Bureau of Consumer Financial Protection Commission Act
This bill would transform the Bureau of Consumer Financial Protection (the CFPB) from its current structure as an independent bureau within the Federal Reserve System into an independent agency governed by a five-member commission. The commission would oversee the Bureau, set policies, and appoint a Chair who would serve as the chief executive. The composition is designed to require diverse backgrounds (including private-sector experience and state bank supervision) and to ensure bipartisanship (no more than three members from the same political party). The bill also establishes rules for terms, vacancies, and removal, and it makes broad conforming amendments to rename and reorganize references to the Bureau and its leadership across multiple federal statutes. A transitional arrangement keeps the current Director/Chair in place as the initial Chair until all five commissioners are appointed, after which a Chair is chosen from among the five. The bill also grants the commission authority to prescribe regulations and requires the commission’s approval for regular appropriations requests. Overall, the bill aims to increase the independence and bipartisan governance of the CFPB and harmonize its leadership language across the federal code.
Key Points
- 1Structural change: The CFPB becomes an independent agency led by a five-member commission appointed by the President with Senate confirmation, replacing the current single-director leadership model.
- 2Commission composition and terms: The five commissioners must include at least two with private-sector experience in consumer financial products/services and at least one former state bank supervisor. Terms are staggered initially (1–5 years) and then five-year terms; the President can remove members for inefficiency, neglect, or malfeasance; vacancies are filled for the remainder of the term.
- 3Leadership and operations: The Chair serves as the commission’s principal executive officer, handling personnel, budgeting, and administrative functions, but subject to the commission’s policies and approvals (including approval of appropriations requests).
- 4Bipartisan governance and vacancies: No more than three commissioners may belong to the same political party; quorum rules include a temporary six-month initial quorum with the first chair and member, then standard quorum requirements (three members for business, with adjusted rules if vacancies exist).
- 5Conforming amendments: The bill renames and rewrites references to “Director of the Bureau” and related terms to reflect “Chair” and “Bureau,” and it amends numerous statutes (including Dodd-Frank, EFTA, Expedited Funds Availability Act, FDIC provisions, FFIEC, HMDA, and others) to align with the new independent-commission structure.