5, United 16 States Code, which hearing shall take place not later 17 than 60 days after the petition for review was re- 18 ceived by the Director, and to issue a proposed deci- 19 sion to the Director based upon the record estab- 20 lished at such hearing. 21 ‘‘(2) STANDARD OF REVIEW.—In rendering a 22 determination or recommendation under this sub- 23 section, neither the Administrative Law Judge nor 24 the Director shall defer to the opinions of the exam- 25 iner or agency, but shall conduct a de novo review G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TO BE PROVIDED TO INSTI- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00300 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 301 1 to independently determine the appropriateness of 2 the agency’s decision based upon the relevant stat- 3 utes, regulations, and other appropriate guidance, as 4 well as evidence adduced at any hearing. 5 ‘‘(d) FINAL DECISION.—A decision by the Director 6 on an independent review under this section shall— 7 8 ‘‘(1) be made not later than 60 days after the record has been closed; and 9 ‘‘(2) be deemed final agency action and shall 10 bind the agency whose supervisory determination 11 was the subject of the review and the financial insti- 12 tution requesting the review. 13 ‘‘(e) RIGHT TO JUDICIAL REVIEW.—A financial insti- 14 tution shall have the right to petition for review of final 15 agency action under this section by filing a Petition for 16 Review within 60 days of the Director’s decision in the 17 United States Court of Appeals for the District of Colum18 bia Circuit or the Circuit in which the financial institution 19 is located. 20 ‘‘(f) REPORT.—The Director shall report annually to 21 the Committee on Financial Services of the House of Rep22 resentatives and the Committee on Banking, Housing, and 23 Urban Affairs of the Senate on actions taken under this 24 section, including the types of issues that the Director has 25 reviewed and the results of those reviews. In no case shall G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00301 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 302 1 such a report contain information about individual finan2 cial institutions or any confidential or privileged informa3 tion shared by financial institutions. 4 ‘‘(g) RETALIATION PROHIBITED.—A Federal finan- 5 cial institutions regulatory agency may not— 6 ‘‘(1) retaliate against a financial institution, in- 7 cluding service providers, or any institution-affiliated 8 party (as defined under section 3 of the Federal De- 9 posit Insurance Act), for exercising appellate rights 10 under this section; or 11 ‘‘(2) delay or deny any agency action that 12 would benefit a financial institution or any institu- 13 tion-affiliated party on the basis that an appeal 14 under this section is pending under this section. 15 ‘‘(h) RULE OF CONSTRUCTION.—Nothing in this sec- 16 tion may be construed— 17 ‘‘(1) to affect the right of a Federal financial 18 institutions regulatory agency to take enforcement 19 or other supervisory actions related to a material su- 20 pervisory determination under review under this sec- 21 tion; or 22 ‘‘(2) to prohibit the review under this section of 23 a material supervisory determination with respect to 24 which there is an ongoing enforcement or other su- 25 pervisory action.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00302 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 303 1 (b) ADDITIONAL AMENDMENTS.— 2 (1) RIEGLE COMMUNITY DEVELOPMENT AND 3 REGULATORY IMPROVEMENT ACT OF 1994.—Section 4 309 of the Riegle Community Development and Reg- 5 ulatory Improvement Act of 1994 (12 U.S.C. 4806) 6 is amended— 7 (A) in subsection (a), by inserting after 8 ‘‘appropriate Federal banking agency’’ the fol- 9 lowing: ‘‘, the Consumer Law Enforcement 10 Agency,’’; 11 (B) in subsection (b)— 12 (i) in paragraph (2), by striking ‘‘the 13 appellant from retaliation by agency exam- 14 iners’’ and inserting ‘‘the insured deposi- 15 tory institution or insured credit union 16 from retaliation by the agencies referred to 17 in subsection (a)’’; and 18 (ii) by adding at the end the following 19 flush-left text: 20 ‘‘For purposes of this subsection and subsection (e), retal21 iation includes delaying consideration of, or withholding 22 approval of, any request, notice, or application that other23 wise would have been approved, but for the exercise of the 24 institution’s or credit union’s rights under this section.’’; 25 (C) in subsection (e)(2)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00303 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 304 1 (i) in subparagraph (B), by striking 2 ‘‘and’’ at the end; 3 (ii) in subparagraph (C), by striking 4 the period and inserting ‘‘; and’’; and 5 (iii) by adding at the end the fol- 6 lowing: 7 ‘‘(D) ensure that appropriate safeguards 8 exist for protecting the insured depository insti- 9 tution or insured credit union from retaliation 10 by any agency referred to in subsection (a) for 11 exercising its rights under this subsection.’’; 12 and 13 (D) in subsection (f)(1)(A)— 14 (i) in clause (ii), by striking ‘‘and’’ at 15 the end; 16 (ii) in clause (iii), by striking ‘‘and’’ 17 at the end; and 18 (iii) by adding at the end the fol- 19 lowing: 20 ‘‘(iv) any issue specifically listed in an 21 exam report as a matter requiring atten- 22 tion by the institution’s management or 23 board of directors; and 24 ‘‘(v) any suspension or removal of an 25 institution’s status as eligible for expedited G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00304 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 305 1 processing of applications, requests, no- 2 tices, or filings on the grounds of a super- 3 visory or compliance concern, regardless of 4 whether that concern has been cited as a 5 basis for another material supervisory de- 6 termination or matter requiring attention 7 in an examination report, provided that the 8 conduct at issue did not involve violation of 9 any criminal law; and’’. 10 (2) FEDERAL UNION ACT.—Section 11 205(j) of the Federal Credit Union Act (12 U.S.C. 12 1785(j)) is amended by inserting ‘‘the Consumer 13 Law Enforcement Agency,’’ before ‘‘the Administra- 14 tion’’ each place such term appears. 15 (3) FEDERAL FINANCIAL INSTITUTIONS EXAM- 16 INATION COUNCIL ACT OF 1978.—The 17 nancial Institutions Examination Council Act of 18 1978 (12 U.S.C. 3301 et seq.) is amended— 19 Federal Fi- (A) in section 1003, by amending para- 20 graph (1) to read as follows: 21 ‘‘(1) the term ‘Federal financial institutions 22 regulatory agencies’— 23 ‘‘(A) means the Office of the Comptroller 24 of the Currency, the Board of Governors of the 25 Federal Reserve System, the Federal Deposit G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 CREDIT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00305 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 306 1 Insurance Corporation, and the National Credit 2 Union Administration; and 3 ‘‘(B) for purposes of sections 1012, 1013, 4 1014, and 1015, includes the Consumer Law 5 Enforcement Agency;’’; and 6 (B) in section 1005, by striking ‘‘One- 7 fifth’’ and inserting ‘‘One-fourth’’. 10 Subtitle I—National Credit Union Administration Budget Transparency 11 SEC. 541. BUDGET TRANSPARENCY FOR THE NCUA. 8 9 12 Section 209(b) of the Federal Credit Union Act (12 13 U.S.C. 1789) is amended— 14 15 (1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; 16 17 (2) by inserting before paragraph (2), as so redesignated, the following: 18 ‘‘(1) on an annual basis and prior to the sub- 19 mission of the detailed business-type budget required 20 under paragraph (2)— 21 ‘‘(A) make publicly available and cause to 22 be printed in the Federal Register a draft of 23 such detailed business-type budget; and 24 ‘‘(B) hold a public hearing, with public no- 25 tice provided of such hearing, wherein the pub- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00306 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 307 1 lic can submit comments on the draft of such 2 detailed business-type budget;’’; and 3 (3) in paragraph (2), as so redesignated— 4 (A) by inserting ‘‘detailed’’ after ‘‘submit 5 a’’; and 6 (B) by inserting ‘‘, and where such budget 7 shall address any comments submitted by the 8 public pursuant to paragraph (1)(B)’’ after 9 ‘‘Control Act’’. 12 Subtitle J—Taking Account of Institutions With Low Operation Risk 13 SEC. 546. REGULATIONS APPROPRIATE TO BUSINESS MOD- 10 11 14 15 ELS. (a) IN GENERAL.—For any regulatory action occur- 16 ring subsequent to enactment of this section, and notwith17 standing any other provision of law, the Federal financial 18 institutions regulatory agencies shall— 19 (1) take into consideration the risk profile and 20 business models of the various institutions or classes 21 of institutions subject to the regulatory action; 22 (2) determine the necessity, appropriateness, 23 and impact of applying such regulatory action to 24 such institutions or classes of institutions; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00307 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 308 1 (3) tailor such regulatory action applicable to 2 such institutions or class of institutions in a manner 3 that limits the regulatory compliance impact, cost, li- 4 ability risk, and other burdens as is appropriate for 5 the risk profile and business model involved. 6 (b) OTHER CONSIDERATIONS.—In satisfying the re- 7 quirements of subsection (a) and when implementing such 8 regulatory action, the Federal financial institutions regu9 latory agencies shall also consider— 10 (1) the impact that such regulatory action, both 11 by itself and in conjunction with the aggregate effect 12 of other regulations, has on the ability of the institu- 13 tion or class of institutions to flexibly serve evolving 14 and diverse customer needs; 15 (2) the potential unintended impact of examina- 16 tion manuals or other regulatory directives that 17 work in conflict with the tailoring of such regulatory 18 action described in subsection (a)(3); and 19 (3) the underlying policy objectives of the regu- 20 latory action and statutory scheme involved. 21 (c) NOTICE 22 MAKING.—The OF PROPOSED AND FINAL RULE- Federal financial institutions regulatory 23 agencies shall disclose in every notice of proposed rule24 making and in any final rulemaking for a regulatory ac25 tion how the agency has applied subsections (a) and (b). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00308 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 309 1 (d) REPORTS TO CONGRESS.— 2 (1) INDIVIDUAL 3 (A) IN GENERAL.—The Federal financial 4 institutions regulatory agencies shall individ- 5 ually report to the Committee on Financial 6 Services of the House of Representatives and 7 the Committee on Banking, Housing, and 8 Urban Affairs of the Senate, within twelve 9 months of enactment of this section and annu- 10 ally thereafter, on the specific actions taken to 11 tailor the agency’s regulatory actions pursuant 12 to the requirements of this section. 13 (B) APPEARANCE BEFORE THE COMMIT- 14 TEES.—The 15 stitution regulatory agency shall appear before 16 the Committee on Financial Services of the 17 House of Representatives and the Committee 18 on Banking, Housing, and Urban Affairs of the 19 Senate after each report is made pursuant to 20 subparagraph (A), to testify on the contents of 21 such report. 22 (2) FIEC 23 head of each Federal financial in- REPORTS.— (A) IN GENERAL.—The Financial Institu- 24 tions Examination Council shall report to the 25 Committee on Financial Services of the House G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AGENCY REPORTS.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00309 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 310 1 of Representatives and the Committee on Bank- 2 ing, Housing, and Urban Affairs of the Senate, 3 within three months after the reports required 4 under paragraph (1)— 5 (i) on the extent to which regulatory 6 actions tailored pursuant to this section re- 7 sult in differential regulation of similarly- 8 situated institutions of diverse charter 9 types with respect to comparable regula- 10 tions; and 11 (ii) the reasons for such differential 12 treatment. 13 (B) APPEARANCE BEFORE THE COMMIT- 14 TEES.—The 15 tions Examination Council shall appear before 16 the Committee on Financial Services of the 17 House of Representatives and the Committee 18 on Banking, Housing, and Urban Affairs of the 19 Senate after each report is made pursuant to 20 subparagraph (A), to testify on the contents of 21 such report. 22 Chairman of the Financial Institu- (e) LIMITED LOOK-BACK APPLICATION.—The Fed- 23 eral financial institutions regulatory agencies shall con24 duct a review of all regulations adopted during the period 25 beginning on the date that is five years before the date G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00310 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 311 1 of the introduction of this Act in the House of Representa2 tives and ending on the date of the enactment of this Act 3 and apply the requirements of this section to such regula4 tions. If the application of the requirements of this section 5 to any such regulation requires such regulation to be re6 vised, the agency shall revise such regulation within three 7 years of the enactment of this section. 8 (f) DEFINITIONS.—For purposes of this section, the 9 following definitions shall apply: 10 (1) FEDERAL 11 LATORY AGENCIES.—The 12 stitutions regulatory agencies’’ means the Office of 13 the Comptroller of the Currency, the Board of Gov- 14 ernors of the Federal Reserve System, the Federal 15 Deposit Insurance Corporation, the National Credit 16 Union Administration, and the Consumer Law En- 17 forcement Agency. 18 (2) REGULATORY term ‘‘Federal financial in- ACTION.—The term ‘‘regu- 19 latory action’’ means any proposed, interim, or final 20 rule or regulation, guidance, or published interpreta- 21 tion. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FINANCIAL INSTITUTIONS REGU- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00311 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 312 2 Subtitle K—Federal Savings Association Charter Flexibility 3 SEC. 551. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS 4 TO OPERATE AS A COVERED SAVINGS ASSO- 5 CIATION. 1 6 The Home Owners’ Loan Act is amended by inserting 7 after section 5 (12 U.S.C. 1464) the following: 8 ‘‘SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS 9 10 ASSOCIATION. ‘‘(a) DEFINITION.—In this section, the term ‘covered 11 savings association’ means a Federal savings association 12 that makes an election approved under subsection (b). 13 ‘‘(b) ELECTION.— 14 ‘‘(1) IN issuance of the rules 15 described in subsection (f), a Federal savings asso- 16 ciation may elect to operate as a covered savings as- 17 sociation by submitting a notice to the Comptroller 18 of such election. 19 ‘‘(2) APPROVAL.—A Federal savings association 20 shall be deemed to be approved to operate as a cov- 21 ered savings association on the date that is 60 days 22 after the date on which the Comptroller receives the 23 notice under paragraph (1), unless the Comptroller 24 notifies the Federal savings association otherwise. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Upon 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00312 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 313 1 ‘‘(c) RIGHTS DUTIES.—Notwithstanding any AND 2 other provision of law and except as otherwise provided 3 in this section, a covered savings association shall— 4 ‘‘(1) have the same rights and privileges as a 5 national bank that has its main office situated in the 6 same location as the home office of the covered sav- 7 ings association; and 8 ‘‘(2) be subject to the same duties, restrictions, 9 penalties, liabilities, conditions, and limitations that 10 would apply to such a national bank. 11 ‘‘(d) TREATMENT 12 TIONS.—A OF COVERED SAVINGS ASSOCIA- covered savings association shall be treated as 13 a Federal savings association for the purposes— 14 ‘‘(1) of governance of the covered savings asso- 15 ciation, including incorporation, bylaws, boards of 16 directors, shareholders, and distribution of divi- 17 dends; 18 ‘‘(2) of consolidation, merger, dissolution, con- 19 version (including conversion to a stock bank or to 20 another charter), conservatorship, and receivership; 21 and 22 ‘‘(3) determined by regulation of the Comp- 23 troller. 24 ‘‘(e) EXISTING BRANCHES.—A covered savings asso- 25 ciation may continue to operate any branch or agency the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00313 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 314 1 covered savings association operated on the date on which 2 an election under subsection (b) is approved. 3 ‘‘(f) RULEMAKING.—The Comptroller shall issue 4 rules to carry out this section— 5 ‘‘(1) that establish streamlined standards and 6 procedures that clearly identify required documenta- 7 tion or timelines for an election under subsection 8 (b); 9 ‘‘(2) that require a Federal savings association 10 that makes an election under subsection (b) to iden- 11 tify specific assets and subsidiaries— 12 ‘‘(A) that do not conform to the require- 13 ments for assets and subsidiaries of a national 14 bank; and 15 ‘‘(B) that are held by the Federal savings 16 association on the date on which the Federal 17 savings association submits a notice of such 18 election; 19 ‘‘(3) that establish— 20 ‘‘(A) a transition process for bringing such 21 assets and subsidiaries into conformance with 22 the requirements for a national bank; and 23 ‘‘(B) procedures for allowing the Federal 24 savings association to provide a justification for 25 grandfathering such assets and subsidiaries G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00314 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 315 1 after electing to operate as a covered savings 2 association; 3 ‘‘(4) that establish standards and procedures to 4 allow a covered savings association to terminate an 5 election under subsection (b) after an appropriate 6 period of time or to make a subsequent election; 7 ‘‘(5) that clarify requirements for the treatment 8 of covered savings associations, including the provi- 9 sions of law that apply to covered savings associa- 10 tions; and 11 ‘‘(6) as the Comptroller deems necessary and in 12 the interests of safety and soundness.’’. 13 14 Subtitle L—SAFE Transitional Licensing 15 SEC. 556. ELIMINATING BARRIERS TO JOBS FOR LOAN 16 ORIGINATORS. 17 (a) IN GENERAL.—The S.A.F.E. Mortgage Licensing 18 Act of 2008 (12 U.S.C. 5101 et seq.) is amended by add19 ing at the end the following: 20 ‘‘SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINA- 21 TORS. 22 23 ‘‘(a) TEMPORARY AUTHORITY FOR TO ORIGINATE LOANS LOAN ORIGINATORS MOVING FROM A DEPOSITORY 24 INSTITUTION TO A NON-DEPOSITORY INSTITUTION.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00315 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 316 1 ‘‘(1) IN employment by a 2 State-licensed mortgage company, an individual who 3 is a registered loan originator shall be deemed to 4 have temporary authority to act as a loan originator 5 in an application State for the period described in 6 paragraph (2) if the individual— 7 ‘‘(A) has not had an application for a loan 8 originator license denied, or had such a license 9 revoked or suspended in any governmental ju- 10 risdiction; 11 ‘‘(B) has not been subject to or served 12 with a cease and desist order in any govern- 13 mental jurisdiction or as described in section 14 1514(c); 15 ‘‘(C) has not been convicted of a felony 16 that would preclude licensure under the law of 17 the application State; 18 ‘‘(D) has submitted an application to be a 19 State-licensed loan originator in the application 20 State; and 21 ‘‘(E) was registered in the Nationwide 22 Mortgage Licensing System and Registry as a 23 loan originator during the 12-month period pre- 24 ceding the date of submission of the informa- 25 tion required under section 1505(a). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Upon 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00316 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 317 1 ‘‘(2) PERIOD.—The period described in para- 2 graph (1) shall begin on the date that the individual 3 submits the information required under section 4 1505(a) and shall end on the earliest of— 5 ‘‘(A) the date that the individual with- 6 draws the application to be a State-licensed 7 loan originator in the application State; 8 ‘‘(B) the date that the application State 9 denies, or issues a notice of intent to deny, the 10 application; 11 ‘‘(C) the date that the application State 12 grants a State license; or 13 ‘‘(D) the date that is 120 days after the 14 date on which the individual submits the appli- 15 cation, if the application is listed on the Nation- 16 wide Mortgage Licensing System and Registry 17 as incomplete. 18 19 ‘‘(b) TEMPORARY AUTHORITY TO ORIGINATE LOANS STATE-LICENSED LOAN ORIGINATORS MOVING FOR 20 INTERSTATE.— 21 ‘‘(1) IN State-licensed loan origi- 22 nator shall be deemed to have temporary authority 23 to act as a loan originator in an application State 24 for the period described in paragraph (2) if the 25 State-licensed loan originator— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—A 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00317 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 318 1 ‘‘(A) meets the requirements of subpara- 2 graphs (A), (B), (C), and (D) of subsection 3 (a)(1); 4 ‘‘(B) is employed by a State-licensed mort- 5 gage company in the application State; and 6 ‘‘(C) was licensed in a State that is not the 7 application State during the 30-day period pre- 8 ceding the date of submission of the informa- 9 tion required under section 1505(a) in connec- 10 tion with the application submitted to the appli- 11 cation State. 12 ‘‘(2) PERIOD.—The period described in para- 13 graph (1) shall begin on the date that the State-li- 14 censed loan originator submits the information re- 15 quired under section 1505(a) in connection with the 16 application submitted to the application State and 17 end on the earliest of— 18 ‘‘(A) the date that the State-licensed loan 19 originator withdraws the application to be a 20 State-licensed loan originator in the application 21 State; 22 ‘‘(B) the date that the application State 23 denies, or issues a notice of intent to deny, the 24 application; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00318 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 319 1 ‘‘(C) the date that the application State 2 grants a State license; or 3 ‘‘(D) the date that is 120 days after the 4 date on which the State-licensed loan originator 5 submits the application, if the application is 6 listed on the Nationwide Mortgage Licensing 7 System and Registry as incomplete. 8 ‘‘(c) APPLICABILITY.— 9 ‘‘(1) Any person employing an individual who is 10 deemed to have temporary authority to act as a loan 11 originator in an application State pursuant to this 12 section shall be subject to the requirements of this 13 title and to applicable State law to the same extent 14 as if such individual was a State-licensed loan origi- 15 nator licensed by the application State. 16 ‘‘(2) Any individual who is deemed to have tem- 17 porary authority to act as a loan originator in an ap- 18 plication State pursuant to this section and who en- 19 gages in residential mortgage loan origination activi- 20 ties shall be subject to the requirements of this title 21 and to applicable State law to the same extent as if 22 such individual was a State-licensed loan originator 23 licensed by the application State. 24 ‘‘(d) DEFINITIONS.—In this section, the following 25 definitions shall apply: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00319 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 320 1 ‘‘(1) STATE-LICENSED MORTGAGE COMPANY.— 2 The term ‘State-licensed mortgage company’ means 3 an entity licensed or registered under the law of any 4 State to engage in residential mortgage loan origina- 5 tion and processing activities. 6 ‘‘(2) APPLICATION STATE.—The term ‘applica- 7 tion State’ means a State in which a registered loan 8 originator or a State-licensed loan originator seeks 9 to be licensed.’’. 10 (b) TABLE OF CONTENTS AMENDMENT.—The table 11 of contents in section 1(b) of the Housing and Economic 12 Recovery Act of 2008 (42 U.S.C. 4501 note) is amended 13 by inserting after the item relating to section 1517 the 14 following: ‘‘Sec. 1518. Employment transition of loan originators.’’. 15 (c) AMENDMENT 16 SUMER 17 CIALS.—Section TO CIVIL LIABILITY LAW ENFORCEMENT AGENCY AND OF THE CON- OTHER OFFI- 1513 of the S.A.F.E. Mortgage Licensing 18 Act of 2008 (12 U.S.C. 5112) is amended by striking ‘‘are 19 loan originators or are applying for licensing or registra20 tion as loan originators’’ and inserting ‘‘are applying for 21 licensing or registration using the Nationwide Mortgage 22 Licensing System and Registry’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00320 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 321 1 Subtitle M—Right to Lend 2 SEC. 561. SMALL BUSINESS LOAN DATA COLLECTION RE- 3 4 QUIREMENT. (a) REPEAL.—Section 704B of the Equal Credit Op- 5 portunity Act (15 U.S.C. 1691c–2) is repealed. 6 (b) CONFORMING AMENDMENTS.—Section 701(b) of 7 the Equal Credit Opportunity Act (15 U.S.C. 1691(b)) is 8 amended— 9 10 (1) in paragraph (3), by inserting ‘‘or’’ at the end; 11 12 (2) in paragraph (4), by striking ‘‘; or’’ and inserting a period; and 13 14 (3) by striking paragraph (5). (c) CLERICAL AMENDMENT.—The table of sections 15 for title VII of the Consumer Credit Protection Act is 16 amended by striking the item relating to section 704B. 17 18 19 20 Subtitle N—Community Bank Reporting Relief SEC. 566. SHORT FORM CALL REPORT. (a) IN GENERAL.—Section 7(a) of the Federal De- 21 posit Insurance Act (12 U.S.C. 1817(a)) is amended by 22 adding at the end the following: 23 ‘‘(12) SHORT 24 ‘‘(A) IN 25 15:00 Apr 19, 2017 GENERAL.—The appropriate Fed- eral banking agencies shall issue regulations al- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FORM REPORTING.— Jkt 000000 (657255 10) PO 00000 Frm 00321 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 322 1 lowing for a reduced reporting requirement for 2 covered depository institutions when making the 3 first and third report of condition for a year, as 4 required pursuant to paragraph (3). 5 ‘‘(B) COVERED DEPOSITORY INSTITUTION 6 DEFINED.—For 7 term ‘covered depository institution’ means an 8 insured depository institution that— 9 purposes of this paragraph, the ‘‘(i) is well capitalized (as defined 10 under section 38(b)); and 11 ‘‘(ii) satisfies such other criteria as 12 the appropriate Federal banking agencies 13 determine appropriate.’’. 14 (b) REPORT TO CONGRESS.—Not later than 180 days 15 after the date of the enactment of this Act, and every 365 16 days thereafter until the appropriate Federal banking 17 agencies (as defined under section 3 of the Federal De18 posit Insurance Act) have issued the regulations required 19 under section 7(a)(12)(A) of the Federal Deposit Insur20 ance Act, such agencies shall submit to the Committee on 21 Financial Services of the House of Representatives and 22 the Committee on Banking, Housing, and Urban Affairs 23 of the Senate a report describing the progress made in 24 issuing such regulations. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00322 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 323 2 Subtitle O—Homeowner Information Privacy Protection 3 SEC. 571. STUDY REGARDING PRIVACY OF INFORMATION 4 COLLECTED UNDER THE HOME MORTGAGE 5 DISCLOSURE ACT OF 1975. 1 6 (a) STUDY.—The Comptroller General of the United 7 States shall conduct a study to determine whether the 8 data required to be published, made available, or disclosed 9 under the final rule, in connection with other publicly 10 available data sources, including data made publicly avail11 able under Regulation C (12 C.F.R. 1003) before the ef12 fective date of the final rule, could allow for or increase 13 the probability of— 14 15 (1) exposure of the identity of mortgage applicants or mortgagors through reverse engineering; 16 (2) exposure of mortgage applicants or mortga- 17 gors to identity theft or the loss of sensitive personal 18 financial information; 19 (3) the marketing or sale of unfair or deceptive 20 financial products to mortgage applicants or mortga- 21 gors based on such data; 22 (4) personal financial loss or emotional distress 23 resulting from the exposure of mortgage applicants 24 or mortgagors to identify theft or the loss of sen- 25 sitive personal financial information; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00323 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 324 1 (5) the potential legal liability facing the Con- 2 sumer Law Enforcement Agency and market partici- 3 pants in the event the data required to be published, 4 made available, or disclosed under the final rule 5 leads or contributes to identity theft or the capture 6 of sensitive personal financial information. 7 (b) REPORT.—The Comptroller General of the 8 United States shall submit to the Committee on Financial 9 Services of the House of Representatives and the Com10 mittee on Banking, Housing, and Urban Affairs of the 11 Senate a report that includes— 12 (1) the findings and conclusions of the Comp- 13 troller General with respect to the study required 14 under subsection (a); and 15 16 (2) any recommendations for legislative or regulatory actions that— 17 (A) would enhance the privacy of a con- 18 sumer when accessing mortgage credit; and 19 (B) are consistent with consumer protec- 20 tions and safe and sound banking operations. 21 (c) SUSPENSION 22 MENTS.—Notwithstanding OF DATA SHARING REQUIREany other provision of law, in- 23 cluding the final rule— 24 (1) depository institutions shall not be required 25 to publish, disclose, or otherwise make available to G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00324 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 325 1 the public, pursuant to the Home Mortgage Disclo- 2 sure Act of 1975 (or regulations issued under such 3 Act) any data that was not required to be published, 4 disclosed, or otherwise made available pursuant to 5 such Act (or regulations issued under such Act) on 6 the day before the date of the enactment of the 7 Dodd-Frank Wall Street Reform and Consumer Pro- 8 tection Act; and 9 (2) the Consumer Law Enforcement Agency 10 and the Financial Institutions Examination Council 11 shall not publish, disclose, or otherwise make avail- 12 able to the public any such information received 13 from a depository institution pursuant to the final 14 rule. 15 (d) DEFINITIONS.—For purposes of this section: 16 (1) DEPOSITORY term ‘‘de- 17 pository institution’’ has the meaning given that 18 term under section 303 of the Home Mortgage Dis- 19 closure Act of 1975 (12 U.S.C. 2802). 20 (2) FINAL RULE.—The term ‘‘final rule’’ means 21 the final rule issued by the Bureau of Consumer Fi- 22 nancial Protection titled ‘‘Home Mortgage Disclo- 23 sure (Regulation C)’’ (October 28, 2015; 80 Fed. 24 Reg. 66128). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 INSTITUTION.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00325 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 326 2 Subtitle P—Home Mortgage Disclosure Adjustment 3 SEC. 576. DEPOSITORY INSTITUTIONS SUBJECT TO MAINTE- 4 NANCE OF RECORDS AND DISCLOSURE RE- 5 QUIREMENTS. 1 6 (a) IN GENERAL.—Section 304 of the Home Mort- 7 gage Disclosure Act of 1975 (12 U.S.C. 2803) is amend8 ed— 9 10 (1) by redesignating subsection (i) as paragraph (2) and adjusting the margin appropriately; and 11 (2) by inserting before such paragraph (2) the 12 following: 13 ‘‘(i) EXEMPTIONS.— 14 ‘‘(1) IN respect to a deposi- 15 tory institution, the requirements of subsections (a) 16 and (b) shall not apply— 17 ‘‘(A) with respect to closed-end mortgage 18 loans, if such depository institution originated 19 less than 100 closed-end mortgage loans in each 20 of the two preceding calendar years; and 21 ‘‘(B) with respect to open-end lines of 22 credit, if such depository institution originated 23 less than 200 open-end lines of credit in each 24 of the two preceding calendar years.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—With 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00326 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 327 1 (b) TECHNICAL CORRECTION.—Section 304(i)(2) of 2 such Act, as redesignated by subsection (a), is amended 3 by striking ‘‘section 303(2)(A)’’ and inserting ‘‘section 4 303(3)(A)’’. 6 Subtitle Q—Protecting Consumers’ Access to Credit 7 SEC. 581. RATE OF INTEREST AFTER TRANSFER OF LOAN. 5 8 (a) AMENDMENT TO THE REVISED STATUTES.—Sec- 9 tion 5197 of the Revised Statutes of the United States 10 (12 U.S.C. 85) is amended by adding at the end the fol11 lowing new sentence: ‘‘A loan that is valid when made as 12 to its maximum rate of interest in accordance with this 13 section shall remain valid with respect to such rate regard14 less of whether the loan is subsequently sold, assigned, or 15 otherwise transferred to a third party, and may be en16 forced by such third party notwithstanding any State law 17 to the contrary.’’. 18 (b) AMENDMENT TO THE HOME OWNERS’ LOAN 19 ACT.—Section 4(g)(1) of the Home Owners’ Loan Act (12 20 U.S.C. 1463(g)(1)) is amended by adding at the end the 21 following new sentence: ‘‘A loan that is valid when made 22 as to its maximum rate of interest in accordance with this 23 subsection shall remain valid with respect to such rate re24 gardless of whether the loan is subsequently sold, as25 signed, or otherwise transferred to a third party, and may G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00327 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 328 1 be enforced by such third party notwithstanding any State 2 law to the contrary.’’. 3 (c) AMENDMENT FEDERAL CREDIT UNION TO THE 4 ACT.—Section 205(g)(1) of the Federal Credit Union Act 5 (12 U.S.C. 1785(g)(1)) is amended by adding at the end 6 the following new sentence: ‘‘A loan that is valid when 7 made as to its maximum rate of interest in accordance 8 with this subsection shall remain valid with respect to such 9 rate regardless of whether the loan is subsequently sold, 10 assigned, or otherwise transferred to a third party, and 11 may be enforced by such third party notwithstanding any 12 State law to the contrary.’’. 13 14 (d) AMENDMENT ANCE TO THE FEDERAL DEPOSIT INSUR- ACT.—Section 27(a) of the Federal Deposit Insur- 15 ance Act (12 U.S.C. 1831d(a)) is amended by adding at 16 the end the following new sentence: ‘‘A loan that is valid 17 when made as to its maximum rate of interest in accord18 ance with this section shall remain valid with respect to 19 such rate regardless of whether the loan is subsequently 20 sold, assigned, or otherwise transferred to a third party, 21 and may be enforced by such third party notwithstanding 22 any State law to the contrary.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00328 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 329 Subtitle R—NCUA Overhead Transparency 1 2 3 4 SEC. 586. FUND TRANSPARENCY. Section 203 of the Federal Credit Union Act (12 5 U.S.C. 1783) is amended by adding at the end the fol6 lowing: 7 ‘‘(g) FUND TRANSPARENCY.— 8 9 10 ‘‘(1) IN Board shall accom- pany each annual budget submitted pursuant to section 209(b) with a report containing— 11 ‘‘(A) a detailed analysis of how the ex- 12 penses of the Administration are assigned be- 13 tween prudential activities and insurance-re- 14 lated activities and the extent to which those 15 expenses are paid from the fees collected pursu- 16 ant to section 105 or from the Fund; and 17 ‘‘(B) the Board’s supporting rationale for 18 any proposed use of amounts in the Fund con- 19 tained in such budget, including detailed break- 20 downs and supporting rationales for any such 21 proposed use related to titles of this Act other 22 than this title. 23 ‘‘(2) PUBLIC DISCLOSURE.—The Board shall 24 make each report described under paragraph (1) 25 available to the public.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00329 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 330 4 TITLE VI—REGULATORY RELIEF FOR STRONGLY CAPITALIZED, WELL MANAGED BANKING ORGANIZATIONS 5 SEC. 601. CAPITAL ELECTION. 1 2 3 6 (a) IN GENERAL.—A banking organization may make 7 an election under this section to be treated as a qualifying 8 banking organization for purposes of the regulatory relief 9 described under section 602. 10 (b) REQUIREMENTS.—A banking organization may 11 qualify to be treated as a qualifying banking organization 12 if— 13 14 (1) the banking organization has an average leverage ratio of at least 10 percent; 15 (2) with respect to a depository institution hold- 16 ing company, each insured depository institution 17 subsidiary of the holding company simultaneously 18 makes the election described under subsection (a); 19 and 20 (3) with respect to an insured depository insti- 21 tution, any parent depository institution holding 22 company of the institution simultaneously makes the 23 election described under subsection (a). 24 (c) ELECTION PROCESS.—To make an election under 25 this section, a banking organization shall submit an elecG:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00330 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 331 1 tion to the appropriate Federal banking agency (and any 2 applicable State bank supervisor that regulates the bank3 ing organization) containing— 4 (1) a notice of such election; 5 (2) the banking organization’s average leverage 6 ratio, as well as the organization’s quarterly leverage 7 ratio for each of the most recently completed four 8 calendar quarters; 9 (3) if the banking organization is a depository 10 institution holding company, the information de- 11 scribed under paragraph (2) for each of the organi- 12 zation’s insured depository institution subsidiaries; 13 and 14 (4) if the banking organization is an insured 15 depository institution, the information described 16 under paragraph (2) for any parent depository insti- 17 tution holding company of the institution. 18 (d) EFFECTIVE DATE OF ELECTION.— 19 (1) IN election made under this 20 section shall take effect at the end of the 30-day pe- 21 riod beginning on the date that the appropriate Fed- 22 eral banking agency receives the application de- 23 scribed under subsection (c), unless the appropriate 24 Federal banking agency determines that the banking G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—An 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00331 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 332 1 organization has not met the requirements described 2 under subsection (b). 3 (2) NOTICE OF FAILURE TO MEET REQUIRE- 4 MENTS.—If 5 determines that a banking organization submitting 6 an election notice under subsection (c) does not meet 7 the requirements described under subsection (b), the 8 agency shall— the appropriate Federal banking agency 9 (A) notify the banking organization (and 10 any applicable State bank supervisor that regu- 11 lates the banking organization), in writing, of 12 such determination as soon as possible after 13 such determination is made, but in no case 14 later than the end of the 30-day period begin- 15 ning on the date that the appropriate Federal 16 banking agency receives the election; and 17 (B) include in such notification the specific 18 reasons for such determination and steps that 19 the banking organization can take to meet such 20 requirements. 21 22 (e) TREATMENT NIZATIONS.—In OF CERTAIN NEW BANKING ORGA- the case of a banking organization that 23 is a newly-chartered insured depository institution or a 24 banking organization that becomes a banking organization 25 because it controls a newly-chartered insured depository G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00332 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 333 1 institution, such banking organization may be treated as 2 a qualifying banking organization immediately upon be3 coming a banking organization, if— 4 (1) an election to be treated as a qualifying 5 banking organization was included in the application 6 filed with the appropriate Federal banking agency in 7 connection with becoming a banking organization; 8 and 9 (2) as of the date the banking organization be- 10 comes a banking organization, the banking organiza- 11 tion’s tangible equity divided by the banking organi- 12 zation’s leverage exposure, expressed as a percent- 13 age, is at least 10 percent. 14 (f) FAILURE TO MAINTAIN QUARTERLY LEVERAGE 15 RATIO AND LOSS OF ELECTION.— 16 17 (1) EFFECT TERLY LEVERAGE RATIO.— 18 (A) IN GENERAL.—If, with respect to the 19 most recently completed calendar quarter, the 20 appropriate Federal banking agency determines 21 that a qualifying banking organization’s quar- 22 terly leverage ratio is below 10 percent— 23 (i) the appropriate Federal banking 24 agency shall notify the qualifying banking 25 organization and any applicable State bank G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF FAILURE TO MAINTAIN QUAR- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00333 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 334 1 supervisor that regulates the banking orga- 2 nization of such determination; 3 (ii) the appropriate Federal banking 4 agency may prohibit the banking organiza- 5 tion from making a capital distribution; 6 and 7 (iii) the banking organization shall, 8 within 3 months of the first such deter- 9 mination, submit a capital restoration plan 10 to the appropriate Federal banking agency. 11 (B) LOSS 12 REMEDIATION PERIOD.—If 13 tion described under subparagraph (A) does 14 not, within the 1-year period beginning on the 15 date of such determination, raise the organiza- 16 tion’s quarterly leverage ratio for a calendar 17 quarter ending in such 1-year period to at least 18 10 percent, the banking organization’s election 19 under this section shall be terminated, and the 20 appropriate Federal banking agency shall notify 21 any applicable State bank supervisor that regu- 22 lates the banking organization of such termi- 23 nation. 24 (C) EFFECT 25 ORGANIZATION.—With G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF ELECTION AFTER ONE-YEAR 15:00 Apr 19, 2017 Jkt 000000 a banking organiza- OF SUBSIDIARY ON PARENT respect to a qualifying (657255 10) PO 00000 Frm 00334 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 335 1 banking organization described under subpara- 2 graph (A) that is an insured depository institu- 3 tion, any parent depository institution holding 4 company of the qualifying banking organization 5 shall— 6 (i) if the appropriate Federal banking 7 agency determines it appropriate, be pro- 8 hibited from making a capital distribution 9 (other than a capital contribution to such 10 qualifying banking organization described 11 under subparagraph (A)); and 12 (ii) if the qualifying banking organiza- 13 tion has an election terminated under sub- 14 paragraph (B), any such parent depository 15 institution holding company shall also have 16 its election under this section terminated. 17 (2) IMMEDIATE 18 QUARTERLY LEVERAGE RATIO FALLS BELOW 6 PER- 19 CENT.— 20 (A) IN GENERAL.—If, with respect to the 21 most recently completed calendar quarter, the 22 appropriate Federal banking agency determines 23 that a qualifying banking organization’s quar- 24 terly leverage ratio is below 6 percent, the 25 banking organization’s election under this sec- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 LOSS OF ELECTION IF THE 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00335 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 336 1 tion shall be terminated, and the appropriate 2 Federal banking agency shall notify any appli- 3 cable State bank supervisor that regulates the 4 banking organization of such termination. 5 (B) EFFECT 6 ORGANIZATION.—With 7 banking organization described under subpara- 8 graph (A) that is an insured depository institu- 9 tion, any parent depository institution holding 10 company of the qualifying banking organization 11 shall also have its election under this section 12 terminated. 13 (3) ABILITY OF SUBSIDIARY ON PARENT respect to a qualifying TO MAKE FUTURE ELECTIONS.—If 14 a banking organization has an election under this 15 section terminated, the banking organization may 16 not apply for another election under this section 17 until the banking organization has maintained a 18 quarterly leverage ratio of at least 10 percent for 8 19 consecutive calendar quarters. 20 21 SEC. 602. REGULATORY RELIEF. (a) IN GENERAL.—A qualifying banking organization 22 shall be exempt from the following: 23 (1) Any Federal law, rule, or regulation ad- 24 dressing capital or liquidity requirements or stand- 25 ards. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00336 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 337 1 (2) Any Federal law, rule, or regulation that 2 permits an appropriate Federal banking agency to 3 object to a capital distribution. 4 5 (3) Any consideration by an appropriate Federal banking agency of the following: 6 (A) Any risk the qualifying banking orga- 7 nization may pose to ‘‘the stability of the finan- 8 cial system of the United States’’, under section 9 5(c)(2) of the Bank Holding Company Act of 10 1956. 11 (B) The ‘‘extent to which a proposed ac- 12 quisition, merger, or consolidation would result 13 in greater or more concentrated risks to the 14 stability of the United States banking or finan- 15 cial system’’, under section 3(c)(7) of the Bank 16 Holding Company Act of 1956, so long as the 17 banking organization, after such proposed ac- 18 quisition, merger, or consolidation, would main- 19 tain a quarterly leverage ratio of at least 10 20 percent. 21 (C) Whether the performance of an activity 22 by the banking organization could possibly pose 23 a ‘‘risk to the stability of the United States 24 banking or financial system’’, under section G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00337 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 338 1 4(j)(2)(A) of the Bank Holding Company Act 2 of 1956. 3 (D) Whether the acquisition of control of 4 shares of a company engaged in an activity de- 5 scribed in section 4(j)(1)(A) of the Bank Hold- 6 ing Company Act of 1956 could possibly pose a 7 ‘‘risk to the stability of the United States bank- 8 ing 9 4(j)(2)(A) of the Bank Holding Company Act 10 of 1956, so long as the banking organization, 11 after acquiring control of such company, would 12 maintain a quarterly leverage ratio of at least 13 10 percent. financial system’’, under section 14 (E) Whether a merger would pose a ‘‘risk 15 to the stability of the United States banking or 16 financial system’’, under section 18(c)(5) of the 17 Federal Deposit Insurance Act, so long as the 18 banking organization, after such proposed 19 merger, would maintain a quarterly leverage 20 ratio of at least 10 percent. 21 (F) Any risk the qualifying banking orga- 22 nization may pose to ‘‘the stability of the finan- 23 cial system of the United States’’, under section 24 10(b)(4) of the Home Owners’ Loan Act. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 or 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00338 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 339 1 (4) Subsections (i)(8) and (k)(6)(B)(ii) of sec- 2 tion 4 and section 14 of the Bank Holding Company 3 Act of 1956. 4 5 (5) Section 18(c)(13) of the Federal Deposit Insurance Act. 6 7 (6) Section 163 of the Financial Stability Act of 2010. 8 9 (7) Section 10(e)(2)(E) of the Home Owners’ Loan Act. 10 (8) Any Federal law, rule, or regulation imple- 11 menting standards of the type provided for in sub- 12 sections (b), (c), (d), (e), (g), (h), (i), and (j) of sec- 13 tion 165 of the Financial Stability Act of 2010. 14 (9) Any Federal law, rule, or regulation pro- 15 viding limitations on mergers, consolidations, or ac- 16 quisitions of assets or control, to the extent such 17 limitations relate to capital or liquidity standards or 18 concentrations of deposits or assets, so long as the 19 banking organization, after such proposed merger, 20 consolidation, or acquisition, would maintain a quar- 21 terly leverage ratio of at least 10 percent. 22 (b) QUALIFYING BANKING ORGANIZATIONS TREAT- 23 ED AS WELL CAPITALIZED.—A qualifying banking organi- 24 zation shall be deemed to be ‘‘well capitalized’’ for pur25 poses of— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00339 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 340 1 2 (1) section 216 of the Federal Credit Union Act; and 3 (2) sections 29, 38, 44, and 46 of the Federal 4 Deposit Insurance Act. 5 (c) TREATMENT OF CERTAIN RISK-WEIGHTED ASSET 6 REQUIREMENTS 7 (1) ACQUISITION SIZE CRITERIA TREATMENT.— A qualifying banking organization shall be deemed 10 to 11 4(j)(4)(D) of the Bank Holding Company Act of 12 1956, so long as after the proposed transaction the 13 acquiring qualifying banking organization would 14 maintain a quarterly leverage ratio of at least 10 15 percent. 16 meet the (2) USE criteria described under section OF LEVERAGE EXPOSURE.—With re- 17 spect to a qualifying banking organization, in deter- 18 mining whether a proposal qualifies with the criteria 19 described under subparagraphs (A)(iii) and (B)(i) of 20 section 4(j)(4) of the Bank Holding Company Act of 21 1956, the Board of Governors of the Federal Re- 22 serve System shall consider the leverage exposure of 23 an insured depository institution instead of the total 24 risk-weighted assets of such institution. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 QUALIFYING BANKING ORGANIZA- TIONS.— 8 9 FOR 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00340 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 341 1 2 SEC. 603. CONTINGENT CAPITAL STUDY. (a) STUDY.—The Board of Governors of the Federal 3 Reserve System, the Federal Deposit Insurance Corpora4 tion, and the Office of the Comptroller of the Currency 5 shall each carry out a study, which shall include holding 6 public hearings, on how to design a requirement that 7 banking organizations issue contingent capital with a mar8 ket-based conversion trigger. 9 (b) REPORT.—Not later than the end of the 1-year 10 period beginning on the date of the enactment of this Act, 11 each agency described under subsection (a) shall submit 12 a report to the Congress containing— 13 (1) all findings and determinations made by the 14 agency in carrying out the study required under sub- 15 section (a); and 16 (2) the agency’s recommendations on how the 17 Congress should design a requirement that banking 18 organizations issue contingent capital with a market- 19 based conversion trigger. 20 SEC. 604. STUDY ON ALTERING THE CURRENT PROMPT 21 22 CORRECTIVE ACTION RULES. (a) STUDY.—The Comptroller General of the United 23 States shall conduct a study to assess the benefits and 24 feasibility of altering the current prompt corrective action 25 rules and replacing the Basel-based capital ratios with the 26 nonperforming asset coverage ratio or NACR as the trigG:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00341 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 342 1 ger for specific required supervisory interventions. The 2 Comptroller General shall ensure that such study includes 3 the following: 4 (1) An assessment of the performance of an 5 NACR forward-looking measure of a banking orga- 6 nization’s solvency condition relative to the regu- 7 latory capital ratios currently used by prompt cor- 8 rective action rules. 9 10 (2) An analysis of the performance of alternative definitions of nonperforming assets. 11 12 (3) An assessment of the impact of two alternative intervention thresholds: 13 (A) An initial (high) intervention thresh- 14 old, below which appropriate Federal banking 15 agency examiners are required to intervene and 16 assess a banking organization’s condition and 17 prescribe remedial measures. 18 (B) A lower threshold, below which bank- 19 ing organizations must increase their capital, 20 seek an acquirer, or face mandatory resolution 21 within 90 days. 22 (b) REPORT.—Not later than the end of the 1-year 23 period beginning on the date of the enactment of this Act, 24 the Comptroller General shall submit a report to the Con25 gress containing— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00342 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 343 1 (1) all findings and determinations made in car- 2 rying out the study required under subsection (a); 3 and 4 (2) recommendations on the most suitable defi- 5 nition of nonperforming assets, as well as the two 6 numerical thresholds that trigger specific required 7 supervisory interventions. 8 9 SEC. 605. DEFINITIONS. For purposes of this title: 10 (1) APPROPRIATE 11 CY.—The 12 cy’’— term ‘‘appropriate Federal banking agen- 13 (A) has the meaning given such term 14 under section 3 of the Federal Deposit Insur- 15 ance Act; and 16 (B) means the National Credit Union Ad- 17 ministration, in the case of an insured credit 18 union. 19 (2) 20 BANKING ORGANIZATION.—The term ‘‘banking organization’’ means— 21 (A) an insured depository institution; 22 (B) an insured credit union; 23 (C) a depository institution holding com- 24 pany; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FEDERAL BANKING AGEN- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00343 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 344 1 (D) a company that is treated as a bank 2 holding company for purposes of section 8 of 3 the International Banking Act; and 4 (E) a U.S. intermediate holding company 5 established by a foreign banking organization 6 pursuant to section 252.153 of title 12, Code of 7 Federal Regulations. 8 (3) FOREIGN .—The term 9 ‘‘foreign exchange swap’’ has the meaning given that 10 term under section 1a of the Commodity Exchange 11 Act. 12 (4) INSURED CREDIT UNION.—The term ‘‘in- 13 sured credit union’’ has the meaning given that term 14 under section 101 of the Federal Credit Union Act. 15 16 (5) LEVERAGE EXPOSURE.—The term ‘‘lever- age exposure’’— 17 (A) with respect to a banking organization 18 other than an insured credit union or a tradi- 19 tional banking organization, has the meaning 20 given the term ‘‘total leverage exposure’’ under 21 section 22 324.10(c)(4) of title 12, Code of Federal Regu- 23 lations, as applicable, as in effect on the date 24 of the enactment of this Act; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EXCHANGE SWAP 15:00 Apr 19, 2017 Jkt 000000 3.10(c)(4)(ii), 217.10(c)(4), or (657255 10) PO 00000 Frm 00344 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 345 1 (B) with respect to a traditional banking 2 organization other than an insured credit union, 3 means total assets (minus any items deducted 4 from common equity tier 1 capital) as cal- 5 culated in accordance with generally accepted 6 accounting principles and as reported on the 7 traditional banking organization’s applicable 8 regulatory filing with the banking organiza- 9 tion’s appropriate Federal banking agency; and 10 (C) with respect to a banking organization 11 that is an insured credit union, has the mean- 12 ing given the term ‘‘total assets’’ under section 13 702.2 of title 12, Code of Federal Regulations, 14 as in effect on the date of the enactment of this 15 Act. 16 (6) LEVERAGE 17 (A) AVERAGE LEVERAGE RATIO.—With re- 18 spect to a banking organization, the term ‘‘av- 19 erage leverage ratio’’ means the average of the 20 banking organization’s quarterly leverage ratios 21 for each of the most recently completed four 22 calendar quarters. 23 (B) QUARTERLY LEVERAGE RATIO.—With 24 respect to a banking organization and a cal- 25 endar quarter, the term ‘‘quarterly leverage G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RATIO DEFINITIONS.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00345 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 346 1 ratio’’ means the organization’s tangible equity 2 divided by the organization’s leverage exposure, 3 expressed as a percentage, on the last day of 4 such quarter. 5 (7) NACR.—The term ‘‘NACR’’ means— 6 (A) book equity less nonperforming assets 7 plus loan loss reserves, divided by 8 (B) total banking organization assets. 9 10 (8) NONPERFORMING term ‘‘non- performing assets’’ means— 11 (A) 20 percent of assets that are past due 12 30 to 89 days, plus 13 (B) 50 percent of assets that are past due 14 90 days or more, plus 15 (C) 100 percent of nonaccrual assets and 16 other real estate owned. 17 (9) QUALIFYING BANKING ORGANIZATION.— 18 The term ‘‘qualifying banking organization’’ means 19 a banking organization that has made an election 20 under section 601 and with respect to which such 21 election is in effect. 22 (10) SECURITY-BASED SWAP .—The term ‘‘se- 23 curity-based swap’’ has the meaning given that term 24 under section 3 of the Securities Exchange Act of 25 1934. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ASSETS.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00346 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 347 1 (11) SWAP.—The term ‘‘swap’’ has the mean- 2 ing given that term under section 1a of the Com- 3 modity Exchange Act. 4 5 (12) TANGIBLE term ‘‘tangible equity’’— 6 (A) with respect to a banking organization 7 other than a credit union, means the sum of— 8 (i) common equity tier 1 capital; 9 (ii) additional tier 1 capital consisting 10 of instruments issued on or before the date 11 of enactment of this Act; and 12 (iii) with respect to a depository insti- 13 tution holding company that had less than 14 $15,000,000,000 in total consolidated as- 15 sets as of December 31, 2009, or March 16 31, 2010, or a banking organization that 17 was a mutual holding company as of May 18 19, 2010, trust preferred securities issued 19 prior to May 19, 2010, to the extent such 20 organization was permitted, as of the date 21 of the enactment of this Act, to consider 22 such securities as tier 1 capital under ex- 23 isting regulations of the appropriate Fed- 24 eral banking agency; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EQUITY.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00347 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 348 1 (B) with respect to a banking organization 2 that is a credit union, has the meaning given 3 the term ‘‘net worth’’ under section 702.2 of 4 title 12, Code of Federal Regulations, as in ef- 5 fect on the date of the enactment of this Act. 6 (13) TRADITIONAL 7 The term ‘‘traditional banking organization’’ means 8 a banking organization that— 9 (A) has zero trading assets and zero trad- 10 ing liabilities; 11 (B) does not engage in swaps or security- 12 based swaps, other than swaps or security- 13 based swaps referencing interest rates or for- 14 eign exchange swaps; and 15 (C) has a total notional exposure of swaps 16 and security-based swaps of not more than 17 $8,000,000,000. 18 (14) OTHER BANKING TERMS.—The terms ‘‘in- 19 sured depository institution’’ and ‘‘depository insti- 20 tution holding company’’ have the meaning given 21 those terms, respectively, under section 3 of the 22 Federal Deposit Insurance Act. 23 (15) OTHER CAPITAL TERMS.—With respect to 24 a banking organization, the terms ‘‘additional tier 1 25 capital’’ and ‘‘common equity tier 1 capital’’ have G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 BANKING ORGANIZATION.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00348 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 349 1 the meaning given such terms, respectively, under 2 section 3.20, 217.20, or 324.20 of title 12, Code of 3 Federal Regulations, as applicable, as in effect on 4 the date of the enactment of this Act. 5 6 7 8 9 10 11 12 TITLE VII—EMPOWERING AMERICANS TO ACHIEVE FINANCIAL INDEPENDENCE Subtitle A—Separation of Powers and Liberty Enhancements SEC. 711. CONSUMER LAW ENFORCEMENT AGENCY. (a) MAKING SUMER THE BUREAU AN INDEPENDENT CON- LAW ENFORCEMENT AGENCY.—The Consumer 13 Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.) 14 is amended— 15 (1) in section 1011— 16 (A) in the heading of such section, by striking ‘‘BUREAU 18 CIAL 19 SUMER LAW ENFORCEMENT AGENCY’’; 20 PROTECTION’’ (i) in the heading of such subsection, 22 by 23 ‘‘AGENCY’’; 24 striking ‘‘BUREAU’’ and inserting (ii) by striking ‘‘in the Federal Re- 25 serve System,’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 and inserting ‘‘CON- (B) in subsection (a)— 21 VerDate 0ct 09 2002 OF CONSUMER FINAN- 17 Jkt 000000 (657255 10) PO 00000 Frm 00349 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 350 1 (iii) by striking ‘‘independent bureau’’ 2 and inserting ‘‘independent agency’’; and 3 (iv) by striking ‘‘Bureau of Consumer 4 Financial Protection’’ and inserting ‘‘Con- 5 sumer Law Enforcement Agency (herein- 6 after in this section referred to as the 7 ‘Agency’)’’; 8 (C) in subsection (b)(5), by amending sub- 9 paragraph (A) to read as follows: 10 ‘‘(A) shall be appointed by the President; 11 and’’; 12 (D) in subsection (c), by striking para- 13 graph (3); 14 (E) in subsection (e), by striking ‘‘, includ- 15 ing in cities in which the Federal reserve banks, 16 or branches of such banks, are located,’’; and 17 (F) by striking ‘‘Bureau’’ each place such 18 term appears and inserting ‘‘Agency’’; and 19 (2) in section 1012— 20 (A) in subsection (a)(10), by striking ‘‘ex- 21 aminations,’’; and 22 23 (B) by striking subsection (c). (b) DEEMING OF NAME.—Any reference in a law, 24 regulation, document, paper, or other record of the United 25 States to the Bureau of Consumer Financial Protection G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00350 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 351 1 shall be deemed a reference to the Consumer Law En2 forcement Agency. 3 (c) CONFORMING AMENDMENTS.— 4 (1) DODD-FRANK 5 CONSUMER 6 Wall Street Reform and Consumer Protection Act 7 (12 U.S.C. 5301 et seq.) is amended— 8 PROTECTION ACT.—The Dodd-Frank (A) in the table of contents in section 9 1(b)— 10 (i) by striking ‘‘Bureau of Consumer 11 Financial Protection’’ each place such term 12 appears and inserting ‘‘Consumer Law En- 13 forcement Agency’’; and 14 (ii) in the table of contents relating to 15 title X, in the items relating to subtitle B, 16 subtitle C, and section 1027, by striking 17 ‘‘Bureau’’ each place such term appears 18 and inserting ‘‘Agency’’; 19 (B) in section 2, by amending paragraph 20 (4) to read as follows: 21 ‘‘(4) AGENCY.—The term ‘Agency’ means the 22 Consumer Law Enforcement Agency established 23 under title X.’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 WALL STREET REFORM AND 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00351 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 352 1 (C) in section 342 by striking ‘‘Bureau’’ 2 each place such term appears in headings and 3 text and inserting ‘‘Agency’’; 4 (D) in section 1400(b)— 5 (i) by striking ‘‘Bureau of Consumer 6 Financial Protection’’ and inserting ‘‘Con- 7 sumer Law Enforcement Agency’’; and 8 (ii) in the subsection heading, by 9 striking ‘‘BUREAU CONSUMER FINAN- 10 CIAL 11 SUMER 12 (E) in section 1411(a)(1), by striking ‘‘Bu- 13 PROTECTION’’ and inserting ‘‘CONLAW ENFORCEMENT AGENCY’’; reau’’ and inserting ‘‘Agency’’; and 14 (F) in section 1447, by striking ‘‘Director 15 of the Bureau’’ each place such term appears 16 and inserting ‘‘Director of the Consumer Law 17 Enforcement Agency’’. 18 (2) ALTERNATIVE 19 PARITY ACT OF 1982.—The 20 Transaction Parity Act of 1982 (12 U.S.C. 3801 et 21 seq.) is amended— MORTGAGE TRANSACTION Alternative Mortgage 22 (A) by striking ‘‘Bureau of Consumer Fi- 23 nancial Protection’’ each place such term ap- 24 pears and inserting ‘‘Consumer Law Enforce- 25 ment Agency’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00352 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 353 1 (B) in the subsection heading of subsection 2 (d) of section 804 (12 U.S.C. 3803(d)), by 3 striking ‘‘BUREAU’’ and inserting ‘‘AGENCY’’. 4 (3) ELECTRONIC FUND TRANSFER ACT.—The 5 Electronic Fund Transfer Act (15 U.S.C. 1693 et 6 seq.) is amended— 7 (A) by amending the second paragraph (4) 8 (defining the term ‘‘Bureau’’) to read as fol- 9 lows: 10 11 ‘‘(4) the term ‘Agency’ means the Consumer Law Enforcement Agency;’’; 12 (B) in section 916(d)(1), by striking ‘‘Bu- 13 reau of Consumer Financial Protection’’ and in- 14 serting ‘‘Consumer Law Enforcement Agency’’; 15 and 16 (C) by striking ‘‘Bureau’’ each place that 17 term appears in heading or text and inserting 18 ‘‘Agency’’. 19 (4) EQUAL CREDIT OPPORTUNITY ACT.—The 20 Equal Credit Opportunity Act (15 U.S.C. 1691 et 21 seq.) is amended— 22 (A) in section 702 (15 U.S.C. 1691a), by 23 amending subsection (c) to read as follows: 24 ‘‘(c) The term ‘Agency’ means the Consumer Law 25 Enforcement Agency.’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00353 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 354 1 (B) by striking ‘‘Bureau’’ each place that 2 term appears in heading or text and inserting 3 ‘‘Agency’’. 4 (5) EXPEDITED FUNDS AVAILABILITY ACT.— 5 The Expedited Funds Availability Act (12 U.S.C. 6 4001 et seq.) is amended— 7 (A) by striking ‘‘Bureau of Consumer Fi- 8 nancial Protection’’ each place such term ap- 9 pears and inserting ‘‘Consumer Law Enforce- 10 ment Agency’’; and 11 (B) in the heading of section 605(f)(1), by 12 striking ‘‘BOARD 13 ‘‘BOARD 14 (6) FAIR AND BUREAU’’ and inserting AND AGENCY’’. AND ACCURATE CREDIT TRANS- 15 ACTIONS ACT OF 2003.—The 16 Credit Transactions Act of 2003 (Public Law 108- 17 159) is amended by striking ‘‘Bureau’’ each place 18 such term appears and inserting ‘‘Agency’’. 19 (7) FAIR Fair and Accurate CREDIT REPORTING ACT.—The Fair 20 Credit Reporting Act (15 U.S.C. 1681 et seq.) is 21 amended— 22 (A) by amending section 603(w) to read as 23 24 follows: ‘‘(w) AGENCY.—The term ‘Agency’ means the Con- 25 sumer Law Enforcement Agency.’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00354 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 355 1 (B) by striking ‘‘Bureau’’ each place such 2 term appears, other than in sections 626 and 3 603(v), and inserting ‘‘Agency’’. 4 (8) FAIR 5 The Fair Debt Collection Practices Act (15 U.S.C. 6 1692 et seq.) is amended— 7 (A) by amending section 803(1) to read as 8 follows: 9 ‘‘(1) The term ‘Agency’ means the Consumer 10 Law Enforcement Agency.’’; and 11 (B) by striking ‘‘Bureau’’ each place such 12 term appears in heading or text and inserting 13 ‘‘Agency’’. 14 (9) FEDERAL DEPOSIT INSURANCE ACT.—The 15 Federal Deposit Insurance Act (12 U.S.C. 1811 et 16 seq.) is amended— 17 (A) in the second paragraph (6) (with the 18 heading ‘‘Referral to bureau of consumer finan- 19 cial protection’’) of section 8(t) (12 U.S.C. 20 1818(t))— 21 (i) in the paragraph heading, by strik- 22 ing ‘‘BUREAU OF CONSUMER FINANCIAL 23 PROTECTION’’; and inserting ‘‘CONSUMER 24 LAW ENFORCEMENT AGENCY’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 DEBT COLLECTION PRACTICES ACT.— 15:00 Apr 19, 2017 Jkt 000000 and (657255 10) PO 00000 Frm 00355 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 356 1 (ii) by striking ‘‘Bureau of Consumer 2 Financial Protection’’ and inserting ‘‘Con- 3 sumer Law Enforcement Agency’’; 4 (B) by amending clause (vi) of section 5 11(t)(2)(A) (12 U.S.C. 1821(t)(2)(A)(vi)) to 6 read as follows: 7 ‘‘(vi) The Consumer Law Enforce- 8 ment Agency.’’; 9 (C) in section 18(x) (12 U.S.C. 1828(x)), 10 by striking ‘‘Bureau of Consumer Financial 11 Protection’’ each place such term appears and 12 inserting ‘‘Consumer Law Enforcement Agen- 13 cy’’; 14 (D) by striking ‘‘Bureau’’ each place such 15 term appears and inserting ‘‘Agency’’; and 16 (E) in section 43(e) (12 U.S.C. 1831t(e)), 17 by amending paragraph (5) to read as follows: 18 ‘‘(5) AGENCY.—The term ‘Agency’ means the 19 Consumer Law Enforcement Agency.’’. 20 (10) FEDERAL 21 INATION COUNCIL ACT OF 1978.—The 22 nancial Institutions Examination Council Act of 23 1978 (12 U.S.C. 3301 et seq.) is amended— Federal Fi- 24 (A) in section 1004(a)(4), by striking 25 ‘‘Consumer Financial Protection Bureau’’ and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 FINANCIAL INSTITUTIONS EXAM- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00356 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 357 1 inserting ‘‘Consumer Law Enforcement Agen- 2 cy’’; and 3 (B) in section 1011, by striking ‘‘Bureau 4 of Consumer Financial Protection’’ and insert- 5 ing ‘‘Consumer Law Enforcement Agency’’. 6 (11) FINANCIAL 7 COVERY, AND ENFORCEMENT ACT OF 1989.—The 8 nancial Institutions Reform, Recovery, and Enforce- 9 ment Act of 1989 (Public Law 101–73; 103 Stat. 10 Fi- 183) is amended— 11 (A) in section 1112(b) (12 U.S.C. 3341), 12 by striking ‘‘Bureau of Consumer Financial 13 Protection’’ and inserting ‘‘Consumer Law En- 14 forcement Agency’’; 15 (B) in section 1124 (12 U.S.C. 3353), by 16 striking ‘‘Bureau of Consumer Financial Pro- 17 tection’’ each place such term appears and in- 18 serting ‘‘Consumer Law Enforcement Agency’’; 19 (C) in section 1125 (12 U.S.C. 3354), by 20 striking ‘‘Bureau of Consumer Financial Pro- 21 tection’’ each place such term appears and in- 22 serting ‘‘Consumer Law Enforcement Agency’’; 23 and 24 (D) 25 15:00 Apr 19, 2017 in section 1206(a) (12 U.S.C. 1833b(a)), by striking ‘‘Federal Housing Fi- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 INSTITUTIONS REFORM, RE- Jkt 000000 (657255 10) PO 00000 Frm 00357 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 358 1 nance Board’’ and all that follows through 2 ‘‘Farm Credit Administration’’ and inserting 3 ‘‘Federal Housing Finance Board, the Con- 4 sumer Law Enforcement Agency, and the Farm 5 Credit Administration’’. 6 (12) FINANCIAL 7 PROVEMENT ACT.—Section 8 eracy and Education Improvement Act (20 U.S.C. 9 9702) is amended by striking ‘‘Bureau of Consumer 10 Financial Protection’’ each place such term appears 11 and inserting ‘‘Consumer Law Enforcement Agen- 12 cy’’. 13 513 of the Financial Lit- (13) GRAMM-LEACH-BLILEY ACT.—Title V of 14 the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et 15 seq.) is amended— 16 (A) by striking ‘‘Bureau of Consumer Fi- 17 nancial Protection’’ each place such term ap- 18 pears and inserting ‘‘Consumer Law Enforce- 19 ment Agency’’; and 20 (B) in section 505(a)(8) (15 U.S.C. 21 6805(a)(8)), by striking ‘‘Bureau’’ and insert- 22 ing ‘‘Agency’’. 23 (14) HOME MORTGAGE DISCLOSURE ACT OF 24 1975.—The 25 (12 U.S.C. 2801 et seq.) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 LITERACY AND EDUCATION IM- 15:00 Apr 19, 2017 Jkt 000000 Home Mortgage Disclosure Act of 1975 (657255 10) PO 00000 Frm 00358 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 359 1 (A) by striking ‘‘Bureau of Consumer Fi- 2 nancial Protection’’ each place such term ap- 3 pears and inserting ‘‘Consumer Law Enforce- 4 ment Agency’’; 5 (B) by striking ‘‘Bureau’’ each place such 6 term appears and inserting ‘‘Agency’’; and 7 (C) in section 303, by amending paragraph 8 (1) to read as follows: 9 ‘‘(1) the term ‘Agency’ means the Consumer 10 Law Enforcement Agency;’’. 11 (15) 12 1998.—Section 13 tion Act of 1998 (12 U.S.C. 4909(a)(4)) is amended 14 by striking ‘‘Bureau of Consumer Financial Protec- 15 tion’’ and inserting ‘‘Consumer Law Enforcement 16 Agency’’. 17 PROTECTION ACT OF 10(a)(4) of the Homeowners Protec- (16) HOME OWNERSHIP AND EQUITY PROTEC- 18 TION ACT OF 1994.—Section 19 Ownership and Equity Protection Act of 1994 (15 20 U.S.C. 1601 note) is amended by striking ‘‘Bureau’’ 21 and inserting ‘‘Consumer Law Enforcement Agen- 22 cy’’. 23 (17) INTERSTATE 158(a) of the Home LAND SALES FULL DISCLO- 24 SURE ACT.—The 25 sure Act (12 U.S.C. 1701 et seq.) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 HOMEOWNERS 15:00 Apr 19, 2017 Jkt 000000 Interstate Land Sales Full Disclo- (657255 10) PO 00000 Frm 00359 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 360 1 (A) by striking ‘‘Bureau of Consumer Fi- 2 nancial Protection’’ each place such term ap- 3 pears and inserting ‘‘Agency’’; 4 (B) in section 1402, by amending para- 5 graph (12) to read as follows: 6 ‘‘(12) ‘Agency’ means the Consumer Law En- 7 forcement Agency.’’; and 8 (C) in section 1416, by striking ‘‘Bureau’’ 9 each place such term appears and inserting 10 ‘‘Agency’’. 11 (18) REAL 12 ACT OF 1974.—The 13 dures Act of 1974 (12 U.S.C. 2601 et seq.) is 14 amended— Real Estate Settlement Proce- 15 (A) by striking ‘‘Bureau of Consumer Fi- 16 nancial Protection’’ each place such term ap- 17 pears and inserting ‘‘Consumer Law Enforce- 18 ment Agency’’; 19 (B) by striking ‘‘Bureau’’ each place such 20 term appears and inserting ‘‘Agency’’; and 21 (C) in section 3, by amending paragraph 22 (9) to read as follows: 23 ‘‘(9) the term ‘Agency’ means the Consumer 24 Law Enforcement Agency.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ESTATE SETTLEMENT PROCEDURES 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00360 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 361 1 (19) REVISED OF THE UNITED 2 STATES.—Section 3 Statutes 4 25b(b)(3)(B)) is amended by striking ‘‘Bureau of 5 Consumer Financial Protection’’ and inserting ‘‘Con- 6 sumer Law Enforcement Agency’’. 7 of 5136C(b)(3)(B) of the Revised the (20) RIGHT United States (12 U.S.C. TO FINANCIAL PRIVACY ACT OF 8 1978.—The 9 (12 U.S.C. 3401 et seq.) is amended— Right to Financial Privacy Act of 1978 10 (A) by amending subparagraph (B) of sec- 11 tion 1101(7) (12 U.S.C. 3401(7)(B)) to read as 12 follows: 13 ‘‘(B) the Consumer Law Enforcement 14 Agency;’’; and 15 (B) by striking ‘‘Bureau of Consumer Fi- 16 nancial Protection’’ each place such term ap- 17 pears in heading or text and inserting ‘‘Con- 18 sumer Law Enforcement Agency’’. 19 (21) S.A.F.E. MORTGAGE LICENSING ACT OF 20 2008.—The 21 2008 (12 U.S.C. 5101 et seq.) is amended— S.A.F.E. Mortgage Licensing Act of 22 (A) in section 1507, by striking ‘‘Bureau, 23 and the Bureau of Consumer Financial Protec- 24 tion’’ each place such term appears and insert- 25 ing ‘‘Consumer Law Enforcement Agency’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 STATUES 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00361 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 362 1 (B) by striking ‘‘Bureau of Consumer Fi- 2 nancial Protection’’ each place such term ap- 3 pears and inserting ‘‘Consumer Law Enforce- 4 ment Agency’’; 5 (C) by striking ‘‘Bureau’’ each place such 6 appears, other than in sections 1505(a)(1), 7 1507(a)(2)(A), and 1511(b), and inserting 8 ‘‘Agency’’; 9 (D) in section 1503, by amending para- 10 graph (1) to read as follows: 11 ‘‘(1) AGENCY.—The term ‘Agency’ means the 12 Consumer Law Enforcement Agency.’’; 13 (E) in the heading of section 1508, by striking ‘‘BUREAU 15 CIAL 16 SUMER LAW ENFORCEMENT AGENCY’’; PROTECTION’’ and inserting ‘‘CONand 17 (F) in the heading of section 1514, by 18 striking ‘‘BUREAU’’ and inserting ‘‘AGENCY’’. 19 (22) TELEMARKETING AND CONSUMER FRAUD 20 AND ABUSE PREVENTION ACT.—The 21 and Consumer Fraud and Abuse Prevention Act (15 22 U.S.C. 6101 et seq.) is amended by striking ‘‘Bu- 23 reau of Consumer Financial Protection’’ each place 24 such term appears in heading or text and inserting 25 ‘‘Consumer Law Enforcement Agency’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF CONSUMER FINAN- 14 15:00 Apr 19, 2017 Jkt 000000 Telemarketing (657255 10) PO 00000 Frm 00362 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 363 1 (23) TITLE 5, 2 United States Code, is amended— 3 (A) in section 552a(w)— 4 5, (i) in the subsection heading, by strik- 5 ing ‘‘BUREAU 6 PROTECTION’’ and inserting ‘‘CONSUMER 7 LAW ENFORCEMENT AGENCY’’; OF CONSUMER FINANCIAL 8 (ii) by striking ‘‘Bureau of Consumer 9 Financial Protection’’ and inserting ‘‘Con- 10 sumer Law Enforcement Agency’’; 11 (B) in section 609(d)(2), by striking ‘‘Con- 12 sumer Financial Protection Bureau of the Fed- 13 eral Reserve System’’ and inserting ‘‘Consumer 14 Law Enforcement Agency’’; and 15 (C) in section 3132(a)(1)(D), as amended 16 by section 151(a)(1), is further amended by in- 17 serting ‘‘the Consumer Law Enforcement Agen- 18 cy,’’ before ‘‘and the National Credit Union Ad- 19 ministration’’. 20 (24) TITLE 21 10, UNITED STATES CODE.— (A) SECTION 987.—Section 987(h)(3)(E) 22 of title 10, United States Code, is amended by 23 striking ‘‘Bureau of Consumer Financial Pro- 24 tection’’ and inserting ‘‘Consumer Law En- 25 forcement Agency’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 UNITED STATES CODE.—Title 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00363 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 364 1 (B) NDAA FY 2015.—Section 557(a) of 2 the Carl Levin and Howard P. ‘‘Buck’’ McKeon 3 National Defense Authorization Act for Fiscal 4 Year 2015 (Public Law 113-29; 128 Stat. 5 3381; 10 U.S.C. 1144 note), is amended by 6 striking ‘‘Consumer Financial Protection Bu- 7 reau’’ each place such term appears and insert- 8 ing ‘‘Consumer Law Enforcement Agency’’. 9 (25) TITLE 10 44, UNITED STATES CODE.—Title 44, United States Code, is amended— 11 (A) in section 3502(5), by striking ‘‘the 12 Bureau of Consumer Financial Protection, the 13 Office of Financial Research,’’ and inserting 14 ‘‘the Consumer Law Enforcement Agency,’’; 15 and 16 (B) in section 3513(c), by striking ‘‘Bu- 17 reau of Consumer Financial Protection’’ and in- 18 serting ‘‘Consumer Law Enforcement Agency’’. 19 (26) TRUTH IN LENDING ACT.—The Truth in 20 Lending Act (15 U.S.C. 1601 et seq.) is amended— 21 (A) by amending section 103(b) (15 U.S.C. 22 23 1602(b)) to read as follows: ‘‘(b) AGENCY.—The term ‘Agency’ means the Con- 24 sumer Law Enforcement Agency.’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00364 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 365 1 (B) by amending section 103(c) (15 U.S.C. 2 3 1602(c)) to read as follows: ‘‘(c) BOARD.—The term ‘Board’ means the Board of 4 Governors of the Federal Reserve System.’’; and 5 (C) in section 128(f) (15 U.S.C. 1638(f)), 6 by striking ‘‘Board’’ each place such term ap- 7 pears and inserting ‘‘Agency’’; 8 (D) in sections 129B (15 U.S.C. 1639b) 9 and 129C (15 U.S.C. 1639c), by striking 10 ‘‘Board’’ each place such term appears and in- 11 serting ‘‘Agency’’; 12 (E) in section 140A (15 U.S.C. 1651), by 13 striking ‘‘in consultation with the Bureau’’ and 14 inserting ‘‘in consultation with the Federal 15 Trade Commission’’; 16 (F) by striking ‘‘National Credit Union 17 Administration Bureau’’ each place such term 18 appears and inserting ‘‘National Credit Union 19 Administration Board’’; 20 (G) by striking ‘‘Bureau’’ each place such 21 term appears in heading or text and inserting 22 ‘‘Agency’’; and 23 (H) by striking ‘‘BUREAU’’ and inserting 24 ‘‘AGENCY’’ in the paragraph headings for— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00365 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 366 1 (i) 2 1632(d)(2)); 3 section 122(d)(2) (15 U.S.C. (ii) section 127(c)(5) (15 U.S.C. 4 1637(c)(5)); 5 (iii) section 127(r)(3) (15 U.S.C. 6 1637(r)(3)); and 7 (iv) section 127A(a)(14) (15 U.S.C. 8 1637a(a)(14)). 9 (27) TRUTH IN SAVINGS ACT.—The Truth in 10 Savings Act (12 U.S.C. 4301 et seq.) is amended— 11 (A) by amending paragraph (4) of section 12 274 (12 U.S.C. 4313(4)) to read as follows: 13 ‘‘(4) AGENCY.—The term ‘Agency’ means the 14 Consumer Law Enforcement Agency.’’; 15 (B) by striking ‘‘National Credit Union 16 Administration Bureau’’ each place such term 17 appears and inserting ‘‘National Credit Union 18 Administration Board’’; and 19 (C) by striking ‘‘Bureau’’ each place such 20 term appears and inserting ‘‘Agency’’. 21 SECTION 712. AUTHORITY OF THE OFFICE OF INFORMA- 22 23 TION AND REGULATORY AFFAIRS. Section 1022 of the Consumer Financial Protection 24 Act of 2010 (12 U.S.C. 5512) is amended by adding at 25 the end the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00366 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 367 1 2 ‘‘(e) AUTHORITY AND OF THE OFFICE OF INFORMATION REGULATORY AFFAIRS.—The Office of Information 3 and Regulatory Affairs shall have the same duties and au4 thorities with respect to the Consumer Law Enforcement 5 Agency as the Office of Information and Regulatory Af6 fairs has with respect to any other agency that is not an 7 independent regulatory agency (as such terms are defined, 8 respectively, under section 3502 of title 44, United States 9 Code).’’. 10 SEC. 713. BRINGING THE AGENCY INTO THE REGULAR AP- 11 12 PROPRIATIONS PROCESS. Section 1017 of the Consumer Financial Protection 13 Act of 2010 (12 U.S.C. 5497) is amended— 14 (1) in subsection (a)— 15 (A) by amending the heading of such sub- 16 section to read as follows: ‘‘BUDGET, FINAN- 17 CIAL 18 AND AUDIT.—’’; (B) by striking paragraphs (1), (2), and 19 (3); 20 (C) by redesignating paragraphs (4) and 21 (5) as paragraphs (1) and (2), respectively; and 22 (D) by striking subparagraphs (E) and (F) 23 of paragraph (1), as so redesignated; 24 (2) by striking subsections (b) and (c); G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MANAGEMENT, 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00367 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 368 1 (3) by redesignating subsections (d) and (e) as 2 subsections (b) and (c), respectively; and 3 (4) in subsection (c), as so redesignated— 4 (A) by striking paragraphs (1), (2), and 5 (3) and inserting the following: 6 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 7 There is authorized to be appropriated to the Agen- 8 cy for each of fiscal years 2017 and 2018 an amount 9 equal to the aggregate amount of funds transferred 10 by the Board of Governors to the Bureau of Con- 11 sumer Financial Protection during fiscal year 12 2015.’’; and 13 (B) by redesignating paragraph (4) as 14 15 paragraph (2). SEC. 714. CONSUMER LAW ENFORCEMENT AGENCY INSPEC- 16 TOR GENERAL REFORM. 17 (a) APPOINTMENT OF INSPECTOR GENERAL.—The 18 Inspector General Act of 1978 (5 U.S.C. App.) is amend19 ed— 20 (1) in section 8G— 21 (A) in subsection (a)(2), by striking ‘‘and 22 the Bureau of Consumer Financial Protection’’; 23 (B) in subsection (c), by striking ‘‘For 24 purposes of implementing this section’’ and all G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00368 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 369 1 that follows through the end of the subsection; 2 and 3 (C) in subsection (g)(3), by striking ‘‘and 4 the Bureau of Consumer Financial Protection’’; 5 and 6 (2) in section 12— 7 (A) in paragraph (1), by inserting ‘‘the 8 Consumer Law Enforcement Agency;’’ after 9 ‘‘the President of the Export-Import Bank;’’; 10 and 11 (B) in paragraph (2), by inserting ‘‘the 12 Consumer Law Enforcement Agency,’’ after 13 ‘‘the Export-Import Bank,’’. 14 15 (b) REQUIREMENTS FOR THE FOR THE INSPECTOR GENERAL CONSUMER LAW ENFORCEMENT AGENCY.— 16 (1) ESTABLISHMENT.—Section 1011 of the 17 Consumer Financial Protection Act of 2010 (12 18 U.S.C. 5491), as amended by section 311, is further 19 amended by adding at the end the following: 20 ‘‘(i) INSPECTOR GENERAL.—There is established the 21 position of the Inspector General of the Agency.’’; and 22 (2) HEARINGS.—Section 1016 of the Consumer 23 Financial Protection Act of 2010 (12 U.S.C. 5496) 24 is amended by inserting after subsection (c) the fol- 25 lowing: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00369 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 370 1 ‘‘(d) ADDITIONAL REQUIREMENT FOR INSPECTOR 2 GENERAL.—On a separate occasion from that described 3 in subsection (a), the Inspector General of the Agency 4 shall appear, upon invitation, before the Committee on 5 Banking, Housing, and Urban Affairs of the Senate and 6 the Committee on Financial Services of the House of Rep7 resentatives at semi-annual hearings regarding the reports 8 required under subsection (b) and the reports required 9 under section 5 of the Inspector General Act of 1978 (5 10 U.S.C. App.).’’. 11 (3) PARTICIPATION IN THE COUNCIL OF IN- 12 SPECTORS GENERAL ON FINANCIAL OVERSIGHT.— 13 Section 989E(a)(1) of the Dodd-Frank Wall Street 14 Reform and Consumer Protection Act is amended by 15 adding at the end the following: 16 ‘‘(J) The Consumer Law Enforcement 17 Agency.’’. 18 (4) DEADLINE FOR APPOINTMENT.—Not later 19 than 60 days after the date of the enactment of this 20 Act, the President shall appoint an Inspector Gen- 21 eral for the Consumer Law Enforcement Agency in 22 accordance with section 3 of the Inspector General 23 Act of 1978 (5 U.S.C. App.). 24 (c) TRANSITION PERIOD.—The Inspector General of 25 the Board of Governors of the Federal Reserve System G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00370 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 371 1 and the Bureau of Consumer Financial Protection shall 2 serve in that position until the confirmation of an Inspec3 tor General for the Consumer Law Enforcement Agency. 4 At that time, the Inspector General of the Board of Gov5 ernors of the Federal Reserve System and the Bureau of 6 Consumer Financial Protection shall become the Inspector 7 General of the Board of Governors of the Federal Reserve 8 System. 9 SEC. 715. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 10 AGENCY TO SEEK SANCTIONS BY FILING 11 CIVIL ACTIONS; ADJUDICATIONS DEEMED AC- 12 TIONS. 13 Section 1053 of the Consumer Financial Protection 14 Act of 2010 (12 U.S.C. 5563) is amended by adding at 15 the end the following: 16 ‘‘(f) PRIVATE PARTIES AUTHORIZED 17 THE 18 TIONS.— AGENCY 19 SEEK SANCTIONS ‘‘(1) TERMINATION BY COMPEL FILING CIVIL AC- OF ADMINISTRATIVE PRO- 20 CEEDING.—In 21 to a proceeding brought by the Agency under this 22 section, to which chapter 5 of title 5, United States 23 Code, applies, and against whom an order imposing 24 a cease and desist order or a penalty may be issued 25 at the conclusion of the proceeding, that person G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TO TO 15:00 Apr 19, 2017 Jkt 000000 the case of any person who is a party (657255 10) PO 00000 Frm 00371 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 372 1 may, not later than 20 days after receiving notice of 2 such proceeding, and at that person’s discretion, re- 3 quire the Agency to terminate the proceeding. 4 ‘‘(2) CIVIL ACTION AUTHORIZED.—If a person 5 requires the Agency to terminate a proceeding pur- 6 suant to paragraph (1), the Agency may bring a civil 7 action against that person for the same remedy that 8 might be imposed. 9 ‘‘(g) ADJUDICATIONS DEEMED ACTIONS.—Any ad- 10 ministrative adjudication commenced under this section 11 shall be deemed an ‘action’ for purposes of section 12 1054(g).’’. 13 SEC. 716. CIVIL INVESTIGATIVE DEMANDS TO BE AP- 14 15 PEALED TO COURTS. Section 1052 of the Consumer Financial Protection 16 Act of 2010 (12 U.S.C. 5562) is amended— 17 (1) in subsection (c)— 18 (A) in paragraph (2), by inserting after 19 ‘‘shall state’’ the following: ‘‘with specificity’’; 20 and 21 (B) by adding at the end the following: 22 ‘‘(14) MEETING recipient 23 of a civil investigative demand shall meet and confer 24 with an Agency investigator within 30 calendar days 25 after receipt of the demand to discuss and attempt G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REQUIREMENT.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00372 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 373 1 to resolve all issues regarding compliance with the 2 civil investigative demand, unless the Agency grants 3 an extension requested by such recipient.’’; 4 (2) in subsection (f)— 5 (A) by amending paragraph (1) to read as 6 follows: 7 ‘‘(1) IN later than 45 days 8 after the service of any civil investigative demand 9 upon any person under subsection (c), or at any 10 time before the return date specified in the demand, 11 whichever period is shorter, or within such period ex- 12 ceeding 45 days after service or in excess of such re- 13 turn date as may be prescribed in writing, subse- 14 quent to service, by any Agency investigator named 15 in the demand, such person may file, in the district 16 court of the United States for any judicial district 17 in which such person resides, is found, or transacts 18 business, a petition for an order modifying or setting 19 aside the demand.’’; and 20 (B) in paragraph (2), by striking ‘‘at the 21 Bureau’’; and 22 (3) in subsection (h)— 23 (A) by striking ‘‘(1) IN 24 (B) by striking paragraph (2). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Not 15:00 Apr 19, 2017 Jkt 000000 GENERAL.—’’ ; and (657255 10) PO 00000 Frm 00373 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 374 1 SEC. 717. AGENCY DUAL MANDATE AND ECONOMIC ANAL- 2 3 YSIS. (a) PURPOSE.—Section 1021(a) of the Consumer Fi- 4 nancial Protection Act of 2010 (12 U.S.C. 5511(a)) is 5 amended by adding at the end the following: ‘‘In addition, 6 the Director shall seek to implement and, where applica7 ble, enforce Federal consumer financial law consistently 8 for the purpose of strengthening participation in markets 9 by covered persons, without Government interference or 10 subsidies, to increase competition and enhance consumer 11 choice.’’. 12 (b) OFFICE OF ECONOMIC ANALYSIS.— 13 (1) IN 1013 of the Con- 14 sumer Financial Protection Act of 2010 (12 U.S.C. 15 5493) is amended by adding at the end the fol- 16 lowing: 17 ‘‘(h) OFFICE OF ECONOMIC ANALYSIS.— 18 ‘‘(1) ESTABLISHMENT.—The Director shall, not 19 later than the end of the 60-day period beginning on 20 the date of the enactment of this subsection, estab- 21 lish an Office of Economic Analysis. 22 ‘‘(2) DIRECT REPORTING.—The head of the Of- 23 fice of Economic Analysis shall report directly to the 24 Director. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Section 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00374 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 375 1 ‘‘(3) REVIEW 2 RULES AND REGULATIONS.—The 3 Analysis shall— 4 Office of Economic ‘‘(A) review all proposed rules and regula- 5 tions of the Agency; 6 ‘‘(B) assess the impact of such rules and 7 regulations on consumer choice, price, and ac- 8 cess to credit products; and 9 ‘‘(C) publish a report on such reviews and 10 assessments in the Federal Register. 11 ‘‘(4) MEASURING 12 LATIONS.—The EXISTING RULES AND REGU- Office of Economic Analysis shall— 13 ‘‘(A) review each rule and regulation 14 issued by the Commission after 1, 2, 6, and 11 15 years; 16 ‘‘(B) measure the rule or regulation’s suc- 17 cess in solving the problem that the rule or reg- 18 ulation was intended to solve when issued; and 19 ‘‘(C) publish a report on such review and 20 measurement in the Federal Register. 21 ‘‘(5) COST-BENEFIT 22 MINISTRATIVE 23 TIONS.—The ANALYSIS RELATED TO AD- ENFORCEMENT AND CIVIL AC- Office of Economic Analysis shall— 24 ‘‘(A) carry out a cost-benefit analysis of 25 any proposed administrative enforcement ac- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND ASSESSMENT OF PROPOSED 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00375 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 376 1 tion, civil lawsuit, or consent order of the Agen- 2 cy; and 3 ‘‘(B) assess the impact of such complaint, 4 lawsuit, or order on consumer choice, price, and 5 access to credit products.’’. 6 (2) CONSIDERATION 7 MENT; 8 1022(b) of the Consumer Financial Protection Act 9 of 2010 (12 U.S.C. 5512(b)) is amended by adding 10 RULEMAKING REQUIREMENTS.—Section at the end the following: 11 ‘‘(5) CONSIDERATION OF REVIEW AND ASSESS- 12 MENT BY THE OFFICE OF ECONOMIC ANALYSIS.— 13 Before issuing any rule or regulation, the Director 14 shall consider the review and assessment of such 15 rule or regulation carried out by the Office of Eco- 16 nomic Analysis. 17 18 ‘‘(6) IDENTIFICATION OF PROBLEMS AND METRICS FOR JUDGING SUCCESS.— 19 ‘‘(A) IN 20 GENERAL.—The Director shall, in each proposed rulemaking of the Agency— 21 ‘‘(i) identify the problem that the par- 22 ticular rule or regulations is seeking to 23 solve; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF REVIEW AND ASSESS- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00376 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 377 1 ‘‘(ii) specify the metrics by which the 2 Agency will measure the success of the rule 3 or regulation in solving such problem. 4 ‘‘(B) REQUIRED METRICS.—The metrics 5 specified under subparagraph (A)(ii) shall in- 6 clude a measurement of changes to consumer 7 access to, and cost of, consumer financial prod- 8 ucts and services.’’. 9 (3) CONSIDERATION OF COST-BENEFIT REVIEW 10 RELATED 11 Dodd-Frank Wall Street Reform and Consumer Pro- 12 tection Act (12 U.S.C. 5301 et seq.) is amended— 13 (A) in subtitle E of title X, by adding at 14 15 TO ADMINISTRATIVE the end the following: ‘‘SEC. 1059. CONSIDERATION OF COST-BENEFIT ANALYSIS 16 RELATED 17 MENT AND CIVIL ACTIONS. 18 ACTIONS.—The TO ADMINISTRATIVE ENFORCE- ‘‘Before initiating any administrative enforcement ac- 19 tion or civil lawsuit or entering into a consent order, the 20 Director shall consider the cost-benefit analysis of such 21 action, lawsuit, or order carried out by the Office of Eco22 nomic Analysis.’’; and 23 (B) in the table of contents under section 24 1(b), by inserting after the item relating to sec- 25 tion 1058 the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00377 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 378 ‘‘Sec. 1059. Consideration of cost-benefit analysis related to administrative enforcement and civil actions.’’. 1 (c) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY 2 ANALYSES.—The Consumer Law Enforcement Agency 3 may perform any of the analyses required by the amend4 ments made by this section in conjunction with, or as part 5 of, any other agenda or analysis required by any other 6 provision of law, if such other agenda or analysis satisfies 7 the provisions of this section. 8 9 SEC. 718. NO DEFERENCE TO AGENCY INTERPRETATION. The Consumer Financial Protection Act of 2010 (12 10 U.S.C. 5481 et seq.) is amended— 11 (1) in section 1022(b)(4)— 12 (A) by striking ‘‘(A) IN 13 (B) by striking subparagraph (B); and 14 and (2) in section 1061(b)(5)(E)— 15 (A) by striking ‘‘affords to the—’’ and all 16 that follows through ‘‘(i) Federal Trade Com- 17 mission’’ and inserting ‘‘affords to the Federal 18 Trade Commission’’; 19 (B) by striking ‘‘; or’’ and inserting a pe- 20 riod; and 21 (C) by striking clause (ii). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—’’; 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00378 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 379 Subtitle B—Administrative Enhancements 1 2 3 4 SEC. 721. ADVISORY OPINIONS. Section 1022(b) of the Consumer Financial Protec- 5 tion Act of 2010 (12 U.S.C. 5512(b)), as amended by sec6 tion 717, is further amended by adding at the end the 7 following: 8 ‘‘(7) ADVISORY 9 ‘‘(A) ESTABLISHING 10 ‘‘(i) IN PROCEDURES.— GENERAL.—The Director shall 11 establish a procedure and, as necessary, 12 promulgate rules to provide written opin- 13 ions in response to inquiries concerning the 14 conformance of specific conduct with Fed- 15 eral consumer financial law. In establishing 16 the procedure, the Director shall consult 17 with the prudential regulators and such 18 other Federal departments and agencies as 19 the Director determines appropriate, and 20 obtain the views of all interested persons 21 through a public notice and comment pe- 22 riod. 23 ‘‘(ii) SCOPE OF REQUEST.—A request 24 for an opinion under this paragraph must 25 relate to specific proposed or prospective G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OPINIONS.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00379 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 380 1 conduct by a covered person contemplating 2 the proposed or prospective conduct. 3 ‘‘(iii) SUBMISSION.—A request for an 4 opinion under this paragraph may be sub- 5 mitted to the Director either by or on be- 6 half of a covered person. 7 ‘‘(iv) TO WITHDRAW IN- 8 QUIRY.—Any 9 may be withdrawn at any time prior to the 10 Director issuing an opinion in response to 11 such inquiry, and any opinion based on an 12 inquiry that has been withdrawn shall have 13 no force or effect. 14 ‘‘(B) ISSUANCE 15 ‘‘(i) IN inquiry under this paragraph OF OPINIONS.— GENERAL.—The Director 16 shall, within 90 days of receiving the re- 17 quest for an opinion under this paragraph, 18 either— 19 ‘‘(I) issue an opinion stating 20 whether the described conduct would 21 violate Federal consumer financial 22 law; 23 ‘‘(II) if permissible under clause 24 (iii), deny the request; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RIGHT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00380 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 381 1 ‘‘(III) explain why it is not fea- 2 sible to issue an opinion. 3 ‘‘(ii) 4 clause (i), if the Director determines that 5 the Agency requires additional time to 6 issue an opinion, the Director may make a 7 single extension of the deadline of 90 days 8 or less. 9 ‘‘(iii) DENIAL OF REQUESTS.—The 10 Director shall not issue an opinion, and 11 shall so inform the requestor, if the re- 12 quest for an opinion— 13 ‘‘(I) asks a general question of 14 interpretation; 15 ‘‘(II) asks about a hypothetical 16 situation; 17 ‘‘(III) asks about the conduct of 18 someone other than the covered per- 19 son on whose behalf the request is 20 made; 21 ‘‘(IV) asks about past conduct 22 that the covered person on whose be- 23 half the request is made does not plan 24 to continue in the future; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 EXTENSION.—Notwithstanding 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00381 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 382 1 ‘‘(V) fails to provide necessary 2 supporting information requested by 3 the Agency within a reasonable time 4 established by the Agency. 5 ‘‘(iv) AND REVOCA- 6 TION.—An 7 this paragraph may be amended or revoked 8 at any time. 9 advisory opinion issued under ‘‘(v) PUBLIC DISCLOSURE.—An opin- 10 ion rendered pursuant to this paragraph 11 shall be placed in the Agency’s public 12 record 90 days after the requesting party 13 has received the advice, subject to any lim- 14 itations on public disclosure arising from 15 statutory restrictions, Agency regulations, 16 or the public interest. The Agency shall re- 17 dact any personal, confidential, or identi- 18 fying information about the covered person 19 or any other persons mentioned in the ad- 20 visory opinion, unless the covered person 21 consents to such disclosure. 22 ‘‘(vi) REPORT TO CONGRESS.—The 23 Agency shall, concurrent with the semi-an- 24 nual 25 1016(b), submit information regarding the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AMENDMENT 15:00 Apr 19, 2017 Jkt 000000 report required under section (657255 10) PO 00000 Frm 00382 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 383 1 number of requests for an advisory opinion 2 received, the subject of each request, the 3 number of requests denied pursuant to 4 clause (iii), and the time needed to respond 5 to each request. 6 ‘‘(C) RELIANCE person 7 may rely on an opinion issued by the Director 8 pursuant to this paragraph that has not been 9 amended or withdrawn. No liability under Fed- 10 eral consumer financial law shall attach to con- 11 duct consistent with an advisory opinion that 12 had not been amended or withdrawn at the time 13 the conduct was undertaken. 14 ‘‘(D) CONFIDENTIALITY.—Any document 15 or other material that is received by the Agency 16 or any other Federal department or agency in 17 connection with an inquiry under this para- 18 graph shall be exempt from disclosure under 19 section 552 of title 5, United States Code (com- 20 monly referred to as the ‘Freedom of Informa- 21 tion Act’) and may not, except with the consent 22 of the covered person making such inquiry, be 23 made publicly available, regardless of whether 24 the Director responds to such inquiry or the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ON OPINION.—Any 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00383 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 384 1 covered person withdraws such inquiry before 2 receiving an opinion. 3 ‘‘(E) 4 FOR SMALL BUSI- NESSES.— 5 ‘‘(i) IN GENERAL.—The Agency shall 6 assist, to the maximum extent practicable, 7 small businesses in preparing inquiries 8 under this paragraph. 9 ‘‘(ii) SMALL BUSINESS DEFINED.— 10 For purposes of this subparagraph, the 11 term ‘small business’ has the meaning 12 given the term ‘small business concern’ 13 under section 3 of the Small Business Act 14 (15 U.S.C. 632). 15 ‘‘(F) INQUIRY 16 ‘‘(i) IN FEE.— GENERAL.—The Director shall 17 develop a system to charge a fee for each 18 inquiry made under this paragraph in an 19 amount sufficient, in the aggregate, to pay 20 for the cost of carrying out this paragraph. 21 ‘‘(ii) NOTICE AND COMMENT.—Not 22 later than 45 days after the date of the en- 23 actment of this paragraph, the Director 24 shall publish a description of the fee sys- 25 tem described in clause (i) in the Federal G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ASSISTANCE 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00384 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 385 1 Register and shall solicit comments from 2 the public for a period of 60 days after 3 publication. 4 ‘‘(iii) FINALIZATION.—The Director 5 shall publish a final description of the fee 6 system and implement such fee system not 7 later than 30 days after the end of the 8 public comment period described in clause 9 (ii).’’. 10 SEC. 722. REFORM OF CONSUMER FINANCIAL CIVIL PEN- 11 12 ALTY FUND. (a) SEGREGATED ACCOUNTS.—Section 1017(b) of 13 the Consumer Financial Protection Act of 2010, as redes14 ignated by section 713, is amended by redesignating para15 graph (2) as paragraph (3), and by inserting after para16 graph (1) the following new paragraph: 17 18 ‘‘(2) SEGREGATED ALTY FUND.— 19 ‘‘(A) IN GENERAL.—The Agency shall es- 20 tablish and maintain a segregated account in 21 the Civil Penalty Fund each time the Agency 22 obtains a civil penalty against any person in 23 any judicial or administrative action under Fed- 24 eral consumer financial laws. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ACCOUNTS IN CIVIL PEN- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00385 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 386 1 ‘‘(B) 2 COUNTS.—The 3 penalty collected into the segregated account es- 4 tablished for such penalty under subparagraph 5 (A).’’. 6 DEPOSITS IN SEGREGATED AC- Agency shall deposit each civil (b) PAYMENT TO VICTIMS.—Paragraph (3) of section 7 1017(b) of such Act, as redesignated by subsection (a), 8 is amended to read as follows: 9 ‘‘(3) PAYMENT 10 ‘‘(A) IN 11 GENERAL.— ‘‘(i) IDENTIFICATION OF CLASS.—Not 12 later than 60 days after the date of deposit 13 of amounts in a segregated account in the 14 Civil Penalty Fund, the Agency shall iden- 15 tify the class of victims of the violation of 16 Federal consumer financial laws for which 17 such amounts were collected and deposited 18 under paragraph (2). 19 ‘‘(ii) PAYMENTS.—The Agency, within 20 2 years after the date on which such class 21 of victims is identified, shall locate and 22 make payments from such amounts to each 23 victim. 24 ‘‘(B) FUNDS G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TO VICTIMS.— 15:00 Apr 19, 2017 Jkt 000000 DEPOSITED IN TREASURY.— (657255 10) PO 00000 Frm 00386 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 387 1 ‘‘(i) IN Agency shall 2 deposit into the general fund of the Treas- 3 ury any amounts remaining in a seg- 4 regated account in the Civil Penalty Fund 5 at the end of the 2-year period for pay- 6 ments to victims under subparagraph (A). 7 ‘‘(ii) IMPOSSIBLE OR IMPRACTICAL 8 PAYMENTS.—If 9 fore the end of the 2-year period for pay- 10 ments to victims under subparagraph (A) 11 that such victims cannot be located or pay- 12 ments to such victims are otherwise not 13 practicable, the Agency shall deposit into 14 the general fund of the Treasury the 15 amounts in the segregated account in the 16 Civil Penalty Fund.’’. 17 the Agency determines be- (c) EFFECTIVE DATE.— 18 (1) IN GENERAL.—The amendments made by 19 this section shall apply with respect to civil penalties 20 collected after the date of enactment of this Act. 21 (2) AMOUNTS IN CONSUMER FINANCIAL CIVIL 22 PENALTY FUND ON DATE OF ENACTMENT.—With 23 respect to amounts in the Consumer Financial Civil 24 Penalty Fund on the date of enactment of this Act 25 that were not allocated for consumer education and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00387 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 388 1 financial literacy programs on or before September 2 30, 2015, the Consumer Law Enforcement Agency 3 shall separate such amounts into segregated ac- 4 counts in accordance with, and for purposes of, sec- 5 tion 1017(d) of the Consumer Financial Protection 6 Act of 2010, as amended by this section. The date 7 of deposit of such amounts shall be deemed to be the 8 date of enactment of this Act. 9 10 SEC. 723. AGENCY PAY FAIRNESS. (a) IN GENERAL.—Section 1013(a)(2) of the Con- 11 sumer Financial Protection Act of 2010 (12 U.S.C. 12 5493(a)(2)) is amended to read as follows: 13 ‘‘(2) COMPENSATION.—The rates of basic pay 14 for all employees of the Agency shall be set and ad- 15 justed by the Director in accordance with the Gen- 16 eral Schedule set forth in section 5332 of title 5, 17 United States Code.’’. 18 (b) EFFECTIVE DATE.—The amendment made by 19 subsection (a) shall apply to service by an employee of the 20 Consumer Law Enforcement Agency following the 90-day 21 period beginning on the date of enactment of this Act. 22 SEC. 724. ELIMINATION OF MARKET MONITORING FUNC- 23 24 TIONS. The Consumer Financial Protection Act of 2010 (12 25 U.S.C. 5481 et seq.) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00388 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 389 1 (1) in section 1021(c)— 2 (A) by striking paragraph (3); and 3 (B) by redesignating paragraphs (4), (5), 4 and (6) as paragraphs (3), (4), and (5), respec- 5 tively; 6 (2) in section 1022, by striking subsection (c); 7 and 8 (3) in section 1026(b), by striking ‘‘, and to as- 9 sess and detect risks to consumers and consumer fi- 10 11 12 nancial markets’’. SEC. 725. REFORMS TO MANDATORY FUNCTIONAL UNITS. The Consumer Financial Protection Act of 2010 (12 13 U.S.C. 5481 et seq.) is amended— 14 (1) in section 1013— 15 (A) in subsection (b)— 16 (i) in paragraph (1), by striking 17 ‘‘shall establish’’ and inserting ‘‘may estab- 18 lish’’; 19 (ii) in paragraph (2), by striking 20 ‘‘shall establish’’ and inserting ‘‘may estab- 21 lish’’; and 22 (iii) paragraph (3)(D)— 23 (I) by striking ‘‘To facilitate 24 preparation of the reports required 25 under subparagraph (C), supervision G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00389 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 390 1 and enforcement activities, and moni- 2 toring of the market for consumer fi- 3 nancial products and services, the’’ 4 and inserting ‘‘The’’; and 5 (II) by adding at the end the fol- 6 lowing: ‘‘Information collected under 7 this paragraph may not be made pub- 8 licly available.’’; 9 (B) in subsection (c)— 10 (i) in paragraph (1), by striking 11 ‘‘shall establish’’ and inserting ‘‘may estab- 12 lish’’; and 13 (ii) in paragraph (3), by striking 14 ‘‘There is established the’’ and inserting 15 ‘‘At any time when the Office of Fair 16 Lending and Equal Opportunity exists 17 within the Agency, there shall be a’’; 18 (C) in subsection (d)— 19 (i) in paragraph (1), by striking 20 ‘‘shall establish’’ and inserting ‘‘may estab- 21 lish’’; 22 (ii) in paragraph (3)— 23 (I) in subparagraph (A), by in- 24 serting ‘‘, if such Office exists within G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00390 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 391 1 the Agency,’’ after ‘‘Community Af- 2 fairs Office’’ ; and 3 (II) in subparagraph (B), by 4 striking ‘‘established by the Director’’ 5 and inserting ‘‘, if established by the 6 Director,’’; and 7 (iii) in paragraph (4), by striking 8 ‘‘Not later than 24 months after the des- 9 ignated transfer date, and annually there- 10 after,’’ and inserting ‘‘Annually, at any 11 time when the Office of Financial Edu- 12 cation exists within the Agency,’’; 13 (D) in subsection (e)(1), by striking ‘‘shall 14 establish’’ and inserting ‘‘may establish’’; 15 (E) by striking subsection (f); 16 (F) by redesignating subsections (g) and 17 (h) as subsections (f) and (g), respectively; and 18 (G) in subsection (f), as so redesignated— 19 (i) in paragraph (1)— 20 (I) by striking ‘‘Before the end of 21 the 180-day period beginning on the 22 designated transfer date, the Director 23 shall’’ and inserting ‘‘The Director 24 may’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00391 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 392 1 (II) by striking ‘‘on protection 2 from unfair, deceptive, and abusive 3 practices and’’; 4 (ii) in paragraph (2), by striking ‘‘The 5 Office’’ and inserting ‘‘At any time when 6 the Office of Financial Protection for 7 Older Americans exists within the Agency, 8 the Office’’; and 9 (iii) in paragraph (3)— 10 (I) in subparagraph (A)— 11 (aa) by striking clause (i); 12 (bb) redesignating 13 clauses (ii) and (iii) as clauses (i) 14 and (ii), respectively; and 15 (cc) in clause (ii), as so re- 16 designated, by striking ‘‘to re- 17 spond 18 caused by unfair, deceptive, or 19 abusive practices’’; 20 (II) in subparagraph (B), by 21 striking ‘‘and alert the Commission 22 and State regulators of certifications 23 or designations that are identified as 24 unfair, deceptive, or abusive’’; and 25 15:00 Apr 19, 2017 to consumer problems (III) in subparagraph (D)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 by Jkt 000000 (657255 10) PO 00000 Frm 00392 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 393 1 (aa) by striking clause (i); 2 and 3 (bb) by redesignating 4 clauses (ii) and (iii) as clauses (i) 5 and (ii), respectively; 6 (2) in section 1029(e), by inserting after ‘‘Af- 7 fairs,’’ the following: ‘‘if established under this 8 title,’’; and 9 (3) in section 1035— 10 (A) in subsection (a), by striking ‘‘shall 11 designate’’ and inserting ‘‘may designate’’; and 12 (B) in subsection (b), by striking ‘‘The 13 Secretary’’ and inserting ‘‘If the Secretary des- 14 ignates the Ombudsman under subsection (a), 15 the Secretary’’. 16 17 SEC. 726. REPEAL OF MANDATORY ADVISORY BOARD. (a) IN GENERAL.—Section 1014 of the Consumer Fi- 18 nancial Protection Act of 2010 (12 U.S.C. 5494) is re19 pealed. 20 (b) CLERICAL AMENDMENT.—The table of contents 21 in section 1(b) of the Dodd-Frank Wall Street Reform and 22 Consumer Protection Act is amended by striking the item 23 relation to section 1014. 24 (c) RULE OF CONSTRUCTION.—Nothing in this sec- 25 tion may be construed as limiting the authority of the Di- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00393 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 394 1 rector of the Consumer Law Enforcement Agency to es2 tablish advisory committees pursuant to the Federal Advi3 sory Committee Act. 4 5 SEC. 727. ELIMINATION OF SUPERVISION AUTHORITY. (a) IN GENERAL.—The Consumer Financial Protec- 6 tion Act of 2010 (12 U.S.C. 5481 et seq.) is amended— 7 8 (1) in section 1002(15)(B)(ii)(I), by striking ‘‘examination or’’; 9 (2) in section 1013(a)(1)(B), by striking ‘‘com- 10 pliance examiners, compliance supervision analysts,’’; 11 (3) in section 1016(c)— 12 (A) in paragraph (5), by striking ‘‘super- 13 visory and’’; and 14 (B) in paragraph (6), by striking ‘‘orders, 15 and supervisory actions’’ and inserting ‘‘and or- 16 ders’’; 17 (4) in section 1024— (A) in the heading, by striking ‘‘SUPER- 18 19 VISION 20 WITH RESPECT TO CERTAIN’’; 21 (B) in subsection (a)— and inserting ‘‘AUTHORITY 22 (i) in paragraph (1)(B), by striking 23 ‘‘as defined by rule in accordance with 24 paragraph (2)’’ and inserting ‘‘as of the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF’’ 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00394 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 395 1 date of the enactment of the Financial 2 CHOICE Act of 2017’’; 3 (ii) by striking paragraph (2); 4 (iii) by redesignating paragraph (3) as 5 paragraph (2); and 6 (iv) in subparagraph (A) of paragraph 7 (2), 8 ‘‘1025(a) or’’; 9 (C) by striking subsection (b); so redesignated, by striking 10 (D) by redesignating subsections (c), (d), 11 (e), and (f) as subsections (b), (c), (d), and (e), 12 respectively; 13 (E) in subsection (c), as so redesignated— 14 (i) in the heading, by striking ‘‘AND 15 EXAMINATION AUTHORITY’’; and 16 (ii) by striking ‘‘, conduct examina- 17 tions,’’ each place such term appears; 18 (F) in subsection (d), as so redesignated— 19 (i) by inserting ‘‘rulemaking and en- 20 forcement, but not supervisory,’’ before 21 ‘‘authority of the Bureau’’; and 22 (ii) by striking ‘‘conducting any exam- 23 ination or requiring any report from a 24 service provider subject to this subsection’’ 25 and inserting ‘‘carrying out any authority G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 as 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00395 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 396 1 pursuant to this subsection with respect to 2 a service provider’’; 3 (5) by striking section 1025; 4 (6) in section 1026— 5 (A) by amending subsection (a) to read as 6 follows: 7 ‘‘(a) SCOPE OF COVERAGE.—This section shall apply 8 to any covered person that is an insured depository insti9 tution or an insured credit union.’’; 10 (B) in subsection (b)(3), by striking ‘‘re- 11 port of examination or related’’; 12 (C) by striking subsection (c); 13 (D) by redesignating subsections (d) and 14 (e) as subsections (c) and (d), respectively; and 15 (E) in subsection (d), as so redesignated— 16 (i) by striking ‘‘section 1025’’ and in- 17 serting ‘‘this section’’; and 18 (ii) by striking ‘‘When conducting any 19 examination or requiring any report from a 20 service provider subject to this subsection’’ 21 and inserting ‘‘In carrying out any author- 22 ity pursuant to this subsection with respect 23 to a service provider’’; 24 (7) in section 1027— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00396 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 397 1 (A) by striking ‘‘supervisory,’’ each place 2 such term appears; 3 (B) in subsection (e)(1), by striking ‘‘su- 4 pervisory or’’; and 5 (C) in subsection (p), by striking ‘‘section 6 1024(c)(1)’’ 7 1024(b)(1)’’; 8 (8) in section 1034— 9 inserting ‘‘section (A) by striking subsections (b) and (c); 10 and 11 (B) by redesignating subsection (d) as sub- 12 section (b); 13 (9) in section 1053— 14 (A) in subsection (b)(1)(A), by striking 15 ‘‘sections 1024, 1025, and 1026’’ and inserting 16 ‘‘sections 1024 and 1026’’; and 17 (B) in subsection (c)(3)(B)(ii)(II), by 18 striking ‘‘, by examination or otherwise,’’; 19 (10) in section 1054(a), by striking ‘‘sections 20 1024, 1025, and 1026’’ and inserting ‘‘sections 21 1024 and 1026’’; 22 (11) in section 1061— 23 (A) in subsection (a)(1)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 and 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00397 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 398 1 (i) in subparagraph (A), by striking ‘‘; 2 and’’ at the end and inserting a period; 3 and 4 (ii) by striking subparagraph (B); and 5 (B) in subsection (c)— 6 (i) by amending paragraph (1) to read 7 as follows: 8 ‘‘(1) EXAMINATION.—A transferor agency that 9 is a prudential regulator shall have exclusive author- 10 ity (relative to the Bureau) to require reports from 11 and conduct examinations for compliance with Fed- 12 eral consumer financial laws with respect to a person 13 described in section 1026(a).’’; 14 (ii) in paragraph (2)— 15 (I) by striking subparagraph (A); 16 and 17 (II) by redesignating subpara- 18 graphs (B) and (C) as subparagraphs 19 (A) and (B), respectively; 20 (12) in section 1063, by striking ‘‘sections 21 1024, 1025, and 1026’’ each place such term ap- 22 pears and inserting ‘‘sections 1024 and 1026’’; and 23 (13) in section 1067, by striking subsection (e). 24 (b) HOME MORTGAGE DISCLOSURE ACT OF 1975.— 25 Section 305(d) of the Home Mortgage Disclosure Act of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00398 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 399 1 1975 (12 U.S.C. 2804(d)) is amended by striking ‘‘exam2 ine and’’. 3 (c) OMNIBUS APPROPRIATIONS ACT, 2009.—Section 4 626 of the Omnibus Appropriations Act, 2009 (15 U.S.C. 5 1638 note) is repealed. 6 (d) CLERICAL AMENDMENT.—The table of contents 7 in section 1(b) of the Dodd-Frank Wall Street Reform and 8 Consumer Protection Act is amended— 9 (1) in the item relating to section 1024, by 10 striking ‘‘SUPERVISION OF’’ and inserting ‘‘AU- 11 THORITY WITH RESPECT TO CERTAIN’’; and 12 (2) by striking the item relating to section 13 14 1025. SEC. 728. TRANSFER OF OLD OTS BUILDING FROM OCC TO 15 16 GSA. Not later than 180 days after the date of enactment 17 of this Act, the Comptroller of the Currency shall transfer 18 administrative jurisdiction over the Federal property lo19 cated at 1700 G Street, Northwest, in the District of Co20 lumbia to the Administrator of General Services. 21 22 SEC. 729. LIMITATION ON AGENCY AUTHORITY. Section 1027 of the Consumer Financial Protection 23 Act of 2010 (12 U.S.C. 5517) is amended— 24 (1) in subsection (g)(3)(A), by striking ‘‘may 25 not exercise any rulemaking or enforcement author- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00399 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 400 1 ity’’ and inserting ‘‘may not exercise any rule- 2 making, enforcement, or other authority’’; 3 (2) in subsection (i)(1), by striking ‘‘shall have 4 no authority to exercise any power to enforce this 5 title’’ and inserting ‘‘may not exercise any rule- 6 making, enforcement, or other authority’’; and 7 (3) in subsection (j)(1), by striking ‘‘shall have 8 no authority to exercise any power to enforce this 9 title’’ and inserting ‘‘may not exercise any rule- 10 11 12 13 14 making, enforcement, or other authority’’. Subtitle C—Policy Enhancements SEC. 731. CONSUMER RIGHT TO FINANCIAL PRIVACY. (a) REQUIREMENT OF THE AGENCY TO OBTAIN PERMISSION BEFORE COLLECTING NONPUBLIC PERSONAL 15 INFORMATION.—Section 1022 of the Consumer Financial 16 Protection Act of 2010 (12 U.S.C. 5512), as amended by 17 section 724(3), is further amended by inserting after sub18 section (b) the following: 19 ‘‘(c) CONSUMER PRIVACY.— 20 ‘‘(1) IN Agency may not re- 21 quest, obtain, access, collect, use, retain, or disclose 22 any nonpublic personal information about a con- 23 sumer unless— 24 ‘‘(A) the Agency clearly and conspicuously 25 discloses to the consumer, in writing or in an G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00400 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 401 1 electronic form, what information will be re- 2 quested, obtained, accessed, collected, used, re- 3 tained, or disclosed; and 4 ‘‘(B) before such information is requested, 5 obtained, accessed, collected, used, retained, or 6 disclosed, the consumer informs the Agency 7 that such information may be requested, ob- 8 tained, accessed, collected, used, retained, or 9 disclosed. 10 ‘‘(2) APPLICATION OF REQUIREMENT TO CON- 11 TRACTORS OF THE AGENCY.—Paragraph 12 apply to any person directed or engaged by the 13 Agency to collect information to the extent such in- 14 formation is being collected on behalf of the Agency. 15 ‘‘(3) DEFINITION (1) shall OF NONPUBLIC PERSONAL IN- 16 FORMATION.—In 17 public personal information’ has the meaning given 18 the term in section 509 of the Gramm-Leach-Bliley 19 Act (15 U.S.C. 6809).’’. 20 (b) REMOVAL 21 FROM THE RIGHT this subsection, the term ‘non- OF TO EXEMPTION FOR THE AGENCY FINANCIAL PRIVACY ACT.—Section 22 1113 of the Right to Financial Privacy Act of 1978 (12 23 U.S.C. 3413) is amended by striking subsection (r). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00401 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 402 1 SEC. 732. REPEAL OF COUNCIL AUTHORITY TO SET ASIDE 2 AGENCY RULES AND REQUIREMENT OF SAFE- 3 TY AND SOUNDNESS CONSIDERATIONS WHEN 4 ISSUING RULES. 5 (a) REPEAL OF AUTHORITY.— 6 (1) IN GENERAL.—Section 1023 of the Con- 7 sumer Financial Protection Act of 2010 (12 U.S.C. 8 5513) is hereby repealed. 9 (2) CONFORMING AMENDMENT.—Section 10 1022(b)(2)(C) of the Consumer Financial Protection 11 Act of 2010 (12 U.S.C. 5512(b)(2)(C)) is amended 12 by striking ‘‘, except that nothing in this clause shall 13 be construed as altering or limiting the procedures 14 under section 1023 that may apply to any rule pre- 15 scribed by the Bureau’’. 16 (3) CLERICAL AMENDMENT.—The table of con- 17 tents under section 1(b) of the Dodd-Frank Wall 18 Street Reform and Consumer Protection Act is 19 amended by striking the item relating to section 20 1023. 21 (b) SAFETY AND SOUNDNESS CHECK.—Section 22 1022(b)(2)(A) of the Consumer Financial Protection Act 23 of 2010 (12 U.S.C. 5512(b)(2)(A)) is amended— 24 (1) in clause (i), by striking ‘‘and’’ at the end; 25 (2) in clause (ii), by adding ‘‘and’’ at the end; 26 and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00402 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 403 1 (3) by adding at the end the following: 2 ‘‘(iii) the impact of such rule on the 3 financial safety or soundness of an insured 4 depository institution;’’. 5 SEC. 733. REMOVAL OF AUTHORITY TO REGULATE SMALL- 6 7 DOLLAR CREDIT. The Consumer Financial Protection Act of 2010 (12 8 U.S.C. 5481 et seq.) is amended— 9 (1) in section 1024(a)(1)— 10 (A) in subparagraph (C), by adding ‘‘or’’ 11 at the end; 12 (B) in subparagraph (D), by striking ‘‘; 13 or’’ and inserting a period; and 14 (C) by striking subparagraph (E); and 15 (2) in section 1027, by adding at the end the 16 following: 17 ‘‘(t) NO AUTHORITY TO REGULATE SMALL-DOLLAR 18 CREDIT.—The Agency may not exercise any rulemaking, 19 enforcement, or other authority with respect to payday 20 loans, vehicle title loans, or other similar loans.’’. 21 SEC. 734. REFORMING INDIRECT AUTO FINANCING GUID- 22 23 24 ANCE. (a) NULLIFICATION ANCE.—Bulletin G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 OF AUTO LENDING GUID- 2013–02 of the Bureau of Consumer Fi- (657255 10) PO 00000 Frm 00403 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 404 1 nancial Protection (published March 21, 2013) shall have 2 no force or effect. 3 (b) GUIDANCE REQUIREMENTS.—Section 1022(b) of 4 the Consumer Financial Protection Act of 2010 (12 5 U.S.C. 5512(b)), as amended by section 721, is further 6 amended by adding at the end the following: 7 ‘‘(8) GUIDANCE 8 ING.—In 9 related to indirect auto financing, the Agency 10 proposing and issuing guidance primarily shall— 11 ‘‘(A) provide for a public notice and com- 12 ment period before issuing the guidance in final 13 form; 14 ‘‘(B) make available to the public, includ- 15 ing on the website of the Agency, all studies, 16 data, methodologies, analyses, and other infor- 17 mation relied on by the Agency in preparing 18 such guidance; 19 ‘‘(C) redact any information that is exempt 20 from disclosure under paragraph (3), (4), (6), 21 (7), or (8) of section 552(b) of title 5, United 22 States Code; 23 ‘‘(D) consult with the Board of Governors 24 of the Federal Reserve System, the Federal G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ON INDIRECT AUTO FINANC- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00404 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 405 1 Trade Commission, and the Department of Jus- 2 tice; and 3 ‘‘(E) conduct a study on the costs and im- 4 pacts of such guidance to consumers and 5 women-owned, minority-owned, veteran-owned, 6 and small businesses, including consumers and 7 small businesses in rural areas.’’. 8 (c) RULE OF CONSTRUCTION.—Nothing in this sec- 9 tion shall be construed to apply to guidance issued by the 10 Consumer Law Enforcement Agency that is not primarily 11 related to indirect auto financing. 12 SEC. 735. PROHIBITION OF GOVERNMENT PRICE CON- 13 14 TROLS FOR PAYMENT CARD TRANSACTIONS. (a) IN GENERAL.—Section 1075 of the Consumer Fi- 15 nancial Protection Act of 2010 is hereby repealed and the 16 provisions of law amended by such section are revived or 17 restored as if such section had not been enacted. 18 (b) CLERICAL AMENDMENT.—The table of contents 19 under section 1(b) of the Dodd-Frank Wall Street Reform 20 and Consumer Protection Act is amended by striking the 21 item relating to section 1075. 22 23 SEC. 736. REMOVAL OF AGENCY UDAAP AUTHORITY. (a) IN GENERAL.—The Consumer Financial Protec- 24 tion Act of 2010 (12 U.S.C. 5481 et seq.) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00405 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 406 1 2 (1) in section 1021(b)(2), by striking ‘‘unfair, deceptive, or abusive acts and practices and’’; 3 (2) by striking section 1031; 4 (3) in section 1036(a)— 5 (A) in paragraph (1)— 6 (i) by striking ‘‘provider’’ and all that 7 follows through ‘‘to offer’’ and inserting 8 ‘‘provider to offer’’; 9 (ii) by striking subparagraph (B); and 10 (B) in paragraph (2)(C), by striking ‘‘; or’’ 11 at the end and inserting a period; and 12 (C) by striking paragraph (3); and 13 (4) in section 1061(b)(5)— 14 (A) in subparagraph (B), by striking 15 clause (ii); 16 (B) by striking subparagraph (D); and 17 (C) by redesignating subparagraph (E) (as 18 amended by section 718(2)) as subparagraph 19 (D); and 20 (5) in section 1076(b)(2), by striking ‘‘deter- 21 mine—’’ and all that follows through ‘‘(B) provide 22 for’’ and inserting ‘‘determine, provide for’’. 23 (b) TELEMARKETING AND CONSUMER FRAUD AND 24 ABUSE PREVENTION ACT.—Section 3(c) of the Tele- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00406 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 407 1 marketing and Consumer Fraud and Abuse Prevention 2 Act (15 U.S.C. 6102) is amended— 3 4 (1) in paragraph (1), by striking ‘‘; and’’ at the end and inserting a period; 5 (2) by striking paragraph (2); and 6 (3) by striking ‘‘subsection (a)—’’ and all that 7 follows through ‘‘(1) shall’’ and inserting ‘‘sub- 8 section (a) shall’’. 9 (c) CLERICAL AMENDMENT.—The table of contents 10 in section 1(b) of the Dodd-Frank Wall Street Reform and 11 Consumer Protection Act is amended by striking the item 12 relating to section 1031. 13 SEC. 737. PRESERVATION OF UDAP AUTHORITY FOR FED- 14 15 ERAL BANKING REGULATORS. (a) IN GENERAL.—Section 18(f) of the Federal 16 Trade Commission Act (15 U.S.C. 57a(f)) is amended to 17 read as follows: 18 ‘‘(f) UNFAIR OR DECEPTIVE ACTS OR PRACTICES BY 19 DEPOSITORY INSTITUTIONS.— 20 ‘‘(1) IN In order to prevent unfair 21 or deceptive acts or practices in or affecting com- 22 merce (including acts or practices which are unfair 23 or deceptive to consumers) by depository institu- 24 tions, each Federal banking regulator shall prescribe 25 regulations to carry out the purposes of this section, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00407 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 408 1 including regulations defining with specificity such 2 unfair or deceptive acts or practices, and containing 3 requirements prescribed for the purpose of pre- 4 venting such acts or practices. 5 ‘‘(2) PROMULGATING 6 REGULATIONS.—Whenever 7 scribes a rule under subsection (a)(1)(B), then with- 8 in 60 days after such rule takes effect each Federal 9 banking regulator shall promulgate substantially 10 similar regulations prohibiting acts or practices of 11 depository institutions which are substantially simi- 12 lar to those prohibited by rules of the Commission 13 and which impose substantially similar requirements, 14 unless— the Commission pre- 15 ‘‘(A) the Federal banking regulator finds 16 that such acts or practices of depository institu- 17 tions are not unfair or deceptive; or 18 ‘‘(B) the Board of Governors of the Fed- 19 eral Reserve System finds that implementation 20 of similar regulations with respect to depository 21 institutions would seriously conflict with essen- 22 tial monetary and payments systems policies of 23 such Board, and publishes any such finding, 24 and the reasons therefor, in the Federal Reg- 25 ister. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 SUBSTANTIALLY SIMILAR 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00408 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 409 1 ‘‘(3) ENFORCEMENT.— 2 ‘‘(A) IN with regu- 3 lations prescribed under this subsection shall be 4 enforced— 5 ‘‘(i) under section 8 of the Federal 6 Deposit Insurance Act, with respect to a 7 depository institution other than a Federal 8 credit union; and 9 ‘‘(ii) under sections 120 and 206 of 10 the Federal Credit Union Act, with respect 11 to a Federal credit union. 12 ‘‘(B) DEEMING OF VIOLATION.—For the 13 purpose of the exercise by a Federal banking 14 regulator of the regulator’s powers under any 15 Act referred to in subparagraph (A), a violation 16 of any regulation prescribed under this sub- 17 section shall be deemed to be a violation of a 18 requirement imposed under that Act. 19 ‘‘(C) ENFORCEMENT THROUGH ANY EXIST- 20 ING AUTHORITY.—In 21 under any provision of law specifically referred 22 to in subparagraph (A), each Federal banking 23 regulator may exercise, for the purpose of en- 24 forcing compliance with any regulation pre- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Compliance 15:00 Apr 19, 2017 Jkt 000000 addition to its powers (657255 10) PO 00000 Frm 00409 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 410 1 scribed under this subsection, any other author- 2 ity conferred on the regulator by law. 3 ‘‘(4) RULE authority 4 of the Board of Governors of the Federal Reserve 5 System to issue regulations under this subsection 6 does not impair the authority of any other Federal 7 banking regulator to make rules respecting the regu- 8 lator’s own procedures in enforcing compliance with 9 regulations prescribed under this subsection. 10 ‘‘(5) REPORT TO CONGRESS.—Each Federal 11 banking regulator exercising authority under this 12 subsection shall transmit to the Congress each year 13 a detailed report on its activities under this sub- 14 section during the preceding calendar year. 15 ‘‘(6) DEFINITIONS.—For purposes of this Act: 16 ‘‘(A) BANK.—The term ‘bank’ means— 17 ‘‘(i) national banks and Federal 18 branches and Federal agencies of foreign 19 banks; 20 ‘‘(ii) member banks of the Federal 21 Reserve 22 banks), branches and agencies of foreign 23 banks (other than Federal branches, Fed- 24 eral agencies, and insured State branches 25 of foreign banks), commercial lending com- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF CONSTRUCTION.—The 15:00 Apr 19, 2017 Jkt 000000 System (other than national (657255 10) PO 00000 Frm 00410 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 411 1 panies owned or controlled by foreign 2 banks, and organizations operating under 3 section 25 or 25A of the Federal Reserve 4 Act; and 5 ‘‘(iii) banks insured by the Federal 6 Deposit Insurance Corporation (other than 7 banks referred to in clause (i) or (ii) and 8 insured State branches of foreign banks. 9 ‘‘(B) INSTITUTION.—The 10 term ‘depository institution’ means a bank, a 11 savings and loan institution, or a Federal credit 12 union. 13 ‘‘(C) FEDERAL 14 BANKING REGULATOR.— The term ‘Federal banking regulator’— 15 ‘‘(i) has the meaning given the term 16 ‘appropriate 17 under section 3 of the Federal Deposit In- 18 surance Act; and Federal banking agency’ 19 ‘‘(ii) means the National Credit Union 20 Administration, in the case of a Federal 21 credit union. 22 ‘‘(D) FEDERAL CREDIT UNION.—The term 23 ‘Federal credit union’ has the same meaning as 24 in section 101 of the Federal Credit Union Act. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 DEPOSITORY 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00411 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 412 1 ‘‘(E) SAVINGS AND LOAN INSTITUTION.— 2 The term ‘savings and loan institution’ has the 3 same meaning as in section 3 of the Federal 4 Deposit Insurance Act. 5 ‘‘(F) OTHER TERMS.—The terms used in 6 this paragraph that are not defined in this Act 7 or otherwise defined in section 3(s) of the Fed- 8 eral Deposit Insurance Act shall have the mean- 9 ing given to them in section 1(b) of the Inter- 10 national Banking Act of 1978.’’. 11 (b) CONFORMING AMENDMENTS.—The Federal 12 Trade Commission Act (15 U.S.C. 41 et seq.) is amend13 ed— 14 (1) by striking ‘‘section 18(f)(3) (15 U.S.C. 15 57a(f)(3)), a Federal credit union described in sec- 16 tion 18(f)(4) (15 U.S.C. 57a(f)(4))’’ and inserting 17 ‘‘section 18(f), a Federal credit union described in 18 section 18(f)’’; 19 (2) by striking ‘‘section 18(f)(3) of the Federal 20 Trade Commission Act (15 U.S.C. 57a(f)(3)), or a 21 Federal credit union described in section 18(f)(4) of 22 the Federal Trade Commission Act (15 U.S.C. 23 57a(f)(4))’’ and inserting ‘‘18(f), or a Federal credit 24 union described in section 18(f)’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00412 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 413 1 2 (3) by striking ‘‘section 18(f)(2)’’ each place such term appears and inserting ‘‘section 18(f)’’; 3 (4) by striking ‘‘section 18(f)(3)’’ each place 4 such term appears and inserting ‘‘section 18(f)’’; 5 and 6 (5) by striking ‘‘section 18(f)(4)’’ each place 7 such term appears and inserting ‘‘section 18(f)’’. 8 SEC. 738. REPEAL OF AUTHORITY TO RESTRICT ARBITRA- 9 10 TION. (a) IN GENERAL.—Section 1028 of the Consumer Fi- 11 nancial Protection Act of 2010 (12 U.S.C. 5518) is hereby 12 repealed. 13 (b) CLERICAL AMENDMENT.—The table of contents 14 under section 1(b) of the Dodd-Frank Wall Street Reform 15 and Consumer Protection Act is amended by striking the 16 item relating to section 1028. 17 18 19 20 21 22 TITLE VIII—CAPITAL MARKETS IMPROVEMENTS Subtitle A—SEC Reform, Restructuring, and Accountability SEC. 801. AUTHORIZATION OF APPROPRIATIONS. Section 35 of the Securities Exchange Act of 1934 23 (15 U.S.C. 78kk) is amended by striking paragraphs (1) 24 through (5) and inserting the following: 25 ‘‘(1) for fiscal year 2017, $1,555,000,000; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00413 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 414 1 ‘‘(2) for fiscal year 2018, $1,605,000,000; 2 ‘‘(3) for fiscal year 2019, $1,655,000,000; 3 ‘‘(4) for fiscal year 2020, $1,705,000,000; 4 ‘‘(5) for fiscal year 2021, $1,755,000,000; and 5 ‘‘(6) for fiscal year 2022, $1,805,000,000.’’. 6 SEC. 802. REPORT ON UNOBLIGATED APPROPRIATIONS. 7 Section 23 of the Securities Exchange Act of 1934 8 (15 U.S.C. 78w) is amended by adding at the end the fol9 lowing: 10 ‘‘(e) REPORT ON UNOBLIGATED APPROPRIATIONS.— 11 If, at the end of any fiscal year, there remain unobligated 12 any funds that were appropriated to the Commission for 13 such fiscal year, the Commission shall, not later than 30 14 days after the last day of such fiscal year, submit to the 15 Committee on Financial Services and the Committee on 16 Appropriations of the House of Representatives and the 17 Committee on Banking, Housing, and Urban Affairs and 18 the Committee on Appropriations of the Senate a report 19 stating the amount of such unobligated funds. If there is 20 any material change in the amount stated in the report, 21 the Commission shall, not later than 7 days after deter22 mining the amount of the change, submit to such commit23 tees a supplementary report stating the amount of and 24 reason for the change.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00414 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 415 1 SEC. 803. SEC RESERVE FUND ABOLISHED. 2 Section 4 of the Securities Exchange Act of 1934 (15 3 U.S.C. 78d) is amended by striking subsection (i). 4 SEC. 804. FEES TO OFFSET APPROPRIATIONS. 5 6 (a) SECTION 31 OF THE SECURITIES EXCHANGE ACT OF 1934.—Section 31 of the Securities Exchange Act of 7 1934 (15 U.S.C. 78ee) is amended— 8 9 10 (1) by striking subsection (a) and inserting the following: ‘‘(a) COLLECTION.—The Commission shall, in ac- 11 cordance with this section, collect transaction fees and as12 sessments.’’; 13 (2) in subsection (i)— 14 (A) in paragraph (1)(A), by inserting ‘‘ex- 15 cept as provided in paragraph (2),’’ before 16 ‘‘shall’’; and 17 (B) by striking paragraph (2) and insert- 18 ing the following: 19 ‘‘(2) GENERAL fees collected 20 for a fiscal year pursuant to this section, sections 21 13(e) and 14(g) of this title, and section 6(b) of the 22 Securities Act of 1933 in excess of the amount pro- 23 vided in appropriation Acts for collection for such 24 fiscal year pursuant to such sections shall be depos- 25 ited and credited as general revenue of the Treas- 26 ury.’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REVENUE.—Any 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00415 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 416 1 (3) in subsection (j)— 2 (A) by striking ‘‘the regular appropriation 3 to the Commission by Congress for such fiscal 4 year’’ each place it appears and inserting ‘‘the 5 target offsetting collection amount for such fis- 6 cal year’’; and 7 (B) in paragraph (2), by striking ‘‘sub- 8 section (l)’’ and inserting ‘‘subsection (l)(2)’’; 9 and 10 (4) by striking subsection (l) and inserting the 11 following: 12 ‘‘(l) DEFINITIONS.—For purposes of this section: 13 ‘‘(1) 14 AMOUNT.—The 15 for a fiscal year is— 16 OFFSETTING COLLECTION target offsetting collection amount ‘‘(A) for fiscal year 2017, $1,400,000,000; 17 and 18 ‘‘(B) for each succeeding fiscal year, the 19 target offsetting collection amount for the prior 20 fiscal year, adjusted by the rate of inflation. 21 ‘‘(2) BASELINE ESTIMATE OF THE AGGREGATE 22 DOLLAR AMOUNT OF SALES.—The 23 of the aggregate dollar amount of sales for any fiscal 24 year is the baseline estimate of the aggregate dollar 25 amount of sales of securities (other than bonds, de- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TARGET 15:00 Apr 19, 2017 Jkt 000000 baseline estimate (657255 10) PO 00000 Frm 00416 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 417 1 bentures, other evidences of indebtedness, security 2 futures products, and options on securities indexes 3 (excluding a narrow-based security index)) to be 4 transacted on each national securities exchange and 5 by or through any member of each national securi- 6 ties association (otherwise than on a national securi- 7 ties exchange) during such fiscal year as determined 8 by the Commission, after consultation with the Con- 9 gressional Budget Office and the Office of Manage- 10 ment and Budget, using the methodology required 11 for making projections pursuant to section 257 of 12 the Balanced Budget and Emergency Deficit Control 13 Act of 1985.’’. 14 (b) SECTION 6(b) OF THE SECURITIES ACT OF 15 1933.—Section 6(b) of the Securities Act of 1933 (15 16 U.S.C. 77f(b)) is amended— 17 (1) by striking ‘‘target fee collection amount’’ 18 each place it appears and inserting ‘‘target offsetting 19 collection amount’’; 20 (2) in paragraph (4), by striking the last sen- 21 tence and inserting the following: ‘‘Subject to para- 22 graphs (6)(B) and (7), an adjusted rate prescribed 23 under paragraph (2) shall take effect on the later 24 of— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00417 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 418 1 ‘‘(A) the first day of the fiscal year to 2 which such rate applies; or 3 ‘‘(B) five days after the date on which a 4 regular appropriation to the Commission for 5 such fiscal year is enacted.’’; 6 (3) in paragraph (5), by inserting ‘‘of the Secu- 7 rities Exchange Act of 1934’’ after ‘‘sections 13(e) 8 and 14(g)’’; 9 10 (4) by redesignating paragraph (6) as paragraph (8); 11 12 (5) by inserting after paragraph (5) the following: 13 ‘‘(6) OFFSETTING col- 14 lected pursuant to this subsection for any fiscal 15 year— 16 ‘‘(A) except as provided in section 31(i)(2) 17 of the Securities Exchange Act of 1934, shall 18 be deposited and credited as offsetting collec- 19 tions to the account providing appropriations to 20 the Commission; and 21 ‘‘(B) except as provided in paragraph (7), 22 shall not be collected for any fiscal year except 23 to the extent provided in advance in appropria- 24 tion Acts. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COLLECTIONS.—Fees 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00418 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 419 1 ‘‘(7) LAPSE OF APPROPRIATION.—If on the 2 first day of a fiscal year a regular appropriation to 3 the Commission has not been enacted, the Commis- 4 sion shall continue to collect fees (as offsetting col- 5 lections) under this subsection at the rate in effect 6 during the preceding fiscal year, until 5 days after 7 the date such a regular appropriation is enacted.’’; 8 and 9 (6) in subparagraph (A) of paragraph (8) (as 10 so redesignated)— 11 (A) by striking the subparagraph heading 12 and inserting ‘‘TARGET 13 TION AMOUNT.—’’; OFFSETTING COLLEC- and 14 (B) in the heading of the right column of 15 the table, by striking ‘‘fee’’ and inserting ‘‘off- 16 setting’’. 17 (c) SECTION 13(e) 18 ACT OF OF THE SECURITIES EXCHANGE 1934.—Section 13(e) of the Securities Exchange 19 Act of 1934 (15 U.S.C. 78m(e)) is amended— 20 21 (1) by striking paragraph (5) and inserting the following: 22 ‘‘(5) OFFSETTING col- 23 lected pursuant to this subsection for any fiscal 24 year— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COLLECTIONS.—Fees 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00419 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 420 1 ‘‘(A) except as provided in section 31(i)(2), 2 shall be deposited and credited as offsetting col- 3 lections to the account providing appropriations 4 to the Commission; and 5 ‘‘(B) except as provided in paragraph (8), 6 shall not be collected for any fiscal year except 7 to the extent provided in advance in appropria- 8 tions Acts.’’; and 9 (2) by adding at the end the following: 10 ‘‘(8) LAPSE OF APPROPRIATION.—If on the 11 first day of a fiscal year a regular appropriation to 12 the Commission has not been enacted, the Commis- 13 sion shall continue to collect fees (as offsetting col- 14 lections) under this subsection at the rate in effect 15 during the preceding fiscal year, until 5 days after 16 the date such a regular appropriation is enacted.’’. 17 (d) SECTION 14(g) 18 ACT OF OF THE SECURITIES EXCHANGE 1934.—Section 14(g) of the Securities Exchange 19 Act of 1934 (15 U.S.C. 78n(g)) is amended— 20 21 (1) by striking paragraph (5) and inserting the following: 22 ‘‘(5) OFFSETTING col- 23 lected pursuant to this subsection for any fiscal 24 year— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 COLLECTIONS.—Fees 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00420 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 421 1 ‘‘(A) except as provided in section 31(i)(2), 2 shall be deposited and credited as offsetting col- 3 lections to the account providing appropriations 4 to the Commission; and 5 ‘‘(B) except as provided in paragraph (8), 6 shall not be collected for any fiscal year except 7 to the extent provided in advance in appropria- 8 tions Acts.’’; 9 (2) by redesignating paragraph (8) as para- 10 graph (9); and 11 12 (3) by inserting after paragraph (7) the following: 13 ‘‘(8) LAPSE OF APPROPRIATION.—If on the 14 first day of a fiscal year a regular appropriation to 15 the Commission has not been enacted, the Commis- 16 sion shall continue to collect fees (as offsetting col- 17 lections) under this subsection at the rate in effect 18 during the preceding fiscal year, until 5 days after 19 the date such a regular appropriation is enacted.’’. 20 (e) EFFECTIVE DATE.—The amendments made by 21 this section— 22 (1) shall apply beginning on October 1, 2017, 23 except that for fiscal year 2018, the Securities and 24 Exchange Commission shall publish— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00421 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 422 1 (A) the rates established under section 31 2 of the Securities Exchange Act of 1934, as 3 amended by this section, not later than 30 days 4 after the date on which an Act making a reg- 5 ular appropriation to the Commission for fiscal 6 year 2018 is enacted; and 7 (B) the rate established under section 6(b) 8 of the Securities Act of 1933, as amended by 9 this section, not later than August 31, 2017; 10 and 11 (2) shall not apply with respect to fees for any 12 13 fiscal year before fiscal year 2018. SEC. 805. COMMISSION RELOCATION FUNDING PROHIBI- 14 15 TION. The Securities and Exchange Commission may not 16 obligate any funds for the purpose of relocating the head17 quarters of the Commission. 18 19 SEC. 806. IMPLEMENTATION OF RECOMMENDATIONS. Section 967 of the Dodd-Frank Wall Street Reform 20 and Consumer Protection Act is amended by adding at 21 the end the following: 22 ‘‘(d) IMPLEMENTATION OF RECOMMENDATIONS.— 23 Not later than 6 months after the date of enactment of 24 this subsection, the Securities and Exchange Commission 25 shall complete an implementation of the recommendations G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00422 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 423 1 contained in the report of the independent consultant 2 issued under subsection (b) on March 10, 2011. To the 3 extent that implementation of certain recommendations 4 requires legislation, the Commission shall submit a report 5 to Congress containing a request for legislation granting 6 the Commission such authority it needs to fully implement 7 such recommendations.’’. 8 SEC. 807. OFFICE OF CREDIT RATINGS TO REPORT TO THE 9 10 DIVISION OF TRADING AND MARKETS. Section 15E(p)(1) of the Securities Exchange Act of 11 1934 (15 U.S.C. 78o–7(p)(1)) is amended— 12 (1) in subparagraph (A), by striking ‘‘within 13 the Commission’’ and inserting ‘‘within the Division 14 of Trading and Markets’’; and 15 (2) in subparagraph (B), by striking ‘‘report to 16 the Chairman’’ and inserting ‘‘report to the head of 17 the Division of Trading and Markets’’. 18 SEC. 808. OFFICE OF MUNICIPAL SECURITIES TO REPORT 19 TO THE DIVISION OF TRADING AND MAR- 20 KETS. 21 Section 979 of the Dodd-Frank Wall Street Reform 22 and Consumer Protection Act (15 U.S.C. 78o–4a) is 23 amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00423 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 424 1 (1) in subsection (a), by inserting ‘‘, within the 2 Division of Trading and Markets,’’ after ‘‘There 3 shall be in the Commission’’; and 4 (2) in subsection (b), by striking ‘‘report to the 5 Chairman’’ and inserting ‘‘report to the head of the 6 Division of Trading and Markets’’. 7 8 SEC. 809. INDEPENDENCE OF COMMISSION OMBUDSMAN. Section 4(g)(8) of the Securities Exchange Act of 9 1934 (15 U.S.C. 78d(g)(8)) is amended— 10 (1) in subparagraph (A), by striking ‘‘the In- 11 vestor Advocate shall appoint’’ and all that follows 12 through ‘‘Investor Advocate’’ and inserting ‘‘the 13 Chairman shall appoint an Ombudsman, who shall 14 report to the Commission’’; and 15 (2) in subparagraph (D)— 16 (A) by striking ‘‘report to the Investor Ad- 17 vocate’’ and inserting ‘‘report to the Commis- 18 sion’’; and 19 20 (B) by striking the last sentence. SEC. 810. INVESTOR ADVISORY COMMITTEE IMPROVE- 21 22 MENTS. Section 39 of the Securities Exchange Act of 1934 23 (15 U.S.C. 78pp) is amended— 24 (1) in subsection (a)(2)(B), by striking ‘‘sub- 25 mit’’ and inserting, ‘‘in consultation with the Small G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00424 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 425 1 Business Capital Formation Advisory Committee es- 2 tablished under section 40, submit’’; 3 (2) in subsection (b)— 4 (A) in paragraph (1)— 5 (i) in subparagraph (C), by striking 6 ‘‘and’’; 7 (ii) in subparagraph (D)(iv), by strik- 8 ing the period at the end and inserting ‘‘; 9 and’’; and 10 (iii) by adding at the end the fol- 11 lowing: 12 ‘‘(E) a member of the Small Business Cap- 13 ital Formation Advisory Committee who shall 14 be a nonvoting member.’’; 15 (B) by amending paragraph (2) to read as 16 follows: 17 ‘‘(2) TERM.— 18 ‘‘(A) LENGTH 19 THE COMMITTEE.—Each 20 mittee appointed under paragraph (1), other 21 than the Investor Advocate, shall serve for a 22 term of 4 years. 23 ‘‘(B) LIMITATION member of the Com- ON MULTIPLE TERMS.— 24 A member of the Committee may not serve for 25 more than one term, except for the Investor Ad- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF TERM FOR MEMBERS OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00425 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 426 1 vocate, a representative of State securities com- 2 missions, and the member of the Small Busi- 3 ness Capital Formation Advisory Committee.’’; 4 and 5 (C) in paragraph (3), by striking ‘‘para- 6 graph (1)(B)’’ and inserting ‘‘paragraph (1)’’; 7 (3) in subsection (c), by amending paragraph 8 (2) to read as follows: 9 ‘‘(2) TERM.— 10 ‘‘(A) LENGTH OF TERM.—Each member 11 elected under paragraph (1) shall serve for a 12 term of 3 years in the capacity for which the 13 member was elected under paragraph (1). 14 ‘‘(B) LIMITATION ON MULTIPLE TERMS.— 15 A member elected under paragraph (1) may not 16 serve for more than one term in the capacity 17 for which the member was elected under para- 18 graph (1).’’; and 19 (4) by striking subsections (i) and (j). 20 21 SEC. 811. DUTIES OF INVESTOR ADVOCATE. Section 4(g)(4) of the Securities Exchange Act of 22 1934 (15 U.S.C. 78d(g)(4)) is amended— 23 (1) in subparagraph (D)(ii), by striking ‘‘and’’; 24 (2) in subparagraph (E), by striking the period 25 at the end and inserting a semicolon; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00426 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 427 1 (3) by adding at the end the following: 2 ‘‘(F) not take a position on any legislation 3 pending before Congress other than a legislative 4 change proposed by the Investor Advocate pur- 5 suant to subparagraph (E); 6 ‘‘(G) consult with the Advocate for Small 7 Business Capital Formation on proposed rec- 8 ommendations made under subparagraph (E); 9 and 10 ‘‘(H) advise the Advocate for Small Busi- 11 ness Capital Formation on issues related to 12 small business investors.’’. 13 SEC. 812. ELIMINATION OF EXEMPTION OF SMALL BUSI- 14 NESS CAPITAL FORMATION ADVISORY COM- 15 MITTEE 16 MITTEE ACT. 17 FROM FEDERAL ADVISORY COM- Section 40 of the Securities Exchange Act of 1934 18 (as added by Public Law 114–284) is amended by striking 19 subsection (h). 20 21 SEC. 813. INTERNAL RISK CONTROLS. The Securities Exchange Act of 1934 (15 U.S.C. 78a 22 et seq.) is amended— 23 24 (1) by inserting after section 4G, as added by this Act, the following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00427 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 428 1 2 ‘‘SEC. 4H. INTERNAL RISK CONTROLS. ‘‘(a) IN GENERAL.—Each of the following entities, in 3 consultation with the Chief Economist, shall develop com4 prehensive internal risk control mechanisms to safeguard 5 and govern the storage of all market data by such entity, 6 all market data sharing agreements of such entity, and 7 all academic research performed at such entity using mar8 ket data: 9 ‘‘(1) The Commission. 10 ‘‘(2) Each national security association required 11 to register under section 15A. 12 ‘‘(b) CONSOLIDATED AUDIT TRAIL.—The Commis- 13 sion may not approve a national market system plan pur14 suant to part 242.613 of title 17, Code of Federal Regula15 tions (or any successor regulation), unless the operator of 16 the consolidated audit trail created by such plan has devel17 oped, in consultation with the Chief Economist, com18 prehensive internal risk control mechanisms to safeguard 19 and govern the storage of all market data by such oper20 ator, all market data sharing agreements of such operator, 21 and all academic research performed at such operator 22 using market data.’’; 23 (2) in section 3(a), by redesignating the second 24 paragraph (80) (relating to funding portals) as 25 paragraph (81); and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00428 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 429 1 2 (3) in section 3(a), by adding at the end the following: 3 ‘‘(82) CHIEF ECONOMIST.—The term ‘Chief 4 Economist’ means the Director of the Division of 5 Economic and Risk Analysis, or an employee of the 6 Commission with comparable authority, as deter- 7 mined by the Commission.’’. 8 SEC. 814. APPLICABILITY OF NOTICE AND COMMENT RE- 9 QUIREMENTS OF THE ADMINISTRATIVE PRO- 10 CEDURE ACT TO GUIDANCE VOTED ON BY 11 THE COMMISSION. 12 The Securities Exchange Act of 1934 (15 U.S.C. 78a 13 et seq.) is amended by inserting after section 4H, as added 14 by this Act, the following: 15 ‘‘SEC. 4I. APPLICABILITY OF NOTICE AND COMMENT RE- 16 QUIREMENTS OF THE ADMINISTRATIVE PRO- 17 CEDURE ACT TO GUIDANCE VOTED ON BY 18 THE COMMISSION. 19 ‘‘The notice and comment requirements of section 20 553 of title 5, United States Code, shall also apply with 21 respect to any Commission statement or guidance, includ22 ing interpretive rules, general statements of policy, or 23 rules of Commission organization, procedure, or practice, 24 that has the effect of implementing, interpreting, or pre- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00429 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 430 1 scribing law or policy and that is voted on by the Commis2 sion.’’. 3 4 SEC. 815. LIMITATION ON PILOT PROGRAMS. (a) IN GENERAL.—Section 4 of the Securities Ex- 5 change Act of 1934 (15 U.S.C. 78d), as amended by sec6 tion 371(e), is further amended by adding at the end the 7 following: 8 ‘‘(k) LIMITATION ON PILOT PROGRAMS.— 9 ‘‘(1) IN pilot program estab- 10 lished by self-regulatory organizations, either indi- 11 vidually or jointly, and filed with the Commission, 12 including under section 11A or 19, shall terminate 13 after the end of the 5-year period beginning on the 14 date that the Commission approved such program, 15 unless the Commission issues a rule to permanently 16 continue such program or approves such program on 17 a permanent basis. 18 ‘‘(2) EXTENSION.—With respect to a particular 19 pilot program described under paragraph (1), the 20 Commission may extend the 5-year period described 21 under such paragraph for an additional 3 years if 22 the Commission determines such extension is nec- 23 essary or appropriate in the public interest or for 24 the protection of investors. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Any 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00430 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 431 1 ‘‘(3) LACK OF STATUTORY AUTHORITY.—If, 2 with respect to a pilot program described under 3 paragraph (1), the Commission determines that the 4 pilot program should continue permanently, but the 5 Commission lacks sufficient statutory authority to 6 permanently continue the program, the Commission 7 shall, not later than 1 year before such pilot pro- 8 gram is scheduled to terminate pursuant to para- 9 graph (1), notify the Committee on Financial Serv- 10 ices of the House of Representatives and the Com- 11 mittee on Banking, Housing, and Urban Affairs of 12 the Senate that the Commission believes the pro- 13 gram should continue permanently but does not have 14 sufficient statutory authority to continue the pro- 15 gram.’’. 16 (b) TREATMENT OF EXISTING PILOT PROGRAMS.— 17 For purposes of section 4(k) of Securities Exchange Act 18 of 1934, as added by subsection (a), the date on which 19 the Commission approved a pilot program that was in ex20 istence on the date of the enactment of this Act shall be 21 deemed to be the date of the enactment of this Act. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00431 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 432 1 SEC. 816. PROCEDURE FOR OBTAINING CERTAIN INTEL- 2 3 LECTUAL PROPERTY. (a) PERSONS UNDER SECURITIES ACT OF 1933.— 4 Section 8 of the Securities Act of 1933 (15 U.S.C. 77h) 5 is amended by adding at the end the following: 6 7 ‘‘(g) PROCEDURE LECTUAL FOR OBTAINING CERTAIN INTEL- PROPERTY.—The Commission is not authorized 8 to compel under this title a person to produce or furnish 9 source code, including algorithmic trading source code or 10 similar intellectual property, to the Commission unless the 11 Commission first issues a subpoena.’’. 12 (b) PERSONS UNDER THE SECURITIES EXCHANGE 13 ACT OF 1934.—Section 23 of the Securities Exchange Act 14 of 1934 (15 U.S.C. 78w) is amended by adding at the 15 end the following: 16 17 ‘‘(e) PROCEDURE LECTUAL FOR OBTAINING CERTAIN INTEL- PROPERTY.—The Commission is not authorized 18 to compel under this title a person to produce or furnish 19 source code, including algorithmic trading source code or 20 similar intellectual property, to the Commission unless the 21 Commission first issues a subpoena.’’. 22 (c) INVESTMENT COMPANIES.—Section 31 of the In- 23 vestment Company Act of 1940 (15 U.S.C. 80a–30) is 24 amended by adding at the end the following: 25 26 ‘‘(e) PROCEDURE LECTUAL G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 FOR OBTAINING CERTAIN INTEL- PROPERTY.—The Commission is not authorized (657255 10) PO 00000 Frm 00432 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 433 1 to compel under this title an investment company to 2 produce or furnish source code, including algorithmic trad3 ing source code or similar intellectual property, to the 4 Commission unless the Commission first issues a sub5 poena.’’. 6 (d) INVESTMENT ADVISERS.—Section 204 of the In- 7 vestment Advisers Act of 1940 (15 U.S.C. 80b–4) is 8 amended— 9 (1) by adding at the end the following: 10 11 ‘‘(f) PROCEDURE LECTUAL FOR OBTAINING CERTAIN INTEL- PROPERTY.—The Commission is not authorized 12 to compel under this title an investment adviser to produce 13 or furnish source code, including algorithmic trading 14 source code or similar intellectual property, to the Com15 mission unless the Commission first issues a subpoena.’’; 16 and 17 18 19 20 (2) in the second subsection (d), by striking ‘‘(d)’’ and inserting ‘‘(e)’’. SEC. 817. PROCESS FOR CLOSING INVESTIGATIONS. (a) IN GENERAL.—Not later than 180 days after the 21 date of the enactment of this Act, the Securities and Ex22 change Commission shall establish a process for closing 23 investigations (including preliminary or informal inves24 tigations) that is designed to ensure that the Commission, 25 in a timely manner— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00433 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 434 1 (1) makes a determination of whether or not to 2 institute an administrative or judicial action in a 3 matter or refer the matter to the Attorney General 4 for potential criminal prosecution; and 5 (2) if the Commission determines not to insti- 6 tute such an action or refer the matter to the Attor- 7 ney General, informs the persons who are the sub- 8 ject of the investigation that the investigation is 9 closed. 10 (b) RULE OF CONSTRUCTION.—Nothing in this sec- 11 tion shall be construed to affect the authority of the Com12 mission to re-open an investigation if the Commission ob13 tains new evidence after the investigation is closed, subject 14 to any applicable statute of limitations. 15 16 SEC. 818. ENFORCEMENT OMBUDSMAN. (a) IN GENERAL.—Section 4 of the Securities Ex- 17 change Act of 1934 (15 U.S.C. 78d), as amended by sec18 tion 803, is further amended by adding at the end the 19 following: 20 ‘‘(i) ENFORCEMENT OMBUDSMAN.— 21 ‘‘(1) ESTABLISHMENT.—The Commission shall 22 have an Enforcement Ombudsman, who shall be ap- 23 pointed by and report directly to the Commission. 24 25 ‘‘(2) DUTIES.—The Enforcement Ombudsman shall— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00434 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 435 1 ‘‘(A) act as a liaison between the Commis- 2 sion and any person who is the subject of an in- 3 vestigation (including a preliminary or informal 4 investigation) by the Commission or an admin- 5 istrative or judicial action brought by the Com- 6 mission in resolving problems that such persons 7 may have with the Commission or the conduct 8 of Commission staff; and 9 ‘‘(B) establish safeguards to maintain the 10 confidentiality of communications between the 11 persons described in subparagraph (A) and the 12 Enforcement Ombudsman. 13 ‘‘(3) LIMITATION.—In carrying out the duties 14 of the Enforcement Ombudsman under paragraph 15 (2), the Enforcement Ombudsman shall utilize per- 16 sonnel of the Commission to the extent practicable. 17 Nothing in this subsection shall be construed as re- 18 placing, altering, or diminishing the activities of any 19 ombudsman or similar office of any other agency. 20 ‘‘(4) REPORT.—The Enforcement Ombudsman 21 shall submit to the Commission and to the Com- 22 mittee on Financial Services of the House of Rep- 23 resentatives and the Committee on Banking, Hous- 24 ing, and Urban Affairs of the Senate an annual re- 25 port that describes the activities and evaluates the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00435 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 436 1 effectiveness of the Enforcement Ombudsman during 2 the preceding year.’’. 3 (b) DEADLINE FOR INITIAL APPOINTMENT.—The 4 Securities and Exchange Commission shall appoint the ini5 tial Enforcement Ombudsman under subsection (i) of sec6 tion 4 of the Securities Exchange Act of 1934, as added 7 by subsection (a), not later than 180 days after the date 8 of the enactment of this Act. 9 10 SEC. 819. ADEQUATE NOTICE. Section 21 of the Securities Exchange Act of 1934 11 (15 U.S.C. 78u) is amended by adding at the end the fol12 lowing: 13 14 ‘‘(k) ADEQUATE NOTICE REQUIRED BEFORE BRINGING AN 15 ‘‘(1) IN GENERAL.—No person shall be subject 16 to an enforcement action by the Commission for an 17 alleged violation of the securities laws or the rules 18 and regulations issued thereunder if such person did 19 not have adequate notice of such law, rule, or regu- 20 lation. 21 ‘‘(2) PUBLISHING OF INTERPRETATION 22 DEEMED ADEQUATE NOTICE.—With 23 enforcement action, adequate notice of a securities 24 law or a rule or regulation issued thereunder shall 25 be deemed to have been provided to a person if the G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ENFORCEMENT ACTION.— 15:00 Apr 19, 2017 Jkt 000000 respect to an (657255 10) PO 00000 Frm 00436 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 437 1 Commission approved a statement or guidance, in 2 accordance with Section 4I, with respect to the con- 3 duct that is the subject of the enforcement action, 4 prior to the time that the person engaged in the con- 5 duct that is the subject of the enforcement action.’’. 6 SEC. 820. ADVISORY COMMITTEE ON COMMISSION’S EN- 7 8 FORCEMENT POLICIES AND PRACTICES. (a) ESTABLISHMENT.—Not later than 6 months after 9 the date of the enactment of this Act, the Chairman shall 10 establish an advisory committee on the Commission’s en11 forcement policies and practices (in this section referred 12 to as the ‘‘Committee’’). 13 (b) DUTIES.— 14 (1) ANALYSIS 15 (A) IN GENERAL.—The Committee shall 16 conduct an analysis of the policies and practices 17 of the Commission relating to the enforcement 18 of the securities laws and make recommenda- 19 tions to the Commission regarding changes to 20 such policies and practices. 21 (B) SPECIFIC MATTERS INCLUDED.—In 22 carrying out subparagraph (A), the Committee 23 shall analyze and make recommendations to the 24 Commission regarding matters including the 25 following: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND RECOMMENDATIONS.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00437 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 438 1 (i) How the Commission’s enforce- 2 ment objectives and strategies may be 3 more effective. 4 (ii) The Commission’s enforcement 5 practices and procedures from the point of 6 view of due process, the relationship of en- 7 forcement action to notice of legal require- 8 ments, the attribution of responsibility for 9 violations, and the protection of reputation 10 and rights of privacy. 11 (iii) The Commission’s enforcement 12 policies and practices in light of its statu- 13 tory responsibility to protect investors, 14 maintain fair, orderly, and efficient mar- 15 kets, and facilitate capital formation. 16 (iv) The appropriate blend of regula- 17 tion, publicity, and formal enforcement ac- 18 tion and on methods of furthering vol- 19 untary compliance. 20 (v) Criteria for the selection and dis- 21 position of enforcement actions, the ade- 22 quacy of sanctions authorized by law, and 23 the suitability and effectiveness of sanc- 24 tions imposed by the Commission pro- 25 ceedings. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00438 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 439 1 (2) REPORT.—Not later than 1 year after the 2 establishment of the Committee under subsection 3 (a), the Committee shall submit to the Commission 4 and the appropriate congressional committees a re- 5 port containing the results of the analysis and the 6 recommendations required by paragraph (1)(A). 7 (c) MEMBERSHIP.— 8 (1) NUMBER AND APPOINTMENT.—The Com- 9 mittee shall be composed of not less than 3 and not 10 greater than 7 members appointed by the Chairman. 11 (2) CHAIRPERSON.—The Chairperson of the 12 Committee shall be designated by the Chairman at 13 the time of appointment of the members. 14 (d) SUPPORT.—The Commission shall provide the 15 Committee with the administrative, professional, and tech16 nical support required by the Committee to carry out its 17 responsibilities under this section. 18 (e) TERMINATION OF COMMITTEE.—The Committee 19 established by subsection (a) shall terminate on the date 20 that the report required by subsection (b)(2) is submitted. 21 22 (f) CONSIDERATION OMMENDATIONS BY AND ADOPTION OF REC- COMMISSION.—Not later than 180 23 days after the Committee submits the report required by 24 subsection (b)(2), the Commission shall— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00439 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 440 1 2 (1) consider the analysis and recommendations included in such report; 3 (2) adopt such recommendations, with any 4 modifications, as the Commission considers appro- 5 priate; and 6 7 (3) submit to the appropriate congressional committees a report that— 8 (A) lists each recommendation included in 9 such report that the Commission does not adopt 10 or adopts with material modifications; and 11 (B) for each recommendation listed under 12 subparagraph (A), explains why the Commis- 13 sion does not consider it appropriate or does 14 not have sufficient authority to adopt the rec- 15 ommendation or to adopt the recommendation 16 without material modification. 17 (g) DEFINITIONS.—In this section: 18 (1) APPROPRIATE COMMIT- 19 TEES.—The 20 mittees’’ means the Committee on Financial Services 21 of the House of Representatives and the Committee 22 on Banking, Housing, and Urban Affairs of the Sen- 23 ate. 24 25 15:00 Apr 19, 2017 term ‘‘appropriate congressional com- (2) CHAIRMAN.—The term ‘‘Chairman’’ means the Chairman of the Commission. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 CONGRESSIONAL Jkt 000000 (657255 10) PO 00000 Frm 00440 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 441 1 2 (3) COMMISSION.—The term ‘‘Commission’’ means the Securities and Exchange Commission. 3 (4) SECURITIES LAWS.—The term ‘‘securities 4 laws’’ has the meaning given such term in section 5 3(a) of the Securities Exchange Act of 1934 (15 6 U.S.C. 78c(a)). 7 SEC. 821. PROCESS TO PERMIT RECIPIENT OF WELLS NOTI- 8 FICATION TO APPEAR BEFORE COMMISSION 9 STAFF IN-PERSON. 10 (a) IN GENERAL.—Not later than 180 days after the 11 date of the enactment of this Act, the Securities and Ex12 change Commission shall establish a process under which, 13 in any instance in which the Commission staff provides 14 a written Wells notification to an individual informing the 15 individual that the Commission staff has made a prelimi16 nary determination to recommend that the Commission 17 bring an administrative or judicial action against the indi18 vidual, the individual shall have the right to make an in19 person presentation before the Commission staff con20 cerning such recommendation and to be represented by 21 counsel at such presentation, at the individual’s own ex22 pense. 23 (b) ATTENDANCE BY COMMISSIONERS.—Such proc- 24 ess shall provide that each Commissioner of the Commis- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00441 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 442 1 sion, or a designee of the Commissioner, may attend any 2 such presentation. 3 (c) REPORT BY COMMISSION STAFF.—Such process 4 shall provide that, before any Commission vote on whether 5 to bring the administrative or judicial action against the 6 individual, the Commission staff shall provide to each 7 Commissioner a written report on any such presentation, 8 including any factual or legal arguments made by the indi9 vidual and any supporting documents provided by the indi10 vidual. 11 12 SEC. 822. PUBLICATION OF ENFORCEMENT MANUAL. (a) IN GENERAL.—Not later than 1 year after the 13 date of the enactment of this Act, the Securities and Ex14 change Commission shall approve, by vote of the Commis15 sion, and publish an updated manual that sets forth the 16 policies and practices that the Commission will follow in 17 the enforcement of the securities laws (as defined in sec18 tion 3(a) of the Securities Exchange Act of 1934 (15 19 U.S.C. 78c(a))). Such manual shall include policies and 20 practices required by this Act, and by the amendments 21 made by this Act, and shall be developed so as to ensure 22 transparency in such enforcement and uniform application 23 of such laws by the Commission. 24 (b) ENFORCEMENT PLAN AND REPORT.—Beginning 25 on the date that is one year after the date of enactment G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00442 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 443 1 of this Act, and each year thereafter, and the Securities 2 and Exchange Commission shall transmit to Congress and 3 publish on its Internet website an annual enforcement 4 plan and report that shall— 5 (1) detail the priorities of the Commission with 6 regard to enforcement and examination activities for 7 the forthcoming year; 8 (2) report on the Commission’s enforcement 9 and examination activities for the previous year, in- 10 cluding an assessment of how such activities com- 11 ported with the priorities identified for that year 12 pursuant to paragraph (1); 13 (3) contain an analysis of litigated decisions 14 found not in favor of the Commission over the pre- 15 ceding year; 16 (4) contain a description of any emerging 17 trends the Commission has focused on as part of its 18 enforcement program, including whether and how 19 the Commission has alerted or communicated with 20 those who may be subject to the Commission’s regu- 21 lation of emerging trends; 22 (5) contain a description of legal theories or 23 standards employed by the Commission in enforce- 24 ment over the preceding year that had not previously G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00443 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 444 1 been employed, and a summary justifying each such 2 theory or standard; and 3 4 (6) provide an opportunity and mechanism for public comment. 5 SEC. 823. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 6 SECURITIES AND EXCHANGE COMMISSION TO 7 SEEK SANCTIONS BY FILING CIVIL ACTIONS. 8 Title I of the Securities Exchange Act of 1934 (15 9 U.S.C. 78a et seq.) is amended by adding at the end the 10 following: 11 ‘‘SEC. 41. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 12 COMMISSION TO SEEK SANCTIONS BY FILING 13 CIVIL ACTIONS. 14 ‘‘(a) 15 CEEDING.—In TERMINATION OF ADMINISTRATIVE PRO- the case of any person who is a party to 16 a proceeding brought by the Commission under a securi17 ties law, to which section 554 of title 5, United States 18 Code, applies, and against whom an order imposing a 19 cease and desist order and a penalty may be issued at 20 the conclusion of the proceeding, that person may, not 21 later than 20 days after receiving notice of such pro22 ceeding, and at that person’s discretion, require the Com23 mission to terminate the proceeding. 24 ‘‘(b) CIVIL ACTION AUTHORIZED.—If a person re- 25 quires the Commission to terminate a proceeding pursuant G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00444 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 445 1 to subsection (a), the Commission may bring a civil action 2 against that person for the same remedy that might be 3 imposed. 4 5 ‘‘(c) STANDARD OF PROOF CEEDING.—Notwithstanding IN ADMINISTRATIVE PRO- any other provision of law, in 6 the case of a proceeding brought by the Commission under 7 a securities law, to which section 554 of title 5, United 8 States Code, applies, a legal or equitable remedy may be 9 imposed on the person against whom the proceeding was 10 brought only on a showing by the Commission of clear and 11 convincing evidence that the person has violated the rel12 evant provision of law.’’. 13 SEC. 824. CERTAIN FINDINGS REQUIRED TO APPROVE 14 15 CIVIL MONEY PENALTIES AGAINST ISSUERS. The Securities Exchange Act of 1934 (15 U.S.C. 78a 16 et seq.) is amended by inserting after section 4E the fol17 lowing: 18 ‘‘SEC. 4F. CERTAIN FINDINGS REQUIRED TO APPROVE 19 20 CIVIL MONEY PENALTIES AGAINST ISSUERS. ‘‘The Commission may not seek against or impose on 21 an issuer a civil money penalty for violation of the securi22 ties laws unless the publicly available text of the order ap23 proving the seeking or imposition of such penalty contains 24 findings, supported by an analysis by the Division of Eco- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00445 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 446 1 nomic and Risk Analysis and certified by the Chief Econo2 mist, of whether— 3 4 ‘‘(1) the alleged violation resulted in direct economic benefit to the issuer; and 5 6 ‘‘(2) the penalty will harm the shareholders of the issuer.’’. 7 SEC. 825. REPEAL OF AUTHORITY OF THE COMMISSION TO 8 PROHIBIT PERSONS FROM SERVING AS OFFI- 9 CERS OR DIRECTORS. 10 (a) UNDER SECURITIES ACT OF 1933.—Subsection 11 (f) of section 8A of the Securities Act of 1933 (15 U.S.C. 12 77h–1) is repealed. 13 (b) UNDER SECURITIES EXCHANGE ACT OF 1934.— 14 Subsection (f) of section 21C of the Securities Exchange 15 Act of 1934 (15 U.S.C. 78u–3) is repealed. 16 17 SEC. 826. SUBPOENA DURATION AND RENEWAL. Section 21(b) of the Securities Exchange Act of 1934 18 (15 U.S.C. 78u(b)) is amended— 19 20 (1) by inserting ‘‘SUBPOENA.—’’after the enumerator; 21 (2) by striking ‘‘For the purpose of’’ and insert- 22 ing the following: 23 ‘‘(1) IN 24 (3) by adding at the end the following: 25 ‘‘(2) OMNIBUS G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 GENERAL.—For the purpose of’’; and ORDERS OF INVESTIGATION.— (657255 10) PO 00000 Frm 00446 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 447 1 ‘‘(A) DURATION AND RENEWAL.—An om- 2 nibus order of investigation shall not be for an 3 indefinite duration and may be renewed only by 4 Commission action. 5 ‘‘(B) DEFINITION.—In paragraph (A), the 6 term ‘omnibus order of investigation’ means an 7 order of the Commission authorizing 1 of more 8 members of the Commission or its staff to issue 9 subpoenas under paragraph (1) to multiple per- 10 sons in relation to a particular subject matter 11 area.’’. 12 SEC. 827. ELIMINATION OF AUTOMATIC DISQUALIFICA- 13 14 TIONS. The Securities Exchange Act of 1934 (15 U.S.C. 78a 15 et seq.), as amended by this Act, is further amended by 16 inserting after section 4F the following: 17 ‘‘SEC. 4G. ELIMINATION OF AUTOMATIC DISQUALIFICA- 18 19 TIONS. ‘‘(a) IN GENERAL.—Notwithstanding any other pro- 20 vision of law, a non-natural person may not be disqualified 21 or otherwise made ineligible to use an exemption or reg22 istration provision, engage in an activity, or qualify for 23 any similar treatment under a provision of the securities 24 laws or the rules issued by the Commission under the se25 curities laws by reason of having, or a person described G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00447 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 448 1 in subsection (b) having, been convicted of any felony or 2 misdemeanor or made the subject of any judicial or admin3 istrative order, judgment, or decree arising out of a gov4 ernmental action (including an order, judgment, or decree 5 agreed to in a settlement), or having, or a person de6 scribed in subsection (b) having, been suspended or ex7 pelled from membership in, or suspended or barred from 8 association with a member of, a registered national securi9 ties exchange or a registered national or affiliated securi10 ties association for any act or omission to act constituting 11 conduct inconsistent with just and equitable principles of 12 trade, unless the Commission, by order, on the record 13 after notice and an opportunity for hearing, makes a de14 termination that such non-natural person should be so dis15 qualified or otherwise made ineligible for purposes of such 16 provision. 17 ‘‘(b) PERSON DESCRIBED.—A person is described in 18 this subsection if the person is— 19 ‘‘(1) a natural person who is a director, officer, 20 employee, partner, member, or shareholder of the 21 non-natural person referred to in subsection (a) or 22 is otherwise associated or affiliated with such non- 23 natural person in any way; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00448 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 449 1 ‘‘(2) a non-natural person who is associated or 2 affiliated with the non-natural person referred to in 3 subsection (a) in any way. 4 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec- 5 tion shall be construed to limit any authority of the Com6 mission, by order, on the record after notice and an oppor7 tunity for hearing, to prohibit a person from using an ex8 emption or registration provision, engaging in an activity, 9 or qualifying for any similar treatment under a provision 10 of the securities laws, or the rules issued by the Commis11 sion under the securities laws, by reason of a circumstance 12 referred to in subsection (a) or any similar circumstance.’’. 13 SEC. 828. DENIAL OF AWARD TO CULPABLE WHISTLE- 14 15 BLOWERS. Section 21F(c) of the Securities Exchange Act of 16 1934 (15 U.S.C. 78u–6(c)) is amended— 17 (1) in paragraph (2)— 18 (A) in subparagraph (C), by striking ‘‘or’’ 19 at the end; 20 (B) in subparagraph (D), by striking the 21 period and inserting ‘‘; or’’; and 22 (C) by adding at the end the following: 23 ‘‘(E) to any whistleblower who is respon- 24 sible for, or complicit in, the violation of the se- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00449 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 450 1 curities laws for which the whistleblower pro- 2 vided information to the Commission.’’; and 3 (2) by adding at the end the following: 4 ‘‘(3) DEFINITION.—For purposes of paragraph 5 (2)(E), a person is responsible for, or complicit in, 6 a violation of the securities laws if, with the intent 7 to promote or assist the violation, the person— 8 ‘‘(A) procures, induces, or causes another 9 person to commit the offense; 10 ‘‘(B) aids or abets another person in com- 11 mitting the offense; or 12 ‘‘(C) having a duty to prevent the viola- 13 tion, fails to make an effort the person is re- 14 quired to make.’’. 15 SEC. 829. CONFIDENTIALITY OF RECORDS OBTAINED FROM 16 FOREIGN SECURITIES AND LAW ENFORCE- 17 MENT AUTHORITIES. 18 Section 24(d) of the Securities Exchange Act of 1934 19 (15 U.S.C. 78x(d)) is amended to read as follows: 20 21 ‘‘(d) RECORDS OBTAINED FROM FOREIGN SECURITIES AND LAW ENFORCEMENT AUTHORITIES.—Except as 22 provided in subsection (g), the Commission shall not be 23 compelled to disclose records obtained from a foreign secu24 rities authority, or from a foreign law enforcement author25 ity as defined in subsection (f)(4), if— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00450 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 451 1 ‘‘(1) the foreign securities authority or foreign 2 law enforcement authority has in good faith deter- 3 mined and represented to the Commission that the 4 records are confidential under the laws of the coun- 5 try of such authority; and 6 7 ‘‘(2) the Commission obtains such records pursuant to— 8 ‘‘(A) such procedure as the Commission 9 may authorize for use in connection with the 10 administration or enforcement of the securities 11 laws; or 12 ‘‘(B) a memorandum of understanding. 13 For purposes of section 552 of title 5, United States Code, 14 this subsection shall be considered a statute described in 15 subsection (b)(3)(B) of such section 552.’’. 16 SEC. 830. CLARIFICATION OF AUTHORITY TO IMPOSE SANC- 17 TIONS ON PERSONS ASSOCIATED WITH A 18 BROKER OR DEALER. 19 Section 15(b)(6)(A)(i) of the Securities Exchange Act 20 of 1934 (15 U.S.C. 78o(b)(6)(A)(i)) is amended by strik21 ing ‘‘enumerated’’ and all that follows and inserting ‘‘enu22 merated in subparagraph (A), (D), (E), (G), or (H) of 23 paragraph (4) of this subsection;’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00451 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 452 1 SEC. 831. COMPLAINT AND BURDEN OF PROOF REQUIRE- 2 MENTS FOR CERTAIN ACTIONS FOR BREACH 3 OF FIDUCIARY DUTY. 4 Section 36(b) of the Investment Company Act (15 5 U.S.C. 80a–35(b)) is amended by adding at the end the 6 following: 7 ‘‘(7) In any such action brought by a security 8 holder of a registered investment company on behalf 9 of such company— 10 ‘‘(A) the complaint shall state with par- 11 ticularity all facts establishing a breach of fidu- 12 ciary duty, and, if an allegation of any such 13 facts is based on information and belief, the 14 complaint shall state with particularity all facts 15 on which that belief is formed; and 16 ‘‘(B) such security holder shall have the 17 burden of proving a breach of fiduciary duty by 18 clear and convincing evidence.’’. 19 SEC. 832. CONGRESSIONAL ACCESS TO INFORMATION 20 HELD BY THE PUBLIC COMPANY ACCOUNT- 21 ING OVERSIGHT BOARD. 22 Section 105(b)(5) of the Sarbanes-Oxley Act of 2002 23 (15 U.S.C. 7215(b)(5)) is amended— 24 (1) in subparagraph (A), by striking ‘‘subpara- 25 graphs (B) and (C)’’ and inserting ‘‘subparagraphs 26 (B), (C) and (D)’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00452 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 453 1 (2) by adding at the end the following: 2 ‘‘(D) AVAILABILITY TO THE CONGRES- 3 SIONAL COMMITTEES.—The 4 available to the Committees specified under sec- 5 tion 101(h)— 6 Board shall make ‘‘(i) such information as the Commit- 7 tees shall request; and 8 ‘‘(ii) with respect to any confidential 9 or privileged information provided in re- 10 sponse to a request under clause (i), in- 11 cluding any information subject to section 12 104(g) and subparagraph (A), or any con- 13 fidential or privileged information provided 14 orally in response to such a request, such 15 information shall maintain the protections 16 provided in subparagraph (A), and shall 17 retain its confidential and privileged status 18 in the hands of the Board and the Com- 19 mittees.’’. 20 21 SEC. 833. ABOLISHING INVESTOR ADVISORY GROUP. The Public Company Accounting Oversight Board 22 shall abolish the Investor Advisory Group. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00453 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 454 1 SEC. 834. REPEAL OF REQUIREMENT FOR PUBLIC COM- 2 PANY ACCOUNTING OVERSIGHT BOARD TO 3 USE CERTAIN FUNDS FOR MERIT SCHOLAR- 4 SHIP PROGRAM. 5 (a) IN GENERAL.—Section 109(c) of the Sarbanes- 6 Oxley Act of 2002 (15 U.S.C. 7219(c)) is amended by 7 striking paragraph (2). 8 (b) CONFORMING AMENDMENTS.—Section 109 of the 9 Sarbanes-Oxley Act of 2002 (15 U.S.C. 7219) is amend10 ed— 11 (1) in subsection (c), by striking ‘‘USES 12 FUNDS’’ and all that follows through ‘‘The budget’’ 13 and inserting ‘‘USES 14 15 OF OF FUNDS.—The budget’’; and (2) in subsection (f), by striking ‘‘subsection (c)(1)’’ and inserting ‘‘subsection (c)’’. 16 SEC. 835. REALLOCATION OF FINES FOR VIOLATIONS OF 17 RULES OF MUNICIPAL SECURITIES RULE- 18 MAKING BOARD. 19 (a) IN GENERAL.—Section 15B(c)(9) of the Securi- 20 ties Exchange Act of 1934 (15 U.S.C. 78o–4(c)(9)) is 21 amended to read as follows: 22 ‘‘(9) Fines collected for violations of the rules of the 23 Board shall be deposited and credited as general revenue 24 of the Treasury, except as otherwise provided in section 25 308 of the Sarbanes-Oxley Act of 2002 or section 21F 26 of this title.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00454 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 455 1 (b) EFFECTIVE DATE.—The amendment made by 2 subsection (a) shall apply to fines collected after the date 3 of enactment of this Act. 6 Subtitle B—Eliminating Excessive Government Intrusion in the Capital Markets 7 SEC. 841. REPEAL OF DEPARTMENT OF LABOR FIDUCIARY 8 RULE AND REQUIREMENTS PRIOR TO RULE- 9 MAKING RELATING TO STANDARDS OF CON- 4 5 10 11 DUCT FOR BROKERS AND DEALERS. (a) REPEAL OF DEPARTMENT OF LABOR FIDUCIARY 12 RULE.—The final rule of the Department of Labor titled 13 ‘‘Definition of the Term ‘Fiduciary’; Conflict of Interest 14 Rule—Retirement Investment Advice’’ and related prohib15 ited transaction exemptions published April 8, 2016 (81 16 Fed. Reg. 20946) shall have no force or effect. 17 18 (b) STAY CIARIES.—After ON RULES DEFINING CERTAIN FIDU- the date of enactment of this Act, the 19 Secretary of Labor shall not prescribe any regulation 20 under the Employee Retirement Income Security Act of 21 1974 (29 U.S.C. 1001 et seq.) defining the circumstances 22 under which an individual is considered a fiduciary until 23 the date that is 60 days after the Securities and Exchange 24 Commission issues a final rule relating to standards of 25 conduct for brokers and dealers pursuant to the second G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00455 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 456 1 subsection (k) of section 15 of the Securities Exchange 2 Act of 1934 (15 U.S.C. 78o(k)). 3 (c) REQUIREMENT AFTER STAY.—If, after the stay 4 described under subsection (b), the Secretary of Labor 5 prescribes a regulation described under such subsection, 6 the Secretary of Labor shall prescribe a substantially iden7 tical definition of what constitutes fiduciary investment 8 advice and impose substantially identical standards of care 9 and conditions as the Securities and Exchange Commis10 sion has imposed on brokers, dealers, or investment advis11 ers. 12 13 (d) REQUIREMENTS PRIOR ING TO STANDARDS OF TO RULEMAKING RELAT- CONDUCT FOR BROKERS AND 14 DEALERS.—The second subsection (k) of section 15 of the 15 Securities Exchange Act of 1934 (15 U.S.C. 78o(k)), as 16 added by section 913(g)(1) of the Dodd-Frank Wall Street 17 Reform and Consumer Protection Act (12 U.S.C. 5301 18 et seq.), is amended by adding at the end the following: 19 ‘‘(3) REQUIREMENTS 20 The Commission shall not promulgate a rule pursu- 21 ant to paragraph (1) before providing a report to the 22 Committee on Financial Services of the House of 23 Representatives and the Committee on Banking, 24 Housing, and Urban Affairs of the Senate describing 25 whether— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PRIOR TO RULEMAKING.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00456 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 457 1 ‘‘(A) retail investors (and such other cus- 2 tomers as the Commission may provide) are 3 being harmed due to brokers or dealers oper- 4 ating under different standards of conduct than 5 those that apply to investment advisors under 6 section 211 of the Investment Advisers Act of 7 1940 (15 U.S.C. 80b–11); 8 ‘‘(B) alternative remedies will reduce any 9 confusion or harm to retail investors due to 10 brokers or dealers operating under different 11 standards of conduct than those standards that 12 apply to investment advisors under section 211 13 of the Investment Advisers Act of 1940 (15 14 U.S.C. 80b–11), including— 15 ‘‘(i) simplifying the titles used by bro- 16 kers, dealers, and investment advisers; and 17 ‘‘(ii) enhancing disclosure surrounding 18 the different standards of conduct cur- 19 rently applicable to brokers, dealers, and 20 investment advisers; 21 ‘‘(C) the adoption of a uniform fiduciary 22 standard of conduct for brokers, dealers, and 23 investment advisors would adversely impact the 24 commissions of brokers and dealers, the avail- 25 ability of proprietary products offered by bro- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00457 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 458 1 kers and dealers, and the ability of brokers and 2 dealers to engage in principal transactions with 3 customers; and 4 ‘‘(D) the adoption of a uniform fiduciary 5 standard of conduct for brokers or dealers and 6 investment advisors would adversely impact re- 7 tail investor access to personalized and cost-ef- 8 fective 9 about securities, or the availability of such ad- advice, 10 vice and recommendations. 11 ‘‘(4) ECONOMIC recommendations ANALYSIS.—The Commission’s 12 conclusions contained in the report described in 13 paragraph (3) shall be supported by economic anal- 14 ysis. 15 ‘‘(5) REQUIREMENTS FOR PROMULGATING A 16 RULE.—The 17 eral Register alongside the rule promulgated pursu- 18 ant to paragraph (1) formal findings that such rule 19 would reduce confusion or harm to retail customers 20 (and such other customers as the Commission may 21 by rule provide) due to different standards of con- 22 duct applicable to brokers, dealers, and investment 23 advisors. 24 25 15:00 Apr 19, 2017 Commission shall publish in the Fed- ‘‘(6) REQUIREMENTS UNDER INVESTMENT AD- VISERS ACT OF 1940.—In G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 investment Jkt 000000 proposing rules under (657255 10) PO 00000 Frm 00458 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 459 1 paragraph (1) for brokers or dealers, the Commis- 2 sion shall consider the differences in the registration, 3 supervision, and examination requirements applica- 4 ble to brokers, dealers, and investment advisors.’’. 5 SEC. 842. EXEMPTION FROM RISK RETENTION REQUIRE- 6 7 MENTS FOR NONRESIDENTIAL MORTGAGE. (a) IN GENERAL.—Section 15G of the Securities Ex- 8 change Act of 1934 (15 U.S.C. 78o–11) is amended— 9 (1) in subsection (a)— 10 (A) in paragraph (3)(B), by striking ‘‘and’’ 11 at the end; 12 (B) in paragraph (4)(B), by striking the 13 period and inserting ‘‘; and’’; and 14 (C) by adding at the end the following: 15 ‘‘(5) the term ‘asset-backed security’ refers only 16 to an asset-backed security that is comprised wholly 17 of residential mortgages.’’; 18 (2) in subsection (b)— 19 (A) by striking paragraph (1); and 20 (B) by striking ‘‘(2) RESIDENTIAL 21 GAGES.—’’; 22 (3) by striking subsection (h) and redesignating 23 subsection (i) as subsection (h); and 24 (4) in subsection (h) (as so redesignated)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MORT- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00459 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 460 1 (A) by striking ‘‘effective—’’ and all that 2 follows through ‘‘(1) with respect to’’ and in- 3 serting ‘‘effective with respect to’’; 4 (B) in paragraph (1), by striking ‘‘; and’’ 5 and inserting a period; and 6 7 (C) by striking paragraph (2). (b) CONFORMING AMENDMENT.—Section 941 of the 8 Dodd-Frank Wall Street Reform and Consumer Protec9 tion Act is amended by striking subsection (c).’’. 10 SEC. 843. FREQUENCY OF SHAREHOLDER APPROVAL OF 11 12 EXECUTIVE COMPENSATION. Section 14A(a) of the Securities Exchange Act of 13 1934 (15 U.S.C. 78n–1(a)) is amended— 14 (1) in paragraph (1), by striking ‘‘Not less fre- 15 quently than once every 3 years’’ and inserting 16 ‘‘Each year in which there has been a material 17 change to the compensation of executives of an 18 issuer from the previous year’’; and 19 (2) by striking paragraph (2) and redesignating 20 paragraph (3) as paragraph (2). 21 SEC. 844. SHAREHOLDER PROPOSALS. 22 (a) RESUBMISSION THRESHOLDS.—The Securities 23 and Exchange Commission shall revise section 240.14a– 24 8(i)(12) of title 17, Code of Federal Regulations to— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00460 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 461 1 2 (1) in paragraph (i), adjust the 3 percent threshold to 6 percent; 3 4 (2) in paragraph (ii), adjust the 6 percent threshold to 15 percent; and 5 (3) in paragraph (iii), adjust the 10 percent 6 threshold to 30 percent. 7 (b) HOLDING REQUIREMENT.—The Securities and 8 Exchange Commission shall revise the holding require9 ment for a shareholder to be eligible to submit a share10 holder proposal to an issuer in section 240.14a–8(b)(1) 11 of title 17, Code of Federal Regulations, to— 12 13 (1) eliminate the option to satisfy the holding requirement by holding a certain dollar amount; 14 (2) require the shareholder to hold 1 percent of 15 the issuer’s securities entitled to be voted on the 16 proposal, or such greater percentage as determined 17 by the Commission; and 18 19 20 (3) adjust the 1 year holding period to 3 years. (c) SHAREHOLDER PROPOSALS ISSUED IES.—Section BY PROX- 14 of the Securities Exchange Act of 1934 21 (15 U.S.C. 78n) is amended by adding at the end the fol22 lowing: 23 ‘‘(j) SHAREHOLDER PROPOSALS BY PROXIES NOT 24 PERMITTED.—An issuer may not include in its proxy ma25 terials a shareholder proposal submitted by a person in G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00461 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 462 1 such person’s capacity as a proxy, representative, agent, 2 or person otherwise acting on behalf of a shareholder.’’. 3 SEC. 845. PROHIBITION ON REQUIRING A SINGLE BALLOT. 4 Section 14 of the Securities Exchange Act of 1934 5 (15 U.S.C. 78n) is amended by adding at the end the fol6 lowing: 7 8 ‘‘(k) PROHIBITION LOT.—The ON REQUIRING A SINGLE BAL- Commission may not require that a solicitation 9 of a proxy, consent, or authorization to vote a security 10 of an issuer in an election of members of the board of 11 directors of the issuer be made using a single ballot or 12 card that lists both individuals nominated by (or on behalf 13 of) the issuer and individuals nominated by (or on behalf 14 of) other proponents and permits the person granting the 15 proxy, consent, or authorization to select from among indi16 viduals in both groups.’’. 17 SEC. 846. REQUIREMENT FOR MUNICIPAL ADVISOR FOR 18 ISSUERS OF MUNICIPAL SECURITIES. 19 Section 15B(d) of the Securities Exchange Act of 20 1934 (15 U.S.C. 78o–4(d)) is amended by adding at the 21 end the following: 22 ‘‘(3) An issuer of municipal securities shall not be 23 required to retain a municipal advisor prior to issuing any 24 such securities.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00462 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 463 1 SEC. 847. SMALL ISSUER EXEMPTION FROM INTERNAL 2 3 CONTROL EVALUATION. Section 404(c) of the Sarbanes-Oxley Act of 2002 (15 4 U.S.C. 7262(c)) is amended to read as follows: 5 ‘‘(c) EXEMPTION SMALLER ISSUERS.—Sub- FOR 6 section (b) shall not apply with respect to any audit report 7 prepared for an issuer that has total market capitalization 8 of less than $500,000,000, nor to any issuer that is a de9 pository institution with assets of less than 10 $1,000,000,000.’’. 11 SEC. 848. STREAMLINING OF APPLICATIONS FOR AN EX- 12 EMPTION FROM THE INVESTMENT COMPANY 13 ACT OF 1940. 14 Section 6(c) of the Investment Company Act of 1940 15 (15 U.S.C. 80a–6(c)) is amended— 16 (1) by striking ‘‘(c) The Commission’’ and in- 17 serting the following: 18 ‘‘(c) GENERAL EXEMPTIVE AUTHORITY.— 19 ‘‘(1) IN 20 (2) by adding at the end the following: 21 ‘‘(2) APPLICATION 22 ‘‘(A) IN Commission’’; and PROCESS.— GENERAL.—A person who wishes 23 to receive an exemption from the Commission 24 pursuant to paragraph (1) shall file an applica- 25 tion with the Commission in such form and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00463 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 464 1 manner and containing such information as the 2 Commission may require. 3 ‘‘(B) PUBLICATION; 4 OF IN- VALID APPLICATIONS.— 5 ‘‘(i) IN GENERAL.—Not later than the 6 end of the 5-day period beginning on the 7 date that the Commission receives an ap- 8 plication under subparagraph (A), the 9 Commission shall either— 10 ‘‘(I) publish the application, in- 11 cluding by publication on the website 12 of the Commission; or 13 ‘‘(II) if the Commission deter- 14 mines that the application does not 15 comply with the proper form, manner, 16 or information requirements described 17 under subparagraph (A), reject such 18 application and notify the applicant of 19 the specific reasons the application 20 was rejected. 21 ‘‘(ii) FAILURE TO PUBLISH APPLICA- 22 TION.—If 23 an application under clause (i)(II), but 24 fails to publish the application by the end 25 of the time period specified under clause G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 REJECTION 15:00 Apr 19, 2017 Jkt 000000 the Commission does not reject (657255 10) PO 00000 Frm 00464 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 465 1 (i), such application shall be deemed to 2 have been published on the date that is the 3 end of such time period. 4 ‘‘(3) DETERMINATION 5 ‘‘(A) IN GENERAL.—Not later than 45 6 days after the date that the Commission pub- 7 lishes an application pursuant to paragraph 8 (2)(B), the Commission shall, by order— 9 ‘‘(i) approve the application; 10 ‘‘(ii) if the Commission determines 11 that the application would have been ap- 12 proved had the applicant provided addi- 13 tional supporting documentation or made 14 certain amendments to the application— 15 ‘‘(I) provide the applicant with 16 the specific additional supporting doc- 17 umentation or amendments that the 18 Commission believes are necessary for 19 the applicant to provide in order for 20 the application to be approved; and 21 ‘‘(II) request that the applicant 22 withdraw the application and re-sub- 23 mit the application with such addi- 24 tional supporting documentation and 25 amendments; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 BY COMMISSION.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00465 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 466 1 ‘‘(iii) deny the application. 2 ‘‘(B) EXTENSION 3 Commission may extend the time period de- 4 scribed under subparagraph (A) by not more 5 than an additional 45 days, if— 6 ‘‘(i) the Commission determines that a 7 longer period is appropriate and publishes 8 the reasons for such determination; or 9 ‘‘(ii) the applicant consents to the 10 longer period. 11 ‘‘(C) TIME PERIOD FOR WITHDRAWAL.—If 12 the Commission makes a request under sub- 13 paragraph (A)(ii) for an applicant to withdraw 14 an application, such application shall be deemed 15 to be denied if the applicant informs the Com- 16 mission that the applicant will not withdraw the 17 application or if the applicant does not with- 18 draw the application before the end of the 30- 19 day period beginning on the date the Commis- 20 sion makes such request. 21 ‘‘(4) PROCEEDINGS; NOTICE AND HEARING.—If 22 an application is denied pursuant to paragraph (3), 23 the Commission shall provide the applicant with— 24 ‘‘(A) a written explanation for why the ap- 25 plication was not approved; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF TIME PERIOD.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00466 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 467 1 ‘‘(B) an opportunity for hearing, if re- 2 quested by the applicant not later than 20 days 3 after the date of such denial, with such hearing 4 to be commenced not later than 30 days after 5 the date of such denial. 6 ‘‘(5) RESULT 7 COMMENCE PROCEEDINGS.—An 8 deemed to have been approved by the Commission, 9 if— application shall be 10 ‘‘(A) the Commission fails to either ap- 11 prove, request the withdrawal of, or deny the 12 application, 13 (3)(A), within the time period required under 14 paragraph (3)(A), as such time period may 15 have been extended pursuant to paragraph 16 (3)(B); or as required under paragraph 17 ‘‘(B) the applicant requests an opportunity 18 for hearing, pursuant to paragraph (4)(B), but 19 the Commission does not commence such hear- 20 ing within the time period required under para- 21 graph (4)(B). 22 ‘‘(6) RULEMAKING.—Not later than 180 days 23 after the date of enactment of this paragraph, the 24 Commission shall issue rules to carry out this sub- 25 section.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF FAILURE TO INSTITUTE OR 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00467 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 468 1 SEC. 849. RESTRICTION ON RECOVERY OF ERRONEOUSLY 2 3 AWARDED COMPENSATION. Section 10D(b)(2) of the Securities Exchange Act of 4 1934 (15 U.S.C. 78j–4(b)(2)) is amended by inserting be5 fore the period the following: ‘‘, where such executive offi6 cer had control or authority over the financial reporting 7 that resulted in the accounting restatement’’. 8 SEC. 850. EXEMPTIVE AUTHORITY FOR CERTAIN PROVI- 9 SIONS RELATING TO REGISTRATION OF NA- 10 TIONALLY RECOGNIZED STATISTICAL RAT- 11 ING ORGANIZATIONS. 12 Section 15E of the Securities Exchange Act of 1934 13 (15 U.S.C. 78o–7) is amended by adding at the end the 14 following: 15 ‘‘(w) COMMISSION EXEMPTIVE AUTHORITY.—The 16 Commission, by rules and regulations upon its own mo17 tion, or by order upon application, may conditionally or 18 unconditionally exempt any person from any provision or 19 provisions of this title or of any rule or regulation there20 under, if and to the extent it determines that such rule, 21 regulation, or requirement is creating a barrier to entry 22 into the market for nationally recognized statistical rating 23 organizations or impeding competition among such organi24 zations, or that such an exemption is necessary or appro25 priate in the public interest and is consistent with the pro26 tection of investors.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00468 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 469 1 SEC. 851. RISK-BASED EXAMINATIONS OF NATIONALLY 2 RECOGNIZED STATISTICAL RATING ORGANI- 3 ZATIONS. 4 Section 15E(p)(3) of the Securities Exchange Act of 5 1934 (15 U.S.C. 78o–7(p)(3)) is amended— 6 (1) in subparagraph (A)— 7 (A) in the heading, by striking ‘‘ANNUAL’’ 8 and inserting ‘‘RISK-BASED’’; 9 (B) by striking ‘‘an examination’’ and in- 10 serting ‘‘examinations’’; and 11 (C) by striking ‘‘at least annually’’; and 12 (2) in subparagraph (B), in the matter pre- 13 ceding clause (i), by inserting ‘‘, as appropriate,’’ 14 after ‘‘Each examination under subparagraph (A) 15 shall include’’. 16 SEC. 852. TRANSPARENCY OF CREDIT RATING METH- 17 18 ODOLOGIES. Section 15E(s) of the Securities Exchange Act of 19 1934 (15 U.S.C. 78o-7(s)) is amended— 20 (1) in paragraph (2)(B), by inserting before the 21 semicolon the following: ‘‘rated by the nationally rec- 22 ognized statistical rating agency’’; and 23 (2) in paragraph (3)— 24 (A) in subparagraph (A)(ix), by inserting 25 before the period the following: ‘‘, except that 26 the Commission may not require the inclusion G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00469 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 470 1 of references to statutory or regulatory require- 2 ments or statutory provision headings or enu- 3 merators for any specific disclosure’’; 4 (B) in subparagraph (B)(iv), by inserting 5 before the period the following: ‘‘, except that 6 the Commission may not require the inclusion 7 of references to statutory or regulatory require- 8 ments or statutory provision headings or enu- 9 merators for any specific disclosure’’; and 10 (C) by adding at the end the following: 11 ‘‘(C) NO MANDATE ON THE ORGANIZATION 12 OF DISCLOSURES.—The 13 mandate the specific organization of the disclo- 14 sures required under this paragraph.’’. 15 SEC. 853. REPEAL OF CERTAIN ATTESTATION REQUIRE- 16 17 Commission may not MENTS RELATING TO CREDIT RATINGS. Section 15E of the Securities Exchange Act of 1934 18 (15 U.S.C. 78o-7) is amended— 19 (1) in subsection (c)(3)(B)— 20 (A) in clause (i), by adding ‘‘and’’ at the 21 end; 22 (B) in clause (ii), by striking ‘‘; and’’ and 23 inserting a period; and 24 (C) by striking clause (iii); and 25 (2) in subsection (q)(2)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00470 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 471 1 (A) in subparagraph (D), by adding ‘‘and’’ 2 at the end; 3 (B) in subparagraph (E), by striking ‘‘; 4 and’’ and inserting a period; and 5 6 7 (C) by striking subparagraph (F). SEC. 854. LOOK-BACK REVIEW BY NRSRO. Section 15E(h)(4)(A) of the Securities Exchange Act 8 of 1934 (15 U.S.C. 78o-7(h)(4)(A)) is amended— 9 10 (1) by striking ‘‘Each nationally’’ and inserting the following: 11 ‘‘(i) IN 12 13 nationally’’; (2) by striking ‘‘underwriter’’ and inserting ‘‘lead underwriter’’; 14 (3) by striking ‘‘in any capacity’’; 15 (4) by striking ‘‘during the 1-year period pre- 16 ceding the date an action was taken with respect to 17 the credit rating’’; 18 (5) by redesignating clauses (i) and (ii) as sub- 19 clauses (I) and (II), respectively, and adjusting the 20 margin of such subclauses accordingly; 21 (6) in subclause (I), as so redesignated, by in- 22 serting before the semicolon the following: ‘‘during 23 the 1-year period preceding the departure of the em- 24 ployee from the nationally recognized statistical rat- 25 ing organization’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Each 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00471 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 472 1 (7) by adding at the end the following: 2 ‘‘(ii) MAINTENANCE OF RATINGS AC- 3 TIONS.—In 4 ings actions, the requirement under clause 5 (i) shall only apply to employees of a per- 6 son subject to a credit rating of the nation- 7 ally recognized statistical rating organiza- 8 tion or an issuer of a security or money 9 market instrument subject to a credit rat- 10 ing of the nationally recognized statistical 11 rating organization.’’. 12 SEC. 855. APPROVAL OF CREDIT RATING PROCEDURES AND 13 14 the case of maintenance of rat- METHODOLOGIES. Section 15E(r)(1)(A) of the Securities Exchange Act 15 of 1934 (15 U.S.C. 78o–7(r)(1)(A)) is amended by insert16 ing ‘‘, or the Chief Credit Officer’’ after ‘‘performing a 17 function similar to that of a board’’. 18 SEC. 856. EXCEPTION FOR PROVIDING CERTAIN MATERIAL 19 INFORMATION RELATING TO A CREDIT RAT- 20 ING. 21 Section 15E(h)(3) of the Securities Exchange Act of 22 1934 (15 U.S.C. 78o-7(h)(3)) is amended by adding at 23 the end the following: 24 ‘‘(C) EXCEPTION 25 MATERIAL INFORMATION.—Rules G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 FOR PROVIDING CERTAIN Jkt 000000 issued under (657255 10) PO 00000 Frm 00472 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 473 1 this paragraph may not prohibit a person who 2 participates in sales or marketing of a product 3 or service of a nationally recognized statistical 4 rating organization from providing material in- 5 formation, or information believed in good faith 6 to be material, to the issuance or maintenance 7 of a credit rating to a person who participates 8 in determining or monitoring the credit rating, 9 or developing or approving procedures or meth- 10 odologies used for determining the credit rating, 11 so long as the information provided is not in- 12 tended to influence the determination of a cred- 13 it rating, or the procedures or methodologies 14 used to determine credit ratings.’’. 15 16 SEC. 857. REPEALS. (a) REPEALS.—The following provisions of title IX 17 of the Dodd-Frank Wall Street Reform and Consumer 18 Protection Act are repealed, and the provisions of law 19 amended or repealed by such sections are restored or re20 vived as if such sections had not been enacted: 21 (1) Section 912. 22 (2) Section 914. 23 (3) Section 917. 24 (4) Section 918. 25 (5) Section 919A. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00473 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 474 1 (6) Section 919B. 2 (7) Section 919C. 3 (8) Section 921. 4 (9) Section 929T. 5 (10) Section 929X. 6 (11) Section 929Y. 7 (12) Section 929Z. 8 (13) Section 931. 9 (14) Section 933. 10 (15) Section 937. 11 (16) Section 939B. 12 (17) Section 939C. 13 (18) Section 939D. 14 (19) Section 939E. 15 (20) Section 939F. 16 (21) Section 939G. 17 (22) Section 939H. 18 (23) Section 946. 19 (24) Subsection (b) of section 953. 20 (25) Section 955. 21 (26) Section 956. 22 (27) Section 964. 23 (28) Section 965. 24 (29) Section 968. 25 (30) Section 971. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00474 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 475 1 (31) Section 972. 2 (32) Section 976. 3 (33) Section 977. 4 (34) Section 978. 5 (35) Section 984. 6 (36) Section 989. 7 (37) Section 989A. 8 (38) Section 989F. 9 (39) Subsection (b) of section 989G. 10 11 (40) Section 989I. (b) CONFORMING AMENDMENTS.—The Dodd-Frank 12 Wall Street Reform and Consumer Protection Act (12 13 U.S.C. 5301) is amended— 14 (1) in the table of contents in section 1(b), by 15 striking the items relating to the sections described 16 under paragraphs (1) through (23), (25) through 17 (38), and (40) of subsection (a); 18 19 (2) in section 953, by striking ‘‘(a) DISCLOSURE OF 20 21 (3) in section 989G, by striking ‘‘(a) EXEMPTION.—’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 PAY VERSUS PERFORMANCE.—’’; and Jkt 000000 (657255 10) PO 00000 Frm 00475 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 476 1 SEC. 858. EXEMPTION OF AND REPORTING BY PRIVATE EQ- 2 3 UITY FUND ADVISERS. Section 203 of the Investment Advisers Act of 1940 4 (15 U.S.C. 80b–3) is amended by adding at the end the 5 following: 6 ‘‘(o) EXEMPTION OF AND REPORTING BY PRIVATE 7 EQUITY FUND ADVISERS.— 8 ‘‘(1) IN as provided in this 9 subsection, no investment adviser shall be subject to 10 the registration or reporting requirements of this 11 title with respect to the provision of investment ad- 12 vice relating to a private equity fund. 13 ‘‘(2) MAINTENANCE OF RECORDS AND ACCESS 14 BY COMMISSION.—Not 15 date of enactment of this subsection, the Commis- 16 sion shall issue final rules— later than 6 months after the 17 ‘‘(A) to require investment advisers de- 18 scribed in paragraph (1) to maintain such 19 records and provide to the Commission such an- 20 nual or other reports as the Commission, taking 21 into account fund size, governance, investment 22 strategy, risk, and other factors, determines 23 necessary and appropriate in the public interest 24 and for the protection of investors; and 25 ‘‘(B) to define the term ‘private equity 26 fund’ for purposes of this subsection.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Except 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00476 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 477 1 2 SEC. 859. RECORDS AND REPORTS OF PRIVATE FUNDS. The Investment Advisers Act of 1940 (15 U.S.C. 3 80b–1 et seq.) is amended— 4 (1) in section 204(b)— 5 (A) in paragraph (1)— 6 (i) in subparagraph (A), by striking 7 ‘‘investors,’’ and all that follows and in- 8 serting ‘‘investors.’’; 9 (ii) by striking subparagraph (B); and 10 (iii) by striking ‘‘this title—’’ and all 11 that follows through ‘‘to maintain’’ and in- 12 serting ‘‘this title to maintain’’; 13 (B) in paragraph (3)(H)— 14 (i) by striking ‘‘, in consultation with 15 the Council,’’; and 16 (ii) by striking ‘‘or for the assessment 17 of systemic risk’’; 18 (C) in paragraph (4), by striking ‘‘, or for 19 the assessment of systemic risk’’; 20 (D) in paragraph (5), by striking ‘‘or for 21 the assessment of systemic risk’’; 22 (E) in paragraph (6)(A)(ii), by striking ‘‘, 23 or for the assessment of systemic risk’’; 24 (F) by striking paragraph (7) and redesig- 25 nating paragraphs (8) through (11) as para- 26 graphs (7) through (10), respectively; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00477 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 478 1 (G) in paragraph (8) (as so redesignated), 2 by striking ‘‘paragraph (8)’’ and inserting 3 ‘‘paragraph (7)’’; and 4 (2) in section 211(e)— 5 (A) by striking ‘‘after consultation with the 6 Council but’’; and 7 (B) by striking ‘‘subsection 204(b)’’ and 8 9 10 inserting ‘‘section 204(b)’’. SEC. 860. DEFINITION OF ACCREDITED INVESTOR. (a) IN GENERAL.—Section 2(a)(15) of the Securities 11 Act of 1933 (15 U.S.C. 77b(a)(15)) is amended— 12 13 (1) by redesignating clauses (i) and (ii) as subparagraphs (A) and (F), respectively; and 14 (2) in subparagraph (A) (as so redesignated), 15 by striking ‘‘; or’’ at the end and inserting a semi- 16 colon, and inserting after such subparagraph the fol- 17 lowing: 18 ‘‘(B) any natural person whose individual 19 net worth, or joint net worth with that person’s 20 spouse, exceeds $1,000,000 (which amount, 21 along with the amounts set forth in subpara- 22 graph (C), shall be adjusted for inflation by the 23 Commission every 5 years to the nearest 24 $10,000 to reflect the change in the Consumer 25 Price Index for All Urban Consumers published G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00478 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 479 1 by the Bureau of Labor Statistics) where, for 2 purposes of calculating net worth under this 3 subparagraph— 4 ‘‘(i) the person’s primary residence 5 shall not be included as an asset; 6 ‘‘(ii) indebtedness that is secured by 7 the person’s primary residence, up to the 8 estimated fair market value of the primary 9 residence at the time of the sale of securi- 10 ties, shall not be included as a liability (ex- 11 cept that if the amount of such indebted- 12 ness outstanding at the time of sale of se- 13 curities exceeds the amount outstanding 60 14 days before such time, other than as a re- 15 sult of the acquisition of the primary resi- 16 dence, the amount of such excess shall be 17 included as a liability); and 18 ‘‘(iii) indebtedness that is secured by 19 the person’s primary residence in excess of 20 the estimated fair market value of the pri- 21 mary residence at the time of the sale of 22 securities shall be included as a liability; 23 ‘‘(C) any natural person who had an indi- 24 vidual income in excess of $200,000 in each of 25 the 2 most recent years or joint income with G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00479 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 480 1 that person’s spouse in excess of $300,000 in 2 each of those years and has a reasonable expec- 3 tation of reaching the same income level in the 4 current year; 5 ‘‘(D) any natural person who, by reason of 6 their net worth or income, is an accredited in- 7 vestor under section 230.215 of title 17, Code 8 of Federal Regulations (as in effect on the day 9 before the date of enactment of this subpara- 10 graph); 11 ‘‘(E) any natural person who is currently 12 licensed or registered as a broker or investment 13 adviser by the Commission, the Financial In- 14 dustry Regulatory Authority, or an equivalent 15 self-regulatory organization (as defined in sec- 16 tion 3(a)(26) of the Securities Exchange Act of 17 1934), or the securities division of a State or 18 the equivalent State division responsible for li- 19 censing or registration of individuals in connec- 20 tion with securities activities; 21 ‘‘(F) any natural person the Commission 22 determines, by regulation, to have demonstrable 23 education or job experience to qualify such per- 24 son as having professional knowledge of a sub- 25 ject related to a particular investment, and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00480 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 481 1 whose education or job experience is verified by 2 the Financial Industry Regulatory Authority or 3 an equivalent self-regulatory organization (as 4 defined in section 3(a)(26) of the Securities Ex- 5 change Act of 1934); or’’. 6 (b) REPEAL.— 7 (1) IN GENERAL.—Section 413 of the Dodd- 8 Frank Wall Street Reform and Consumer Protection 9 Act (Public Law 111–203) is hereby repealed. 10 (2) CLERICAL AMENDMENT.—The table of con- 11 tents in section 1(b) of the Dodd-Frank Wall Street 12 Reform and Consumer Protection Act is amended by 13 striking the items relating to section 413. 14 SEC. 861. REPEAL OF CERTAIN PROVISIONS REQUIRING A 15 16 STUDY AND REPORT TO CONGRESS. (a) REPEAL.—The following provisions of the Dodd- 17 Frank Wall Street Reform and Consumer Protection Act 18 are repealed: 19 (1) Section 412. 20 (2) Section 415. 21 (3) Section 416. 22 (4) Section 417. 23 (b) CLERICAL AMENDMENT.—The table of contents 24 in section 1(b) of the Dodd-Frank Wall Street Reform and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00481 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 482 1 Consumer Protection Act is amended by striking the items 2 relating to sections 412, 415, 416, and 417. 3 4 SEC. 862. REPEAL. (a) REPEAL.—The following sections of title XV of 5 the Dodd-Frank Wall Street Reform and Consumer Pro6 tection Act are repealed, and the provisions of law amend7 ed or repealed by such sections are restored or revived as 8 if such sections had not been enacted: 9 (1) Section 1502. 10 (2) Section 1503. 11 (3) Section 1504. 12 (4) Section 1505. 13 (5) Section 1506. 14 (b) CLERICAL AMENDMENT.—The table of contents 15 in section 1(b) of the Dodd-Frank Wall Street Reform and 16 Consumer Protection Act is amended by striking the items 17 relating to sections 1502, 1503, 1504, 1505, and 1506. 19 Subtitle C—Harmonization of Derivatives Rules 20 SEC. 871. COMMISSIONS REVIEW AND HARMONIZATION OF 21 RULES RELATING TO THE REGULATION OF 22 OVER-THE-COUNTER SWAPS MARKETS. 18 23 The Securities and Exchange Commission and the 24 Commodity Futures Trading Commission shall review 25 each rule, order, and interpretive guidance issued by either G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00482 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 483 1 such Commission pursuant to title VII of the Dodd-Frank 2 Wall Street Reform and Consumer Protection Act (15 3 U.S.C. 8301 et seq.) and, where the Commissions find in4 consistencies in any such rules, orders, or interpretive 5 guidance, shall jointly issue new rules, orders, or interpre6 tive guidance to resolve such inconsistencies. 7 SEC. 872. TREATMENT OF TRANSACTIONS BETWEEN AF- 8 9 FILIATES. (a) COMMODITY EXCHANGE ACT.—Section 1a(47) of 10 the Commodity Exchange Act (7 U.S.C. 1a(47)) is amend11 ed by adding at the end the following: 12 ‘‘(G) TREATMENT 13 BETWEEN AFFILIATES.— 14 ‘‘(i) EXEMPTION FROM SWAP 15 RULES.—Except 16 (ii), the Commission may not regulate a 17 swap under this Act if all of the following 18 apply to such swap: 19 as provided under clause ‘‘(I) AFFILIATION.—One 20 counterparty, directly or indirectly, 21 holds a majority ownership interest in 22 the other counterparty, or a third 23 party, directly or indirectly, holds a 24 majority ownership interest in both 25 counterparties. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF SWAP TRANSACTIONS 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00483 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 484 1 ‘‘(II) FINANCIAL 2 The affiliated counterparty that holds 3 the majority interest in the other 4 counterparty or the third party that, 5 directly or indirectly, holds the major- 6 ity 7 counterparties, reports its financial 8 statements on a consolidated basis 9 under generally accepted accounting 10 principles or International Financial 11 Reporting Standards, or other similar 12 standards, and the financial state- 13 ments include the financial results of 14 the 15 counterparty or counterparties. 16 ‘‘(ii) REQUIREMENTS interests in both majority-owned 17 SWAPS.—With 18 under clause (i): 19 affiliated affiliated FOR EXEMPTED respect to a swap described ‘‘(I) REPORTING REQUIRE- 20 MENT.—If 21 a swap dealer or major swap partici- 22 pant, that counterparty shall report 23 the swap pursuant to section 4r, with- 24 in such time period as the Commis- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 STATEMENTS.— 15:00 Apr 19, 2017 Jkt 000000 at least one counterparty is (657255 10) PO 00000 Frm 00484 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 485 1 sion may by rule or regulation pre- 2 scribe— 3 ‘‘(aa) to a swap data reposi- 4 tory; or 5 ‘‘(bb) if there is no swap 6 data repository that would accept 7 the agreement, contract or trans- 8 action, to the Commission. 9 ‘‘(II) RISK 10 QUIREMENT.—If 11 counterparty is a swap dealer or 12 major swap participant, the swap 13 shall be subject to a centralized risk 14 management program pursuant to 15 section 4s(j) that is reasonably de- 16 signed to monitor and to manage the 17 risks associated with the swap. 18 ‘‘(III) ANTI-EVASION at least RE- one REQUIRE- 19 MENT.—The 20 tured to evade the Dodd-Frank Wall 21 Street Reform and Consumer Protec- 22 tion Act in violation of any rule pro- 23 mulgated by the Commission pursuant 24 to section 721(c) of such Act.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MANAGEMENT 15:00 Apr 19, 2017 Jkt 000000 swap shall not be struc- (657255 10) PO 00000 Frm 00485 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 486 1 (b) SECURITIES EXCHANGE ACT OF 1934.—Section 2 3(a)(68) of the Securities Exchange Act of 1934 (15 3 U.S.C. 78c(a)(68)) is amended by inserting before sub4 section (b) the following: 5 ‘‘(F) TREATMENT 6 SECURITY-BASED SWAP TRANSACTIONS BETWEEN AFFILIATES.— 7 ‘‘(i) EXEMPTION FROM SECURITY- 8 BASED SWAP RULES.—Except as provided 9 under clause (ii), the Commission may not 10 regulate a security-based swap under this 11 Act if all of the following apply to such se- 12 curity-based swap: 13 ‘‘(I) AFFILIATION.—One 14 counterparty, directly or indirectly, 15 holds a majority ownership interest in 16 the other counterparty, or a third 17 party, directly or indirectly, holds a 18 majority ownership interest in both 19 counterparties. 20 ‘‘(II) FINANCIAL STATEMENTS.— 21 The affiliated counterparty that holds 22 the majority interest in the other 23 counterparty or the third party that, 24 directly or indirectly, holds the major- 25 ity G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 interests in both affiliated (657255 10) PO 00000 Frm 00486 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 487 1 counterparties, reports its financial 2 statements on a consolidated basis 3 under generally accepted accounting 4 principles or International Financial 5 Reporting Standards, or other similar 6 standards, and the financial state- 7 ments include the financial results of 8 the 9 counterparty or counterparties. 10 majority-owned ‘‘(ii) REQUIREMENTS FOR EXEMPTED 11 SECURITY-BASED SWAPS.—With 12 a security-based swap described under 13 clause (i): 14 ‘‘(I) respect to REPORTING REQUIRE- 15 MENT.—If 16 a security-based swap dealer or major 17 security-based swap participant, that 18 counterparty shall report the security- 19 based swap pursuant to section 13A, 20 within such time period as the Com- 21 mission may by rule or regulation pre- 22 scribe— 23 swap data repository; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) 15:00 Apr 19, 2017 at least one counterparty is ‘‘(aa) to a security-based 24 VerDate 0ct 09 2002 affiliated Jkt 000000 (657255 10) PO 00000 Frm 00487 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 488 1 ‘‘(bb) if there is no security- 2 based swap data repository that 3 would accept the agreement, con- 4 tract or transaction, to the Com- 5 mission. 6 ‘‘(II) RISK 7 QUIREMENT.—If 8 counterparty is a security-based swap 9 dealer or major security-based swap 10 participant, the security-based swap 11 shall be subject to a centralized risk 12 management program pursuant to 13 section 15F(j) that is reasonably de- 14 signed to monitor and to manage the 15 risks associated with the security- 16 based swap. 17 at least ‘‘(III) ANTI-EVASION RE- one REQUIRE- 18 MENT.—The 19 not be structured to evade the Dodd- 20 Frank Wall Street Reform and Con- 21 sumer Protection Act in violation of 22 any rule promulgated by the Commis- 23 sion pursuant to section 761(b)(3) of 24 such Act.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MANAGEMENT 15:00 Apr 19, 2017 Jkt 000000 security-based swap shall (657255 10) PO 00000 Frm 00488 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 489 3 TITLE IX—REPEAL OF THE VOLCKER RULE AND OTHER PROVISIONS 4 SEC. 901. REPEALS. 1 2 5 (a) IN GENERAL.—The following sections of title VI 6 of the Dodd-Frank Wall Street Reform and Consumer 7 Protection Act are repealed, and the provisions of law 8 amended or repealed by such sections are restored or re9 vived as if such sections had not been enacted: 10 (1) Section 603. 11 (2) Section 618. 12 (3) Section 619. 13 (4) Section 620. 14 (5) Section 621. 15 (b) CLERICAL AMENDMENT.—The table of contents 16 under section 1(b) of the Dodd-Frank Wall Street Reform 17 and Consumer Protection Act is amended by striking the 18 items relating to sections 603, 618, 619, 620, and 621. 20 TITLE X—FED OVERSIGHT REFORM AND MODERNIZATION 21 SEC. 1001. REQUIREMENTS FOR POLICY RULES OF THE 19 22 FEDERAL OPEN MARKET COMMITTEE. 23 The Federal Reserve Act (12 U.S.C. 221 et seq.) is 24 amended by inserting after section 2B the following new 25 section: G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00489 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 490 1 ‘‘SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL 2 3 OPEN MARKET COMMITTEE. ‘‘(a) DEFINITIONS.—In this section the following 4 definitions shall apply: 5 ‘‘(1) APPROPRIATE 6 TEES.—The 7 mittees’ means the Committee on Financial Services 8 of the House of Representatives and the Committee 9 on Banking, Housing, and Urban Affairs of the Sen- 10 term ‘appropriate congressional com- ate. 11 ‘‘(2) DIRECTIVE POLICY RULE.—The term ‘Di- 12 rective Policy Rule’ means a policy rule developed by 13 the Federal Open Market Committee that meets the 14 requirements of subsection (c) and that provides the 15 basis for the Open Market Operations Directive. 16 ‘‘(3) GDP.—The term ‘GDP’ means the gross 17 domestic product of the United States as computed 18 and published by the Department of Commerce. 19 ‘‘(4) INTERMEDIATE 20 ‘Intermediate Policy Input’— POLICY INPUT.—The term 21 ‘‘(A) may include any variable determined 22 by the Federal Open Market Committee as a 23 necessary input to guide open-market oper- 24 ations; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 CONGRESSIONAL COMMIT- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00490 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 491 1 ‘‘(B) shall include an estimate of, and the 2 method of calculation for, the current rate of 3 inflation or current inflation expectations; and 4 ‘‘(C) shall include, specifying whether the 5 variable or estimate is historical, current, or a 6 forecast and the method of calculation, at least 7 one of— 8 ‘‘(i) an estimate of real GDP, nominal 9 GDP, or potential GDP; 10 ‘‘(ii) an estimate of the monetary ag- 11 gregate compiled by the Board of Gov- 12 ernors of the Federal Reserve System and 13 Federal reserve banks; or 14 ‘‘(iii) an interactive variable or a net 15 estimate composed of the estimates de- 16 scribed in clauses (i) and (ii). 17 ‘‘(5) LEGISLATIVE term ‘legislative 18 day’ means a day on which either House of Congress 19 is in session. 20 ‘‘(6) OPEN MARKET OPERATIONS DIRECTIVE.— 21 The term ‘Open Market Operations Directive’ means 22 an order to achieve a specified Policy Instrument 23 Target provided to the Federal Reserve Bank of 24 New York by the Federal Open Market Committee G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 DAY.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00491 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 492 1 pursuant to powers authorized under section 14 of 2 this Act that guide open-market operations. 3 ‘‘(7) POLICY 4 Instrument’ means— term ‘Policy 5 ‘‘(A) the nominal Federal funds rate; 6 ‘‘(B) the nominal rate of interest paid on 7 nonborrowed reserves; or 8 ‘‘(C) the discount window primary credit 9 interest rate most recently published on the 10 Federal Reserve Statistical Release on selected 11 interest rates (daily or weekly), commonly re- 12 ferred to as the H.15 release. 13 ‘‘(8) POLICY INSTRUMENT TARGET.—The term 14 ‘Policy Instrument Target’ means the target for the 15 Policy Instrument specified in the Open Market Op- 16 erations Directive. 17 ‘‘(9) REFERENCE POLICY RULE.—The term 18 ‘Reference Policy Rule’ means a calculation of the 19 nominal Federal funds rate as equal to the sum of 20 the following: 21 ‘‘(A) The rate of inflation over the pre- 22 vious four quarters. 23 ‘‘(B) One-half of the percentage deviation 24 of the real GDP from an estimate of potential 25 GDP. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 INSTRUMENT.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00492 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 493 1 ‘‘(C) One-half of the difference between the 2 rate of inflation over the previous four quarters 3 and two percent. 4 5 ‘‘(D) Two percent. ‘‘(b) SUBMITTING A DIRECTIVE POLICY RULE.—Not 6 later than 48 hours after the end of a meeting of the Fed7 eral Open Market Committee, the Chairman of the Fed8 eral Open Market Committee shall submit to the appro9 priate congressional committees and the Comptroller Gen10 eral of the United States a Directive Policy Rule and a 11 statement that identifies the members of the Federal Open 12 Market Committee who voted in favor of the Directive Pol13 icy Rule. 14 ‘‘(c) REQUIREMENTS FOR A DIRECTIVE POLICY 15 RULE.—A Directive Policy Rule shall— 16 17 ‘‘(1) identify the Policy Instrument the Directive Policy Rule is designed to target; 18 ‘‘(2) describe the strategy or rule of the Federal 19 Open Market Committee for the systematic quan- 20 titative adjustment of the Policy Instrument Target 21 to respond to a change in the Intermediate Policy 22 Inputs; 23 ‘‘(3) include a function that comprehensively 24 models the interactive relationship between the In- 25 termediate Policy Inputs; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00493 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 494 1 ‘‘(4) include the coefficients of the Directive 2 Policy Rule that generate the current Policy Instru- 3 ment Target and a range of predicted future values 4 for the Policy Instrument Target if changes occur in 5 any Intermediate Policy Input; 6 ‘‘(5) describe the procedure for adjusting the 7 supply of bank reserves to achieve the Policy Instru- 8 ment Target; 9 ‘‘(6) include a statement as to whether the Di- 10 rective Policy Rule substantially conforms to the 11 Reference Policy Rule and, if applicable— 12 ‘‘(A) an explanation of the extent to which 13 it departs from the Reference Policy Rule; 14 ‘‘(B) a detailed justification for that depar- 15 ture; and 16 ‘‘(C) a description of the circumstances 17 under which the Directive Policy Rule may be 18 amended in the future; 19 ‘‘(7) include a certification that the Directive 20 Policy Rule is expected to support the economy in 21 achieving stable prices and maximum natural em- 22 ployment over the long term; 23 ‘‘(8) include a calculation that describes with 24 mathematical precision the expected annual inflation 25 rate over a 5-year period; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00494 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 495 1 ‘‘(9) include a plan to use the most accurate 2 data, subject to all historical revisions, for inputs 3 into the Directive Policy Rule and the Reference 4 Policy Rule. 5 ‘‘(d) GAO REPORT.—The Comptroller General of the 6 United States shall compare the Directive Policy Rule sub7 mitted under subsection (b) with the rule that was most 8 recently submitted to determine whether the Directive Pol9 icy Rule has materially changed. If the Directive Policy 10 Rule has materially changed, the Comptroller General 11 shall, not later than 7 days after each meeting of the Fed12 eral Open Market Committee, prepare and submit a com13 pliance report to the appropriate congressional committees 14 specifying whether the Directive Policy Rule submitted 15 after that meeting and the Federal Open Market Com16 mittee are in compliance with this section. 17 ‘‘(e) CHANGING MARKET CONDITIONS.— 18 ‘‘(1) RULE CONSTRUCTION.—Nothing in 19 this Act shall be construed to require that the plans 20 with respect to the systematic quantitative adjust- 21 ment of the Policy Instrument Target described 22 under subsection (c)(2) be implemented if the Fed- 23 eral Open Market Committee determines that such 24 plans cannot or should not be achieved due to 25 changing market conditions. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00495 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 496 1 ‘‘(2) GAO APPROVAL OF UPDATE.—Upon deter- 2 mining that plans described in paragraph (1) cannot 3 or should not be achieved, the Federal Open Market 4 Committee shall submit an explanation for that de- 5 termination and an updated version of the Directive 6 Policy Rule to the Comptroller General of the 7 United States and the appropriate congressional 8 committees not later than 48 hours after making the 9 determination. The Comptroller General shall, not 10 later than 48 hours after receiving such updated 11 version, prepare and submit to the appropriate con- 12 gressional committees a compliance report deter- 13 mining whether such updated version and the Fed- 14 eral Open Market Committee are in compliance with 15 this section. 16 ‘‘(f) DIRECTIVE POLICY RULE AND FEDERAL OPEN 17 MARKET COMMITTEE NOT IN COMPLIANCE.— 18 ‘‘(1) IN the Comptroller General 19 of the United States determines that the Directive 20 Policy Rule and the Federal Open Market Com- 21 mittee are not in compliance with this section in the 22 report submitted pursuant to subsection (d), or that 23 the updated version of the Directive Policy Rule and 24 the Federal Open Market Committee are not in com- 25 pliance with this section in the report submitted pur- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—If 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00496 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 497 1 suant to subsection (e)(2), the Chairman of the 2 Board of Governors of the Federal Reserve System 3 shall, if requested by the chairman of either of the 4 appropriate congressional committees, not later than 5 7 legislative days after such request, testify before 6 such committee as to why the Directive Policy Rule, 7 the updated version, or the Federal Open Market 8 Committee is not in compliance. 9 ‘‘(2) GAO AUDIT.—Notwithstanding subsection 10 (b) of section 714 of title 31, United States Code, 11 upon submitting a report of noncompliance pursuant 12 to subsection (d) or subsection (e)(2) and after the 13 period of 7 legislative days described in paragraph 14 (1), the Comptroller General shall audit the conduct 15 of monetary policy by the Board of Governors of the 16 Federal Reserve System and the Federal Open Mar- 17 ket Committee upon request of the appropriate con- 18 gressional committee. Such committee may specify 19 the parameters of such audit. 20 ‘‘(g) CONGRESSIONAL HEARINGS.—The Chairman of 21 the Board of Governors of the Federal Reserve System 22 shall, if requested by the chairman of either of the appro23 priate congressional committees and not later than 7 legis24 lative days after such request, appear before such com- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00497 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 498 1 mittee to explain any change to the Directive Policy 2 Rule.’’. 3 SEC. 1002. FEDERAL OPEN MARKET COMMITTEE BLACK- 4 5 OUT PERIOD. Section 12A of the Federal Reserve Act (12 U.S.C. 6 263) is amended by adding at the end the following new 7 subsection: 8 ‘‘(d) BLACKOUT PERIOD.— 9 ‘‘(1) IN a blackout period, 10 the only public communications that may be made 11 by members and staff of the Committee with respect 12 to macroeconomic or financial developments or about 13 current or prospective monetary policy issues are the 14 following: 15 ‘‘(A) The dissemination of published data, 16 surveys, and reports that have been cleared for 17 publication by the Board of Governors of the 18 Federal Reserve System. 19 ‘‘(B) Answers to technical questions spe- 20 cific to a data release. 21 ‘‘(C) Communications with respect to the 22 prudential or supervisory functions of the 23 Board of Governors. 24 ‘‘(2) BLACKOUT 25 15:00 Apr 19, 2017 PERIOD DEFINED.—For pur- poses of this subsection, and with respect to a meet- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—During Jkt 000000 (657255 10) PO 00000 Frm 00498 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 499 1 ing of the Committee described under subsection (a), 2 the term ‘blackout period’ means the time period 3 that— 4 ‘‘(A) begins immediately after midnight on 5 the day that is one week prior to the date on 6 which such meeting takes place; and 7 ‘‘(B) ends at midnight on the day after the 8 date on which such meeting takes place. 9 ‘‘(3) EXEMPTION FOR CHAIRMAN OF THE 10 BOARD OF GOVERNORS.—Nothing 11 shall prohibit the Chairman of the Board of Gov- 12 ernors of the Federal Reserve System from partici- 13 pating in or issuing public communications.’’. 14 15 in this section SEC. 1003. PUBLIC TRANSCRIPTS OF FOMC MEETINGS. Section 12A of the Federal Reserve Act (12 U.S.C. 16 263), as amended by section 1002, is further amended by 17 adding at the end the following: 18 ‘‘(e) PUBLIC TRANSCRIPTS OF MEETINGS.—The 19 Committee shall— 20 ‘‘(1) record all meetings of the Committee; and 21 ‘‘(2) make the full transcript of such meetings 22 available to the public.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00499 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 500 1 SEC. 1004. MEMBERSHIP OF FEDERAL OPEN MARKET COM- 2 3 MITTEE. Section 12A(a) of the Federal Reserve Act (12 4 U.S.C. 263(a)) is amended— 5 6 (1) in the first sentence, by striking ‘‘five’’ and inserting ‘‘six’’; 7 (2) in the second sentence, by striking ‘‘One by 8 the board of directors’’ and all that follows through 9 the period at the end and inserting the following: 10 ‘‘One by the boards of directors of the Federal Re- 11 serve Banks of New York and Boston; one by the 12 boards of directors of the Federal Reserve Banks of 13 Philadelphia and Cleveland; one by the boards of di- 14 rectors of the Federal Reserve Banks of Richmond 15 and Atlanta; one by the boards of directors of the 16 Federal Reserve Banks of Chicago and St. Louis; 17 one by the boards of directors of the Federal Re- 18 serve Banks of Minneapolis and Kansas City; and 19 one by the boards of directors of the Federal Re- 20 serve Banks of Dallas and San Francisco.’’; and 21 (3) by inserting after the second sentence the 22 following: ‘‘In odd numbered calendar years, one 23 representative shall be elected from each of the Fed- 24 eral Reserve Banks of Boston, Philadelphia, Rich- 25 mond, Chicago, Minneapolis, and Dallas. In even- 26 numbered calendar years, one representative shall be G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00500 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 501 1 elected from each of the Federal Reserve Banks of 2 New York, Cleveland, Atlanta, St. Louis, Kansas 3 City, and San Francisco.’’. 4 SEC. 1005. FREQUENCY OF TESTIMONY OF THE CHAIRMAN 5 OF THE BOARD OF GOVERNORS OF THE FED- 6 ERAL RESERVE SYSTEM TO CONGRESS. 7 (a) IN GENERAL.—Section 2B of the Federal Reserve 8 Act (12 U.S.C. 225b) is amended— 9 (1) by striking ‘‘semi-annual’’ each place it ap- 10 pears and inserting ‘‘quarterly’’; and 11 (2) in subsection (a)(2)— 12 (A) by inserting ‘‘and October 20’’ after 13 ‘‘July 20’’ each place it appears; and 14 (B) by inserting ‘‘and May 20’’ after 15 16 ‘‘February 20’’ each place it appears. (b) CONFORMING AMENDMENT.—Paragraph (12) of 17 section 10 of the Federal Reserve Act (12 U.S.C. 18 247b(12)) is amended by striking ‘‘semi-annual’’ and in19 serting ‘‘quarterly’’. 20 SEC. 1006. VICE CHAIRMAN FOR SUPERVISION REPORT RE- 21 22 QUIREMENT. Paragraph (12) of section 10 of the Federal Reserve 23 Act (12 U.S.C. 247(b)) is amended— 24 25 (1) by redesignating such paragraph as paragraph (11); and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00501 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 502 1 (2) in such paragraph, by adding at the end the 2 following: ‘‘In each such appearance, the Vice Chair- 3 man for Supervision shall provide written testimony 4 that includes the status of all pending and antici- 5 pated rulemakings that are being made by the 6 Board of Governors of the Federal Reserve System. 7 If, at the time of any appearance described in this 8 paragraph, the position of Vice Chairman for Super- 9 vision is vacant, the Vice Chairman for the Board of 10 Governors of the Federal Reserve System (who has 11 the responsibility to serve in the absence of the 12 Chairman) shall appear instead and provide the re- 13 quired written testimony. If, at the time of any ap- 14 pearance described in this paragraph, both Vice 15 Chairman positions are vacant, the Chairman of the 16 Board of Governors of the Federal Reserve System 17 shall appear instead and provide the required writ- 18 ten testimony.’’. 19 SEC. 1007. SALARIES, FINANCIAL DISCLOSURES, AND OF- 20 FICE STAFF OF THE BOARD OF GOVERNORS 21 OF THE FEDERAL RESERVE SYSTEM. 22 (a) IN GENERAL.—Section 11 of the Federal Reserve 23 Act (12 U.S.C. 248) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00502 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 503 1 (1) by redesignating the second subsection (s) 2 (relating to ‘‘Assessments, Fees, and Other Charges 3 for Certain Companies’’) as subsection (t); and 4 (2) by inserting before subsection (w), as added 5 by section 371(a), the following new subsections: 6 ‘‘(u) ETHICS STANDARDS 7 ‘‘(1) PROHIBITED AND EM- AND RESTRICTED FINANCIAL INTERESTS AND TRANSACTIONS.—The members and 10 employees of the Board of Governors of the Federal 11 Reserve System shall be subject to the provisions 12 under section 4401.102 of title 5, Code of Federal 13 Regulations, to the same extent as such provisions 14 apply to an employee of the Securities and Exchange 15 Commission. 16 ‘‘(2) TREATMENT OF BROKERAGE ACCOUNTS 17 AND AVAILABILITY OF ACCOUNT STATEMENTS.—The 18 members and employees of the Board of Governors 19 of the Federal Reserve System shall— 20 ‘‘(A) disclose all brokerage accounts that 21 the member or employee maintains, as well as 22 any accounts in which the member or employee 23 controls trading or has a financial interest (in- 24 cluding managed accounts, trust accounts, in- 25 vestment G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MEMBERS PLOYEES.— 8 9 FOR 15:00 Apr 19, 2017 Jkt 000000 club accounts, and accounts of (657255 10) PO 00000 Frm 00503 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 504 1 spouses or minor children who live with the 2 member or employee); and 3 ‘‘(B) with respect to any securities account 4 that the member or employee is required to dis- 5 close to the Board of Governors, authorize the 6 brokers and dealers of such account to send du- 7 plicate account statements directly to Board of 8 Governors. 9 ‘‘(3) PROHIBITIONS 10 PLOYMENT AND ACTIVITIES.—The 11 ployees of the Board of Governors of the Federal 12 Reserve System shall be subject to the prohibitions 13 related to outside employment and activities de- 14 scribed under section 4401.103(c) of title 5, Code of 15 Federal Regulations, to the same extent as such pro- 16 hibitions apply to an employee of the Securities and 17 Exchange Commission. 18 ‘‘(4) ADDITIONAL ETHICS members and em- STANDARDS.—The 19 members and employees of the Board of Governors 20 of the Federal Reserve System shall be subject to— 21 ‘‘(A) the employee responsibilities and con- 22 duct regulations of the Office of Personnel 23 Management under part 735 of title 5, Code of 24 Federal Regulations; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RELATED TO OUTSIDE EM- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00504 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 505 1 ‘‘(B) the canons of ethics contained in sub- 2 part C of part 200 of title 17, Code of Federal 3 Regulations, to the same extent as such subpart 4 applies to the employees of the Securities and 5 Exchange Commission; and 6 ‘‘(C) the regulations concerning the con- 7 duct of members and employees and former 8 members and employees contained in subpart M 9 of part 200 of title 17, Code of Federal Regula- 10 tions, to the same extent as such subpart ap- 11 plies to the employees of the Securities and Ex- 12 change Commission. 13 14 ‘‘(v) DISCLOSURE OF CIAL INFORMATION.—The STAFF SALARIES AND FINAN- Board of Governors of the Fed- 15 eral Reserve System shall make publicly available, on the 16 website of the Board of Governors, a searchable database 17 that contains the names of all members, officers, and em18 ployees of the Board of Governors who receive an annual 19 salary in excess of the annual rate of basic pay for GS– 20 15 of the General Schedule, and— 21 ‘‘(1) the yearly salary information for such indi- 22 viduals, along with any nonsalary compensation re- 23 ceived by such individuals; and 24 25 ‘‘(2) any financial disclosures required to be made by such individuals.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00505 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 506 1 (b) OFFICE STAFF 2 BOARD OF FOR EACH MEMBER OF THE GOVERNORS.—Subsection (l) of section 11 of 3 the Federal Reserve Act (12 U.S.C. 248) is amended by 4 adding at the end the following: ‘‘Each member of the 5 Board of Governors of the Federal Reserve System may 6 employ, at a minimum, 2 individuals, with such individuals 7 selected by such member and the salaries of such individ8 uals set by such member. A member may employ addi9 tional individuals as determined necessary by the Board 10 of Governors.’’. 11 SEC. 1008. AMENDMENTS TO POWERS OF THE BOARD OF 12 GOVERNORS OF THE FEDERAL RESERVE SYS- 13 TEM. 14 (a) IN GENERAL.—Section 13(3) of the Federal Re- 15 serve Act (12 U.S.C. 343(3)), as amended by section 16 111(b)(3), is further amended— 17 (1) in subparagraph (A)— 18 (A) by inserting ‘‘that pose a threat to the 19 financial stability of the United States’’ after 20 ‘‘unusual and exigent circumstances’’; and 21 (B) by inserting ‘‘and by the affirmative 22 vote of not less than nine presidents of the Fed- 23 eral reserve banks’’ after ‘‘five members’’; 24 (2) in subparagraph (B)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00506 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 507 1 (A) in clause (i), by inserting at the end 2 the following: ‘‘Federal reserve banks may not 3 accept equity securities issued by the recipient 4 of any loan or other financial assistance under 5 this paragraph as collateral. Not later than 6 6 months after the date of enactment of this sen- 7 tence, the Board shall, by rule, establish— 8 ‘‘(I) a method for determining 9 the sufficiency of the collateral re- 10 quired under this paragraph; 11 ‘‘(II) acceptable classes of collat- 12 eral; 13 ‘‘(III) the amount of any dis- 14 count on the value of the collateral 15 that the Federal reserve banks will 16 apply for purposes of calculating the 17 sufficiency of collateral under this 18 paragraph; and 19 ‘‘(IV) a method for obtaining 20 independent appraisals of the value of 21 collateral the Federal reserve banks 22 receive.’’; and 23 (B) in clause (ii)— 24 (i) by striking the second sentence; 25 and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00507 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 508 1 (ii) by inserting after the first sen- 2 tence the following: ‘‘A borrower shall not 3 be eligible to borrow from any emergency 4 lending program or facility unless the 5 Board and all Federal banking regulators 6 with jurisdiction over the borrower certify 7 that, at the time the borrower initially bor- 8 rows under the program or facility, the 9 borrower is not insolvent.’’; 10 11 (3) by inserting ‘‘financial institution’’ before ‘‘participant’’ each place such term appears; 12 13 (4) in subparagraph (D)(i), by inserting ‘‘financial institution’’ before ‘‘participants’’; and 14 15 (5) by adding at the end the following new subparagraphs: 16 ‘‘(E) PENALTY 17 ‘‘(i) IN GENERAL.—Not later than 6 18 months after the date of enactment of this 19 subparagraph, the Board shall, with re- 20 spect to a recipient of any loan or other fi- 21 nancial assistance under this paragraph, 22 establish by rule a minimum interest rate 23 on the principal amount of any loan or 24 other financial assistance. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 RATE.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00508 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 509 1 ‘‘(ii) MINIMUM 2 FINED.—In 3 ‘minimum interest rate’ shall mean the 4 sum of— this subparagraph, the term 5 ‘‘(I) the average of the secondary 6 discount rate of all Federal Reserve 7 banks over the most recent 90-day pe- 8 riod; and 9 ‘‘(II) the average of the dif- 10 ference between a distressed corporate 11 bond yield index (as defined by rule of 12 the Board) and a bond yield index of 13 debt issued by the United States (as 14 defined by rule of the Board) over the 15 most recent 90-day period. 16 ‘‘(F) FINANCIAL 17 PANT DEFINED.—For 18 graph, the term ‘financial institution partici- 19 pant’— INSTITUTION PARTICI- purposes of this para- 20 ‘‘(i) means a company that is pre- 21 dominantly engaged in financial activities 22 (as defined in section 102(a) of the Dodd- 23 Frank Wall Street Reform and Consumer 24 Protection Act (12 U.S.C. 5311(a))); and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 INTEREST RATE DE- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00509 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 510 1 ‘‘(ii) does not include an agency de- 2 scribed in subparagraph (W) of section 3 5312(a)(2) of title 31, United States Code, 4 or an entity controlled or sponsored by 5 such an agency.’’. 6 (b) CONFORMING AMENDMENT.—Section 7 11(r)(2)(A) of the Federal Reserve Act (12 U.S.C. 8 248(r)(2)(A)) is amended— 9 10 (1) in clause (ii)(IV), by striking ‘‘; and’’ and inserting a semicolon; 11 12 (2) in clause (iii), by striking the period at the end and inserting ‘‘; and’’; and 13 14 (3) by adding at the end the following new clause: 15 ‘‘(iv) the available members secure the affirma- 16 tive vote of not less than nine presidents of the Fed- 17 eral reserve banks.’’. 18 SEC. 1009. INTEREST RATES ON BALANCES MAINTAINED AT 19 A FEDERAL RESERVE BANK BY DEPOSITORY 20 INSTITUTIONS ESTABLISHED BY FEDERAL 21 OPEN MARKET COMMITTEE. 22 Subparagraph (A) of section 19(b)(12) of the Federal 23 Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by in24 serting ‘‘established by the Federal Open Market Com25 mittee’’ after ‘‘rate or rates’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00510 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 511 1 SEC. 1010. AUDIT REFORM AND TRANSPARENCY FOR THE 2 BOARD OF GOVERNORS OF THE FEDERAL RE- 3 SERVE SYSTEM. 4 (a) IN GENERAL.—Notwithstanding section 714 of 5 title 31, United States Code, or any other provision of law, 6 the Comptroller General of the United States shall annu7 ally complete an audit of the Board of Governors of the 8 Federal Reserve System and the Federal reserve banks 9 under subsection (b) of such section 714 within 12 months 10 after the date of the enactment of this Act. 11 (b) REPORT.— 12 (1) IN later than 90 days after 13 each audit required pursuant to subsection (a) is 14 completed, the Comptroller General— 15 (A) shall submit to Congress a report on 16 such audit; and 17 (B) shall make such report available to the 18 Speaker of the House, the majority and minor- 19 ity leaders of the House of Representatives, the 20 majority and minority leaders of the Senate, the 21 Chairman and Ranking Member of the com- 22 mittee and each subcommittee of jurisdiction in 23 the House of Representatives and the Senate, 24 and any other Member of Congress who re- 25 quests the report. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL.—Not 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00511 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 512 1 (2) CONTENTS.—The report under paragraph 2 (1) shall include a detailed description of the find- 3 ings and conclusion of the Comptroller General with 4 respect to the audit that is the subject of the report, 5 together with such recommendations for legislative 6 or administrative action as the Comptroller General 7 may determine to be appropriate. 8 (c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 9 (b) of section 714 of title 31, United States Code, is 10 amended by striking the second sentence. 11 (d) TECHNICAL 12 (1) IN 13 CONFORMING AMENDMENTS.— GENERAL.—Section 714 of title 31, United States Code, is amended— 14 (A) in subsection (d)(3), by striking ‘‘or 15 (f)’’ each place such term appears; 16 (B) in subsection (e), by striking ‘‘the 17 third undesignated paragraph of section 13’’ 18 and inserting ‘‘section 13(3)’’; and 19 (C) by striking subsection (f). 20 (2) FEDERAL RESERVE ACT.—Subsection (s) 21 (relating to ‘‘Federal Reserve Transparency and Re- 22 lease of Information’’) of section 11 of the Federal 23 Reserve Act (12 U.S.C. 248) is amended— 24 (A) in paragraph (4)(A), by striking ‘‘has 25 the same meaning as in section 714(f)(1)(A) of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00512 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 513 1 title 31, United States Code’’ and inserting 2 ‘‘means a program or facility, including any 3 special purpose vehicle or other entity estab- 4 lished by or on behalf of the Board of Gov- 5 ernors of the Federal Reserve System or a Fed- 6 eral reserve bank, authorized by the Board of 7 Governors under section 13(3), that is not sub- 8 ject to audit under section 714(e) of title 31, 9 United States Code’’; 10 (B) in paragraph (6), by striking ‘‘or in 11 section 714(f)(3)(C) of title 31, United States 12 Code, the information described in paragraph 13 (1) and information concerning the transactions 14 described in section 714(f) of such title,’’ and 15 inserting ‘‘the information described in para- 16 graph (1)’’; and 17 (C) in paragraph (7), by striking ‘‘and sec- 18 tion 13(3)(C), section 714(f)(3)(C) of title 31, 19 United States Code, and’’ and inserting ‘‘, sec- 20 tion 13(3)(C), and’’. 21 SEC. 1011. ESTABLISHMENT OF A CENTENNIAL MONETARY 22 23 COMMISSION. (a) FINDINGS.—Congress finds the following: 24 (1) The Constitution endows Congress with the 25 power ‘‘to coin money, regulate the value thereof’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00513 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 514 1 (2) Following the financial crisis known as the 2 Panic of 1907, Congress established the National 3 Monetary Commission to provide recommendations 4 for the reform of the financial and monetary systems 5 of the United States. 6 (3) Incorporating several of the recommenda- 7 tions of the National Monetary Commission, Con- 8 gress created the Federal Reserve System in 1913. 9 As currently organized, the Federal Reserve System 10 consists of the Board of Governors in Washington, 11 District of Columbia, and the Federal reserve banks 12 organized into 12 districts around the United States. 13 The stockholders of the 12 Federal reserve banks in- 14 clude national and certain State-chartered commer- 15 cial banks, which operate on a fractional reserve 16 basis. 17 (4) Originally, Congress gave the Federal Re- 18 serve System a monetary mandate to provide an 19 elastic currency, within the context of a gold stand- 20 ard, in response to seasonal fluctuations in the de- 21 mand for currency. 22 (5) Congress also gave the Federal Reserve 23 System a financial stability mandate to serve as the 24 lender of last resort to solvent but illiquid banks 25 during a financial crisis. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00514 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 515 1 (6) In 1977, Congress changed the monetary 2 mandate of the Federal Reserve System to a dual 3 mandate for maximum employment and stable 4 prices. 5 (7) Empirical studies and historical evidence, 6 both within the United States and in other coun- 7 tries, demonstrate that price stability is desirable be- 8 cause both inflation and deflation damage the econ- 9 omy. 10 (8) The economic challenge of recent years— 11 most notably the bursting of the housing bubble, the 12 financial crisis of 2008, and the ensuing anemic re- 13 covery—have occurred at great cost in terms of lost 14 jobs and output. 15 (9) Policymakers are reexamining the structure 16 and functioning of financial institutions and markets 17 to determine what, if any, changes need to be made 18 to place the financial system on a stronger, more 19 sustainable path going forward. 20 (10) The Federal Reserve System has taken ex- 21 traordinary actions in response to the recent eco- 22 nomic challenges. 23 (11) The Federal Open Market Committee has 24 engaged in multiple rounds of quantitative easing, 25 providing unprecedented liquidity to financial mar- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00515 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 516 1 kets, while committing to holding short-term interest 2 rates low for a seemingly indefinite period, and pur- 3 suing a policy of credit allocation by purchasing 4 Federal agency debt and mortgage-backed securities. 5 (12) In the wake of the recent extraordinary ac- 6 tions of the Federal Reserve System, Congress—con- 7 sistent with its constitutional responsibilities and as 8 it has done periodically throughout the history of the 9 United States—has once again renewed its examina- 10 tion of monetary policy. 11 (13) Central in such examination has been a re- 12 newed look at what is the most proper mandate for 13 the Federal Reserve System to conduct monetary 14 policy in the 21st century. 15 (b) ESTABLISHMENT OF A CENTENNIAL MONETARY 16 COMMISSION.—There is established a commission to be 17 known as the ‘‘Centennial Monetary Commission’’ (in this 18 section referred to as the ‘‘Commission’’). 19 (c) STUDY 20 REPORT ON MONETARY POLICY.— (1) STUDY.—The Commission shall— 21 (A) examine how United States monetary 22 policy since the creation of the Board of Gov- 23 ernors of the Federal Reserve System in 1913 24 has affected the performance of the United G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00516 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 517 1 States economy in terms of output, employ- 2 ment, prices, and financial stability over time; 3 (B) evaluate various operational regimes 4 under which the Board of Governors of the 5 Federal Reserve System and the Federal Open 6 Market Committee may conduct monetary pol- 7 icy in terms achieving the maximum sustainable 8 level of output and employment and price sta- 9 bility over the long term, including— 10 (i) discretion in determining monetary 11 policy without an operational regime; 12 (ii) price level targeting; 13 (iii) inflation rate targeting; 14 (iv) nominal gross domestic product 15 targeting (both level and growth rate); 16 (v) the use of monetary policy rules; 17 and 18 (vi) the gold standard; 19 (C) evaluate the use of macro-prudential 20 supervision and regulation as a tool of mone- 21 tary policy in terms of achieving the maximum 22 sustainable level of output and employment and 23 price stability over the long term; 24 (D) evaluate the use of the lender-of-last- 25 resort function of the Board of Governors of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00517 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 518 1 the Federal Reserve System as a tool of mone- 2 tary policy in terms of achieving the maximum 3 sustainable level of output and employment and 4 price stability over the long term; 5 (E) recommend a course for United States 6 monetary policy going forward, including— 7 (i) the legislative mandate; 8 (ii) the operational regime; 9 (iii) the securities used in open-mar- 10 ket operations; and 11 (iv) transparency issues; and 12 (F) consider the effects of the GDP output 13 and employment targets of the ‘‘dual mandate’’ 14 (both from the creation of the dual mandate in 15 1977 until the present time and estimates of 16 the future effect of the dual mandate ) on— 17 (i) United States economic activity; 18 (ii) actions of the Board of Governors 19 of the Federal Reserve System; and 20 (iii) Federal debt. 21 (2) REPORT.—Not later than 1 year after the 22 date of the enactment of this section, the Commis- 23 sion shall submit to Congress and make publicly 24 available a report containing a statement of the find- 25 ings and conclusions of the Commission in carrying G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00518 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 519 1 out the study under paragraph (1), together with 2 the recommendations the Commission considers ap- 3 propriate. In making such report, the Commission 4 shall specifically report on the considerations re- 5 quired under paragraph (1)(F). 6 (d) MEMBERSHIP.— 7 (1) NUMBER 8 (A) APPOINTED 9 VOTING MEMBERS.—The Commission shall contain 12 voting members as 10 follows: 11 (i) Six members appointed by the 12 Speaker of the House of Representatives, 13 with four members from the majority party 14 and two members from the minority party. 15 (ii) Six members appointed by the 16 President Pro Tempore of the Senate, with 17 four members from the majority party and 18 two members from the minority party. 19 (B) CHAIRMAN.—The Speaker of the 20 House of Representatives and the majority 21 leader of the Senate shall jointly designate one 22 of the members of the Commission as Chair- 23 man. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AND APPOINTMENT.— 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00519 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 520 1 (C) NON-VOTING Com- 2 mission shall contain 2 non-voting members as 3 follows: 4 (i) One member appointed by the Sec- 5 retary of the Treasury. 6 (ii) One member who is the president 7 of a district Federal reserve bank ap- 8 pointed by the Chair of the Board of Gov- 9 ernors of the Federal Reserve System. 10 11 (2) PERIOD OF APPOINTMENT.—Each member shall be appointed for the life of the Commission. 12 (3) TIMING OF APPOINTMENT.—All members of 13 the Commission shall be appointed not later than 30 14 days after the date of the enactment of this section. 15 (4) VACANCIES.—A vacancy in the Commission 16 shall not affect its powers, and shall be filled in the 17 manner in which the original appointment was 18 made. 19 (5) MEETINGS.— 20 (A) INITIAL MEETING.—The Commission 21 shall hold its initial meeting and begin the oper- 22 ations of the Commission as soon as is prac- 23 ticable. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MEMBERS.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00520 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 521 1 (B) FURTHER Commis- 2 sion shall meet upon the call of the Chair or a 3 majority of its members. 4 (6) QUORUM.—Seven voting members of the 5 Commission shall constitute a quorum but a lesser 6 number may hold hearings. 7 (7) MEMBER OF CONGRESS DEFINED.—In this 8 subsection, the term ‘‘Member of Congress’’ means 9 a Senator or a Representative in, or Delegate or 10 Resident Commissioner to, the Congress. 11 (e) POWERS.— 12 (1) HEARINGS AND SESSIONS.—The Commis- 13 sion or, on the authority of the Commission, any 14 subcommittee or member thereof, may, for the pur- 15 pose of carrying out this section, hold hearings, sit 16 and act at times and places, take testimony, receive 17 evidence, or administer oaths as the Commission or 18 such subcommittee or member thereof considers ap- 19 propriate. 20 (2) CONTRACT AUTHORITY.—To the extent or 21 in the amounts provided in advance in appropriation 22 Acts, the Commission may contract with and com- 23 pensate government and private agencies or persons 24 to enable the Commission to discharge its duties G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 MEETINGS.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00521 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 522 1 under this section, without regard to section 3709 of 2 the Revised Statutes (41 U.S.C. 5). 3 (3) OBTAINING 4 (A) IN GENERAL.—The Commission is au- 5 thorized to secure directly from any executive 6 department, bureau, agency, board, commission, 7 office, independent establishment, or instrumen- 8 tality of the Government, any information, in- 9 cluding suggestions, estimates, or statistics, for 10 the purposes of this section. 11 (B) REQUESTING OFFICIAL DATA.—The 12 head of such department, bureau, agency, 13 board, commission, office, independent estab- 14 lishment, or instrumentality of the government 15 shall, to the extent authorized by law, furnish 16 such information upon request made by— 17 (i) the Chair; 18 (ii) the Chair of any subcommittee 19 created by a majority of the Commission; 20 or 21 (iii) any member of the Commission 22 designated by a majority of the commission 23 to request such information. 24 (4) ASSISTANCE G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OFFICIAL DATA.— 15:00 Apr 19, 2017 Jkt 000000 FROM FEDERAL AGENCIES.— (657255 10) PO 00000 Frm 00522 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 523 1 (A) SERVICES ADMINISTRA- 2 TION.—The 3 shall provide to the Commission on a reimburs- 4 able basis administrative support and other 5 services for the performance of the functions of 6 the Commission. 7 Administrator of General Services (B) OTHER DEPARTMENTS AND AGEN- 8 CIES.—In 9 in subparagraph (A), at the request of the 10 Commission, departments and agencies of the 11 United States shall provide such services, funds, 12 facilities, staff, and other support services as 13 may be authorized by law. 14 (5) POSTAL addition to the assistance prescribed SERVICE.—The Commission may 15 use the United States mails in the same manner and 16 under the same conditions as other departments and 17 agencies of the United States. 18 (f) COMMISSION PERSONNEL.— 19 20 (1) APPOINTMENT AND COMPENSATION OF STAFF.— 21 (A) IN GENERAL.—Subject to rules pre- 22 scribed by the Commission, the Chair may ap- 23 point and fix the pay of the executive director 24 and other personnel as the Chair considers ap- 25 propriate. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 GENERAL 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00523 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 524 1 (B) APPLICABILITY CIVIL SERVICE 2 LAWS.—The 3 appointed without regard to the provisions of 4 title 5, United States Code, governing appoint- 5 ments in the competitive service, and may be 6 paid without regard to the provisions of chapter 7 51 and subchapter III of chapter 53 of that 8 title relating to classification and General 9 Schedule pay rates, except that an individual so 10 appointed may not receive pay in excess of level 11 V of the Executive Schedule. 12 (2) CONSULTANTS.—The Commission may pro- 13 cure temporary and intermittent services under sec- 14 tion 3109(b) of title 5, United States Code, but at 15 rates for individuals not to exceed the daily equiva- 16 lent of the rate of pay for a person occupying a posi- 17 tion at level IV of the Executive Schedule. 18 (3) STAFF staff of the Commission may be OF FEDERAL AGENCIES.—Upon re- 19 quest of the Commission, the head of any Federal 20 department or agency may detail, on a reimbursable 21 basis, any of the personnel of such department or 22 agency to the Commission to assist it in carrying out 23 its duties under this section. 24 (g) TERMINATION OF COMMISSION.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00524 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 525 1 (1) IN GENERAL.—The Commission shall termi- 2 nate 6 months after the date on which the report is 3 submitted under subsection (c)(2). 4 (2) ADMINISTRATIVE ACTIVITIES BEFORE TER- 5 MINATION.—The 6 tween the submission of its report and its termi- 7 nation for the purpose of concluding its activities, 8 including providing testimony to the committee of 9 Congress concerning its report. 10 Commission may use the period be- (h) AUTHORIZATION OF APPROPRIATIONS.—There is 11 authorized to be appropriated to carry out this section 12 $1,000,000, which shall remain available until the date on 13 which the Commission terminates. 17 TITLE XI—IMPROVING INSURANCE COORDINATION THROUGH AN INDEPENDENT ADVOCATE 18 SEC. 1101. REPEAL OF THE FEDERAL INSURANCE OFFICE; 19 CREATION OF THE OFFICE OF THE INDE- 20 PENDENT INSURANCE ADVOCATE. 14 15 16 21 (a) ESTABLISHMENT.—Section 313 of title 31, 22 United States Code, is amended to read as follows (and 23 conforming the table of contents for chapter 3 of such title 24 accordingly): G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00525 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 526 1 ‘‘§ 313. Office of the Independent Insurance Advocate 2 ‘‘(a) ESTABLISHMENT.—There is established in the 3 Department of the Treasury a bureau to be known as the 4 Office of the Independent Insurance Advocate (in this sec5 tion referred to as the ‘Office’). 6 ‘‘(b) INDEPENDENT INSURANCE ADVOCATE.— 7 ‘‘(1) ESTABLISHMENT chief 8 officer of the Office of the Independent Insurance 9 Advocate shall be known as the Independent Insur- 10 ance Advocate. The Independent Insurance Advocate 11 shall perform the duties of such office under the 12 general direction of the Secretary of the Treasury. 13 ‘‘(2) APPOINTMENT.—The Independent Insur- 14 ance Advocate shall be appointed by the President, 15 by and with the advice and consent of the Senate, 16 from among persons having insurance expertise. 17 ‘‘(3) TERM.— 18 ‘‘(A) IN GENERAL.—The Independent In- 19 surance Advocate shall serve a term of 6 years, 20 unless sooner removed by the President upon 21 reasons which shall be communicated to the 22 Senate. 23 ‘‘(B) SERVICE AFTER EXPIRATION.—If a 24 successor is not nominated and confirmed by 25 the end of the term of service of the Inde- 26 pendent Insurance Advocate, the person serving G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF POSITION.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00526 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 527 1 as Independent Insurance Advocate shall con- 2 tinue to serve until such time a successor is ap- 3 pointed and confirmed. 4 ‘‘(C) VACANCY.—An Independent Insur- 5 ance Advocate who is appointed to serve the re- 6 mainder of a predecessor’s uncompleted term 7 shall be eligible thereafter to be appointed to a 8 full 6 year term. 9 ‘‘(D) ACTING ON FINANCIAL 10 STABILITY OVERSIGHT COUNCIL.—In 11 of a vacancy in the office of the Independent 12 Insurance Advocate, and pending the appoint- 13 ment and confirmation of a successor, or during 14 the absence or disability of the Independent In- 15 surance Advocate, the Independent Member 16 shall appoint a federal official appointed by the 17 President and confirmed by the Senate from a 18 member agency of the Financial Stability Over- 19 sight Council, not otherwise serving on the 20 Council, who shall serve as a member of the 21 Council and act in the place of the Independent 22 Insurance Advocate until such vacancy, ab- 23 sence, or disability concludes. 24 ‘‘(4) EMPLOYMENT.—The Independent Insur- 25 ance Advocate shall be an employee of the Federal G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OFFICIAL 15:00 Apr 19, 2017 Jkt 000000 the event (657255 10) PO 00000 Frm 00527 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 528 1 Government within the definition of employee under 2 section 2105 of title 5, United States Code. 3 ‘‘(c) INDEPENDENCE; OVERSIGHT.— 4 ‘‘(1) INDEPENDENCE.—The Secretary of the 5 Treasury may not delay or prevent the issuance of 6 any rule or the promulgation of any regulation by 7 the Independent Insurance Advocate, and may not 8 intervene in any matter or proceeding before the 9 Independent Insurance Advocate, unless otherwise 10 specifically provided by law. 11 ‘‘(2) OVERSIGHT BY INSPECTOR GENERAL.— 12 The Office of the Independent Insurance Advocate 13 shall be an office in the establishment of the Depart- 14 ment of the Treasury for purposes of the Inspector 15 General Act of 1978 (5 U.S.C. App.). 16 ‘‘(d) RETENTION OF EXISTING STATE REGULATORY 17 AUTHORITY.—Nothing in this section or section 314 shall 18 be construed to establish or provide the Office or the De19 partment of the Treasury with general supervisory or reg20 ulatory authority over the business of insurance. 21 ‘‘(e) BUDGET.— 22 ‘‘(1) ANNUAL each fiscal 23 year, the Independent Insurance Advocate shall 24 transmit a budget estimate and request to the Sec- 25 retary of the Treasury, which shall specify the ag- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TRANSMITTAL.—For 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00528 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 529 1 gregate amount of funds requested for such fiscal 2 year for the operations of the Office of the Inde- 3 pendent Insurance Advocate. 4 ‘‘(2) INCLUSIONS.—In transmitting the pro- 5 posed budget to the President for approval, the Sec- 6 retary of the Treasury shall include— 7 ‘‘(A) an aggregate request for the Inde- 8 pendent Insurance Advocate; and 9 ‘‘(B) any comments of the Independent In- 10 surance Advocate with respect to the proposal. 11 ‘‘(3) PRESIDENT’S President 12 shall include in each budget of the United States 13 Government submitted to the Congress— 14 ‘‘(A) a separate statement of the budget 15 estimate prepared in accordance with paragraph 16 (1); 17 ‘‘(B) the amount requested by the Presi- 18 dent for the Independent Insurance Advocate; 19 and 20 ‘‘(C) any comments of the Independent In- 21 surance Advocate with respect to the proposal if 22 the Independent Insurance Advocate concludes 23 that the budget submitted by the President 24 would substantially inhibit the Independent In- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 BUDGET.—The 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00529 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 530 1 surance Advocate from performing the duties of 2 the office. 3 ‘‘(f) ASSISTANCE.—The Secretary of the Treasury 4 shall provide the Independent Insurance Advocate such 5 services, funds, facilities and other support services as the 6 Independent Insurance Advocate may request and as the 7 Secretary may approve. 8 ‘‘(g) PERSONNEL.— 9 ‘‘(1) EMPLOYEES.—The Independent Insurance 10 Advocate may fix the number of, and appoint and 11 direct, the employees of the Office, in accordance 12 with the applicable provisions of title 5, United 13 States Code. The Independent Insurance Advocate is 14 authorized to employ attorneys, analysts, economists, 15 and other employees as may be deemed necessary to 16 assist the Independent Insurance Advocate to carry 17 out the duties and functions of the Office. Unless 18 otherwise provided expressly by law, any individual 19 appointed under this paragraph shall be an employee 20 as defined in section 2105 of title 5, United States 21 Code, and subject to the provisions of such title and 22 other laws generally applicable to the employees of 23 the Executive Branch. 24 ‘‘(2) COMPENSATION.—Employees of the Office 25 shall be paid in accordance with the provisions of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00530 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 531 1 chapter 51 and subchapter III of chapter 53 of title 2 5, United States Code, relating to classification and 3 General Schedule pay rates. 4 ‘‘(3) OF TEMPORARY AND 5 INTERMITTENT SERVICES.—The 6 ance Advocate may procure temporary and intermit- 7 tent services under section 3109(b) of title 5, United 8 States Code, at rates for individuals which do not 9 exceed the daily equivalent of the annual rate of 10 basic pay prescribed for Level V of the Executive 11 Schedule under section 5316 of such title. Independent Insur- 12 ‘‘(4) DETAILS.—Any employee of the Federal 13 Government may be detailed to the Office with or 14 without reimbursement, and such detail shall be 15 without interruption or loss of civil service status or 16 privilege. An employee of the Federal Government 17 detailed to the Office shall report to and be subject 18 to oversight by the Independent Insurance Advocate 19 during the assignment to the office, and may be 20 compensated by the branch, department, or agency 21 from which the employee was detailed. 22 ‘‘(5) INTERGOVERNMENTAL PERSONNEL.—The 23 Independent Insurance Advocate may enter into 24 agreements under subchapter VI of chapter 33 of 25 title 5, United States Code, with State and local G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 PROCUREMENT 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00531 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 532 1 governments, institutions of higher education, Indian 2 tribal governments, and other eligible organizations 3 for the assignment of intermittent, part-time, and 4 full-time personnel, on a reimbursable or non-reim- 5 bursable basis. 6 ‘‘(h) ETHICS.— 7 ‘‘(1) ETHICS OFFICIAL.—The 8 Legal Counsel of the Financial Stability Oversight 9 Council, or in the absence of a Legal Counsel of the 10 Council, the designated ethics official of any Council 11 member agency, as chosen by the Independent In- 12 surance Advocate, shall be the ethics official for the 13 Independent Insurance Advocate. 14 ‘‘(2) RESTRICTION ON REPRESENTATION.—In 15 addition to any restriction under section 205(c) of 16 title18, United States Code, except as provided in 17 subsections (d) through (i) of section 205 of such 18 title, the Independent Insurance Advocate (except in 19 the proper discharge of official duties) shall not, 20 with or without compensation, represent anyone to 21 or before any officer or employee of— 22 ‘‘(A) the Financial Stability Oversight 23 Council on any matter; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 DESIGNATED 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00532 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 533 1 ‘‘(B) the Department of Justice with re- 2 spect to litigation involving a matter described 3 in subparagraph (A). 4 ‘‘(3) COMPENSATION FOR SERVICES PROVIDED 5 BY ANOTHER.—For 6 18, United States Code, and if a special government 7 employee— purposes of section 203 of title 8 ‘‘(A) the Independent Insurance Advocate 9 shall not be subject to the restrictions of sub- 10 section (a)(1) of section 203,of title 18, United 11 States Code, for sharing in compensation 12 earned by another for representations on mat- 13 ters covered by such section; and 14 ‘‘(B) a person shall not be subject to the 15 restrictions of subsection (a)(2) of such section 16 for sharing such compensation with the Inde- 17 pendent Insurance Advocate. 18 ‘‘(i) ADVISORY, TECHNICAL, AND PROFESSIONAL 19 COMMITTEES.—The Independent Insurance Advocate may 20 appoint such special advisory, technical, or professional 21 committees as may be useful in carrying out the functions 22 of the Office and the members of such committees may 23 be staff of the Office, or other persons, or both. 24 ‘‘(j) MISSION AND FUNCTIONS.— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00533 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 534 1 ‘‘(1) MISSION.—In carrying out the functions 2 under this subsection, the mission of the Office shall 3 be to act as an independent advocate on behalf of 4 the interests of United States policyholders on pru- 5 dential aspects of insurance matters of importance, 6 and to provide perspective on protecting their inter- 7 ests, separate and apart from any other Federal 8 agency or State insurance regulator. 9 10 ‘‘(2) OFFICE.—The Office shall have the authority— 11 ‘‘(A) to coordinate Federal efforts on pru- 12 dential aspects of international insurance mat- 13 ters, including representing the United States, 14 as appropriate, in the International Association 15 of Insurance Supervisors (or a successor entity) 16 and assisting the Secretary in negotiating cov- 17 ered agreements (as such term is defined in 18 subsection (q)) in coordination with States (in- 19 cluding State insurance commissioners) and the 20 United States Trade Representative; 21 ‘‘(B) to consult with the States (including 22 State insurance regulators) regarding insurance 23 matters of national importance and prudential 24 insurance matters of international importance; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00534 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 535 1 ‘‘(C) to assist the Secretary in admin- 2 istering the Terrorism Insurance Program es- 3 tablished in the Department of the Treasury 4 under the Terrorism Risk Insurance Act of 5 2002 (15 U.S.C. 6701 note); 6 ‘‘(D) to observe all aspects of the insur- 7 ance industry, including identifying issues or 8 gaps in the regulation of insurers that could 9 contribute to a systemic crisis in the insurance 10 industry or the United States financial system; 11 and 12 ‘‘(E) to make determinations and exercise 13 the authority under subsection (m) with respect 14 to covered agreements and State insurance 15 measures. 16 ‘‘(3) MEMBERSHIP 17 OVERSIGHT COUNCIL.— 18 ‘‘(A) IN GENERAL.—The Independent In- 19 surance Advocate shall serve, pursuant to sec- 20 tion 111(b)(1)(J) of the Financial Stability Act 21 of 2010 (12 U.S.C. 5321(b)(1)(J)), as a mem- 22 ber on the Financial Stability Oversight Coun- 23 cil. 24 ‘‘(B) AUTHORITY.—To assist the Financial 25 Stability Oversight Council with its responsibil- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ON FINANCIAL STABILITY 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00535 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 536 1 ities to monitor international insurance develop- 2 ments, advise the Congress, and make rec- 3 ommendations, the Independent Insurance Ad- 4 vocate shall have the authority— 5 ‘‘(i) to regularly consult with inter- 6 national insurance supervisors and inter- 7 national financial stability counterparts; 8 ‘‘(ii) to consult with the Board of 9 Governors of the Federal Reserve System 10 and the States with respect to representing 11 the United States, as appropriate, in the 12 International Association of Insurance Su- 13 pervisors (including to become a non-voting 14 member thereof), particularly on matters 15 of systemic risk; 16 ‘‘(iii) to participate at the Financial 17 Stability Board of The Group of Twenty 18 and to join with other members from the 19 United States including on matters related 20 to insurance; and 21 ‘‘(iv) to participate with the United 22 States delegation to the Organization for 23 Economic Cooperation and Development 24 and observe and participate at the Insur- 25 ance and Private Pensions Committee. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00536 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 537 1 ‘‘(4) LIMITATIONS 2 PERVISORY COLLEGES.—The 3 in any activities that it is not specifically authorized 4 to engage in under this section or any other provi- 5 sion of law, including participation in any super- 6 visory college or other meetings or fora for coopera- 7 tion and communication between the involved insur- 8 ance supervisors established for the fundamental 9 purpose of facilitating the effectiveness of super- 10 vision of entities which belong to an insurance 11 group. 12 ‘‘(k) SCOPE.—The authority of the Office as specified ON PARTICIPATION IN SU- Office may not engage 13 and limited in this section shall extend to all lines of insur14 ance except— 15 ‘‘(1) health insurance, as determined by the 16 Secretary in coordination with the Secretary of 17 Health and Human Services based on section 2791 18 of the Public Health Service Act (42 U.S.C. 300gg- 19 91); 20 ‘‘(2) long-term care insurance, except long-term 21 care insurance that is included with life or annuity 22 insurance components, as determined by the Sec- 23 retary in coordination with the Secretary of Health 24 and Human Services, and in the case of long-term 25 care insurance that is included with such compo- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00537 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 538 1 nents, the Secretary shall coordinate with the Sec- 2 retary of Health and Human Services in performing 3 the functions of the Office; and 4 ‘‘(3) crop insurance, as established by the Fed- 5 eral Crop Insurance Act (7 U.S.C. 1501 et seq.). 6 ‘‘(l) ACCESS TO INFORMATION.—In carrying out the 7 functions required under subsection (j), the Office may co8 ordinate with any relevant Federal agency and any State 9 insurance regulator (or other relevant Federal or State 10 regulatory agency, if any, in the case of an affiliate of an 11 insurer) and any publicly available sources for the provi12 sion to the Office of publicly available information. Not13 withstanding any other provision of law, each such rel14 evant Federal agency and State insurance regulator or 15 other Federal or State regulatory agency is authorized to 16 provide to the Office such data or information. 17 18 ‘‘(m) PREEMPTION PURSUANT COVERED AGREE- MENTS.— 19 ‘‘(1) STANDARDS.—A State insurance measure 20 shall be preempted pursuant to this section or sec- 21 tion 314 if, and only to the extent that the Inde- 22 pendent Insurance Advocate determines, in accord- 23 ance with this subsection, that the measure— 24 ‘‘(A) results in less favorable treatment of 25 a non-United States insurer domiciled in a for- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 TO 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00538 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 539 1 eign jurisdiction that is subject to a covered 2 agreement than a United States insurer domi- 3 ciled, licensed, or otherwise admitted in that 4 State; and 5 ‘‘(B) is inconsistent with a covered agree- 6 ment. 7 ‘‘(2) DETERMINATION.— 8 ‘‘(A) NOTICE 9 ENCY.—Before making any determination 10 under paragraph (1), the Independent Insur- 11 ance Advocate shall— 12 ‘‘(i) notify and consult with the appro- 13 priate State regarding any potential incon- 14 sistency or preemption; 15 ‘‘(ii) notify and consult with the 16 United States Trade Representative re- 17 garding any potential inconsistency or pre- 18 emption; 19 ‘‘(iii) cause to be published in the 20 Federal Register notice of the issue re- 21 garding the potential inconsistency or pre- 22 emption, including a description of each 23 State insurance measure at issue and any 24 applicable covered agreement; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF POTENTIAL INCONSIST- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00539 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 540 1 ‘‘(iv) provide interested parties a rea- 2 sonable opportunity to submit written com- 3 ments to the Office; and 4 ‘‘(v) consider any comments received. 5 ‘‘(B) SCOPE purposes of 6 this subsection, any determination of the Inde- 7 pendent Insurance Advocate regarding State in- 8 surance measures, and any preemption under 9 paragraph (1) as a result of such determina- 10 tion, shall be limited to the subject matter con- 11 tained within the covered agreement involved 12 and shall achieve a level of protection for insur- 13 ance or reinsurance consumers that is substan- 14 tially equivalent to the level of protection 15 achieved under State insurance or reinsurance 16 regulation. 17 ‘‘(C) NOTICE OF DETERMINATION OF IN- 18 CONSISTENCY.—Upon 19 tion under paragraph (1), the Director shall— 20 ‘‘(i) notify the appropriate State of 21 the determination and the extent of the in- 22 consistency; making any determina- 23 ‘‘(ii) establish a reasonable period of 24 time, which shall not be less than 30 days, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF REVIEW.—For 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00540 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 541 1 before the determination shall become ef- 2 fective; and 3 ‘‘(iii) notify the Committees on Finan- 4 cial Services and Ways and Means of the 5 House of Representatives and the Commit- 6 tees on Banking, Housing, and Urban Af- 7 fairs and Finance of the Senate. 8 ‘‘(3) NOTICE the 9 conclusion of the period referred to in paragraph 10 (2)(C)(ii), if the basis for such determination still 11 exists, the determination shall become effective and 12 the Independent Insurance Advocate shall— 13 ‘‘(A) cause to be published a notice in the 14 Federal Register that the preemption has be- 15 come effective, as well as the effective date; and 16 ‘‘(B) notify the appropriate State. 17 ‘‘(4) LIMITATION.—No State may enforce a 18 State insurance measure to the extent that such 19 measure has been preempted under this subsection. 20 ‘‘(5) APPLICABILITY OF ADMINISTRATIVE PRO- 21 CEDURES 22 made pursuant to paragraph (2) shall be subject to 23 the applicable provisions of subchapter II of chapter 24 5 of title 5, United States Code (relating to adminis- 25 trative procedure), and chapter 7 of such title (relat- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 OF EFFECTIVENESS.—Upon 15:00 Apr 19, 2017 Jkt 000000 ACT.—Determinations of inconsistency (657255 10) PO 00000 Frm 00541 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 542 1 ing to judicial review), except that in any action for 2 judicial review of a determination of inconsistency, 3 the court shall determine the matter de novo. 4 ‘‘(n) CONSULTATION.—The Independent Insurance 5 Advocate shall consult with State insurance regulators, in6 dividually or collectively, to the extent the Independent In7 surance Advocate determines appropriate, in carrying out 8 the functions of the Office. 9 ‘‘(o) NOTICES AND REQUESTS FOR COMMENT.—In 10 addition to the other functions and duties specified in this 11 section, the Independent Insurance Advocate may pre12 scribe such notices and requests for comment in the Fed13 eral Register as are deemed necessary related to and gov14 erning the manner in which the duties and authorities of 15 the Independent Insurance Advocate are carried out; 16 ‘‘(p) SAVINGS PROVISIONS.—Nothing in this section 17 shall— 18 ‘‘(1) preempt— 19 ‘‘(A) any State insurance measure that 20 governs any insurer’s rates, premiums, under- 21 writing, or sales practices; 22 ‘‘(B) any State coverage requirements for 23 insurance; 24 ‘‘(C) the application of the antitrust laws 25 of any State to the business of insurance; or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00542 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 543 1 ‘‘(D) any State insurance measure gov- 2 erning the capital or solvency of an insurer, ex- 3 cept to the extent that such State insurance 4 measure results in less favorable treatment of a 5 non-United State insurer than a United States 6 insurer; or 7 ‘‘(2) affect the preemption of any State insur- 8 ance measure otherwise inconsistent with and pre- 9 empted by Federal law. 10 11 ‘‘(q) RETENTION NANCIAL OF AUTHORITY OF FEDERAL FI- REGULATORY AGENCIES.—Nothing in this sec- 12 tion or section 314 shall be construed to limit the author13 ity of any Federal financial regulatory agency, including 14 the authority to develop and coordinate policy, negotiate, 15 and enter into agreements with foreign governments, au16 thorities, regulators, and multinational regulatory commit17 tees and to preempt State measures to affect uniformity 18 with international regulatory agreements. 19 ‘‘(r) RETENTION OF AUTHORITY OF UNITED STATES 20 TRADE REPRESENTATIVE.—Nothing in this section or 21 section 314 shall be construed to affect the authority of 22 the Office of the United States Trade Representative pur23 suant to section 141 of the Trade Act of 1974 (19 U.S.C. 24 2171) or any other provision of law, including authority 25 over the development and coordination of United States G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00543 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 544 1 international trade policy and the administration of the 2 United States trade agreements program. 3 ‘‘(s) CONGRESSIONAL TESTIMONY.—The Inde- 4 pendent Insurance Advocate shall appear before the Com5 mittee on Financial Services of the House of Representa6 tives and the Committee on Banking, Housing, and Urban 7 Affairs at semi-annual hearings and shall provide testi8 mony, which shall include submitting written testimony in 9 advance of such appearances to such committees and to 10 the Committee on Ways and Means of the House of Rep11 resentatives and the Committee on Finance of the Senate, 12 on the following matters: 13 14 ‘‘(1) OFFICE efforts, activi- ties, objectives, and plans of the Office. 15 ‘‘(2) SECTION 313(L) ACTIONS.—Any actions 16 taken by the Office pursuant to subsection (l) (re- 17 garding preemption pursuant to covered agree- 18 ments). 19 20 ‘‘(3) INSURANCE INDUSTRY.—The state of, and developments in, the insurance industry. 21 ‘‘(4) U.S. AND GLOBAL INSURANCE AND REIN- 22 SURANCE MARKETS.—The 23 global insurance and reinsurance markets and the 24 critical role such markets plays in supporting insur- 25 ance in the United States and the ongoing impacts G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 ACTIVITIES.—The 15:00 Apr 19, 2017 Jkt 000000 breadth and scope of the (657255 10) PO 00000 Frm 00544 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 545 1 of part II of the Nonadmitted and Reinsurance Re- 2 form Act of 2010 on the ability of State regulators 3 to access reinsurance information for regulated com- 4 panies in their jurisdictions. 5 ‘‘(5) OTHER.—Any other matters as deemed 6 relevant by the Independent Insurance Advocate or 7 requested by such Committees. 8 ‘‘(t) REPORT UPON END OF TERM OF OFFICE.—Not 9 later than two months prior to the expiration of the term 10 of office, or discontinuation of service, of each individual 11 serving as the Independent Insurance Advocate, the Inde12 pendent Insurance Advocate shall submit a report to the 13 Committees on Financial Services and Ways and Means 14 of the House of Representatives and the Committees on 15 Banking, Housing, and Urban Affairs and Finance of the 16 Senate setting forth recommendations regarding the Fi17 nancial Stability Oversight Council and the role, duties, 18 and functions of the Independent Insurance Advocate. 19 ‘‘(u) DEFINITIONS.—In this section and section 314, 20 the following definitions shall apply: 21 ‘‘(1) AFFILIATE.—The term ‘affiliate’ means, 22 with respect to an insurer, any person who controls, 23 is controlled by, or is under common control with the 24 insurer. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00545 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 546 1 ‘‘(2) COVERED term ‘cov- 2 ered agreement’ means a written bilateral or multi- 3 lateral agreement regarding prudential measures 4 with respect to the business of insurance or reinsur- 5 ance that— 6 ‘‘(A) is entered into between the United 7 States and one or more foreign governments, 8 authorities, or regulatory entities; and 9 ‘‘(B) relates to the recognition of pruden- 10 tial measures with respect to the business of in- 11 surance or reinsurance that achieves a level of 12 protection for insurance or reinsurance con- 13 sumers that is substantially equivalent to the 14 level of protection achieved under State insur- 15 ance or reinsurance regulation. 16 ‘‘(3) INSURER.—The term ‘insurer’ means any 17 person engaged in the business of insurance, includ- 18 ing reinsurance. 19 ‘‘(4) FEDERAL FINANCIAL REGULATORY AGEN- 20 CY.—The 21 means the Department of the Treasury, the Board 22 of Governors of the Federal Reserve System, the Of- 23 fice of the Comptroller of the Currency, the Office 24 of Thrift Supervision, the Securities and Exchange 25 Commission, the Commodity Futures Trading Com- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 AGREEMENT.—The 15:00 Apr 19, 2017 Jkt 000000 term ‘Federal financial regulatory agency’ (657255 10) PO 00000 Frm 00546 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 547 1 mission, the Federal Deposit Insurance Corporation, 2 the Federal Housing Finance Agency, or the Na- 3 tional Credit Union Administration. 4 ‘‘(5) FINANCIAL 5 CIL.—The 6 cil ’ means the Financial Stability Oversight Council 7 established under section 111(a) of the Dodd-Frank 8 Wall Street Reform and Consumer Protection Act 9 (12 U.S.C. 5321(a)). 10 term ‘Financial Stability Oversight Coun- ‘‘(6) MEMBER AGENCY.—The term ‘member 11 agency’ has the meaning given such term in section 12 111(a) of the Dodd-Frank Wall Street Reform and 13 Consumer Protection Act (12 U.S.C. 5321(a)). 14 ‘‘(7) NON-UNITED STATES INSURER.—The term 15 ‘non-United States insurer’ means an insurer that is 16 organized under the laws of a jurisdiction other than 17 a State, but does not include any United States 18 branch of such an insurer. 19 ‘‘(8) OFFICE.—The term ‘Office’ means the Of- 20 fice of the Independent Insurance Advocate estab- 21 lished by this section. 22 ‘‘(9) STATE INSURANCE MEASURE.—The term 23 ‘State insurance measure’ means any State law, reg- 24 ulation, administrative ruling, bulletin, guideline, or G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 STABILITY OVERSIGHT COUN- 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00547 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 548 1 practice relating to or affecting prudential measures 2 applicable to insurance or reinsurance. 3 ‘‘(10) STATE INSURANCE REGULATOR.—The 4 term ‘State insurance regulator’ means any State 5 regulatory authority responsible for the supervision 6 of insurers. 7 ‘‘(11) SUBSTANTIALLY EQUIVALENT TO THE 8 LEVEL OF PROTECTION ACHIEVED.—The 9 stantially equivalent to the level of protection 10 achieved’ means the prudential measures of a for- 11 eign government, authority, or regulatory entity 12 achieve a similar outcome in consumer protection as 13 the outcome achieved under State insurance or rein- 14 surance regulation. 15 16 ‘‘(12) UNITED STATES INSURER.—The term ‘United States insurer’ means— 17 ‘‘(A) an insurer that is organized under 18 the laws of a State; or 19 ‘‘(B) a United States branch of a non- 20 21 term ‘sub- United States insurer.’’. (b) PAY AT LEVEL III OF EXECUTIVE SCHEDULE.— 22 Section 5314 of title 5, United States Code, is amended 23 by adding at the end the following new item: 24 25 ‘‘Independent Insurance Advocate, Department of the Treasury.’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00548 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 549 1 (c) VOTING MEMBER OF FSOC.—Paragraph (1) of 2 section 111(b) of the Dodd-Frank Wall Street Reform and 3 Consumer Protection Act (12 U.S.C. 5321(b)(1)) is 4 amended by striking subparagraph (J) and inserting the 5 following new subparagraph: 6 ‘‘(J) the Independent Insurance Advocate 7 appointed pursuant to section 313 of title 31, 8 United States Code.’’. 9 (d) INDEPENDENCE.—Section 111 of Public Law 93– 10 495 (12 U.S.C. 250) is amended— 11 (1) by inserting ‘‘the Independent Insurance 12 Advocate of the Department of the Treasury,’’ after 13 ‘‘Federal Housing Finance Agency,’’; and 14 (2) by inserting ‘‘or official’’ before ‘‘submitting 15 them’’. 16 (e) TRANSFER OF EMPLOYEES.—All employees of the 17 Department of Treasury who are performing staff func18 tions for the independent member of the Financial Sta19 bility Oversight Council under section 111(b)(2)(J) of the 20 Dodd-Frank Wall Street Reform and Consumer Protec21 tion Act (12 U.S.C. 5321(b)(2)(J)) on a full-time equiva22 lent basis as of the date of enactment of this Act shall 23 be eligible for transfer to the Office of the Independent 24 Insurance Advocate established pursuant to the amend25 ment made by subsection (a) of this section for appoint- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00549 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 550 1 ment as an employee and shall be transferred at the joint 2 discretion of the Independent Insurance Advocate and the 3 eligible employee. Any employee eligible for transfer that 4 is not appointed within 360 days from the date of enact5 ment of this Act shall be eligible for detail under section 6 313(f)(4) of title 31, United States Code. 7 (f) TEMPORARY SERVICE; TRANSITION.—Notwith- 8 standing the amendment made by subsection (a) of this 9 section, during the period beginning on the date of the 10 enactment of this Act and ending on the date on which 11 the Independent Insurance Advocate is appointed and con12 firmed pursuant to section 313(b)(2) of title 31, United 13 States Code, as amended by such amendment, the person 14 serving, on such date of enactment, as the independent 15 member of the Financial Stability Oversight Council pur16 suant to section 111(b)(1)(J) of the Dodd-Frank Wall 17 Street Reform and Consumer Protection Act (12 U.S.C. 18 5321(b)(1)(J)) shall act for all purposes as, and with the 19 full powers of, the Independent Insurance Advocate. 20 21 (g) COMPARABILITY ULES.—Subsection IN COMPENSATION SCHED- (a) of section 1206 of the Financial 22 Institutions Reform, Recovery, and Enforcement Act of 23 1989 (12 U.S.C. 1833b(a)) is amended by inserting ‘‘the 24 Office of the Independent Insurance Advocate of the De- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00550 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 551 1 partment of the Treasury,’’ before ‘‘and the Farm Credit 2 Administration,’’. 3 (h) SENIOR EXECUTIVES.—Subparagraph (D) of sec- 4 tion 3132(a)(1) of title 5, United States Code, is amended 5 by inserting ‘‘the Office of the Independent Insurance Ad6 vocate of the Department of the Treasury,’’ after ‘‘Fi7 nance Agency,’’. 8 9 SEC. 1102. TREATMENT OF COVERED AGREEMENTS. Subsection (c) of section 314 of title 31, United 10 States Code is amended— 11 12 (1) by designating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and 13 14 (2) by inserting before paragraph (2), as so redesignated, the following new paragraph: 15 ‘‘(1) the Secretary of the Treasury and the 16 United States Trade Representative have caused to 17 be published in the Federal Register, and made 18 available for public comment for a period of not 19 fewer than 30 days and not greater than 90 days 20 (which period may run concurrently with the 90-day 21 period for the covered agreement referred to in para- 22 graph (3)), the proposed text of the covered agree- 23 ment;’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00551 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 552 2 TITLE XII—TECHNICAL CORRECTIONS 3 SEC. 1201. TABLE OF CONTENTS; DEFINITIONAL CORREC- 1 4 TIONS. 5 (a) TABLE OF CONTENTS.—The table of contents for 6 the Dodd-Frank Wall Street Reform and Consumer Pro7 tection Act (Public Law 111–203; 124 Stat. 1376) is 8 amended by striking the items relating to section 407 9 through 414 and inserting the following: 10 ‘‘Sec. ‘‘Sec. ‘‘Sec. ‘‘Sec. 407. 408. 409. 410. ‘‘Sec. ‘‘Sec. ‘‘Sec. ‘‘Sec. 411. 414. 418. 419. Exemption of and reporting by venture capital fund advisers. Exemption of and reporting by certain private fund advisers. Family offices. State and Federal responsibilities; asset threshold for Federal registration of investment advisers. Custody of client assets. Rule of construction relating to the Commodity Exchange Act. Qualified client standard. Transition period.’’. (b) DEFINITIONS.—Section 2 of the Dodd-Frank 11 Wall Street Reform and Consumer Protection Act (12 12 U.S.C. 5301) is amended— 13 (1) in paragraph (1)— 14 (A) by striking ‘‘section 3’’ and inserting 15 ‘‘section 3(w)’’; and 16 (B) by striking ‘‘(12 U.S.C. 1813)’’ and 17 inserting ‘‘(12 U.S.C. 1813(w))’’; 18 (2) in paragraph (6), by striking ‘‘1 et seq.’’ 19 and inserting ‘‘1a’’; and 20 (3) in paragraph (18)(A)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00552 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 553 1 (A) by striking ‘‘ ‘bank holding company’,’’; 2 and 3 (B) by inserting ‘‘ ‘includes’,’’ before ‘‘ ‘in- 4 5 6 cluding’,’’. SEC. 1202. ANTITRUST SAVINGS CLAUSE CORRECTIONS. Section 6 of the Dodd-Frank Wall Street Reform and 7 Consumer Protection Act (12 U.S.C. 5303) is amended, 8 in the second sentence— 9 10 (1) by inserting ‘‘(15 U.S.C. 12(a))’’ after ‘‘Clayton Act’’; and 11 12 13 14 (2) by striking ‘‘Act, to’’ and inserting ‘‘Act (15 U.S.C. 45) to’’. SEC. 1203. TITLE I CORRECTIONS. Title I of the Dodd-Frank Wall Street Reform and 15 Consumer Protection Act (12 U.S.C. 5311 et seq.) is 16 amended— 17 (1) section 102(a)(6) (12 U.S.C. 18 5311(a)(6)), by inserting ‘‘(12 U.S.C. 1843(k))’’ 19 after ‘‘of 1956’’ each place that term appears; 20 (2) in section 111(c)(3) (12 U.S.C. 5321(c)(3)), 21 by striking ‘‘that agency or department head’’ and 22 inserting ‘‘the head of that member agency or de- 23 partment’’; 24 (3) in section 112 (12 U.S.C. 5322)— 25 (A) in subsection (a)(2)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00553 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 554 1 (i) in subparagraph (C) (as redesig- 2 nated by section 151)— 3 (I) by striking ‘‘to monitor’’ and 4 inserting ‘‘monitor’’; and 5 (II) by striking ‘‘to advise’’ and 6 inserting ‘‘advise’’; 7 (ii) in subparagraph (H) (as redesig- 8 nated by section 151), by striking ‘‘may’’; 9 and 10 (B) in subsection (d)(5), by striking ‘‘sub- 11 section and subtitle B’’ each place such term 12 appears and inserting ‘‘subtitle’’; and 13 (4) 14 15 16 in section 171(b)(4)(D) (12 U.S.C. 5371(b)(4)(D)), by adding a period at the end. SEC. 1204. TITLE III CORRECTIONS. (a) IN GENERAL.—Title III of the Dodd-Frank Wall 17 Street Reform and Consumer Protection Act (12 U.S.C. 18 5401 et seq.) is amended— 19 (1) section 327(b)(5) (12 U.S.C. 20 5437(b)(5)), by striking ‘‘in’’ and inserting ‘‘into’’; 21 (2) in section 333(b)(2) (124 Stat. 1539), by 22 inserting ‘‘the second place that term appears’’ be- 23 fore ‘‘and inserting’’; and 24 (3) in section 369(5) (124 Stat. 1559)— 25 (A) in subparagraph (D)(i)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00554 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 555 1 (i) in subclause (III), by redesignating 2 items (aa), (bb), and (cc) as subitems 3 (AA), (BB), and (CC), respectively, and 4 adjusting the margins accordingly; 5 (ii) in subclause (IV), redesignating 6 items (aa) and (bb) as subitems (AA) and 7 (BB), respectively, and adjusting the mar- 8 gins accordingly; 9 (iii) in subclause (V), by redesignating 10 items (aa), (bb), and (cc) as subitems 11 (AA), (BB), and (CC), respectively, and 12 adjusting the margins accordingly; and 13 (iv) by redesignating subclauses (III), 14 (IV), and (V) as items (bb), (cc), and (dd), 15 respectively, and adjusting the margins ac- 16 cordingly; 17 (B) in subparagraph (F)— 18 (i) in clause (ii), by adding ‘‘and’’ at 19 the end; 20 (ii) in clause (iii), by striking ‘‘; and’’ 21 and inserting a period; and 22 (iii) by striking clause (iv); and 23 (C) in subparagraph (G)(i), by inserting 24 ‘‘each place such term appears’’ before ‘‘and in- 25 serting’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00555 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 556 1 (b) EFFECTIVE DATES.— 2 (1) SECTION 333.—The amendment made by 3 subsection (a)(2) of this section shall take effect as 4 though enacted as part of subtitle C of title III of 5 the Dodd-Frank Wall Street Reform and Consumer 6 Protection Act (124 Stat. 1538). 7 (2) SECTION 369.—The amendments made by 8 subsection (a)(3) of this section shall take effect as 9 though enacted as part of subtitle E of title III of 10 the Dodd-Frank Wall Street Reform and Consumer 11 Protection Act (124 Stat. 1546). 12 13 SEC. 1205. TITLE IV CORRECTION. Section 414 of the Dodd-Frank Wall Street Reform 14 and Consumer Protection Act (124 Stat. 1578) is amend15 ed in the section heading by striking ‘‘COMMODITIES’’ 16 and inserting ‘‘COMMODITY’’. 17 18 SEC. 1206. TITLE VI CORRECTIONS. (a) IN GENERAL.—Section 610 of the Dodd-Frank 19 Wall Street Reform and Consumer Protection Act (124 20 Stat. 1596) is amended— 21 (1) by striking subsection (b); and 22 (2) by redesignating subsection (c) as sub- 23 section (b). 24 (b) EFFECTIVE DATE.—The amendments made by 25 subsection (a) of this section shall take effect as though G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00556 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 557 1 enacted as part of section 610 of the Dodd-Frank Wall 2 Street Reform and Consumer Protection Act (124 Stat. 3 1611). 4 5 SEC. 1207. TITLE VII CORRECTIONS. (a) IN GENERAL.—Title VII of the Dodd-Frank Wall 6 Street Reform and Consumer Protection Act (15 U.S.C. 7 8301 et seq.) is amended— 8 9 (1) section 719(c)(1)(B) (15 U.S.C. 8307(c)(1)(B)), by adding a period at the end; 10 (2) in section 723(a)(1)(B) (124 Stat. 1675), 11 by inserting ‘‘, as added by section 107 of the Com- 12 modity Futures Modernization Act of 2000 (Appen- 13 dix E of Public Law 106–554; 114 Stat. 2763A– 14 382),’’ after ‘‘subsection (i)’’; 15 (3) in section 734(b)(1) (124 Stat. 1718), by 16 striking ‘‘is amended’’ and all that follows through 17 ‘‘(B) in’’ and inserting ‘‘is amended in’’; 18 (4) in section 741(b)(10) (124 Stat. 1732), by 19 striking ‘‘1a(19)(A)(iv)(II)’’ each place it appears 20 and inserting ‘‘1a(18)(A)(iv)(II)’’; and 21 (5) in section 749 (124 Stat. 1746)— 22 (A) in subsection (a)(2), by striking ‘‘add- 23 ing at the end’’ and inserting ‘‘inserting after 24 subsection (f)’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00557 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 558 1 (B) in subsection (h)(1)(B), by inserting 2 ‘‘the second place that term appears’’ before the 3 semicolon. 4 (b) EFFECTIVE DATE.—The amendments made by 5 paragraphs (3), (4), and (5) of subsection (a) of this sec6 tion shall take effect as though enacted as part of part 7 II of subtitle A of title VII of the Dodd-Frank Wall Street 8 Reform and Consumer Protection Act (124 Stat. 1658). 9 10 SEC. 1208. TITLE IX CORRECTIONS. Section 939(h)(1) of the Dodd-Frank Wall Street Re- 11 form and Consumer Protection Act (124 Stat. 1887) is 12 amended— 13 14 (1) in the matter preceding subparagraph (A), by inserting ‘‘The’’ before ‘‘Commission’’; and 15 16 17 18 (2) by striking ‘‘feasability’’ and inserting ‘‘feasibility’’. SEC. 1209. TITLE X CORRECTIONS. (a) IN GENERAL.—Title X of the Dodd-Frank Wall 19 Street Reform and Consumer Protection Act (12 U.S.C. 20 5481 et seq.) is amended— 21 (1) section 1002(12)(G) (12 U.S.C. 22 5481(12)(G)), by striking ‘‘Home Owners’’ and in- 23 serting ‘‘Homeowners’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00558 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 559 1 (2) section 1013(a)(1)(C) (12 U.S.C. 2 5493(a)(1)(C)), by striking ‘‘section 11(1)’’ and in- 3 serting ‘‘subsection (l) of section 11’’; 4 5 (3) in section 1017(a)(2) (as so redesignated by section 713) (12 U.S.C. 5497(a)(5))— 6 (A) in subparagraph (A), in the last sen- 7 tence by striking ‘‘716(c) of title 31, United 8 States Code’’ and inserting ‘‘716 of title 31, 9 United States Code’’; and 10 (B) in subparagraph (C), by striking ‘‘sec- 11 tion 3709 of the Revised Statutes of the United 12 States (41 U.S.C. 5)’’ and inserting ‘‘section 13 6101 of title 41, United States Code’’; 14 (4) in section 1027(d)(1)(B) (12 U.S.C. 15 5517(d)(1)(B)), by inserting a comma after ‘‘(A)’’; 16 (5) in section 1029(d) (12 U.S.C. 5519(d)), by 17 striking the period after ‘‘Commission Act’’; 18 19 (6) in section 1061(b)(7) (12 U.S.C. 5581(b)(7))— 20 (A) by striking ‘‘Secretary of the Depart- 21 ment of Housing and Urban Development’’ 22 each place that term appears and inserting 23 ‘‘Department of Housing and Urban Develop- 24 ment’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00559 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 560 1 (B) in subparagraph (A), by striking ‘‘(12 2 U.S.C. 5102 et seq.)’’ and inserting ‘‘(12 3 U.S.C. 5101 et seq.)’’; 4 (7) in section 1063 (12 U.S.C. 5583)— 5 (A) in subsection (f)(1)(B), by striking 6 ‘‘that’’; and 7 (B) in subsection (g)(1)(A)— 8 (i) by striking ‘‘(12 U.S.C. 5102 et 9 seq.)’’ and inserting ‘‘(12 U.S.C. 5101 et 10 seq.)’’; and 11 (ii) by striking ‘‘seq)’’ and inserting 12 ‘‘seq.)’’; 13 (8) in section 1064(i)(1)(A)(iii) (12 U.S.C. 14 5584(i)(1)(A)(iii)), by inserting a period before ‘‘If 15 an’’; 16 (9) 17 5601(c)(2))— 18 section 1073(c)(2) (12 U.S.C. (A) in the paragraph heading, by inserting 19 ‘‘AND 20 ERACY’’; 21 EDUCATION’’ after ‘‘FINANCIAL LIT- and (B) by striking ‘‘its duties’’ and inserting 22 ‘‘their duties’’; 23 (10) in section 1076(b)(1) (12 U.S.C. 24 5602(b)(1)), by inserting before the period at the 25 end the following: ‘‘, the Agency may, after notice G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00560 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 561 1 and opportunity for comment, prescribe regula- 2 tions’’; 3 (11) in section 1077(b)(4)(F) (124 Stat. 2076), 4 by striking ‘‘associates’’ and inserting ‘‘associate’s’’; 5 (12) in section 1084(1) (124 Stat. 2081), by in- 6 serting a comma after ‘‘2009)’’; 7 (13) in section 1089 (124 Stat. 2092)— 8 (A) in paragraph (3)— 9 (i) in subparagraph (A), by striking 10 ‘‘and’’ at the end; and 11 (ii) in subparagraph (B)(vi), by strik- 12 ing the period at the end and inserting ‘‘; 13 and’’; and 14 (B) by redesignating paragraph (4) as sub- 15 paragraph (C) and adjusting the margins ac- 16 cordingly; and 17 (14) in section 1098(6) (124 Stat. 2104), by in- 18 serting ‘‘the first place that term appears’’ before 19 ‘‘and’’. 20 (b) EFFECTIVE DATE.—The amendments made by 21 paragraphs (11), (12), (13), (14), and (15) of subsection 22 (a) shall take effect as though enacted as part of subtitle 23 H of title X of the Dodd-Frank Wall Street Reform and 24 Consumer Protection Act (124 Stat. 2080). G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00561 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 562 1 SEC. 1210. TITLE XII CORRECTION. 2 Title XII of the Dodd-Frank Wall Street Reform and 3 Consumer Protection Act (124 Stat. 2129) is amended, 4 in section 1208(b) (12 U.S.C. 5626(b)), by inserting ‘‘, 5 as defined in section 103(10) of the Riegle Community 6 Development and Regulatory Improvement Act of 1994 7 (12 U.S.C. 4702(10)),’’ after ‘‘appropriated to the Fund’’. 8 SECTION 1211. TITLE XIV CORRECTION. 9 Title XIV of the Dodd-Frank Wall Street Reform and 10 Consumer Protection Act (124 Stat. 2136) is amended, 11 in section 1451(c) (12 U.S.C. 1701x–1(c)), by striking 12 ‘‘pursuant’’. 13 SEC. 1212. TECHNICAL CORRECTIONS TO OTHER STAT- 14 UTES. 15 (a) ALTERNATIVE MORTGAGE TRANSACTION PARITY 16 ACT OF 1982.—The Alternative Mortgage Transaction 17 Parity Act of 1982 (12 U.S.C. 3801 et seq.) is amended— 18 (1) section 802(a)(3) (12 U.S.C. 19 3801(a)(3)), by striking ‘‘the Director of the Office 20 of Thrift Supervision’’ and inserting ‘‘the Consumer 21 Law Enforcement Agency’’; 22 (2) in section 804 (12 U.S.C. 3803)— 23 (A) in subsection (a), by striking ‘‘the Di- 24 rector of the Office of Thrift Supervision’’ each 25 place such term appears and inserting ‘‘the 26 Comptroller of the Currency’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00562 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 563 1 (B) in subsection (d)(1), by striking the 2 comma after ‘‘Administration’’. 3 (b) BANK HOLDING COMPANY ACT AMENDMENTS OF 4 1970.—Section 106(b)(1) of the Bank Holding Company 5 Act Amendments of 1970 (12 U.S.C. 1972(1)) is amend6 ed, in the undesignated matter at the end, by striking 7 ‘‘Federal Deposit Insurance Company’’ and inserting 8 ‘‘Federal Deposit Insurance Corporation’’. 9 (c) BALANCED BUDGET AND EMERGENCY DEFICIT 10 CONTROL ACT.—Section 255(g)(1)(A) of the Balanced 11 Budget and Emergency Deficit Control Act of 1985 (2 12 U.S.C. 905(g)(1)(A)) is amended by striking ‘‘Office of 13 Thrift Supervision (20–4108–0–3–373).’’. 14 (d) BRETTON WOODS AGREEMENTS ACT.—Section 15 68(a)(1) of the Bretton Woods Agreements Act (22 U.S.C. 16 286tt(a)(1)) is amended by striking ‘‘Fund ,’’ and insert17 ing ‘‘Fund,’’. 18 (e) CAN-SPAM ACT 19 of the CAN-SPAM OF 2003.—Section 7(b)(1)(D) Act of 2003 (15 U.S.C. 20 7706(b)(1)(D)) is amended by striking ‘‘Director of the 21 Office of Thrift Supervision’’ and inserting ‘‘Comptroller 22 of the Currency or the Board of Directors of Federal De23 posit Insurance Corporation, as applicable,’’. 24 25 (f) CHILDREN’S ONLINE PRIVACY PROTECTION ACT OF 1998.—Section 1306(b)(2) of the Children’s Online G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00563 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 564 1 Privacy Protection Act of 1998 (15 U.S.C. 6505(b)(2)) 2 is amended by striking ‘‘Director of the Office of Thrift 3 Supervision’’ and inserting ‘‘Comptroller of the Currency 4 and the Board of Directors of Federal Deposit Insurance 5 Corporation, as applicable,’’. 6 (g) COMMODITY EXCHANGE ACT.—The Commodity 7 Exchange Act (7 U.S.C. 1 et seq.) is amended— 8 (1) in section 1a (7 U.S.C. 1a)— 9 (A) in paragraph (12)(A)(i)(II), by adding 10 a semicolon at the end; 11 (B) in paragraph (39)(A)(iv), by striking 12 ‘‘225’’ and inserting ‘‘25’’; and 13 (C) in paragraph (47)(B)(viii)(II), by 14 striking ‘‘(15 U.S.C. 77b(a)(11))’’ and inserting 15 ‘‘(15 U.S.C. 77b(a)(11)))’’; 16 (2) in section 2 (7 U.S.C. 2)— 17 (A) in subsection (c)(2)(D)(ii)(I), by strik- 18 ing ‘‘subparagraphs’’ and inserting ‘‘subpara- 19 graph’’; and 20 (B) in subsection (h)— 21 (i) in paragraph (5)(A) by striking 22 ‘‘Swaps’’ and inserting ‘‘Each swap’’; 23 (ii) in paragraph (7) in subparagraph 24 (D)(ii)(V), by striking ‘‘of that Act’’ and 25 inserting ‘‘of that section’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00564 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 565 1 (iii) in paragraph (8)(A)(ii), by insert- 2 ing ‘‘section’’ before ‘‘5h or’’; 3 (3) in section 4 (7 U.S.C. 6)— 4 (A) in subsection (b)(1)(A), by striking 5 ‘‘commission’’ each place that term appears and 6 inserting ‘‘Commission’’; and 7 (B) in subsection (c)(1)— 8 (i) in subparagraph (A)— 9 (I) by inserting ‘‘the Commission 10 shall not grant exemptions,’’ after 11 ‘‘grant exemptions,’’; and 12 (II) in clause (i)— 13 (aa) in subclause (I)— 14 (AA) by striking ‘‘5(g), 15 5(h),’’; and 16 (BB) by striking ‘‘8e,’’; 17 and 18 (bb) in subclause (II), by 19 striking ‘‘206(e)’’ and inserting 20 ‘‘206’’; and 21 (ii) in subparagraph (B), by striking 22 ‘‘(D))’’ and inserting ‘‘(D)’’; 23 (4) section 4d(f)(2)(A) (7 U.S.C. 24 6d(f)(2)(A)), by striking ‘‘though’’ and inserting 25 ‘‘through’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00565 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 566 1 (5) in section 4s (7 U.S.C. 6s)— 2 (A) in subsection (e)(3)— 3 (i) in subparagraph (B)(i)(II), by 4 striking ‘‘(11))’’ and inserting ‘‘(11)))’’; 5 and 6 (ii) in subparagraph (D)(ii), in the 7 matter preceding subclause (I), by striking 8 ‘‘non 9 ‘‘noncash collateral’’; collateral’’ and inserting 10 (B) in subsection (f)(1)(B)(i), by striking 11 ‘‘Commission’’ and inserting ‘‘prudential regu- 12 lator’’; 13 (C) in subsection (h)— 14 (i) in paragraph (2)(B), by inserting 15 ‘‘a’’ before ‘‘swap with’’; and 16 (ii) in paragraph (5)(A)— 17 (I) in clause (i)— 18 (aa) by striking ‘‘section 19 1a(18)’’ and inserting ‘‘section 20 1a(18)(A)’’; and 21 (bb) in subclause (VII), by 22 striking ‘‘act of’’ and inserting 23 ‘‘Act of’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 cash 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00566 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 567 1 (II) in clause (ii), by inserting 2 ‘‘in connection with the transaction’’ 3 after ‘‘acting’’; and 4 (D) in subsection (k)(3)(A)(ii), by striking 5 ‘‘the code’’ and inserting ‘‘any code’’; 6 (6) in 5(d)(19)(A) (7 U.S.C. 7 7(d)(19)(A)), by striking ‘‘taking’’ and inserting 8 ‘‘take’’; 9 10 (7) in section 5b (7 U.S.C. 7a–1), by redesignating subsection (k) as subsection (j); 11 (8) in section 5c(c) (7 U.S.C. 7a–2(c))— 12 (A) in paragraph (4)(B), by striking 13 ‘‘1a(10)’’ and inserting ‘‘1a(9)’’; and 14 (B) in paragraph (5)— 15 (i) in subparagraph (A), by striking 16 ‘‘this subtitle’’ and inserting ‘‘this Act’’; 17 and 18 (ii) in subparagraph (C)(i), by strik- 19 ing ‘‘1a(2)(i)’’ and inserting ‘‘1a(9)’’; 20 (9) in section 5h (7 U.S.C. 7b–3)— 21 (A) in subsection (a)(1) , by striking ‘‘a fa- 22 cility’’ and inserting ‘‘a swap execution facil- 23 ity’’; and 24 (B) in subsection (f)(11)(A), by striking 25 ‘‘taking’’ and inserting ‘‘take’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 section 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00567 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 568 1 2 (10) in section 22(a)(1)(C)(ii) (7 U.S.C. 25(a)(1)(C)(ii)), by striking ‘‘or’’ at the end; and 3 (11) in section 23 (7 U.S.C. 26)— 4 (A) in subsection (c)— 5 (i) in paragraph (1)(B)(III), by strik- 6 ing ‘‘the Act’’ both places it appears and 7 inserting ‘‘this Act’’; and 8 (ii) in paragraph (2)(A)(i), by striking 9 ‘‘a appropriate’’ and inserting ‘‘an appro- 10 priate’’; and 11 (B) in subsection (f)(3), by striking 12 13 ‘‘7064’’ and inserting ‘‘706’’. (h) COMMUNITY REINVESTMENT ACT OF 1977.—The 14 Community Reinvestment Act of 1977 (12 U.S.C. 2901 15 et seq.) is amended— 16 (1) in section 803(1)(C) (12 U.S.C. 17 2902(1)(C)), by striking the period at the end and 18 inserting a semicolon; and 19 (2) in section 806 (12 U.S.C. 2905), by striking 20 ‘‘companies,,’’ and inserting ‘‘companies,’’. 21 (i) CREDIT REPAIR ORGANIZATIONS ACT.—Section 22 403(4) of the Credit Repair Organizations Act (15 U.S.C. 23 1679a(4)) is amended by striking ‘‘103(e)’’ and inserting 24 ‘‘103(f)’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00568 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 569 1 2 (j) DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT.—Section 205(9) of the Depository Institution 3 Management Interlocks Act (12 U.S.C. 3204(9)) is 4 amended by striking ‘‘Director of the Office of Thrift Su5 pervision’’ and inserting ‘‘appropriate Federal banking 6 agency’’. 7 8 (k) ECONOMIC GROWTH WORK REDUCTION ACT OF AND REGULATORY PAPER- 1996.—Section 2227(a)(1) of 9 the Economic Growth and Regulatory Paperwork Reduc10 tion Act of 1996 (12 U.S.C. 252(a)(1)) is amended by 11 striking ‘‘the Director of the Office of Thrift Super12 vision,’’. 13 (l) ELECTRONIC FUND TRANSFER ACT.—The Elec- 14 tronic Fund Transfer Act (15 U.S.C. 1693 et seq.) is 15 amended— 16 (1) in section 903 (15 U.S.C. 1693a)— 17 (A) in paragraph (2), by striking ‘‘103(i)’’ 18 and inserting ‘‘103(j)’’; and 19 (B) by redesignating the first paragraph 20 designated as paragraph (4) (defining the term 21 ‘‘Board’’), as paragraph (3); 22 (2) in section 904(a) (15 U.S.C. 1693b(a))— 23 (A) by redesignating the second paragraph 24 designated as paragraph (1) (relating to con- 25 sultation with other agencies), the second para- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00569 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 570 1 graph designated as paragraph (2) (relating to 2 the preparation of an analysis of economic im- 3 pact), paragraph (3), and paragraph (4), as 4 subparagraphs (A), (B), (C), and (D), respec- 5 tively, and adjusting the margins accordingly; 6 and 7 (B) by striking ‘‘In prescribing such regu- 8 lations, the Board shall:’’ and inserting the fol- 9 lowing: 10 ‘‘(3) REGULATIONS.—In prescribing regulations 11 under this subsection, the Agency and the Board 12 shall—’’; 13 14 (3) in section 909(c) (15 U.S.C. 1693g(c)), by striking ‘‘103(e)’’ and inserting ‘‘103(f)’’; 15 (4) section 918(a)(4) (15 U.S.C. 16 1693o(a)(4), by striking ‘‘Act and’’ and inserting 17 ‘‘Act; and’’; 18 (5) by redesignating the section added by sec- 19 tion 1073(4) of the Dodd-Frank Wall Street Reform 20 and Consumer Protection Act (relating to remittance 21 transfers) (15 U.S.C. 1693o–1) as section 920 of 22 the Electronic Fund Transfer Act; 23 (6) by redesignating the section headed ‘‘Rela- 24 tion to State laws’’ (15 U.S.C. 1693q) as section 25 921 of the Electronic Fund Transfer Act; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00570 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 571 1 (7) by redesignating the section headed ‘‘Ex- 2 emption for State regulation’’ (15 U.S.C. 1693r) as 3 section 922 of the Electronic Fund Transfer Act; 4 and 5 (8) by redesignating the section headed ‘‘Effec- 6 tive date’’ (15 U.S.C. 1693 note) as section 923 of 7 the Electronic Fund Transfer Act. 8 (m) EMERGENCY ECONOMIC STABILIZATION ACT OF 9 2008.—Section 101(b) of the Emergency Economic Sta10 bilization Act of 2008 (12 U.S.C. 5211(b)) is amended 11 by striking ‘‘the Director of the Office of Thrift Super12 vision,’’. 13 (n) EQUAL CREDIT OPPORTUNITY ACT.—The Equal 14 Credit Opportunity Act (15 U.S.C. 1691 et seq.) is 15 amended— 16 (1) in section 703 (15 U.S.C. 1691b)— 17 (A) in each of subsections (c) and (d), by 18 striking ‘‘paragraph’’ each place that term ap- 19 pears and inserting ‘‘subsection’’; and 20 (B) in subsection (g), by adding a period 21 at the end; 22 (2) in section 704 (15 U.S.C. 1691c)— 23 (A) in subsection (a)— 24 (i) by striking ‘‘Consumer Protection 25 Financial Protection Act of 2010 with’’ G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00571 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 572 1 and inserting ‘‘Consumer Financial Protec- 2 tion Act of 2010, compliance with’’; 3 (ii) in paragraph (1)— 4 (I) by striking ‘‘section 8’’ and 5 inserting ‘‘Section 8’’; and 6 (II) in subparagraph (C), by 7 striking 8 ‘‘banks.’’; 9 (iii) in each of paragraphs (6) and 10 (7), by striking the semicolon at the end 11 and inserting a period; and 12 ‘‘banks;’’ and inserting (iv) in paragraph (8), by striking ‘‘; 13 and’’ and inserting a period; and 14 (B) in subsection (c), in the second sen- 15 tence, by striking ‘‘subchapter’’ and inserting 16 ‘‘title’’; and 17 (3) in section 706(k) (15 U.S.C. 1691e(k)), by 18 striking ‘‘, (2), or (3)’’ and inserting ‘‘or (2)’’. 19 (o) EXPEDITED FUNDS AVAILABILITY ACT.—The 20 Expedited Funds Availability Act (12 U.S.C. 4001 et seq.) 21 is amended— 22 (1) section 605(f)(2)(A) (12 U.S.C. 23 4004(f)(2)(A)), by striking ‘‘,,’’ and inserting a 24 semicolon; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00572 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 573 1 (2) in section 610(a)(2) (12 U.S.C. 2 4009(a)(2)), by striking ‘‘Director of the Office of 3 Thrift Supervision’’ and inserting ‘‘Comptroller of 4 the Currency and the Board of Directors of the Fed- 5 eral Deposit Insurance Corporation, as appro- 6 priate,’’. 7 (p) FAIR CREDIT REPORTING ACT.—The Fair Credit 8 Reporting Act (15 U.S.C. 1681 et seq.) is amended— 9 (1) in section 603 (15 U.S.C. 1681a)— 10 (A) in subsection (d)(2)(D), by striking 11 ‘‘(x)’’ and inserting ‘‘(y)’’; 12 (B) in subsection (q)(5), by striking 13 ‘‘103(i)’’ and inserting ‘‘103(j)’’; and 14 (C) in subsection (v), by striking ‘‘Bureau’’ 15 and inserting ‘‘Federal Trade Commission’’; 16 (2) in section 604 (15 U.S.C. 1681b)— 17 (A) in subsection (b)— 18 (i) in paragraph (2)(B)(i), by striking 19 ‘‘section 615(a)(3)’’ and inserting ‘‘section 20 615(a)(4)’’; 21 (ii) in paragraph (3)(B)(ii), by strik- 22 ing ‘‘clause (B)(i)(IV)’’ and inserting 23 ‘‘clause (i)(IV)’’; 24 (iii) in paragraph (4)(A)(ii), by insert- 25 ing ‘‘and’’ after the semicolon; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00573 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 574 1 (iv) by striking ‘‘section 609(c)(3)’’ 2 each place that term appears and inserting 3 ‘‘section 609(c)’’; and 4 (B) in subsection (g)(5), by striking 5 ‘‘PARAGRAPH 6 through ‘‘The Bureau’’ and inserting ‘‘PARA- 7 GRAPH (2).—The 8 (3) in section 605 (15 U.S.C. 1681c)— 9 and all that follows Agency’’; (A) in subsection (f), by striking ‘‘who’’ 10 and inserting ‘‘which’’; and 11 (B) in subsection (h)(2)(A)— 12 (i) by striking ‘‘shall,,’’ and inserting 13 ‘‘shall,’’; and 14 (ii) by striking ‘‘Commission,,’’ and 15 inserting ‘‘Commission,’’; 16 (4) in section 605A(h)(1)(A) (15 U.S.C. 1681c– 17 1(h)(1)(A)), by striking ‘‘103(i)’’ and inserting 18 ‘‘103(j)’’; 19 (5) in section 607(e)(3)(A) (15 U.S.C. 20 1681e(e)(3)(A)), by striking ‘‘section 21 604(b)(4)(E)(i)’’ and inserting ‘‘section 22 604(b)(4)(D)(i)’’; 23 (6) in section 609 (15 U.S.C. 1681g)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 (2).—’’ 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00574 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 575 1 (A) in subsection (a)(3)(C)(i), by striking 2 ‘‘section 604(b)(4)(E)(i)’’ and inserting ‘‘sec- 3 tion 604(b)(4)(D)(i)’’; 4 (B) in subsection (c)(1)— 5 (i) in the paragraph heading, by strik- 6 ing ‘‘COMMISSION’’ and inserting ‘‘BU- 7 REAU’’; 8 (ii) in subparagraph (B)(vi), by strik- 9 ing ‘‘603(w)’’ and inserting ‘‘603(x)’’; 10 (C) in subsection (e)(2)(B)(ii)(II), by strik- 11 ing ‘‘an’’; and 12 (D) by striking ‘‘The Commission’’ each 13 place that term appears and inserting ‘‘The Bu- 14 reau’’; 15 (7) in section 610 (15 U.S.C. 1681h)— 16 (A) in subsection (b)(1), by inserting ‘‘sec- 17 tion’’ after ‘‘under’’; and 18 (B) in subsection (e), by inserting a 19 comma after ‘‘on the report’’; 20 (8) in section 611 (15 U.S.C. 1681i), by strik- 21 ing ‘‘The Commission’’ each place that term appears 22 and inserting ‘‘The Agency’’; 23 (9) in section 612 (15 U.S.C. 1681j)— 24 (A) in subsection (a)(1)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 and 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00575 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 576 1 (i) by striking ‘‘(w)’’ and inserting 2 ‘‘(x)’’; and 3 (ii) in subparagraph (C), by striking 4 ‘‘603(w)’’ each place that term appears 5 and inserting ‘‘603(x)’’; 6 (B) 7 in subsection (g), by striking ‘‘televison’’ and inserting ‘‘television’’; and 8 (C) by striking ‘‘The Commission’’ each 9 place that term appears and inserting ‘‘The Bu- 10 reau’’; 11 (10) in section 621 (15 U.S.C. 1681s)— 12 (A) in subsection (a)(1), in the first sen- 13 tence, by striking ‘‘, subsection (b)’’; 14 (B) in subsection (e)(2), by inserting a pe- 15 riod after ‘‘provisions of this title’’; and 16 (C) in subsection (f)(2), by striking ‘‘The 17 Commission’’ and inserting ‘‘The Agency’’ and 18 (11) in section 623(a)(5) (15 U.S.C. 1681s– 19 2(a)(5)), by striking ‘‘OF 20 ERAL.—A 21 22 person’’ and inserting ‘‘OF ‘‘(A) IN (q) ACCOUNTS.—(A) IN GEN- FEDERAL GENERAL.—A CREDIT ACCOUNTS.— person’’. UNION ACT.—Section 23 206(g)(7)(D)(iv) of the Federal Credit Union Act (12 24 U.S.C. 1786(g)(7)(D)(iv)) is amended by striking the 25 semicolon at the end and inserting a period. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00576 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 577 1 (r) FEDERAL DEPOSIT INSURANCE ACT.—The Fed- 2 eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 3 amended— 4 (1) in 3(q)(2)(C) (12 5 1813(q)(2)(C)), by adding ‘‘and’’ at the end; 6 (2) in section 7 (12 U.S.C. 1817)— 7 (A) in subsection (b)(2)— 8 U.S.C. (i) in subparagraph (A), by striking 9 ‘‘(D)’’ and inserting ‘‘(C)’’; and 10 (ii) by redesignating subparagraphs 11 (D) and (E) as subparagraphs (C) and 12 (D), respectively; and 13 (B) in subsection (e)(2)(C), by adding a 14 period at the end; 15 (3) in section 8 (12 U.S.C. 1818)— 16 (A) in subsection (b)(3), by striking 17 ‘‘Act))’’ and inserting ‘‘Act)’’; and 18 (B) in subsection (t)(2)(C), by striking 19 ‘‘depositors or’’ and inserting ‘‘depositors; or’’; 20 (4) in section 11 (12 U.S.C. 1821)— 21 (A) in subsection (d)(2)(I)(ii), by striking 22 ‘‘and section 21A(b)(4)’’; and 23 (B) in subsection (m), in each of para- 24 graphs (16) and (18), by striking the comma G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 section 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00577 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 578 1 after ‘‘Comptroller of the Currency’’ each place 2 it appears; and 3 (5) in section 26(a) (12 U.S.C. 1831c(a)), by 4 striking ‘‘Holding Company Act’’ each place that 5 term appears and inserting ‘‘Holding Company Act 6 of 1956’’. 7 (s) FEDERAL FIRE PREVENTION 8 OF AND CONTROL ACT 1974.—Section 31(a)(5)(B) of the Federal Fire Pre- 9 vention and Control Act of 1974 (15 U.S.C. 10 2227(a)(5)(B)) is amended by striking ‘‘the Federal De11 posit Insurance Corporation’’ and all that follows through 12 the period and inserting ‘‘or the Federal Deposit Insur13 ance Corporation under the affordable housing program 14 under section 40 of the Federal Deposit Insurance Act.’’. 15 (t) FEDERAL HOME LOAN BANK ACT.—The Federal 16 Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amend17 ed— 18 (1) in section 10(h)(1) (12 U.S.C. 1430(h)(1)), 19 by striking ‘‘Director of the Office of Thrift Super- 20 vision’’ and inserting ‘‘Comptroller of the Currency 21 or the Board of Directors of the Federal Deposit In- 22 surance Corporation, as applicable’’; and 23 (2) in section 22(a) (12 U.S.C. 1442(a))— 24 (A) in the matter preceding paragraph (1), 25 by striking ‘‘Comptroller of the Currency’’ and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00578 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 579 1 all that follows through ‘‘Supervision’’ and in- 2 serting ‘‘Comptroller of the Currency, the 3 Chairman of the Board of Governors of the 4 Federal Reserve System, the Chairperson of the 5 Federal Deposit Insurance Corporation, and the 6 Chairman of the National Credit Union Admin- 7 istration’’; and 8 (B) in the undesignated matter following 9 paragraph (2), by striking ‘‘Comptroller of the 10 Currency’’ and all that follows through ‘‘Super- 11 vision’’ and inserting ‘‘Comptroller of the Cur- 12 rency, the Chairman of the Board of Governors 13 of the Federal Reserve System, and the Chair- 14 man of the National Credit Union Administra- 15 tion’’. 16 (u) FEDERAL RESERVE ACT.—Paragraph (8)(B) of 17 section 11(s) of the Federal Reserve Act (headed ‘‘Federal 18 Reserve Transparency and Release of Information’’) (12 19 U.S.C. 248) is amended by striking ‘‘this section’’ and in20 serting ‘‘this subsection’’. 21 22 (v) FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989.—The Financial Insti- 23 tutions Reform, Recovery, and Enforcement Act of 1989 24 (Public Law 101–73; 103 Stat. 183) is amended in section G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00579 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 580 1 1121(6) (12 U.S.C. 3350(6)), by striking ‘‘the Office of 2 Thrift Supervision,’’. 3 (w) GRAMM-LEACH-BLILEY ACT.—The Gramm- 4 Leach-Bliley Act (Public Law 106–102; 113 Stat. 1338) 5 is amended— 6 (1) in section 132(a) (12 U.S.C. 1828b(a)), by 7 striking ‘‘the Director of the Office of Thrift Super- 8 vision,’’; 9 (2) in section 206(a) (15 U.S.C. 78c note), by 10 striking ‘‘Except as provided in subsection (e), for’’ 11 and inserting ‘‘For’’; 12 (3) in section 502(e)(5) (15 U.S.C. 6802(e)(5)), 13 by striking ‘‘a Federal’’ and inserting ‘‘, a Federal’’; 14 (4) section 504(a)(2) (15 U.S.C. 15 6804(a)(2)), by striking ‘‘and, as appropriate, and 16 with’’ and inserting ‘‘and, as appropriate, with’’; 17 (5) in section 509(2) (15 U.S.C. 6809(2))— 18 (A) by striking subparagraph (D); and 19 (B) by redesignating subparagraphs (E) 20 and (F) as subparagraphs (D) and (E), respec- 21 tively; and 22 (6) in section 522(b)(1)(A)(iv) (15 U.S.C. 23 6822(b)(1)(A)(iv)), by striking ‘‘Director of the Of- 24 fice of Thrift Supervision’’ and inserting ‘‘Comp- 25 troller of the Currency and the Board of Directors G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00580 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 581 1 of the Federal Deposit Insurance Corporation, as 2 appropriate’’. 3 (x) HELPING FAMILIES SAVE THEIR HOMES ACT OF 4 2009.—Section 104 of the Helping Families Save Their 5 Homes Act of 2009 (12 U.S.C. 1715z–25) is amended— 6 (1) in subsection (a)— 7 (A) by striking ‘‘and the Director of the 8 Office of Thrift Supervision, shall jointly’’ and 9 inserting ‘‘shall’’; 10 (B) by striking ‘‘and the Office of Thrift 11 Supervision’’; and 12 (C) by striking ‘‘each such’’ and inserting 13 ‘‘such’’; and 14 (2) in subsection (b)(1)— 15 (A) in subparagraph (A)— 16 (i) in the first sentence— 17 (I) by striking ‘‘and the Director 18 of the Office of Thrift Supervision,’’; 19 and 20 (II) by striking ‘‘or the Direc- 21 tor’’; 22 (ii) in the second sentence, by striking 23 ‘‘and the Director of the Office of Thrift 24 Supervision’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00581 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 582 1 (B) in subparagraph (B), by striking ‘‘and 2 the Director of the Office of Thrift Super- 3 vision’’. 4 (y) HOME MORTGAGE DISCLOSURE ACT OF 1975.— 5 The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 6 2801 et seq.) is amended— 7 (1) in section 304— 8 (A) in subsection (b)(5)(A), by striking 9 ‘‘15 U.S.C. 1602(aa)(4)’’ and inserting ‘‘section 10 103(aa)(4) of the Truth in Lending Act’’; and 11 (B) in subsection (j)(3) (12 U.S.C. 12 2803(j)(3)), by adding a period at the end; and 13 (2) in section 305(b)(1)(A)(iii) (12 U.S.C. 14 2804(b)(1)(A)(iii)), by striking ‘‘bank as,’’ and in- 15 serting ‘‘bank, as’’. 16 (z) HOME OWNERS’ LOAN ACT.—The Home Owners’ 17 Loan Act (12 U.S.C. 1461 et seq.) is amended— 18 (1) in section 5 (12 U.S.C. 1464)— 19 (A) in subsection (d)(2)(E)(ii)— 20 (i) in the first sentence, by striking 21 ‘‘Except as provided in section 21A of the 22 Federal Home Loan Bank Act, the’’ and 23 inserting ‘‘The’’; and 24 (ii) by striking ‘‘, at the Director’s 25 discretion,’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00582 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 583 1 (B) in subsection (i)(6), by striking ‘‘the 2 Office of Thrift Supervision or’’; 3 (C) in subsection (m), by striking ‘‘Direc- 4 tor’s’’ each place that term appears and insert- 5 ing ‘‘appropriate Federal banking agency’s’’; 6 (D) in subsection (n)(9)(B), by striking 7 ‘‘Director’s’’ and inserting ‘‘Comptroller’s’’; and 8 (E) in subsection (s)— 9 (i) in paragraph (1)— 10 (I) in the matter preceding sub- 11 paragraph (A), by striking ‘‘of such 12 Act)’’ and all that follows through 13 ‘‘shall require’’ and inserting ‘‘of such 14 Act), the appropriate Federal banking 15 agency shall require’’; and 16 (II) in subparagraph (B), by 17 striking ‘‘other methods’’ and all that 18 follows through ‘‘determines’’ and in- 19 serting ‘‘other methods as the appro- 20 priate Federal banking agency deter- 21 mines’’; 22 (ii) in paragraph (2)— 23 (I) by striking ‘‘DETERMINED’’ 24 and all that follows through ‘‘may, 25 consistent’’ and inserting ‘‘DETER- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00583 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 584 1 MINED 2 BANKING 3 The 4 agency may, consistent’’; and APPROPRIATE AGENCY appropriate FEDERAL CASE-BY-CASE.— Federal banking 5 (II) by striking ‘‘capital-to-as- 6 sets’’ and all that follows through 7 ‘‘determines to be necessary’’ and in- 8 serting ‘‘capital-to-assets as the ap- 9 propriate Federal banking agency de- 10 termines to be necessary’’; 11 (2) in section 6(c) (12 U.S.C. 1465(c)), by 12 striking ‘‘sections’’ and inserting ‘‘section’’; 13 (3) in section 10 (12 U.S.C. 1467a)— 14 (A) in subsection (b)(6), by striking 15 ‘‘time’’ and all that follows through ‘‘release’’ 16 and inserting ‘‘time, upon the motion or appli- 17 cation of the Board, release’’; 18 (B) in subsection (c)(2)(H)— 19 (i) in the matter preceding clause 20 (i)— 21 (I) by striking ‘‘1841(p))’’ and 22 inserting ‘‘1841(p)))’’; and 23 (II) by inserting ‘‘(12 U.S.C. 24 1843(k))’’ before ‘‘if—’’; and G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 BY 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00584 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 585 1 (ii) in clause (i), by inserting ‘‘of 1956 2 (12 U.S.C. 1843(l) and (m))’’ after ‘‘Com- 3 pany Act’’; and 4 (C) in subsection (e)(7)(B)(iii)— 5 (i) by striking ‘‘Board of the Office of 6 Thrift Supervision’’ and inserting ‘‘Direc- 7 tor of the Office of Thrift Supervision’’; 8 and 9 (ii) by inserting ‘‘, as defined in sec- 10 tion 2 of the Dodd-Frank Wall Street Re- 11 form and Consumer Protection Act (12 12 U.S.C. 5301)’’ after ‘‘transfer date’’; and 13 (4) in section 13 (12 U.S.C. 1468b), by striking 14 ‘‘the a’’ and inserting ‘‘a’’. 15 (aa) HOUSING ACT OF 1948.—Section 502(c)(3) of 16 the Housing Act of 1948 (12 U.S.C. 1701c(c)(3)) is 17 amended by striking ‘‘Federal Home Loan Bank Agency’’ 18 and inserting ‘‘Federal Housing Finance Agency’’. 19 (bb) HOUSING AND URBAN DEVELOPMENT ACT OF 20 1968.—Section 106(h)(5) of the Housing and Urban De21 velopment Act of 1968 (12 U.S.C. 1701x(h)(5)) is amend22 ed by striking ‘‘authorised’’ and inserting ‘‘authorized’’. 23 (cc) INTERNATIONAL BANKING ACT OF 1978.—Sec- 24 tion 15 of the International Banking Act of 1978 (12 25 U.S.C. 3109) is amended— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00585 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 586 1 (1) in each of subsections (a) and (b)— 2 (A) by striking ‘‘, and Director of the Of- 3 fice of Thrift Supervision’’ each place that term 4 appears; and 5 (B) by inserting ‘‘and’’ before ‘‘Federal 6 Deposit’’ each place that term appears; 7 (2) in subsection (a), by striking ‘‘Comptroller, 8 Corporation, or Director’’ and inserting ‘‘Comp- 9 troller of the Currency, or Corporation’’; and 10 (3) in subsection (c)(4)— 11 (A) by inserting ‘‘and’’ before ‘‘the Federal 12 Deposit’’; and 13 (B) by striking ‘‘, and the Director of the 14 Office of Thrift Supervision’’. 15 16 (dd) INTERNATIONAL LENDING SUPERVISION ACT OF 1983.—Section 912 of the International Lending Su- 17 pervision Act of 1983 (12 U.S.C. 3911) is amended— 18 (1) by amending the section heading to read as REPRESENTATION FOR FED- 19 follows: ‘‘EQUAL 20 ERAL DEPOSIT INSURANCE CORPORATION’’; 21 (2) by striking ‘‘(a) IN GENERAL.—’’; and 22 (3) by striking subsection (b). 23 (ee) INTERSTATE LAND SALES FULL DISCLOSURE 24 ACT.—The Interstate Land Sales Full Disclosure Act (15 25 U.S.C. 1701 et seq.) is amended in each of section G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00586 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 587 1 1411(b) (15 U.S.C. 1710(b)) and subsections (b)(4) and 2 (d) of section 1418a (15 U.S.C. 1717a), by striking ‘‘Sec3 retary’s’’ each place that term appears and inserting ‘‘Di4 rector’s’’. 5 6 (ff) LEGAL CERTAINTY OF FOR BANK PRODUCTS ACT 2000.—Section 403(b)(1) of the Legal Certainty for 7 Bank Products Act of 2000 (7 U.S.C. 27a(b)(1)) is 8 amended by striking ‘‘that section’’ and inserting ‘‘sec9 tion’’. 10 (gg) PUBLIC LAW 93–495.—Section 111 of Public 11 Law 93–495 (12 U.S.C. 250) is amended by striking ‘‘the 12 Director of the Office of Thrift Supervision,’’. 13 (hh) REVISED STATUTES OF THE UNITED STATES.— 14 Section 5136C(i) of the Revised Statutes of the United 15 States (12 U.S.C. 25b(i)) is amended by striking ‘‘POW16 ERS.—’’ and all that follows through ‘‘In accordance’’ and 17 inserting ‘‘POWERS.—In accordance’’. 18 19 (ii) RIEGLE COMMUNITY DEVELOPMENT LATORY IMPROVEMENT ACT OF AND REGU- 1994.—Section 117(e) of 20 the Riegle Community Development and Regulatory Im21 provement Act of 1994 (12 U.S.C. 4716(e)) is amended 22 by striking ‘‘the Director of the Office of Thrift Super23 vision,’’. 24 (jj) S.A.F.E. MORTGAGE LICENSING ACT OF 2008.— 25 Section 1514 of the S.A.F.E. Mortgage Licensing Act of G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00587 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 588 1 2008 (12 U.S.C. 5113) is amended in each of subsections 2 (b)(5) and (c)(4)(C), by striking ‘‘Secretary’s’’ each place 3 that term appears and inserting ‘‘Director’s’’. 4 (kk) SECURITIES EXCHANGE ACT 1934.—The OF 5 Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 6 is amended— 7 (1) in section 3C(g)(4)(B)(v) (15 U.S.C. 78c– 8 3(g)(4)(B)(v)), by striking ‘‘of that Act’’ and insert- 9 ing ‘‘of that section’’; 10 (2) in section 3D(d)(10)(A) (15 U.S.C. 78c– 11 4(d)(10)(A)), by striking ‘‘taking’’ and inserting 12 ‘‘take’’; 13 (3) in section 3E(b)(1) (15 U.S.C. 78c– 14 5(b)(1)), 15 ‘‘through’’; 16 (4) striking ‘‘though’’ in section 4(g)(8)(A) and (15 inserting U.S.C. 17 78d(g)(8)(A)), by striking ‘‘(2)(A)(i)’’ and inserting 18 ‘‘(2)(A)(ii)’’; 19 (5) in section 15 (15 U.S.C. 78o)— 20 (A) in each of subparagraphs (B)(ii) and 21 (C) of subsection (b)(4), by striking ‘‘dealer 22 municipal advisor,,’’ and inserting ‘‘dealer, mu- 23 nicipal advisor,’’; 24 (B) by redesignating subsection (j) (relat- 25 ing to the authority of the Commission) as sub- G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 by 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00588 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 589 1 section (p) and moving that subsection to the 2 end; 3 (C) as amended by section 841(d), by re- 4 designating the section subsection (k) and sec- 5 ond subsection (l) (relating to standard of con- 6 duct and other matters, respectively), as added 7 by section 913(g)(1) of the Dodd-Frank Wall 8 Street Reform and Consumer Protection Act 9 (124 Stat. 1828), as subsections (q) and (r), re- 10 spectively and moving those subsections to the 11 end; and 12 (D) in subsection (m), by inserting ‘‘the’’ 13 before ‘‘same extent’’; 14 (6) in section 15F(h) (15 U.S.C. 78o–10(h))— 15 (A) in paragraph (2)(A), by inserting ‘‘a’’ 16 after ‘‘that acts as an advisor to’’; 17 (B) in paragraph (2)(B), by inserting ‘‘a’’ 18 after ‘‘offers to enter into’’; and 19 (C) in paragraph (5)(A)(i)— 20 (i) by inserting ‘‘(A)’’ after ‘‘(18)’’; 21 and 22 (ii) in subclause (VII), by striking 23 ‘‘act of’’ and inserting ‘‘Act of’’; 24 (7) in section 15G (15 U.S.C. 78o–11)— G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00589 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 590 1 (A) in subsection (b)(2), by inserting 2 ‘‘Board of Directors of the’’ before ‘‘Federal 3 Housing’’; 4 (B) in subsection (e)(4)(A), by striking 5 ‘‘subsection’’ and inserting ‘‘section’’; 6 (C) in subsection (e)(4)(C)— 7 (i) by striking ‘‘129C(c)(2)’’ and in- 8 serting ‘‘129C(b)(2)(A)’’; and 9 (ii) by inserting ‘‘(15 U.S.C. 10 1639c(b)(2)(A))’’ after ‘‘Lending Act’’; 11 and 12 (D) in subsection (e)(5), by striking ‘‘sub- 13 section’’ and inserting ‘‘section’’; and 14 (8) in section 17A (15 U.S.C. 78q–1), by redes- 15 ignating subsection (g), as added by section 929W 16 of the Dodd-Frank Wall Street Reform and Con- 17 sumer Protection Act (relating to due diligence for 18 the delivery of dividends, interest, and other valuable 19 property rights) as subsection (n) and moving that 20 subsection to the end. 21 (ll) TELEMARKETING AND CONSUMER FRAUD AND 22 ABUSE PREVENTION ACT.—Section 3(b) of the Tele23 marketing and Consumer Fraud and Abuse Prevention 24 Act (15 U.S.C. 6102(b)) is amended by inserting before 25 the period at the end the following: ‘‘, provided, however, G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00590 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 591 1 nothing in this section shall conflict with or supersede sec2 tion 6 of the Federal Trade Commission Act (15 U.S.C. 3 46)’’. 4 (mm) TITLE 5.—Title 5, United States Code, is 5 amended— 6 (1) in section 3132(a)(1)(D), as amended by 7 section 711, by striking ‘‘the Office of Thrift Super- 8 vision,, the Resolution Trust Corporation,’’; and 9 (2) in section 5314, by striking ‘‘Director of the 10 Office of Thrift Supervision.’’. 11 (nn) TITLE 31.— 12 13 (1) AMENDMENTS.—Title 31, United States Code, is amended— 14 (A) by striking section 309; and 15 (B) in section 714(d)(3)(B) by striking ‘‘a 16 audit’’ and inserting ‘‘an audit’’. 17 (2) ANALYSIS.—The analysis for subchapter I 18 of chapter 3 of title 31, United States Code, is 19 amended by striking the item relating to section 20 309. 21 (oo) TRUTH IN LENDING ACT.—The Truth in Lend- 22 ing Act (15 U.S.C. 1601 et seq.) is amended— 23 (1) in section 105 (15 U.S.C. 1604), by insert- 24 ing subsection (h), as added by section 1472(c) of 25 the Dodd-Frank Wall Street Reform and Consumer G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00591 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 592 1 Protection Act (124 Stat. 2187), before subsection 2 (i), as added by section 1100A(7) of that Act (124 3 Stat. 2108); 4 (2) in section 106(f)(2)(B)(i) (15 U.S.C. 5 1605(f)(2)(B)(i)), by striking ‘‘103(w)’’ and insert- 6 ing ‘‘103(x)’’; 7 8 (3) in section 121(b) (15 U.S.C. 1631(b)), by striking ‘‘103(f)’’ and inserting ‘‘103(g)’’; 9 (4) section 122(d)(5) (15 U.S.C. 10 1632(d)(5)), by striking ‘‘section 603)’’ and all that 11 follows through ‘‘promulgate’’ and inserting ‘‘section 12 603), may promulgate’’; 13 14 (5) in section 125(e)(1) (15 U.S.C. 1635(e)(1)), by striking ‘‘103(w)’’ and inserting ‘‘103(x)’’; 15 (6) in section 129 (15 U.S.C. 1639)— 16 (A) in subsection (q), by striking ‘‘(l)(2)’’ 17 and inserting ‘‘(p)(2)’’; and 18 (B) in subsection (u)(3), by striking 19 ‘‘Board’’ each place that term appears and in- 20 serting ‘‘Agency’’; 21 (7) in section 129C (15 U.S.C. 1639c)— 22 (A) in subsection (b)(2)(B), by striking the 23 second period at the end; and 24 (B) in subsection (c)(1)(B)(ii)(I), by strik- 25 ing ‘‘a original’’ and inserting ‘‘an original’’; G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 in 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00592 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X G:\P\15\CHOICE\CHOICE2017V2.XML 593 1 2 (8) in section 148(d) (15 U.S.C. 1665c(d)), by striking ‘‘Bureau’’ and inserting ‘‘Board’’; 3 (9) in section 149 (15 U.S.C. 1665d)— 4 (A) by striking ‘‘the Director of the Office 5 of Thrift Supervision,’’ each place that term ap- 6 pears; 7 (B) by striking ‘‘National Credit Union 8 Administration Bureau’’ and inserting ‘‘Na- 9 tional Credit Union Administration Board’’ 10 each place that term appears; and 11 (C) by striking ‘‘Bureau of Directors of 12 the Federal Deposit Insurance Corporation’’ 13 and inserting ‘‘Board of Directors of the Fed- 14 eral Deposit Insurance Corporation’’ each place 15 that term appears; and 16 (10) in section 181(1) (15 U.S.C. 1667(1)), by 17 striking ‘‘103(g)’’ and inserting ‘‘103(h)’’. 18 (pp) TRUTH IN SAVINGS ACT.—The Truth in Sav- 19 ings Act (12 U.S.C. 4301 et seq.) is amended in each of 20 sections 269(a)(4) (12 U.S.C. 4308(a)(4)), 270(a)(2) (12 21 U.S.C. 4309(a)(2)), and 274(6) (12 U.S.C. 4313(6)), by 22 striking ‘‘Administration Bureau’’ each place that term 23 appears and inserting ‘‘Administration Board’’. G:\VHLC\041917\041917.148.xml April 19, 2017 (3:00 p.m.) VerDate 0ct 09 2002 15:00 Apr 19, 2017 Jkt 000000 (657255 10) PO 00000 Frm 00593 Fmt 6652 Sfmt 6201 C:\USERS\MWBARK~1\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\CHOICE~1.X