E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 115 CONGRESS, SECOND SESSION

Vol. 164 WASHINGTON, THURSDAY, MARCH 8, 2018 No. 41 Senate The Senate met at 9:30 a.m. and was appoint the Honorable DEAN HELLER, a Sen- done so with distinction. Now he is em- called to order by the Honorable DEAN ator from the State of Nevada, to perform barking on a well-earned retirement. HELLER, a Senator from the State of the duties of the Chair. After nearly four decades of service to Nevada. ORRIN G. HATCH, this body, tomorrow is Gary’s last day. President pro tempore. f Much has changed during the time Mr. HELLER thereupon assumed the Gary has been with us. Over the years, PRAYER Chair as Acting President pro tempore. Senators and staff have asked more The Chaplain, Dr. Barry C. Black, of- f and more of the legislative counsel’s fered the following prayer: RESERVATION OF LEADER TIME office, but thanks in large part to Let us pray. Gary’s hard work and then to his lead- The ACTING PRESIDENT pro tem- Eternal God, we find rest in the shad- ership, we can always rely on his team pore. Under the previous order, the ow of Your protection and providence. for meticulous professionalism and ex- leadership time is reserved. Shield our lawmakers in their labors pertise. with Your Divine favor so that they f I understand Gary is headed back to may grow in wisdom. Lord, show them CONCLUSION OF MORNING his native Midwest. He departs with how to use today’s fleeting minutes for BUSINESS our gratitude and our best wishes for Your glory, becoming Your instru- him and for his family. The ACTING PRESIDENT pro tem- ments to permit Your Kingdom to Mr. President, on another matter, pore. Morning business is closed. thrive on Earth. Sanctify their the Dodd-Frank law became effective thoughts, words, and deeds as they re- f in 2010. It ostensibly targeted banks member that because of You, they live ECONOMIC GROWTH, REGULATORY that were deemed too big to fail, but 1 and move and breathe and have their RELIEF, AND CONSUMER PRO- 7 ⁄2 years later, Dodd-Frank has proven being. TECTION ACT to be far too blunt an instrument. For We praise You this day, O God, for one thing, it has imposed a crushing The ACTING PRESIDENT pro tem- You are the Alpha and Omega—the be- regulatory burden on small community pore. Under the previous order, the ginning and the ending. banks and credit unions. Rather than Senate will resume consideration of S. We pray in Your strong Name. Amen. fixing too big to fail, Dodd-Frank has 2155, which the clerk will report. threatened to make many of these f The legislative clerk read as follows: Main Street mainstays too small to PLEDGE OF ALLEGIANCE A bill (S. 2155) to promote economic succeed. growth, provide tailored regulatory relief, This is especially problematic be- The Presiding Officer led the Pledge and enhance consumer protections, and for of Allegiance, as follows: cause of the central role local financial other purposes. institutions play in each of their com- I pledge allegiance to the Flag of the Pending: munities. Local lenders provide a ma- United States of America, and to the Repub- McConnell (for Crapo) amendment No. 2151, lic for which it stands, one nation under God, jority of small business loans and near- in the nature of a substitute. indivisible, with liberty and justice for all. ly three-quarters of agricultural loans, Crapo amendment No. 2152 (to amendment and in low-income communities, when f No. 2151), of a perfecting nature. a local bank closes, research suggests APPOINTMENT OF ACTING RECOGNITION OF THE MAJORITY LEADER that loans to nearby small businesses PRESIDENT PRO TEMPORE The ACTING PRESIDENT pro tem- plummet by 40 percent. pore. The majority leader is recog- With farmers, ranchers, small busi- The PRESIDING OFFICER. The nized. clerk will please read a communication nesses, and vulnerable communities, TRIBUTE TO GARY ENDICOTT to the Senate from the President pro Americans need community banks, and Mr. MCCONNELL. Mr. President, they need credit unions, but Dodd- tempore (Mr. HATCH). The legislative clerk read the fol- first, this morning, I would like to rec- Frank is making it harder for these in- lowing letter: ognize a remarkable Senate career that stitutions to survive. Millions of Amer- is drawing to a close. icans, from rural areas to inner cities, U.S. SENATE, Gary Endicott has served in the Of- now find themselves in what research- PRESIDENT PRO TEMPORE, Washington, DC, March 8, 2018. fice of the Legislative Counsel for 37 ers call banking deserts. Fortunately, To the Senate: years. Since his appointment as the help is on the way. Under the provisions of rule I, paragraph 3, legislative counsel of the Senate in Thanks to the leadership of Senator of the Standing Rules of the Senate, I hereby 2015, he has directed that office and has CRAPO, Democrats and Republicans

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1530 CONGRESSIONAL RECORD — SENATE March 8, 2018 have joined together to cosponsor a themselves. It must be in their DNA. is conservative, both said: There is no modest but important bill that would They can’t resist turning back to their such thing as currency manipulation, streamline the obstacles that are trip- old, top-down, tax-and-spend playbook. and SCHUMER and GRAHAM ought to ping up these smaller institutions. It is By lowering the tax burden on com- back off. a commonsense, compromise measure, panies, large and small, America Of course, we proved to be right on and Senators do not need to resolve all turned on a bright neon sign that is that and other issues. of our differences on Dodd-Frank in telling the world we are open for busi- China is rapacious. If we don’t stop order to unite behind it. I look forward ness. Democrats want to unplug it. By China, America will be a weaker place to voting to pass these reforms very lowering middle-class rates and ex- with fewer good-paying jobs, with less soon. panding deductions, we gave families wealth, less strength, and we probably TAX REFORM all across the country more breathing won’t stay the greatest country in the Mr. President, on a final matter, as I room to save or pay their bills. Demo- world—although we deserve to because have discussed, a number of America’s crats want to claw that money back. we play by the rules. largest employers are already rein- Fortunately, for the American peo- President Trump has identified the vesting their tax reform savings in bo- ple, the Republicans in the House, the right opponent—China—much better nuses, pay raises, and new benefits for Senate, and the White House will not than both the Obama and Bush admin- their employees. Higher take-home pay let them take back your tax relief, istrations did. Both Democrats and Re- and lower tax rates are helping fami- your lower utility rates, your bonuses, publicans have been blind to this issue, lies cover today’s expenses and save for or your new opportunities. We are and Trump isn’t. Good. But I would say the future. proud that we took money out of Wash- to the President: Don’t swing blindly In Nebraska, the Lincoln Journal ington’s pocket and put it back in the and wildly at our foe, China. Establish Star reports that hometown companies pockets of hard-working Americans, a well-placed jab at China. Set them Nelnet and Pinnacle Bank have award- and that is exactly where it is going to back. Let them know we mean busi- ed tax reform bonuses to thousands of stay. ness. workers. In Iowa, the Des Moines Reg- I suggest the absence of a quorum. President Trump ought to rethink ister reports that utilities will pass The ACTING PRESIDENT pro tem- his plan so it actually achieves what he along $147 million in tax reform sav- pore. The clerk will call the roll. says he wants it to achieve. ings to their customers. Acadia The legislative clerk proceeded to U.S. steel and aluminum workers Healthcare, with operations in my call the roll. have been battling heavily subsidized home State of Kentucky, has an- Mr. SCHUMER. Mr. President, I ask products from China for decades. I nounced that tax reform will enable it unanimous consent that the order for know. I have Nucor in my State, in Au- to build additional facilities on the the quorum call be rescinded. burn and in Chemung County. On alu- frontlines of the opioid epidemic. The ACTING PRESIDENT pro tem- minum, I have Alcoa in my State, in This week, Vice President PENCE has pore. Without objection, it is so or- Massena. Our steel and aluminum been on the road, hearing how tax re- dered. workers deserve a more level playing form is changing Americans’ lives and RECOGNITION OF THE MINORITY LEADER field against these countries like China livelihoods for the better. He visited all The Democratic leader is recognized. that heavily subsidize their products or three of those States and listened to TARIFFS other countries that purchase Chinese workers and small business owners. Mr. SCHUMER. Mr. President, later steel at artificially low prices and ship It is interesting, though. The huge this afternoon President Trump plans it to the United States. A targeted number of early tax reform success sto- to announce sweeping steel and alu- trade action against China would be ries is not getting the applause it de- minum tariffs. Let me say once again, very helpful not only in providing re- serves from over here on the other side I believe the President’s instincts on lief for the steel and aluminum work- of the aisle. Every one of my Demo- China are correct. All those who are ers in New York and around the coun- cratic colleagues in the House and in trying to push him away from his in- try, but it would send a strong shot the Senate made the political calcula- stincts will allow China over the next across the bow to China for the first tion to vote along party lines and try decade to become the dominant eco- time in decades: We mean business. We to sink tax reform—every single one of nomic power and greatly hurt Amer- are not going to let you prey on us any them in the House and the Senate. For- ican jobs and American prosperity as longer. tunately, those efforts failed. well. So I would say: Mr. President, Targeted trade against China and Yet, even with tax reform now as the stick to your instincts. against countries that allow China to law of the land, it seems my Demo- But while the President’s instincts sell them steel at artificially low cratic friends are so unwilling to admit are correct, the execution on these tar- prices and then send it here, go after their mistake that they would rather iffs is poor. That is the difference them, but instead of getting right at try to sabotage the law that is already here—not the instinct, not that we China, the President’s across-the-board helping families and making American shouldn’t go after China, and not that tariffs will cause more damage to key job creators more competitive. Just we have to do more to bolster Amer- allies and other domestic industries. I yesterday, for example, Senate Demo- ican wealth and American workers not only have steelworkers in Upstate crats announced they would like to against rapacious policies of China’s. New York, I have a lot of autoworkers. spend $1 trillion of taxpayer money and China will stop at nothing, nothing, For instance, we are so proud of the roll back Americans’ brandnew tax nothing, to steal our intellectual prop- GM plant in Tonawanda near Buffalo cuts while they are at it. erty and to manipulate its currency to and the Ford stamping plant also in This popular, new tax bill has been in exclude American companies from Western New York. We are so proud of effect for a couple of months, and they being there. our agriculture. want to roll it back already, take the China has been rapacious about Incidentally, the President is right, money, and spend it. There they go trade, and I have spoken about this Canada has put in certain restrictions again. They just can’t help themselves. problem for years. Early on—I think it on American dairy going to Canada To tax more, spend more, take money was 2004 or 2005—Senator GRAHAM and I that has hurt companies like the Ca- away from American families, and give discovered that China was manipu- yuga cooperative in Central New York it to the Federal Government is a fa- lating its currency. I heard it from and O-AT-KA in Genesee County. miliar refrain from our Democratic Crucible steel up in Syracuse, NY. We have to protect and help our friends. The great thinkers said: They don’t workers in auto manufacturing and our Even amidst this tidal wave of good manipulate their currency. This is pro- farmers who do export and who do good news from tax reform, even in the face tectionist. things. China doesn’t let our auto prod- of higher take-home pay, new jobs, new In the same week—I was quite proud ucts in, in a fair way, but other coun- investments, raises, worker bonuses, of this—the New York Times editorial tries do—Canada does. and foreign competitors like China get- board, which is liberal, and the Wall So the President’s proposal does ting nervous, Democrats just can’t help Street Journal editorial board, which more harm to Europe and other allies

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1531 like Canada than it does to China. That money already, without pointing it in is beginning to realize that. Those are is what is wrong with it. It is so typical the direction of helping workers. the numbers according to Just Capital. of this White House. Even when they Yesterday, Chevron joined the parade As I said, the American people are have a good idea, they mess it up be- of those with stock buybacks. It was starting to catch wind of the truth. cause they don’t think it through, and Chevron who announced that while it Three separate polls yesterday—I men- the President acts only by his in- was making no changes to workers’ tioned Quinnipiac, and there are evi- stincts. You have to act by your in- compensation or benefits, it would be dently two others. Three separate polls stincts and put a thought process on restarting its dormant stock repur- show the popularity of the Republican top of it. chasing program. Do you know how tax bill was significantly underwater The goal of the President to go after much Chevron got from this tax bill? and has lost ground since the last China was not really achieved very Mr. President, $2 billion. Do you know round of polling. I predict those num- well in his proposal. The haphazard how much they are giving their work- bers will continue to slip as more way these tariffs were put together has ers—or benefits—out of that $2 billion? Americans learn that their hard-earned caused policy to miss the mark. It Nothing. Nothing as of now. Do you taxpayer dollars were used to give a seems no one is at home in the White know what they are using it for? Stock tax break to corporations who hoard House right now. President Trump buybacks. Let our Republican friends the savings for themselves. It is no makes up his mind one day, changes it come to the floor and defend those wonder their candidate in a hard- the next, and meanwhile trade policies, stock buybacks. Let them do that. fought race in Southwest Pennsylvania foreign policies, gun policies, immigra- Today, another oil company, Hess, has abandoned the tax argument. It is tion policies are all in chaos because he announced it would be purchasing back not going over well with his working- says one thing one day and another $1 billion of its stock by the end of the class constituents because they get a thing the next. So we need the Presi- year. Since the start of 2018, just in the tiny, little bit, and everyone else gets dent to follow his instincts but then last few months, the cumulative total so much more. allow the people who know this issue of share buybacks has passed $200 bil- Mr. President, Democrats have a plan to craft something smart. lion. Let me repeat that, $200 billion to rein in these buybacks and put the The President and I may agree on has been used for stock buybacks. The middle class first. Yesterday, Senator trade. As I said, we are closer on this month of February set the 1-month BALDWIN and I announced an amend- issue than I have been with either the record for share buybacks, and ana- ment to the pending banking bill that Bush or Obama administrations, but lysts at JPMorgan—hardly a liberal would rein in corporate buybacks by the slapdash way these tariffs were think tank—says they ‘‘expect total giving the SEC the authority to reject constructed have few of us cheering, buybacks in 2018 to surpass $800 billion, buybacks that come at the expense of even those of us who really have want- way up from the $530 billion last year workers. Who will object to that? I ed to go after China long before politics and demolishing 2007’s all-time high hope not my colleagues. They say the was a gleam in President Trump’s eye. that came in a bit below $700 billion.’’ buybacks will benefit workers, so they Well, maybe that is not true; it may That is not CHUCK SCHUMER or CPAC or shouldn’t be objecting to our bill. Sen- have been a gleam in his eye but before any of these liberal think tanks, that ator BALDWIN’s bill and my bill would he ran for anything. is JPMorgan Chase. require company boards and their ex- I strongly urge the President to So our poor Republican friends had ecutives to put their money where rethink these tariffs and focus his pol- hoped this tax bill would send them on their mouth is and certify that the icy more directly at China and coun- a trajectory to win elections and, by buyback is in the best long-term finan- tries that ship cheap Chinese steel to February, the numbers are starting to cial interest of the company. the United States. On the flip side, I turn against them again. Look at the We are going to make this one of the am sure some of our business interests Quinnipiac poll of yesterday. Why? Be- top amendments to the banking bill, will tell the President do nothing on cause, as this tax bill plays out, what and I hope it gains Republican support. trade. Democrats said all along; that the vast If Republicans mean what they say The chamber of commerce—they are majority of the benefits are going to about their tax bill helping workers, interested in the bottom-line profits of the wealthy, it increases the deficit, they should join Senator BALDWIN’s their big companies, and they don’t and it increases the clarion call of amendment. The glut of corporate care if they make those profits at the many on the Republican side to cut share buybacks highlights precisely expense of American workers. They are Medicare and Social Security to pay how the corporate tax cut in the Re- not a barometer here, and President for the deficit they created—it is not publican bill is being put to ill use. Trump is right to ignore them. We going over too well. We will match our Rather than stimulating the economy, have to be smart about this—not just argument against theirs now in Octo- creating jobs, or raising pay, corpora- tough, but tough and smart. We need to ber and November. We are confident we tions are spending the lion’s share of get tough and smart on China, and the are going to win that argument, and the tax savings on goosing their stock. right approach is targeted action that is why already the enthusiasm Let’s not forget, these buybacks are against China’s most flagrant abuses. about this tax bill is fading. relatively new. A ruling by the SEC in REPUBLICAN TAX BILL The massive deluge of corporate the early eighties said they could start Mr. President, on tax, since the Re- share buybacks is proving to be the doing these. Before that, the heyday, publican tax bill passed last year, near- principal legacy of the Republican tax when corporate America dominated the ly every day there has been a new story bill—not benefits to workers, not bo- world, profits were great, jobs were about a corporation choosing to pass nuses, not wage increases, not even growing, and wages went up, the safe along the savings from the tax law to new equipment or investment in R&D. harbor provision wasn’t there. Corpora- wealthy shareholders and corporate ex- I would welcome that. Nope, corpora- tions had to go through a lot of proof ecutives because they buy back their tions are spending the bulk of the sav- before they could buy back their stock, stocks. They use this new tax money ings from the tax bill on themselves, and that made sense, but once our Re- not to help their workers but to buy their corporate executives, and their publican colleagues got in power, they back their stocks. In January, there wealthy shareholders. did what the corporate leaders want was an initial flurry of all these bo- Guess how much of the capital com- them to do and look what happened. nuses. They have been totally over- panies have earned from the tax bill The amendment to say no buybacks whelmed with stock buybacks. What has been allocated to their employees, unless they can prove it is really going Democrats said is proving to be true. the workers who were going to get such to benefit their workers and be in the The vast majority of this tax break is huge benefits from this bill—6 percent. long-term financial interest of their for the wealthy, by the wealthy, used No, no, it is not 60; it is 6. Sixty is the company, that amendment is going to by the wealthy to help themselves, not percentage that has gone back to cor- be one of the top amendments to the help workers. That has been the his- porations in the form of stock upcoming bill. I hope it gains Repub- tory when you give these corporations buybacks—a 10-to-1 ratio. It doesn’t lican support. I really do. If Repub- lots of money, when they have so much make much sense. The American public licans mean what they say, they should

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1532 CONGRESSIONAL RECORD — SENATE March 8, 2018 join Baldwin’s amendment, as I said be- has done since Henry Clay proposed it time high—or thereabouts. It has set fore, but I want to repeat it for the in the 1820s: Put that money into infra- huge records. benefit of all my good Republican structure, jobs, good-paying jobs, effi- I know our friends on the other side friends. ciency. Let’s not let China or another of the aisle are worried because they Now, the glut of corporate share country become the leader in infra- made a dangerous gamble against the buybacks highlights precisely how the structure. They invest. The Chinese Tax Cuts and Jobs Act, but the fact is, corporate tax cut in the Republican Government, the Japanese Govern- all the polling is showing that as peo- bill is being put to ill use. Rather than ment, the European Government invest ple are seeing the Tax Cuts and Jobs stimulating the economy, creating in infrastructure, and so did this gov- Act actually being implemented, they jobs, raising pay, corporations spend ernment, until Donald Trump became are seeing more money in their pay- the lion’s share of the tax savings on President and the hard right gained a checks. Because the withholding tables goosing their stock. Americans are just stranglehold over the Republican were changed to reflect lower tax rates, scratching their heads, wondering why Party. Let’s reverse course before it is people are seeing more take-home pay. we put ourselves in deeper debt so cor- too late. And as the economy continues to grow, porations could further enrich them- I yield the floor. there is going to be more competition selves. Why do we tell our children and The PRESIDING OFFICER (Mr. for workers. grandchildren they are going to pay for SCOTT). The Senator from Texas. Unemployment claims are the lowest the pay raise of the CEO of Exxon or TAX REFORM they have been since 1969. As there is the increase in value because his stock Mr. CORNYN. Mr. President, I guess more competition for workers, that is is going up? That doesn’t make any I have to give my friend, the Senator going to force employers to pay more sense at all. There are much better from New York, credit. Once he made wages, so everyone is going to benefit uses for the money. his bed, he decided he had better lie in from a growing economy. Yesterday, Democrats announced our it. Sometimes I think our colleagues plan to help build a trillion dollars of Democrats made a risky gamble across the aisle have settled for too lit- desperately needed infrastructure in when they bet against the American tle. They settled for a stagnant econ- America. How do we pay for it? We un- people in the Tax Cuts and Jobs Act omy, frozen wages, and an America wind some of these tax cuts for the big- that we passed in December. No Demo- that could no longer compete in the gest corporations to pay for a massive crat supported it—none—and now I world when it came to attracting busi- infusion of Federal funds in infrastruc- think they are beginning to worry that ness and investment. We changed that. ture—job-creating infrastructure, it is actually working. Otherwise, I Every single person on this side of which is desperately needed. Just by don’t understand why the Democratic the aisle—all 51 of us—voted for the putting the top rate on individuals leader, the minority leader of the U.S. Tax Cuts and Jobs Act. Everyone on where it was, reinstituting the AMT Senate, would say: We need to raise that side of the aisle voted against it. and the estate tax, which goes only to your taxes because we can spend your I think the Democratic leader now is the very wealthy, and setting the cor- money better than you can. I guess he getting pretty worried, especially lead- porate rate at 25 percent—you may re- means that we also need to eliminate ing up to the November elections, when call it was the Business Roundtable the doubling of the standard deduction, a number of his colleagues on that side that asked for 25 percent. Oh, no, for which makes sure that the first $24,000 of the aisle are going to have to go to our Republican colleagues and Donald earned by a married couple is tax- voters and say: I voted against your Trump, that wasn’t good enough. Make free—zero tax rate. I guess he thinks pay raise; I voted against take-home it lower—even though the 200 biggest we ought to repeal the doubling of the pay; I voted against increasing the businesses in America said 25 percent child tax credit. standard deduction; I voted against an was certainly an adequate drop. Many As much as he rails about corpora- increase in the child tax credit. I think on my side wouldn’t even think that is tions, the fact is, what we did on the they are pretty worried about it; other- good. business side with taxes has made the In any case, the BMT asked for 25 wise, I couldn’t imagine the Demo- percent. We go to 25 percent, along United States more competitive glob- cratic leader coming out here and say- with these other changes, and guess ally. It is the same argument that he, ing what he said today. what we do with $1 trillion. We create President Obama in a State of the He said: Well, we want to raise your infrastructure jobs—millions. We cre- Union speech, and the ranking member taxes so we can spend it. I think the ate new roads and bridges, new water of the Senate Finance Committee, Sen- folks I represent—the 28 million Tex- and sewer. We say that every rural ator WYDEN—it is the same argument ans I represent—would say: No thank home in America should get broadband they made that we embraced. you. We want to spend our own hard- just as Franklin D. Roosevelt in the We got a little more aggressive than earned money the way we see fit, not 1930s said every rural home should get they did in terms of the rate. We low- send it to Washington to see it go into electricity. We update our power grid ered it, not to 25 percent, as Senator some black hole, and then we will not so all this new energy coming from WYDEN had proposed, but to 21 percent; know what we actually benefited from. other places can go to the most popu- thus, we made ourselves roughly aver- I didn’t necessarily intend to come to lated centers. It would be a huge shot age in the industrialized world, making the floor to talk about that, but I in the arm for jobs in America, for America more competitive. We were couldn’t resist responding briefly to prosperity in America, far more than seeing people going overseas and in- my friend’s comments. this slanted tax bill aimed so much at vesting because they had better tax Mr. President, I do want to congratu- the few wealthy who are so tight with rates than we had here in America. late the senior Senator from Idaho for this new Republican Party. Who owns the stock? You have heard a moment, Mr. CRAPO, the chairman of I daresay our proposal is a much the Democratic leader talk about stock the Banking Committee, on the bill more effective use of taxpayer dollars buybacks. He said: Well, these corpora- that is pending on the floor. He has than a handout to the biggest corpora- tions are using this money to buy their done stellar work to bring this Dodd- tions and will create far more good- own stock back. Do you know who Frank reform bill to the floor, one that paying jobs in the process. owns stock in America? I am not sure will release some of those shackles on I hope our Republican colleagues will of the exact percentage, but a huge per- small community banks and credit rethink things. Their path is a path to centage of it is owned by retirement unions. a cul-de-sac, to great losses in the elec- funds and pension funds of firefighters, They were the victims of overkill tion. Rethink that tax cut. Don’t allow teachers, and others who want to see when it came to regulation under the these buybacks. They are doing no that their retirement is not only safe name of Dodd-Frank, which was de- good for anyone but a handful, and that but also grows. What they have seen signed to address Wall Street and the is where 60 percent of the money is since the Tax Cuts and Jobs Act was excesses of Wall Street. But as I have going on the corporate rate. passed in December is the value of told my friends who are community Join us in taking some of that money their retirement funds go through the bankers and members of credit unions to do what the Federal Government roof. The stock market is at an all- back home: You weren’t the target, but

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1533 you were the collateral damage. We are As we speak, China is turning our That, too, is well documented. But the going to remedy that on a bipartisan own technology and know-how against quid pro quos don’t stop there. They basis, thanks to the Banking Com- us and seeking to erase our national se- aren’t even confined to the technology mittee, its chairman, Senator CRAPO, curity advantage little by little. They space. and our colleagues. are doing it relentlessly and strategi- Recently, there have been calls to in- FOREIGN INVESTMENT RISK REVIEW cally. This massive technology trans- vestigate China’s involvement in MODERNIZATION ACT fer, which occurs out of the public eye American college campuses through Mr. President, this morning, I want and is achieved through China’s delib- the so-called Confucius Institutes. to mention another area where the erate campaign of evasion of our secu- These institutes are proxies for the Banking Committee and Senator rity safeguards, must end. Chinese Communist Party. They offer CRAPO are showing great leadership, We don’t have to look very far to see schools financial benefits in exchange and that is on a bill that will improve how technology is increasingly the to set up shop in close proximity to the CFIUS review process. Let me un- realm where U.S. national security in- U.S. researchers and students whose pack that. terests and China’s economic and mili- views they attempt to influence for CFIUS is the Committee on Foreign tary interests lie in tension with one what are essentially manipulative Investment in the United States. That another or, in the worst case, they ac- propaganda campaigns—ones that con- acronym stands for the interagency tually collide. It is happening almost veniently whitewash over the Com- body led by the Treasury Department, every day. munist regime’s less flattering at- in this case by Secretary Mnuchin. It Consider the widely reported news tributes and their troubling history of polices foreign investment in the this week that CFIUS—the Committee human rights abuses and belligerence United States for national security on Foreign Investment in the United in places like the South China Sea. risks. States—has ordered a full investigation I know our colleague, the junior Sen- The Banking Committee has held two into a foreign bid to take over a promi- ator from Florida, Mr. RUBIO, who co- hearings on the bipartisan bill that I nent American computer chip manu- chairs the Congressional-Executive introduced with the senior Senator facturer. That company, Qualcomm, Commission on China, has called on from California, Mrs. FEINSTEIN, which plays a leading role in supporting U.S. schools that host Confucius Institutes is called the Foreign Investment Risk telecommunications infrastructure, es- to end those partnerships, and he is Review Modernization Act. I hope the pecially by doing the research and in- right to do so. Steady and stealthy committee will have a markup on that vestment of 5G technology, which is forms of information warfare should be bill soon. important for autonomous vehicles and a perpetual concern, especially when The House Financial Services Com- the internet, increasing the use of cel- none other than Gen. Joe Dunford, mittee has also been holding hearings lular technology for what is trans- Chairman of the Joint Chiefs of Staff, on our bill, including one last week, forming our lives. It supports our na- has said that by 2025, China will pose and has more planned in the future. tional security through classified work the greatest threat to U.S. national se- The time to act is now because this in the Federal Government. curity of any nation. process is outdated, and the commit- The cause for alarm is that the deal The bipartisan bill Senator FEIN- tee’s jurisdiction remains too narrow. is a hostile takeover, and the con- STEIN and I have introduced is an im- Let me explain why that is so impor- sequences of the takeover could put portant piece of our overall response to tant. China in the driver’s seat for the next this threat. It has been endorsed by the This review process was not origi- generation of mobile technology. administration and is supported by the nally designed, and is now insufficient, Chinese companies, beholden as they current Secretaries of Defense and to address today’s rapidly evolving are to the Chinese Communist Party, Treasury, as well as the Attorney Gen- threats to our national security. Per- would fill any void that is left once the eral. Let’s not hold this up any longer. haps most alarmingly, many trans- deal is complete, much to the det- I congratulate the chairman of the actions that could pose a national se- riment of our national security and our Banking Committee for the good work curity risk often go unreviewed alto- economy. on the bill that is on the floor. I thank gether. We are still gathering information, him for his leadership and willingness In particular, China has proved adept and not all the facts are known yet, to work with us on this important at cheating the current CFIUS system. but I want to stress that we need to do CFIUS reform bill. I look forward to It exploits gaps and creatively struc- our due diligence. We need to have a the upcoming markup of this bill in the tures investments in U.S. businesses to comprehensive review of this hostile committee soon. evade scrutiny. They literally have takeover. In my view, CFIUS, with FIX NICS BILL been vacuuming up startup technology Secretary Mnuchin leading at the Finally, Mr. President, let me say firms that are going to produce the Treasury Department, is right to be ex- that every day that goes by since the next cutting-edge technology that tremely cautious and to investigate shooting in Parkland, FL, on February would give America a competitive ad- this matter further. 14—every day that goes by, we are dis- vantage against the rest of the world Today there is a growing recognition tracted by other concerns, and our when it comes to our national security, that foreign investors are getting more memories dim of the terrible mass and they are thinking strategically in sophisticated in accessing our tech- tragedy that occurred at that school, the long term by showing up as inves- nology. As this week’s developments the shootings that occurred there that tors in some of these businesses and show, we can’t be naive in thinking day. flying beneath the radar screen. They that this isn’t happening or that it is I know the Secretary of Education, are unreviewed under the current not a clear and present danger or naive Betsy DeVos, was at Stoneman Doug- CFIUS process. about State-owned enterprises in coun- las High School yesterday for the stu- To circumvent review, China will tries like China, where there is no such dents’ first full, normal schoolday, 3 often pressure U.S. companies into ar- thing as the private and public sector. weeks after the shooting. She said it rangements like joint ventures and co- The government controls everything was a sobering moment—and I am sure erce them into handing over their tech- because that is the nature of their it was—speaking to the students and nology and their know-how. This en- Communist system. teachers, who still flinch remembering ables Chinese companies to acquire and The Chinese Government has plans to the sounds of bullets in the hallways of then replicate U.S.-bred capabilities on dominate mobile technology, quantum their school. Fourteen students died, their own soil, destroying jobs here in computing, artificial intelligence, and along with one teacher, the school’s America in the process, as well as our other industries; that much is clear. athletic director, and a coach who was industrial base. Many of these tech- One tactic is to force American compa- shielding students with his body so nologies have a direct military applica- nies to transfer high-tech industrial ca- they would not be hit. tion, and my bill, cosponsored with pabilities to China’s homegrown play- That is the thing about these Senator FEINSTEIN, addresses this prob- ers in exchange for the U.S. firms gain- events—these stories make us sad and lem. ing access to the Chinese market. angry and sometimes numb, all at the

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1534 CONGRESSIONAL RECORD — SENATE March 8, 2018 same time, but from these stories, from ens of courts are failing to upload con- It is your decision to decide, through these tragedies, heroes do emerge. viction records into the FBI National your majority leader, what we consider We saw one of those heroes last fall Instant Criminal Background Check on the floor of the Senate. An effort to at Sutherland Springs, TX, where peo- System and that this failure could re- do this by unanimous consent is cer- ple were gathered to worship at a small sult in convicted felons purchasing tainly understandable in light of the Baptist church just outside of San An- guns. This bill would help alleviate events of the last few weeks, but if tonio. A man who prefers not to be rec- that problem. A similar glitch is one Senator MCCONNELL were to announce ognized grabbed his rifle and ran to the that allowed the gunman in Sutherland that as soon as we finish this banking church that was under attack, and he Springs, of course, to purchase the fire- bill, we are going to move to the Fix saved lives in the process by preventing arm he used when the Air Force failed NICS bill and have it open to amend- the gunman from continuing the car- to upload his conviction records into ment, I think he would find support nage. That is a case of somebody tak- the National Instant Criminal Back- from both sides of the aisle to do that. ing an AR–15 out of his gun safe. He is ground Check System, as they were ob- I hope he will, because things are a certified shooting instructor. He ligated to do. The law requires that changing in America, as they should. came to the aid of people who were de- these convictions be uploaded, and now Gun violence and the terrible tragedies fenseless and who were being slaugh- we need to make sure those laws are that occurred in Texas and in Florida tered at that church, and he saved enforced. and in so many States have really Sixty is how many votes we need to many lives. raised consciousness of this issue. The person who was shooting at that pass this legislation in the Senate, and I am a grandfather and proud to be. I church in Sutherland Springs was a I am confident, were that bill to be have two 6-year-old twins who are first convicted felon, and he was, under ex- brought to the floor and we had a vote graders in Brooklyn, NY. They are the on it, it would actually get many, isting law, legally permitted to pur- cutest kids in the world, and I am very many more—close to unanimity—here chase or possess firearms. That is why, objective about that. when I came back to Washington after in the Senate. Last week we tried to About 2 weeks ago, my little grand- get an agreement to have a debate on visiting Sutherland Springs at the next daughter came home from the first the bill followed by an up-or-down Sunday service, I introduced a bill to grade and said to her mom: Mom, they vote. Sadly and inexplicably, the mi- fix the holes in the national instant told us at school that if there is a nority leader blocked that agreement. I background check system—to make shooter outside the school, stay away don’t think the minority leader op- sure that shooters like the one at from the windows, and if a shooter poses the bill—he is actually a cospon- Sutherland Springs could not legally comes in the classroom, get on the sor of it—but he is in a bind. He is purchase firearms. floor. being pressured by a handful of those Part of the reason I did that was be- First grade. Is there any sane person in his conference who say that this is cause after I talked to Pastor Frank in America who thinks that should be not sufficient. Pomeroy, who lost his daughter Anna- I know people on both sides of the a normal talk in the first grade class- belle in the massacre, I promised my- aisle would like to do more, but I want room? Is there any person, constitu- self I would do everything in my power to make sure we don’t fail to do any- tional scholar or not, who believes the to prevent similar events from occur- thing at all or that we don’t end up Second Amendment to the Constitu- ring in the future. I did the same after doing nothing. Many of these Members tion of the United States was designed I spoke with a man by the name of An- have indicated that they want votes on to allow this to happen? I can’t imag- drew Pollack, who lost his daughter other measures. Frankly, I would be ine. Meadow in Florida last month. I met fine with that, but let’s make sure we Ninety-seven percent of the Amer- Andrew last week, along with Senator don’t leave here another day empty- ican people believe in universal, com- RUBIO, who I know has been similarly handed by failing to take action on the prehensive background checks to keep moved to take action. one consensus piece of legislation that guns out of the hands of those who After having these difficult conversa- would be supported by an over- would misuse them, including con- tions, I can’t tell my colleagues how whelming majority of the Senate. victed felons and mentally unstable disappointed I am that the Senate has I would like to be able to report good people—97 percent. The overwhelming done nothing—nothing—to prevent news to Pastor Pomeroy and his wife majority of gun owners feel exactly the them from happening in the future. We Sherri. I am sure my colleagues from same way. So why in God’s Name have can’t even tell fathers and mothers Florida would like to do the same for we not taken that up since the tragedy that we have taken the first step to- the shocked families who are still in Florida and the tragedy in Texas? ward ending some of the violence that grieving in Parkland. We need to send There is no explanation for it other plagues our country, that puts bullet a message to families that when they than fear—fear of the National Rifle holes in our classrooms and spills blood drop their children off at school and Association and the gun lobby. That is inside some of our most sacred places. when they go to church to worship, the only explanation. The bill that I introduced to fix the they will be safe—or safer than they I salute the legislators in the State National Instant Criminal Background would be if we fail to act. of Florida who this last week defied the Check System is called Fix NICS. That Mr. President, I yield the floor. NRA and defied the gun lobby and is what it does. It fixes the holes in the The PRESIDING OFFICER. The as- passed their own measure for gun safe- background check system so that peo- sistant Democratic leader. ty. I don’t agree with parts of it. Giv- ple like Mr. Kelley, the shooter at GUN SAFETY ing cafeteria workers in schools the Sutherland Springs, could not legally Mr. DURBIN. Mr. President, I thank right to carry arms around the purchase a firearm. I am grateful to my colleague from Texas. I listened school—I don’t think that is a wise my colleagues who have cosponsored carefully to his words about gun safe- thing at all. I understand that there is that bill. It includes the majority lead- ty, and I agree with so much of what he opposition to that from teachers’ orga- er and the minority leader, Senator said. He talked about bringing his bill nizations and even Republican leaders SCHUMER, as well as Senator MURPHY to the floor. I think his bill is a good in Florida. But they did stand up when and Senator BLUMENTHAL from Con- bill. His bill tries to provide more in- it came to questions about how old you necticut and all of our close to 60 bi- formation into the NICS system. We have to be to buy a firearm, a long gun, partisan cosponsors. They believe that definitely need to do that. He also said and other questions that I think are what the bill tries to do, which is to fix he was open to amendments on the just common sense. our broken background check system, floor. I am as well. I think there are So I would say to my friend from is important and will save lives and other aspects of gun safety that we Texas, the majority whip, what you will keep guns out of the hands of con- may even find common ground on as said is something I can support. Bring victed felons. well. But I might remind him that the your bill to the floor, open to amend- Recently, we saw that the bill could decision about the business on the floor ment. Let us have our day in the Sen- make a real difference in places like of the Senate is in the hands of his side ate where we actually act as legisla- Ohio. There, it was reported that doz- of the aisle. tors, where people will come to the

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1535 Galleries and not see an empty Cham- prove to America that they love this quest of the same banks that started ber but instead will find Members of country and they can make it a better the crisis. the Senate, 100 strong, Democrats and country. That is all they have asked We know what happened the last Republicans, at their desks, debating for. time financial regulations were eased: measures that make a difference in the For 17 years, I have come to the floor an economic collapse that rippled not life of America. That is why we are of this Senate—I know you have to be just through the United States but sent here. patient as a Senator, but this is get- around the world. That financial crisis I had a friend of mine years ago when ting a little crazy—for 17 years, I have of 10 years ago left our country spi- I served in the House—he was a Con- come to the floor of the Senate and raling into deep recession. It left al- gressman from Muskogee, OK. His asked my colleagues, Democrats and most 9 million Americans out of work name was Mike Synar. He was a dear, Republicans, will you give them a and our unemployment rate above 10 close friend of mine. Mike lost his pri- chance? Will you just give them a percent. Families across America lost mary in Oklahoma because he was fear- chance? Let them show you that they $19 trillion in household wealth, retire- less. He used to come to the floor when can bring something of value to this ment, and savings. Hard-fought savings we had votes, and he would see Mem- country. Let them prove to you that that they put aside for their kids’ edu- bers of his own caucus kind of wincing, they are no danger to this country in cation and their retirement evaporated afraid to vote for something they knew any way whatsoever and, in fact—just on a daily basis in the midst of that re- was right for fear of the political con- the opposite—will make us stronger. cession. sequences. He used to get right in their Give them a chance. In my home State of Illinois, we faces. Mike would say: If you don’t We haven’t been able to do it, and weren’t spared. During the height of want to fight fires, don’t be a fire- President Trump has made it worse. On the financial crisis, almost 800,000 peo- fighter. If you don’t want to stand here September 5, he eliminated the DACA ple in my State experienced mortgage and debate controversial issues and protection program. He said that as of delinquencies and 70,000 more went vote on them, don’t run for Congress. March 5, which was Monday of this through personal bankruptcy. I remem- Mike was right. He was right then, week, they will lose their protection. ber going to these meetings where and he is right now. The only thing that protects them at gymnasiums would be filled with peo- Let’s bring gun safety to the floor of this moment is court decisions, which ple trying to find some way to save the Senate. Let’s open it to amend- could change in a week or a month. their homes because the mortgages they had signed up for had blown up in ments. Let’s have a fulsome, bipartisan But if those court decisions don’t come their faces. This was evident in my debate. We understand that nothing is their way, those young people who hometown of East St. Louis, in the city going to pass without bipartisan sup- have lived here their entire lives, who of Chicago, in Aurora, and many other port. We should do everything in our believe they are Americans and want communities. Of course, the cost of power to exercise the power and the to be part of America, will be subject this financial crisis fell, as it always right we are given as U.S. Senators to to deportation. That is the reality. does, on the shoulders of everyday fam- fix the problems facing American fami- The Senate took up this measure a ilies. lies. This is a problem. It is a problem few weeks ago. We gave to the Presi- when a first grader in Brooklyn, NY, In the wake of those terrible losses dent six different bipartisan solutions and the sacrifices that had to be made, has to be warned that if somebody to this problem—Democrats and Re- walks into the classroom with a gun, we in Congress said: We are not going publicans agreed on six different ways to let this happen again. We won’t let she is supposed to get down on the to solve it—and the President rejected floor. these banks take control again. We every one. He rejected the bill that won’t let greed overcome common DACA came before the Senate. Only 8 Repub- sense when it comes to banking policy. This is the week, of course, of Presi- licans—only 8 out of the 51 Repub- President Obama signed into law dent Trump’s deadline on DACA stu- licans—would stand up and vote with commonsense financial reforms and dents—Dreamers—those young people Democrats to solve this problem. I put an end to some of the worst, inex- who came to the United States as in- wish it were more. We only needed a cusable practices by banks that fants and toddlers and young people, few more. brought our economy to its knees. grew up in this country, pledged alle- Now we are in a position where this These new Wall Street reforms were in- giance to that flag just as we did this Senate again, like the issue of gun tended to address the dangerous prob- morning, and believed that they were safety, is not taking up the issue of lem of too big to fail so that American part of America until, at some point in DACA and the Dreamers. It isn’t as taxpayers would never again be on the their teenage years, their parents though we are too busy around here, is hook for the consequences of reckless- pulled them aside and said: I have to it, when you look at this empty Cham- ness and greed on Wall Street. tell you something. You are not legal ber and these empty desks? We could Systemically important banks whose here. You are undocumented here. You do a lot of things here if we were deter- demise would pose serious risk to our can be deported tomorrow, and we mined to use the power and oppor- financial system were subjected to would be deported with you. tunity that have been given to us by higher capital buffers and increased le- They continued their lives with the the American voters. verage requirements. In other words, if resilience that a lot of young people Mr. President, the one pending issue the Federal Government was going to show. Some of them did amazing that is before us, I would like to dis- put an insurance program in place to things, even with the knowledge that cuss this morning. guarantee that it would protect the they weren’t ‘‘legal in America.’’ They Next week, it will be the 10th anni- savers at the bank, we were going to achieved extraordinary things in edu- versary of the collapse of the company require the banks to do responsible cation and in serving their commu- known as Bear Stearns. As we approach things—don’t put taxpayers on the nities. They did it against great odds that anniversary, it is remarkable to hook for your stupidity and your greed. because they don’t qualify for Federal me that Congress is now debating, 10 Banks were required to report their assistance for higher education. If you years later, an effort to undo the finan- lending data to ensure that borrowers go to college and you are one of these cial reforms we put in place after what had the ability to repay the loans they undocumented Dreamers, you don’t get was tantamount to a recession or de- took out and to avoid abusive mort- Federal student loans. You don’t get pression hit America. That was the gage practices. Do you remember what Pell grants. You have to go out and worst financial crisis of our lifetime 10 happened? People would walk into a work. You have to save up enough years ago. Many of us never want to bank, and they would be lured into a money to go to school. That is the only see it repeated. mortgage they could barely afford to way. They did it, and all they have I am supportive of meaningful regu- pay, some of them unaware of the fact asked for in return, all they have ever latory relief for smaller banks, commu- that there was a balloon provision in asked for, is a chance to earn their way nity banks, and credit unions, but I that mortgage where the interest rate into legal status in America. Brought cannot support legislation that rolls in a few years was going to dramati- here as kids, they want a chance to back key Wall Street reforms at the re- cally increase and make their monthly

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1536 CONGRESSIONAL RECORD — SENATE March 8, 2018 payments financially impossible for Members of the Senate and House in go into repayment with private finan- them. that room when they announced to us cial institutions or, in the case of Fed- Many of them said: Well, if the value that we were within 24 hours of seeing eral student loans, servicers contracted of my real estate goes up dramatically, the economy of the United States start by the Department of Education. These then I will just refinance the mortgage. to collapse. You never forget those mo- servicers are supposed to help the bor- It did not go up dramatically, it went ments. They told us that the banking rowers navigate the repayment process down, and that is when people faced issues that we have discussed here this by making sure they are on the right mortgage foreclosure. morning had led us to the point where repayment plan, processing payments So we said: Let’s rewrite the rules. we had to step in as a government to correctly, and keeping borrowers in- Let’s not let the banks lead people into save the banking industry in America formed. Well, how are they doing? Be- a financial obligation that is so risky in order to save the economy of Amer- tween July 2011 and August 2017, the and so dangerous that we never want to ica and perhaps the world. Consumer Financial Protection Bureau see it again. Those are sobering words, and I re- handled almost 51,000 complaints re- The new rules and regulations pro- member them well. They inspired us. lated to private and Federal student vided certainty to banks and con- They drove us to the point where we loans. The majority of the complaints, sumers. And what happened next? Our came up with new financial reform, se- both private and Federal, addressed dif- economy did very well. With this new rious reform, so that there would never ficulties in interacting with lenders or generation of regulation on banks—it be another repeat of that terrible day. servicers. This is unacceptable. Lend- didn’t stifle economic growth at all. In We are on the floor of the Senate now ers and servicers should be making re- part due to these sensible reforms en- arguing about changing those stand- payment easier, not more difficult. acted in Dodd-Frank under the Obama ards of reform. To improve Federal and private stu- administration, our economy now has If we are going into this issue to de- dent loan servicing, our amendment in- an unemployment rate of 4.1 percent, bate it, there is one part of it that I cludes the Student Loan Borrower Bill not 10 percent. Banks are lending, and want to raise. It is one of the seven of Rights. It requires notifications and bank profits are at record peaks. They amendments that have been put for- protections for borrowers when a loan are making money hand over fist. In ward by the Democratic side of the is sold or transferred to another com- 2016, banks in America made their aisle. I think it is critically important. pany or when the interest rate or other highest profits ever. This was after the It deals with an issue that every single key terms of the loan change. It estab- regulations we enacted—the ones they Member of the Senate understands if lishes a standard for applying pay- have been complaining about ever they have spent 15 minutes back home. ments so that payments are applied in since. It is the issue of America’s student a way that most benefits the borrower. How about American businesses? loan crisis. It protects borrowers from unreason- They are thriving. Our gross domestic For many Americans today, there is able late fees. It requires servicers to product grew by 2.5 percent in the no bigger drag on their families than provide borrowers online access to in- fourth quarter of 2017. In fact, since the student loan debt. More than 44 million formation about their loans, such as passage of this Wall Street reform, our Americans cumulatively owe more payment history and loan terms, and economy has grown at twice the rate of than $1.5 trillion in student loan debt. requires key information to be dis- other advanced economies, while our That is greater than the total amount closed to borrowers by servicers. The student loan borrowers’ bill of stock market has—until just a few of credit card debt in America. rights also prevents servicers from weeks ago—hit record after record. You Unlike most of us who could borrow using predispute mandatory arbitra- can’t argue that we are regulating a reasonable amount to finance our tion clauses to prevent borrowers from banks so much that it is hurting the college education, this generation of holding them accountable in court. economy when you read these numbers. college graduates starts off with an av- While Federal student loan borrowers Nearly all measures in the labor mar- erage debt of $27,000 on day one after often face challenges, the situation is ket have fallen below their prereces- graduation. Many have much, much worse for borrowers who have private sion averages. This is the result of a more, especially if they were duped by student loans, not government loans. sensible, forceful response by Congress the notorious for-profit college indus- There is now an estimated $165 billion to illegitimate and dangerous practices try in America. in outstanding private student loans. by the banking industry. I hear from young people who have The Consumer Financial Protection We simply cannot afford to return to had to forgo home ownership, starting Bureau reported that in 2012 at least that thrilling time of yesteryear when a family, and buying a car because of 850,000 private student loans, worth $8 banks were not carefully regulated and student debt. I also hear from those billion, were in default. carefully watched so they didn’t go who have gone back to school and stay Private student loans often have un- overboard. Instead, as we approach the in school because they can’t imagine capped variable interest rates, which 10th anniversary of the worst financial starting to pay back their debt. They can spike to 20 percent and more, and crisis since 1929, we should be working dig the hole deeper every semester. hefty fees, and these loans often lack to strengthen our financial system, Too often, this debt involves their the protections that come with Federal protect families and businesses and the parents and grandparents. It was re- student loans. Unfortunately, many hard-earned money they have saved, ported a couple years ago that a grand- student borrowers, and even their fam- and continue to grow our economy. mother—who was kind and signed on as ily members, don’t understand the dif- There is a room just a few steps away a cosigner of her granddaughter’s stu- ference between a Federal loan and a from this Senate Chamber on this floor dent loan debt—after the grand- private loan, and they end up taking of the Senate where I have been daughter defaulted, was being chased out costly private loans when they are present twice at a historic moment. by the Federal Government, which still eligible for Federal loans that are The first one, with great sadness, was threatened to attach her Social Secu- much more reasonable with lower in- 9/11. I was meeting in that room as we rity benefits so they could recoup the terest rates. finally tried to understand what was student loan that her granddaughter Almost half of private loan borrowers happening to America with the attacks signed up for with her cosignature. in 2011 and 2012 did not max out on on the World Trade Center, the plane That is why we are bringing an amend- their more reasonable Federal loans crashing in Pennsylvania, and the ment to the floor, and it should be part and ended up taking out private loans plane crashing into the Pentagon, with of this debate on this bill. that were worse. That is why I intro- black smoke billowing across the Mall. If we are going to talk about reform duced the Know Before You Owe Pri- It was that room. for banks, let’s talk about a reform vate Education Loan Act, included in It was that same room where we were American families really care about— this amendment, requiring borrowers called together by the head of the Fed- student loan reform. to be notified of the difference and eral Reserve, Mr. Bernanke, and the One of the things included in this their eligibility. head of the Treasury Department, Mr. amendment is a borrower bill of rights. Finally, the amendment requires pri- Paulson. There were probably 20 or 30 Once a student graduates, their loans vate student lenders to offer student

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1537 loan rehabilitation consistent with the term to have such a high bar that have taken loans, because that is the Federal student loans. It gives private most students don’t even try to pursue bank in town. They have been longtime student loan borrowers who default a the exception because of the difficulty customers of this bank. In many in- fresh start. and expense of proving undue hardship stances, the bank employees and the My amendment also addresses the in court. people in the bank have grown up to- key issue of bankruptcy. Did you know We tried to address that. This amend- gether. They know each other, but they that if you borrowed money to buy a ment would provide clarity around also understand seasonal income. second home, buy a car, or buy a boat undue hardship by identifying situa- When you are a farmer and rancher and then lost your job and couldn’t pay tions where there should be a rebutta- who doesn’t come in with a W–2 every off those loans and went into bank- ble presumption that a student loan single week or every month—it comes ruptcy court saying: I don’t have any debtor has an undue hardship. We tried in seasonally—they understand the money left, and I can’t pay off these to address it in terms of those who credit restrictions there. loans, the court could discharge those clearly are facing undue hardship and A banker, named Debbie, at the loans for your vacation home, your car, need a helping hand. What are the cat- Farmer State Bank of Allen wrote me your boat, in bankruptcy, and say: We egories of those facing bankruptcy who this and said: wipe the slate clean; you filed for bank- cannot discharge current student loans Between the Ability to Repay and Global ruptcy, you qualify, and the slate is who would be able to discharge them Cash Flow analysis, particularly for a bank wiped clean. However, if one of your under our amendment? It will be those of this size, these new rules take our time loans is not for a second home, a car, who have been determined by the Vet- away from doing what needs to be done—car- ing for our customers. or a boat but is a student loan, then, erans’ Administration to have a serv- We have 12 employees and we’re treated the student loan is not dischargeable ice-connected disability. Should we the same as JPMorgan Chase, or Goldman from bankruptcy. Originally, this was give disabled veterans in America a Sachs—both of which have an entirely dif- done in the 1970s because there were helping hand like this? I think so. How ferent business model of operating. They do some students exploiting the system— about the family caregiver of elderly or not operate in towns of 900 [people]. . . . borrowing money and then declaring disabled family members or veterans? That’s not their business model or their bankruptcy after graduation. Then, in How about those receiving Social Secu- kinds of markets One of our key employees now spends most 2005 Congress extended rity disability whose only income is of her time on compliance issues. Total costs nondischargeability not just to Federal Social Security? How about those who for this employee, together with the cost of Government loans but to private loans, spent years at a low income? Do you the annual compliance audit [and everything which even extended it to those loans think they might be facing an undue that goes with it is], now exceeds $100,000 an- that were given by these notorious for- hardship and can’t pay back a student nually. profit colleges and universities. loan? I think so, and this amendment Again, folks in big towns may not So before 2005, private student loans would give them the opportunity to think it is a big issue to have $100,000 were treated in bankruptcy pro- make their case. in appliance costs, but the total net in- ceedings like credit card debt and There are other provisions, as well, come of this bank for the year is right other types of private unsecured debt. but I see colleagues on the floor who at $500,000 a year, and $100,000 of it is They could be discharged as part of a want to speak as well. I have spoken now spent on compliance. bankruptcy plan to help a student for a while. I am going to stand down How did this happen? This happened debtor get back on his or her feet. But in just a moment. when Congress decided in 2010 to pass in 2005, when Congress passed a sweep- If we can take up the issue of making something called Dodd-Frank. Dodd- ing bankruptcy reform bill, a provision it easier for banks to do business in Frank was a bill signed into law in was slipped in that gave private stu- America, can we spare a few minutes to July of 2010 to deal with the financial dent lenders a uniquely privileged sta- debate whether we can make it easier crisis that happened in 2007 and 2008, tus. Only a few types of private unse- for student borrowers to survive when which was real. The largest banks in cured debt are nondischargeable in the student debts they face are stop- our country took some incredible risks. bankruptcy: child support, back taxes, ping them from moving forward in It caused a financial domino effect all alimony, criminal fines. Now private their lives? These are massive debts over the country, and it caused great student loans are part of that list. that stop them from getting married, risk for our international markets. Since 2005, lenders have been buying a home or a car, or starting a In response to that, Congress rose up incentivized to push expensive private family? That is the reality for many with a strong Democratic majority, student loans on students, many of families across America. and President Obama ran to it and whom will not be able to repay the I hope my colleagues will join me. A said: We need to do something. loans. This is an enormous problem. lot of us give some great speeches They looped together as many dif- I cannot explain why private student about student loans. It would be ter- ferent financial restrictions as they loans are given special treatment in rific if we could allow on the floor of could. They created a new thing called the bankruptcy code. Neither can the the Senate those speeches and a vote the Consumer Financial Protection Bu- Chairman of the Federal Reserve, Je- on that critical issue. reau, with no oversight at all. They rome Powell, who told the Senate re- I yield the floor. created a whole litany of new regula- cently that he was ‘‘at a loss’’ to ex- The PRESIDING OFFICER (Mr. SUL- tions and said: This will only be for the plain why we don’t allow student debt LIVAN). biggest banks because they were the to be discharged in bankruptcy. He said The Senator from Oklahoma. violators. that the growing amount of non- Mr. LANKFORD. Mr. President, let They put it out there, and then the dischargeable student debt ‘‘absolutely me tell you about Farmers State Bank regulations started flowing after that. could hold back growth.’’ of Allen, OK. I know exactly where Guess what. Farmers State Bank of We need to address this looming stu- Allen, OK, is. I bet a bunch of folks in Allen, which was not the cause of the dent debt crisis. My amendment would this room do not. It is a small town, financial collapse in America, is now help by restoring dischargeability for and this a small bank. There is $43 mil- caught up, and they are struggling to private student loans in bankruptcy. lion in total assets in that bank. That survive as a bank. Because Congress The amendment also clarifies the is a pretty small bank, as banks go. It decided they were going to do some- undue hardship exception that Con- is located in a town of about 900 Okla- thing, the something ended up being gress wrote into the bankruptcy code. homans in total. The town has a num- something that is devastating rural We said: There is one provision. If you ber of small business owners, farmers, economies in my State. are facing undue hardship, then, per- and ranchers—folks that some people Since the passage of Dodd-Frank, we haps you can discharge even a student in this room fly over. There are good have seen a 16-percent decline in the loan. families who live in that great town. total number of Oklahoma bank char- Almost never does a court find undue Many of them have great credit scores ters—just in my State. There is a 35- hardship. Congress did not define the and have a good family history of re- percent decline in Oklahoma charter term, and most courts have interpreted payment back to the bank when they banks with less than $100 million in

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1538 CONGRESSIONAL RECORD — SENATE March 8, 2018 total assets since Dodd-Frank. The ef- to track 27,000 new mandates to keep ranchers and citizens who are trying to fects of Dodd-Frank were felt pretty up with it. start small businesses. Let’s get back quickly in Oklahoma. It was passed in How are you doing with that? to doing that again. Let’s not put 27,000 2010. By the 2013-to-2014 reporting time, That is what real life looks like. I new restrictions on a small community more than 40 percent of the banks in have had folks say to me: This is some bank and tell it that it has to abide by Oklahoma no longer did mortgage giveaway to the biggest banks. everything that JPMorgan Chase does lending at all. What we are dealing with in this re- and treat it as if it is the same. It is Let that soak in for a minute—banks form package is pretty straight- not. that don’t do mortgages. If you are in forward. The Wall Street Journal wrote There is Frazer Bank in Altus, about a rural community, that is the bread an editorial earlier this week saying which my wife and I have a long- and butter of normal lending in that that the bill ‘‘eases administrative bur- standing saying: Everywhere you go in community—going to get a mortgage. dens on 5,000 community banks that the world, you are going to bump into But 40 percent of the banks in Okla- make up 98% of the financial institu- somebody from Altus, OK. Try it some- homa, starting in about the 2013, 2014 tions but only 15% of the assets.’’ time. reporting cycle—just 3 or 4 years after Let me run that past you again. A local banker wrote: This past week Dodd-Frank passed—had already said What we are dealing with deals with 98 in Altus, we had a local small business the compliance costs were so high and percent of the banks, but of total bank- owner who applied for a home mort- the complexity was so great that they ing assets in the country, it is only 15 gage loan. The customer had a down no longer offered mortgages and mort- percent of the assets. That means the payment and closing costs, but one of gage lending. top 2 percent of the banks in the coun- the key issues preventing our bank There are folks who say: We will just try—the largest top 2 percent of the from making this personal loan was drive to a big city and go to a big bank banks in the country—have 85 percent the time constraint of 2 years of his- and get it, and they will still take care of the assets. I understand the higher tory. This is someone to whom we of that. Quite frankly, that is what is regulations on those. They are signifi- would have made a home loan prior to happening. Dodd-Frank has done an ex- cant. If they fail, they take down the Dodd-Frank, but now we cannot. cellent job of increasing the size, global economy. For the other 98 per- So a small business owner with clos- power, and strength of the biggest cent of the banks in the country that ing cost money and with an ability to banks in America and has targeted the have only 15 percent of the total assets repay is now blocked out. How serious smallest banks in America. We are in the country—these are the smallest is that? watching mergers all over my State, as banks in the country—why are they Jim Hamby from Vision Bank in Ada the smallest banks struggle under the being dragged into this? wrote me and was trying to describe compliance costs. It almost looks like All we want to say is to allow local exactly what this looks like. the design of Dodd-Frank was to cause banks to be local banks again and to be He made the statement: Overly pre- biggest banks to get bigger because the able to loan to their neighbors. These scriptive rules on mortgage lending are smallest banks would not be able to are the folks with whom they go to the big issue. The ability to repay and survive under the compliance burdens church and are in Rotary Club, and the rules governing that topic are that were then created for them. with whom they have grown up. They geared for people who are W–2 wage What does that look like in real life? know their kids, and they know their earners, not small business people. Let me tell you about a gentleman who families, but they are dealing with all Many small business people have al- I bumped into early Monday morning. these arcane requirements. They are ready been denied credit who would He was flying out of Oklahoma. I was dealing with 27,000 new rules, and they have otherwise qualified for a mort- sitting next to the gentleman, and just can’t make it. gage, and that is bad policy. Any mort- were striking up a conversation. He is What does this look like in real life? gage bank keeps its own books and a farmer and rancher in Oklahoma. He Let me give you an illustration from should automatically define what is a owns about 200 acres in North Central Legacy Bank in Elk City. Damon, from qualified mortgage. This would help al- Oklahoma. He started to go through Legacy Bank in Elk City, OK, said: leviate the ‘‘ability to repay’’ rule and the purchase process to actually buy As a community banker, my job has be- allow us to take better care of our cus- that acreage and couldn’t get mortgage come much more difficult and burdensome to tomers. lending for it. No banks in the area our customers. Legacy has always strived to Don’t miss what he is saying there. offer the best customer service a bank can The rules are written for people who would do it. Why? The Dodd-Frank re- offer. I used to be a lender to all. However, quirements. Suddenly, a guy in Okla- with the changes that have come about with get a paycheck from week to week, not homa trying to buy 200 acres had to this bill, along with the fines and penalties for the small business owner and cer- find a way to scrape together $100,000 of that are a potential and, at times, don’t use tainly not for the farmers and ranch- cash to buy a ranch. common sense, I am now a commercial lend- ers. Now, 5 years ago, 10 years ago, or 15 er only. Here is a statement from a banker in years ago, if you wanted to get that Let that soak in for a second. At Leg- Northwest Oklahoma who asked a sim- same ranch, you would go to the bank acy Bank in Elk City, he used to make ple question: What about a $60 million in town. Now the bank in town has to loans to everyone, and now he is a com- bank in the northwest corner of Okla- tell you that you have to go somewhere mercial lender only. What does that homa? What about other rural markets else or find some other way to do it be- look like in real life? I have folks who where smaller, traditional community cause the restrictions are so high that come to this floor and people who banks have completely abandoned lines they can’t do it anymore. catch me and say: Banks are still mak- of business and products because the Local customers don’t want to deal ing lots of money, and banks are doing cost of regulation makes it so unprofit- with someone else in another State or just fine. Why is Dodd-Frank a prob- able or because the price of regulation in another city. They would like to lem? and risk from examiners and lawyers deal with their local bank, but they Yes, banks are going to find a way to bring so much additional scrutiny that can’t anymore. Oklahoma’s community still do business. What has happened? you can’t afford it? banks had nothing to do with the fi- The biggest banks are loaning to cor- One thing is certain. When banks are nancial collapse in 2008. Yet they have porate customers, and the smallest forced to leave lines of business due to been penalized all the way through this banks that used to do small business government regulation, both customers process. lending and mortgages and took care of and communities suffer. Even in mar- In total, Dodd-Frank required more their community can’t do that any- kets in which there are other partici- than 10 Federal agencies to write more more. So the big is getting bigger and pants in the abandoned product line, than 400 new rules, imposing 27,000 new helping the biggest, and the small is the reality is, with fewer competitors, mandates on financial institutions of not able to help the small. customers pay higher rates and higher every size. Just process that. When you I thought we were supposed to be a fees for a simple service. are Farmer State Bank of Allen and country that helped everyone—cor- This is not a hard issue. For the 2 you have 12 employees, you now have porations or individual farmers and percent of the largest banks that have

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1539 85 percent of the banking assets, I un- It was also recently reported that the tact, and he tells her that if she ever derstand there is systemic risk there. State Department is removing ref- complains, he will ensure she never For the other 98 percent of the banks erences to women’s rights from this finds another job in her chosen profes- in the country that cover 15 percent year’s human rights report. I am trou- sion. total of all of the banking assets in the bled to learn that the Trump adminis- Let us recognize the immigrant country, why are they considered so tration, apparently, doesn’t feel that woman working hard at her new job in systemically important that 27,000 new women’s rights are important enough her new home, motivated to become regulations would need to come down to include in our conversation on part of the American dream. Her male on their 12 employees? human rights. I was equally troubled coworker calls her by disparaging This is a good moment in which to to learn that the State Department re- names and suggests openly to their su- get small towns in rural America work- moved gender equality integration pervisor that she should make less ing again and to allow people to go from the Foreign Affairs Manual. The than he does in the event she ever be- down the street to the bankers they Foreign Affairs Manual is the chief comes pregnant and costs the company know and went to school with rather document for instructing our foreign money. She begins to fear both for her than to have to drive to some big city policy leadership on the ways to inte- job and for herself, but to quit would and talk to the biggest banks in Amer- grate gender considerations into our mean to lose the new life she has so ica and have them try to understand diplomatic efforts. Abandoning that painstakingly built. more about rural America. signals a reversal of decades’ worth of For an untold number of women, We can fix this. I am looking forward work in promoting global gender equal- these stories are painfully familiar. to passing this reform and allowing our ity. The ‘‘Me Too’’ movement has proven banks not just to make money—they The United States should be taking that sexual harassment and discrimi- will find a way to make money; they the lead on fostering an open and hon- nation know no age and no income are businesses—but to actually get est dialogue about women’s issues level. These experiences are felt by all back to serving the customers they internationally, not silencing it. We women of all backgrounds, so it is up want to serve again in a fair way— are better than this. to all of us to combat it. Sexual harass- farmers and ranchers and small busi- Here at home, women have succeeded ment is about power. It is about the nesses. this past year in taking control of the harassers and authority figures feeling I yield the floor. narrative on sexual harassment, and emboldened by being able to behave The PRESIDING OFFICER. The Sen- they have forced deaf ears to listen. We the way they want, wherever they ator from Maryland. are witnessing the rise of a new, more want, with impunity. So let us end the WOMEN’S HISTORY MONTH AND INTERNATIONAL equitable social order that is built on sense of impunity. WOMEN’S DAY the raw guts and courage of women If behavior is about exerting a twist- Mr. CARDIN. Mr. President, I rise to who are speaking out to say, ‘‘Me too.’’ ed kind of power, let us arm women recognize March as Women’s History Hearing so many of my fellow Ameri- with the most powerful tool in our Month and today, March 8, as Inter- cans—mothers, sisters, wives, daugh- legal system—the U.S. Constitution. national Women’s Day. ters, friends—retell and relive some of Let us finally pass the Equal Rights Both at home and abroad, how a their most traumatic experiences has Amendment. The Equal Rights Amend- country treats its women is very much been deeply troubling, but it has also ment is barely longer than a tweet, but a barometer of its success. When been a lesson in bravery, in tenacity, it would finally give women full and women live without limitations on and in women’s unbreakable spirits. equal protection under the Constitu- their ability to work, societies prosper. It is that bravery which we must now tion. Section 1 of the ERA states, quite When women live without restrictions meet with our own as individuals and simply: ‘‘Equality of rights under the on their access to jobs, healthcare, or collectively. If we witness harassment, law shall not be denied or abridged by justice, societies prosper. When women we must be brave enough to intervene. the United States or by any State on succeed, so do their families, their If we are told about abuse, we must be account of sex.’’ communities, and their countries. brave enough to take decisive action. If When Congress proposed the ERA in International Women’s Day reminds we hear about gender discrimination, 1972, it provided that the measure had us that America’s global leadership we must be brave enough to fight it to be ratified by three-fourths of the starts with our progress here in the even when doing so may not be politi- States—38 States—within 7 years. This United States. Unfortunately, Presi- cally expedient or popular. Scores of deadline was later extended to 10 years dent Trump moved the United States women have proved their moral by a joint resolution. Ultimately, only in the wrong direction when he decided strength. It is time for us to dem- 35 out of 38 States had ratified the ERA not just to reinstate the global gag onstrate ours. when the deadline expired in 1982— rule but to expand it. The global gag This Women’s History Month, let us three short. Note that the deadline was rule disqualifies international organi- take a moment to reflect on the thou- not contained in the amendment, zations from receiving U.S. family sands and thousands of ‘‘Me Too’’ sto- itself. The deadline was contained in a planning assistance if they use any ries that go untold and unheard. joint resolution. non-U.S. funds to provide abortion Let us recognize the single working Article V of the Constitution con- services or even counseling. mother making barely more than min- tains no time limits for the ratification What President Trump fails to real- imum wage, living paycheck to pay- of amendments, so the ERA deadline is ize is that access to the family plan- check, and struggling to turn $5 into a arbitrary. To put the matter in con- ning services that these organizations meal for three. When her coworker be- text, the 27th Amendment to the Con- provide is one of the best tools we have gins propositioning her, there are no stitution, which prohibits congres- to prevent abortions. When enforced, cameras and cable talk shows waiting sional pay raises without an inter- the global gag rule has closed the door to expose him. She bears the burden vening election, was ratified in 1992— on some of the most effective, life- alone, often feeling forced to choose be- 203 years after it was first proposed. saving women’s health programs in de- tween enduring disparaging behavior at The Senate should vote to remove the veloping countries. By reinstating and work or providing for her children at ERA deadline immediately, and every expanding the global gag rule, Presi- home. State in our Nation that has not yet dent Trump is denying millions of Let us recognize the college graduate taken up its consideration should do so women and their families access to working in an office, empowered and without further delay. critical healthcare services and is en- excited about the direction of her ca- Nevada became the 36th State to rat- dangering their lives and the lives of reer. Yet, in every meeting, her boss ify the amendment last March, leaving their children. undermines her ideas and, one day, the ERA only two States short of the International Women’s Day is the ap- when they are alone, questions her sug- required three-fourths of the State propriate time to remind my Senate gestively about her method of birth threshold under the Constitution if the colleagues that we must end the global control. Weeks later, his lewd remarks deadline were to be abolished. I think gag rule once and for all. evolve into inappropriate physical con- many—perhaps most—Americans

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1540 CONGRESSIONAL RECORD — SENATE March 8, 2018 would be shocked to learn that our The PRESIDING OFFICER. Without of the Federal Housing Administration. Constitution has no provision expressly objection, it is so ordered. Back then, Federal officials divvied up prohibiting gender discrimination. Ms. CORTEZ MASTO. Mr. President, cities and assigned a color to each The ERA would incorporate a ban on I stand today in support of my col- neighborhood. The color system was gender-based discrimination to be ex- league from Maryland as the 36th State supposed to help mortgage lenders plicitly written into the Constitution. to ratify the Equal Rights Amendment. know where to invest. Green and blue It would change outcomes in unequal I couldn’t agree more. I think it is time neighborhoods were home to desirable pay cases by requiring the Supreme to eradicate discrimination of any borrowers with good credit. Yellow or Court to use the higher standard of kind, so I commend my colleague for red meant risky borrowers lived here ‘‘strict scrutiny’’ when assessing those standing up today and for his com- so don’t invest. The practice became cases—the same standard it uses on ra- ments. known as redlining because the FHA cial and religious discrimination cases. Mr. President, I stand to talk about would draw red lines on city maps to Just as importantly, it would provide an issue that continues in our commu- designate ‘‘bad’’ neighborhoods. For a constitutional basis for claims of nities, and it is the issue of housing the FHA, a bad neighborhood was de- gender-based violence and give the discrimination. fined by the color of one’s skin. Congress the constitutional basis to I recently read an article from the Redlining was banned in the 1960s, pass laws that would give women who Center for Investigative Journalism but as we learn from stories like have been victimized by gender-based about a young woman named Rachelle. Rachelle’s, the practice still goes on violence legal recourse in Federal At the time, Rachelle was in her early under the radar; so much so that in courts. thirties and living in Philadelphia. She 1975, Congress passed the Housing In a 2011 interview, the late Justice was making $60,000 a year as a con- Mortgage Disclosure Act—HMDA—to Antonin Scalia summed up best the tractor at Rutgers University. She had help regulators identify when it was need for an Equal Rights Amendment. savings, good credit, and an under- going on, but even with the new re- He said: graduate degree from Northwestern. quirements, redlining continued. Certainly the Constitution does not re- When she first went to apply for a Then, in the 1990s, the financial in- quire discrimination on the basis of sex. The home loan, she thought she would be dustry began selling something called only issue is whether it prohibits it. It the perfect applicant. On paper, it the subprime loan. Subprime loans doesn’t. seemed that way, but a few weeks have high fees, adjustable interest So I, most sincerely, ask my Senate later, she received an email informing rates, and payment shocks—character- colleagues this question: Are we will- her that her application had been de- istics that made them extremely dan- ing to do what must be done to pro- nied. gerous. People who weren’t approved hibit gender discrimination by includ- In the email her broker told her that for traditional loans were offered ing protection against it in the Con- because she was a contractor and not a subprime loans instead. stitution? Progress has no autopilot full-time employee, her application In 2008, when the market crashed, subprime loan holders saw their inter- feature. We must be its agents. We was too risky for the bank to approve. est rates skyrocket. They suddenly be- must be its champions. When we wake She was at a loss. She had been plan- came unable to afford to stay in their up each day to the loud and growing ning to purchase a home for years and homes. Who do you think was most chorus of women saying ‘‘me too,’’ how thought she had done everything right. likely to hold one of these so-called can we deny them the legal tool as She then asked her partner, Hanako, to subprime mortgages? People living in powerful and important as our own sign on to the application with her. At redlined neighborhoods, people of country’s Constitution? the time, Hanako was working a few color, people who had been denied ac- The people being affected by sys- hours a week at the grocery store mak- cess to traditional loans. temic gender inequality are our con- ing $300 a month. That is about $3,600 a My home State of Nevada was one of stituents. They are our wives, our year. Hanako tried calling the bank to the hardest hit States in the country daughters, and our granddaughters. speak to a loan officer about the appli- by the financial crisis. We had the They are American citizens and human cation, and to Rachelle’s surprise, the highest foreclosure rates for 62 straight beings who deserve basic respect and loan officer picked up. He was atten- months. We had the most number of equality. tive, helpful, and friendly to Hanako. A underwater mortgages, and over 219,000 We are capable of so much more than few weeks later, he approved the cou- families lost their homes. lip service. We are capable of cele- ple’s loan. Anyone driving through parts of Las brating Women’s History Month by This makes no sense, right? Rachelle Vegas and Reno in 2009 could see making history. I call on this Senate was making an income in the upper boarded up houses, for sale signs, and to remove the deadline on passing the five figures, $60,000 a year. She was the empty lots everywhere. On many Equal Rights Amendment and show the one with good credit, and she was the streets, you would see more houses in American people we are the leaders one paying for Hanako’s health insur- foreclosure than not, and while all they sent us here to be, and we will ance. The difference here was that neighborhoods suffered, African-Amer- take action. Let us prove that we will Rachelle was Black. ican, Latino, and Asian-Pacific Is- use our voices when silence becomes This story did not take place in 1930, lander communities were hit the hard- complicity, and we will use our votes when it was legal for housing lenders est. Entire neighborhoods were when our values need defending. to discriminate on the basis of race. It hollowed out. Trillions of dollars were Women deserve to see that their Na- did not take place in 1968, the year lost. tion’s founding document values them banks were formally banned from using I was the attorney general of Nevada and treats them in a fashion equal to race as a factor in deciding home loan at this time. We did everything we men. They are right to expect that gen- applications. It took place less than 2 could to fight for homeowners and help der equality should be an explicit, years ago, in 2016. them stay in their homes. As this was basic principle of our society. Let us Today, 50 years after the passage of going on, I asked myself: How could all work together to get this done. the Fair Housing Act, stories like this happen? The Federal Government Women’s rights are human rights, Rachelle’s are all too common. For any was supposed to regulate these banks. and human rights are not and never person of color who has tried to navi- Where were they? Why didn’t they put should be a partisan issue. gate the housing market, Rachelle’s a stop to these practices before it all I suggest the absence of a quorum. experience is a case of deja vu. came crashing down? The Federal Gov- The PRESIDING OFFICER. The We now know that Rachelle was the ernment was supposed to be the watch- clerk will call the roll. victim of redlining. ‘‘Redlining’’ is a dog, but they were letting banks write The legislative clerk proceeded to term that describes the practice of de- their own rules. call the roll. nying goods or services to people on As attorney general of Nevada, I sued Ms. CORTEZ MASTO. Mr. President, the basis of the color of their skin. the big banks for their fraudulent prac- I ask unanimous consent that the order The term originated in the 1930s, tices and secured over $1.9 billion to for the quorum call be rescinded. when redlining was the official policy help homeowners in my State.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1541 In 2010, Federal lawmakers passed I yield the floor. years old. They are not getting the the Dodd-Frank Wall Street Reform The PRESIDING OFFICER. The Sen- money they need to make ends meet. and Consumer Protection Act to ensure ator from North Carolina. What this bill is trying to do is rec- that what we saw in 2008 would never Mr. TILLIS. Mr. President, I had not ognize that, of course, after the finan- happen again. The bill was not perfect, planned on talking about the bill we cial crisis, there was a regulatory expo- but it did a lot of things right. have before us, S. 2155, but the other sure we needed to address. The problem It strengthened oversight of the big day I was listening to another Member is, we simply went too far or at least banks. It made the big banks undergo speak, and this Member was talking with the passing of time we now know stress tests and develop bankruptcy about how this bill could threaten and we can claw back those regulations on plans, and it also strengthened HMDA, possibly increase the predatory prac- certain banks—particularly commu- the Home Mortgage Disclosure Act. It tices of people who had mobile home nity and regional banks. That is all strengthened reporting requirements loans. this bill is intended to do. to help regulators fight back against As a person who had a mobile home As a matter of fact, this bill allows discriminatory, racist, redlining prac- loan and somebody who lived in a mo- the regulators to go back after those tices. bile home park, I thought I would try banks that are under the $250 billion Banks say they don’t treat borrowers to speak maybe about the practical threshold if they determine that the differently, but the data shows us that easing—what we are trying to accom- practices they are involved in are par- is a different story. Redlining remains plish with this bill. The truth is, I ticularly problematic or may have a a major problem for communities of would go further on regulatory tai- systemic impact on the financial sys- color. loring than we have. We didn’t because tem as a whole. The legislation we are now consid- we wanted bipartisan agreement on What we are trying to do is make ering, S. 2155, would roll back Wall this bill, which we have. sure we start seeing community banks Street reform. It includes a section, As a matter of fact, I thank the pop up in rural areas like the place I section 104, that would repeal many of members on the Banking Committee lived in outside of Nashville, TN, where the reporting requirements we added who joined with me and other members bankers could work with people and after the financial crisis to prevent to make sure we kept the bill tailored give them the resources they need to housing discrimination. Some rural enough so we had bipartisan support. pay their bills. Even as late as just a and low-income census tracks are pre- On mobile homes—we get out here in couple of years ago—we have some dominantly served by small lenders. the Senate, and we talk about facts folks who are speaking against the bill If this specific loan data is removed and figures. I can talk about the fact who said it was important for us to ad- from them, government officials, re- that half of my community banks have vance these sorts of changes. As a mat- searchers, and the public will not have ceased to exist in North Carolina since ter of fact, one Member said: ‘‘It is im- information on the quality of loans the crisis. I can talk about a number of portant we advance this conversation made, nor will they know about the people I speak with who can’t get to ensure that prudential regulations credit scores of the borrowers or even a loans, but what I thought I would talk for regional banks are crafted appro- way to easily track the loans after about is my own personal experience as priately.’’ That is what this bill does. Another Member or maybe the same they are sold to investors. a 16-year-old, 17-year-old kid living in a Member said: ‘‘We all agree that re- When I was attorney general, I need- trailer park working with my father. gional banks are not systemically im- ed the information on the quality of He would do maintenance work. If a portant.’’ Regional banks are the big- the loans in the State to protect con- house caught on fire or there was some ger banks. They would be like BB&T or sumers. Where were the teaser rates sort of insurance damage, he would work with the insurance companies to Fifth Third Bank. and what was the reset? Who were the They are not systemically important. actually do repair work, and I was his homeowners who might not be ready to Well, then, I guess we can all agree handyman when we would do these pay $20,000 more on their monthly that the community banks and smaller projects. We did not have a whole lot of mortgages? These were the questions I banks aren’t. That is what this bill is money. My father didn’t have a lot of had with no data. With everything we about, some of the midsized regional cash on hand, so the way we did it is, saw 10 years ago, I cannot now believe banks and community banks. We said when you had this insurance job, you we are considering restricting access to we need to tailor it, and that is what bid on the insurance job. You knew this kind of data—the kind of data that this bipartisan bill does. is important to prevent housing dis- how much money you would make at Another Member said: ‘‘I continue to crimination. the end. Then you go to a bank and get believe we will not be successful in pro- I have seen what happens when we what is called a 90-day note. Most of viding regulatory relief to institutions don’t have strong enough protections these projects were about 60- to 90-day of any size if we don’t have broad, bi- against housing discrimination. This is projects, and you would go to a banker partisan consensus.’’ That is what this why I have submitted an amendment whom you had built a relationship bill has. to strike section 104 to preserve access with, and you would ask them to trust We always talk about the polar envi- to data we need. With better informa- you to get this project done. You would ronment here and how we can get noth- tion and protections, we could have show them the project you were doing, ing done. This is a bill that has had prevented a crisis in which 12 million and he would underwrite a loan that members of the Committee on Bank- people lost their jobs, in which the you had to pay back in 90 days. That is ing, on which I serve, join together to banks took the homes of more than 7 why they called it a 90-day note. make sure that all we advanced out of million people. Today, in the postcrisis world, that the committee was a bipartisan con- Let’s not take away access to this in- virtually never happens. Today, we sensus for regulatory relief that allows formation. Let’s not make the same don’t have community banks and per- cash to flow to people who need it— mistakes we made 10 years ago. I urge sonal banking relationships that people community banks, regional banks that my colleagues to join me. Vote for fair- can rely on to get access to capital. have a more intimate relationship with ness, vote for equality, vote for inclu- Even worse, with all the community people who need access to capital. That sion. Vote for everyone who got burned banks and smaller banks consolidating, is what this bill does. For the life of by the big banks. Vote for folks like ceasing to exist, there are entire areas me, I can’t understand why we can’t all Rachelle who just needed a break, who of North Carolina—a lot of people agree. just needed a fair mortgage loan so think North Carolina is an urban You have these discussions here they could buy their first home. Sup- State. The fact is, about half our popu- where it sounds like we are doing some port my amendment to prevent loan lation, about 5 million people, live in big-bank relief—not at all. I have a and housing discrimination, to protect rural areas. They have been hardest hit couple of large banking institutions in the access to data and to protect the by the consolidation of banks and the North Carolina, and they are going to progress we made under Wall Street re- ceasing to exist of these sort of lending have to continue to submit 60,000-page, form. institutions out in communities like 100,000-page stress tests and CCAR re- Thank you. the community I lived in when I was 17 ports to make sure they don’t create a

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1542 CONGRESSIONAL RECORD — SENATE March 8, 2018 systemic threat. This bill doesn’t touch the little guy. No matter whether she petence—attacked by Equifax. In my that. punches a time clock or works con- State, it was about 5 million people. What this bill touches is a part of the struction, we want to help middle-in- Around the country, it was about 143 ecosystem that is suffering. What this come people. But you know what—by million. In fact, most of the people in bill does is reduce the regulatory bur- the time the lobbyists swoop in, by the the Gallery are adults, so it is more den so that guy who existed back in time they are here, and they start than half the adult population that was the midseventies who would give my talking to their friends and start doing wronged by Equifax. Half the country dad a 90-day note can now do it and not what they do, then all of a sudden, is vulnerable to identity theft. have to say no because they simply these bills help the big guy. They help Americans are furious with Equifax, can’t afford to do it either because it Wall Street. It is no surprise; it has as they should be, but this amendment affects their portfolio or because they happened here before. that apparently is in the substitute bill are spending so much money on regu- I particularly think we would learn for reasons I can’t fathom includes pro- latory relief that they have to go after about it when it comes to what hap- visions designed to help Equifax. It is the bigger loans. It is the people at my pened 10 years ago. There are some not just that this body doesn’t punish level at that time back in the seventies pretty smart people in the Senate, but Equifax and that these executives have who suffer. they have some kind of illness that I no contrition—of course nobody went This is a bipartisan bill, it is a re- don’t entirely understand called collec- to jail. sponsible bill, and it is a bill that is tive amnesia. They forget. They forget The people we send to jail in this going to provide much needed relief. what happened 10 years ago. country—we almost never send people I thank the Members on both sides of Where I live, Cleveland, OH, and to jail for financial fraud. They dress the aisle who recognize that this is a where the Presiding Officer grew up in well, they are sophisticated, they be- prudent bill, that it is measured. I greater Cleveland, in my neighborhood, long to the right country clubs, and thank Chairman CRAPO for all the ZIP Code 44105, in early 2007, in the they would never go to jail. Let me great work he has done to live up to his first half of that year, more people lost back off on that for a moment and talk commitment to the Members on the their homes through foreclosure than again about Equifax. other side of the aisle to keep this tai- any other ZIP Code in the United Equifax and other credit reporting lored and to do exactly what we said States of America. The neighborhood agencies apparently have been upset we were going to do. I look forward to that I live in is not a gated commu- about a proposal to give men and women in the military credit moni- its passage. nity. I live in an area of about 200 rel- I yield the floor. atively new homes. When I drive about toring. Think of that. Equifax execu- tives didn’t like that there was a pro- The PRESIDING OFFICER. The Sen- 500 yards in any direction, I see the posal to give the people serving this ator from Ohio. blight that came because of what Wall Mr. BROWN. Mr. President, well, not country credit monitoring. Street and, frankly, this Congress and I understand what Santander did; exactly. Yesterday I spoke about the the regulators, the Bush regulators—I they repossessed autos of men and big banks that have violated our bank- can mention names; it is all public women from Wright-Patterson Air ing laws time and again, banks like record—did to our economy. And 10 Force Base in Dayton and from other Wells Fargo and Citigroup. I talked years later, we have kind of forgotten places who were overseas serving. They about foreign banks like Santander and about all that. repossessed their cars, and we rewarded Deutsche Bank—the President’s per- Well, the people who lost their homes them, so I guess Equifax thought, well, sonal German bank, I might add. haven’t forgotten about it. The people there is a good trend here, a good Santander, a Spanish bank, has fore- who lost their jobs haven’t forgotten precedent there. We don’t want to give closed on the cars of American service about it. The people who lost their re- men and women in the military credit men and women when they are over- tirement savings haven’t forgotten monitoring. seas serving our country, and we are about it. It is just a bunch of Members So we have an amendment to fix rewarding that Spanish bank. We are of Congress, a bunch of Republican that. A small gesture to the people who rewarding a Swiss bank that has bro- members of the Banking Committee, a serve our country, though, seemed too ken international law in support of bunch of Members on that side of the much for the Republicans and too Iran. We are rewarding these foreign aisle—almost all of whom, I believe, much for Equifax. In exchange for this banks. are supporting this bill—they seem to token benefit, they demanded that con- I liked this bill at the beginning. I have forgotten what happened to the sumers and servicemembers give up have been working on these issues with economy 10 years ago. their right to take Equifax to court. So Chairman CRAPO, whom I respect—I After starting with a relatively sim- Equifax is willing to do a little bit for really do—for some years, and we ple and benign, let’s help the commu- people, just a little bit, but damn it, worked on coming up with a bill that nity banks and the credit unions— you can’t sue us then. That was the would help community banks and the which I want to do, too, and have a vot- deal—you can’t sue us. We will give midsized regional banks, three of which ing record to prove it—and help some you a little bit of credit monitoring, are located in the Presiding Officer’s of the smaller regionals, such as Hun- but in return, you can’t sue us for any- boyhood State and my State of Ohio— tington and Fifth Third and Key Corp thing. I am not a lawyer, but that is Fifth Third, KeyCorp, and Huntington. in my State, it just sort of got out of called a right to action. So the next We wanted to do those things. hand. time the company’s recklessness ex- You know, in this place, when we Well, now they are coming back and poses sensitive financial data, sorry, work on something to help the small saying: Well, we will make a couple of you can’t sue us. Sorry about that; guy, the big guy thinks: Well, don’t changes. Let’s talk about these couple that is the way it goes. leave me out. I want to be part of this. of changes that Houdini would be proud In the end, Equifax—shocking—got I want to get my things too. of, sort of some sleight-of-hand kinds exactly what it wanted. Equifax let So we start helping community of changes. In fact, these changes have your data loose and ruined your credit banks, we start helping the little guy, made the bill worse, and I will explain. score, but you won’t be able to sue and all of a sudden, Wall Street gets its Last September, we learned that them. Sorry about that. hand out, just like on the tax bill. I Equifax had allowed hackers to exploit It gets worse. Equifax—a company guess I believed my colleagues on the a known security flaw and make off that can’t even safely store consumers’ tax bill when they said it was a middle- with names, birth dates, Social Secu- data—and that is their job; that is class tax cut bill. Well, it kind of didn’t rity numbers, and all matter of private what they are hired to do, even though end up that way. By the end, 81 percent information of 143 millions Americans. we don’t individually choose them. The of the tax benefits went to the richest There are probably 50 people in the company spent nearly as much on exec- 1 percent. Gallery. If the national averages hold utive salaries as it did on cyber secu- That is what we do. We start here. out, 25 of them were wronged by rity. So this company’s job is to pro- We go back home, and we talk about Equifax. They were fraudulently or in- tect private data, but they didn’t real- helping the middle class and helping competently—perhaps through incom- ly invest that much in cyber security

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1543 because, for whatever reason, they paid Backers of the substitute will claim want Congress to rush something their executives about the same it has addressed complaints that this through that might expose their Social amount of money. effort will undermine enforcement of Security numbers without really un- Now Equifax wants in on the credit- civil rights laws, but it hasn’t. Backers derstanding it through congressional scoring business. Along with two other will point to a provision which says hearings and examination. major credit reporting agencies, it has that banks that flunk the Community This would all be bad enough, but it created a product to compete with Fair Reinvestment Act exam and get a rat- is not just Equifax that gets goodies in Isaac’s FICO score. ing of substantial noncompliance are this bill. This bill is a gift to foreign The Federal Housing Finance Agency ineligible for the reduced reporting of megabanks. Yesterday we saw a new has a process in place to try to broaden mortgage data. That sounds good, but provision on foreign banks included in the factors it looks at in determining in all of 2017, out of the thousands of the substitute to clarify the legisla- creditworthiness, but, as Director Mel Community Reinvestment Act exams, tion, but it doesn’t fix the issue. The Watt testified in the Banking Com- only two banks out of thousands substitute includes a figleaf to try to mittee, it is complicated and it is time- flunked. When we have reason to be- convince the public that this bill consuming. Understandably, FHFA lieve banks all across the country are doesn’t do what it actually does do. wants to get it right, and so do the discriminating in their lending, even if This provision provides some vague lenders that sell loans to Fannie and it is unintentional—and sometimes it and ambiguous language that puts the Freddie. But instead of allowing FHFA is—looking at data from two banks out question to the Fed. In this bill, we to take the time it needs to get it of thousands isn’t going to tell us a say: You can regulate the foreign right, this bill ignores that, and it sets whole lot. banks or you don’t have to regulate the up its own process. We have not taken The substitute would maintain cur- foreign banks; it is up to the new Fed- any testimony on this legislation from rent laws for banks that are given a eral regulators. It is your choice. The market participants or from the gov- ‘‘needs to improve’’ rating on their legislation doesn’t require the Fed to ernment agency. I have my hunch, CRA exam over two consecutive exam keep strong rules in place that are al- though, as to who is pushing for it. cycles. Let’s say a bank is engaged in ready in place. It doesn’t stop the for- Guess who is one of the biggest bene- discriminatory lending. The examiner eign banks from suing the Fed if it ficiaries of this change. The pages gives it a ‘‘needs to improve’’ rating. doesn’t obey the request. would know the answer to that, if they This amendment says: No harm, no We are expected to trust Randal are listening. Equifax, of course. foul; the first one is free. Really? A few Quarles to be tough on foreign banks— I know my colleagues were well-in- years later, when the next exam rolls most of you don’t know Randal tentioned. It would be great if we had around, if the bank is still discrimi- Quarles. I have had conversations with additional ways of determining wheth- nating, only then will it have to sub- him. He is a smart man. He is well edu- er someone is creditworthy and if we mit to the amount of data required cated. He is a nice guy—but that is not could give more Americans the oppor- today. So this amendment says it is OK a bet I want to make. That is not a bet tunity to become homeowners. But de- for a bank to engage in legally sanc- Congress should make. termining creditworthiness and bal- tioned discrimination for years before Just this week, Governor Quarles ancing access to credit with the need it faces any consequences. Why would spoke at an international banking con- to make sure we don’t end up with mil- we do that in this bill? ference, and he promised—it was an lions of foreclosures is complicated. In sharp contrast to the slow-motion international banking conference. That That is why we have FHFA, and that is response to discrimination, when it is would probably not be with Wells why we have a process in place. the bank that wants the data from the Fargo, probably not JPMorgan Chase, We know there are problems with the Federal Government, the sponsors of probably not Bank of America; it current system, and more data would this bill can’t move fast enough. It is would probably be with Santander, improve our efforts to combat dis- like everything around here—when UBS, Swiss Bank, or Barclays—the crimination in housing. The Center for Wall Street says ‘‘jump,’’ most of this British bank—or the President’s per- Investigative Reporting just completed Senate jumps, and frankly, straight sonal bank, the German bank, Deut- a valuable study of tens of millions of down the hall in the House of Rep- sche Bank. Those are who attended. He mortgage records and found out that resentatives, they jump faster and said, if we really want to fix the for- across the country, people of color are higher. eign bank issue—he said he plans to de- far more likely to be turned down for a There was a bill introduced just this regulate those foreign banks. loan, even when you take into account Monday, referred to the Finance Com- I know the supporters of this bill factors like income and the size of the mittee, that would allow credit card think they can sort of obfuscate—I loan. I will repeat that. Holding all companies to tap the Social Security don’t think they are lying. I think they things equal except for race, people of Administration database to verify are just obfuscating and not really color are far more likely to be turned identities. There hasn’t been a hearing being straightforward about what this down for a loan. We know that. on it, and it hasn’t gotten attention, bill does for foreign banks, and I know The trade associations for lenders ar- but guess what—it is in the substitute they did this for foreign banks because gued that the study was flawed because bill. So the banking majority can move I asked Treasury Secretary Mnuchin— more data—data like credit scores and very fast when it comes to helping the Senator CORKER was in the room with debt-to-income ratios—was needed to banks; they can’t move so fast when it the Banking Committee—and he said: prove discrimination. The good news is comes to prohibiting discrimination Yes, we plan to deregulate the foreign that Dodd-Frank did that. It required against people of color. I suppose I un- banks. this very kind of data to be collected, derstand why, but that is pretty out- We know that. We know that from and beginning in January, banks and rageous. The demand on SSA would ex- other former regulators: Paul Volcker, credit unions began reporting it. plode. Will the system be able to han- former head of the Federal Reserve ap- Problem solved, right? Well, once the dle it? Will the public interfere? Will pointed by both President Carter and more detailed data set is available and this public interface be one more way President Reagan; we know that from large enough, watchdogs can then un- that hackers could gain access to the people like Sarah Bloom Raskin, who dertake better analysis, target the bad Social Security database? I don’t know was a member of the Board of Gov- actors, and allow the good lenders—and because there has been no time for the ernors at the Federal Reserve; we know most of them are—to continue with Finance Committee to look at this bill. that from professors and other regu- their business without a regulator Protecting people’s Social Security lators. I know Sheila Bair, a Repub- knocking on their door. But who are numbers is the last place—the last lican nominee appointed by President we kidding? This bill wants to do away place—where we should be rushing Bush to run the FDIC, is concerned with that too. I thought we had solved things to please the big banks. about this bill. We know that. the problem. The substitute would re- Whether it is a State as conservative So if we want to fix the foreign bank peal the reporting required by Dodd- as Tennessee or as liberal as California, issue, let’s just adopt my amendment. Frank for 85 percent of all banks. I am guessing most Americans don’t Let’s fix it. It is simple: No favors for

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1544 CONGRESSIONAL RECORD — SENATE March 8, 2018 the biggest global banks here in the We could be doing that but instead we of the Week.’’ It is one of the most ful- United States. Don’t give the regu- are giving more to Wall Street. filling things I do all week, to get to lators the option because we know This substitute doesn’t make this bill talk about people who make my State whom the regulators for the banks are. better. By papering over its funda- very, very special. We know most of the regulators for the mental problems, by treating service- I know many of you—people in the banks used to work on Wall Street. members as second-class citizens— Gallery—have seen Alaska on TV or You go to the White House, and the think of Santander, think of the have read about it in the newspapers, White House looks like a retreat for amendment Senator REED from Rhode but there is no substitute for being Wall Street executives. Island is working on—we are opening there. We want you all to come. It We want to write strong laws, clear up the Social Security system to pos- would be the trip of a lifetime, particu- laws. We don’t need to place blind trust sible threats. It represents a step back- larly now. in the people who have failed us be- ward. What is going on in Alaska right fore—Quarles, Mick Mulvaney, Otting, I urge my colleagues to reject the now, one of the highlights of the entire and Mnuchin. We are expecting these substitute and the underlying bill. year, is the Iditarod—the ‘‘last great people who have been strong in their I yield the floor. race’’ in the world—which is in full public announcements to be right in The PRESIDING OFFICER (Mrs. throttle. When you visit, Alaska will their public actions? We are entrusting FISCHER). The Senator from Tennessee. change your life—the wilderness, the these people who have profited—I could Mr. CORKER. Madam President, I en- wildlife, the quiet, the sense of unbri- name the names. We are entrusting joyed listening to the comments of my dled freedom, the liberty, and the maj- these people who now have public serv- friend from Ohio. I think you guys are esty. It is all there. It is all there, so ice jobs and who have profited from going to like the amendment I am get- come on, come on and visit. Wall Street malfeasance to protect our ting ready to offer. Also, when you visit, you will realize economy and our country from Wall Today I rise to offer an amendment that Alaska is home to some of the Street malfeasance. to S. 2155—the Economic Growth, Reg- most courageous, hard-working, and I take the side of Paul Volcker, Shei- ulatory Relief, and Consumer Protec- tenacious people in the world, many of la Bair, Tom Hoenig, Barney Frank, tion Act—of which I am a cosponsor. whom have overcome tremendous odds Sarah Bloom Raskin, Phil Angelides, My amendment is a simple correc- and are determined to inspire others to Antonio Weiss, and Michael Barr. They tion that would clarify the intent of live a full and healthy life. are all people who have counseled us— this original bill as it relates to custo- Madam President, I would like to all good public officials, all former reg- dial banks. take you, take everybody listening, to ulators. Not quite half, but a number of As originally introduced, section 402 Nome, AK, and tell you about Carol them are Republicans, and some are was intended to provide better tailored Seppilu, someone who I believe per- Democrats. They are all people who capital requirements for true custodial sonifies determination and persever- counseled us to vote no on this bill and banks. However, there have been con- ance and who is an inspiration to us all whose concerns have not been ad- cerns raised that the current definition and is this week’s Alaskan of the Week. dressed by this substitute. of this section, following revisions dur- Carol lives in Nome—a rugged, In addition, the substitute raises $675 ing the committee consideration, could unique, and beautiful town in Alaska’s million to pay for the privilege of de- open this provision to a wider group of northwest, about 500 miles from An- regulating the banks, but all it could financial institutions. chorage. You might have heard of manage on lead poisoning in housing I know that was not the intent of my Nome. The reality show ‘‘Gold Rush was a report from HUD. colleagues, and this technical correc- Alaska’’ was filmed there, and it is also Where are our priorities? The Con- tion amendment makes clear that sec- the finish for the Iditarod. gressional Budget Office said this bill tion 402 applies only when the primary Pretty soon, if you are watching on makes it more likely they will need a focus of the banking organization is TV—our best guess is early next bailout, more likely to lead to a bail- custodial activities. week—the mushers and the dozens of out for the big banks. So $675 million of Section 402 is not intended to provide dogs—that, by the way, love the race. taxpayer money is squandered instead relief to an organization engaged in They love the race—will begin to cross of doing infrastructure, instead of deal- consumer banking, investment bank- the finish line. People from all over our ing with lead. That is part of the issue ing, or other businesses, and that also State, but really people from all over we dealt with in our committee. That happens to have some custodial busi- the world, will be there to greet them is why I supported Secretary Carson ness or a banking subsidiary that en- as they finish this incredible race, to for his confirmation, because I thought gages in custodial activities. greet them and congratulate them. We he was going to do something about In conclusion, section 402 was in- call it the ‘‘last great race,’’ and it fin- lead. Shame on me for believing that, tended as a very narrowly tailored pro- ishes at Nome. when I have seen nothing so far. vision, focused on true custodial banks. There is no place like Nome, we like Instead of those $675 million going to This technical correction amendment to say in Alaska. If you live in Nome, Wall Street, wouldn’t it be great if we would clarify the scope of 402. you might have seen Carol running in could direct those hundreds of millions I am requesting a vote and urge my winter, spring, summer, and fall. Carol of dollars to prevent children from de- colleagues to support adoption of this runs through the streets and into the veloping developmental disabilities amendment. mountains surrounding Nome. It is one brought on by lead? I yield the floor. of the ways that she has found purpose Remember, I talked about my ZIP I suggest the absence of a quorum. in her life, which in turn she has used Code, 44105. Look at those houses. The PRESIDING OFFICER. The to help others, to inspire others. Drive through Cleveland. Drive clerk will call the roll. Like a lot of us, Carol had big dreams through Memphis. Drive through The bill clerk proceeded to call the when she was growing up. She was in- Omaha. Drive through all kinds of cit- roll. terested in science and space. She was ies in this country. You will see houses Mr. SULLIVAN. Madam President, I actually interested in being an astro- that were built in 1950 or before, and 80 ask unanimous consent that the order physicist. Then, as sometimes happens or 90 percent of them have toxic levels for the quorum call be rescinded. to young kids, her life took a bit of a of lead. We have sentenced millions of The PRESIDING OFFICER. Without turn. She got in with the wrong crowd American children to live in those objection, it is so ordered. and started drinking and using drugs, homes. TRIBUTE TO CAROL SEPPILU and her life lost meaning. This is called the Banking, Housing, Mr. SULLIVAN. Madam President, as This is a difficult subject to talk and Urban Affairs Committee. We have many of my colleagues know, one of about on the Senate floor, but we done nothing in this committee for the my favorite parts of the week is com- must. We must. Carol wants us to. last 5 years—not a damn thing—about ing down to the Senate floor to recog- Alaska has the second highest suicide getting that lead out of those homes nize somebody special in my State, rate in the country, and it has the and stopping the poisoning of children. somebody we refer to as our ‘‘Alaskan highest teen suicide rate in the entire

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1545 Nation. The suicide rate among Alaska body—everybody—was so supportive, Governor Thone had given her along Native teens is also very, very high— so she doesn’t run with a mask any- the way. tragically high, horribly high. When it more. The legacy of service and the mark comes to suicide, silence is deadly. It is not only runners who are sup- Governor Thone left on Nebraska will Carol knows all about this. When she portive of Carol; she has gotten people never be forgotten. The motto that he was 16, she tried to end her life by in her hometown, the town of Nome, to held so dear, ‘‘accentuate the posi- shooting herself. After the gun went start running themselves. Across the tive,’’ was a good one. It reminds us to off, she remembers thinking: Dear God, State, people approach her wherever find the good in every person and every save me. I don’t want to die anymore. she goes, and they tell her they have moment. His positivity made Nebraska Then she described how, during this heard about her, they have heard about a better place both while he served and awful incident, her ancestors came to her life, and if she has made it through afterward as he worked in his commu- her, her elders, telling her that she was her challenge, they can too. In other nity. Governor Thone served the State going to be OK and that she had a rea- words, she is an inspiration. She has of Nebraska with dignity. He was an son to live. She did live. Badly scarred, become an inspiration throughout exemplary public servant and a dear after having multiple operations on her Alaska to so many people. She said: friend to my father and to me. face, recovery has not been easy for I think I’m helping other people overcome I join all Nebraskans in praying for Carol, but she has made it through. difficulties. They tell me I’m inspiring them his wife, Ruth, and the entire Thone She has toughed it out. to keep going. So that’s why I believe I’m family. What she did was remarkable and in- here now—to help others. I thank the Presiding Officer. credible. She began to speak about sui- That is Carol’s quote. I yield the floor. cide at schools. She was a member of So, Carol, for your inspiration to so I suggest the absence of a quorum. the State’s Suicide Prevention Council. many in our great State, for all you The PRESIDING OFFICER. The Eventually, she got a job at an elders’ have done and all you continue to do, clerk will call the roll. home, where she is currently the cul- we are proud of you and thank you for The legislative clerk proceeded to tural activities specialist. She orga- being our Alaskan of the Week this call the roll. nizes Alaska Native dances. She cooks week, as the Iditarod finishes up in Mr. MCCONNELL. Mr. President, I traditional Alaska Native food for her your hometown of Nome, AK. ask unanimous consent that the order elders. Moose and muskox soup is their Madam President, I yield the floor. for the quorum call be rescinded. favorite. I think Senator MURKOWSKI is I suggest the absence of a quorum. The PRESIDING OFFICER (Mr. going to let us enjoy a little muskox The PRESIDING OFFICER. The PERDUE). Without objection, it is so or- stew over lunch today, so Carol will be clerk will call the roll. dered. pleased about that. The bill clerk proceeded to call the AMENDMENT NO. 2151, AS MODIFIED But as the years went by, she again roll. Mr. MCCONNELL. Mr. President, I experienced depression, which is not Mrs. FISCHER. Mr. President, I ask send a modification to amendment No. uncommon. She didn’t feel like getting unanimous consent that the order for 2151 to the desk. out of bed. She was unhealthy. But the quorum call be rescinded. The PRESIDING OFFICER. The then again, in 2014, more inspiration— The PRESIDING OFFICER (Mr. amendment is so modified. again, incredible. A high school friend SASSE). Without objection, it is so or- The amendment, as modified, is as who was a runner urged Carol to try it. dered. follows: You are not feeling healthy? You are REMEMBERING CHARLEY THONE Strike all after the enacting clause and in- feeling sad? Go out, try to get a run in. Mrs. FISCHER. Mr. President, I rise sert the following: At first, when she did it, she could only to pay tribute to a great public servant SECTION 1. SHORT TITLE; TABLE OF CONTENTS. go a few blocks. Eventually the blocks who passed away last night, former (a) SHORT TITLE.—This Act may be cited as turned into miles, which is even more Member of Congress and Nebraska Gov- the ‘‘Economic Growth, Regulatory Relief, challenging for her because of some of ernor Charley Thone. and Consumer Protection Act’’. her injuries. Nonetheless, she per- I think the Omaha World-Herald (b) TABLE OF CONTENTS.—The table of con- severed. summed up his outlook well: tents for this Act is as follows: We are seeing a theme in her life. She Official biographies list Thone’s first name Sec. 1. Short title; table of contents. began to get healthy and to feel good as Charles. But Nebraskans knew him better Sec. 2. Definitions. about herself again. Again, she found as Charley, the unpretentious farm boy who TITLE I—IMPROVING CONSUMER ACCESS her reason to live. Guess what. She has adopted ‘‘Accentuate the Positive’’ as his TO MORTGAGE CREDIT turned into an amazing athlete. She personal theme song. Sec. 101. Minimum standards for residential began to enter races in 2015 when she Governor Thone was born near mortgage loans. ran the local 8-mile Dexter Challenge. Hartington, NE. He served our country Sec. 102. Safeguarding access to habitat for in the U.S. Army Infantry during humanity homes. ‘‘I thought, if I do eight miles, I could Sec. 103. Exemption from appraisals of real do a half marathon,’’ she said. And World War II. While serving in the property located in rural areas. then she did. House of Representatives, then-Con- Sec. 104. Home Mortgage Disclosure Act ad- Carol didn’t stop there. Now she is gressman Thone fought on behalf of justment and study. running ultramarathons across the farmers and ranchers as a member of Sec. 105. Credit union residential loans. country—50 miles in Iowa, multiple the House Agriculture Committee. Sec. 106. Eliminating barriers to jobs for ultramarathons in Utah, a 50K in When tragedy struck with the assas- loan originators. Washington State. Early last month, sination of President John F. Kennedy, Sec. 107. Protecting access to manufactured homes. she was running a 50K in Texas when, he served on the Warren Commission to Sec. 108. Escrow requirements relating to about 5 miles in, she broke her ankle, investigate the death of our President. certain consumer credit trans- but that didn’t stop her. She finished As Governor of Nebraska, his love of actions. even with a broken ankle and is recov- our State was always evident during Sec. 109. No wait for lower mortgage rates. ering. We are seeing a woman, a young his time in office. He guided Nebraska TITLE II—REGULATORY RELIEF AND lady of perseverance. Her ultimate goal during a tough farm economy in the PROTECTING CONSUMER ACCESS TO is to do an ultramarathon in every 1970s, but he always looked ahead and CREDIT State in America. supported others. Governor Thone led Sec. 201. Capital simplification for quali- Because of Carol’s scars, she wears a by example, and he empowered and en- fying community banks. mask. In August she decided that it couraged others. He was a mentor to a Sec. 202. Limited exception for reciprocal was too cumbersome to wear the mask Nebraska woman named Kay Orr, who deposits. while running, so during a race in Alas- became his chief of staff and then went Sec. 203. Community bank relief. Sec. 204. Removing naming restrictions. ka—the very challenging 50-mile Res- on to be the first woman Governor of Sec. 205. Short form call reports. urrection Pass ultramarathon—she Nebraska. Governor Orr, herself, has Sec. 206. Option for Federal savings associa- took it off, and it was liberating for said she would not have been Governor tions to operate as covered sav- her. Here is the beautiful thing: Every- had it not been for the opportunities ings associations.

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Sec. 207. Small bank holding company pol- cy’’, ‘‘company’’, ‘‘depository institution’’, ‘‘(iv) CONSIDERATION AND DOCUMENTATION icy statement. and ‘‘depository institution holding com- REQUIREMENTS.—The consideration and docu- Sec. 208. Application of the Expedited Funds pany’’ have the meanings given those terms mentation requirements described in clause Availability Act. in section 3 of the Federal Deposit Insurance (ii)(I)(ee) shall— Sec. 209. Small public housing agencies. Act (12 U.S.C. 1813). ‘‘(I) not be construed to require compliance Sec. 210. Examination cycle. (2) BANK HOLDING COMPANY.—The term with, or documentation in accordance with, Sec. 211. International insurance capital ‘‘bank holding company’’ has the meaning appendix Q to part 1026 of title 12, Code of standards accountability. given the term in section 2 of the Bank Hold- Federal Regulations, or any successor regu- Sec. 212. Budget transparency for the NCUA. ing Company Act of 1956 (12 U.S.C. 1841). lation; and Sec. 213. Making online banking initiation TITLE I—IMPROVING CONSUMER ACCESS ‘‘(II) be construed to permit multiple legal and easy. TO MORTGAGE CREDIT methods of documentation.’’. Sec. 214. Promoting construction and devel- SEC. 101. MINIMUM STANDARDS FOR RESIDEN- SEC. 102. SAFEGUARDING ACCESS TO HABITAT opment on Main Street. TIAL MORTGAGE LOANS. FOR HUMANITY HOMES. Sec. 215. Reducing identity fraud. Section 129C(b)(2) of the Truth in Lending Section 129E(i)(2) of the Truth in Lending Sec. 216. Treasury report on risks of cyber Act (15 U.S.C. 1639c(b)(2)) is amended by add- Act (15 U.S.C. 1639e(i)(2)) is amended— threats. ing at the end the following: (1) by redesignating subparagraphs (A) and Sec. 217. Discretionary surplus funds. ‘‘(F) SAFE HARBOR.— (B) as clauses (i) and (ii), respectively, and TITLE III—PROTECTIONS FOR VET- ‘‘(i) DEFINITIONS.—In this subparagraph— adjusting the margins accordingly; ERANS, CONSUMERS, AND HOME- ‘‘(I) the term ‘covered institution’ means (2) in the matter preceding clause (i), as so OWNERS an insured depository institution or an in- redesignated, by striking ‘‘For purposes of’’ sured credit union that, together with its af- Sec. 301. Protecting consumers’ credit. and inserting the following: filiates, has less than $10,000,000,000 in total Sec. 302. Protecting veterans’ credit. ‘‘(A) IN GENERAL.—For purposes of’’; and consolidated assets; (3) by adding at the end the following: Sec. 303. Immunity from suit for disclosure ‘‘(II) the term ‘insured credit union’ has of financial exploitation of sen- ‘‘(B) RULE OF CONSTRUCTION RELATED TO AP- the meaning given the term in section 101 of PRAISAL DONATIONS.—If a fee appraiser volun- ior citizens. the Federal Credit Union Act (12 U.S.C. 1752); Sec. 304. Restoration of the Protecting Ten- tarily donates appraisal services to an orga- ‘‘(III) the term ‘insured depository institu- nization eligible to receive tax-deductible ants at Foreclosure Act of 2009. tion’ has the meaning given the term in sec- Sec. 305. Remediating lead and asbestos haz- charitable contributions, such voluntary do- tion 3 of the Federal Deposit Insurance Act nation shall be considered customary and ards. (12 U.S.C. 1813); Sec. 306. Family self-sufficiency program. reasonable for the purposes of paragraph ‘‘(IV) the term ‘interest-only’ means that, (1).’’. Sec. 307. Property Assessed Clean Energy fi- under the terms of the legal obligation, one nancing. or more of the periodic payments may be ap- SEC. 103. EXEMPTION FROM APPRAISALS OF Sec. 308. GAO report on consumer reporting REAL PROPERTY LOCATED IN plied solely to accrued interest and not to RURAL AREAS. agencies. loan principal; and Sec. 309. Protecting veterans from predatory Title XI of the Financial Institutions Re- ‘‘(V) the term ‘negative amortization’ form, Recovery, and Enforcement Act of 1989 lending. means payment of periodic payments that (12 U.S.C. 3331 et seq.) is amended by adding Sec. 310. Credit score competition. will result in an increase in the principal at the end the following: Sec. 311. GAO report on Puerto Rico fore- balance under the terms of the legal obliga- closures. tion. ‘‘SEC. 1127. EXEMPTION FROM APPRAISALS OF REAL ESTATE LOCATED IN RURAL Sec. 312. Report on children’s lead-based ‘‘(ii) SAFE HARBOR.—In this section— AREAS. paint hazard prevention and ‘‘(I) the term ‘qualified mortgage’ includes ‘‘(a) DEFINITIONS.—In this section— abatement. any residential mortgage loan— ‘‘(1) the term ‘mortgage originator’ has the Sec. 313. Foreclosure relief and extension for ‘‘(aa) that is originated and retained in servicemembers. portfolio by a covered institution; meaning given the term in section 103 of the Truth in Lending Act (15 U.S.C. 1602); and TITLE IV—TAILORING REGULATIONS ‘‘(bb) that is in compliance with the limi- ‘‘(2) the term ‘transaction value’ means the FOR CERTAIN BANK HOLDING COMPA- tations with respect to prepayment penalties amount of a loan or extension of credit, in- NIES described in subsections (c)(1) and (c)(3); ‘‘(cc) that is in compliance with the re- cluding a loan or extension of credit that is Sec. 401. Enhanced supervision and pruden- part of a pool of loans or extensions of cred- tial standards for certain bank quirements of clause (vii) of subparagraph (A); it. holding companies. ‘‘(b) APPRAISAL NOT REQUIRED.—Except as Sec. 402. Supplementary leverage ratio for ‘‘(dd) that does not have negative amorti- zation or interest-only features; and provided in subsection (d), notwithstanding custodial banks. ‘‘(ee) for which the covered institution con- any other provision of law, an appraisal in Sec. 403. Treatment of certain municipal ob- siders and documents the debt, income, and connection with a federally related trans- ligations. financial resources of the consumer in ac- action involving real property or an interest TITLE V—ENCOURAGING CAPITAL cordance with clause (iv); and in real property is not required if— FORMATION ‘‘(II) a residential mortgage loan described ‘‘(1) the real property or interest in real Sec. 501. National securities exchange regu- in subclause (I) shall be deemed to meet the property is located in a rural area, as de- latory parity. requirements of subsection (a). scribed in section 1026.35(b)(2)(iv)(A) of title Sec. 502. SEC study on algorithmic trading. ‘‘(iii) EXCEPTION FOR CERTAIN TRANSFERS.— 12, Code of Federal Regulations; Sec. 503. Annual review of government-busi- A residential mortgage loan described in ‘‘(2) not later than 3 days after the date on ness forum on capital forma- clause (ii)(I) shall not qualify for the safe which the Closing Disclosure Form, made in tion. harbor under clause (ii) if the legal title to accordance with the final rule of the Bureau Sec. 504. Supporting America’s innovators. the residential mortgage loan is sold, as- of Consumer Financial Protection entitled Sec. 505. Securities and Exchange Commis- signed, or otherwise transferred to another ‘Integrated Mortgage Disclosures Under the sion overpayment credit. person unless the residential mortgage loan Real Estate Settlement Procedures Act Sec. 506. U.S. territories investor protection. is sold, assigned, or otherwise transferred— (Regulation X) and the Truth in Lending Act Sec. 507. Encouraging employee ownership. ‘‘(I) to another person by reason of the (Regulation Z)’ (78 Fed. Reg. 79730 (December Sec. 508. Improving access to capital. bankruptcy or failure of a covered institu- 31, 2013)), relating to the federally related Sec. 509. Parity for closed-end companies re- tion; transaction is given to the consumer, the garding offering and proxy ‘‘(II) to a covered institution so long as the mortgage originator or its agent, directly or rules. loan is retained in portfolio by the covered indirectly— institution to which the loan is sold, as- ‘‘(A) has contacted not fewer than 3 State TITLE VI—PROTECTIONS FOR STUDENT signed, or otherwise transferred; certified appraisers or State licensed ap- BORROWERS ‘‘(III) pursuant to a merger of a covered in- praisers, as applicable, on the mortgage Sec. 601. Protections in the event of death or stitution with another person or the acquisi- originator’s approved appraiser list in the bankruptcy. tion of a covered institution by another per- market area in accordance with part 226 of Sec. 602. Rehabilitation of private education son or of another person by a covered insti- title 12, Code of Federal Regulations; and loans. tution, so long as the loan is retained in ‘‘(B) has documented that no State cer- Sec. 603. Best practices for higher education portfolio by the person to whom the loan is tified appraiser or State licensed appraiser, financial literacy. sold, assigned, or otherwise transferred; or as applicable, was available within 5 business SEC. 2. DEFINITIONS. ‘‘(IV) to a wholly owned subsidiary of a days beyond customary and reasonable fee In this Act: covered institution, provided that, after the and timeliness standards for comparable ap- (1) APPROPRIATE FEDERAL BANKING AGENCY; sale, assignment, or transfer, the residential praisal assignments, as documented by the COMPANY; DEPOSITORY INSTITUTION; DEPOSI- mortgage loan is considered to be an asset of mortgage originator or its agent; TORY INSTITUTION HOLDING COMPANY.—The the covered institution for regulatory ac- ‘‘(3) the transaction value is less than terms ‘‘appropriate Federal banking agen- counting purposes. $400,000; and

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1547 ‘‘(4) the mortgage originator is subject to (3) by adding at the end the following: ‘‘(B) has not been subject to, or served oversight by a Federal financial institutions ‘‘(o) DEFINITIONS.—In this section— with, a cease and desist order— regulatory agency. ‘‘(1) the term ‘insured credit union’ has the ‘‘(i) in any governmental jurisdiction; or ‘‘(c) SALE, ASSIGNMENT, OR TRANSFER.—A meaning given the term in section 101 of the ‘‘(ii) under section 1514(c); mortgage originator that makes a loan with- Federal Credit Union Act (12 U.S.C. 1752); ‘‘(C) has not been convicted of a mis- out an appraisal under the terms of sub- and demeanor or felony that would preclude li- section (b) shall not sell, assign, or otherwise ‘‘(2) the term ‘insured depository institu- censure under the law of the application transfer legal title to the loan unless— tion’ has the meaning given the term in sec- State; ‘‘(1) the loan is sold, assigned, or otherwise tion 3 of the Federal Deposit Insurance Act ‘‘(D) has submitted an application to be a transferred to another person by reason of (12 U.S.C. 1813).’’. State-licensed loan originator in the applica- the bankruptcy or failure of the mortgage (b) LOOKBACK STUDY.— tion State; and originator; (1) STUDY.—Not earlier than 2 years after ‘‘(E) was registered in the Nationwide ‘‘(2) the loan is sold, assigned, or otherwise the date of enactment of this Act, the Comp- Mortgage Licensing System and Registry as transferred to another person regulated by a troller General of the United States shall a loan originator during the 1-year period Federal financial institutions regulatory conduct a study to evaluate the impact of preceding the date on which the information agency, so long as the loan is retained in the amendments made by subsection (a) on required under section 1505(a) is submitted. portfolio by the person; the amount of data available under the ‘‘(2) PERIOD.—The period described in this ‘‘(3) the sale, assignment, or transfer is Home Mortgage Disclosure Act of 1975 (12 paragraph shall begin on the date on which pursuant to a merger of the mortgage origi- U.S.C. 2801 et seq.) at the national and local an individual described in paragraph (1) sub- nator with another person or the acquisition level. mits the information required under section of the mortgage originator by another per- (2) REPORT.—Not later than 3 years after 1505(a) and shall end on the earliest of the son or of another person by the mortgage the date of enactment of this Act, the Comp- date— originator; or troller General of the United States shall ‘‘(A) on which the individual withdraws the ‘‘(4) the sale, loan, or transfer is to a whol- submit to the Committee on Banking, Hous- application to be a State-licensed loan origi- ly owned subsidiary of the mortgage origi- ing, and Urban Affairs of the Senate and the nator in the application State; nator, provided that, after the sale, assign- Committee on Financial Services of the ‘‘(B) on which the application State denies, ment, or transfer, the loan is considered to House of Representatives a report that in- or issues a notice of intent to deny, the ap- be an asset of the mortgage originator for cludes the findings and conclusions of the plication; regulatory accounting purposes. Comptroller General with respect to the ‘‘(C) on which the application State grants ‘‘(d) EXCEPTION.—Subsection (b) shall not study required under paragraph (1). a State license; or apply if— (c) TECHNICAL CORRECTION.—Section ‘‘(D) that is 120 days after the date on ‘‘(1) a Federal financial institutions regu- 304(i)(3) of the Home Mortgage Disclosure which the individual submits the applica- latory agency requires an appraisal under Act of 1975, as so redesignated by subsection tion, if the application is listed on the Na- section 225.63(c), 323.3(c), 34.43(c), or 722.3(e) (a)(1), is amended by striking ‘‘section tionwide Mortgage Licensing System and of title 12, Code of Federal Regulations; or 303(2)(A)’’ and inserting ‘‘section 303(3)(A)’’. Registry as incomplete. ‘‘(c) TEMPORARY AUTHORITY TO ORIGINATE ‘‘(2) the loan is a high-cost mortgage, as SEC. 105. CREDIT UNION RESIDENTIAL LOANS. defined in section 103 of the Truth in Lend- LOANS FOR STATE-LICENSED LOAN ORIGINA- (a) REMOVAL FROM MEMBER BUSINESS LOAN ing Act (15 U.S.C. 1602). TORS MOVING INTERSTATE.— LIMITATION.—Section 107A(c)(1)(B)(i) of the ‘‘(e) ANTI-EVASION.—Each Federal financial ‘‘(1) IN GENERAL.—A State-licensed loan institutions regulatory agency shall ensure Federal Credit Union Act (12 U.S.C. originator shall be deemed to have tem- that any mortgage originator that the Fed- 1757a(c)(1)(B)(i)) is amended by striking porary authority to act as a loan originator eral financial institutions regulatory agency ‘‘that is the primary residence of a member’’. in an application State for the period de- oversees that makes a significant amount of (b) RULE OF CONSTRUCTION.—Nothing in scribed in paragraph (2) if the State-licensed loans under subsection (b) is complying with this section or the amendment made by this loan originator— the requirements of subsection (b)(2) with re- section shall preclude the National Credit ‘‘(A) meets the requirements of subpara- spect to each loan.’’. Union Administration from treating an ex- graphs (A), (B), (C), and (D) of subsection tension of credit that is fully secured by a SEC. 104. HOME MORTGAGE DISCLOSURE ACT AD- (b)(1); JUSTMENT AND STUDY. lien on a 1- to 4-family dwelling that is not ‘‘(B) is employed by a State-licensed mort- (a) IN GENERAL.—Section 304 of the Home the primary residence of a member as a gage company in the application State; and Mortgage Disclosure Act of 1975 (12 U.S.C. member business loan for purposes other ‘‘(C) was licensed in a State that is not the 2803) is amended— than the member business loan limitation application State during the 30-day period (1) by redesignating subsection (i) as para- requirements under section 107A of the Fed- preceding the date on which the information graph (3) and adjusting the margins accord- eral Credit Union Act (12 U.S.C. 1757a). required under section 1505(a) was submitted ingly; SEC. 106. ELIMINATING BARRIERS TO JOBS FOR in connection with the application submitted (2) by inserting before paragraph (3), as so LOAN ORIGINATORS. to the application State. redesignated, the following: (a) IN GENERAL.—The S.A.F.E. Mortgage ‘‘(2) PERIOD.—The period described in this ‘‘(i) EXEMPTIONS.— Licensing Act of 2008 (12 U.S.C. 5101 et seq.) paragraph shall begin on the date on which ‘‘(1) CLOSED-END MORTGAGE LOANS.—With is amended by adding at the end the fol- the State-licensed loan originator submits respect to an insured depository institution lowing: the information required under section or insured credit union, the requirements of ‘‘SEC. 1518. EMPLOYMENT TRANSITION OF LOAN 1505(a) in connection with the application paragraphs (5) and (6) of subsection (b) shall ORIGINATORS. submitted to the application State and end not apply with respect to closed-end mort- ‘‘(a) DEFINITIONS.—In this section: on the earliest of the date— gage loans if the insured depository institu- ‘‘(1) APPLICATION STATE.—The term ‘appli- ‘‘(A) on which the State-licensed loan tion or insured credit union originated fewer cation State’ means a State in which a reg- originator withdraws the application to be a than 500 closed-end mortgage loans in each istered loan originator or a State-licensed State-licensed loan originator in the applica- of the 2 preceding calendar years. loan originator seeks to be licensed. tion State; ‘‘(2) OPEN-END LINES OF CREDIT.—With re- ‘‘(2) STATE-LICENSED MORTGAGE COMPANY.— ‘‘(B) on which the application State denies, spect to an insured depository institution or The term ‘State-licensed mortgage company’ or issues a notice of intent to deny, the ap- insured credit union, the requirements of means an entity that is licensed or reg- plication; paragraphs (5) and (6) of subsection (b) shall istered under the law of any State to engage ‘‘(C) on which the application State grants not apply with respect to open-end lines of in residential mortgage loan origination and a State license; or credit if the insured depository institution processing activities. ‘‘(D) that is 120 days after the date on or insured credit union originated fewer than ‘‘(b) TEMPORARY AUTHORITY TO ORIGINATE which the State-licensed loan originator sub- 500 open-end lines of credit in each of the 2 LOANS FOR LOAN ORIGINATORS MOVING FROM mits the application, if the application is preceding calendar years. A DEPOSITORY INSTITUTION TO A NON-DEPOSI- listed on the Nationwide Mortgage Licensing ‘‘(3) REQUIRED COMPLIANCE.—Notwith- TORY INSTITUTION.— System and Registry as incomplete. standing paragraphs (1) and (2), an insured ‘‘(1) IN GENERAL.—Upon becoming em- ‘‘(d) APPLICABILITY.— depository institution shall comply with ployed by a State-licensed mortgage com- ‘‘(1) EMPLOYER OF LOAN ORIGINATORS.—Any paragraphs (5) and (6) of subsection (b) if the pany, an individual who is a registered loan person employing an individual who is insured depository institution has received a originator shall be deemed to have tem- deemed to have temporary authority to act rating of ‘needs to improve record of meeting porary authority to act as a loan originator as a loan originator in an application State community credit needs’ during each of its 2 in an application State for the period de- under this section shall be subject to the re- most recent examinations or a rating of ‘sub- scribed in paragraph (2) if the individual— quirements of this title and to applicable stantial noncompliance in meeting commu- ‘‘(A) has not had— State law to the same extent as if that indi- nity credit needs’ on its most recent exam- ‘‘(i) an application for a loan originator li- vidual was a State-licensed loan originator ination under section 807(b)(2) of the Commu- cense denied; or licensed by the application State. nity Reinvestment Act of 1977 (12 U.S.C. ‘‘(ii) a loan originator license revoked or ‘‘(2) ENGAGING IN MORTGAGE LOAN ACTIVI- 2906(b)(2)).’’; and suspended in any governmental jurisdiction; TIES.—Any individual who is deemed to have

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1548 CONGRESSIONAL RECORD — SENATE March 8, 2018 temporary authority to act as a loan origi- (D) by adding at the end the following: banking agency, to the average total consoli- nator in an application State under this sec- ‘‘(2) TREATMENT OF LOANS HELD BY SMALLER dated assets of the qualifying community tion and who engages in residential mort- INSTITUTIONS.—The Bureau shall, by regula- bank, as reported on the qualifying commu- gage loan origination activities shall be sub- tion, exempt from the requirements of sub- nity bank’s applicable regulatory filing with ject to the requirements of this title and to section (a) any loan made by an insured de- the qualifying community bank’s appro- applicable State law to the same extent as if pository institution or an insured credit priate Federal banking agency. that individual was a State-licensed loan union secured by a first lien on the principal (2) GENERALLY APPLICABLE LEVERAGE CAP- originator licensed by the application dwelling of a consumer if— ITAL REQUIREMENTS; GENERALLY APPLICABLE State.’’. ‘‘(A) the insured depository institution or RISK-BASED CAPITAL REQUIREMENTS.—The (b) TABLE OF CONTENTS AMENDMENT.—Sec- insured credit union has assets of terms ‘‘generally applicable leverage capital tion 1(b) of the Housing and Economic Re- $10,000,000,000 or less; requirements’’ and ‘‘generally applicable covery Act of 2008 (42 U.S.C. 4501 note) is ‘‘(B) during the preceding calendar year, risk-based capital requirements’’ have the amended by inserting after the item relating the insured depository institution or insured meanings given those terms in section 171(a) to section 1517 the following: credit union and its affiliates originated 1,000 of the Financial Stability Act of 2010 (12 ‘‘Sec. 1518. Employment transition of loan or fewer loans secured by a first lien on a U.S.C. 5371(a)). originators.’’. principal dwelling; and (3) QUALIFYING COMMUNITY BANK.— (c) CIVIL LIABILITY.—Section 1513 of the ‘‘(C) the transaction satisfies the criteria (A) ASSET THRESHOLD.—The term ‘‘quali- S.A.F.E. Mortgage Licensing Act of 2008 (12 in sections 1026.35(b)(2)(iii)(A), fying community bank’’ means a depository U.S.C. 5112) is amended by striking ‘‘persons 1026.35(b)(2)(iii)(D), and 1026.35(b)(2)(v) of title institution or depository institution holding who are loan originators or are applying for 12, Code of Federal Regulations, or any suc- company with total consolidated assets of licensing or registration as loan origina- cessor regulation.’’; and less than $10,000,000,000. tors.’’ and inserting ‘‘persons who— (2) in subsection (i), by adding at the end (B) RISK PROFILE.—The appropriate Federal ‘‘(1) have applied, are applying, or are li- the following: banking agencies may determine that a de- censed or registered through the Nationwide ‘‘(3) INSURED CREDIT UNION.—The term ‘in- pository institution or depository institu- Mortgage Licensing System and Registry; sured credit union’ has the meaning given tion holding company (or a class of deposi- and the term in section 101 of the Federal Credit tory institutions or depository institution ‘‘(2) work in an industry with respect to Union Act (12 U.S.C. 1752). holding companies) described in subpara- which persons were licensed or registered ‘‘(4) INSURED DEPOSITORY INSTITUTION.—The graph (A) is not a qualifying community through the Nationwide Mortgage Licensing term ‘insured depository institution’ has the bank based on the depository institution’s or System and Registry on the date of enact- meaning given the term in section 3 of the depository institution holding company’s ment of the Economic Growth, Regulatory Federal Deposit Insurance Act (12 U.S.C. risk profile, which shall be based on consid- Relief, and Consumer Protection Act.’’. 1813).’’. eration of— (d) EFFECTIVE DATE.—This section and the SEC. 109. NO WAIT FOR LOWER MORTGAGE (i) off-balance sheet exposures; amendments made by this section shall take RATES. (ii) trading assets and liabilities; effect on the date that is 18 months after the (a) IN GENERAL.—Section 129(b) of the (iii) total notional derivatives exposures; date of enactment of this Act. Truth in Lending Act (15 U.S.C. 1639(b)) is and SEC. 107. PROTECTING ACCESS TO MANUFAC- amended— (iv) such other factors as the appropriate TURED HOMES. (1) by redesignating paragraph (3) as para- Federal banking agencies determine appro- Section 103 of the Truth in Lending Act (15 graph (4); and priate. U.S.C. 1602) is amended— (2) by inserting after paragraph (2) the fol- (1) by redesignating the second subsection (b) COMMUNITY BANK LEVERAGE RATIO.— lowing: (cc) (relating to definitions relating to mort- The appropriate Federal banking agencies ‘‘(3) NO WAIT FOR LOWER RATE.—If a cred- gage origination and residential mortgage shall, through notice and comment rule itor extends to a consumer a second offer of loans) and subsection (dd) as subsections (dd) making under section 553 of title 5, United credit with a lower annual percentage rate, and (ee), respectively; and States Code— the transaction may be consummated with- (2) in paragraph (2) of subsection (dd), as so (1) develop a Community Bank Leverage out regard to the period specified in para- redesignated, by striking subparagraph (C) Ratio of not less than 8 percent and not more graph (1) with respect to the second offer.’’. and inserting the following: than 10 percent for qualifying community (b) SENSE OF CONGRESS.—It is the sense of ‘‘(C) does not include any person who is— banks; and Congress that, whereas the Bureau of Con- ‘‘(i) not otherwise described in subpara- (2) establish procedures for treatment of a sumer Financial Protection issued a final graph (A) or (B) and who performs purely ad- qualifying community bank that has a Com- rule entitled ‘‘Integrated Mortgage Disclo- ministrative or clerical tasks on behalf of a munity Bank Leverage Ratio that falls sures Under the Real Estate Settlement Pro- person who is described in any such subpara- below the percentage developed under para- cedures Act (Regulation X) and the Truth in graph; or graph (1) after exceeding the percentage de- Lending Act (Regulation Z)’’ (78 Fed. Reg. ‘‘(ii) a retailer of manufactured or modular veloped under paragraph (1). 79730 (December 31, 2013)) (in this subsection homes or an employee of the retailer if the referred to as the ‘‘TRID Rule’’) to combine (c) CAPITAL COMPLIANCE.— retailer or employee, as applicable— the disclosures a consumer receives in con- (1) IN GENERAL.—Any qualifying commu- ‘‘(I) does not receive compensation or gain nection with applying for and closing on a nity bank that exceeds the Community Bank for engaging in activities described in sub- mortgage loan, the Bureau of Consumer Fi- Leverage Ratio developed under subsection paragraph (A) that is in excess of any com- nancial Protection should endeavor to pro- (b)(1) shall be considered to have met— pensation or gain received in a comparable vide clearer, authoritative guidance on— (A) the generally applicable leverage cap- cash transaction; (1) the applicability of the TRID Rule to ital requirements and the generally applica- ‘‘(II) discloses to the consumer— mortgage assumption transactions; ble risk-based capital requirements; ‘‘(aa) in writing any corporate affiliation (2) the applicability of the TRID Rule to (B) in the case of a qualifying community with any creditor; and construction-to-permanent home loans, and bank that is a depository institution, the ‘‘(bb) if the retailer has a corporate affili- the conditions under which those loans can capital ratio requirements that are required ation with any creditor, at least 1 unaffili- be properly originated; and in order to be considered well capitalized ated creditor; and (3) the extent to which lenders can rely on under section 38 of the Federal Deposit In- ‘‘(III) does not directly negotiate with the model disclosures published by the Bureau of surance Act (12 U.S.C. 1831o) and any regula- consumer or lender on loan terms (including Consumer Financial Protection without li- tion implementing that section; and rates, fees, and other costs).’’. ability if recent changes to regulations are (C) any other capital or leverage require- SEC. 108. ESCROW REQUIREMENTS RELATING TO not reflected in the sample TRID Rule forms ments to which the qualifying community CERTAIN CONSUMER CREDIT bank is subject. TRANSACTIONS. published by the Bureau of Consumer Finan- Section 129D of the Truth in Lending Act cial Protection. (2) EXISTING AUTHORITIES.—Nothing in (15 U.S.C. 1639d) is amended— TITLE II—REGULATORY RELIEF AND PRO- paragraph (1) shall limit the authority of the (1) in subsection (c)— TECTING CONSUMER ACCESS TO CRED- appropriate Federal banking agencies as in (A) by redesignating paragraphs (1) IT effect on the date of enactment of this Act. through (4) as subparagraphs (A) through SEC. 201. CAPITAL SIMPLIFICATION FOR QUALI- (d) CONSULTATION.—The appropriate Fed- (D), respectively, and adjusting the margins FYING COMMUNITY BANKS. eral banking agencies shall— accordingly; (a) DEFINITIONS.—In this section: (1) consult with the applicable State bank (B) in the matter preceding subparagraph (1) COMMUNITY BANK LEVERAGE RATIO.—The supervisors in carrying out this section; and (A), as so redesignated, by striking ‘‘The term ‘‘Community Bank Leverage Ratio’’ (2) notify the applicable State bank super- Board’’ and inserting the following: means the ratio of the tangible equity cap- visor of any qualifying community bank that ‘‘(1) IN GENERAL.—The Bureau’’; ital of a qualifying community bank, as re- it supervises that exceeds, or does not exceed (C) in paragraph (1), as so redesignated, by ported on the qualifying community bank’s after previously exceeding, the Community striking ‘‘the Board’’ each place that term applicable regulatory filing with the quali- Bank Leverage ratio developed under sub- appears and inserting ‘‘the Bureau’’; and fying community bank’s appropriate Federal section (b)(1).

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SEC. 202. LIMITED EXCEPTION FOR RECIPROCAL ‘‘(i) under subsection (c) or (d), accepts (2) in subsection (h)(5)(C), by inserting be- DEPOSITS. funds obtained, directly or indirectly, by or fore the period the following: ‘‘, except as (a) IN GENERAL.—Section 29 of the Federal through a deposit broker; or permitted under subsection (d)(1)(G)(vi)’’. Deposit Insurance Act (12 U.S.C. 1831f) is ‘‘(ii) while acting as an agent institution SEC. 205. SHORT FORM CALL REPORTS. amended by adding at the end the following: under subsection (i), accepts reciprocal de- Section 7(a) of the Federal Deposit Insur- ‘‘(i) LIMITED EXCEPTION FOR RECIPROCAL posits while not well capitalized. ance Act (12 U.S.C. 1817(a)) is amended by DEPOSITS.— ‘‘(2) PROHIBITION.—A covered insured de- adding at the end the following: ‘‘(1) IN GENERAL.—Reciprocal deposits of an pository institution may not pay a rate of ‘‘(12) SHORT FORM REPORTING.— agent institution shall not be considered to interest on funds or reciprocal deposits de- ‘‘(A) IN GENERAL.—The appropriate Federal be funds obtained, directly or indirectly, by scribed in paragraph (1) that, at the time banking agencies shall issue regulations that or through a deposit broker to the extent that the funds or reciprocal deposits are ac- allow for a reduced reporting requirement that the total amount of such reciprocal de- cepted, significantly exceeds the limit set for a covered depository institution when the posits does not exceed the lesser of— forth in paragraph (3). institution makes the first and third report ‘‘(A) $5,000,000,000; or ‘‘(3) LIMIT ON INTEREST RATES.—The limit of condition for a year, as required under ‘‘(B) an amount equal to 20 percent of the on the rate of interest referred to in para- paragraph (3). total liabilities of the agent institution. graph (2) shall be— ‘‘(B) DEFINITION.—In this paragraph, the ‘‘(2) DEFINITIONS.—In this subsection: ‘‘(A) the rate paid on deposits of similar term ‘covered depository institution’ means ‘‘(A) AGENT INSTITUTION.—The term ‘agent maturity in the normal market area of the an insured depository institution that— institution’ means an insured depository in- covered insured depository institution for ‘‘(i) has less than $5,000,000,000 in total con- stitution that places a covered deposit deposits accepted in the normal market area solidated assets; and through a deposit placement network at of the covered insured depository institu- ‘‘(ii) satisfies such other criteria as the ap- other insured depository institutions in tion; or propriate Federal banking agencies deter- amounts that are less than or equal to the ‘‘(B) the national rate paid on deposits of mine appropriate.’’. standard maximum deposit insurance comparable maturity, as established by the SEC. 206. OPTION FOR FEDERAL SAVINGS ASSO- amount, specifying the interest rate to be Corporation, for deposits accepted outside CIATIONS TO OPERATE AS COVERED paid for such amounts, if the insured deposi- the normal market area of the covered in- SAVINGS ASSOCIATIONS. tory institution— sured depository institution.’’. The Home Owners’ Loan Act (12 U.S.C. 1461 ‘‘(i)(I) when most recently examined under SEC. 203. COMMUNITY BANK RELIEF. et seq.) is amended by inserting after section section 10(d) was found to have a composite Section 13(h)(1) of the Bank Holding Com- 5 (12 U.S.C. 1464) the following: condition of outstanding or good; and pany Act of 1956 (12 U.S.C. 1851(h)(1)) is ‘‘SEC. 5A. ELECTION TO OPERATE AS A COVERED ‘‘(II) is well capitalized; amended— SAVINGS ASSOCIATION. ‘‘(ii) has obtained a waiver pursuant to (1) in subparagraph (D), by redesignating ‘‘(a) DEFINITION.—In this section, the term subsection (c); or clauses (i) and (ii) as subclauses (I) and (II), ‘covered savings association’ means a Fed- ‘‘(iii) does not receive an amount of recip- respectively, and adjusting the margins ac- eral savings association that makes an elec- rocal deposits that causes the total amount cordingly; tion that is approved under subsection (b). of reciprocal deposits held by the agent insti- (2) by redesignating subparagraphs (A) ‘‘(b) ELECTION.— tution to be greater than the average of the through (D) as clauses (i) through (iv), re- ‘‘(1) IN GENERAL.—In accordance with the total amount of reciprocal deposits held by spectively, and adjusting the margins ac- rules issued under subsection (f), a Federal the agent institution on the last day of each cordingly; savings association with total consolidated of the 4 calendar quarters preceding the cal- (3) in the matter preceding clause (i), as so assets equal to or less than $20,000,000,000, as endar quarter in which the agent institution redesignated, in the second sentence, by reported by the association to the Comp- was found not to have a composite condition striking ‘‘institution that functions solely in troller as of December 31, 2017, may elect to of outstanding or good or was determined to a trust or fiduciary capacity, if—’’ and in- operate as a covered savings association by be not well capitalized. serting the following: ‘‘institution— submitting a notice to the Comptroller of ‘‘(B) COVERED DEPOSIT.—The term ‘covered ‘‘(A) that functions solely in a trust or fi- that election. deposit’ means a deposit that— duciary capacity, if—’’; ‘‘(2) APPROVAL.—A Federal savings associa- ‘‘(i) is submitted for placement through a (4) in clause (iv)(II), as so redesignated, by tion shall be deemed to be approved to oper- deposit placement network by an agent in- striking the period at the end and inserting ate as a covered savings association begin- stitution; and ‘‘; or’’; and ning on the date that is 60 days after the ‘‘(ii) does not consist of funds that were ob- (5) by adding at the end the following: date on which the Comptroller receives the tained for the agent institution, directly or ‘‘(B) that does not have and is not con- notice submitted under paragraph (1), unless indirectly, by or through a deposit broker trolled by a company that has— the Comptroller notifies the Federal savings before submission for placement through a ‘‘(i) more than $10,000,000,000 in total con- association that the Federal savings associa- deposit placement network. solidated assets; and tion is not eligible. ‘‘(C) DEPOSIT PLACEMENT NETWORK.—The ‘‘(ii) total trading assets and trading liabil- ‘‘(c) RIGHTS AND DUTIES.—Notwithstanding term ‘deposit placement network’ means a ities, as reported on the most recent applica- any other provision of law, and except as network in which an insured depository in- ble regulatory filing filed by the institution, otherwise provided in this section, a covered stitution participates, together with other that are more than 5 percent of total consoli- savings association shall— insured depository institutions, for the proc- dated assets.’’. ‘‘(1) have the same rights and privileges as essing and receipt of reciprocal deposits. a national bank that has the main office of ‘‘(D) NETWORK MEMBER BANK.—The term SEC. 204. REMOVING NAMING RESTRICTIONS. the national bank situated in the same loca- ‘network member bank’ means an insured Section 13 of the Bank Holding Company tion as the home office of the covered sav- depository institution that is a member of a Act of 1956 (12 U.S.C. 1851) is amended— ings association; and deposit placement network. (1) in subsection (d)(1)(G)(vi), by inserting ‘‘(2) be subject to the same duties, restric- ‘‘(E) RECIPROCAL DEPOSITS.—The term ‘re- before the semicolon the following: ‘‘, except tions, penalties, liabilities, conditions, and ciprocal deposits’ means deposits received by that the hedge fund or private equity fund limitations that would apply to a national an agent institution through a deposit place- may share the same name or a variation of bank described in paragraph (1). ment network with the same maturity (if the same name as a banking entity that is ‘‘(d) TREATMENT OF COVERED SAVINGS ASSO- any) and in the same aggregate amount as an investment adviser to the hedge fund or CIATIONS.—A covered savings association covered deposits placed by the agent institu- private equity fund, if— shall be treated as a Federal savings associa- tion in other network member banks. ‘‘(I) such investment adviser is not an in- tion for the purposes— ‘‘(F) WELL CAPITALIZED.—The term ‘well sured depository institution, a company that ‘‘(1) of governance of the covered savings capitalized’ has the meaning given the term controls an insured depository institution, association, including incorporation, bylaws, in section 38(b)(1).’’. or a company that is treated as a bank hold- boards of directors, shareholders, and dis- (b) INTEREST RATE RESTRICTION.—Section ing company for purposes of section 8 of the tribution of dividends; 29 of the Federal Deposit Insurance Act (12 International Banking Act of 1978 (12 U.S.C. ‘‘(2) of consolidation, merger, dissolution, U.S.C. 1831f) is amended by striking sub- 3106); conversion (including conversion to a stock section (e) and inserting the following: ‘‘(II) such investment adviser does not bank or to another charter), conservator- ‘‘(e) RESTRICTION ON INTEREST RATE PAID.— share the same name or a variation of the ship, and receivership; and ‘‘(1) DEFINITIONS.—In this subsection— same name as an insured depository institu- ‘‘(3) determined by regulation of the Comp- ‘‘(A) the terms ‘agent institution’, ‘recip- tion, any company that controls an insured troller. rocal deposits’, and ‘well capitalized’ have depository institution, or any company that ‘‘(e) EXISTING BRANCHES.—A covered sav- the meanings given those terms in sub- is treated as a bank holding company for ings association may continue to operate section (i); and purposes of section 8 of the International any branch or agency that the covered sav- ‘‘(B) the term ‘covered insured depository Banking Act of 1978 (12 U.S.C. 3106); and ings association operated on the date on institution’ means an insured depository in- ‘‘(III) such name does not contain the word which an election under subsection (b) is ap- stitution that— ‘bank’ ’’; and proved.

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‘‘(f) RULE MAKING.—The Comptroller shall than trust preferred securities) that are reg- ignated by the Secretary as a troubled small issue rules to carry out this section— istered with the Securities and Exchange public housing agency based on deficiencies ‘‘(1) that establish streamlined standards Commission. in the physical condition of its public hous- and procedures that clearly identify required (c) EXCLUSIONS.—The Board may exclude ing projects. Nothing contained in this sub- documentation and timelines for an election any bank holding company or savings and paragraph relieves the Secretary from con- under subsection (b); loan holding company, regardless of asset ducting lead safety inspections or assess- ‘‘(2) that require a Federal savings associa- size, from the revision under subsection (b) if ments in accordance with procedures estab- tion that makes an election under subsection the Board determines that such action is lished by the Secretary under section 302 of (b) to identify specific assets and subsidi- warranted for supervisory purposes. the Lead-Based Paint Poisoning Prevention aries that— (d) CONFORMING AMENDMENT.—Section Act (42 U.S.C. 4822). ‘‘(A) do not conform to the requirements 171(b)(5) of the Financial Stability Act of ‘‘(B) STANDARDS.—The Secretary shall for assets and subsidiaries of a national 2010 (12 U.S.C. 5371(b)(5)) is amended by strik- apply to small public housing agencies the bank; and ing subparagraph (C) and inserting the fol- same standards for the acceptable condition ‘‘(B) are held by the Federal savings asso- lowing: of public housing projects that apply to ciation on the date on which the Federal sav- ‘‘(C) any bank holding company or savings projects assisted under section 8. ings association submits a notice of the elec- and loan holding company that is subject to ‘‘(2) HOUSING VOUCHER PROGRAM.—Except as the application of appendix C to part 225 of tion; required by section 8(o)(8)(F), a small public title 12, Code of Federal Regulations (com- ‘‘(3) that establish— housing agency administering assistance monly known as the ‘Small Bank Holding ‘‘(A) a transition process for bringing the under section 8(o) shall make periodic phys- assets and subsidiaries described in para- Company and Savings and Loan Holding ical inspections of each assisted dwelling graph (2) into conformance with the require- Company Policy Statement’).’’. unit not less frequently than once every 3 ments for a national bank; and SEC. 208. APPLICATION OF THE EXPEDITED years to determine whether the unit is main- ‘‘(B) procedures for allowing the Federal FUNDS AVAILABILITY ACT. tained in accordance with the requirements savings association to submit to the Comp- (a) IN GENERAL.—The Expedited Funds under section 8(o)(8)(A). Nothing contained troller an application to continue to hold as- Availability Act (12 U.S.C. 4001 et seq.) is in this paragraph relieves a small public sets and subsidiaries described in paragraph amended— housing agency from conducting lead safety (2) after electing to operate as a covered sav- (1) in section 602 (12 U.S.C. 4001)— inspections or assessments in accordance ings association; (A) in paragraph (20), by inserting ‘‘, lo- with procedures established by the Secretary ‘‘(4) that establish standards and proce- cated in the United States,’’ after ‘‘ATM’’; under section 302 of the Lead-Based Paint dures to allow a covered savings association (B) in paragraph (21), by inserting ‘‘Amer- to— ican Samoa, the Commonwealth of the Poisoning Prevention Act (42 U.S.C. 4822). ‘‘(A) terminate an election under sub- Northern Mariana Islands, Guam,’’ after ‘‘(3) TROUBLED SMALL PUBLIC HOUSING AGEN- section (b) after an appropriate period of ‘‘Puerto Rico,’’; and CIES.— time; and (C) in paragraph (23), by inserting ‘‘Amer- ‘‘(A) PUBLIC HOUSING PROGRAM.—Notwith- ‘‘(B) make a subsequent election under ican Samoa, the Commonwealth of the standing any other provision of law, the Sec- subsection (b) after terminating an election Northern Mariana Islands, Guam,’’ after retary may designate a small public housing under subparagraph (A); ‘‘Puerto Rico,’’; and agency as a troubled small public housing ‘‘(5) that clarify requirements for the (2) in section 603(d)(2)(A) (12 U.S.C. agency with respect to the public housing treatment of covered savings associations, 4002(d)(2)(A)), by inserting ‘‘American program of the small public housing agency including the provisions of law that apply to Samoa, the Commonwealth of the Northern if the Secretary determines that the agency covered savings associations; and Mariana Islands, Guam,’’ after ‘‘Puerto has failed to maintain the public housing ‘‘(6) as the Comptroller determines nec- Rico,’’. units of the small public housing agency in a essary in the interests of safety and sound- (b) EFFECTIVE DATE.—The amendments satisfactory physical condition, based upon ness. made by this section shall take effect on the an inspection conducted by the Secretary. ‘‘(g) GRANDFATHERED COVERED SAVINGS AS- date that is 30 days after the date of enact- ‘‘(B) HOUSING VOUCHER PROGRAM.—Notwith- SOCIATIONS.—Subject to the rules issued ment of this Act. standing any other provision of law, the Sec- under subsection (f), a covered savings asso- SEC. 209. SMALL PUBLIC HOUSING AGENCIES. retary may designate a small public housing ciation may continue to operate as a covered (a) SMALL PUBLIC HOUSING AGENCIES.— agency as a troubled small public housing savings association if, after the date on Title I of the United States Housing Act of agency with respect to the housing voucher which the election is made under subsection 1937 (42 U.S.C. 1437 et seq.) is amended by program of the small public housing agency (b), the covered savings association has total adding at the end the following: if the Secretary determines that the agency consolidated assets greater than has failed to comply with the inspection re- ‘‘SEC. 38. SMALL PUBLIC HOUSING AGENCIES. $20,000,000,000.’’. quirements under paragraph (2). ‘‘(a) DEFINITIONS.—In this section: SEC. 207. SMALL BANK HOLDING COMPANY POL- ‘‘(C) APPEALS.— ‘‘(1) HOUSING VOUCHER PROGRAM.—The term ICY STATEMENT. ‘‘(i) ESTABLISHMENT.—The Secretary shall ‘housing voucher program’ means a program (a) DEFINITIONS.—In this section: establish an appeals process under which a for tenant-based assistance under section 8. (1) BOARD.—The term ‘‘Board’’ means the small public housing agency may dispute a ‘‘(2) SMALL PUBLIC HOUSING AGENCY.—The Board of Governors of the Federal Reserve designation as a troubled small public hous- System. term ‘small public housing agency’ means a public housing agency— ing agency. (2) SAVINGS AND LOAN HOLDING COMPANY.— ‘‘(ii) OFFICIAL.—The appeals process estab- The term ‘‘savings and loan holding com- ‘‘(A) for which the sum of the number of public housing dwelling units administered lished under clause (i) shall provide for a de- pany’’ has the meaning given the term in cision by an official who has not been in- section 10(a) of the Home Owners’ Loan Act by the agency and the number of vouchers under section 8(o) administered by the agen- volved, and is not subordinate to a person (12 U.S.C. 1467a(a)). who has been involved, in the original deter- (b) CHANGES REQUIRED TO SMALL BANK cy is 550 or fewer; and mination to designate a small public housing HOLDING COMPANY POLICY STATEMENT ON AS- ‘‘(B) that predominantly operates in a agency as a troubled small public housing SESSMENT OF FINANCIAL AND MANAGERIAL rural area, as described in section agency. FACTORS.—Not later than 180 days after the 1026.35(b)(2)(iv)(A) of title 12, Code of Federal date of enactment of this Act, the Board Regulations. ‘‘(D) CORRECTIVE ACTION AGREEMENT.— shall revise appendix C to part 225 of title 12, ‘‘(3) TROUBLED SMALL PUBLIC HOUSING AGEN- ‘‘(i) AGREEMENT REQUIRED.—Not later than Code of Federal Regulations (commonly CY.—The term ‘troubled small public housing 60 days after the date on which a small pub- known as the ‘‘Small Bank Holding Company agency’ means a small public housing agency lic housing agency is designated as a trou- and Savings and Loan Holding Company Pol- designated by the Secretary as a troubled bled public housing agency under subpara- icy Statement’’), to raise the consolidated small public housing agency under sub- graph (A) or (B), the Secretary and the small asset threshold under that appendix from section (c)(3). public housing agency shall enter into a cor- $1,000,000,000 to $3,000,000,000 for any bank ‘‘(b) APPLICABILITY.—Except as otherwise rective action agreement under which the holding company or savings and loan holding provided in this section, a small public hous- small public housing agency shall undertake company that— ing agency shall be subject to the same re- actions to correct the deficiencies upon (1) is not engaged in significant non- quirements as a public housing agency. which the designation is based. banking activities either directly or through ‘‘(c) PROGRAM INSPECTIONS AND EVALUA- ‘‘(ii) TERMS OF AGREEMENT.—A corrective a nonbank subsidiary; TIONS.— action agreement entered into under clause (2) does not conduct significant off-balance ‘‘(1) PUBLIC HOUSING PROJECTS.— (i) shall— sheet activities (including securitization and ‘‘(A) FREQUENCY OF INSPECTIONS BY SEC- ‘‘(I) have a term of 1 year, and shall be re- asset management or administration) either RETARY.—The Secretary shall carry out an newable at the option of the Secretary; directly or through a nonbank subsidiary; inspection of the physical condition of a ‘‘(II) provide, where feasible, for technical and small public housing agency’s public housing assistance to assist the public housing agen- (3) does not have a material amount of projects not more frequently than once every cy in curing its deficiencies; debt or equity securities outstanding (other 3 years, unless the agency has been des- ‘‘(III) provide for—

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‘‘(aa) reconsideration of the designation of ‘‘(II) may be used for any public housing (b) INSURANCE POLICY ADVISORY COM- the small public housing agency as a trou- purpose at the discretion of the small public MITTEE.— bled small public housing agency not less housing agency. (1) ESTABLISHMENT.—There is established frequently than annually; and ‘‘(v) THIRD PARTIES.—A small public hous- the Insurance Policy Advisory Committee on ‘‘(bb) termination of the agreement when ing agency making an election under this International Capital Standards and Other the Secretary determines that the small pub- subparagraph— Insurance Issues at the Board of Governors lic housing agency is no longer a troubled ‘‘(I) may use, but shall not be required to of the Federal Reserve System. small public housing agency; and use, the services of a third party in its en- (2) MEMBERSHIP.—The Committee shall be ‘‘(IV) provide that in the event of substan- ergy conservation program; and composed of not more than 21 members, all tial noncompliance by the small public hous- ‘‘(II) shall have the sole discretion to de- of whom represent a diverse set of expert ing agency under the agreement, the Sec- termine the source, and terms and condi- perspectives from the various sectors of the retary may— tions, of any financing used for its energy United States insurance industry, including ‘‘(aa) contract with another public housing conservation program.’’. life insurance, property and casualty insur- agency or a private entity to manage the (c) REPORTING BY AGENCIES OPERATING IN ance and reinsurance, agents and brokers, public housing of the troubled small public CONSORTIA.—Not later than 180 days after academics, consumer advocates, or experts housing agency; the date of enactment of this Act, the Sec- on issues facing underserved insurance com- ‘‘(bb) withhold funds otherwise distribut- retary of Housing and Urban Development munities and consumers. able to the troubled small public housing shall develop and deploy all electronic infor- (c) REPORTS.— agency; mation systems necessary to accommodate (1) REPORTS AND TESTIMONY BY SECRETARY ‘‘(cc) assume possession of, and direct re- full consolidated reporting by public housing OF THE TREASURY AND CHAIRMAN OF THE FED- sponsibility for, managing the public hous- agencies, as defined in section 3(b)(6) of the ERAL RESERVE.— ing of the troubled small public housing United States Housing Act of 1937 (42 U.S.C. (A) IN GENERAL.—The Secretary of the agency; 1437a(b)(6)), electing to operate in consortia Treasury and the Chairman of the Board of ‘‘(dd) petition for the appointment of a re- under section 13(a) of such Act (42 U.S.C. Governors of the Federal Reserve System, or ceiver, in accordance with section 1437k(a)). their designee, shall submit to the Com- 6(j)(3)(A)(ii); and (d) EFFECTIVE DATE.—The amendments mittee on Banking, Housing, and Urban Af- ‘‘(ee) exercise any other remedy available made by subsections (a) and (b) shall take ef- fairs of the Senate, and the Committee on to the Secretary in the event of default fect on the date that is 60 days after the date Financial Services of the House of Rep- under the public housing annual contribu- of enactment of this Act. resentatives, an annual report and provide tions contract entered into by the small pub- (e) SHARED WAITING LISTS.—Not later than annual testimony to the Committee on lic housing agency under section 5. 1 year after the date of enactment of this Banking, Housing, and Urban Affairs of the ‘‘(E) EMERGENCY ACTIONS.—Nothing in this Act, the Secretary of Housing and Urban De- Senate, and the Committee on Financial paragraph may be construed to prohibit the velopment shall make available to interested Services of the House of Representatives on Secretary from taking any emergency action public housing agencies and owners of multi- the efforts of the Secretary and the Chair- necessary to protect Federal financial re- family properties receiving assistance from man with the National Association of Insur- sources or the health or safety of residents of the Department of Housing and Urban Devel- ance Commissioners with respect to global public housing projects. opment 1 or more software programs that insurance regulatory or supervisory forums, will facilitate the voluntary use of a shared ‘‘(d) REDUCTION OF ADMINISTRATIVE BUR- including— waiting list by multiple public housing agen- DENS.— (i) a description of the insurance regu- cies or owners receiving assistance, and shall latory or supervisory standard-setting issues ‘‘(1) EXEMPTION.—Notwithstanding any publish on the website of the Department of other provision of law, a small public hous- under discussion at international standard- Housing and Urban Development procedural setting bodies, including the Financial Sta- ing agency shall be exempt from any envi- guidance for implementing shared waiting ronmental review requirements with respect bility Board and the International Associa- lists that includes information on how to ob- tion of Insurance Supervisors; to a development or modernization project tain the software. having a total cost of not more than $100,000. (ii) a description of the effects that pro- SEC. 210. EXAMINATION CYCLE. ‘‘(2) STREAMLINED PROCEDURES.—The Sec- posals discussed at international insurance retary shall, by rule, establish streamlined Section 10(d) of the Federal Deposit Insur- regulatory or supervisory forums of insur- procedures for environmental reviews of ance Act (12 U.S.C. 1820(d)) is amended— ance could have on consumer and insurance small public housing agency development (1) in paragraph (4)(A), by striking markets in the United States; and modernization projects having a total ‘‘$1,000,000,000’’ and inserting ‘‘$3,000,000,000’’; (iii) a description of any position taken by cost of more than $100,000.’’. and the Secretary of the Treasury, the Board of (2) in paragraph (10), by striking Governors of the Federal Reserve System, (b) ENERGY CONSERVATION.—Section 9(e)(2) ‘‘$1,000,000,000’’ and inserting ‘‘$3,000,000,000’’. and the Director of the Federal Insurance Of- of the United States Housing Act of 1937 (42 SEC. 211. INTERNATIONAL INSURANCE CAPITAL fice in international insurance discussions; U.S.C. 1437g(e)(2)) is amended by adding at STANDARDS ACCOUNTABILITY. and the end the following: (a) FINDINGS.—Congress finds that— (iv) a description of the efforts by the Sec- ‘‘(D) FREEZE OF CONSUMPTION LEVELS.— (1) the Secretary of the Treasury, Board of retary of the Treasury, the Board of Gov- ‘‘(i) IN GENERAL.—A small public housing Governors of the Federal Reserve System, ernors of the Federal Reserve System, and agency, as defined in section 38(a), may elect and Director of the Federal Insurance Office the Director of the Federal Insurance Office to be paid for its utility and waste manage- shall support increasing transparency at any to increase transparency at the Financial ment costs under the formula for a period, at global insurance or international standard- Stability Board with respect to insurance the discretion of the small public housing setting regulatory or supervisory forum in proposals and the International Association agency, of not more than 20 years based on which they participate, including supporting of Insurance Supervisors, including efforts to the small public housing agency’s average and advocating for greater public observer provide additional public access to working annual consumption during the 3-year period access to working groups and committee groups and committees of the International preceding the year in which the election is meetings of the International Association of Association of Insurance Supervisors. made (in this subparagraph referred to as the Insurance Supervisors; and (B) TERMINATION.—This paragraph shall ‘consumption base level’). (2) to the extent that the Secretary of the terminate on December 31, 2024. ‘‘(ii) INITIAL ADJUSTMENT IN CONSUMPTION Treasury, the Board of Governors of the Fed- (2) REPORTS AND TESTIMONY BY NATIONAL BASE LEVEL.—The Secretary shall make an eral Reserve System, and the Director of the ASSOCIATION OF INSURANCE COMMISSIONERS.— initial one-time adjustment in the consump- Federal Insurance Office take a position or The National Association of Insurance Com- tion base level to account for differences in reasonably intend to take a position with re- missioners may provide testimony to Con- the heating degree day average over the spect to an insurance proposal by a global in- gress on the issues described in paragraph most recent 20-year period compared to the surance regulatory or supervisory forum, the (1)(A). average in the consumption base level. Secretary of the Treasury, the Board of Gov- (3) JOINT REPORT BY THE CHAIRMAN OF THE ‘‘(iii) ADJUSTMENTS IN CONSUMPTION BASE ernors of the Federal Reserve System, and FEDERAL RESERVE AND THE DIRECTOR OF THE LEVEL.—The Secretary shall make adjust- the Director of the Federal Insurance Office FEDERAL INSURANCE OFFICE.— ments in the consumption base level to ac- shall achieve consensus positions with State (A) IN GENERAL.—The Secretary of the count for an increase or reduction in units, a insurance regulators through the National Treasury, the Chairman of the Board of Gov- change in fuel source, a change in resident Association of Insurance Commissioners, ernors of the Federal Reserve System, and controlled electricity consumption, or for when they are United States participants in the Director of the Federal Insurance Office other reasons. negotiations on insurance issues before the shall, in consultation with the National As- ‘‘(iv) SAVINGS.—All cost savings resulting International Association of Insurance Su- sociation of Insurance Commissioners, com- from an election made by a small public pervisors, Financial Stability Board, or any plete a study on, and submit to Congress a housing agency under this subparagraph— other international forum of financial regu- report on the results of the study, the impact ‘‘(I) shall accrue to the small public hous- lators or supervisors that considers such on consumers and markets in the United ing agency; and issues. States before supporting or consenting to

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(B) NOTICE AND COMMENT.— (5) FINANCIAL PRODUCT OR SERVICE.—The (c) RELATION TO STATE LAW.—The provi- (i) NOTICE.—The Secretary of the Treasury, term ‘‘financial product or service’’ has the sions of this section shall preempt and super- the Chairman of the Board of Governors of meaning given the term in section 1002 of the sede any State law that conflicts with a pro- the Federal Reserve System, and the Direc- Consumer Financial Protection Act of 2010 vision of this section, but only to the extent tor of the Federal Insurance Office shall pro- (12 U.S.C. 5481). of such conflict. vide public notice before the date on which (6) INSURED CREDIT UNION.—The term ‘‘in- SEC. 214. PROMOTING CONSTRUCTION AND DE- drafting a report required under subpara- sured credit union’’ has the meaning given VELOPMENT ON MAIN STREET. graph (A) is commenced and after the date the term in section 101 of the Federal Credit The Federal Deposit Insurance Act (12 on which the draft of the report is com- Union Act (12 U.S.C. 1752). U.S.C. 1811 et seq.) is amended by adding at pleted. (7) INSURED DEPOSITORY INSTITUTION.—The the end the following new section: (ii) OPPORTUNITY FOR COMMENT.—There term ‘‘insured depository institution’’ has ‘‘SEC. 51. CAPITAL REQUIREMENTS FOR CERTAIN shall be an opportunity for public comment the meaning given the term in section 3 of ACQUISITION, DEVELOPMENT, OR for a period beginning on the date on which the Federal Deposit Insurance Act (12 U.S.C. CONSTRUCTION LOANS. ‘‘(a) IN GENERAL.—The appropriate Federal the report is submitted under subparagraph 1813). banking agencies may only require a deposi- (A) and ending on the date that is 60 days (8) ONLINE SERVICE.—The term ‘‘online tory institution to assign a heightened risk after the date on which the report is sub- service’’ means any Internet-based service, weight to a high volatility commercial real mitted. such as a website or mobile application. estate (HVCRE) exposure (as such term is de- (C) REVIEW BY COMPTROLLER GENERAL.— (9) PERSONAL IDENTIFICATION CARD.—The fined under section 324.2 of title 12, Code of The Secretary of the Treasury, Chairman of term ‘‘personal identification card’’ means Federal Regulations, as of October 11, 2017, the Board of Governors of the Federal Re- an identification document issued by a State or if a successor regulation is in effect as of serve System, and the Director of the Fed- or local government to an individual solely the date of the enactment of this section, eral Insurance Office shall submit to the for the purpose of identification of that indi- such term or any successor term contained Comptroller General of the United States the vidual. in such successor regulation) under any risk- report described in subparagraph (A) for re- (10) PERSONAL INFORMATION.—The term based capital requirement if such exposure is view. ‘‘personal information’’ means the informa- an HVCRE ADC loan. (4) REPORT ON INCREASE IN TRANS- tion displayed on or electronically encoded ‘‘(b) HVCRE ADC LOAN DEFINED.—For pur- PARENCY.—Not later than 180 days after the on a driver’s license or personal identifica- poses of this section and with respect to a date of enactment of this Act, the Chairman tion card that is reasonably necessary to ful- depository institution, the term ‘HVCRE of the Board of Governors of the Federal Re- fill the purpose and uses permitted by sub- ADC loan’— serve System and the Secretary of the Treas- section (b). ‘‘(1) means a credit facility secured by land ury, or their designees, shall submit to Con- (11) SCAN.—The term ‘‘scan’’ means the act or improved real property that, prior to gress a report and provide testimony to Con- of using a device or software to decipher, in being reclassified by the depository institu- gress on the efforts of the Chairman and the an electronically readable format, personal tion as a non-HVCRE ADC loan pursuant to Secretary to increase transparency at meet- information displayed on or electronically subsection (d)— ings of the International Association of In- encoded on a driver’s license or personal ‘‘(A) primarily finances, has financed, or surance Supervisors. identification card. refinances the acquisition, development, or SEC. 212. BUDGET TRANSPARENCY FOR THE (12) STATE.—The term ‘‘State’’ means any construction of real property; NCUA. State of the United States, the District of ‘‘(B) has the purpose of providing financing Section 209(b) of the Federal Credit Union Columbia, the Commonwealth of Puerto to acquire, develop, or improve such real Act (12 U.S.C. 1789(b)) is amended— Rico, and any other commonwealth, posses- property into income-producing real prop- (1) by redesignating paragraphs (1) and (2) sion, or territory of the United States. erty; and as paragraphs (2) and (3), respectively; (b) USE OF A DRIVER’S LICENSE OR PER- ‘‘(C) is dependent upon future income or (2) by inserting before paragraph (2), as so SONAL IDENTIFICATION CARD.— sales proceeds from, or refinancing of, such redesignated, the following: (1) IN GENERAL.—When an individual initi- real property for the repayment of such cred- ‘‘(1) on an annual basis and prior to the ates a request through an online service to it facility; submission of the detailed business-type open an account with a financial institution ‘‘(2) does not include a credit facility fi- budget required under paragraph (2)— or obtain a financial product or service from nancing— ‘‘(A) make publicly available and publish a financial institution, the financial institu- ‘‘(A) the acquisition, development, or con- in the Federal Register a draft of the de- tion may record personal information from a struction of properties that are— tailed business-type budget; and scan of the driver’s license or personal iden- ‘‘(i) one- to four-family residential prop- ‘‘(B) hold a public hearing, with public no- tification card of the individual, or make a erties; tice provided of the hearing, during which copy or receive an image of the driver’s li- ‘‘(ii) real property that would qualify as an the public may submit comments on the cense or personal identification card of the investment in community development; or draft of the detailed business-type budget;’’; individual, and store or retain such informa- ‘‘(iii) agricultural land; and tion in any electronic format for the pur- ‘‘(B) the acquisition or refinance of exist- (3) in paragraph (2), as so redesignated— poses described in paragraph (2). ing income-producing real property secured (A) by inserting ‘‘detailed’’ after ‘‘submit (2) USES OF INFORMATION.—Except as re- by a mortgage on such property, if the cash a’’; and quired to comply with Federal bank secrecy flow being generated by the real property is (B) by inserting ‘‘, which shall address any laws, a financial institution may only use sufficient to support the debt service and ex- comment submitted by the public under the information obtained under paragraph penses of the real property, in accordance paragraph (1)(B)’’ after ‘‘Control Act’’. (1)— with the institution’s applicable loan under- SEC. 213. MAKING ONLINE BANKING INITIATION (A) to verify the authenticity of the driv- writing criteria for permanent financings; LEGAL AND EASY. er’s license or personal identification card; ‘‘(C) improvements to existing income-pro- (a) DEFINITIONS.—In this section: (B) to verify the identity of the individual; ducing improved real property secured by a (1) AFFILIATE.—The term ‘‘affiliate’’ has and mortgage on such property, if the cash flow the meaning given the term in section 2 of (C) to comply with a legal requirement to being generated by the real property is suffi- the Bank Holding Company Act of 1956 (12 record, retain, or transmit the personal in- cient to support the debt service and ex- U.S.C. 1841). formation in connection with opening an ac- penses of the real property, in accordance (2) DRIVER’S LICENSE.—The term ‘‘driver’s count or obtaining a financial product or with the institution’s applicable loan under- license’’ means a license issued by a State to service. writing criteria for permanent financings; or an individual that authorizes the individual (3) DELETION OF IMAGE.—A financial insti- ‘‘(D) commercial real property projects in to operate a motor vehicle on public streets, tution that makes a copy or receives an which— roads, or highways. image of a driver’s license or personal identi- ‘‘(i) the loan-to-value ratio is less than or (3) FEDERAL BANK SECRECY LAWS.—The fication card of an individual in accordance equal to the applicable maximum super- term ‘‘Federal bank secrecy laws’’ means— with paragraphs (1) and (2) shall, after using visory loan-to-value ratio as determined by (A) section 21 of the Federal Deposit Insur- the image for the purposes described in para- the appropriate Federal banking agency; ance Act (12 U.S.C. 1829b); graph (2), permanently delete— ‘‘(ii) the borrower has contributed capital (B) section 123 of Public Law 91–508 (12 (A) any image of the driver’s license or per- of at least 15 percent of the real property’s U.S.C. 1953); and sonal identification card, as applicable; and appraised, ‘as completed’ value to the (C) subchapter II of chapter 53 of title 31, (B) any copy of any such image. project in the form of— United States Code. (4) DISCLOSURE OF PERSONAL INFORMA- ‘‘(I) cash; (4) FINANCIAL INSTITUTION.—The term ‘‘fi- TION.—Nothing in this section shall be con- ‘‘(II) unencumbered readily marketable as- nancial institution’’ means— strued to amend, modify, or otherwise affect sets; (A) an insured depository institution; any State or Federal law that governs a fi- ‘‘(III) paid development expenses out-of- (B) an insured credit union; or nancial institution’s disclosure and security pocket; or

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‘‘(IV) contributed real property or im- (c) EFFICIENCY.— section 552a of title 5, United States Code, provements; and (1) RELIANCE ON EXISTING METHODS.—The shall prevent the use of electronic consent ‘‘(iii) the borrower contributed the min- Commissioner shall evaluate the feasibility for purposes of this subsection or for use in imum amount of capital described under of making modifications to any database any other consent based verification under clause (ii) before the depository institution that is in existence as of the date of enact- the discretion of the Commissioner. advances funds (other than the advance of a ment of this Act or a similar resource such (g) COMPLIANCE AND ENFORCEMENT.— nominal sum made in order to secure the de- that the database or resource— (1) AUDITS AND MONITORING.—The Commis- pository institution’s lien against the real (A) is reasonably designed to effectuate the sioner may— property) under the credit facility, and such purpose of this section; and (A) conduct audits and monitoring to— minimum amount of capital contributed by (B) meets the requirements of subsection (i) ensure proper use by permitted entities the borrower is contractually required to re- (d). of the database or similar resource described main in the project until the credit facility (2) EXECUTION.—The Commissioner shall in subsection (c); and has been reclassified by the depository insti- make the modifications necessary to any (ii) deter fraud and misuse by permitted tution as a non-HVCRE ADC loan under sub- database that is in existence as of the date of entities with respect to the database or simi- section (d); enactment of this Act or similar resource, or lar resource described in subsection (c); and ‘‘(3) does not include any loan made prior develop a database or similar resource, to ef- to January 1, 2015; and fectuate the requirements described in para- (B) terminate services for any permitted ‘‘(4) does not include a credit facility re- graph (1). entity that prevents or refuses to allow the classified as a non-HVCRE ADC loan under (d) PROTECTION OF VULNERABLE CON- Commissioner to carry out the activities de- subsection (d). SUMERS.—The database or similar resource scribed in subparagraph (A). ‘‘(c) VALUE OF CONTRIBUTED REAL PROP- described in subsection (c) shall— (2) ENFORCEMENT.— ERTY.—For purposes of this section, the (1) compare fraud protection data provided (A) IN GENERAL.—Notwithstanding any value of any real property contributed by a in an inquiry by a permitted entity against other provision of law, including the matter borrower as a capital contribution shall be such information maintained by the Com- preceding paragraph (1) of section 505(a) of the appraised value of the property as deter- missioner in order to confirm (or not con- the Gramm-Leach-Bliley Act (15 U.S.C. mined under standards prescribed pursuant firm) the validity of the information pro- 6805(a)), any violation of this section and any to section 1110 of the Financial Institutions vided; certification made under this section shall Reform, Recovery, and Enforcement Act of (2) be scalable and accommodate reason- be enforced in accordance with paragraphs 1989 (12 U.S.C. 3339), in connection with the ably anticipated volumes of verification re- (1) through (7) of such section 505(a) by the extension of the credit facility or loan to quests from permitted entities with commer- agencies described in those paragraphs. such borrower. cially reasonable uptime and availability; (B) RELEVANT INFORMATION.—Upon dis- ‘‘(d) RECLASSIFICATION AS A NON-HVRCE and covery by the Commissioner, pursuant to an ADC LOAN.—For purposes of this section and (3) allow permitted entities to submit— audit described in paragraph (1), of any vio- with respect to a credit facility and a deposi- (A) 1 or more individual requests electroni- lation of this section or any certification tory institution, upon— cally for real-time machine-to-machine (or made under this section, the Commissioner ‘‘(1) the substantial completion of the de- similar functionality) accurate responses; shall forward any relevant information per- velopment or construction of the real prop- and taining to that violation to the appropriate erty being financed by the credit facility; (B) multiple requests electronically, such agency described in subparagraph (A) for and as those provided in a batch format, for ac- evaluation by the agency for purposes of en- ‘‘(2) cash flow being generated by the real curate electronic responses within a reason- forcing this section. property being sufficient to support the debt able period of time from submission, not to service and expenses of the real property, exceed 24 hours. (h) RECOVERY OF COSTS.— in accordance with the institution’s applica- (e) CERTIFICATION REQUIRED.—Before pro- (1) IN GENERAL.— ble loan underwriting criteria for permanent viding confirmation of fraud protection data (A) IN GENERAL.—Amounts obligated to financings, the credit facility may be reclas- to a permitted entity, the Commissioner carry out this section shall be fully recov- sified by the depository institution as a Non- shall ensure that the Commissioner has a ered from the users of the database or HVCRE ADC loan. certification from the permitted entity that verification system by way of advances, re- ‘‘(e) EXISTING AUTHORITIES.—Nothing in is dated not more than 2 years before the imbursements, user fees, or other recoveries this section shall limit the supervisory, reg- date on which that confirmation is provided as determined by the Commissioner. The ulatory, or enforcement authority of an ap- that includes the following declarations: funds recovered under this paragraph shall propriate Federal banking agency to further (1) The entity is a permitted entity. be deposited as an offsetting collection to the safe and sound operation of an institu- (2) The entity is in compliance with this the account providing appropriations for the tion under the supervision of the appropriate section. Social Security Administration, to be used Federal banking agency.’’. (3) The entity is, and will remain, in com- for the administration of this section with- SEC. 215. REDUCING IDENTITY FRAUD. pliance with its privacy and data security re- out fiscal year limitation. (a) PURPOSE.—The purpose of this section quirements, as described in title V of the (B) PRICES FIXED BY COMMISSIONER.—The is to reduce the prevalence of synthetic iden- Gramm-Leach-Bliley Act (15 U.S.C. 6801 et Commissioner shall establish the amount to tity fraud, which disproportionally affects seq.), with respect to information the entity be paid by the users under this paragraph, vulnerable populations, such as minors and receives from the Commissioner pursuant to including the costs of any services or work recent immigrants, by facilitating the vali- this section. performed, such as any appropriate upgrades, dation by permitted entities of fraud protec- (4) The entity will retain sufficient records maintenance, and associated direct and indi- tion data, pursuant to electronically re- to demonstrate its compliance with its cer- rect administrative costs, in support of car- ceived consumer consent, through use of a tification and this section for a period of not rying out the purposes described in this sec- database maintained by the Commissioner. less than 2 years. tion, by reimbursement or in advance as de- (b) DEFINITIONS.—In this section: (f) CONSUMER CONSENT.— termined by the Commissioner. The amount (1) COMMISSIONER.—The term ‘‘Commis- (1) IN GENERAL.—Notwithstanding any of such prices shall be periodically adjusted sioner’’ means the Commissioner of the So- other provision of law or regulation, a per- by the Commissioner to ensure that amounts cial Security Administration. mitted entity may submit a request to the collected are sufficient to fully offset the (2) FINANCIAL INSTITUTION.—The term ‘‘fi- database or similar resource described in cost of the administration of this section. nancial institution’’ has the meaning given subsection (c) only— (2) INITIAL DEVELOPMENT.—The Commis- the term in section 509 of the Gramm-Leach- (A) pursuant to the written, including elec- sioner shall not begin development of a Bliley Act (15 U.S.C. 6809). tronic, consent received by a permitted enti- verification system to carry out this section (3) FRAUD PROTECTION DATA.—The term ty from the individual who is the subject of until the Commissioner determines that ‘‘fraud protection data’’ means a combina- the request; and amounts equal to at least 50 percent of pro- tion of the following information with re- (B) in connection with a credit transaction gram start-up costs have been collected spect to an individual: or any circumstance described in section 604 under paragraph (1). (A) The name of the individual (including of the Fair Credit Reporting Act (15 U.S.C. (3) EXISTING RESOURCES.—The Commis- the first name and any family forename or 1681b). sioner may use funds designated for informa- surname of the individual). (2) ELECTRONIC CONSENT REQUIREMENTS.— tion technology modernization to carry out (B) The social security number of the indi- For a permitted entity to use the consent of this section. vidual. an individual received electronically pursu- (4) ANNUAL REPORT.—The Commissioner (C) The date of birth (including the month, ant to paragraph (1)(A), the permitted entity shall annually submit to the Committee on day, and year) of the individual. must obtain the individual’s electronic sig- Ways and Means of the House of Representa- (4) PERMITTED ENTITY.—The term ‘‘per- nature, as defined in section 106 of the Elec- tives and the Committee on Finance of the mitted entity’’ means a financial institution tronic Signatures in Global and National Senate a report on the amount of indirect or a service provider, subsidiary, affiliate, Commerce Act (15 U.S.C. 7006). costs to the Social Security Administration agent, subcontractor, or assignee of a finan- (3) EFFECTUATING ELECTRONIC CONSENT.—No arising as a result of the implementation of cial institution. provision of law or requirement, including this section.

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SEC. 216. TREASURY REPORT ON RISKS OF ‘‘(ii) in the case of a request that is by the financial obligation owed for the ac- CYBER THREATS. mail, 3 business days after receiving the re- count, contract, or negotiable instrument. Not later than 1 year after the date of en- quest directly from the consumer. For purposes of this subparagraph, ‘review- actment of this Act, the Secretary of the ‘‘(B) CONFIRMATION AND ADDITIONAL INFOR- ing the account’ includes activities related Treasury shall submit to the Committee on MATION.—Not later than 5 business days after to account maintenance, monitoring, credit Banking, Housing, and Urban Affairs of the placing a security freeze under subparagraph line increases, and account upgrades and en- Senate and the Committee on Financial (A), a consumer reporting agency shall— hancements. Services of the House of Representatives a ‘‘(i) send confirmation of the placement to ‘‘(B) Any Federal, State, or local agency, report on the risks of cyber threats to finan- the consumer; and law enforcement agency, trial court, or pri- cial institutions and capital markets in the ‘‘(ii) inform the consumer of— vate collection agency acting pursuant to a United States, including— ‘‘(I) the process by which the consumer court order, warrant, or subpoena. (1) an assessment of the material risks of may remove the security freeze, including a ‘‘(C) A child support agency acting pursu- cyber threats to financial institutions and mechanism to authenticate the consumer; ant to part D of title IV of the Social Secu- capital markets in the United States; and rity Act (42 U.S.C. 651 et seq.). (2) the impact and potential effects of ma- ‘‘(II) the consumer’s right described in sec- ‘‘(D) A Federal agency or a State or its terial cyber attacks on financial institutions tion 615(d)(1)(D). agents or assigns acting to investigate fraud and capital markets in the United States; ‘‘(C) NOTICE TO THIRD PARTIES.—A con- or acting to investigate or collect delinquent (3) an analysis of how the appropriate Fed- sumer reporting agency may advise a third taxes or unpaid court orders or to fulfill any eral banking agencies and the Securities and party that a security freeze has been placed of its other statutory responsibilities, pro- Exchange Commission are addressing the with respect to a consumer under subpara- vided such responsibilities are consistent material risks of cyber threats described in graph (A). with a permissible purpose under section 604. paragraph (1), including— ‘‘(3) REMOVAL OF SECURITY FREEZE.— ‘‘(E) By a person using credit information (A) how the appropriate Federal banking ‘‘(A) IN GENERAL.—A consumer reporting for the purposes described under section agencies and the Securities and Exchange agency shall remove a security freeze placed 604(c). Commission are assessing those threats; on the consumer report of a consumer only ‘‘(F) Any person or entity administering a (B) how the appropriate Federal banking in the following cases: credit file monitoring subscription or similar agencies and the Securities and Exchange ‘‘(i) Upon the direct request of the con- service to which the consumer has sub- Commission are assessing the cyber sumer. scribed. vulnerabilities and preparedness of financial ‘‘(ii) The security freeze was placed due to ‘‘(G) Any person or entity for the purpose institutions; a material misrepresentation of fact by the of providing a consumer with a copy of the (C) coordination amongst the appropriate consumer. consumer’s consumer report or credit score, Federal banking agencies and the Securities ‘‘(B) NOTICE IF REMOVAL NOT BY REQUEST.— upon the request of the consumer. and Exchange Commission, and their coordi- If a consumer reporting agency removes a se- ‘‘(H) Any person using the information in nation with other government agencies (in- curity freeze under subparagraph (A)(ii), the connection with the underwriting of insur- cluding with respect to regulations, exami- consumer reporting agency shall notify the ance. consumer in writing prior to removing the nations, lexicon, duplication, and other regu- ‘‘(I) Any person using the information for security freeze. latory tools); and employment, tenant, or background screen- ‘‘(C) REMOVAL OF SECURITY FREEZE BY CON- (D) areas for improvement; and ing purposes. SUMER REQUEST.—Except as provided in sub- (4) a recommendation of whether any ap- ‘‘(J) Any person using the information for paragraph (A)(ii), a security freeze shall re- propriate Federal banking agency or the Se- assessing, verifying, or authenticating a con- main in place until the consumer directly re- curities and Exchange Commission needs ad- sumer’s identity for purposes other than the quests that the security freeze be removed. ditional legal authorities or resources to granting of credit, or for investigating or Upon receiving a direct request from a con- adequately assess and address the material preventing actual or potential fraud. sumer that a consumer reporting agency re- risks of cyber threats described in paragraph ‘‘(5) NOTICE OF RIGHTS.—At any time a con- move a security freeze, and upon receiving (1), given the analysis required by paragraph sumer is required to receive a summary of proper identification from the consumer, the (3). consumer reporting agency shall, free of rights required under section 609, the fol- SEC. 217. DISCRETIONARY SURPLUS FUNDS. charge, remove the security freeze not later lowing notice shall be included: Section 7(a)(3)(A) of the Federal Reserve than— ‘‘ ‘CONSUMERS HAVE THE RIGHT TO OBTAIN A Act (12 U.S.C. 289(a)(3)(A)) is amended by ‘‘(i) in the case of a request that is by toll- SECURITY FREEZE striking ‘‘$7,500,000,000’’ and inserting free telephone or secure electronic means, 1 ‘‘ ‘You have a right to place a ‘‘security ‘‘$6,825,000,000’’. hour after receiving the request for removal; freeze’’ on your credit report, which will pro- TITLE III—PROTECTIONS FOR VETERANS, or hibit a consumer reporting agency from re- CONSUMERS, AND HOMEOWNERS ‘‘(ii) in the case of a request that is by leasing information in your credit report SEC. 301. PROTECTING CONSUMERS’ CREDIT. mail, 3 business days after receiving the re- without your express authorization. The se- (a) IN GENERAL.—Section 605A of the Fair quest for removal. curity freeze is designed to prevent credit, Credit Reporting Act (15 U.S.C. 1681c–1) is ‘‘(D) THIRD-PARTY REQUESTS.—If a third loans, and services from being approved in amended— party requests access to a consumer report your name without your consent. However, (1) in subsection (a)(1)(A), by striking ‘‘90 of a consumer with respect to which a secu- you should be aware that using a security days’’ and inserting ‘‘1 year’’; and rity freeze is in effect, where such request is freeze to take control over who gets access (2) by adding at the end the following: in connection with an application for credit, to the personal and financial information in ‘‘(i) NATIONAL SECURITY FREEZE.— and the consumer does not allow such con- your credit report may delay, interfere with, ‘‘(1) DEFINITIONS.—For purposes of this sub- sumer report to be accessed, the third party section: may treat the application as incomplete. or prohibit the timely approval of any subse- quent request or application you make re- ‘‘(A) The term ‘consumer reporting agency’ ‘‘(E) TEMPORARY REMOVAL OF SECURITY garding a new loan, credit, mortgage, or any means a consumer reporting agency de- FREEZE.—Upon receiving a direct request scribed in section 603(p). from a consumer under subparagraph (A)(i), other account involving the extension of ‘‘(B) The term ‘proper identification’ has if the consumer requests a temporary re- credit. the meaning of such term as used under sec- moval of a security freeze, the consumer re- ‘‘ ‘As an alternative to a security freeze, tion 610. porting agency shall, in accordance with sub- you have the right to place an initial or ex- ‘‘(C) The term ‘security freeze’ means a re- paragraph (C), remove the security freeze for tended fraud alert on your credit file at no striction that prohibits a consumer report- the period of time specified by the consumer. cost. An initial fraud alert is a 1-year alert ing agency from disclosing the contents of a ‘‘(4) EXCEPTIONS.—A security freeze shall that is placed on a consumer’s credit file. consumer report that is subject to such secu- not apply to the making of a consumer re- Upon seeing a fraud alert display on a con- rity freeze to any person requesting the con- port for use of the following: sumer’s credit file, a business is required to sumer report. ‘‘(A) A person or entity, or a subsidiary, af- take steps to verify the consumer’s identity ‘‘(2) PLACEMENT OF SECURITY FREEZE.— filiate, or agent of that person or entity, or before extending new credit. If you are a vic- ‘‘(A) IN GENERAL.—Upon receiving a direct an assignee of a financial obligation owed by tim of identity theft, you are entitled to an request from a consumer that a consumer re- the consumer to that person or entity, or a extended fraud alert, which is a fraud alert porting agency place a security freeze, and prospective assignee of a financial obligation lasting 7 years. upon receiving proper identification from owed by the consumer to that person or enti- ‘‘ ‘A security freeze does not apply to a per- the consumer, the consumer reporting agen- ty in conjunction with the proposed purchase son or entity, or its affiliates, or collection cy shall, free of charge, place the security of the financial obligation, with which the agencies acting on behalf of the person or en- freeze not later than— consumer has or had prior to assignment an tity, with which you have an existing ac- ‘‘(i) in the case of a request that is by toll- account or contract including a demand de- count that requests information in your free telephone or secure electronic means, 1 posit account, or to whom the consumer credit report for the purposes of reviewing or business day after receiving the request di- issued a negotiable instrument, for the pur- collecting the account. Reviewing the ac- rectly from the consumer; or poses of reviewing the account or collecting count includes activities related to account

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maintenance, monitoring, credit line in- a county probation department or its agent ‘‘(C) REMOVAL OF FREEZE BY REQUEST.—Ex- creases, and account upgrades and enhance- or designee, certifying that the protected cept as provided in subparagraph (A)(iii), a ments.’. consumer is in a foster care setting under its security freeze shall remain in place until a ‘‘(6) WEBPAGE.— jurisdiction. protected consumer’s representative or pro- ‘‘(A) CONSUMER REPORTING AGENCIES.—A ‘‘(G) The term ‘sufficient proof of identi- tected consumer described in subparagraph consumer reporting agency shall establish a fication’ means information or documenta- (A)(ii) directly requests that the security webpage that— tion that identifies a protected consumer freeze be removed. Upon receiving a direct ‘‘(i) allows a consumer to request a secu- and a protected consumer’s representative request from the protected consumer’s rep- rity freeze; and includes— resentative or protected consumer described ‘‘(ii) allows a consumer to request an ini- ‘‘(i) a social security number or a copy of in subparagraph (A)(ii) that a consumer re- tial fraud alert; a social security card issued by the Social porting agency remove a security freeze, and ‘‘(iii) allows a consumer to request an ex- Security Administration; upon receiving sufficient proof of identifica- tended fraud alert; ‘‘(ii) a certified or official copy of a birth tion and sufficient proof of authority, the ‘‘(iv) allows a consumer to request an ac- certificate issued by the entity authorized to consumer reporting agency shall, free of tive duty fraud alert; issue the birth certificate; or charge, remove the security freeze not later ‘‘(v) allows a consumer to opt-out of the ‘‘(iii) a copy of a driver’s license, an identi- than— use of information in a consumer report to fication card issued by the motor vehicle ad- ‘‘(i) in the case of a request that is by toll- send the consumer a solicitation of credit or ministration, or any other government free telephone or secure electronic means, 1 insurance, in accordance with section 615(d); issued identification. hour after receiving the request for removal; and ‘‘(2) PLACEMENT OF SECURITY FREEZE FOR A or ‘‘(vi) shall not be the only mechanism by PROTECTED CONSUMER.— ‘‘(ii) in the case of a request that is by which a consumer may request a security ‘‘(A) IN GENERAL.—Upon receiving a direct mail, 3 business days after receiving the re- freeze. request from a protected consumer’s rep- quest for removal. ‘‘(B) FTC.—The Federal Trade Commission resentative that a consumer reporting agen- ‘‘(D) TEMPORARY REMOVAL OF SECURITY shall establish a single webpage that in- cy place a security freeze, and upon receiving FREEZE.—Upon receiving a direct request cludes a link to each webpage established sufficient proof of identification and suffi- from a protected consumer or a protected under subparagraph (A) within the Federal cient proof of authority, the consumer re- consumer’s representative under subpara- Trade Commission’s website porting agency shall, free of charge, place graph (A)(i), if the protected consumer or www.Identitytheft.gov, or a successor the security freeze not later than— protected consumer’s representative requests website. ‘‘(i) in the case of a request that is by toll- a temporary removal of a security freeze, the ‘‘(j) NATIONAL PROTECTION FOR FILES AND free telephone or secure electronic means, 1 consumer reporting agency shall, in accord- CREDIT RECORDS OF PROTECTED CONSUMERS.— business day after receiving the request di- ance with subparagraph (C), remove the se- ‘‘(1) DEFINITIONS.—As used in this sub- rectly from the protected consumer’s rep- curity freeze for the period of time specified section: resentative; or by the protected consumer or protected con- ‘‘(A) The term ‘consumer reporting agency’ ‘‘(ii) in the case of a request that is by sumer’s representative.’’. means a consumer reporting agency de- mail, 3 business days after receiving the re- (b) CONFORMING AMENDMENT.—Section scribed in section 603(p). quest directly from the protected consumer’s 625(b)(1) of the Fair Credit Reporting Act (15 ‘‘(B) The term ‘protected consumer’ means representative. U.S.C. 1681t(b)(1)) is amended— an individual who is— ‘‘(B) CONFIRMATION AND ADDITIONAL INFOR- (1) in subparagraph (H), by striking ‘‘or’’ at ‘‘(i) under the age of 16 years at the time a MATION.—Not later than 5 business days after the end; and request for the placement of a security freeze placing a security freeze under subparagraph (2) by adding at the end the following: is made; or (A), a consumer reporting agency shall— ‘‘(J) subsections (i) and (j) of section 605A ‘‘(ii) an incapacitated person or a protected ‘‘(i) send confirmation of the placement to relating to security freezes; or’’. person for whom a guardian or conservator the protected consumer’s representative; and (c) EFFECTIVE DATE.—The amendments has been appointed. ‘‘(ii) inform the protected consumer’s rep- made by this section shall take effect on the ‘‘(C) The term ‘protected consumer’s rep- resentative of the process by which the pro- resentative’ means a person who provides to tected consumer may remove the security date that is 120 days after the date of enact- a consumer reporting agency sufficient proof freeze, including a mechanism to authen- ment of this Act. of authority to act on behalf of a protected ticate the protected consumer’s representa- SEC. 302. PROTECTING VETERANS’ CREDIT. consumer. tive. (a) PURPOSES.—The purposes of this section ‘‘(D) The term ‘record’ means a compila- ‘‘(C) CREATION OF FILE.—If a consumer re- are— tion of information that— porting agency does not have a file per- (1) to rectify problematic reporting of med- ‘‘(i) identifies a protected consumer; taining to a protected consumer when the ical debt included in a consumer report of a ‘‘(ii) is created by a consumer reporting consumer reporting agency receives a direct veteran due to inappropriate or delayed pay- agency solely for the purpose of complying request under subparagraph (A), the con- ment for hospital care, medical services, or with this subsection; and sumer reporting agency shall create a record extended care services provided in a non-De- ‘‘(iii) may not be created or used to con- for the protected consumer. partment of Veterans Affairs facility under sider the protected consumer’s credit worthi- ‘‘(3) PROHIBITION ON RELEASE OF RECORD OR the laws administered by the Secretary of ness, credit standing, credit capacity, char- FILE OF PROTECTED CONSUMER.—After a secu- Veterans Affairs; and acter, general reputation, personal charac- rity freeze has been placed under paragraph (2) to clarify the process of debt collection teristics, or mode of living. (2)(A), and unless the security freeze is re- for such medical debt. ‘‘(E) The term ‘security freeze’ means a re- moved in accordance with this subsection, a (b) AMENDMENTS TO FAIR CREDIT REPORT- striction that prohibits a consumer report- consumer reporting agency may not release ING ACT.— ing agency from disclosing the contents of a the protected consumer’s consumer report, (1) VETERAN’S MEDICAL DEBT DEFINED.—Sec- consumer report that is the subject of such any information derived from the protected tion 603 of the Fair Credit Reporting Act (15 security freeze or, in the case of a protected consumer’s consumer report, or any record U.S.C. 1681a) is amended by adding at the end consumer for whom the consumer reporting created for the protected consumer. the following: agency does not have a file, a record that is ‘‘(4) REMOVAL OF A PROTECTED CONSUMER ‘‘(z) VETERAN.—The term ‘veteran’ has the subject to such security freeze to any person SECURITY FREEZE.— meaning given the term in section 101 of requesting the consumer report for the pur- ‘‘(A) IN GENERAL.—A consumer reporting title 38, United States Code. pose of opening a new account involving the agency shall remove a security freeze placed ‘‘(aa) VETERAN’S MEDICAL DEBT.—The term extension of credit. on the consumer report of a protected con- ‘veteran’s medical debt’— ‘‘(F) The term ‘sufficient proof of author- sumer only in the following cases: ‘‘(1) means a medical collection debt of a ity’ means documentation that shows a pro- ‘‘(i) Upon the direct request of the pro- veteran owed to a non-Department of Vet- tected consumer’s representative has author- tected consumer’s representative. erans Affairs health care provider that was ity to act on behalf of a protected consumer ‘‘(ii) Upon the direct request of the pro- submitted to the Department for payment and includes— tected consumer, if the protected consumer for health care authorized by the Depart- ‘‘(i) an order issued by a court of law; is not under the age of 16 years at the time ment of Veterans Affairs; and ‘‘(ii) a lawfully executed and valid power of of the request. ‘‘(2) includes medical collection debt that attorney; ‘‘(iii) The security freeze was placed due to the Department of Veterans Affairs has ‘‘(iii) a document issued by a Federal, a material misrepresentation of fact by the wrongfully charged a veteran.’’. State, or local government agency in the protected consumer’s representative. (2) EXCLUSION FOR VETERAN’S MEDICAL United States showing proof of parentage, ‘‘(B) NOTICE IF REMOVAL NOT BY REQUEST.— DEBT.—Section 605(a) of the Fair Credit Re- including a birth certificate; or If a consumer reporting agency removes a se- porting Act (15 U.S.C. 1681c(a)) is amended by ‘‘(iv) with respect to a protected consumer curity freeze under subparagraph (A)(iii), the adding at the end the following: who has been placed in a foster care setting, consumer reporting agency shall notify the ‘‘(7) With respect to a consumer reporting a written communication from a county wel- protected consumer’s representative in writ- agency described in section 603(p), any infor- fare department or its agent or designee, or ing prior to removing the security freeze. mation related to a veteran’s medical debt if

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1556 CONGRESSIONAL RECORD — SENATE March 8, 2018 the date on which the hospital care, medical (B) access to verification information in a by subchapter II of chapter 53 of title 31, services, or extended care services was ren- secure electronic format; United States Code (commonly known as the dered relating to the debt antedates the re- (C) timely access to verification informa- ‘‘Bank Secrecy Act’’); port by less than 1 year if the consumer re- tion; and (B) the term ‘‘broker-dealer’’ means a porting agency has actual knowledge that (D) any other features that would promote broker and a dealer, as those terms are de- the information is related to a veteran’s the efficient, timely, and secure delivery of fined in section 3(a) of the Securities Ex- medical debt and the consumer reporting information that consumer reporting agen- change Act of 1934 (15 U.S.C. 78c(a)); agency is in compliance with its obligation cies could use to verify whether a debt is a (C) the term ‘‘covered agency’’ means— under section 302(c)(5) of the Economic veteran’s medical debt. (i) a State financial regulatory agency, in- Growth, Regulatory Relief, and Consumer (4) STAKEHOLDER INPUT.—Prior to estab- cluding a State securities or law enforce- Protection Act. lishing the database for verification under ment authority and a State insurance regu- ‘‘(8) With respect to a consumer reporting paragraph (2), the Secretary of Veterans Af- lator; agency described in section 603(p), any infor- fairs shall publish in the Federal Register a (ii) each of the Federal agencies rep- mation related to a fully paid or settled vet- notice and request for comment that solicits resented in the membership of the Financial eran’s medical debt that had been character- input from consumer reporting agencies and Institutions Examination Council estab- ized as delinquent, charged off, or in collec- other stakeholders. lished under section 1004 of the Federal Fi- tion if the consumer reporting agency has (5) VERIFICATION.—Provided the database nancial Institutions Examination Council actual knowledge that the information is re- established under paragraph (2) is fully func- Act of 1978 (12 U.S.C. 3303); lated to a veteran’s medical debt and the tional and the data available to consumer re- (iii) a securities association registered consumer reporting agency is in compliance porting agencies, a consumer reporting agen- under section 15A of the Securities Exchange with its obligation under section 302(c)(5) of cy shall use the database as a means to iden- Act of 1934 (15 U.S.C. 78o–3); the Economic Growth, Regulatory Relief, tify a veteran’s medical debt pursuant to (iv) the Securities and Exchange Commis- and Consumer Protection Act.’’. paragraphs (7) and (8) of section 605(a) of the sion; (3) REMOVAL OF VETERAN’S MEDICAL DEBT Fair Credit Reporting Act (15 U.S.C. (v) a law enforcement agency; or FROM CONSUMER REPORT.—Section 611 of the 1681c(a)), as added by subsection (b)(2). (vi) a State or local agency responsible for Fair Credit Reporting Act (15 U.S.C. 1681i) is (d) CREDIT MONITORING.— administering adult protective service laws; amended— (1) IN GENERAL.—Section 605A of the Fair (D) the term ‘‘covered financial institu- (A) in subsection (a)(1)(A), by inserting Credit Reporting Act (15 U.S.C. 1681c–1), as tion’’ means— ‘‘and except as provided in subsection (g)’’ amended by section 301(a), is amended by (i) a credit union; after ‘‘subsection (f)’’; and adding at the end the following: (ii) a depository institution; (B) by adding at the end the following: ‘‘(k) CREDIT MONITORING.— (iii) an investment adviser; ‘‘(1) DEFINITIONS.—In this subsection: (iv) a broker-dealer; ‘‘(g) DISPUTE PROCESS FOR VETERAN’S MED- ‘‘(A) The term ‘active duty military con- (v) an insurance company; ICAL DEBT.— sumer’ includes a member of the National (vi) an insurance agency; or ‘‘(1) IN GENERAL.—With respect to a vet- Guard. (vii) a transfer agent; eran’s medical debt, the veteran may submit ‘‘(B) The term ‘National Guard’ has the (E) the term ‘‘credit union’’ has the mean- a notice described in paragraph (2), proof of meaning given the term in section 101(c) of ing given the term in section 2 of the Dodd- liability of the Department of Veterans Af- title 10, United States Code. Frank Wall Street Reform and Consumer fairs for payment of that debt, or docu- ‘‘(2) CREDIT MONITORING.—A consumer re- Protection Act (12 U.S.C. 5301); mentation that the Department of Veterans porting agency described in section 603(p) (F) the term ‘‘depository institution’’ has Affairs is in the process of making payment shall provide a free electronic credit moni- the meaning given the term in section 3(c) of for authorized hospital care, medical serv- toring service that, at a minimum, notifies a the Federal Deposit Insurance Act (12 U.S.C. ices, or extended care services rendered to a consumer of material additions or modifica- 1813(c)); consumer reporting agency or a reseller to tions to the file of the consumer at the con- (G) the term ‘‘exploitation’’ means the dispute the inclusion of that debt on a con- sumer reporting agency to any consumer fraudulent or otherwise illegal, unauthor- sumer report of the veteran. who provides to the consumer reporting ized, or improper act or process of an indi- ‘‘(2) NOTIFICATION TO VETERAN.—The De- agency— vidual, including a caregiver or a fiduciary, partment of Veterans Affairs shall submit to ‘‘(A) appropriate proof that the consumer that— a veteran a notice that the Department of is an active duty military consumer; and (i) uses the resources of a senior citizen for Veterans Affairs has assumed liability for ‘‘(B) contact information of the consumer. monetary or personal benefit, profit, or gain; part or all of a veteran’s medical debt. ‘‘(3) RULEMAKING.—Not later than 1 year or ‘‘(3) DELETION OF INFORMATION FROM FILE.— after the date of enactment of this sub- (ii) results in depriving a senior citizen of If a consumer reporting agency receives no- section, the Federal Trade Commission shall rightful access to or use of benefits, re- tice, proof of liability, or documentation promulgate regulations regarding the re- sources, belongings, or assets; under paragraph (1), the consumer reporting quirements of this subsection, which shall at (H) the term ‘‘insurance agency’’ means agency shall delete all information relating a minimum include— any business entity that sells, solicits, or ne- to the veteran’s medical debt from the file of ‘‘(A) a definition of an electronic credit gotiates insurance coverage; the veteran and notify the furnisher and the monitoring service and material additions or (I) the term ‘‘insurance company’’ has the veteran of that deletion.’’. modifications to the file of a consumer; and meaning given the term in section 2(a) of the (c) VERIFICATION OF VETERAN’S MEDICAL ‘‘(B) what constitutes appropriate proof. Investment Company Act of 1940 (15 U.S.C. DEBT.— 80a–2(a)); ‘‘(4) APPLICABILITY.— (1) DEFINITIONS.—For purposes of this sub- ‘‘(A) Sections 616 and 617 shall not apply to (J) the term ‘‘insurance producer’’ means section— any violation of this subsection. an individual who is required under State (A) the term ‘‘consumer reporting agency’’ ‘‘(B) This subsection shall be enforced ex- law to be licensed in order to sell, solicit, or means a consumer reporting agency de- clusively under section 621 by the Federal negotiate insurance coverage; scribed in section 603(p) of the Fair Credit agencies and Federal and State officials (K) the term ‘‘investment adviser’’ has the Reporting Act (15 U.S.C. 1681a(p)); and identified in that section.’’. meaning given the term in section 202(a) of (B) the terms ‘‘veteran’’ and ‘‘veteran’s the Investment Advisers Act of 1940 (15 (2) CONFORMING AMENDMENT.—Section medical debt’’ have the meanings given 625(b)(1) of the Fair Credit Reporting Act (15 U.S.C. 80b–2(a)); those terms in section 603 of the Fair Credit U.S.C. 1681t(b)(1)), as amended by section (L) the term ‘‘investment adviser rep- Reporting Act (15 U.S.C. 1681a), as added by 301(b), is amended by adding at the end the resentative’’ means an individual who— subsection (b)(1). following: (i) is employed by, or associated with, an (2) ESTABLISHMENT.—Not later than 1 year ‘‘(K) subsection (k) of section 605A, relat- investment adviser; and after the date of enactment of this Act, the ing to credit monitoring for active duty (ii) does not perform solely clerical or min- Secretary of Veterans Affairs shall establish military consumers, as defined in that sub- isterial acts; a database to allow consumer reporting section;’’. (M) the term ‘‘registered representative’’ agencies to verify whether a debt furnished (e) EFFECTIVE DATE.—The amendments means an individual who represents a to a consumer reporting agency is a vet- made by this section shall take effect on the broker-dealer in effecting or attempting to eran’s medical debt. date that is 1 year after the date of enact- effect a purchase or sale of securities; (3) DATABASE FEATURES.—The Secretary of ment of this Act. (N) the term ‘‘senior citizen’’ means an in- Veterans Affairs shall ensure that the data- SEC. 303. IMMUNITY FROM SUIT FOR DISCLO- dividual who is not younger than 65 years of base established under paragraph (2), to the SURE OF FINANCIAL EXPLOITATION age; extent permitted by law, provides consumer OF SENIOR CITIZENS. (O) the term ‘‘State’’ means each of the reporting agencies with— (a) IMMUNITY.— several States, the District of Columbia, and (A) sufficiently detailed and specific infor- (1) DEFINITIONS.—In this section— any territory or possession of the United mation to verify whether a debt being fur- (A) the term ‘‘Bank Secrecy Act officer’’ States; nished to the consumer reporting agency is a means an individual responsible for ensuring (P) the term ‘‘State insurance regulator’’ veteran’s medical debt; compliance with the requirements mandated has the meaning given the term in section

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1557 315 of the Gramm-Leach-Bliley Act (15 U.S.C. officials or law enforcement authorities, in- (2) by amending subsection (b) to read as 6735); cluding common signs that indicate the fi- follows: (Q) the term ‘‘State securities or law en- nancial exploitation of a senior citizen; ‘‘(b) CONTINUATION OF PRIOR REQUIRED PRO- forcement authority’’ has the meaning given (iii) discuss the need to protect the privacy GRAMS.— the term in section 24(f)(4) of the Securities and respect the integrity of each individual ‘‘(1) IN GENERAL.—Each public housing Exchange Act of 1934 (15 U.S.C. 78x(f)(4)); and customer of the covered financial institu- agency that was required to administer a (R) the term ‘‘transfer agent’’ has the tion; and local Family Self-Sufficiency program on meaning given the term in section 3(a) of the (iv) be appropriate to the job responsibil- the date of enactment of the Economic Securities Exchange Act of 1934 (15 U.S.C. ities of the individual attending the training. Growth, Regulatory Relief, and Consumer 78c(a)). (B) TIMING.—The training under paragraph Protection Act shall operate such local pro- (2) IMMUNITY FROM SUIT.— (1) shall be provided— gram for, at a minimum, the number of fami- (A) IMMUNITY FOR INDIVIDUALS.—An indi- (i) as soon as reasonably practicable; and lies the agency was required to serve on the vidual who has received the training de- (ii) with respect to an individual who be- date of enactment of such Act, subject only scribed in subsection (b) shall not be liable, gins employment, or becomes affiliated or to the availability under appropriations Acts including in any civil or administrative pro- associated, with a covered financial institu- of sufficient amounts for housing assistance ceeding, for disclosing the suspected exploi- tion after the date of enactment of this Act, and the requirements of paragraph (2). tation of a senior citizen to a covered agency not later than 1 year after the date on which ‘‘(2) REDUCTION.—The number of families if the individual, at the time of the disclo- the individual becomes employed by, or af- for which a public housing agency is required sure— filiated or associated with, the covered fi- to operate such local program under para- (i) served as a supervisor or in a compli- nancial institution in a position described in graph (1) shall be decreased by 1 for each ance or legal function (including as a Bank subparagraph (A), (B), or (C) of paragraph (1). family from any supported rental housing Secrecy Act officer) for, or, in the case of a (C) RECORDS.—A covered financial institu- program administered by such agency that, registered representative, investment ad- tion shall— after October 21, 1998, fulfills its obligations viser representative, or insurance producer, (i) maintain a record of each individual under the contract of participation. was affiliated or associated with, a covered who— ‘‘(3) EXCEPTION.—The Secretary shall not financial institution; and (I) is employed by, or affiliated or associ- require a public housing agency to carry out (ii) made the disclosure— ated with, the covered financial institution a mandatory program for a period of time upon the request of the public housing agen- (I) in good faith; and in a position described in subparagraph (A), cy and upon a determination by the Sec- (II) with reasonable care. (B), or (C) of paragraph (1); and retary that implementation is not feasible (B) IMMUNITY FOR COVERED FINANCIAL INSTI- (II) has completed the training under para- because of local circumstances, which may TUTIONS.—A covered financial institution graph (1), regardless of whether the training include— shall not be liable, including in any civil or was— ‘‘(A) lack of supportive services accessible administrative proceeding, for a disclosure (aa) provided by the covered financial in- to eligible families, which shall include in- made by an individual described in subpara- stitution or a third party selected by the sufficient availability of resources for pro- graph (A) if— covered financial institution; (i) the individual was employed by, or, in grams under title I of the Workforce Invest- (bb) completed before the individual was the case of a registered representative, insur- ment Act of 1998 (29 U.S.C. 2801 et seq.); employed by, or affiliated or associated with, ance producer, or investment adviser rep- ‘‘(B) lack of funding for reasonable admin- the covered financial institution; and resentative, affiliated or associated with, the istrative costs; (cc) completed before, on, or after the date covered financial institution at the time of ‘‘(C) lack of cooperation by other units of of enactment of this Act; and the disclosure; and State or local government; or (ii) upon request, provide a record de- (ii) before the time of the disclosure, each ‘‘(D) any other circumstances that the Sec- scribed in clause (i) to a covered agency with individual described in subsection (b)(1) re- retary may consider appropriate.’’; examination authority over the covered fi- ceived the training described in subsection (3) by striking subsection (i); nancial institution. (b). (4) by redesignating subsections (c), (d), (e), (c) RELATIONSHIP TO STATE LAW.—Nothing (C) RULE OF CONSTRUCTION.—Nothing in (f), (g), and (h) as subsections (d), (e), (f), (g), in this section shall be construed to preempt subparagraph (A) or (B) shall be construed to (h), and (i) respectively; limit the liability of an individual or a cov- or limit any provision of State law, except (5) by inserting after subsection (b), as ered financial institution in a civil action for only to the extent that subsection (a) pro- amended, the following: any act, omission, or fraud that is not a dis- vides a greater level of protection against li- ‘‘(c) ELIGIBILITY.— closure described in subparagraph (A). ability to an individual described in sub- ‘‘(1) ELIGIBLE FAMILIES.—A family is eligi- (b) TRAINING.— section (a)(2)(A) or to a covered financial in- ble to participate in a local Family Self-Suf- (1) IN GENERAL.—A covered financial insti- stitution described in subsection (a)(2)(B) ficiency program under this section if— tution or a third party selected by a covered than is provided under State law. ‘‘(A) at least 1 household member seeks to financial institution may provide the train- SEC. 304. RESTORATION OF THE PROTECTING become and remain employed in suitable em- ing described in paragraph (2)(A) to each offi- TENANTS AT FORECLOSURE ACT OF ployment or to increase earnings; and cer or employee of, or registered representa- 2009. ‘‘(B) the household member receives direct tive, insurance producer, or investment ad- (a) REPEAL OF SUNSET PROVISION.—Section assistance under section 8 or resides in a viser representative affiliated or associated 704 of the Protecting Tenants at Foreclosure unit assisted under section 8 or 9. with, the covered financial institution who— Act of 2009 (12 U.S.C. 5201 note; 12 U.S.C. 5220 ‘‘(2) ELIGIBLE ENTITIES.—The following en- (A) is described in subsection (a)(2)(A)(i); note; 42 U.S.C. 1437f note) is repealed. tities are eligible to administer a local Fam- (B) may come into contact with a senior (b) RESTORATION.—Sections 701 through 703 ily Self-Sufficiency program under this sec- citizen as a regular part of the professional of the Protecting Tenants at Foreclosure Act tion: duties of the individual; or of 2009, the provisions of law amended by ‘‘(A) A public housing agency admin- (C) may review or approve the financial such sections, and any regulations promul- istering housing assistance to or on behalf of documents, records, or transactions of a sen- gated pursuant to such sections, as were in an eligible family under section 8 or 9. ior citizen in connection with providing fi- effect on December 30, 2014, are restored and ‘‘(B) The owner or sponsor of a multifamily nancial services to a senior citizen. revived. property receiving project-based rental as- (2) CONTENT.— (c) EFFECTIVE DATE.—Subsections (a) and sistance under section 8, in accordance with (A) IN GENERAL.—The content of the train- (b) shall take effect on the date that is 30 the requirements under subsection (l).’’; ing that a covered financial institution or a days after the date of enactment of this Act. (6) in subsection (d), as so redesignated— third party selected by the covered financial SEC. 305. REMEDIATING LEAD AND ASBESTOS (A) in paragraph (1)— institution may provide under paragraph (1) HAZARDS. (i) by striking ‘‘public housing agency’’ the shall— Section 109(a)(1) of the Emergency Eco- first time it appears and inserting ‘‘eligible (i) be maintained by the covered financial nomic Stabilization Act of 2008 (12 U.S.C. entity’’; institution and made available to a covered 5219(a)(1)) is amended, in the second sen- (ii) in the first sentence, by striking ‘‘each agency with examination authority over the tence, by inserting ‘‘and to remediate lead leaseholder receiving assistance under the covered financial institution, upon request, and asbestos hazards in residential prop- certificate and voucher programs of the pub- except that a covered financial institution erties’’ before the period at the end. lic housing agency under section 8 or resid- shall not be required to maintain or make SEC. 306. FAMILY SELF-SUFFICIENCY PROGRAM. ing in public housing administered by the available such content with respect to any (a) IN GENERAL.—Section 23 of the United agency’’ and inserting ‘‘a household member individual who is no longer employed by, or States Housing Act of 1937 (42 U.S.C. 1437u) is of an eligible family’’; and affiliated or associated with, the covered fi- amended— (iii) by striking the third sentence and in- nancial institution; (1) in subsection (a)— serting the following: ‘‘Housing assistance (ii) instruct any individual attending the (A) by striking ‘‘public housing and’’; and may not be terminated as a consequence of training on how to identify and report the (B) by striking ‘‘the certificate and vouch- either successful completion of the contract suspected exploitation of a senior citizen in- er programs under section 8’’ and inserting of participation or failure to complete such ternally and, as appropriate, to government ‘‘sections 8 and 9’’; contract. A contract of participation shall

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1558 CONGRESSIONAL RECORD — SENATE March 8, 2018 remain in effect until the participating fam- 9 for purposes of making the escrow deposit (ii) in subparagraph (D)— ily exits the Family Self-Sufficiency pro- for participating families assisted under, or (I) by striking ‘‘subsection (d)’’ and insert- gram upon successful graduation or expira- residing in units assisted under, section 8 or ing ‘‘subsection (e)’’; and tion of the contract of participation, or for 9, respectively, provided such funds are offset (II) by striking ‘‘public housing agency’’ other good cause.’’; by the increase in the amount of rent paid by and inserting ‘‘eligible entity’’; (B) in paragraph (2)— the participating family.’’; (iii) in subparagraph (E), by striking ‘‘de- (i) in the matter preceding subparagraph (ii) by striking the second sentence and in- liver’’ and inserting ‘‘coordinate’’; (A)— serting the following: ‘‘All Family Self-Suffi- (iv) in subparagraph (H), by striking ‘‘the (I) in the first sentence— ciency programs administered under this Job Opportunities and Basic Skills Training (aa) by striking ‘‘A local program under section shall include an escrow account.’’; Program under part F of title IV of the So- this section’’ and inserting ‘‘An eligible enti- (iii) in the fourth sentence, by striking cial Security Act and’’; and ty’’; ‘‘subsection (c)’’ and inserting ‘‘subsection (v) in subparagraph (I), by striking ‘‘public (bb) by striking ‘‘provide’’ and inserting (d)’’; and housing or section 8 assistance’’ and insert- ‘‘coordinate’’; and (iv) in the last sentence— ing ‘‘assistance under section 8 or 9’’; (cc) by striking ‘‘to’’ and inserting ‘‘for’’; (I) by striking ‘‘A public housing agency’’ (11) by amending subsection (i), as so redes- and and inserting ‘‘An eligible entity’’; and ignated, to read as follows: (II) in the second sentence— (II) by striking ‘‘the public housing agen- (aa) by striking ‘‘provided during’’ and in- cy’’ and inserting ‘‘such eligible entity’’; and ‘‘(i) FAMILY SELF-SUFFICIENCY AWARDS.— serting ‘‘coordinated for’’; (C) by amending paragraph (3) to read as ‘‘(1) IN GENERAL.—Subject to appropria- (bb) by striking ‘‘under section 8 or resid- follows: tions, the Secretary shall establish a for- ing in public housing’’ and inserting ‘‘pursu- ‘‘(3) FORFEITED ESCROW.—Any amount mula by which annual funds shall be awarded ant to section 8 or 9 and for the duration of placed in an escrow account established by or as otherwise determined by the Secretary the contract of participation’’; and an eligible entity for a participating family for the costs incurred by an eligible entity in (cc) by inserting ‘‘, but are not limited to’’ as required under paragraph (2), that exists administering the Family Self-Sufficiency after ‘‘may include’’; after the end of a contract of participation program under this section. (ii) in subparagraph (D), by inserting ‘‘or by a household member of a participating ‘‘(2) ELIGIBILITY FOR AWARDS.—The award attainment of a high school equivalency cer- family that does not qualify to receive the established under paragraph (1) shall provide tificate’’ after ‘‘high school’’; escrow, shall be used by the eligible entity funding for family self-sufficiency coordina- (iii) by striking subparagraph (G); for the benefit of participating families in tors as follows: (iv) by redesignating subparagraphs (E), good standing.’’; ‘‘(A) BASE AWARD.—An eligible entity serv- (F), and (J) as subparagraphs (F), (G), and (8) in subsection (f), as so redesignated, by ing 25 or more participants in the Family (K) respectively; striking ‘‘, unless the income of the family Self-Sufficiency program under this section (v) by inserting after subparagraph (D) the equals or exceeds 80 percent of the median is eligible to receive an award equal to the following: income of the area (as determined by the costs, as determined by the Secretary, of 1 ‘‘(E) education in pursuit of a post-sec- Secretary with adjustments for smaller and full-time family self-sufficiency coordinator ondary degree or certification;’’; larger families)’’; position. The Secretary may, by regulation (vi) in subparagraph (H), by inserting ‘‘fi- (9) in subsection (g), as so redesignated— or notice, determine the policy concerning nancial literacy, such as training in finan- (A) in paragraph (1)— the award for an eligible entity serving fewer cial management, financial coaching, and (i) by striking ‘‘public housing agency’’ than 25 such participants, including pro- asset building, and’’ after ‘‘training in’’; and inserting ‘‘eligible entity’’; viding prorated awards or allowing such en- (vii) in subparagraph (I), by striking ‘‘and’’ (ii) by striking ‘‘the public housing agen- tities to combine their programs under this at the end; and cy’’ and inserting ‘‘such eligible entity’’; and section for purposes of employing a coordi- (viii) by inserting after subparagraph (I) (iii) by striking ‘‘subsection (g)’’ and in- nator. the following: serting ‘‘subsection (h)’’; and ‘‘(B) ADDITIONAL AWARD.—An eligible enti- ‘‘(J) homeownership education and assist- (B) in paragraph (2)— ty that meets performance standards set by ance; and’’; and (i) by striking ‘‘public housing agency’’ the Secretary is eligible to receive an addi- (C) in paragraph (3)— and inserting ‘‘eligible entity’’ each place tional award sufficient to cover the costs of (i) in the first sentence, by inserting ‘‘the that term appears; filling an additional family self-sufficiency first recertification of income after’’ after (ii) by striking ‘‘or the Job Opportunities ‘‘not later than 5 years after’’; and and Basic Skills Training Program under coordinator position if such entity has 75 or (ii) in the second sentence— part F of title IV of the Social Security more participating families, and an addi- (I) by striking ‘‘public housing agency’’ Act’’; tional coordinator for each additional 50 par- and inserting ‘‘eligible entity’’; and (iii) by inserting ‘‘primary, secondary, and ticipating families, or such other ratio as (II) by striking ‘‘of the agency’’; post-secondary’’ after ‘‘public and private’’; may be established by the Secretary based (D) by amending paragraph (4) to read as and on the award allocation evaluation under follows: (iv) in the second sentence, by inserting subparagraph (E). ‘‘(4) EMPLOYMENT.—The contract of partici- ‘‘and tenants served by the program’’ after ‘‘(C) STATE AND REGIONAL AGENCIES.—For pation shall require 1 household member of ‘‘the unit of general local government’’; purposes of calculating the award under this the participating family to seek and main- (10) in subsection (h), as so redesignated— paragraph, each administratively distinct tain suitable employment.’’; and (A) in paragraph (1)— part of a State or regional eligible entity (E) by adding at the end the following: (i) by striking ‘‘public housing agency’’ may be treated as a separate agency. ‘‘(5) NONPARTICIPATION.—Assistance under and inserting ‘‘eligible entity’’; ‘‘(D) DETERMINATION OF NUMBER OF COORDI- section 8 or 9 for a family that elects not to (ii) by striking ‘‘participating in the’’ and NATORS.—In determining whether an eligible participate in a Family Self-Sufficiency pro- inserting ‘‘carrying out a’’; and entity meets a specific threshold for funding gram shall not be delayed by reason of such (iii) by striking ‘‘to the Secretary’’; pursuant to this paragraph, the Secretary election.’’; (B) in paragraph (2)— shall consider the number of participants en- (7) in subsection (e), as so redesignated— (i) by striking ‘‘public housing agency’’ rolled by the eligible entity in its Family (A) in paragraph (1), by striking ‘‘whose and inserting ‘‘eligible entity’’; Self-Sufficiency program as well as other monthly adjusted income does not exceed 50 (ii) by striking ‘‘subsection (f)’’ and insert- criteria determined by the Secretary. percent’’ and all that follows through the pe- ing ‘‘subsection (g)’’; ‘‘(E) AWARD ALLOCATION EVALUATION.—The riod at the end of the third sentence and in- (iii) by striking ‘‘residents of the public Secretary shall submit to Congress a report serting ‘‘shall be calculated under the rental housing’’ and inserting ‘‘the current and pro- evaluating the award allocation under this provisions of section 3 or section 8(o), as ap- spective participants of the program’’; and subsection, and make recommendations plicable.’’; (iv) by striking ‘‘or the Job Opportunities based on this evaluation and other related (B) in paragraph (2)— and Basic Skills Training Program under findings to modify such allocation, within 4 (i) by striking the first sentence and in- part F of title IV of the Social Security years after the date of enactment of the Eco- serting the following: ‘‘For each partici- Act’’; and nomic Growth, Regulatory Relief, and Con- pating family, an amount equal to any in- (C) in paragraph (3)— sumer Protection Act, and not less fre- crease in the amount of rent paid by the (i) in subparagraph (C)— quently than every 4 years thereafter. The family in accordance with the provisions of (I) by striking ‘‘subsection (c)(2)’’ and in- report requirement under this subparagraph section 3 or 8(o), as applicable, that is attrib- serting ‘‘subsection (d)(2)’’; shall terminate after the Secretary has sub- utable to increases in earned income by the (II) by striking ‘‘provided to’’ and inserting mitted 2 such reports to Congress. participating family, shall be placed in an ‘‘coordinated on behalf of participating’’; ‘‘(3) RENEWALS AND ALLOCATION.— interest-bearing escrow account established (III) by inserting ‘‘direct’’ before ‘‘assist- ‘‘(A) IN GENERAL.—Funds allocated by the by the eligible entity on behalf of the par- ance’’; and Secretary under this subsection shall be allo- ticipating family. Notwithstanding any (IV) by striking ‘‘the section 8 and public cated in the following order of priority: other provision of law, an eligible entity housing programs’’ and inserting ‘‘sections 8 ‘‘(i) FIRST PRIORITY.—Renewal of the full may use funds it controls under section 8 or and 9’’; cost of all coordinators in the previous year

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at each eligible entity with an existing Fam- tarily makes a Family Self-Sufficiency pro- (b) EFFECTIVE DATE.—Not later than 360 ily Self-Sufficiency program that meets ap- gram available pursuant to this subsection, days after the date of enactment of this Act, plicable performance standards set by the may access funding from any residual re- the Secretary of Housing and Urban Develop- Secretary. ceipt accounts for the property to hire a ment shall issue regulations to implement ‘‘(ii) SECOND PRIORITY.—New or incre- family self-sufficiency coordinator or coordi- this section and any amendments made by mental coordinator funding authorized under nators for their program. this section, and this section and any amend- this section. ‘‘(2) COOPERATIVE AGREEMENT.—Any coop- ments made by this section shall take effect ‘‘(B) GUIDANCE.—If the first priority, as de- erative agreement entered into pursuant to upon such issuance. scribed in subparagraph (A)(i), cannot be paragraph (1) shall require the public hous- SEC. 307. PROPERTY ASSESSED CLEAN ENERGY fully satisfied, the Secretary may prorate ing agency to open its Family Self-Suffi- FINANCING. the funding for each eligible entity, as long ciency program waiting list to any eligible Section 129C(b)(3) of the Truth in Lending as— family residing in the owner’s property who Act (15 U.S.C. 1639c(b)(3)) is amended by add- ‘‘(i) each eligible entity that has received resides in a unit assisted under project-based ing at the end the following: funding for at least 1 part-time coordinator rental assistance. ‘‘(C) CONSIDERATION OF UNDERWRITING RE- in the prior fiscal year is provided sufficient ‘‘(3) TREATMENT OF FAMILIES ASSISTED QUIREMENTS FOR PROPERTY ASSESSED CLEAN funding for at least 1 part-time coordinator UNDER THIS SUBSECTION.—A public housing ENERGY FINANCING.— as part of any such proration; and agency that enters into a cooperative agree- ‘‘(i) DEFINITION.—In this subparagraph, the ‘‘(ii) each eligible entity that has received ment pursuant to paragraph (1) may count term ‘Property Assessed Clean Energy fi- funding for at least 1 full-time coordinator in any family participating in its Family Self- nancing’ means financing to cover the costs the prior fiscal year is provided sufficient Sufficiency program as a result of such of home improvements that results in a tax funding for at least 1 full-time coordinator agreement as part of the calculation of the assessment on the real property of the con- as part of any such proration. award under subsection (i). sumer. ‘‘(4) RECAPTURE OR OFFSET.—Any awards ‘‘(4) ESCROW.— ‘‘(ii) REGULATIONS.—The Bureau shall pre- allocated under this subsection by the Sec- ‘‘(A) COOPERATIVE AGREEMENT.—A coopera- scribe regulations that carry out the pur- retary in a fiscal year that have not been tive agreement entered into pursuant to poses of subsection (a) and apply section 130 spent by the end of the subsequent fiscal paragraph (1) shall provide for the calcula- with respect to violations under subsection year or such other time period as determined tion and tracking of the escrow for partici- (a) of this section with respect to Property by the Secretary may be recaptured by the pating residents and for the owner to make Assessed Clean Energy financing, which shall Secretary and shall be available for pro- available, upon request of the public housing account for the unique nature of Property viding additional awards pursuant to para- agency, escrow for participating residents, in Assessed Clean Energy financing. graph (2)(B), or may be offset as determined accordance with paragraphs (2) and (3) of ‘‘(iii) COLLECTION OF INFORMATION AND CON- by the Secretary. Funds appropriated pursu- subsection (e), residing in units assisted SULTATION.—In prescribing the regulations ant to this section shall remain available for under section 8. 3 years in order to facilitate the re-use of under this subparagraph, the Bureau— ‘‘(B) CALCULATION AND TRACKING BY any recaptured funds for this purpose. ‘‘(I) may collect such information and data OWNER.—The owner of a privately owned ERFORMANCE REPORTING.—Programs that the Bureau determines is necessary; and ‘‘(5) P property who voluntarily makes a Family under this section shall be required to report ‘‘(II) shall consult with State and local Self-Sufficiency program available pursuant the number of families enrolled and grad- governments and bond-issuing authorities.’’. to paragraph (1) shall calculate and track uated, the number of established escrow ac- the escrow for participating residents and SEC. 308. GAO REPORT ON CONSUMER REPORT- counts and positive escrow balances, and any make escrow for participating residents ING AGENCIES. other information that the Secretary may available in accordance with paragraphs (2) (a) DEFINITIONS.—In this section, the terms require. Program performance shall be re- and (3) of subsection (e). viewed periodically as determined by the ‘‘consumer’’, ‘‘consumer report’’, and ‘‘con- ‘‘(5) EXCEPTION.—This subsection shall not Secretary. sumer reporting agency’’ have the meanings apply to properties assisted under section given those terms in section 603 of the Fair ‘‘(6) INCENTIVES FOR INNOVATION AND HIGH 8(o)(13). Credit Reporting Act (15 U.S.C. 1681a). PERFORMANCE.—The Secretary may reserve up to 5 percent of the amounts made avail- ‘‘(6) SUSPENSION OF ENROLLMENT.—In any (b) REPORT.—Not later than 1 year after able under this subsection to provide support year, the Secretary may suspend the enroll- the date of enactment of this Act, the Comp- to or reward Family Self-Sufficiency pro- ment of new families in Family Self-Suffi- troller General of the United States shall grams based on the rate of successful com- ciency programs under this subsection based submit to the Committee on Banking, Hous- pletion, increased earned income, or other on a determination that insufficient funding ing, and Urban Affairs of the Senate and the factors as may be established by the Sec- is available for this purpose.’’; Committee on Financial Services of the retary.’’; (18) in subsection (m), as so redesignated— House of Representatives a comprehensive (12) in subsection (j)— (A) in paragraph (1)— report that includes— (A) by striking ‘‘public housing agency’’ (i) in the first sentence, by striking ‘‘Each (1) a review of the current legal and regu- and inserting ‘‘eligible entity’’; public housing agency’’ and inserting ‘‘Each latory structure for consumer reporting (B) by striking ‘‘public housing’’ before eligible entity’’; agencies and an analysis of any gaps in that ‘‘units’’; (ii) in the second sentence, by striking structure, including, in particular, the rule- (C) by striking ‘‘in public housing projects ‘‘The report shall include’’ and inserting making, supervisory, and enforcement au- administered by the agency’’; ‘‘The contents of the report shall include’’; thority of State and Federal agencies under (D) by inserting ‘‘or coordination’’ after and the Fair Credit Reporting Act (15 U.S.C. 1681 ‘‘provision’’; and (iii) in subparagraph (D)— et seq.), the Gramm-Leach-Bliley Act (Pub- (E) by striking the last sentence; (I) by striking ‘‘public housing agency’’ lic Law 106–102; 113 Stat. 1338), and any other (13) in subsection (k), by striking ‘‘public and inserting ‘‘eligible entity’’; and relevant statutes; housing agencies’’ and inserting ‘‘eligible en- (II) by striking ‘‘local’’; and (2) a review of the process by which con- tities’’; (B) in paragraph (2), by inserting ‘‘and de- sumers can appeal and expunge errors on (14) by striking subsection (n); scribing any additional research needs of the their consumer reports; (15) by striking subsection (o); Secretary to evaluate the effectiveness of (3) a review of the causes of consumer re- (16) by redesignating subsections (l) and the program’’ after ‘‘under paragraph (1)’’; porting errors; (m) as subsections (m) and (n), respectively; (19) in subsection (n), as so redesignated, (4) a review of the responsibilities of data (17) by inserting after subsection (k) the by striking ‘‘may’’ and inserting ‘‘shall’’; furnishers to ensure that accurate informa- following: and tion is initially reported to consumer report- ‘‘(l) PROGRAMS FOR TENANTS IN PRIVATELY (20) by adding at the end the following: ing agencies and to ensure that such infor- OWNED PROPERTIES WITH PROJECT-BASED AS- ‘‘(o) DEFINITIONS.—In this section: mation continues to be accurate; SISTANCE.— ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible (5) a review of data security relating to ‘‘(1) VOLUNTARY AVAILABILITY OF FSS PRO- entity’ means an entity that meets the re- consumer reporting agencies and their ef- GRAM.—The owner of a privately owned prop- quirements under subsection (c)(2) to admin- forts to safeguard consumer data; erty may voluntarily make a Family Self- ister a Family Self-Sufficiency program (6) a review of who has access to, and may Sufficiency program available to the tenants under this section. use, consumer reports; of such property in accordance with proce- ‘‘(2) ELIGIBLE FAMILY.—The term ‘eligible (7) a review of who has control or owner- dures established by the Secretary. Such family’ means a family that meets the re- ship of a consumer’s credit data; procedures shall permit the owner to enter quirements under subsection (c)(1) to partici- (8) an analysis of— into a cooperative agreement with a local pate in the Family Self-Sufficiency program (A) which Federal and State regulatory public housing agency that administers a under this section. agencies supervise and enforce laws relating Family Self-Sufficiency program or, at the ‘‘(3) PARTICIPATING FAMILY.—The term to how consumer reporting agencies protect owner’s option, operate a Family Self-Suffi- ‘participating family’ means an eligible fam- consumer data; and ciency program on its own or in partnership ily that is participating in the Family Self- (B) all laws relating to data security appli- with another owner. An owner, who volun- Sufficiency program under this section.’’. cable to consumer reporting agencies; and

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1560 CONGRESSIONAL RECORD — SENATE March 8, 2018 (9) recommendations to Congress on how to ‘‘(2) the date on which the sixth monthly inserting after the item relating to section improve the consumer reporting system, in- payment is made on the loan. 3709 the following new item: cluding legislative, regulatory, and industry- ‘‘(d) CASH-OUT REFINANCES.—(1) Sub- ‘‘3709. Refinancing of housing loans.’’. specific recommendations. sections (a) through (c) shall not apply in a (b) LOAN SEASONING FOR GINNIE MAE MORT- GAGE-BACKED SECURITIES.—Section 306(g)(1) SEC. 309. PROTECTING VETERANS FROM PREDA- case of a loan refinancing in which the TORY LENDING. of the National Housing Act (12 U.S.C. amount of the principal for the new loan to (a) PROTECTING VETERANS FROM PREDA- 1721(g)(1)) is amended by inserting ‘‘The As- be guaranteed or insured under this chapter TORY LENDING.— sociation may not guarantee the timely pay- is larger than the payoff amount of the refi- (1) IN GENERAL.—Subchapter I of chapter 37 ment of principal and interest on a security of title 38, United States Code, is amended by nanced loan. that is backed by a mortgage insured or adding at the end the following new section: ‘‘(2) Not later than 180 days after the date guaranteed under chapter 37 of title 38, ‘‘§ 3709. Refinancing of housing loans of the enactment of this section, the Sec- United States Code, and that was refinanced until the later of the date that is 210 days ‘‘(a) FEE RECOUPMENT.—Except as provided retary shall promulgate such rules as the Secretary considers appropriate with respect after the date on which the first monthly in subsection (d) and notwithstanding sec- payment is made on the mortgage being refi- tion 3703 of this title or any other provision to refinancing described in paragraph (1) to ensure that such refinancing is in the finan- nanced and the date on which 6 full monthly of law, a loan to a veteran for a purpose spec- payments have been made on the mortgage cial interest of the borrower, including rules ified in section 3710 of this title that is being being refinanced.’’ after ‘‘Act of 1992.’’. relating to recoupment, seasoning, and net refinanced may not be guaranteed or insured (c) REPORT ON LIQUIDITY OF THE DEPART- under this chapter unless— tangible benefits.’’. MENT OF VETERANS AFFAIRS HOUSING LOAN ‘‘(1) the issuer of the refinanced loan pro- (2) REGULATIONS.— PROGRAM.— vides the Secretary with a certification of (A) IN GENERAL.—In prescribing any regula- (1) REPORT.—Not later than 1 year after the recoupment period for fees, closing costs, tion to carry out section 3709 of title 38, the date of the enactment of this Act, the and any expenses (other than taxes, amounts United States Code, as added by paragraph Secretary of Housing and Urban Develop- held in escrow, and fees paid under this chap- (1), the Secretary of Veterans Affairs may ment and the President of the Ginnie Mae ter) that would be incurred by the borrower waive the requirements of sections 551 shall submit to the appropriate committees in the refinancing of the loan; through 559 of title 5, United States Code, of Congress a report on the liquidity of the ‘‘(2) all of the fees and incurred costs are if— housing loan program under chapter 37 of scheduled to be recouped on or before the (i) the Secretary determines that urgent or title 38, United States Code, in the secondary date that is 36 months after the date of loan compelling circumstances make compliance mortgage market, which shall— issuance; and with such requirements impracticable or (A) assess the loans provided under that ‘‘(3) the recoupment is calculated through contrary to the public interest; chapter that collateralize mortgage-backed lower regular monthly payments (other than (ii) the Secretary submits to the Com- securities that are guaranteed by Ginnie taxes, amounts held in escrow, and fees paid mittee on Veterans’ Affairs of the Senate Mae; and under this chapter) as a result of the refi- and the Committee on Veterans’ Affairs of (B) include recommendations for actions nanced loan. the House of Representatives, and publishes that Ginnie Mae should take to ensure that ‘‘(b) NET TANGIBLE BENEFIT TEST.—Except in the Federal Register, notice of such waiv- the liquidity of that housing loan program is as provided in subsection (d) and notwith- er, including a description of the determina- maintained. standing section 3703 of this title or any tion made under clause (i); and (2) DEFINITIONS.—In this subsection: other provision of law, a loan to a veteran (iii) a period of 10 days elapses following (A) APPROPRIATE COMMITTEES OF CON- for a purpose specified in section 3710 of this the notification under clause (ii). GRESS.—The term ‘‘appropriate committees title that is refinanced may not be guaran- (B) PUBLIC NOTICE AND COMMENT.—If a regu- of Congress’’ means— teed or insured under this chapter unless— lation prescribed pursuant to a waiver made (i) the Committee on Veterans’ Affairs and ‘‘(1) the issuer of the refinanced loan pro- under subparagraph (A) is in effect for a pe- the Committee on Banking, Housing, and vides the borrower with a net tangible ben- riod exceeding 1 year, the Secretary shall Urban Affairs of the Senate; and efit test; provide the public an opportunity for notice (ii) the Committee on Veterans’ Affairs ‘‘(2) in a case in which the original loan and comment regarding such regulation. and the Committee on Financial Services of had a fixed rate mortgage interest rate and (C) EFFECTIVE DATE.—This paragraph shall the House of Representatives. the refinanced loan will have a fixed rate take effect on the date of the enactment of (B) GINNIE MAE.—The term ‘‘Ginnie Mae’’ mortgage interest rate, the refinanced loan this Act. means the Government National Mortgage has a mortgage interest rate that is not less (D) TERMINATION DATE.—The authorities Association. than 50 basis points less than the previous under this paragraph shall terminate on the (d) ANNUAL REPORT ON DOCUMENT DISCLO- loan; date that is 1 year after the date of the en- SURE AND CONSUMER EDUCATION.—Not less ‘‘(3) in a case in which the original loan actment of this Act. frequently than once each year, the Sec- had a fixed rate mortgage interest rate and (3) REPORT ON CASH-OUT REFINANCES.— retary of Veterans Affairs shall issue a pub- the refinanced loan will have an adjustable (A) IN GENERAL.—Not later than 1 year licly available report that— rate mortgage interest rate, the refinanced after the date of the enactment of this Act, (1) examines, with respect to loans pro- loan has a mortgage interest rate that is not the Secretary shall, in consultation with the vided to veterans under chapter 37 of title 38, less than 200 basis points less than the pre- President of the Ginnie Mae, submit to Con- United States Code— vious loan; and gress a report on refinancing— (A) the refinancing of fixed-rate mortgage ‘‘(4) the lower interest rate is not produced (i) of loans— loans to adjustable rate mortgage loans; solely from discount points, unless— (I) made to veterans for purposes specified (B) whether veterans are informed of the ‘‘(A) such points are paid at closing; and in section 3710 of title 38, United States risks and disclosures associated with that re- ‘‘(B) such points are not added to the prin- Code; and financing; and cipal loan amount, unless— (II) that were guaranteed or insured under (C) whether advertising materials for that ‘‘(i) for discount point amounts that are chapter 37 of such title; and refinancing are clear and do not contain mis- less than or equal to one discount point, the (ii) in which the amount of the principal leading statements or assertions; and resulting loan balance after any fees and ex- for the new loan to be guaranteed or insured (2) includes findings based on any com- penses allows the property with respect to under such chapter is larger than the payoff plaints received by veterans and on an ongo- which the loan was issued to maintain a loan amount of the refinanced loan. ing assessment of the refinancing market by to value ratio of 100 percent or less; and (B) CONTENTS.—The report required by sub- the Secretary. ‘‘(ii) for discount point amounts that are paragraph (A) shall include the following: SEC. 310. CREDIT SCORE COMPETITION. greater than one discount point, the result- (i) An assessment of whether additional re- (a) USE OF CREDIT SCORES BY FANNIE MAE ing loan balance after any fees and expenses quirements, including a net tangible benefit IN PURCHASING RESIDENTIAL MORTGAGES.— allows the property with respect to which test, fee recoupment period, and loan sea- Section 302(b) of the Federal National Mort- the loan was issued to maintain a loan to soning requirement, are necessary to ensure gage Association Charter Act (12 U.S.C. value ratio of 90 percent or less. that the refinancing described in subpara- 1717(b)) is amended by adding at the end the ‘‘(c) LOAN SEASONING.—Except as provided graph (A) is in the financial interest of the following: in subsection (d) and notwithstanding sec- borrower. ‘‘(7)(A) DEFINITIONS.—In this paragraph— tion 3703 of this title or any other provision (ii) Such recommendations as the Sec- ‘‘(i) the term ‘credit score’ means a numer- of law, a loan to a veteran for a purpose spec- retary may have for additional legislative or ical value or a categorization created by a ified in section 3710 of this title that is refi- administrative action to ensure that refi- third party derived from a statistical tool or nanced may not be guaranteed or insured nancing described in subparagraph (A) is car- modeling system used by a person who under this chapter until the date that is the ried out in the financial interest of the bor- makes or arranges a loan to predict the like- later of— rower. lihood of certain credit behaviors, including ‘‘(1) the date that is 210 days after the date (4) CLERICAL AMENDMENT.—The table of default; and on which the first monthly payment is made sections at the beginning of chapter 37 of ‘‘(ii) the term ‘residential mortgage’ has on the loan; and title 38, United States Code, is amended by the meaning given the term in section 302 of

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1561 the Federal Home Loan Mortgage Corpora- days after the date on which the application ‘‘(A) the additional credit score model has tion Act (12 U.S.C. 1451). was submitted to the corporation. replaced the credit score model or credit ‘‘(B) USE OF CREDIT SCORES.—The corpora- ‘‘(iv) REASONS FOR DISAPPROVAL.—If an ap- score models previously validated and ap- tion shall condition purchase of a residential plication submitted under subparagraph (F) proved; and mortgage by the corporation under this sub- is disapproved, the corporation shall provide ‘‘(B) the credit score model or credit score section on the provision of a credit score for to the applicant the reasons for the dis- models previously validated and approved the borrower only if— approval not later than 30 days after a deter- shall no longer be considered validated and ‘‘(i) the credit score is derived from any mination is made under this subparagraph. approved for the purposes of paragraph (2). credit scoring model that has been validated ‘‘(H) AUTHORITY OF DIRECTOR.—If the cor- ‘‘(5) PUBLIC DISCLOSURE.—Upon estab- and approved by the corporation under this poration elects to use a credit score model lishing the validation and approval process paragraph; and under this paragraph, the Director of the required under paragraph (3), the Corpora- ‘‘(ii) the corporation provides for the use of Federal Housing Finance Agency shall re- tion shall make publicly available a descrip- the credit score by all of the automated un- quire the corporation to periodically review tion of the validation and approval process. derwriting systems of the corporation and the validation and approval process required ‘‘(6) APPLICATION.—Not later than 30 days any other procedures and systems used by under subparagraph (C) as the Director de- after the effective date of this subsection, the corporation to purchase residential termines necessary to ensure that the proc- the Corporation shall solicit applications mortgages that use a credit score. ess remains appropriate and adequate and from developers of credit scoring models for ‘‘(C) VALIDATION AND APPROVAL PROCESS.— complies with any standards and criteria es- the validation and approval of those models The corporation shall establish a validation tablished pursuant to section 1328(1) of the under the process required under paragraph and approval process for the use of credit Federal Housing Enterprises Financial Safe- (3). score models, under which the corporation ty and Soundness Act of 1992. ‘‘(7) TIMEFRAME FOR DETERMINATION; NO- may not validate and approve a credit score ‘‘(I) EXTENSION.—If, as of the effective date TICE.— model unless the credit score model— of this paragraph, a credit score model has ‘‘(A) IN GENERAL.—The Corporation shall ‘‘(i) satisfies minimum requirements of in- not been approved under subparagraph (C), make a determination with respect to any tegrity, reliability, and accuracy; the corporation may use a credit score model application submitted under paragraph (6), ‘‘(ii) has a historical record of measuring that was in use before the effective date of and provide notice of that determination to and predicting default rates and other credit this paragraph, if necessary to prevent sub- the applicant, before a date established by behaviors; stantial market disruptions, until the earlier the Corporation that is not later than 180 ‘‘(iii) is consistent with the safe and sound of— days after the date on which an application operation of the corporation; ‘‘(i) the date on which a credit score model is submitted to the Corporation. ‘‘(iv) complies with any standards and cri- is validated and approved under subpara- ‘‘(B) EXTENSIONS.—The Director of the Fed- teria established by the Director of the Fed- graph (C); or eral Housing Finance Agency may authorize eral Housing Finance Agency under section ‘‘(ii) the date that is 2 years after the effec- not more than 2 extensions of the date estab- 1328(1) of the Federal Housing Enterprises Fi- tive date of this paragraph.’’. lished under subparagraph (A), each of which (b) USE OF CREDIT SCORES BY FREDDIE MAC nancial Safety and Soundness Act of 1992; shall not exceed 30 days, upon a written re- IN PURCHASING RESIDENTIAL MORTGAGES.— and quest and a showing of good cause by the Section 305 of the Federal Home Loan Mort- ‘‘(v) satisfies any other requirements, as Corporation. gage Corporation Act (12 U.S.C. 1454) is ‘‘(C) STATUS NOTICE.—The Corporation determined by the corporation. amended by adding at the end the following: ‘‘(D) REPLACEMENT OF CREDIT SCORE shall provide notice to an applicant regard- ‘‘(d)(1) DEFINITION.—In this subsection, the MODEL.—If the corporation has validated and term ‘credit score’ means a numerical value ing the status of an application submitted approved 1 or more credit score models under or a categorization created by a third party under paragraph (6) not later than 60 days subparagraph (C) and the corporation vali- derived from a statistical tool or modeling after the date on which the application was dates and approves an additional credit score system used by a person who makes or ar- submitted to the Corporation. model, the corporation may determine ranges a loan to predict the likelihood of ‘‘(D) REASONS FOR DISAPPROVAL.—If an ap- that— certain credit behaviors, including default. plication submitted under paragraph (6) is ‘‘(i) the additional credit score model has ‘‘(2) USE OF CREDIT SCORES.—The Corpora- disapproved, the Corporation shall provide to replaced the credit score model or credit tion shall condition purchase of a residential the applicant the reasons for the disapproval score models previously validated and ap- mortgage by the Corporation under this sec- not later than 30 days after a determination proved; and tion on the provision of a credit score for the is made under this paragraph. ‘‘(ii) the credit score model or credit score borrower only if— ‘‘(8) AUTHORITY OF DIRECTOR.—If the Cor- models previously validated and approved ‘‘(A) the credit score is derived from any poration elects to use a credit score under shall no longer be considered validated and credit scoring model that has been validated this subsection, the Director of the Federal approved for the purposes of subparagraph and approved by the Corporation under this Housing Finance Agency shall require the (B). subsection; and Corporation to periodically review the vali- ‘‘(E) PUBLIC DISCLOSURE.—Upon estab- ‘‘(B) the Corporation provides for the use dation and approval process required under lishing the validation and approval process of the credit score by all of the automated paragraph (3) as the Director determines nec- required under subparagraph (C), the cor- underwriting systems of the Corporation and essary to ensure that the process remains ap- poration shall make publicly available a de- any other procedures and systems used by propriate and adequate and complies with scription of the validation and approval the Corporation to purchase residential any standards and criteria established pursu- process. mortgages that use a credit score. ant to section 1328(1) of the Federal Housing ‘‘(F) APPLICATION.—Not later than 30 days ‘‘(3) VALIDATION AND APPROVAL PROCESS.— Enterprises Financial Safety and Soundness after the effective date of this paragraph, the The Corporation shall establish a validation Act of 1992. corporation shall solicit applications from and approval process for the use of credit ‘‘(9) EXTENSION.—If, as of the effective date developers of credit scoring models for the score models, under which the Corporation of this subsection, a credit score model has validation and approval of those models may not validate and approve a credit score not been approved under paragraph (3), the under the process required under subpara- model unless the credit score model— Corporation may use a credit score model graph (C). ‘‘(A) satisfies minimum requirements of in- that was in use before the effective date of ‘‘(G) TIMEFRAME FOR DETERMINATION; NO- tegrity, reliability, and accuracy; this subsection, if necessary to prevent sub- TICE.— ‘‘(B) has a historical record of measuring stantial market disruptions, until the earlier ‘‘(i) IN GENERAL.—The corporation shall and predicting default rates and other credit of— make a determination with respect to any behaviors; ‘‘(A) the date on which a credit score application submitted under subparagraph ‘‘(C) is consistent with the safe and sound model is validated and approved under para- (F), and provide notice of that determination operation of the corporation; graph (3); or to the applicant, before a date established by ‘‘(D) complies with any standards and cri- ‘‘(B) the date that is 2 years after the effec- the corporation that is not later than 180 teria established by the Director of the Fed- tive date of this subsection.’’. days after the date on which an application eral Housing Finance Agency under section (c) AUTHORITY OF THE DIRECTOR.—Subpart is submitted to the corporation. 1328(1) of the Federal Housing Enterprises Fi- A of part 2 of subtitle A of the Federal Hous- ‘‘(ii) EXTENSIONS.—The Director of the Fed- nancial Safety and Soundness Act of 1992; ing Enterprises Financial Safety and Sound- eral Housing Finance Agency may authorize and ness Act of 1992 (12 U.S.C. 4541 et seq.) is not more than 2 extensions of the date estab- ‘‘(E) satisfies any other requirements, as amended by adding at the end the following: lished under clause (i), each of which shall determined by the Corporation. ‘‘SEC. 1328. REGULATIONS FOR USE OF CREDIT not exceed 30 days, upon a written request ‘‘(4) REPLACEMENT OF CREDIT SCORE SCORES. and a showing of good cause by the corpora- MODEL.—If the Corporation has validated ‘‘The Director shall— tion. and approved 1 or more credit score models ‘‘(1) by regulation, establish standards and ‘‘(iii) STATUS NOTICE.—The corporation under paragraph (3) and the Corporation criteria for any process used by an enterprise shall provide notice to an applicant regard- validates and approves an additional credit to validate and approve credit scoring mod- ing the status of an application submitted score model, the Corporation may determine els pursuant to section 302(b)(7) of the Fed- under subparagraph (F) not later than 60 that— eral National Mortgage Association Charter

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1562 CONGRESSIONAL RECORD — SENATE March 8, 2018 Act (12 U.S.C. 1717(b)(7)) and section 305(d) of TITLE IV—TAILORING REGULATIONS FOR cial activities of their subsidiaries), size, and the Federal Home Loan Mortgage Corpora- CERTAIN BANK HOLDING COMPANIES any other risk-related factors that the Board tion Act (12 U.S.C. 1454(d)); and SEC. 401. ENHANCED SUPERVISION AND PRUDEN- of Governors deems appropriate; or ‘‘(2) ensure that any credit scoring model TIAL STANDARDS FOR CERTAIN (2) the supervisory, regulatory, or enforce- that is validated and approved by an enter- BANK HOLDING COMPANIES. ment authority of an appropriate Federal prise under section 302(b)(7) (12 U.S.C. (a) IN GENERAL.—Section 165 of the Finan- banking agency to further the safe and sound 1717(b)(7)) of the Federal National Mortgage cial Stability Act of 2010 (12 U.S.C. 5365) is operation of an institution under the super- Association Charter Act or section 305(d) of amended— vision of the appropriate Federal banking the Federal Home Loan Mortgage Corpora- (1) in subsection (a)— agency. tion Act (12 U.S.C. 1454(d)) meets the require- (A) in paragraph (1), in the matter pre- (c) TECHNICAL AND CONFORMING AMEND- ments of clauses (i), (ii), and (iii) of section ceding subparagraph (A), by striking MENTS.— 302(b)(7)(C) of the Federal National Mortgage ‘‘$50,000,000,000’’ and inserting (1) FINANCIAL STABILITY ACT OF 2010.—The Association Charter Act and subparagraphs ‘‘$250,000,000,000’’; and Financial Stability Act of 2010 (12 U.S.C. 5311 (A), (B), and (C) of section 305(d)(3) of the (B) in paragraph (2)— et seq.) is amended— Federal Home Loan Mortgage Corporation (i) in subparagraph (A), by striking ‘‘may’’ (A) in section 115(a)(2)(B) (12 U.S.C. Act, respectively.’’. and inserting ‘‘shall’’; 5325(a)(2)(B)), by striking ‘‘$50,000,000,000’’ (ii) in subparagraph (B), by striking and inserting ‘‘the applicable threshold’’; (d) EFFECTIVE DATE.—The amendments ‘‘$50,000,000,000’’ and inserting ‘‘the applica- (B) in section 116(a) (12 U.S.C. 5326(a)), in made by subsections (a) and (b) shall take ef- ble threshold’’; and the matter preceding paragraph (1), by strik- fect on the date that is 180 days after the (iii) by adding at the end the following: ing ‘‘$50,000,000,000’’ and inserting date of enactment of this Act. ‘‘(C) RISKS TO FINANCIAL STABILITY AND ‘‘$250,000,000,000’’; SEC. 311. GAO REPORT ON PUERTO RICO FORE- SAFETY AND SOUNDNESS.—The Board of Gov- (C) in section 121(a) (12 U.S.C. 5331(a)), in CLOSURES. ernors may by order or rule promulgated the matter preceding paragraph (1), by strik- Not earlier than 1 year after the date of en- pursuant to section 553 of title 5, United ing ‘‘$50,000,000,000’’ and inserting actment of this Act, the Comptroller General States Code, apply any prudential standard ‘‘$250,000,000,000’’; of the United States shall submit to the established under this section to any bank (D) in section 155(d) (12 U.S.C. 5345(d)), by Committee on Banking, Housing, and Urban holding company or bank holding companies striking ‘‘50,000,000,000’’ and inserting Affairs of the Senate and the Committee on with total consolidated assets equal to or ‘‘$250,000,000,000’’; Financial Services of the House of Rep- greater than $100,000,000,000 to which the pru- (E) in section 163(b) (12 U.S.C. 5363(b)), by resentatives a report on foreclosures in the dential standard does not otherwise apply striking ‘‘$50,000,000,000’’ each place that Commonwealth of Puerto Rico, including— provided that the Board of Governors— term appears and inserting ‘‘$250,000,000,000’’; (1) the rate of foreclosures in the Common- ‘‘(i) determines that application of the pru- and wealth of Puerto Rico before and after Hurri- dential standard is appropriate— (F) in section 164 (12 U.S.C. 5364), by strik- cane Maria; ‘‘(I) to prevent or mitigate risks to the fi- ing ‘‘$50,000,000,000’’ and inserting (2) the rate of return for housing devel- nancial stability of the United States, as de- ‘‘$250,000,000,000’’. opers in the Commonwealth of Puerto Rico scribed in paragraph (1); or (2) FEDERAL RESERVE ACT.—The second sub- before and after Hurricane Maria; ‘‘(II) to promote the safety and soundness section (s) (relating to assessments) of sec- (3) the rate of delinquency in the Common- of the bank holding company or bank hold- tion 11 of the Federal Reserve Act (12 U.S.C. wealth of Puerto Rico before and after Hurri- ing companies; and 248(s)) is amended— ‘‘(ii) takes into consideration the bank cane Maria; (A) in paragraph (2)— holding company’s or bank holding compa- (4) the rate of homeownership in the Com- (i) in subparagraph (A), by striking nies’ capital structure, riskiness, com- monwealth of Puerto Rico before and after ‘‘$50,000,000,000’’ and inserting plexity, financial activities (including finan- Hurricane Maria; and ‘‘$100,000,000,000’’; and cial activities of subsidiaries), size, and any (5) the rate of defaults on federally insured (ii) in subparagraph (B), by striking other risk-related factors that the Board of mortgages in the Commonwealth of Puerto ‘‘$50,000,000,000’’ and inserting Governors deems appropriate.’’; Rico before and after Hurricane Maria. ‘‘$100,000,000,000’’; and (2) in subsection (b)(1)— (B) by adding at the end the following: SEC. 312. REPORT ON CHILDREN’S LEAD-BASED (A) in subparagraph (A)(iv), by striking ‘‘(3) TAILORING ASSESSMENTS.—In collecting PAINT HAZARD PREVENTION AND ‘‘and credit exposure report’’; and assessments, fees, or other charges under ABATEMENT. (B) in subparagraph (B)(ii), by inserting ‘‘, paragraph (1) from each company described (a) DEFINITIONS.—In this section— including credit exposure reports’’ before the in paragraph (2) with total consolidated as- (1) the term ‘‘Department’’ means the De- semicolon at the end; sets of between $100,000,000,000 and partment of Housing and Urban Develop- (3) in subsection (d)(2), in the matter pre- $250,000,000,000, the Board shall adjust the ment; and ceding subparagraph (A), by striking ‘‘shall’’ amount charged to reflect any changes in su- (2) the term ‘‘public housing agency’’ has and inserting ‘‘may’’; pervisory and regulatory responsibilities re- the meaning given the term in section 3(b) of (4) in subsection (h)(2), by striking sulting from the Economic Growth, Regu- the United States Housing Act of 1937 (42 ‘‘$10,000,000,000’’ each place that term ap- latory Relief, and Consumer Protection Act U.S.C. 1437a(b)). pears and inserting ‘‘$50,000,000,000’’; with respect to each such company.’’. (b) REPORT.—Not later than 1 year after (5) in subsection (i)— (d) EFFECTIVE DATE.— the date of enactment of this Act, the Sec- (A) in paragraph (1)(B)(i)— (1) IN GENERAL.—Except as provided in retary of Housing and Urban Development (i) by striking ‘‘3’’ and inserting ‘‘2’’; and paragraph (2), the amendments made by this shall submit to Congress a report that in- (ii) by striking ‘‘, adverse,’’; and section shall take effect on the date that is cludes— (B) in paragraph (2)— 18 months after the date of enactment of this (1) an overview of existing policies and en- (i) in subparagraph (A)— Act. forcement of the Department, including pub- (I) in the first sentence, by striking ‘‘semi- (2) EXCEPTION.—Notwithstanding para- lic outreach, relating to lead-based paint annual’’ and inserting ‘‘periodic’’; and graph (1), the amendments made by this sec- hazard prevention and abatement; (II) in the second sentence— tion shall take effect on the date of enact- (2) recommendations and best practices for (aa) by striking ‘‘$10,000,000,000’’ and insert- ment of this Act with respect to any bank the Department, public housing agencies, ing ‘‘$250,000,000,000’’; and holding company with total consolidated as- and landlords for improving lead-based paint (bb) by striking ‘‘annual’’ and inserting sets of less than $100,000,000,000. hazard prevention standards and Federal ‘‘periodic’’; and (3) ADDITIONAL AUTHORITY.—Before the ef- lead prevention and abatement policies to (ii) in subparagraph (C)(ii)— fective date described in paragraph (1), the protect the environmental health and safety (I) by striking ‘‘3’’ and inserting ‘‘2’’; and Board of Governors of the Federal Reserve of children, including within housing receiv- (II) by striking ‘‘, adverse,’’; and System may by order exempt any bank hold- ing assistance from or occupied by families (6) in subsection (j)(1), in the first sen- ing company with total consolidated assets receiving housing assistance from the De- tence, by striking ‘‘$50,000,000,000’’ and in- of less than $250,000,000,000 from any pruden- partment; and serting ‘‘$250,000,000,000’’. tial standard under section 165 of the Finan- (3) recommendations for legislation to im- (b) RULE OF CONSTRUCTION.—Nothing in cial Stability Act of 2010 (12 U.S.C. 5365). prove lead-based paint hazard prevention and subsection (a) shall be construed to limit— (4) RULE OF CONSTRUCTION.—Nothing in this abatement. (1) the authority of the Board of Governors section shall be construed to prohibit the of the Federal Reserve System, in pre- Board of Governors of the Federal Reserve SEC. 313. FORECLOSURE RELIEF AND EXTENSION scribing prudential standards under section System from issuing an order or rule making FOR SERVICEMEMBERS. 165 of the Financial Stability Act of 2010 (12 under section 165(a)(2)(C) of the Financial Section 710(d) of the Honoring America’s U.S.C. 5365) or any other law, to tailor or dif- Stability Act of 2010 (12 U.S.C. 5365(a)(2)(C)), Veterans and Caring for Camp Lejeune Fami- ferentiate among companies on an individual as added by this section, before the effective lies Act of 2012 (Public Law 112–154; 50 U.S.C. basis or by category, taking into consider- date described in paragraph (1). 3953 note) is amended by striking paragraphs ation their capital structure, riskiness, com- (e) SUPERVISORY STRESS TEST.—Beginning (1) and (3). plexity, financial activities (including finan- on the effective date described in subsection

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1563 (d)(1), the Board of Governors of the Federal the total value of deposits of the custodial tion) are substantially similar to the listing Reserve System shall, on a periodic basis, bank that are linked to fiduciary or custo- standards applicable to securities described conduct supervisory stress tests of bank dial and safekeeping accounts shall be taken in subparagraph (A)’’; holding companies with total consolidated into account when calculating the supple- (3) in subparagraph (C), by striking ‘‘or assets equal to or greater than mentary leverage ratio as applied to the cus- (B)’’; and $100,000,000,000 and total consolidated assets todial bank. (4) by redesignating subparagraphs (B) and of less than $250,000,000,000 to evaluate (c) RULE OF CONSTRUCTION.—Nothing in (C) as subparagraphs (A) and (B), respec- whether such bank holding companies have subsection (b) shall be construed to limit the tively. the capital, on a total consolidated basis, authority of the appropriate Federal banking SEC. 502. SEC STUDY ON ALGORITHMIC TRADING. necessary to absorb losses as a result of ad- agencies to tailor or adjust the supple- (a) IN GENERAL.—Not later than 18 months verse economic conditions. mentary leverage ratio or any other leverage after the date of enactment of this Act, the (f) GLOBAL SYSTEMICALLY IMPORTANT BANK ratio for any company that is not a custodial staff of the Securities and Exchange Com- HOLDING COMPANIES.—Any bank holding bank. mission shall submit to the Committee on company, regardless of asset size, that has SEC. 403. TREATMENT OF CERTAIN MUNICIPAL Banking, Housing, and Urban Affairs of the been identified as a global systemically im- OBLIGATIONS. Senate and the Committee on Financial portant BHC under section 217.402 of title 12, (a) IN GENERAL.—Section 18 of the Federal Services of the House of Representatives a Code of Federal Regulations, shall be consid- Deposit Insurance Act (12 U.S.C. 1828) is report on the risks and benefits of algo- ered a bank holding company with total con- amended— rithmic trading in capital markets in the solidated assets equal to or greater than (1) by moving subsection (z) so that it ap- United States. $250,000,000,000 with respect to the applica- pears after subsection (y); and (b) MATTERS REQUIRED TO BE INCLUDED.— tion of standards or requirements under— (2) by adding at the end the following: The matters covered by the report required (1) this section; ‘‘(aa) TREATMENT OF CERTAIN MUNICIPAL by subsection (a) shall include the following: (2) sections 116(a), 121(a), 155(d), 163(b), 164, OBLIGATIONS.— (1) An assessment of the effect of algo- and 165 of the Financial Stability Act of 2010 ‘‘(1) DEFINITIONS.—In this subsection— rithmic trading in equity and debt markets (12 U.S.C. 5326(a), 5331(a), 5345(d), 5363(b), 5364, ‘‘(A) the term ‘investment grade’, with re- in the United States on the provision of li- 5365); and spect to an obligation, has the meaning quidity in stressed and normal market condi- (3) paragraph (2)(A) of the second sub- given the term in section 1.2 of title 12, Code tions. section (s) (relating to assessments) of sec- of Federal Regulations, or any successor (2) An assessment of the benefits and risks tion 11 of the Federal Reserve Act (12 U.S.C. thereto; to equity and debt markets in the United 248(s)(2)). ‘‘(B) the term ‘liquid and readily-market- States by algorithmic trading. (g) CLARIFICATION FOR FOREIGN BANKS.— able’ has the meaning given the term in sec- Nothing in this section shall be construed (3) An analysis of whether the activity of tion 249.3 of title 12, Code of Federal Regula- algorithmic trading and entities that engage to— tions, or any successor thereto; and (1) affect the legal effect of the final rule of in algorithmic trading are subject to appro- ‘‘(C) the term ‘municipal obligation’ means priate Federal supervision and regulation. the Board of Governors of the Federal Re- an obligation of— serve System entitled ‘‘Enhanced Prudential (4) A recommendation of whether— ‘‘(i) a State or any political subdivision (A) based on the analysis described in para- Standards for Bank Holding Companies and thereof; or Foreign Banking Organizations’’ (79 Fed. graphs (1), (2), and (3), any changes should be ‘‘(ii) any agency or instrumentality of a made to regulations; and Reg. 17240 (March 27, 2014)) as applied to for- State or any political subdivision thereof. eign banking organizations with total con- (B) the Securities and Exchange Commis- ‘‘(2) MUNICIPAL OBLIGATIONS.—For purposes solidated assets equal to or greater than sion needs additional legal authorities or re- of the final rule entitled ‘Liquidity Coverage sources to effect the changes described in $100,000,000,000; or Ratio: Liquidity Risk Measurement Stand- (2) limit the authority of the Board of Gov- subparagraph (A). ards’ (79 Fed. Reg. 61439 (October 10, 2014)), SEC. 503. ANNUAL REVIEW OF GOVERNMENT- ernors of the Federal Reserve System to re- the final rule entitled ‘Liquidity Coverage quire the establishment of an intermediate BUSINESS FORUM ON CAPITAL FOR- Ratio: Treatment of U.S. Municipal Securi- MATION. holding company under, implement en- ties as High-Quality Liquid Assets’ (81 Fed. Section 503 of the Small Business Invest- hanced prudential standards with respect to, Reg. 21223 (April 11, 2016)), and any other reg- ment Incentive Act of 1980 (15 U.S.C. 80c–1) is or tailor the regulation of a foreign banking ulation that incorporates a definition of the amended by adding at the end the following: organization with total consolidated assets term ‘high-quality liquid asset’ or another ‘‘(e) The Commission shall— equal to or greater than $100,000,000,000. substantially similar term, the appropriate ‘‘(1) review the findings and recommenda- SEC. 402. SUPPLEMENTARY LEVERAGE RATIO Federal banking agencies shall treat a mu- tions of the forum; and FOR CUSTODIAL BANKS. nicipal obligation as a high-quality liquid ‘‘(2) each time the forum submits a finding (a) DEFINITION.—In this section, the term asset that is a level 2B liquid asset if that ‘‘custodial bank’’ means any depository in- or recommendation to the Commission, obligation is, as of the date of calculation— stitution holding company predominantly promptly issue a public statement— ‘‘(A) liquid and readily-marketable; and engaged in custody, safekeeping, and asset ‘‘(A) assessing the finding or recommenda- ‘‘(B) investment grade.’’. servicing activities, including any insured tion of the forum; and (b) AMENDMENT TO LIQUIDITY COVERAGE depository institution subsidiary of such a ‘‘(B) disclosing the action, if any, the Com- RATIO REGULATIONS.—Not later than 90 days holding company. mission intends to take with respect to the after the date of enactment of this Act, the (b) REGULATIONS.— finding or recommendation.’’. Federal Deposit Insurance Corporation, the (1) DEFINITION.—In this subsection, the SEC. 504. SUPPORTING AMERICA’S INNOVATORS. term ‘‘central bank’’ means— Board of Governors of the Federal Reserve Section 3(c)(1) of the Investment Company (A) the Federal Reserve System; System, and the Comptroller of the Currency Act of 1940 (15 U.S.C. 80a–3(c)(1)) is amend- (B) the European Central Bank; and shall amend the final rule entitled ‘‘Liquid- ed— (C) central banks of member countries of ity Coverage Ratio: Liquidity Risk Measure- (1) in the matter preceding subparagraph the Organisation for Economic Co-operation ment Standards’’ (79 Fed. Reg. 61439 (October (A), by inserting ‘‘(or, in the case of a quali- and Development, if— 10, 2014)) and the final rule entitled ‘‘Liquid- fying venture capital fund, 250 persons)’’ (i) the member country has been assigned a ity Coverage Ratio: Treatment of U.S. Mu- after ‘‘one hundred persons’’; and zero percent risk weight under sections 3.32, nicipal Securities as High-Quality Liquid As- (2) by adding at the end the following: 217.32, and 324.32 of title 12, Code of Federal sets’’ (81 Fed. Reg. 21223 (April 11, 2016)) to ‘‘(C)(i) The term ‘qualifying venture cap- Regulations, or any successor regulation; implement the amendments made by this ital fund’ means a venture capital fund that and section. has not more than $10,000,000 in aggregate (ii) the sovereign debt of such member TITLE V—ENCOURAGING CAPITAL capital contributions and uncalled com- country is not in default or has not been in FORMATION mitted capital, with such dollar amount to default during the previous 5 years. SEC. 501. NATIONAL SECURITIES EXCHANGE REG- be indexed for inflation once every 5 years by (2) REGULATIONS.—The appropriate Federal ULATORY PARITY. the Commission, beginning from a measure- banking agencies shall promulgate regula- Section 18(b)(1) of the Securities Act of ment made by the Commission on a date se- tions to amend sections 3.10, 217.10, and 324.10 1933 (15 U.S.C. 77r(b)(1)) is amended— lected by the Commission, rounded to the of title 12, Code of Federal Regulations, to (1) by striking subparagraph (A); nearest $1,000,000. specify that— (2) in subparagraph (B)— ‘‘(ii) The term ‘venture capital fund’ has (A) subject to subparagraph (B), funds of a (A) by inserting ‘‘a security designated as the meaning given the term in section custodial bank that are deposited with a cen- qualified for trading in the national market 275.203(l)–1 of title 17, Code of Federal Regu- tral bank shall not be taken into account system pursuant to section 11A(a)(2) of the lations, or any successor regulation.’’. when calculating the supplementary lever- Securities Exchange Act of 1934 (15 U.S.C. SEC. 505. SECURITIES AND EXCHANGE COMMIS- age ratio as applied to the custodial bank; 78k–1(a)(2)) that is’’ before ‘‘listed’’; and SION OVERPAYMENT CREDIT. and (B) by striking ‘‘that has listing standards (a) DEFINITIONS.—In this section— (B) with respect to the funds described in that the Commission determines by rule (on (1) the term ‘‘Commission’’ means the Se- subparagraph (A), any amount that exceeds its own initiative or on the basis of a peti- curities and Exchange Commission;

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1564 CONGRESSIONAL RECORD — SENATE March 8, 2018 (2) the term ‘‘national securities associa- Price Index for All Urban Consumers pub- (1) in subsection (a)— tion’’ means an association that is registered lished by the Bureau of Labor Statistics, (A) by redesignating paragraphs (1) under section 15A of the Securities Exchange rounding to the nearest $1,000,000. through (8) as paragraphs (2) through (9), re- Act of 1934 (15 U.S.C. 78o–3); and SEC. 508. IMPROVING ACCESS TO CAPITAL. spectively; and (3) the term ‘‘national securities ex- The Securities and Exchange Commission (B) by inserting before paragraph (2), as so change’’ means an exchange that is reg- shall amend— redesignated, the following: istered as a national securities exchange (1) section 230.251 of title 17, Code of Fed- ‘‘(1) the term ‘cosigner’— under section 6 of the Securities Exchange eral Regulations, to remove the requirement ‘‘(A) means any individual who is liable for Act of 1934 (15 U.S.C. 78f). that the issuer not be subject to section 13 or the obligation of another without compensa- (b) CREDIT FOR OVERPAYMENT OF FEES.— 15(d) of the Securities Exchange Act of 1934 tion, regardless of how designated in the con- Notwithstanding section 31(j) of the Securi- (15 U.S.C. 78a et seq.) immediately before the tract or instrument with respect to that ob- ties Exchange Act of 1934 (15 U.S.C. 78ee(j)), offering; and ligation, other than an obligation under a and subject to subsection (c) of this section, (2) section 230.257 of title 17, Code of Fed- private education loan extended to consoli- if a national securities exchange or a na- eral Regulations, with respect to an offering date a consumer’s pre-existing private edu- tional securities association has paid fees described in section 230.251(a)(2) of title 17, cation loans; and assessments to the Commission in an Code of Federal Regulations, to deem any ‘‘(B) includes any person the signature of amount that is more than the amount that issuer that is subject to section 13 or 15(d) of which is requested as condition to grant the exchange or association was required to the Securities Exchange Act of 1934 as hav- credit or to forbear on collection; and pay under section 31 of the Securities Ex- ing met the periodic and current reporting ‘‘(C) does not include a spouse of an indi- change Act of 1934 (15 U.S.C. 78ee) and, not requirements of section 230.257 of title 17, vidual described in subparagraph (A), the sig- later than 10 years after the date of such Code of Federal Regulations, if such issuer nature of whom is needed to perfect the secu- payment, the exchange or association in- meets the reporting requirements of section rity interest in a loan.’’; and forms the Commission about the payment of 13 of the Securities Exchange Act of 1934. (2) by adding at the end the following: such excess amount, the Commission shall SEC. 509. PARITY FOR CLOSED-END COMPANIES ‘‘(g) ADDITIONAL PROTECTIONS RELATING TO offset future fees and assessments due by REGARDING OFFERING AND PROXY BORROWER OR COSIGNER OF A PRIVATE EDU- that exchange or association in an amount RULES. CATION LOAN.— that is equal to the difference between the (a) REVISION TO RULES.—Not later than the ‘‘(1) PROHIBITION ON AUTOMATIC DEFAULT IN amount that the exchange or association end of the 1-year period beginning on the CASE OF DEATH OR BANKRUPTCY OF NON-STU- paid and the amount that the exchange or date of enactment of this Act, the Securities DENT OBLIGOR.—With respect to a private association was required to pay under such and Exchange Commission shall propose and, education loan involving a student obligor section 31. not later than 2 years after the date of enact- and 1 or more cosigners, the creditor shall (c) APPLICABILITY.—Subsection (b) shall ment of this Act, the Securities and Ex- not declare a default or accelerate the debt apply only to fees and assessments that a na- change Commission shall finalize any rules, against the student obligor on the sole basis tional securities exchange or a national se- as appropriate, to allow any closed-end com- of a bankruptcy or death of a cosigner. curities association was required to pay to pany, as defined in section 5(a)(2) of the In- ‘‘(2) COSIGNER RELEASE IN CASE OF DEATH OF the Commission before the date of enact- vestment Company Act of 1940 (15 U.S.C. 80a– BORROWER.— ment of this Act. 5), that is registered as an investment com- ‘‘(A) RELEASE OF COSIGNER.—The holder of SEC. 506. U.S. TERRITORIES INVESTOR PROTEC- pany under such Act, and is listed on a na- a private education loan, when notified of TION. tional securities exchange or that makes the death of a student obligor, shall release (a) IN GENERAL.—Section 6(a) of the Invest- periodic repurchase offers pursuant to sec- within a reasonable timeframe any cosigner ment Company Act of 1940 (15 U.S.C. 80a–6(a)) tion 270.23c–3 of title 17, Code of Federal Reg- from the obligations of the cosigner under is amended— ulations, to use the securities offering and the private education loan. (1) by striking paragraph (1); and proxy rules, subject to conditions the Com- ‘‘(B) NOTIFICATION OF RELEASE.—A holder (2) by redesignating paragraphs (2) through mission determines appropriate, that are or servicer of a private education loan, as ap- (5) as paragraphs (1) through (4), respec- available to other issuers that are required plicable, shall within a reasonable time- tively. to file reports under section 13 or section frame notify any cosigners for the private (b) EFFECTIVE DATE AND SAFE HARBOR.— 15(d) of the Securities Exchange Act of 1934 education loan if a cosigner is released from (1) EFFECTIVE DATE.—Except as provided in (15 U.S.C. 78m; 78o(d)). Any action that the the obligations of the cosigner for the pri- paragraph (2), the amendment made by sub- Commission takes pursuant to this sub- vate education loan under this paragraph. section (a) shall take effect on the date of section shall consider the availability of in- ‘‘(C) DESIGNATION OF INDIVIDUAL TO ACT ON enactment of this Act. formation to investors, including what dis- BEHALF OF THE BORROWER.—Any lender that (2) SAFE HARBOR.—With respect to a com- closures constitute adequate information to extends a private education loan shall pro- pany that is exempt under section 6(a)(1) of be designated as a ‘‘well-known seasoned vide the student obligor an option to des- the Investment Company Act of 1940 (15 issuer’’. ignate an individual to have the legal au- U.S.C. 80a–6(a)(1)) on the day before the date (b) TREATMENT IF REVISIONS NOT COM- thority to act on behalf of the student obli- of enactment of this Act, the amendment PLETED IN A TIMELY MANNER.—If the Com- gor with respect to the private education made by subsection (a) shall take effect on mission fails to complete the revisions re- loan in the event of the death of the student the date that is 3 years after the date of en- quired by subsection (a) by the time required obligor.’’. actment of this Act. by such subsection, any registered closed-end (b) APPLICABILITY.—The amendments made (3) EXTENSION OF SAFE HARBOR.—The Secu- company that is listed on a national securi- by subsection (a) shall only apply to private rities and Exchange Commission, by rule or ties exchange or that makes periodic repur- education loan agreements entered into on regulation upon its own motion, or by order chase offers pursuant to section 270.23c–3 of or after the date that is 180 days after the upon application, may conditionally or un- title 17, Code of Federal Regulations, shall be date of enactment of this Act. conditionally, under section 6(c) of the In- deemed to be an eligible issuer under the SEC. 602. REHABILITATION OF PRIVATE EDU- vestment Company Act of 1940 (15 U.S.C. 80a– final rule of the Commission titled ‘‘Securi- CATION LOANS. 6(c)), further delay the effective date for a ties Offering Reform’’ (70 Fed. Reg. 44722; (a) IN GENERAL.—Section 623(a)(1) of the company described in paragraph (2) for a published August 3, 2005). Fair Credit Reporting Act (15 U.S.C. 1681s– maximum of 3 years following the initial 3- (c) RULES OF CONSTRUCTION.— 2(a)(1)) is amended by adding at the end the year period if, before the end of the initial 3- (1) NO EFFECT ON RULE 482.—Nothing in this following: year period, the Commission determines that section or the amendments made by this sec- ‘‘(E) REHABILITATION OF PRIVATE EDUCATION such a rule, regulation, motion, or order is tion shall be construed to impair or limit in LOANS.— necessary or appropriate in the public inter- any way a registered closed-end company ‘‘(i) IN GENERAL.—Notwithstanding any est and for the protection of investors. from using section 230.482 of title 17, Code of other provision of this section, a consumer SEC. 507. ENCOURAGING EMPLOYEE OWNERSHIP. Federal Regulations, to distribute sales ma- may request a financial institution to re- Not later than 60 days after the date of the terial. move from a consumer report a reported de- enactment of this Act, the Securities and (2) REFERENCES.—Any reference in this sec- fault regarding a private education loan, and Exchange Commission shall revise section tion to a section of title 17, Code of Federal such information shall not be considered in- 230.701(e) of title 17, Code of Federal Regula- Regulations, or to any form or schedule accurate, if— tions, so as to increase from $5,000,000 to means such rule, section, form, or schedule, ‘‘(I) the financial institution chooses to $10,000,000 the aggregate sales price or or any successor to any such rule, section, offer a loan rehabilitation program which in- amount of securities sold during any con- form, or schedule. cludes, without limitation, a requirement of secutive 12-month period in excess of which TITLE VI—PROTECTIONS FOR STUDENT the consumer to make consecutive on-time the issuer is required under such section to BORROWERS monthly payments in a number that dem- deliver an additional disclosure to investors. SEC. 601. PROTECTIONS IN THE EVENT OF DEATH onstrates, in the assessment of the financial The Commission shall index for inflation OR BANKRUPTCY. institution offering the loan rehabilitation such aggregate sales price or amount every 5 (a) IN GENERAL.—Section 140 of the Truth program, a renewed ability and willingness years to reflect the change in the Consumer in Lending Act (15 U.S.C. 1650) is amended— to repay the loan; and

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1565 ‘‘(II) the requirements of the loan rehabili- ‘‘(ii) provide useful and necessary informa- EXECUTIVE SESSION tation program described in subclause (I) are tion to assist students at institutions of successfully met. higher education when making financial de- ‘‘(ii) BANKING AGENCIES.— cisions related to student borrowing. EXECUTIVE CALENDAR ‘‘(I) IN GENERAL.—If a financial institution ‘‘(B) BEST PRACTICES.—The best practices is supervised by a Federal banking agency, described in subparagraph (A) shall include Mr. MCCONNELL. Mr. President, I the financial institution shall seek written the following: move to proceed to executive session to approval concerning the terms and condi- ‘‘(i) Methods to ensure that each student consider Calendar No. 598, Kevin tions of the loan rehabilitation program de- has a clear sense of the student’s total bor- McAleenan. scribed in clause (i) from the appropriate rowing obligations, including monthly pay- The PRESIDING OFFICER. The Federal banking agency. ments, and repayment options. question is on agreeing to the motion. ‘‘(II) FEEDBACK.—An appropriate Federal ‘‘(ii) The most effective ways to engage The motion was agreed to. banking agency shall provide feedback to a students in financial literacy education, in- The PRESIDING OFFICER. The financial institution within 120 days of a re- cluding frequency and timing of communica- clerk will report the nomination. quest for approval under subclause (I). tion with students. The bill clerk read the nomination of ‘‘(iii) LIMITATION.— ‘‘(iii) Information on how to target dif- Kevin K. McAleenan, of Hawaii, to be ‘‘(I) IN GENERAL.—A consumer may obtain ferent student populations, including part- the benefits available under this subsection time students, first-time students, and other Commissioner of U.S. Customs and with respect to rehabilitating a loan only 1 nontraditional students. Border Protection, Department of time per loan. ‘‘(iv) Ways to clearly communicate the im- Homeland Security. ‘‘(II) RULE OF CONSTRUCTION.—Nothing in portance of graduating on a student’s ability CLOTURE MOTION this subparagraph may be construed to re- to repay student loans. Mr. MCCONNELL. Mr. President, I quire a financial institution to offer a loan ‘‘(C) MAINTENANCE OF BEST PRACTICES.— send a cloture motion to the desk. rehabilitation program or to remove any re- The Commission shall maintain and periodi- ported default from a consumer report as a The PRESIDING OFFICER. The clo- cally update the best practices information ture motion having been presented consideration of a loan rehabilitation pro- required under this paragraph and make the gram, except as described in clause (i). best practices available to the public. under rule XXII, the Chair directs the ‘‘(iv) DEFINITIONS.—For purposes of this ‘‘(D) RULE OF CONSTRUCTION.—Nothing in clerk to read the motion. subparagraph— this paragraph shall be construed to require The bill clerk read as follows: ‘‘(I) the term ‘appropriate Federal banking an institution of higher education to adopt CLOTURE MOTION agency’ has the meaning given the term in the best practices required under this para- We, the undersigned Senators, in accord- section 3 of the Federal Deposit Insurance graph.’’. ance with the provisions of rule XXII of the Act (12 U.S.C. 1813); and Standing Rules of the Senate, do hereby ‘‘(II) the term ‘private education loan’ has CLOTURE MOTION move to bring to a close debate on the nomi- the meaning given the term in section 140(a) Mr. MCCONNELL. Mr. President, I nation of Kevin K. McAleenan, of Hawaii, to of the Truth in Lending Act (15 U.S.C. send a cloture motion to the desk for be Commissioner of U.S. Customs and Border 1650(a)).’’. amendment No. 2151, as modified. (b) GAO STUDY.— Protection, Department of Homeland Secu- The PRESIDING OFFICER. The clo- (1) STUDY.—The Comptroller General of the rity. United States shall conduct a study, in con- ture motion having been presented Mitch McConnell, Thom Tillis, John Cor- sultation with the appropriate Federal bank- under rule XXII, the Chair directs the nyn, Roy Blunt, John Barrasso, Rich- ing agencies, regarding— clerk to read the motion. ard Burr, Richard C. Shelby, Mike (A) the implementation of subparagraph The bill clerk read as follows: Crapo, Shelley Moore Capito, Todd (E) of section 623(a)(1) of the Fair Credit Re- Young, Jeff Flake, Cory Gardner, Ron CLOTURE MOTION porting Act (15 U.S.C. 1681s–2(a)(1)) (referred Johnson, Michael B. Enzi, John Ken- to in this paragraph as ‘‘the provision’’), as We, the undersigned Senators, in accord- nedy, Susan M. Collins, James added by subsection (a); ance with the provisions of rule XXII of the Lankford. (B) the estimated operational, compliance, Standing Rules of the Senate, do hereby Mr. MCCONNELL. Mr. President, I and reporting costs associated with the re- move to bring to a close debate on Senate ask unanimous consent that the man- quirements of the provision; amendment No. 2151, as modified, to Cal- datory quorum calls for the cloture (C) the effects of the requirements of the endar No. 287, S. 2155, a bill to promote eco- nomic growth, provide tailored regulatory motions be waived. provision on the accuracy of credit report- The PRESIDING OFFICER. Without ing; relief, and enhance consumer protections, (D) the risks to safety and soundness, if and for other purposes. objection, it is so ordered. any, created by the loan rehabilitation pro- Mitch McConnell, Tom Cotton, Bob The Senator from Idaho. grams described in the provision; and Corker, Ron Johnson, John Barrasso, ORDER OF BUSINESS (E) a review of the effectiveness and im- Cory Gardner, Steve Daines, Mike Mr. CRAPO. Mr. President, I would pact on the credit of participants in any loan Crapo, Deb Fischer, Shelley Moore Cap- like to give an update to all of our col- rehabilitation programs described in the pro- ito, Mike Rounds, Jeff Flake, John leagues about where we are on S. 2155. vision and whether such programs improved Kennedy, Johnny Isakson, James We continue to be open and ready for Lankford, Bill Cassidy, John Cornyn. the ability of participants in the programs to amendments on our side. We have a access credit products. CLOTURE MOTION number that we are ready to proceed (2) REPORT.—Not later than 1 year after Mr. MCCONNELL. Mr. President, I forward with, and we so far have not the date of enactment of this Act, the Comp- send a cloture motion to the desk for troller General of the United States shall received agreement from the other side submit to Congress a report that contains all the bill. to move forward. We hope that we can findings and determinations made in con- The PRESIDING OFFICER. The clo- avoid this slowdown and start moving ducting the study required under paragraph ture motion having been presented forward by setting votes on amend- (1). under rule XXII, the Chair directs the ments as soon as we can, and we will SEC. 603. BEST PRACTICES FOR HIGHER EDU- clerk to read the motion. continue to work to try to achieve CATION FINANCIAL LITERACY. The bill clerk read as follows: Section 514(a) of the Financial Literacy that. and Education Improvement Act (20 U.S.C. CLOTURE MOTION It is my hope that we will be able to 9703(a)) is amended by adding at the end the We, the undersigned Senators, in accord- get heavily engaged in and resolve the following: ance with the provisions of rule XXII of the amendment stage of this legislation ‘‘(3) BEST PRACTICES FOR TEACHING FINAN- Standing Rules of the Senate, do hereby soon so that we can continue to move CIAL LITERACY.— move to bring to a close debate on Calendar forward expeditiously. ‘‘(A) IN GENERAL.—After soliciting public No. 287, S. 2155, a bill to promote economic I thank the Chair. comments and consulting with and receiving growth, provide tailored regulatory relief, I yield the floor. input from relevant parties, including a di- and enhance consumer protections, and for I suggest the absence of a quorum. verse set of institutions of higher education other purposes. The PRESIDING OFFICER. The and other parties, the Commission shall, by Mitch McConnell, Tom Cotton, Bob clerk will call the roll. not later than 1 year after the date of enact- Corker, Ron Johnson, John Barrasso, ment of the Economic Growth, Regulatory Cory Gardner, Steve Daines, Mike The bill clerk proceeded to call the Relief, and Consumer Protection Act, estab- Crapo, Deb Fischer, Shelley Moore Cap- roll. lish best practices for institutions of higher ito, Mike Rounds, Jeff Flake, John Ms. WARREN. Mr. President, I ask education regarding methods to— Kennedy, Johnny Isakson, James unanimous consent that the order for ‘‘(i) teach financial literacy skills; and Lankford, Bill Cassidy, John Cornyn. the quorum call be rescinded.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1566 CONGRESSIONAL RECORD — SENATE March 8, 2018 The PRESIDING OFFICER. Without and busts that rocked the country itol Hill pushing, pulling, cajoling, run- objection, it is so ordered. every few years. But after the unem- ning from the House to the Senate and ECONOMIC GROWTH, REGULATORY RELIEF, AND ployment rate topped 20 percent in the back again, and most of this was hap- CONSUMER PROTECTION BILL 1930s and the U.S. economy shrunk by pening behind closed doors. But on a Ms. WARREN. Mr. President, 10 about 30 percent, Washington—this clear, cold day in February of 1999, years ago, millions of American fami- Congress—finally got its act together eight bankers and two lobbyists testi- lies were on the verge of devastation. to pass some laws. fied in front of the Senate Banking The failure of Bear Stearns in March of Here is what they did. First, they Committee, and the knives were out 2008 was the first major signal of a looked at all of the places where people for Glass-Steagall. The euphemism coming financial crisis that would cost put their money—banks, home, mar- people used then was ‘‘modernization.’’ 9 million people their jobs and millions kets—and then they built regulators When lobbyists start talking about more people their homes or their sav- for all of those different kinds of in- modernization and clarification, it is ings. Lives and plans and dreams would vestments. Congress did something time to buy a parachute. be crushed—and even after the econ- really smart. It put a law in place Let me tell you about KeyCorp, one omy began to recover its footing, mil- called the Glass-Steagall Act. It broke of the banks that would be taken off lions of American families would have up the biggest banks, and it separated the watch list in the bill we are going to spend years just to get back to the banks that take deposits and make to be voting on in the coming days. where they started before 2008. A lot of mortgages from high-risk institutions Back in 1999, the CEO of that company those families have given up the dream like investment banks. testified that the ‘‘financial law mod- of home ownership forever, and many This worked reasonably well for ernization that strengthens our finan- are still struggling today. about half a century. There wasn’t a cial institutions in and of itself will en- But in the next few days, with broad single major financial crisis. But then, hance safety and soundness.’’ Think support among Republicans and far too starting in the late 1970s and early about what that means. Behind the much support among Democrats, the 1980s, bankers, looking for higher prof- buzzwords, that CEO was making the Senate is on the verge of passing a bill its and bigger paychecks, set their amazing claim that if banks were just that puts American families in danger sights on government rules. They allowed to take more risks and make of that same devastation all over wanted less regulation and more free- more short-term profits, it would actu- again. dom to trick their customers, to trap ally make the financial system safer. Over the last few days, I have talked their customers, and to cheat their In other words, if we just deregulate about what this bill will do. I have ex- customers. the banks, they will become safer. plained how it strips consumer protec- It started in the savings and loan in- He wasn’t the only one to make a tions for American families who are dustry. These institutions, which spe- claim like that. The vice chairman of trying to buy a home, particularly in cialized in home mortgages, started to JPMorgan said: ‘‘There is a consensus low-income communities and commu- become insolvent because of the rising shared by most financial firms and nities of color. I have talked about how inflation and flaws in their business their customers, as well as policy- this bill will peel away vital safeguards model. So the bank lobbyists had a so- makers, that these rules restrict com- we put on large banks after the finan- lution: Deregulate them. They said: In- petition, reduce consumer choice, and cial crisis to make sure they can’t stead of just safe mortgages, why don’t are not necessary to protect consumers crash the economy all over again. we let these institutions put out some or insured financial institutions.’’ In Now, as the bill is on the verge of riskier stuff in hopes that some of other words, rules are the problem—if passing the Senate, I want to stop and these gambles will pay off big. The banks could just do whatever they just ask a basic question: Why? Who Reagan administration agreed, but the wanted, everything would be great. exactly is asking us to do this? plan failed. Over the next decade, tax- Guess what. The pitch worked. Nine Our constituents hate it. A recent payers spent $132 billion to bail out months later, in late 1999, a bill to re- poll showed that an overwhelming ma- these institutions. That was in the peal key parts of Glass-Steagall and jority of Americans oppose this bill. So 1980s. roll back other financial rules passed why is it that the only thing Wash- But why stop there? Deregulating the both Houses of Congress overwhelm- ington can agree to do on a bipartisan thrifts, as disastrous as it was, was just ingly. Ninety Senators voted yes. Sen- basis in this Congress is to help out small ball. Thrifts were allowed to ator after Senator, including quite a giant banks? gamble only with a chunk of their own few who are still here today, came to I will tell you why. Washington’s am- money. The lobbyists wanted to tear the Senate floor and praised the bill for nesia is legendary. We go through the down all of the barriers, throwing sav- modernizing our financial rules and same cycle like clockwork. When the ings accounts and risky, complicated getting rid of unnecessary and out- economy is looking good, lobbyists securities into one big institution and dated requirements. flood Congress and tell politicians it is then letting that bank gamble with all But not everyone was fooled. Some perfectly safe to roll back the rules on of it. Senators knew better. Senator Paul the big banks. It is always the same set They dreamt of a Wall Street where Wellstone from Minnesota warned that of arguments: America needs more banks could take the money in grand- Congress ‘‘seem[s] determined to lending for more economic growth. Our ma’s checking account and use it to unlearn the lessons from our past mis- country is losing ground to its com- gamble in the markets. They wanted to takes . . . [and] is about to repeal petitors. Banks have learned their les- tear down the wall Glass-Steagall had [Glass-Steagall] without putting any son and don’t need rules to behave re- created between boring banking and comparable safeguard in its place.’’ sponsibly. And here is the kicker ques- high-risk trading. Senator Byron Dorgan of North Da- tion: What could possibly go wrong? In 1999, the conditions were perfect to kota was especially prescient. He said: rip up the rules. Why? The economy Every time, it works. I think we will look back in 10 years’ time It works even though the lessons of was cruising. Unemployment was down and say we should not have done this but we history are clear. Strong financial to 4.2 percent. The markets were on did because we forgot the lessons of the past, rules help create a strong economy fire. The Dow, the S&P 500, and the and that that which is true in the 1930’s is that works for everyone, and when we NASDAQ smashed every record in their true in 2010. . . . We now have decided in the weaken the rules, it sets the stage for paths. In fact, the NASDAQ grew at name of modernization to forget the lessons another financial crisis—a crisis that, 85.6 percent in 1999, the biggest annual of the past, of safety and of soundness. every time, hits America’s working jump for a major index in U.S. history. But Congress ignored their warnings. families the hardest. One respected finance professor gushed: For the bargain price of $300 million in Let’s go back to the beginning of the It’s amazing. Every year we say it can’t be lobbyist bills, the big banks saw their 20th century. A lot of our financial reg- another year of 20 percent-plus (gain)—and wildest dreams come true. With the re- ulations in the United States come then every year it’s a 20 percent-plus gain. peal of Glass-Steagall, too-big-to-fail from the Great Depression. Before It was the prime time for the bank megabanks were born. Citibank be- then, Washington ignored the booms lobbyists to strike. They swarmed Cap- came Citigroup. J.P. Morgan became

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1567 JPMorgan Chase. The banks got bigger below 5 percent for the first time since Congress. That includes 68 percent of and bigger and bigger. before the 2008 crisis. In 2017, the Dow people who voted for Donald Trump. But the lobbyists weren’t done yet. jumped 25 percent, and the NASDAQ Everyone knows that Congress sold Over the next decade, they tried over grew by 28 percent. And you know what them out last time, and everyone ex- and over to expand the loopholes that that means—it means the bank lobby- pects it to happen again this time. they had punched until both the regu- ists have once again taken center As we prepare to vote on this bill, I lators and the regulations gave way. stage, insisting that it is safe to de- ask my colleagues one more time, do By the middle of the decade, the condi- regulate their clients again, all in the the job you were sent here to do. Stand tions were right. Markets broke name of economic growth and empow- up for the people who sent us here. records. The unemployment rate was ering consumers. It is the same argu- Stop doing the bidding of big bank lob- below 5 percent. It was time for the ment as before. byists, and start working on the things lobbyists to go at it again. Hand-tai- Last spring, bank lobbyist Greg Baer that can make a difference in the lives lored suits and Gucci loafers swarmed said: of working people around this country. The American people need it. The Capitol Hill. Meetings were scheduled. After nearly a decade of fundamental and So were fundraisers. Their efforts again continuing changes to financial regulation, American people deserve it. The Amer- occasionally spilled out into the public now is an opportune time to review the effi- ican people will demand it. If you hearing rooms. cacy of our current bank regulatory frame- refuse to do it, don’t be surprised when This pitch might sound familiar. In work. My testimony will focus on reforms they hold you responsible. 2006, the head of risk at Citigroup, on that could directly and immediately enhance Mr. President, I yield the floor. economic growth. I suggest the absence of a quorum. behalf of the Financial Services Round- The PRESIDING OFFICER. The table, told the House Financial Serv- In other words, turn the big banks loose, and let’s see what they can do. clerk will call the roll. ices Committee: ‘‘The U.S. needs to The senior assistant legislative clerk modernize its capital regulations, and Harris Simmons, the CEO of Zions Bank, which will be kicked off the proceeded to call the roll. there are a variety of new approaches Mr. COONS. Mr. President, I ask watch list under the bill that is now that all represent a significant im- unanimous consent that the order for provement over the current system.’’ under consideration, recently testified the quorum call be rescinded. In other words, the regulations are out- that ‘‘the uncertainty surrounding The PRESIDING OFFICER. Without dated. [Dodd-Frank reforms] can cause banks objection, it is so ordered. Steve Bartlett, a former Congress- to withdraw or limit certain kinds of TRIBUTE TO MARY ANN KELLEY man who was a lobbyist for the 50 big- lending.’’ To put it another way: Get Mr. COONS. Mr. President, I rise in gest banks, told the Senate Banking out of the way and let the big banks this historic Chamber to offer my Committee in 2005: ‘‘Outdated laws and cheat their customers again. It is good thanks, my respect, and to pay homage regulations impose significant, and un- for bank profits. to an incredibly valued member of my necessary, burdens on financial serv- Here we go again. I get it. Our finan- staff who is about to retire from the ices firms, and these burdens not only cial regulations need work. There are U.S. Senate after decades of dedicated make our firms less efficient, but also things we could do to reduce the load service. increase the cost of financial products on community banks, and there are A New Englander by birth and a and services to consumers.’’ In other still big dangers to consumers that we Delawarian by choice, Mary Ann words, set the banks free, and let them should take up. But this bill isn’t Kelley has served as my deputy sched- do whatever they want. What could about the unfinished business of the uler now for 7 years and is due to retire possibly go wrong? last financial crisis; this bill is about tomorrow, March 9. In 2005, the head of the American laying the groundwork for the next fi- Mary Ann Kelley—or MAK, as she is Bankers Association told the com- nancial crisis. affectionately called in my office— mittee: ‘‘The cost of unnecessary pa- I will make a prediction. This bill started a career with the U.S. Senate perwork and red tape is a serious long- will pass, and if the banks get their way back in December 1990 as a staff term problem that will continue to way, in the next 10 years or so, there assistant for then-Senator Joseph erode the ability of banks to serve our will be another financial crisis. Of Robinette Biden, Jr. Except for a break customers and support the economic course, when the crash comes, the big in service, Mary Ann served on Senator growth of our communities.’’ In other banks will throw up their hands and Biden’s team until he resigned to be- words, in the end, these rules hurt con- say that it is not their fault, that no- come Vice President in 2009. She stayed sumers. Let the banks do whatever body could have seen it coming. Then on through the tenure of Senator Ted they want to consumers. they will run to Congress and beg for Kaufman and joined my scheduling Then, just as the lobbyists were gain- bailout money, and—let’s be blunt— team late in 2010. In her having served now three U.S. ing momentum, the economy they cre- they will probably get it. But just like Senators, Mary Ann brings a breadth of ated crashed. It was 2008, and millions in 2008, there will be no bailout for knowledge and experience to my front of families lost their homes, millions working families. Jobs will be lost, and office and scheduling team. She helps lost their savings, and millions lost lives will be destroyed. The American to maintain my schedule, helps to or- their jobs. But the lobbyists didn’t lose people, not the banks, will once again ganize and evaluate and to track hun- bear the burden. their jobs. They peddled myths about dreds of invitations and scheduling re- Then, caught in a fog of amnesia, the the economy and the financial system, quests to coworkers and constituents. lobbyists and regulators and elected of- and they kept right on working for the Mary Ann’s professionalism and busi- ficials in Washington will scratch their big banks. All during the efforts to ness acumen are unwavering and val- heads and wonder how in the world it pass financial regulations to get our ued. She always maintains her could have possibly happened again. economy out of the ditch, the bank lob- composure despite the stress and some- But the American people won’t be con- byists were there. They pulled in more times craziness this unique position of- fused about it at all. They never are. than $1 million a day lobbying against fers. My team in Delaware appreciates They are much smarter than the people financial reform. her ready wit, balanced judgment, and around here give them credit for. They When the American people started to calming presence. demand action in the wake of the 2008 won’t wonder why it happened; they Krista Brady, my talented casework crash, the reforms passed anyway. But will know why it happened. They will manager, said: the lobbyists didn’t give up. They know it was because the people in MAK adds that something extra Irish to didn’t go away. Before the ink was dry Washington ignored working people in the office. Every morning, she comes in on Dodd-Frank, they jumped right order to do the bidding of the guys in wearing her snazziest outfit, drinking her back in and started lobbying to roll fancy suits and the handmade shoes cappuccino from Starbucks, and ready to tell back the new rules. who write the fat campaign checks. a funny story. So here we are again. It took years, Look at the numbers. Seventy-eight Krista reminded me about Mary but the economy is humming again. In percent of Americans think big banks Ann’s love for cats, her famous Hal- 2016, the unemployment rate dipped have too much control over Members of loween mask, her curry chicken, and,

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1568 CONGRESSIONAL RECORD — SENATE March 8, 2018 of course, her wicked New England Besides MAK’s involvement with the share observations, even show photos spirit. Ministry of Caring, for many years, she of or brag about her grandkids. Mary Ann’s story is rooted deeper owned and operated her own excellent My dad, whom I miss dearly, was than in just her years of Senate serv- business, Creative Catering Cuisine. To born in Boston, MA, himself, and Mary ice. MAK’s authenticity, personality, this day, she still receives catering re- Ann, who never lost her remarkable and devotion to friends and family quests and calls from friends for cook- Boston accent, has provided me a fa- make her a staff favorite and valued ies, cakes, and other treats. Mary miliar and comforting presence when- member of my team. To properly honor Ann’s depth and variety of dishes are ever she speaks. Mary Ann, let me share some details unique and storied. Staff favorites in- I love her Massachusetts spirit, her about her background and her persona. clude MAK’s mouth-watering filet soul, and her positive attitude. Mary A graduate of Cardinal Spellman mignon, cranberry coffee cake, Irish Ann is a good and decent person and a High School and Framingham State cake, banana pudding, and a wide vari- great presence in our office. She is at University, Mary Ann was born and ety of pound cakes. Lynne Phifer, my the same time both a fixture and a lived in Massachusetts until she moved intern coordinator, speaks highly of breath of fresh air. to Delaware in 1979. Ask MAK about Mary Ann’s homemade oatmeal cook- Mary Ann’s work in the Senate and her hometown, and she will quickly ies and other confections. Lynne and her career as a chef shows us all the chime in with ‘‘Brockton, MA—home of the rest of the team, however, are importance of working hard and em- Rocky Marciano and Marvin Hagler!’’ unanimous in their vote for MAK’s bracing what you love, using your Thanks to Rocky and Marvin, world curry chicken. strengths to help your friends and heavyweight and middleweight boxing Mary Ann’s food is influential and, I neighbors and to better the country champions, Brockton is recognized as would say at times, even transcendent. and community. the City of Champions. I am confident, if MAK’s menu had ex- Mary Ann said she would miss all as- If Rocky and Marvin are Brockton’s pects of working with us in the Senate. boxing champions, Mary Ann is the isted in earlier times, it could have changed the course of history as we It has been such a big part of her life, city’s undisputed world champion in I know. Mary Ann, I know you will also cooking, whether it be baking, roast- know it. If this sustenance had been available in 1775, Founding Father Pat- miss the comradery of your coworkers ing, or toasting. Like Rocky and in the Delaware office. Marvin, Mary Ann has a passion and rick Henry may have exclaimed, ‘‘Give me Mary Ann’s curry chicken or give As a longtime chef, I am confident, talent for her own chosen sport, one Mary Ann, that you already have a rec- that she has practiced and refined over me death!’’ Mary Ann goes to great lengths, in ipe for retirement and will embrace the many years. Marvin Hagler explained joy of not working. Your retirement what makes a winner, and what Mary all seriousness, to prepare meals for those she loves. She gets the best and will surely be filled with activities Ann did to become a well-seasoned top such as cooking, knitting, and outings chef is the same thing. Marvin Hagler, freshest ingredients. Some on my staff remember the day Mary Ann returned with your friends Jill, Norma, Sue, and the boxer, once said, ‘‘Every fighter Tanya, and you will spend more time has got [to] be dedicated, learn how to from her lunch break with a half dozen lobsters—the main course for a dinner with your sons Michael and Terence, sacrifice, know what devotion is all daughters-in-law Nell and Jennifer, and about, make sure you’re paying atten- prepared in honor of her son’s birthday. Desiree Burritt, my immigration beloved grandchildren Cole, Mitch, tion and studying your art.’’ Meredith, and Nolan, who all live right Mary Ann learned to cook at an early case worker, who also worked for Sen- nearby, just over the line in Pennsyl- age. She will say that she was born ators Biden and Kaufman before me, vania. Whether their Nan is joining with a love of cooking. This interest is said: them for dinner or attending a something she has pursued through her Mary Ann has always been our in-house college years and into today. She chef, always there to pull up a chair, quick Unionville High School rowing event, I earned a bachelor’s of science in food to smile, laugh, and listen. MAK is like a know you will be there in high spirits, and nutrition from Framingham State mother to all of us. prepared with a great story and an in 1967 and subsequently mentored and Mary Ann may not know just how even better dessert. educated students as a home economics much she inspires and influences those Mary Ann, I know you look forward teacher for 5 years. Mary Ann taught around her. I have been moved to hear to trips to Westborough, MA, and to classes on food, nutrition, and, of and witness the impression that she spending holidays and warmer week- course, cooking. has made on my staff, on her friends, ends with Terence, Jennifer, Meredith, Over the decades, our very own MAK and her family. and Nolan. perfected a wide range of delicacies to Terry Wright, who also previously Let me conclude by saying to Mary soothe and feed family, friends, and fel- worked for Senator Biden—a member Ann, thank you for your years of serv- low Delawarians. Often, the people she of my Service Academy Selection ice to the Senate, to our community, fed and cared for were through her ef- Board—has known Mary Ann for many and to the people of the First State. forts at the Ministry of Caring in Wil- years. Terry said Mary Ann is ‘‘gen- You have been a valued member of my mington, DE. Mary Ann worked for a erous with an absolute willingness to team, and I will close with a tradi- decade as the head chef at the Ministry help anyone in any way she can. When tional Irish blessing: of Caring, a community-based non- she’s your friend,’’ Terry said, ‘‘you May there always be work for your hands to profit that provides a network of so- have a friend for life.’’ do. cial, health, and support services for Elena Sassaman, a newer member of May your purse always hold a coin or two. those who are living in poverty or who May the sun always shine on your window- my casework team, said: pane. are homeless. Mary Ann used her pro- Mary Ann is one of the nicest and most May a rainbow be certain to follow each fessional education, her faith, and her thoughtful people I’ve met both here, work- rain. experience to feed the souls of people ing in the Senate, and in everyday life. MAK May the hand of a friend be always near you. and provide them comfort through food was one of the first people to include me in May God fill your heart with gladness to served at the Ministry’s Emmanuel the office family dynamic when I first start- cheer you. Dining Room. ed. With that, Mary Ann, I offer you a When Mary Ann returned to the Sen- Elena has developed a love for knit- fond farewell and a thanks to you for ate after her break in service, she ral- ting, crocheting, and other crafts all you have done for Delaware and the lied her coworkers to volunteer and thanks to Mary Ann’s encouragement Senate. serve food monthly at the Emmanuel and valued friendship. Thank you. Dining Room, where I, too, have volun- When I am not in DC, I am usually in I yield the floor. teered. When I took office as a Senator, my Wilmington office in Delaware, and I suggest the absence of a quorum. we continued this outreach, and it we enjoy the opportunity to have lunch The PRESIDING OFFICER (Mr. CAS- served as a great opportunity for my as a group with everybody on the Dela- SIDY). The clerk will call the roll. casework team and others to connect ware staff. I love those lunches, listen- The senior assistant legislative clerk with constituents. ing to Mary Ann tell funny stories, proceeded to call the roll.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1569 Mr. MENENDEZ. Mr. President, I ask blind eye to these risks. Borrowers and location—continue to be dispropor- unanimous consent that the order for were steered into loans with low inter- tionately denied conventional mort- the quorum call be rescinded. est rates, often below 4 percent at the gages. These practices are nothing The PRESIDING OFFICER. Without start, but once the promotional period short of modern-day redlining. We see objection, it is so ordered. ended, these teaser rates disappeared, it in Camden, NJ, for example, where ECONOMIC GROWTH, REGULATORY RELIEF, AND higher interest rates kicked in, and Black applicants are still more than 21⁄2 CONSUMER PROTECTION BILL millions of borrowers suddenly saw times likelier to be denied than White Mr. MENENDEZ. Mr. President, I their mortgage payments go through applicants. rise to explain my opposition to the the roof—even doubling, in many cases. Now, 10 years after the crisis, Con- bill that is before the Senate, the bank- Between 2004 and 2006, one-third of all gress is poised to turn back the clock. ing deregulation bill, S. 2155. adjustable rate mortgages were de- Under this bill, some banks will once First, I would like to say I am ap- signed this way, and at a time of stag- again be able to offer mortgages with palled this is how the Senate is spend- nant wages, millions of families teaser rates of 4 percent that more ing its time this week. Three weeks couldn’t keep up. That is why a wave of than double in just 2 years, without ago, 17 students and teachers were foreclosures overtook our housing mar- ever verifying if a borrower could af- murdered when a teenager, armed with ket—displacing families, decimating ford a 9-percent interest rate, and all an AR–15 decorated with swastikas, home values, and destabilizing neigh- they have to do is keep the loans on opened fire at Stoneman Douglas High borhoods. From 2006 to 2014, more than their books. School in Florida, but this week we are 9.3 million families lost their homes to This bill will excuse 85 percent of not banning the sale of high-capacity foreclosure, sold their homes at a sig- banks from sharing the data we need to magazines that enable mass shooters nificant loss, or surrendered their identify discrimination and ensure all to fire 30, 40, or even 100 rounds with- homes to the bank. creditworthy borrowers have a fair out stopping to reload; we are not clos- For communities of color, the crisis shot at the American dream of home ing the gun show loophole or stopping was even worse. African-American and ownership. So if this sounds familiar, violent people from buying assault Latino borrowers were at least twice as that is because it is. History is repeat- weapons online with the click of a likely to receive a higher cost loan ing itself. mouse; we are not taking steps to re- than White applicants, even when con- Beyond making mortgage lending port more cases of severe mental ill- trolling for income and credit scores, riskier and less fair, this bill removes ness to the National Instant Criminal and they were nearly 50 percent more guardrails we put in place for 25 of the Background Check System; we are not likely to face foreclosure during the 38 largest banks in the country. These even passing President Trump’s pro- crisis. are the banks identified as system- posal to raise the age one can buy an So what did we do about it? Well, we ically important during the crisis—the assault weapon to 21 years. Simply put, passed laws to stop lenders from offer- banks that received $47 billion in bail- this week we are not doing anything to ing mortgages that were, in many outs. stop the next mass shooting from tak- ways, doomed to fail. We said that Now, I appreciate my colleagues who ing place. from now on banks and mortgage lend- point out this bill’s benefits for com- So what are we doing this week? ers would have to make a reasonable munity banks and credit unions—and I Well, this week the Republican ma- and good-faith determination that bor- mean that. That is a good thing. But I jority has brought to the floor legisla- rowers could pay back their loans by fear these provisions mask giveaways tion rolling back safeguards we passed looking at income, employment, credit that will make big banks bigger and, after the financial crisis of 2008—not history, monthly expenses, and other ultimately, hurt smaller banks strug- exactly something the American peo- metrics. We prohibited banks from gling to compete. Under title IV, for ple have been clamoring for. using these teaser rates to determine example, this bill significantly cuts I want to be clear why I oppose this whether a borrower could repay a loan. oversight of banks with assets between bill as written. It is not that I don’t We did the sensible thing, and we re- $50 billion and $250 billion. support measures that provide mean- quired them to make sure that bor- Have we forgotten so quickly the les- ingful relief to small banks, credit rowers could actually afford their pay- sons we learned after the crisis? Do we unions, and consumers. I do. It is not ments once the higher interest rates not remember how the government had that I don’t believe in reexamining reg- kicked in. to arrange forced mergers of Country- ulations and ways to reduce compli- We also passed reforms to better wide, with $200 billion in assets, and ance costs. I do. It is not that I don’t catch discriminatory lending practices National City, with $145 billion in as- agree with efforts to better calibrate because we know that, in many cases, sets, because their near-failures the rules of the road for small banks the riskiest products were offered to worked to spread risk from Wall Street and credit unions while strengthening minority communities. We asked to Main Street? protections for consumers investors banks to provide data that they al- Do we really want to weaken these and taxpayers. I do. Indeed, I would ready collected on things like debt-to- guardrails—the stress tests and the support a bill like that, but that is not income ratios, credit scores, loan-to- capital planning requirements to en- the bill we have before us today. value ratios, interest rates, and loan sure that banks can survive a crisis, The bill before us today brings back terms. This way, we could better iden- the living wills that ensure they have a risky mortgage lending practices that tify emerging risks and possible dis- feasible way to unwind if things go increase the likelihood of foreclosures. criminatory lending practices in our badly, and the minimum liquid assets It undermines our efforts to police dis- communities. Were all of these reforms they must hold in the event they lose criminatory lending practices, and it perfect? Of course not. Have they made access to funding markets? would allow 25 of America’s 38 biggest our mortgage lending system safer, When taxpayer dollars are on the banks to escape the safeguards we smarter, and fairer for credit bor- line, I don’t think it is unfair to ask adopted after the 2008 financial crisis— rowers? Absolutely. Does that mean we big banks to be safe and smart. On the a crisis that destroyed more than $12 still don’t face challenges? No. New contrary, it is unfair to the American trillion worth of American wealth, re- Jerseyans know that. Our State still people who will have to bail them out quired huge bank bailouts, sent our suffers the highest rate of foreclosure when and if they get into trouble. economy into a tailspin, and saddled us in the Nation, and many New Jersey Supporters of this bill are quick to with the great recession. neighborhoods still struggle with fre- point out that it preserves the Federal Ten years later, it is worth remem- quent foreclosures, abandoned homes, Reserve’s authority to take action if bering what caused that crisis—mort- and their painful consequences. they become concerned about a bank gages designed like ticking timebombs Likewise, discrimination still per- with less than $250 billion in assets. for home buyers and for our economy sists. I was appalled by a report re- Well, forgive me for not having con- at large, large financial institutions leased in January that showed African- fidence in regulators with a long his- making risky bets on those risky mort- American and Latino families—even tory of doing too little too late. That is gages, and regulators who turned a controlling for income, loan amount, exactly the kind of risk that taxpayers,

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1570 CONGRESSIONAL RECORD — SENATE March 8, 2018 homeowners, and investors can’t af- close data breeches and require a Fed- days. Anybody who took the oppor- ford. eral study of how these breeches im- tunity to watch all of that debate sees As the chairman of the Financial Cri- pact consumers over the long haul. that there is a strong bipartisan sup- sis Inquiry Commission recently wrote, Finally, I am proposing an amend- port for this bill and a strong debate ‘‘history has shown, time and again, ment that requires mutual funds to coming from some quarters trying to that the failure of financial firms that disclose to their shareholders whether say that the bill creates greater risk in are not among the largest mega-banks they invest in the gun industry, be- our financial community. I would like can pose systemic risks to financial cause it is downright offensive to be to address exactly what this bill does stability.’’ According to the Congres- considering a banking bill this week and then respond to some of those sional Budget Office, these weaker pro- instead of pressing corporate America charges, which I consider to be com- tections make it even more likely that to step up in the fight against gun vio- pletely unfounded. taxpayers will once again have to bail lence that rips our country apart year The Economic Growth, Regulatory out banks. after year. Relief, and Consumer Protection Act is At the end of the day, this bill injects These measures, if adopted, would aimed at rightsizing regulation for fi- tremendous risk into the system and make a bad bill a bit better, but as we nancial institutions—including com- undercuts our tools to have our finan- quickly approach the 10-year anniver- munity banks and credit unions—mak- cial cops on the beat actually work to sary of the government-backed bailout ing it easier for consumers to get mort- monitor the risk. So that leaves tax- of Bear Stearns, I cannot, in good con- gages and to obtain credit. science, vote to remove the guardrails payers on the hook if risk then turns I have said a number of times, and I we put in place to prevent big banks into crisis. Rather than protecting will repeat, back when we were debat- families, this bill is packed full of from playing fast and loose with our economy in the first place. ing the Dodd-Frank legislation about goodies for large banks and special in- 10 years ago, it was marketed to the terests, because consumers—the fami- The financial crisis and recession stripped trillions of dollars in wealth public as a bill to address excesses and lies who would suffer the most in an- problems on Wall Street by the big other crisis—don’t have a seat at the from communities all across the coun- try. While banks were bailed out, fami- megabanks of our country, but its pro- table. visions hit hardest on Main Street. As a member of the Banking Com- lies were left reeling with the con- As I have said, I actually held a news mittee, I worked in good faith to sequences. From foreclosure to job conference in Boise, ID—in my home amend this bill and make it better. I losses to hard-hit retirement accounts State—on Main Street. I said the cross- offered an amendment called Chris- and falling home values, the American hairs of this bill and the bulls-eye are topher’s Law to better protect con- people bore the brunt of the financial on Main Street, not Wall Street. sumers like the Bryski family in New crisis. For years, Washington protected Jersey. While mourning the tragic loss Wall Street from sensible regulations What has happened in the last 10 of their son Christopher, the Bryskis when we should have been protecting years? The Wall Street banks have were stunned to learn that they would consumers. Unfortunately, it took the been phenomenally profitable. They be responsible for paying an education greatest financial crisis since the Great have been very successful, and the their son could never use because they Depression for us to pass the Wall smaller banks—the credit unions, the had cosigned his private student loan. I Street Reform and Consumer Protec- community banks, even the regional appreciate that my colleagues incor- tion Act for us to make a fundamental banks—have been hammered. porated major components of Chris- choice to reject a system that took ad- We are losing credit unions and, more topher’s Law to protect families that vantage of consumers and instead specifically, community banks across suffer the tragic loss of a loved one stand for a banking system that is this Nation at an alarming pace, and into the manager’s package for this more fair, transparent, and account- the reason—the primary reason—is the bill. able to the American people. phenomenally significant increased When you look at the totality of the To quote the Spanish philosopher regulatory burden they face. bill’s provisions, the fact remains that George Santayana, ‘‘those who cannot I have heard colleagues of mine on we couldn’t get an inch for consumers remember the past are condemned to the floor in the last couple of days in exchange for the miles this bill gives repeat it.’’ Only in Washington would talking about specific community to big banks. Take, for example, my anyone think it is a good idea to com- banks and credit unions in their States amendment to enhance protections for memorate the 10-year anniversary of that have had so much pressure put on military servicemembers who often the financial crisis with a bill that them, so much burden and financial struggle to protect their credit while dares big banks to get bigger and in- costs put on them by the excessive reg- they are serving our country abroad or creases risks to taxpayers. ulations that they have either gone out the amendment I offered to prevent the I look forward to the day when this of business or stopped issuing mort- rewards of this bill from flowing to Congress strives to do better by the gages, just stopped doing mortgage banks that adopt punishing, Wells- working families who lost their homes, business or stopped doing loans of cer- Fargo-style sales cultures that put their jobs, and their life savings during tain types that are beneficial to our consumers at risk. These are just some the crisis. Hard-working families had small businesses. So the real victims of the pro-consumer, commonsense to fight their way back from the reces- aren’t even just the community banks amendments that were rejected in the sion without bailouts and are counting and credit unions; they are the peo- Banking Committee. on us to fight for them in Washington, ple—the people who want to get a loan Ultimately, I still believe Congress and that is what I intend to do. in their local communities and who are I yield the floor. could pass legislation that provides entirely worthy of getting a loan to I suggest the absence of a quorum. buy a house, but their credit unions targeted relief to community banks The PRESIDING OFFICER. The and community banks are no longer in and credit unions, but not in exchange clerk will call the roll. for erasing the standards that protect The legislative clerk proceeded to that business or they are no longer in working families and our economy call the roll. existence. That is what this bill is ad- from systemic risk. So you can bet Mr. CRAPO. Mr. President, I ask dressing. that I will be working here on the floor unanimous consent that the order for The bill also increases important to get those amendments included in the quorum call be rescinded. consumer protections for veterans, sen- full. Senator CORTEZ MASTO and I will The PRESIDING OFFICER. Without ior citizens, victims of fraud, and those offer an amendment to ensure that objection, it is so ordered. who fall on tough financial times. The banks report the data we need to police Mr. CRAPO. Mr. President, I rise provisions in this bill will directly ad- against discriminatory lending prac- again today to speak further on S. 2155, dress some of the problems I frequently tices. the Economic Growth, Regulatory Re- hear about from financial institutions. Likewise, I am offering an amend- lief, and Consumer Protection Act. Let me explain in a little more detail ment to require that consumer report- We have had a lot of discussion on just what that is. I have already dis- ing agencies like Equifax quickly dis- the floor about this bill in the last few cussed some.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1571 Community banks and credit unions certain loans from escrow require- meeting these rules, creates a dis- are simple institutions, focused on re- ments, our bill will ease the compli- proportionate burden on regional lationship lending and have special re- ance and regulatory reporting require- banks. Collectively, the incremental lationships with the people in their ments borne by many of these small fi- cost of regulatory compliance exceeds communities. The bankers and their nancial institutions and free up scarce $2 billion annually.’’ The $2 billion in customers go to church, play ball, or resources for their communities, ena- costs that Mr. Smithy mentioned were their kids go to school with each other. bling more individuals to find a home just the direct costs. Indirect costs in- They know their customers, and they loan or get the funding to start a busi- clude management and other business are willing to work with them to help ness. And this does not increase finan- units’ time being diverted from fully them be successful. They provide credit cial risk. serving their clients. to traditionally underserved and rural A number of local credit unions have These are not just empty numbers; communities, where it may be harder weighed in on the positive impact our behind these numbers are real eco- to access banking products and serv- bill will have on increasing access to nomic consequences. That is a fact Mr. ices or to get a loan. affordable mortgage credit. Smithy noted in his testimony before Dodd-Frank instituted numerous new Additionally, had our bill’s provi- the Banking Committee. mortgage rules and complex capital re- sions on a rule called TRID—a 3-day For a company like Regions, that standard quirements on community banks and waiting period—had they been in place being lifted would likely liberate as much as credit unions that have hindered con- in 2017, it would have helped over 1.5 10 percent additional capacity for lending, sumers’ access to mortgage credit and million credit union members at over which— lending more broadly. 3,800 credit unions throughout the Na- In his bank’s case— I guess I will just insert here, this tion, enabling them to take advantage would be $8 billion to $10 billion. phenomenon we often see in Wash- of a lower interest rate and to avoid That is capital and access that are not ington of one-size-fits-all or cookie- potential delays in the mortgage origi- available to individuals, families, and small cutter solutions to a problem is di- nation process. I will tell my col- businesses in this Nation. That is one bank. rectly the kind of problem we are see- leagues, anybody who has had to go During another Banking Committee ing here. through the mortgage origination proc- hearing, Robert Hill, CEO of South Our smaller financial institutions are ess today knows the paperwork I am State Corporation, a midsized bank, treated as though they were large talking about. noted that when their institution megabanks and as though their busi- Our bill also drastically simplifies crossed the $10 billion threshold, ness models and their portfolios con- the capital regime for certain highly ‘‘South State was impacted by over $20 tain the same kind of risk as the larger capitalized community banks com- million per year, a significant sum for banks. Yet they don’t have the same pared to the current Basel III require- a bank our size. What impact does that business models; they don’t have the ments that are more appropriate for have on our local communities? For us, same risk footprint, but they are larger, sophisticated financial institu- that equates to 300 jobs. Approximately forced to go through phenomenally ex- tions. 10 percent of our branches were closed, pensive regulatory burdens for no good Rebecca Romero Rainey, the former and even more jobs diverted away from reason. chairman and CEO of Centinel Bank of lending to regulatory compliance.’’ I can’t tell you how many of these Taos and CEO-elect of the Community Section 401 of our bill raises the SIFI small bank and credit union folks have Bankers of America, made a common- threshold for applying enhanced pru- said to me: Our industry did not cause sense observation. She said: dential standards from $50 billion to or have any part in the financial crisis, Under Basel III, community bank capital $250 billion—a level that many, many but we are being asked to pay the regulation has become significantly more financial experts have encouraged for price. That is what this bill deals with. punitive and complex. Do we really need four years—and the $10 billion threshold for In July of 2016, the American Action definitions of regulatory capital, a capital applying an annual, company-run Forum attempted to estimate the num- conservation buffer, and impossibly complex stress test to midsized banks while rules governing capital deductions and ad- maintaining important safeguards ber of paperwork hours and final costs justments? associated with these rules and regula- Applying the rule to community banks in against risks to the U.S. financial sys- tions that I am talking about. In total, a one-size-fits-all manner harms the con- tem. This will free up valuable finan- the forum estimated that the law had sumers and businesses we serve. cial and human resources to help keep imposed more than $36 billion in final She added: more branches open, increase lending rule costs and 73 million paperwork I seriously doubt that my grandfather to consumers and small businesses, and hours as of July 2016. What does that would have founded Centinel if he had to lower the cost of borrowing for con- mean? To put these figures into per- comply with Basel III and the other new reg- sumers. spective, the costs are nearly $112 per ulations that exist today. The bill also deals with housing pol- person or $310 per household. We want to encourage people to bank icy. Our bill provides some important Additionally, it would take 36,950 em- in their communities. improvements to HUD programs, mak- ployees—that is 36,950 employees— Dodd-Frank also dealt with midsized ing them more effective and efficient working full time to complete a single and regional banks, and our bill does and enabling public housing authori- year of the law’s paperwork based on too. Dodd-Frank swept many simple ties across the country to better ad- the agency’s calculations themselves. midsized and regional banks into its dress the housing needs of their local Our bill is focused on providing enhanced prudential standards, but it community. meaningful relief to our community was meant for the largest and most Our bill enhances HUD’s Family Self- banks and credit unions, helping them complex institutions. Each new regula- Sufficiency Program, which will enable to prudently lend to consumers, home tion poses a tradeoff between hiring a greater number of families currently buyers, and small businesses—small new employees to help comply with assisted by HUD to obtain job training, businesses that we all acknowledge are those standards versus employees to education, childcare, and ultimately the engines of our economy, yet lack provide customers the products and achieve financial independence. Spe- credit and lack access to capital be- services they want and need. cifically, the bill would broaden the cause of these unnecessary rules. That Deron Smithy, executive vice presi- scope of supportive services that can be is why the first part of the name of this dent and treasurer for Regions Bank, a offered to these participants, including bill is ‘‘economic growth.’’ This bill regional bank based in Alabama, de- home ownership assistance, training in will provide a needed shot in the arm scribed the implications of this on his asset management, obtaining a GED, for our economy across this country. institution, saying, ‘‘We now have and education in pursuit of a postsec- By responsibly expanding the quali- more people in our organization de- ondary degree or certification. It would fied mortgage safe harbor, addressing voted to compliance-related matters also streamline the administration of severe appraiser shortages in rural than we do for commercial lending’’ the program, making it easy for local areas, reducing superfluous HMDA re- and that ‘‘the direct cost, as well as public housing authorities to deliver it porting requirements, and exempting management’s time and attention to in their communities.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1572 CONGRESSIONAL RECORD — SENATE March 8, 2018 For the first time ever, our bill will ical debt arising from the Choice Pro- You know, we really want the most strin- enable many families who live in pri- gram and other non-VA healthcare pro- gent things to be happening at the system- vately owned apartments backed by viders from being reported to credit-re- ically important banks—the most stringent project-based rental assistance to also porting agencies for 1 year and pro- stress tests, in particular—and we want to tailor or taper, as we go down into less sig- participate in the FSS Program. vides veterans a process to dispute or nificant, less systemically important insti- Our bill would also provide targeted remove incorrect information already tutions. regulatory relief to small public hous- on their reports. Powell added: ‘‘Those banks [below ing agencies operating in rural commu- According to a study conducted by $100 billion] are not systemically im- nities. While smaller public housing MetLife, seniors lose at least $2.9 bil- portant. authorities typically have far fewer lion annually in reported cases of fi- What he meant by that is they don’t staff and resources than larger urban nancial exploitation. Despite the prev- present systemic risks to the economy. agencies, they, too, are currently held alence of senior financial fraud, the We should analyze them and regulate to many of the same burdensome regu- National Adult Protective Services As- them and supervise them in a more ap- latory requirements as some of the sociation estimated that only 1 in 44 propriate fashion. largest ones in the country. As a re- cases of financial abuse is ever re- Federal Reserve Vice Chairman for sult, this means that more of their ported. Supervision Randy Quarles has also time and money are spent completing Current bank privacy laws make it noted the importance of tailoring, say- paperwork and less are able to be dedi- difficult for the financial institutions ing: and their employees to report any po- cated to promoting access to affordable One of the important general themes of housing in these communities. tential fraudulent activity without in- regulation is ensuring that the character of Our bill would provide tailored regu- curring legal liability, and as a result, the regulation is adapted to the character of latory relief that recognizes the unique few cases of financial abuse are re- the institution being regulated, what has be- challenges faced by smaller public ported. Our bill would give financial come the word ‘‘tailoring.’’ housing authorities in rural areas. Spe- advisers civil liability protection when I fully support that, and I think that it’s cifically, it would provide a simpler op- reporting suspected financial abuse of not only appropriate to recognize the dif- tion for calculating utilities, simplify seniors. This will empower and encour- ferent levels of risk, and types of risk that environmental review requirements for different institutions in the system pose, but age our financial service representa- that it also makes for better and more effi- new developments, streamline inspec- tives to identify warning signs of com- cient regulation, and efficient regulation al- tion requirements, and make it easier mon scams and help stop financial lows the financial system to more efficiently to coordinate efforts, such as enabling fraud targeting our seniors. support the real economy. shared waiting lists with neighboring Now I wish to turn for just a mo- That is what we are talking about agencies and enabling neighboring ment—I have gone over some of the here. agencies to pool their resources to de- positive benefits and provisions in this So I do think that we should look very velop larger projects. bill. I would like to turn for a moment carefully . . . at tailoring capital regulation These changes will set up these small to the criticisms, because, if my col- and other types of regulation to the par- agencies for success and enable them to leagues have been listening to the at- ticular character of the institutions that are direct a greater amount of time, effort, tacks, the attacks are that this is an regulated, and that includes their size, and and resources toward their core mis- effort to go help the big banks in that includes other aspects of the character. sion: promoting access to affordable America get richer at the expense of Another critique I have heard is that housing. poor people. This is a very common the bill erodes the power of stress test- The bill is also a consumer protec- type of attack on almost any proposal ing as a supervisory tool. In one way or tion bill. It ensures that key consumer to fix a regulation in the financial sys- another, many have stood on this floor protections remain in place and in- tem. and talked about the need to have this creases protections for consumers who One of the things we have heard is kind of flexibility, and others have have fallen on hard financial times or that it gives the regulators too much stood on this floor and said it creates a become victims of fraud. flexibility to tailor regulations to the huge threat to our economy. Following the Equifax data breach, size of the institution being regulated. We have a hearing each year called we held two credit bureau hearings. This bill carefully balances the need to the Humphrey-Hawkins hearing when These hearings demonstrated bipar- provide regulators with the appropriate the Chairman of the Federal Reserve tisan support for some important discretion at the technical level, while comes and testifies to the Senate and measures. The bill provides 1 free year imposing specific directions to ensure then to the House. This year, the of fraud alerts for consumers poten- appropriate tailoring for Main Street Chairman of the Federal Reserve came tially impacted by the Equifax breach banks and maintaining core super- before the Senate. To ensure that peo- or other instances of fraud. It gives visory tools for the largest banks. ple and Members understood what this consumers unlimited free credit freezes Regulators will still be required to bill does, I asked Chairman Jay Powell: and unfreezes during the year. It allows ensure that banks operate in a safe and If this bill were to pass, is it accurate parents to turn on and off credit re- sound manner and still retain exten- that the Federal Reserve would still be porting for children under 16. sive authorities to do so. required to conduct a supervisory The bill also includes important pro- The bill also requires regulators to stress test for any bank with total as- tections for veterans and senior citi- do more to tailor regulations to ensure sets between $100 billion and $250 bil- zens. The Department of Veterans Af- that the level of regulation and scru- lion to ensure that it has enough cap- fairs Choice Program provides veterans tiny of banks reflects the potential ital to weather economic downturns? non-VA medical care if they can’t ac- risks posed by the institutions—some- He replied: Yes, it is. cess care at a VA medical facility. Un- thing that folks in my State would say I asked: Is it accurate that the bill’s fortunately, the VA Choice Program is just common sense. change of the threshold from $50 billion has been rife with issues, including de- In the face of all of this, we have to $250 billion for enhanced prudential layed payments and misassigned med- talked to a lot of the regulators them- standards does not weaken oversight of ical bills to veterans. As a result, vet- selves to see what they think of the the largest, globally systemic banks? erans have experienced negative credit idea, and they are consistently saying: He said: That is correct. items on their reports, which unneces- Let us have the flexibility to regulate The Dodd-Frank Act established a $50 sarily complicates their and their fam- appropriately, and we will do the job. billion asset threshold to apply en- ilies’ lives. We will ensure that we have safety and hanced prudential standards to banks. The largest credit reporting agencies soundness, and we will ensure that we Applying enhanced standards broadly took a step to alleviate this problem by are not putting undue regulatory bur- to regional banks with simple business delaying reporting medical debt on a dens on our financial institutions, par- models and low-risk profiles has had consumer’s credit report for 180 days, ticularly the smallest ones. significant consequences in the mar- but more can still be done. Our bill Federal Reserve Chairman Jay Pow- ketplace. Although there has been goes a step further by prohibiting med- ell said: much debate about the appropriate

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1573 level for the threshold, there is bipar- ulatory Relief, and Consumer Protec- Yes, there are some benefits. Those tisan agreement that $50 billion is too tion Act and respond to some of the of us on the other side of this legisla- low, including among Federal Reserve false, unfounded attacks on this bill. tion are not arguing about that point. Chairman Powell, former Federal Re- This bill does not create any in- You could probably find consensus serve Bank Chairman Yellen, former creased risk at the level of supervision among all 100 Senators in this body Acting Comptroller Noreika, and for the megabanks, those that were in- that there is a legitimate, targeted re- former Comptroller Curry. tended to be the target of Dodd-Frank lief we can and should provide for those Current Federal Reserve Chairman when it was adopted, but it does pro- community banks, but that is far from Jay Powell said: ‘‘Our view has been vide increased support for those com- all this bill does. This community bank that that combination of raising the munity banks and credit unions, and relief is being used to protect the give- threshold and giving us the ability to those regional banks and midsized aways for some of the biggest banks in go below it in cases where needed gives banks that are being so badly hurt and this country. us the tools that we need.’’ whose customers are being so deprived Anyone listening to the supporters of Former Federal Reserve Chair Janet of needed and justified access to credit this legislation would have no idea Yellen has said: and capital. That is what this debate is that 25 of the 38 largest banks in the We’ve already said that we would favor about. United States will have critical Dodd- some increase, if Congress sticks with a dol- I encourage all of my colleagues to Frank rules rolled back for them. Any- lar threshold—that we would support some support this legislation as we move for- one listening would have no idea that increase in the threshold. An approach based ward and help us bring economic banks with up to $250 billion in assets on business model or factors is also a work- growth, regulatory relief, and con- are being told the current rules are too able approach from our point of view. Con- sumer protection to all Americans. tough for them. These banks received ceivably, some of the enhanced standards The PRESIDING OFFICER. The Sen- $48 billion in taxpayer-funded bailout should apply to more firms with lower levels ator from Massachusetts. money. Those banks are not commu- of assets, and others with higher levels. So I Mr. MARKEY. Mr. President, anyone nity banks. think either type of approach is something tuning into the Senate floor this week that we could—we could work with and Now, a decade after the financial col- would be supportive of. is probably very confused right now, lapse of 2008, we are saying it is prob- and that is because we are not debating That is the former Chair of the Fed- ably OK. We are pretty sure they have how to address the scourge of gun vio- eral Reserve. learned their lessons. We are pretty lence plaguing this country, just 22 Our bill rightsizes regulations by sure that now the big banks will put days after the horrific Parkland mass raising the $50 billion threshold to $250 the economic security of the country shooting and following a near-universal billion. Banks with total assets below ahead of their own profits. call from the American people for Con- $100 billion are exempt immediately So the bottom line: This bill, the gress to get serious about guns. They Economic Growth, Regulatory Relief, from these enhanced standards, while are debating it in the State legislature and Consumer Protection Act, will in- those with between $100 billion and $250 in Florida, but we just don’t have time crease risks to our entire economy, and billion are presumed exempt 18 months in the U.S. Senate to debate this over- the fact that the words ‘‘consumer pro- after the bill is enacted unless the Fed- arching issue of gun safety in our coun- tection’’ are mentioned last should eral Reserve Board determines that try. make clear they are simply an after- they need to have some additional The American people may be con- thought. level of standard applied, and the Fed- fused because we are not debating the When large institutions fail—whether eral Reserve is given full authority to fate of the 800,000 Dreamers and the un- it is Lehman Brothers, Enron, AIG—it do so. The provision allows the Federal certainty they still face; confused be- is everyday working consumers who Reserve to tailor regulations to a cause we are not debating our crum- get hit the hardest and pay the highest bank’s business model and risk profile. bling infrastructure which, despite re- price. This provision in no way diminishes peated calls from this President, we There is the rule on Wall Street: On the effectiveness of prudential regula- have seen nothing resembling a cred- the way up, the big guys clean up; on tions, and it provides the Federal Re- ible plan from him to fix our Nation’s the way down, the little guys get serve sufficient regulatory and super- bridges, roads, and water systems and cleaned out. We saw that during the visory discretion to apply these en- provide broadband for rural Americans. last financial crisis, when millions of hanced standards on any firm it deems Democrats do have a real plan, and Americans lost their jobs or their a threat to systemic risk or safety and we should be debating that. But no. In- homes, and we are seeing it today, with soundness. stead, just 3 months after the passage increasingly common data breaches Let me restate that. If you have of massive tax giveaways that handed that compromise Americans’ financial heard any of the attacks, you have over more than $1 trillion to the and personal information. heard that the Federal Reserve will not wealthiest Americans and In recent years, devastating data be able to adequately regulate the megacorporations, we are here debat- breaches have become the new normal. banks anymore. The past two Chair- ing a giveaway to the world’s biggest The likes of Target, JPMorgan Chase, men of the Federal Reserve have said banks. Yahoo, eBay, T.J.Maxx, Home Depot, that is not correct, but the bill itself We have moved on from tax handouts and Sony are among so many who have provides that the Federal Reserve con- to the wealthy, to taxpayer-funded become synonymous with massive data tinues to have the authority to apply bailouts for Wall Street megabanks. breaches. enhanced standards on any firm it That is not my opinion. The non- Of course, there is Equifax, which is deems a threat to systemic risk or partisan Congressional Budget Office both a credit reporting agency and a safety and soundness. released their analysis of this bailout data broker. Equifax’s sole mission is So, again, for those who are attack- bill and noted that the risk of a finan- using and profiting from consumers’ ing the bill, I think their arguments cial crisis would go up under this legis- most personal information, and they are unfounded and, frankly, based in an lation. failed to protect that information. effort to try to create concern about a Why in the world is Congress doing More than 145 million Americans’ So- risk that does not exist. anything that increases the risk of a fi- cial Security numbers, birth dates, ad- This provision also requires the Fed- nancial crisis? It has only been 10 years dresses, and, in some instances, even eral Reserve to apply a periodic super- since the great recession, but Repub- driver’s license numbers and credit visory stress test to banks with be- licans seem to have forgotten about card numbers were compromised be- tween $100 billion and $200 billion in as- that. Maybe that is why this week is so cause Equifax failed to institute even sets, something that is often over- confusing—because the backers of this the most basic security protocols. It looked by those commenting on the bill are not talking about the risk to seems that, for the American con- bill. the entire financial system they are sumer, every year is the year of the I have tried to go over some of the enabling. They have forgotten that and data breach, and they are sick and positive aspects of this bill and explain are only talking about the benefits to tired of their information falling into why its title is Economic Growth, Reg- community banks. the wrong hands.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1574 CONGRESSIONAL RECORD — SENATE March 8, 2018 So as the Senate debates how to en- and Congress has yet to enact any riod of morning business, with Sen- sure financial institutions do not en- major legislation in response. We are ators permitted to speak therein for up danger the American economy the way still in the data broker Wild West. to 10 minutes each. they did during the financial crisis, we American consumers are still power- The PRESIDING OFFICER. Without cannot forget our constituents’ calls less, and the next breach could be objection, it is so ordered. for new data protection rules. That is around the corner. f why I have filed my Data Broker Ac- Here is the financial services bill GUN VIOLENCE countability and Transparency Act as that we are taking up. Here is a bill an amendment to this legislation. I that is directly related to these banks Mr. DURBIN. Mr. President, last thank Senators BLUMENTHAL, SANDERS, that we are talking about. Here is an week, I met in my office with four stu- and WHITEHOUSE for joining me. opportunity for us to begin to figure dents from Marjory Stoneman Douglas My colleagues and I—Republican and out a way of protecting consumers in High School, as well as one recent Democratic alike—were outraged when this data breach area where their fi- graduate. They are among the many we learned about the Equifax hack and nancial records, where their health students and graduates from Parkland, how it hurts our constituents across records, where their families’ records FL, who have been speaking out across the country, but what have we accom- could be compromised. the country, asking for commonsense plished in the U.S. Senate since then? What is the solution? We are moving gun safety reforms. They are having a Nothing, and the threat is only grow- through legislation that deals with the real impact. They are changing the de- ing. problems the bankers say they have, bate over guns in America. We have an entire industry whose but we are not dealing with problems Last week several of the Nation’s whole business model is predicated on consumers say they have with these fi- largest gun retailers, including Dick’s profiting on Americans’ most sensitive nancial institutions. When do we take Sporting Goods and Walmart an- information. They are collecting it, up that bill? When do we finally say to nounced that they had listened to the storing it, selling it, and, in many in- the largest companies: What are the Parkland students, and heard them. stances, losing it in data hacks and protections? What are the safeguards Dick’s Sporting Goods announced it breaches. Consumers don’t even know that are going to be constructed so will no longer sell assault rifles or high who these companies are. They live in that people’s personal information is capacity magazines at any of its stores. the shadows of our economy. Con- not compromised, so the data brokers Their CEO also announced that the sumers rarely have any direct contact aren’t able to create a world in which company would stop selling firearms to or business relationship with a data everyone’s information is just part of anyone under age 21. Walmart which broker. Yet they know nearly every- their profit-making opportunity? had already stopped selling assault ri- thing about you. That is not just So- That is what we should be talking fles, made the same decision to stop cial Security numbers, detailed credit about. Let’s have a big debate here. selling guns to people under 21, as did histories, addresses, driver’s license Let’s ensure that each and every one of Kroger and L.L. Bean. numbers. That is information on what these issues is dealt with. Making 21 the minimum age for buy- you read, what music you listen to, I urge my colleagues to support my ing any firearm is an idea that makes your children, and your medical his- amendment because we have to get to sense. It is already the law that a per- tory. the heart of this Equifax issue. We son must be 21 to buy a handgun. Why In today’s economy, you—the Amer- have to actually deal with the world as should the law be different for an as- ican consumer—are the commodity it has changed. If the proponents of sault rifle? In fact, President Trump that is bought and sold in the open this bill say that the world has initially came out in support of the market. Right now, you have no rights. changed since the crash in 2008 and idea of making 21 the age limit for all Data brokers are collecting, using, 2009, then the world has also changed gun purchases, but then the NRA’s lob- sharing Americans’ personal informa- with regard to the potential for the byists went to work on the President tion without your knowledge, without compromise of the information of with a private lunch and an Oval Office your consent. every American. Let’s have that de- visit. Right now, American consumers are bate, as well, in the same bill. We will see who the President and completely powerless. You can’t say: I urge that my amendment be put in Republicans ultimately end up listen- Stop selling my information to any of order, and I urge that the Members of ing to on commonsense proposals like these companies. That is unacceptable. the Senate support it. It is time for us these: the Parkland students or the We need transparency; we need ac- to give those protections to consumers, gun sales lobby. countability. That is why I urge my which they are crying out for. No indi- It is incredible to see students and colleagues to support my Data Broker vidual consumer is crying out for this businesses across the country taking a Accountability and Transparency Act. change in the banking bill, but they leadership role, in addressing gun vio- My amendment would hold data bro- are crying out for protections in a sys- lence. They have decided it is time to kers accountable. tem where they have no voice, no way act, and they are acting. We have seen First, my amendment allows con- to ensure that their own family’s per- the Stoneman Douglas students con- sumers to access and correct the infor- sonal data is not compromised. vince companies to make meaningful mation that data brokers hold about I yield back to the Chair. changes when it comes to gun sales them. Americans should be able to stop I suggest the absence of a quorum. practices, and they have convinced the spread of inaccurate information The PRESIDING OFFICER. The many more companies to end their re- that could damage them personally and clerk will call the roll. lationships with the NRA. That is a financially. The bill clerk proceeded to call the major development. Second, my amendment provides con- roll. Unfortunately, the gun sales lobby sumers with the right to stop data bro- Mr. MCCONNELL. Mr. President, I has not been a constructive voice in kers from using, sharing, or selling ask unanimous consent that the order this debate over the epidemic of gun vi- their personal information for mar- for the quorum call be rescinded. olence. Their rhetoric has been increas- keting purposes. The PRESIDING OFFICER. Without ingly paranoid and hysterical. It is Third, my amendment requires data objection, it is so ordered. clear that their priority is to preserve brokers to implement comprehensive their ability to make gun sales. That is f privacy and data security programs the gun lobby’s agenda, but it doesn’t and to provide reasonable notice in the LEGISLATIVE SESSION need to be our agenda. case of breaches. Equifax should have I want to commend the students and been required to have robust security businesses that are showing such lead- to protect Americans’ information. We MORNING BUSINESS ership in working to make our commu- must stop the next Equifax. Mr. MCCONNELL. Mr. President, I nities safer. Now the question is, Will It has now been 6 months since the ask unanimous consent that the Sen- the Republicans who control Congress public became aware of that breach, ate resume legislative session for a pe- show any leadership as well?

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1575 If we let the gun sales lobby control astating the population of Eastern nearly 200 times over 7 years. He has this debate, we will never take the Ghouta and leaving scores severely used them against very young children steps we need to keep our schools and malnourished. The bombings have and the elderly, people who are clearly neighborhoods safe from gun violence. forced people to take shelter in their not fighters on the battlefield. He has Remember, the NRA doesn’t like any basements rather than risk death. Too targeted civilians repeatedly with sarin proposal that might hurt gun sales. frightened to venture outside to face gas, a weapon notably developed by an- They don’t want to close loopholes in the onslaught of mortar shells, barrel other abominable regime: the Nazis. our laws, instead, they would rather bombs, cluster bombs, and bunker- In 2013, Russia worked with a global roll back gun laws already on the busting munitions, the civilian resi- coalition, including the United States, books. That is not the agenda America dents of Eastern Ghouta are being com- to ostensibly destroy Syria’s stockpile needs. pelled to spend days without food or of chemical weapons, but the world I stand with the 97 percent of Ameri- fresh air, suffocating in the heavily watched in horror as Assad cans who support universal background polluted air. barbarically unleashed sarin gas on ci- checks for gun sales. I want to close Despite the U.N. ceasefire, the num- vilians in the town of Khan Shaykhun the loopholes in our laws that make it ber of dead climbs every day—from again in April 2017. Maybe you, too, easy for dangerous people to get their bombings, from ground assaults, and saw the very disturbing reporting a hands on guns. from hunger. Only yesterday, Assad’s week ago on ‘‘60 Minutes.’’ I also stand with the significant ma- forces killed over 90 civilians and While the United States responded to jorities of Americans who want to take wounded over 300. that incident, Russia has allowed military-style assault Weapons, high- The number of casualties has over- Assad to conduct many other chemical capacity magazines, and bump stocks whelmed rescuers and hospitals. Cata- attacks. In fact, in Eastern Ghouta, off of our streets. These are weapons of strophically, the Assad regime has cho- Assad has continued to attack civil- war, and they have no place in our sen to re-employ one of its most hei- ians—among them at least 21 chil- neighborhoods. nous tactics and has bombed at least 28 dren—with chemical weapons. Just We cannot become numb to the hospitals and clinics. Doctors Without yesterday, doctors there said that at shootings that happen in our commu- Borders said 15 of the 20 hospitals it least 29 patients were showing effects nities, our churches, our movie thea- supports have been destroyed or dam- consistent with exposure to chlorine ters, our concerts, and our schools. All aged, reducing access to emergency munitions. of us, especially lawmakers, have to services just when they were most Instead of trying to stop this savage step up and take actions that will re- needed. behavior, Russia stands by its client- duce the epidemic of gun violence and Doctors have run out of resources to state. Russia continues to obfuscate save lives. treat patients. Doctors are being forced and deny these horrific attacks, despite I hope my Republican colleagues will to make the most difficult choices and much evidence substantiating the use finally step up and help get this done. sometimes, tragically, leave critically of chemical weapons. wounded patients to die. A doctor in f In fact, Russia has seemingly con- Eastern Ghouta said, ‘‘We have a hor- doned Assad’s cruel use of chemical SYRIA rible situation here. We’re being tar- weapons on innocent civilians. The Mr. DURBIN. Mr. President, I wish to geted with all kinds of weapons non- United Nations was investigating speak about the ongoing horrific vio- stop. We lack everything, water, food, Assad’s chemical attacks until late lence in the nation of Syria, which medical supplies, shelter. This is a dis- last year when Russia repeatedly seems to have hit yet new lows in aster. Everyone is waiting to die.’’ terms of barbarity and Russian ena- I spoke to a deeply respected friend blocked continuing the investigation. bling. The senseless violence—in serv- from Chicago the other day who knows The U.N. investigation seemed to be ice of nothing more than enabling Syr- this crisis all too well, Dr. Mohammed getting too close to the truth for Rus- ian strongman Bashir al-Assad to Sahloul, who leads the heroic Syrian sia’s comfort, so it used its vote to pre- maintain ironfisted rule over a country American Medical Association. He and vent the facts from being laid bare. he has personally driven to ruin—de- his brave colleagues regularly travel to Unfortunately, Russia’s negative in- mands the world’s attention. Syria to help provide medical treat- fluence doesn’t end there. For 3 days, Quite simply, President Trump, who ment to victims of the war. He told me Russia blocked a ceasefire from taking lambasted President Obama’s approach horrific accounts of the latest bombing hold in Eastern Ghouta. For 3 days, to Syria, has sat by as the regime con- and disappointment at the world’s Russia delayed much-needed food, med- tinues to use chemical weapons, relent- seeming inaction amid such heinous icine, and emergency aid to reach the lessly bomb civilians, ignore the unani- cruelty. distressed civilian population. For 3 mous U.N. Security Council ceasefire, U.N. Secretary General Antonio days, the entirety of the U.N. Security and allows Iran to build its radical Guterres called Eastern Ghouta a ‘‘hell Council, save Russia, agreed an imme- foothold in Syria. One missile strike is on Earth.’’ United Nation’s human diate ceasefire was necessary. not a long term policy. President rights chief Zeid Ra’ad al-Hussein Even though the Security Council fi- Trump’s silence as Russian President called the onslaught in Eastern Ghouta nally agreed to a 30-day ceasefire in Putin not only continues to meddle in a ‘‘monstrous campaign of annihila- Syria, Assad flouted international our democracy but also empowers and tion.’’ He added, ‘‘When you are pre- order as his warplanes continued to enables the Syrian butcher is simply pared to kill your own people so easily, carry out airstrikes targeting civilians inexplicable and diminishes American lying is easy too. Claims by the govern- in Eastern Ghouta. He also launched a leadership. ment of Syria that it is taking every massive ground assault against East- Let me start with the horror that has measure to protect its civilian popu- ern Ghouta. unfolded in Eastern Ghouta in the last lation are frankly ridiculous.’’ Hundreds of people have been killed few weeks. This area has actually been Most troublingly, Assad’s ruthless re- since the ceasefire was supposed to under siege by Syrian Government gime continues using chemical weap- have begun. The Assad regime has pre- forces since 2013, but last week, Assad’s ons to attack its own civilians despite vented humanitarian relief from reach- henchmen stepped up their attacks. Syria agreeing to eliminate its chem- ing those who are hurt or sick, and no For over 2 weeks, Syrian forces sup- ical weapons in 2013. We are in 2018 now civilians have been able to leave be- ported by Russian warplanes have re- and have seen the repeated use of cause of the constant bombardment. lentlessly bombarded Eastern Ghouta chemicals to attack innocent people on The man who runs the regional com- in a campaign that has killed over 1,000 the streets of Syria. mand in charge of U.S. troops in Syria, people, wounded almost 5,000, and left Among his various and numerous General Joseph Votel, has said that 400,000 civilians trapped without food atrocities, Bashar al-Assad has made Russia plays ‘‘the role of both arsonist or medicine. routine the use of internationally and fireman—fueling tensions and then The siege had already led to chronic banned chemical weapons. He has de- trying to resolve them in their favor.’’ food and medicine shortages, dev- ployed them against his own people Instead of reasoning with its vassal-

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1576 CONGRESSIONAL RECORD — SENATE March 8, 2018 state and enforcing the ceasefire, Rus- REMEMBERING MATT NIEMEYER uted to making the offices that serve sia egregiously has prevented the Mr. PORTMAN. Mr. President, I want this body safer for our employees, our ceasefire from taking hold. to recognize and celebrate the life of a visitors, and our constituents. With Once again, Russia is abetting friend, a colleague, and a trusted ad- Janet’s assistance, many Senate of- Assad’s defiance and destruction for its viser whom we tragically lost last fices, including my own, have earned own perverse purposes. At the very week. Safe Office Awards. least, it is abdicating its role as a per- That is what Matt Niemeyer was to We will miss Janet’s institutional manent member of the Security Coun- me, but Matt would say that he was a knowledge and unparalleled profes- cil. husband and a father first. Everything sionalism. What can be done about this dev- else was secondary. Matt leaves behind Janet, thank you for your service, astating situation? Regrettably, there his beloved wife, Amy, and their two and I wish you great happiness in re- are no easy answers. beautiful children, Anna and Peter. tirement. But a President who previously ar- I first met Matt in 2005 when he was f gued that ‘‘heinous actions by the an Assistant U.S. Trade Representa- Bashar al-Assad regime are a con- tive. He was well known in the trade ADDITIONAL STATEMENTS sequence of the last administration’s community, and he stood out as a sub- weakness and irresolution’’ has to dem- stantive expert in his field. Matt would TRIBUTE TO BILL GALT onstrate some resolve. I call on Presi- say that his time at USTR was the dent Trump to put genuine pressure on most fun he had ever had in govern- ∑ Mr. DAINES. Mr. President, this Russian President Vladimir Putin to ment. That says a lot as Matt also week I have the honor of recognizing a rein in Assad and end Russian obfusca- worked on Capitol Hill for the National hard-working Montana rancher for his tion in the U.N. Security Council as Republican Congressional Committee contributions to the community in the carnage and number of likely war and as a congressional liaison for a Meagher County. Bill Galt is a third- crimes mount. number of private companies and orga- generation Montana rancher; he has Any discussion with Putin must also nizations throughout his life. been ranching all his life. His dedica- address deeply troubling—and seem- Matt played a key role in our suc- tion to White Sulphur and the sur- ingly ignored—reports that Russian cessful efforts to pass the Central rounding community, however, extends mercenaries controlled by Yevgeny American Free Trade Agreement. He far beyond his work in agriculture. Prigozhin attacked U.S. Special Oper- was a happy warrior in that he loved Bill has rescued numerous folks from ations Forces in Syria, with approval trade, USTR, and getting things done. I plane crashes and accidents on the of the highest levels of the Kremlin. think his thick skin and constant Smith River as part of his volunteer Prigozhin is the same Russian oligarch hopefulness was a credit to his upbring- search and rescue work. He has served who was recently indicted on charges ing as a long-suffering and then long- on the White Sulphur Springs Airport of running a troll farm targeting Amer- celebrating Boston Red Sox fan. He al- Board, the Meagher County DUI Task ican voters. ways found a way to get his mission ac- Force, the Conservation District Donald Trump has also called on ‘‘all complished and always had a quick wit. Board, and the Mountainview Medical civilized nations’’ to help end the I was lucky to remain close with Center Foundation, just to name a few. ‘‘slaughter and bloodshed in Syria.’’ I Matt after our time together at USTR Bill has been a volunteer firefighter have to imagine that the United States had ended. He would go to any length and has volunteered with organizations is included in his exhortation. Unhap- for his friends, and he was always such as the Boys and Girls Club and 4H. pily, he has also recommended a 30-per- thoughtful, kind, and jovial. He never I would be remiss to not include his cent cut in our already minuscule for- passed at the opportunity to joke service in the U.S. Army Military Po- eign assistance and diplomacy budget. about one of his earliest experiences in lice Corps during Vietnam as well. The United States must do more to politics, when he worked for the first Bill is humble and civic-minded in all meet the humanitarian needs of Syr- primary opponent I ever faced. He he does, and his service to Meagher has ians suffering the ravages of a dreadful would generously tell me how happy he not gone unnoticed. war. was that, for one of the only times in Thank you, Bill, for exemplifying Incredibly, at a time when a long- his career, he wasn’t successful in that what it means to be an active member term diplomatic and political solution job. of a Montana community.∑ will be needed in Syria, this adminis- While Matt is no longer with us in f tration has marginalized our top diplo- person, his memory lives on through matic expertise at the Department of his family who love him dearly and MESSAGE FROM THE PRESIDENT State. This is wildly self-defeating. friends and colleagues like myself who A message from the President of the We have taken a back seat to Russia will forever cherish his impact on our United States was communicated to and Iran in Syria long enough. We can lives. the Senate by Ms. Ridgway, one of his see every day the devastating results: f secretaries. more violence and the further frac- turing of a country and a region that TRIBUTE TO JANET JONES f have suffered at the hands of tyrants Mr. TESTER. Mr. President, I wish EXECUTIVE MESSAGE REFERRED too long. to honor Janet Jones for her distin- Despite the important achievement guished public service to the U.S. Sen- As in executive session the Presiding made by our military in destroying ate. Officer laid before the Senate a mes- ISIS in Syria, Syria will remain a mon- Janet began her Senate career in the sage from the President of the United umental security, humanitarian, and Office of the Senate Chief Counsel for States submitting a nomination which governance challenge for the United Employment in 2006 as a litigation was referred to the Committee on Com- States and its allies, including Israel, paralegal. Not long after that, she took merce, Science, and Transportation. for years to come. Russia and Iran are on the tremendous responsibility of (The message received today is print- vying for the spoils of the civil war, getting Senate offices prepared for ed at the end of the Senate pro- with civilians paying the highest price. their mandatory OSHA inspections by ceedings.) We don’t want to leave U.S. forces in the congressional Office of Compliance. f Syria indefinitely, but doing nothing During the 114th Congress alone, MESSAGES FROM THE HOUSE to bring a lasting peace to Syria is the Janet pre-inspected almost a half-mil- worst option. lion square feet of office space, assist- ENROLLED BILL SIGNED As such, President Trump, I call on ing Senate offices with identifying po- At 9:50 a.m., a message from the your administration to come up with a tential hazards and potential safety House of Representatives, delivered by real Syria strategy to bring an end to violations. Mrs. Cole, one of its reading clerks, an- a war—and the senseless suffering— Janet’s tireless work with Senate of- nounced that the Speaker has signed that has gone on for too long. fices over the past 12 years has contrib- the following enrolled bill:

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1577 S. 831. An act to designate the facility of ficers authorized to wear the insignia of the ment of State, transmitting, pursuant to the the United States Postal Service located at grade of brigadier general in accordance with Case-Zablocki Act, 1 U.S.C. 112b, as amended, 120 West Pike Street in Canonsburg, Penn- title 10, United States Code, section 777; to the report of the texts and background state- sylvania, as the ‘‘Police Officer Scott the Committee on Armed Services. ments of international agreements, other Bashioum Post Office Building’’. EC–4530. A communication from the Sec- than treaties (List 2018–0018 - 2018–0023); to retary, Securities and Exchange Commis- The enrolled bill was subsequently the Committee on Foreign Relations. sion, transmitting, pursuant to law, the re- EC–4540. A communication from the Assist- signed by the President pro tempore port of a rule entitled ‘‘Commission Guid- ant Secretary for Legislative Affairs of the (Mr. HATCH). ance on Pay Ratio Disclosure’’ (17 CFR Part Department of Homeland Security, transmit- 229 and 249) received in the Office of the ting legislative proposals relative to the At 11:31 a.m., a message from the President of the Senate on March 6, 2018; to President of the United States’ Fiscal Year House of Representatives, delivered by the Committee on Banking, Housing, and 2019 budget request for the Department of Mr. Novotny, one of its reading clerks, Urban Affairs. Homeland Security; to the Committee on announced that the House has passed EC–4531. A communication from the Sec- Homeland Security and Governmental Af- the following bill, in which it requests retary, Securities and Exchange Commis- fairs. sion, transmitting, pursuant to law, the re- the concurrence of the Senate: EC–4541. A communication from the Board port of a rule entitled ‘‘Commission Guid- Members of the Railroad Retirement Board, H.R. 1917. An act to allow for judicial re- ance Regarding Revenue Recognition for transmitting, pursuant to law, the Board’s view of any final rule addressing national Bill-and-Hold Arrangements’’ (17 CFR Part 2017 Annual Report; to the Committee on emission standards for hazardous air pollut- 231, 241, and 271) received in the Office of the Homeland Security and Governmental Af- ants for brick and structural clay products President of the Senate on March 6, 2018; to fairs. or for clay ceramics manufacturing before the Committee on Banking, Housing, and EC–4542. A communication from the Asso- requiring compliance with such rule. Urban Affairs. ciate General Counsel for General Law, De- EC–4532. A communication from the Sec- partment of Homeland Security, transmit- At 12:21 p.m., a message from the retary, Securities and Exchange Commis- ting, pursuant to law, a report relative to a House of Representatives, delivered by sion, transmitting, pursuant to law, the re- vacancy in the position of General Counsel, Mr. Novotny, one of its reading clerks, port of a rule entitled ‘‘Updates to Commis- Department of Homeland Security, received announced that the House has passed sion Guidance Regarding Accounting for in the Office of the President of the Senate the following bill, in which it requests Sales of Vaccines and Bioterror Counter- on March 7, 2018; to the Committee on Home- measures to the Federal Government for the concurrence of the Senate: land Security and Governmental Affairs. Placement into the Pediatric Vaccine Stock- EC–4543. A communication from the Dep- H.R. 1119. An act to establish the bases by pile or the Strategic National Stockpile’’ (17 uty General Counsel, Office of General Coun- which the Administrator of the Environ- CFR Part 231, 241, and 271) received in the Of- sel, Small Business Administration, trans- mental Protection Agency shall issue, imple- fice of the President of the Senate on March mitting, pursuant to law, the report of a rule ment, and enforce certain emission limita- 6, 2018; to the Committee on Banking, Hous- entitled ‘‘Civil Monetary Penalties Inflation tions for existing electric utility steam gen- ing, and Urban Affairs. Adjustments’’ (RIN3245–AG96) received in the erating units that convert coal refuse into EC–4533. A communication from the Senior Office of the President of the Senate on energy. Regulatory Affairs Specialist, Bureau of March 7, 2018; to the Committee on Small f Ocean Energy Management, Department of Business and Entrepreneurship. the Interior, transmitting, pursuant to law, EC–4544. A communication from the Acting MEASURES REFERRED the report of a rule entitled ‘‘Oil and Gas and Administrator of the Federal Aviation Ad- The following bills were read the first Sulfur Operations in the Outer Continental ministration, Department of Transportation, Shelf-Civil Penalties Inflation Adjustments’’ transmitting, pursuant to law, a report enti- and the second times by unanimous (RIN1010–AD99) received in the Office of the consent, and referred as indicated: tled ‘‘Assistance Provided to Foreign Avia- President of the Senate on March 6, 2018; to tion Authorities for FY 2017’’; to the Com- H.R. 1119. An act to establish the bases by the Committee on Energy and Natural Re- mittee on Commerce, Science, and Transpor- which the Administrator of the Environ- sources. tation. mental Protection Agency shall issue, imple- EC–4534. A communication from the Chair- ment, and enforce certain emission limita- man of the Federal Energy Regulatory Com- f tions for existing electric utility steam gen- mission, transmitting, pursuant to law, a re- PETITIONS AND MEMORIALS erating units that convert coal refuse into port relative to the progress made in licens- energy; to the Committee on Environment ing and constructing the Alaska Natural Gas The following petitions and memo- and Public Works. Pipeline; to the Committee on Energy and rials were laid before the Senate and H.R. 1917. An act to allow for judicial re- Natural Resources. were referred or ordered to lie on the view of any final rule addressing national EC–4535. A communication from the Assist- table as indicated: ant Secretary for Legislation, Department of emission standards for hazardous air pollut- POM–179. A resolution adopted by the Health and Human Services, transmitting, ants for brick and structural clay products Mayor and City Council of the City of pursuant to law, a report entitled ‘‘Admin- or for clay ceramics manufacturing before Gautier, Mississippi, urging the Bureau of istering Section 113 of the Preventing Sex requiring compliance with such rule; to the Ocean Energy Management to finalize a 2019– Trafficking and Strengthening Families Committee on Environment and Public 2024 National Outer Continental Shelf (OCS) Works Act’’; to the Committee on Finance. EC–4536. A communication from the Assist- Program that maintains and expands access f ant Secretary for Legislation, Department of to Gulf of Mexico energy resources, and urg- ing the United States Congress to keep its ENROLLED BILL PRESENTED Health and Human Services, transmitting, pursuant to law, a report entitled ‘‘The commitment under the Gulf of Mexico En- The Secretary of the Senate reported Medicare Secondary Payer Commercial Re- ergy Security Act to share OCS revenues that on today, March 8, 2018, she had payment Center in Fiscal Year 2017’’; to the with Gulf producing states and their coastal presented to the President of the Committee on Finance. political subdivisions, and to lift the existing United States the following enrolled EC–4537. A communication from the Chief cap on revenue-sharing with the Gulf Coast states; to the Committee on Energy and Nat- bill: of the Publications and Regulations Branch, Internal Revenue Service, Department of the ural Resources. S. 831. An act to designate the facility of Treasury, transmitting, pursuant to law, the POM–180. A petition from a citizen of the the United States Postal Service located at report of a rule entitled ‘‘Balanced System State of Texas relative to Social Security 120 West Pike Street in Canonsburg, Penn- for Measuring Organizational and Employee benefits; to the Committee on Finance. sylvania, as the ‘‘Police Officer Scott Performance Within the Internal Revenue f Bashioum Post Office Building’’. Service’’ ((RIN1545–BL88) (TD 9831)) received f in the Office of the President of the Senate INTRODUCTION OF BILLS AND on March 7, 2018; to the Committee on Fi- JOINT RESOLUTIONS EXECUTIVE AND OTHER nance. The following bills and joint resolu- COMMUNICATIONS EC–4538. A communication from the United tions were introduced, read the first States Trade Representative, Executive Of- The following communications were and second times by unanimous con- laid before the Senate, together with fice of the President, transmitting, pursuant to law, the 2018 Trade Policy Agenda and 2017 sent, and referred as indicated: accompanying papers, reports, and doc- Annual Report of the President of the United By Mr. UDALL: uments, and were referred as indicated: States on the Trade Agreements Program; to S. 2519. A bill to amend the Clean Air Act EC–4529. A communication from the Under the Committee on Finance. to reform the renewable fuel program under Secretary of Defense (Personnel and Readi- EC–4539. A communication from the Assist- that Act, and for other purposes; to the Com- ness), transmitting the report of three (3) of- ant Legal Adviser for Treaty Affairs, Depart- mittee on Environment and Public Works.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1578 CONGRESSIONAL RECORD — SENATE March 8, 2018 By Ms. DUCKWORTH (for herself, Mr. By Mr. CASEY (for himself and Ms. S. 502 BOOKER, Mr. SCHATZ, and Mr. HASSAN): At the request of Ms. SMITH, her PORTMAN): S. 2530. A bill to address the needs of indi- name was added as a cosponsor of S. S. 2520. A bill to amend the Communica- viduals with disabilities within the Jeanne 502, a bill to modify the boundary of tions Act of 1934 to require the Federal Com- Clery Disclosure of Campus Security Policy munications Commission to ensure just and and Campus Crime Statistics Act; to the Voyageurs National Park in the State reasonable charges for inmate telephone and Committee on Health, Education, Labor, and of Minnesota, and for other purposes. advanced communications services; to the Pensions. S. 510 Committee on Commerce, Science, and By Mr. HATCH (for himself and Mr. At the request of Mr. BLUMENTHAL, Transportation. LEE): the name of the Senator from Min- By Mr. BLUMENTHAL (for himself and S. 2531. A bill for the determination of the nesota (Ms. SMITH) was added as a co- Mr. GRAHAM): taking of private property and damages S. 2521. A bill to authorize the issuance of caused by the Department of Interior; to the sponsor of S. 510, a bill to protect a extreme risk protection orders; to the Com- Committee on the Judiciary. woman’s right and ability to determine mittee on the Judiciary. By Mr. YOUNG (for himself and Mrs. whether and when to bear a child or By Mr. BLUNT (for himself, Ms. SHAHEEN): end a pregnancy by limiting restric- HIRONO, Ms. KLOBUCHAR, and Ms. COL- S.J. Res. 55. A joint resolution to require tions on the provision of abortion serv- LINS): certifications regarding actions by Saudi ices. S. 2522. A bill to provide for automatic ac- Arabia in Yemen, and for other purposes; to S. 545 quisition of United States citizenship for cer- the Committee on Foreign Relations. tain internationally adopted individuals, and At the request of Mr. PAUL, the for other purposes; to the Committee on the f names of the Senator from Iowa (Mr. Judiciary. GRASSLEY) and the Senator from Ari- By Mrs. CAPITO (for herself and Mr. SUBMISSION OF CONCURRENT AND zona (Mr. MCCAIN) were added as co- HEINRICH): SENATE RESOLUTIONS sponsors of S. 545, a bill to preserve and S. 2523. A bill to amend title XVIII of the The following concurrent resolutions Social Security Act to provide coverage protect the free choice of individual under the Medicare program for FDA-ap- and Senate resolutions were read, and employees to form, join, or assist labor proved qualifying colorectal cancer screen- referred (or acted upon), as indicated: organizations, or to refrain from such ing blood-based tests, and for other purposes; By Mrs. SHAHEEN (for herself, Ms. activities. to the Committee on Finance. COLLINS, Ms. BALDWIN, and Mr. MUR- S. 569 By Mr. DONNELLY (for himself, Ms. PHY): MURKOWSKI, and Ms. HASSAN): S. Res. 426. A resolution supporting the At the request of Ms. CANTWELL, the S. 2524. A bill to amend the Public Health goals of International Women’s Day; to the names of the Senator from Alabama Service Act to authorize a loan repayment Committee on Foreign Relations. (Mr. JONES) and the Senator from Min- program for substance use disorder treat- By Ms. STABENOW: nesota (Ms. SMITH) were added as co- ment employees, and for other purposes; to S. Res. 427. A resolution supporting the sponsors of S. 569, a bill to amend title the Committee on Health, Education, Labor, goals and ideals of Social Work Month dur- and Pensions. 54, United States Code, to provide con- ing March 2018 and World Social Work Day sistent and reliable authority for, and By Mr. LEE (for himself, Mr. RUBIO, on March 20, 2018; to the Committee on Mr. CRAPO, Mr. HATCH, Mr. INHOFE, Health, Education, Labor, and Pensions. for the funding of, the Land and Water Mr. BLUNT, Mr. RISCH, Mr. WICKER, By Ms. CORTEZ MASTO (for herself, Conservation Fund to maximize the ef- Mr. ENZI, Mr. JOHNSON, Mr. ROUNDS, Mr. MENENDEZ, Mr. SCHUMER, Mr. fectiveness of the Fund for future gen- Mr. BARRASSO, Mr. SASSE, Mr. DURBIN, Mrs. FEINSTEIN, Mrs. MUR- erations, and for other purposes. HOEVEN, Mr. THUNE, Mr. PAUL, Mr. RAY, Mr. REED, Mr. NELSON, Ms. S. 639 PERDUE, Mr. SCOTT, Mr. COTTON, Mr. CANTWELL, Mr. SANDERS, Mr. BROWN, At the request of Mr. PORTMAN, the BOOZMAN, Mr. CRUZ, and Mr. MORAN): Ms. KLOBUCHAR, Mr. WHITEHOUSE, Mr. S. 2525. A bill to ensure that the Federal name of the Senator from Indiana (Mr. UDALL, Mr. BENNET, Mr. COONS, Ms. Government shall not take any discrimina- BALDWIN, Ms. HIRONO, Mr. HEINRICH, DONNELLY) was added as a cosponsor of tory action against a person, wholly or par- Ms. WARREN, Mr. MARKEY, Mr. BOOK- S. 639, a bill to clarify that nonprofit tially on the basis that such person speaks, ER, Mr. VAN HOLLEN, Ms. DUCKWORTH, organizations such as Habitat for Hu- or acts, in accordance with a sincerely held Ms. HASSAN, Ms. HARRIS, Ms. SMITH, religious belief or moral conviction that manity may accept donated mortgage Mr. BLUMENTHAL, and Mrs. GILLI- marriage is or should be recognized as a appraisals, and for other purposes. BRAND): union of one man and one woman, or two in- S. 781 S. Res. 428. A resolution recognizing the dividuals as recognized under Federal law, or heritage, culture, and contributions of At the request of Mr. CASSIDY, the that sexual relations outside marriage are Latinas in the United States; to the Com- name of the Senator from Oklahoma improper; to the Committee on the Judici- mittee on the Judiciary. (Mr. INHOFE) was added as a cosponsor ary. By Mr. LEAHY (for himself, Mrs. FEIN- By Mr. HATCH (for himself and Mr. of S. 781, a bill to amend the Public STEIN, Mr. CRUZ, and Mr. RUBIO): WYDEN): Health Service Act to limit the liabil- S. 2526. A bill to amend the Internal Rev- S. Res. 429. A resolution commemorating ity of health care professionals who enue Code of 1986 to encourage retirement the 59th anniversary of Tibet’s 1959 uprising volunteer to provide health care serv- as ‘‘Tibetan Rights Day’’ , and expressing savings, and for other purposes; to the Com- ices in response to a disaster. mittee on Finance. support for the human rights and religious S. 1016 By Mr. CARDIN (for himself, Mr. freedom of the Tibetan people and the Ti- RISCH, and Mr. KENNEDY): betan Buddhist faith community; to the At the request of Mr. SCHATZ, the S. 2527. A bill to amend the Small Business Committee on Foreign Relations. names of the Senator from Alaska (Ms. Investment Act of 1958 to increase the f MURKOWSKI) and the Senator from amount of leverage made available to small Montana (Mr. TESTER) were added as business investment companies; to the Com- ADDITIONAL COSPONSORS cosponsors of S. 1016, a bill to amend mittee on Small Business and Entrepreneur- title XVIII of the Social Security Act ship. S. 177 By Mr. HATCH (for himself, Mr. COR- At the request of Mr. LEE, the name to expand access to telehealth services, NYN, Mr. LANKFORD, Ms. BALDWIN, of the Senator from Arizona (Mr. and for other purposes. and Mr. MANCHIN): FLAKE) was added as a cosponsor of S. S. 1121 S. 2528. A bill to call on the United States 177, a bill to provide for congressional At the request of Mr. HATCH, the and its partners to continue support for the review of the imposition of duties and name of the Senator from Iowa (Mrs. Iranian people in their fight for freedom and prosperity; to the Committee on Foreign Re- other trade measures by the executive ERNST) was added as a cosponsor of S. lations. branch, and for other purposes. 1121, a bill to establish a postsecondary By Ms. BALDWIN (for herself, Mrs. S. 236 student data system. GILLIBRAND, Ms. WARREN, and Mr. At the request of Mr. WYDEN, the S. 1580 SANDERS): name of the Senator from Minnesota At the request of Mr. RUBIO, the S. 2529. A bill to amend the Internal Rev- enue Code of 1986 to reduce the applicable (Ms. SMITH) was added as a cosponsor name of the Senator from Oregon (Mr. percentage under the premium assistance of S. 236, a bill to amend the Internal WYDEN) was added as a cosponsor of S. tax credit for households with young adults; Revenue Code of 1986 to reform tax- 1580, a bill to enhance the trans- to the Committee on Finance. ation of alcoholic beverages. parency, improve the coordination, and

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1579 intensify the impact of assistance to expand, intensify, and coordinate fun- 2421, a bill to amend the Comprehen- support access to primary and sec- damental, translational, and clinical sive Environmental Response, Com- ondary education for displaced children research of the National Institutes of pensation, and Liability Act of 1980 to and persons, including women and Health with respect to opioid abuse, provide an exemption from certain no- girls, and for other purposes. the understanding of pain, and the dis- tice requirements and penalties for re- S. 1613 covery and development of safer and leases of hazardous substances from At the request of Mr. RISCH, the more effective treatments and preven- animal waste at farms. name of the Senator from Indiana (Mr. tive interventions for pain. S. 2469 DONNELLY) was added as a cosponsor of S. 2270 At the request of Mr. BROWN, the S. 1613, a bill to amend the Pittman- At the request of Mr. DAINES, the name of the Senator from Maine (Mr. Robertson Wildlife Restoration Act to name of the Senator from South Da- KING) was added as a cosponsor of S. modernize the funding of wildlife con- kota (Mr. ROUNDS) was added as a co- 2469, a bill to amend the Public Health servation, and for other purposes. sponsor of S. 2270, a bill to make im- Service Act to enhance efforts to ad- S. 1693 provements to the account for the dress antibiotic resistance, and for other purposes. At the request of Mr. PORTMAN, the State response to the opioid abuse cri- name of the Senator from Alabama sis to improve tribal health. S. 2475 (Mr. JONES) was added as a cosponsor S. 2296 At the request of Mr. FLAKE, the of S. 1693, a bill to amend the Commu- At the request of Mr. JOHNSON, the name of the Senator from Maine (Ms. nications Act of 1934 to clarify that name of the Senator from Missouri COLLINS) was added as a cosponsor of S. section 230 of that Act does not pro- (Mr. BLUNT) was added as a cosponsor 2475, a bill to amend title 18, United hibit the enforcement against pro- of S. 2296, a bill to increase access to States Code, to prohibit the illegal viders and users of interactive com- agency guidance documents. modification of firearms, and for other puter services of Federal and State S. 2329 purposes. S. 2495 criminal and civil law relating to sex At the request of Mr. HOEVEN, the trafficking. name of the Senator from Nebraska At the request of Mr. HATCH, the names of the Senator from Missouri S. 1806 (Mrs. FISCHER) was added as a cospon- (Mr. BLUNT) and the Senator from At the request of Mrs. MURRAY, the sor of S. 2329, a bill to reauthorize and Rhode Island (Mr. WHITEHOUSE) were name of the Senator from Maryland amend the Water Infrastructure Fi- added as cosponsors of S. 2495, a bill to (Mr. CARDIN) was added as a cosponsor nance and Innovation Act of 2014, and reauthorize the grant program for of S. 1806, a bill to amend the Child for other purposes. school security in the Omnibus Crime Care and Development Block Grant Act S. 2353 Control and Safe Streets Act of 1968. of 1990 and the Head Start Act to pro- At the request of Mr. COTTON, the S.J. RES. 54 mote child care and early learning, and name of the Senator from Wyoming At the request of Mr. SANDERS, the for other purposes. (Mr. BARRASSO) was added as a cospon- names of the Senator from Vermont S. 1933 sor of S. 2353, a bill to require the Sec- (Mr. LEAHY) and the Senator from Cali- At the request of Mr. LEE, the name retary of the Treasury to report on the fornia (Mrs. FEINSTEIN) were added as estimated total assets under direct or of the Senator from Minnesota (Ms. cosponsors of S.J. Res. 54, a joint reso- indirect control by certain senior Ira- SMITH) was added as a cosponsor of S. lution to direct the removal of United nian leaders and other figures, and for 1933, a bill to focus limited Federal re- States Armed Forces from hostilities other purposes. sources on the most serious offenders. in the Republic of Yemen that have not S. 2135 S. 2364 been authorized by Congress. OOZMAN At the request of Mr. CORNYN, the At the request of Mr. B , the AMENDMENT NO. 2046 name of the Senator from Texas (Mr. names of the Senator from Arkansas At the request of Mr. PAUL, the (Mr. BOOZMAN), the Senator from Mis- CORNYN) was added as a cosponsor of S. names of the Senator from Wisconsin 2364, a bill to amend the Water Infra- sissippi (Mr. COCHRAN), the Senator (Ms. BALDWIN), the Senator from Flor- structure Finance and Innovation Act from Nebraska (Mrs. FISCHER), the Sen- ida (Mr. RUBIO) and the Senator from of 2014 to provide to State infrastruc- ator from New York (Mrs. GILLIBRAND), Wyoming (Mr. ENZI) were added as co- the Senator from Virginia (Mr. KAINE) ture financing authorities additional sponsors of amendment No. 2046 in- and the Senator from Oregon (Mr. opportunities to receive loans under tended to be proposed to S. 2155, a bill MERKLEY) were added as cosponsors of that Act to support drinking water and to promote economic growth, provide S. 2135, a bill to enforce current law re- clean water State revolving funds to tailored regulatory relief, and enhance garding the National Instant Criminal deliver water infrastructure to commu- consumer protections, and for other Background Check System. nities across the United States, and for purposes. other purposes. S. 2143 AMENDMENT NO. 2053 At the request of Mrs. MURRAY, the S. 2374 At the request of Ms. STABENOW, the name of the Senator from Massachu- At the request of Mr. CARPER, the name of the Senator from Wisconsin setts (Ms. WARREN) was added as a co- name of the Senator from Montana (Ms. BALDWIN) was added as a cospon- sponsor of S. 2143, a bill to amend the (Mr. TESTER) was added as a cosponsor sor of amendment No. 2053 intended to National Labor Relations Act to of S. 2374, a bill to amend the Improper be proposed to S. 2155, a bill to promote strengthen protections for employees Payments Elimination and Recovery economic growth, provide tailored reg- wishing to advocate for improved Improvement Act of 2012, including ulatory relief, and enhance consumer wages, hours, or other terms or condi- making changes to the Do Not Pay Ini- protections, and for other purposes. tions of employment, to expand cov- tiative, for improved detection, preven- AMENDMENT NO. 2056 erage under such Act, to provide a tion, and recovery of improper pay- At the request of Ms. WARREN, the process for achieving initial collective ments to deceased individuals, and for name of the Senator from Wisconsin bargaining agreements, and to provide other purposes. (Ms. BALDWIN) was added as a cospon- for stronger remedies for interference S. 2386 sor of amendment No. 2056 intended to with these rights, and for other pur- At the request of Mr. GRASSLEY, the be proposed to S. 2155, a bill to promote poses. name of the Senator from Texas (Mr. economic growth, provide tailored reg- S. 2260 CORNYN) was added as a cosponsor of S. ulatory relief, and enhance consumer At the request of Mr. SCHATZ, the 2386, a bill to provide additional protec- protections, and for other purposes. names of the Senator from Delaware tions for our veterans. AMENDMENT NO. 2057 (Mr. COONS) and the Senator from Flor- S. 2421 At the request of Ms. WARREN, the ida (Mr. NELSON) were added as cospon- At the request of Mrs. FISCHER, the name of the Senator from Wisconsin sors of S. 2260, a bill to establish and name of the Senator from Georgia (Mr. (Ms. BALDWIN) was added as a cospon- fund an Opioids and STOP Initiative to PERDUE) was added as a cosponsor of S. sor of amendment No. 2057 intended to

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1580 CONGRESSIONAL RECORD — SENATE March 8, 2018 be proposed to S. 2155, a bill to promote AMENDMENT NO. 2094 tirement Enhancement and Savings economic growth, provide tailored reg- At the request of Mrs. SHAHEEN, the Act of 2018. This bill makes a number ulatory relief, and enhance consumer name of the Senator from Illinois (Ms. of improvements to our Nation’s em- protections, and for other purposes. DUCKWORTH) was added as a cosponsor ployer-provided retirement plans and is AMENDMENT NO. 2060 of amendment No. 2094 intended to be the result of several years of bipartisan At the request of Ms. WARREN, the proposed to S. 2155, a bill to promote work on the part of the Finance Com- name of the Senator from Wisconsin economic growth, provide tailored reg- mittee. The Retirement Enhancement (Ms. BALDWIN) was added as a cospon- ulatory relief, and enhance consumer and Savings Act was unanimously re- sor of amendment No. 2060 intended to protections, and for other purposes. ported out of the Finance Committee be proposed to S. 2155, a bill to promote AMENDMENT NO. 2095 in the prior Congress, and I urge my economic growth, provide tailored reg- At the request of Mrs. SHAHEEN, the colleagues to support this bill. ulatory relief, and enhance consumer name of the Senator from Illinois (Ms. The bill that Senator HATCH and I have introduced is identical to the bill protections, and for other purposes. DUCKWORTH) was added as a cosponsor reported by the Finance Committee ex- AMENDMENT NO. 2061 of amendment No. 2095 intended to be cept for updating effective dates, omit- At the request of Ms. WARREN, the proposed to S. 2155, a bill to promote ting provisions that already have been name of the Senator from Wisconsin economic growth, provide tailored reg- enacted into law, and several technical (Ms. BALDWIN) was added as a cospon- ulatory relief, and enhance consumer modifications to the provisions impact- sor of amendment No. 2061 intended to protections, and for other purposes. ing the United States Tax Court and to be proposed to S. 2155, a bill to promote AMENDMENT NO. 2102 the safe harbor for employers for annu- economic growth, provide tailored reg- At the request of Mr. INHOFE, the ity provider selection. ulatory relief, and enhance consumer name of the Senator from Florida (Mr. The safe harbor for annuity provider protections, and for other purposes. RUBIO) was added as a cosponsor of selection is a critical change to current AMENDMENT NO. 2063 amendment No. 2102 intended to be pro- law that will encourage employers to At the request of Ms. WARREN, the posed to S. 2155, a bill to promote eco- offer annuities to employees in 401(k) name of the Senator from Wisconsin nomic growth, provide tailored regu- and other defined contribution retire- (Ms. BALDWIN) was added as a cospon- latory relief, and enhance consumer ment plans. Many employers are reluc- sor of amendment No. 2063 intended to protections, and for other purposes. tant to offer annuities in these types of be proposed to S. 2155, a bill to promote AMENDMENT NO. 2103 plans because of uncertainty about economic growth, provide tailored reg- At the request of Mr. DURBIN, the their liability in the event that an in- ulatory relief, and enhance consumer names of the Senator from New Hamp- surer becomes insolvent and is unable protections, and for other purposes. shire (Ms. HASSAN) and the Senator to pay benefits under the annuity. This AMENDMENT NO. 2066 from Maryland (Mr. VAN HOLLEN) were safe harbor provides certainty for em- At the request of Ms. WARREN, the added as cosponsors of amendment No. ployers who select insurers who are fi- name of the Senator from Wisconsin 2103 intended to be proposed to S. 2155, nancially capable of meeting their (Ms. BALDWIN) was added as a cospon- a bill to promote economic growth, commitments and are in good standing sor of amendment No. 2066 intended to provide tailored regulatory relief, and with State regulators. The technical be proposed to S. 2155, a bill to promote enhance consumer protections, and for modification to the safe harbor is a economic growth, provide tailored reg- other purposes. one-word change that clarifies that the ulatory relief, and enhance consumer AMENDMENT NO. 2120 safe harbor is solely for the selection of protections, and for other purposes. At the request of Mr. MENENDEZ, the the insurer and the possibility that the AMENDMENT NO. 2067 name of the Senator from Wisconsin insurer may not be able to make pay- At the request of Ms. WARREN, the (Ms. BALDWIN) was added as a cospon- ments due under the contract and is name of the Senator from Wisconsin sor of amendment No. 2120 intended to not a safe harbor for the selection of (Ms. BALDWIN) was added as a cospon- be proposed to S. 2155, a bill to promote the contract. As under existing law, sor of amendment No. 2067 intended to economic growth, provide tailored reg- the plan fiduciary remains required to be proposed to S. 2155, a bill to promote ulatory relief, and enhance consumer prudently select the type of annuity economic growth, provide tailored reg- protections, and for other purposes. that is best for participants and bene- ficiaries. ulatory relief, and enhance consumer AMENDMENT NO. 2133 By Mr. CARDIN (for himself, Mr. protections, and for other purposes. At the request of Mr. REED, the name RISCH, and Mr. KENNEDY): AMENDMENT NO. 2069 of the Senator from Hawaii (Ms. S. 2527. A bill to amend the Small At the request of Ms. WARREN, the HIRONO) was added as a cosponsor of name of the Senator from Wisconsin Business Investment Act of 1958 to in- amendment No. 2133 intended to be pro- crease the amount of leverage made (Ms. BALDWIN) was added as a cospon- posed to S. 2155, a bill to promote eco- sor of amendment No. 2069 intended to available to small business investment nomic growth, provide tailored regu- companies; to the Committee on Small be proposed to S. 2155, a bill to promote latory relief, and enhance consumer economic growth, provide tailored reg- Business and Entrepreneurship. protections, and for other purposes. Mr. CARDIN. Mr. President, I rise ulatory relief, and enhance consumer AMENDMENT NO. 2134 today to introduce a common sense protections, and for other purposes. At the request of Mr. KENNEDY, the piece of legislation that will expand AMENDMENT NO. 2079 name of the Senator from Iowa (Mrs. the ability of the Small Business Ad- At the request of Mr. BROWN, the ERNST) was added as a cosponsor of ministration (SBA) to nurture innova- name of the Senator from Wisconsin amendment No. 2134 intended to be pro- tive and high-growth small businesses (Ms. BALDWIN) was added as a cospon- posed to S. 2155, a bill to promote eco- in Maryland and across the country. sor of amendment No. 2079 intended to nomic growth, provide tailored regu- Let me first say, I recently returned be proposed to S. 2155, a bill to promote latory relief, and enhance consumer to the Senate Committee on Small economic growth, provide tailored reg- protections, and for other purposes. Business & Entrepreneurship as the ulatory relief, and enhance consumer f Ranking Member. I look forward to protections, and for other purposes. continuing the important work of help- AMENDMENT NO. 2088 STATEMENTS ON INTRODUCED ing America’s 29 million small busi- At the request of Mrs. GILLIBRAND, BILLS AND JOINT RESOLUTIONS nesses—the job creating engine of the the name of the Senator from Wis- By Mr. HATCH (for himself and country—access the essential capital consin (Ms. BALDWIN) was added as a Mr. WYDEN): to grow, to earn their fair share of Fed- cosponsor of amendment No. 2088 in- S. 2526. A bill to amend the Internal eral contracts, and to take advantage tended to be proposed to S. 2155, a bill Revenue Code of 1986 to encourage re- of SBA’s counseling and mentoring to promote economic growth, provide tirement savings, and for other pur- programs that help entrepreneurs mar- tailored regulatory relief, and enhance poses; to the Committee on Finance. ket and manage their businesses. consumer protections, and for other Mr. WYDEN. Mr. President, Senator The Small Business Investment Op- purposes. HATCH and I have introduced the Re- portunity Act is straightforward. It

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1581 modifies SBA’s Small Business Invest- submitted the following resolution; (2) countering terrorism; ment Company (SBIC) program by in- which was referred to the Committee (3) resolving disputes through nonviolent creasing the amount of capital that on Foreign Relations: mediation and negotiation; and (4) stabilizing societies by improving ac- SBICs with a single fund can invest in S. RES. 426 cess to peace and security— qualifying small businesses. Whereas, as of March 2018, there are more (A) services; The SBIC program stimulates invest- than 3,672,000,000 women in the world; (B) institutions; and ment in America’s high-growth small Whereas women around the world— (C) venues for decisionmaking; businesses. SBICs are privately-owned (1) have fundamental rights; Whereas, according to the United Nations, and managed investment funds that (2) participate in the political, social, and peace negotiations are more likely to end in use their own capital—plus funds bor- economic lives of their communities; a peace agreement when women’s groups (3) play a critical role in providing and car- rowed with an SBA guaranty—to cap- play an influential role in the negotiation ing for their families; process; italize small businesses. (4) contribute substantially to economic Whereas, according to a study by the Inter- Last year, SBICs made 36 invest- growth and the prevention and resolution of national Peace Institute, a peace agreement ments totaling $61.3 million in 12 inno- conflict; and is 35 percent more likely to last at least 15 vative Maryland firms. Over the past (5) as farmers and caregivers, play an im- years if women participate in the develop- five years, the program has channeled portant role in the advancement of food se- ment of the peace agreement; more than $21 billion of capital to 6,400 curity for their communities; Whereas, according to the Bureau of Inter- American small businesses across a va- Whereas the advancement of women national Narcotics and Law Enforcement Af- around the world is a foreign policy priority fairs of the Department of State, the full and riety of industries. for the United States; The program operates at no expense meaningful participation of women in secu- Whereas 2018 marks— rity forces vastly enhances the effectiveness to taxpayers. Instead, the cost of the (1) the 73rd anniversary of the entry into of the security forces; program is covered by fees paid by force of the Charter of the United Nations, Whereas approximately 15,000,000 girls are SBICs and their portfolio companies. which was the first international agreement married every year before they reach the age Consider this: since the program to affirm the principle of equality between of 18, which means that— launched in 1958, SBIC has: women and men; (1) 41,000 girls are married every day; or Deployed more than $67 billion of (2) the 23rd anniversary of the Fourth (2) 1 girl is married every 2 seconds; capital; World Conference on Women, at which 189 Whereas, according to the International Made more than 166,000 investments countries committed to integrating gender Labor Organization, an estimated 40,300,000 equality into each dimension of society; and people were victims of modern slavery in in American small businesses; and (3) the 7th anniversary of the establish- Licensed more than 2,100 investment 2016, and 71 percent of those victims were ment of the first United States National Ac- women and girls; funds. tion Plan on Women, Peace, and Security, Whereas, according to UNICEF— Some of America’s most iconic which includes a comprehensive set of com- (1) approximately 1⁄4 of girls between the brands have received investment cap- mitments by the United States to advance ages of 15 and 19 are victims of physical vio- ital from SBICs, including Apple, the meaningful participation of women in lence; and Tesla, Whole Foods, Staples, Intel, decisionmaking relating to matters of war or (2) it is estimated that 1 in 3 women FedEx and Costco, among others. peace; around the world has experienced some form Under current law, SBA can guar- Whereas the National Security Strategy of of physical or sexual violence; antee up to $150 million of an SBIC in- the United States, revised in December Whereas, according to the 2016 report of 2017— vestment fund. Our legislation in- the United Nations Office on Drugs and (1) declares that societies that empower Crime entitled ‘‘Global Report on Traf- creases that cap to $175 million and women to participate fully in civic and eco- ficking in Persons’’— unlocks additional capital for small nomic life are more prosperous and peaceful; (1) 79 percent of all detected trafficking businesses with high-growth potential. (2) supports efforts to advance the equality victims are women and children; and The cap has not been raised since 2009. of women, protect the rights of women and (2) while trafficking for the purposes of Raising this cap would simply keep girls, and promote women and youth em- sexual exploitation and forced labor are the up with inflation and maximize the powerment programs; and most prominently detected forms of traf- (3) recognizes that governments of coun- ficking, the trafficking of women and girls amount of capital SBICs can direct to tries that fail to treat women equally do not innovative small businesses that hire for the purpose of forced marriage is emerg- allow the societies of those countries to ing as a more prevalent form of trafficking; our workers, support our communities, reach full potential; Whereas 603,000,000 women live in countries drive innovation and help our country Whereas the United States National Action in which domestic violence is not maintain its competitive edge. Plan on Women, Peace, and Security, revised criminalized; This bill also builds upon a change in June 2016, states that ‘‘[d]eadly conflicts Whereas, on August 10, 2012, the United that Senator RISCH, Senator SHAHEEN can be more effectively avoided, and peace States Government launched a strategy enti- and I passed in 2015 to increase the can be best forged and sustained, when tled ‘‘United States Strategy to Prevent and maximum amount of leverage to SBICs women become equal partners in all aspects Respond to Gender-Based Violence Glob- of peacebuilding and conflict prevention, with more than one fund. As some of ally’’, which is the first interagency strategy when their lives are protected, their voices that— my colleagues will recall, those types heard, and their perspectives taken into ac- (1) addresses gender-based violence around of SBICs are known as ‘‘Family of count.’’; the world; Funds.’’ Whereas there are 72 national action plans (2) advances the rights and status of As with the bill in 2015, the legisla- around the world, and there are several addi- women and girls; tion we are introducing today is also tional national action plans known to be in (3) promotes gender equality in United bipartisan and bicameral. I am pleased development; States foreign policy; and the Small Business Investment Oppor- Whereas the joint strategy of the Depart- (4) works to bring about a world in which tunity Act has the support of our ment of State and the United States Agency all individuals can pursue their aspirations for International Development entitled ‘‘De- without the threat of violence; Chairman, Senator RISCH, as well as partment of State & USAID Joint Strategy Whereas, on October 6, 2017, the Women, Senators SHAHEEN and KENNEDY. An on Countering Violent Extremism’’ and Peace, and Security Act was enacted into identical bill passed the House last dated May 2016— law, which— year, and the legislation is endorsed by (1) notes that women can play a critical (1) requires the President to submit a gov- the Small Business Investor Alliance. role in identifying and addressing drivers of ernment-wide ‘‘Women, Peace, and Security Thank you, I yield the floor. violent extremism in their families, commu- Strategy’’ describing how the United States nities, and broader society; and would promote and strengthen the participa- f (2) commits to supporting programs that tion of women in peace negotiations and con- SUBMITTED RESOLUTIONS engage women ‘‘as key stakeholders in pre- flict prevention overseas; venting and countering violent extremism in (2) requires the Department of State, the their communities’’; United States Agency for International De- SENATE RESOLUTION 426—SUP- Whereas, despite the historical underrep- velopment, and the Department of Defense PORTING THE GOALS OF INTER- resentation of women in conflict resolution to train personnel in matters related to the NATIONAL WOMEN’S DAY processes, women in conflict-affected regions strategy of the President; have nevertheless achieved significant suc- (3) requires the Department of State to Mrs. SHAHEEN (for herself, Ms. COL- cess in— brief the appropriate congressional commit- LINS, Ms. BALDWIN, and Mr. MURPHY) (1) moderating violent extremism; tees on that training;

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1582 CONGRESSIONAL RECORD — SENATE March 8, 2018 (4) encourages the Department of State Whereas despite the achievements of indi- SENATE RESOLUTION 427—SUP- and the United States Agency for Inter- vidual female leaders— PORTING THE GOALS AND national Development to establish guidelines (1) women around the world remain vastly IDEALS OF SOCIAL WORK MONTH underrepresented in— for overseas personnel consulting with stake- DURING MARCH 2018 AND WORLD holders regarding efforts to promote the par- (A) high-level positions; and ticipation of women in the mediation and ne- (B) national and local legislatures and SOCIAL WORK DAY ON MARCH 20, gotiation processes; and governments; and 2018 (2) according to the Inter-Parliamentary (5) requires the President to evaluate the Ms. STABENOW submitted the fol- impact of the ‘‘Women, Peace, and Security Union, women account for only 22 percent of national parliamentarians and 17.7 percent of lowing resolution; which was referred Strategy’’ and report the results to Congress; government ministers; Whereas, on October 27, 2017, Ambassador to the Committee on Health, Edu- Whereas, according to the World Health Michele J. Sison, United States Deputy Per- cation, Labor, and Pensions: Organization, during the period beginning in manent Representative to the United Na- S. RES. 427 1990 and ending in 2015, global maternal mor- tions, stated in a United Nations Security tality decreased by approximately 44 per- Whereas the profession of social work is— Council debate on women, peace, and secu- cent, but approximately 830 women die from (1) dedicated to enhancing the well-being rity that— preventable causes relating to pregnancy or of others and meeting the basic needs of all (1) the role of women in maintaining inter- childbirth each day, and 99 percent of all ma- people, especially the most vulnerable people national peace and security is more critical ternal deaths occur in developing countries; in society; and than ever; Whereas according to the World Health Or- (2) expected to grow faster than average (2) collective work is still required for ganization— relative to all professions over the next 6 women to gain more positions of leadership (1) suicide is the leading cause of death for years, with more than 649,000 individuals ex- in government and civil society, and more girls between the ages of 15 and 19; and pected to be employed as social workers by seats at the negotiating table; (2) complications from pregnancy or child- 2024; (3) a growing body of evidence confirms birth is the second-leading cause of death for Whereas social workers embody the theme that the inclusion of women in peace proc- those girls; of Social Work Month in 2018, which is ‘‘So- esses helps reduce conflict and advance sta- Whereas the Office of the United Nations cial workers: Leaders. Advocates. Cham- bility long-term; and High Commissioner for Refugees reports that pions.’’; (4) the involvement of women in efforts to 1 women and girls comprise approximately ⁄2 Whereas social workers are— bring about peace and security lead to more of the 65,300,000 refugees and internally dis- (1) employed throughout society, including sustainable results; placed or stateless individuals in the world; in government, schools, universities, social Whereas, in June 2016, the Department of Whereas it is imperative— service agencies, the military, and health State released an update to the strategy en- (1) to alleviate violence and discrimination care and mental health organizations; titled ‘‘United States Strategy to Prevent against women; and (2) the largest group of providers of mental and Respond to Gender-Based Violence Glob- (2) to afford women every opportunity to health services in the United States; and be full and productive members of their com- ally’’, based on internal evaluations, lessons (3) present in times of crisis, helping— learned, and consultations with civil society, munities; (A) individuals overcome issues such as that underscores that ‘‘preventing and re- Whereas violence, discrimination, and the death of a loved one and grief; and sponding to gender-based violence is a cor- harmful practices against women and girls (B) individuals and communities recover nerstone of the U.S. government’s commit- are a direct result of negative social norms from natural disasters, including floods ment to advancing human rights and pro- that undervalue females in society; and and hurricanes; moting gender equality and the empower- Whereas March 8, 2018, is recognized as Whereas the Department of Veterans Af- ment of women and girls’’; International Women’s Day, a global day— fairs is one of the largest employers of social Whereas the ability of women and girls to (1) to celebrate the economic, political, workers who hold advanced degrees; realize their full potential is critical to the and social achievements of women in the Whereas, for decades, social workers have ability of a country to achieve— past, present, and future; and pushed to ensure rights for all people, includ- (1) strong and lasting economic growth; (2) to recognize the obstacles that women ing women, African Americans, Latinos, in- and face in the struggle for equal rights and op- dividuals who are disabled, individuals who (2) political and social stability; portunities: Now, therefore, be it Resolved, That the Senate— are LGBTQ, and various ethnic, cultural, and Whereas, according to the United Nations (1) supports the goals of International religious groups; Educational, Scientific, and Cultural Organi- Women’s Day; Whereas the profession of social work has zation— (2) recognizes that the empowerment of helped bring about some of the most pro- (1) 2⁄3 of the 778,000,000 illiterate individuals in the world are female; and women is inextricably linked to the poten- found, positive changes in society over the (2) 130,000,000 girls worldwide are not in tial of a country to generate— past century, including improvements with school; (A) economic growth; respect to— Whereas, according to the United States (B) sustainable democracy; and (1) voting rights; Agency for International Development, as (C) inclusive security; (2) workplace safety; compared to uneducated women, educated (3) recognizes and honors individuals in the (3) the minimum wage; and women are— United States and around the world, includ- (4) social safety net programs that help (1) less likely to marry as children; and ing women human rights defenders and civil prevent poverty and hunger; and (2) more likely to have healthier families; society leaders, that have worked through- Whereas social workers continue to engage Whereas, although the United Nations Mil- out history to ensure that women are guar- and bring together individuals, communities, lennium Project reached the goal of achiev- anteed equality and basic human rights; agencies, and units of government in order ing gender parity in primary education in (4) recognizes the unique cultural, histor- to help society address some of the most most countries in 2015, more work remains ical, and religious differences throughout the pressing current issues, including— to be done to achieve gender equality in pri- world and urges the United States Govern- (1) immigration reform; mary education worldwide by addressing— ment to act with respect and understanding (2) ensuring equal rights for all people; (1) discriminatory practices; toward legitimate differences when pro- (3) providing affordable and good health (2) cultural norms; moting any policies; care and mental health care for all individ- (3) inadequate sanitation facilities; and (5) reaffirms the commitment— uals; and (4) other factors that favor boys; (A) to end discrimination and violence (4) protecting the environment: Now, Whereas, according to the United Nations, against women and girls; therefore, be it women have access to fewer income earning (B) to ensure the safety and welfare of Resolved, That the Senate— opportunities and are more likely to manage women and girls; (1) supports the goals and ideals of Social the household or engage in agricultural work (C) to pursue policies that guarantee the Work Month during March 2018 and World than men, making women more vulnerable basic human rights of women and girls Social Work Day on March 20, 2018; to economic insecurity caused by— worldwide; and (2) acknowledges the diligent efforts of in- (1) natural disasters; and (D) to promote meaningful and significant dividuals and groups that promote the im- (2) long term changes in weather patterns; participation of women in every aspect of so- portance of social work and observe Social Whereas women around the world— ciety and community; Work Month and World Social Work Day; (1) face a variety of constraints that se- (6) supports sustainable, measurable, and (3) encourages individuals to engage in ap- verely limit their economic participation global development that seeks to achieve propriate ceremonies and activities to pro- and productivity; and gender equality and the empowerment of mote further awareness of the life-changing (2) are underrepresented in the labor force; women; and role that social workers play; and Whereas closing the global gender gap in (7) encourages the people of the United (4) with gratitude, recognizes the contribu- labor markets could increase worldwide States to observe International Women’s tions of the millions of caring individuals gross domestic product by as much as Day with appropriate programs and activi- who have chosen to serve their communities $28,000,000,000,000 by 2025; ties. through social work.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1583 Whereas Latinas are paid just 55 cents for sia, and other countries where followers of f every dollar paid to white, non-Hispanic Tibetan Buddhism reside look to the Dalai SENATE RESOLUTION 428—RECOG- men; Lama for religious leadership and spiritual NIZING THE HERITAGE, CUL- Whereas, in the face of societal obstacles, guidance; TURE, AND CONTRIBUTIONS OF including unequal pay, disparities in edu- Whereas, in its 2017 annual report, the LATINAS IN THE UNITED cation, health care needs, and civil rights United States Commission on International STATES struggles, Latinas continue to break through Religious Freedom noted that ‘‘[t]he Chinese and thrive; government claims the power to select the Ms. CORTEZ MASTO (for herself, Mr. Whereas the United States should continue next Dalai Lama with the help of a law that MENENDEZ, Mr. SCHUMER, Mr. DURBIN, to invest in the future of Latinas to address grants the government authority over rein- Mrs. FEINSTEIN, Mrs. MURRAY, Mr. the barriers they face; and carnations,’’ which purports to require all REED, Mr. NELSON, Ms. CANTWELL, Mr. Whereas, by 2060, Latinas will represent Tibetan Buddhist leaders to obtain the ap- SANDERS, Mr. BROWN, Ms. KLOBUCHAR, one third of the female population of the proval of the Government of the People’s Re- United States: Now, therefore, be it Mr. WHITEHOUSE, Mr. UDALL, Mr. BEN- public of China in order to reincarnate; Resolved, That the Senate— Whereas the Government of the People’s NET, Mr. COONS, Ms. BALDWIN, Ms. (1) celebrates and honors the successes of Republic of China has interfered in the iden- HIRONO, Mr. HEINRICH, Ms. WARREN, Mr. Latinas and the contributions they have tification and installation of reincarnated MARKEY, Mr. BOOKER, Mr. VAN HOLLEN, made and continue to make to the United leaders of Tibetan Buddhism, as part of its Ms. DUCKWORTH, Ms. HASSAN, Ms. HAR- States; and efforts to maintain control over Tibet, in- RIS, Ms. SMITH, Mr. BLUMENTHAL, and (2) recognizes the changes that are still to cluding in 1995 arbitrarily detaining the re- Mrs. GILLIBRAND) submitted the fol- be made to ensure that Latinas can realize cently identified 11th Panchen Lama, then a lowing resolution; which was referred their full potential as equal members of soci- six-year-old boy, and purporting to install to the Committee on the Judiciary: ety. China’s own candidate as Panchen Lama; S. RES. 428 f Whereas, in 2011, the 14th Dalai Lama de- clared that the responsibility for identifying Whereas the United States celebrates Na- SENATE RESOLUTION 429—COM- a future 15th Dalai Lama will rest with offi- tional Women’s History Month every March MEMORATING THE 59TH ANNI- cials of the Dalai Lama’s private office and to recognize and honor the achievements of VERSARY OF TIBET’S 1959 UPRIS- that ‘‘apart from the reincarnation recog- women throughout the history of the United ING AS ‘‘TIBETAN RIGHTS DAY’’, nized through such legitimate methods, no States; AND EXPRESSING SUPPORT FOR recognition or acceptance should be given to Whereas there are more than 27,000,000 Latinas living in the United States; THE HUMAN RIGHTS AND RELI- a candidate chosen for political ends by any- Whereas 1 in 6 women in the United States GIOUS FREEDOM OF THE TI- one, including those in the People’s Republic is a Latina; BETAN PEOPLE AND THE TI- of China’’; Whereas Latinas have helped shape the his- BETAN BUDDHIST FAITH COMMU- Whereas, in 1981, the United Nations Gen- tory of the United States since its inception; NITY eral Assembly passed the Declaration on the Whereas Latinas contribute to the society Elimination of all Forms of Intolerance and Mr. LEAHY (for himself, Mrs. FEIN- of the United States through working in of Discrimination Based on Religion or Be- many industries, including business, edu- STEIN, Mr. CRUZ, and Mr. RUBIO) sub- lief, which provides that freedom of religion cation, science and technology, medicine, en- mitted the following resolution; which shall include the freedom to ‘‘train, appoint, gineering, mathematics, literature and the was referred to the Committee on For- elect or designate by succession appropriate arts, the military, agriculture, hospitality, eign Relations: leaders called for by the requirements and standards of any religion or belief’’; and and public service at every level of govern- S. RES. 429 ment; Whereas Congress has long held that the Whereas March 10, 2018, marks the 59th an- right to freedom of religion undergirds the Whereas Latinas come from diverse cul- niversary of the 1959 uprising in Tibet, dur- tures across North America, Central Amer- very origin and existence of the United ing which the people of Lhasa, fearing for States, and that freedom of religious belief ica, and the Caribbean, and Afro-Latinas face the life of the Dalai Lama, surrounded his disparities in recognition; and practice is a universal human right and residence, organized a guard, and called for fundamental freedom: Now, therefore, be it Whereas Latinas are dedicated public serv- the withdrawal of Chinese forces from Tibet ants, holding posts at the highest levels of and the restoration of Tibet’s freedom; Resolved, That the Senate— the Federal Government, including the Su- Whereas Chinese statistics estimate 87,000 (1) recognizes March 10, 2018, as ‘‘Tibetan preme Court of the United States, the United Tibetans were killed, arrested, or deported to Rights Day’’; States Senate, and the United States House labor camps during the suppression of the (2) affirms its recognition of His Holiness of Representatives; 1959 uprising, which also forced the Dalai the 14th Dalai Lama for his outstanding con- Whereas Latinas make up an estimated 15 Lama and tens of thousands of other Tibet- tributions to peace, nonviolence, human percent of women in the Armed Forces, and ans to flee into exile; rights, and religious understanding; in 2006 Angela Salina became the first Latina Whereas March 10, 2018, also marks the (3) affirms its support for the Tibetan peo- general in the United States Marine Corps; 10th anniversary of a series of protests in ple’s fundamental human rights and free- Whereas Latinas are breaking the glass Lhasa, which spread across Tibet, and which doms, including their right to self-deter- ceiling in the science, technology, engineer- were suppressed by Chinese forces; mination and the protection of their distinct ing, and mathematics fields, such as Ellen Whereas, according to the Department of religious, cultural, linguistic, and national Ochoa, who became the first Latina to go State, the Government of the People’s Re- identity; into space during a 9-day Space Shuttle Dis- public of China is engaged in the severe re- (4) expresses its sense that the identifica- covery mission in 1993; pression of Tibet’s unique religious, cultural, tion and installation of Tibetan Buddhist re- Whereas Latinas own more than 1,400,000 and linguistic heritage, and is engaged in ligious leaders, including a future 15th Dalai businesses and 1 in 9 women-owned compa- gross violations of human rights in Tibet, in- Lama, is a matter that should be determined nies in the United States is owned by a cluding extrajudicial detentions, disappear- solely within the Tibetan Buddhist faith Latina; ances, and torture; community, in accordance with the inalien- Whereas Latina activists have led the fight Whereas, in the ten years since the 2008 able right to religious freedom; for civil rights, including Dolores Huerta protests, at least 152 Tibetans in Tibet are (5) expresses its sense that any attempt by who cofounded the United Farm Workers and known to have self-immolated, with state- the Government of the People’s Republic of advocates for the rights of immigrants, agri- ments or records left by these self-immola- China to identify or install its own candidate cultural workers, and women; tors calling for freedom for Tibet and the re- as a Tibetan Buddhist religious leader, in- Whereas Latinas create award-winning art turn of the Dalai Lama; cluding a future 15th Dalai Lama, is invalid and are recipients of Emmy, Grammy, Oscar, Whereas, in 1961, with the support of the interference in the right to religious freedom and Tony awards, including Rita Moreno United States, the United Nations General of Tibetan Buddhists around the world, in- who earned all 4 awards between 1961 and Assembly recognized the Tibetan people’s cluding in Tibet as well as the United States 1977; ‘‘fundamental human rights and freedoms, and elsewhere; and Whereas Latina singers and songwriters, including the right to self-determination’’; (6) calls on the Secretary of State to fully like Selena, also known as the Queen of Whereas, on October 18, 2007, Congress implement the provisions of the Tibetan Pol- Tejano music, and Celia Cruz, also known as awarded the Congressional Gold Medal to the icy Act of 2002 (subtitle B of title VI of Pub- the Queen of Salsa, have made lasting and Dalai Lama, finding that he is recognized lic Law 107–228; 22 U.S.C. 6901 et seq.), in co- significant contributions to music through- around the world as a leading figure of moral operation with like-minded states where ap- out the world; and religious authority, and is the unrivaled propriate, including that— Whereas Latinas serve in the medical pro- spiritual and cultural leader of the Tibetan (A) representatives of the United States fession, including Antonia Novello, who be- people; Government in exchanges with officials of came the first female and first Hispanic Sur- Whereas Buddhists in Tibet, the United the Government of the People’s Republic of geon General of the United States in 1990; States, India, Nepal, Bhutan, Mongolia, Rus- China should call for and otherwise promote

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the cessation of all interference by the Gov- amendment intended to be proposed by him (for himself, Mr. DONNELLY, Ms. HEITKAMP, ernment of the People’s Republic of China or to the bill S. 2155, supra; which was ordered Mr. TESTER, and Mr. WARNER) to the bill S. the Chinese Communist Party in the reli- to lie on the table. 2155, supra; which was ordered to lie on the gious affairs of the Tibetan people; SA 2171. Mr. PERDUE (for himself, Mr. table. (B) the United States Ambassador to the HOEVEN, Mr. KENNEDY, Mr. SCOTT, Mr. ISAK- SA 2187. Mr. KAINE submitted an amend- People’s Republic of China should meet with SON, Mr. DAINES, Mr. PAUL, Mr. LEE, Mr. ment intended to be proposed to amendment the 11th Panchen Lama, who was arbitrarily ENZI, and Mr. RUBIO) submitted an amend- SA 2151 proposed by Mr. CRAPO (for himself, detained on May 17, 1995, and otherwise as- ment intended to be proposed by him to the Mr. DONNELLY, Ms. HEITKAMP, Mr. TESTER, certain information concerning his where- bill S. 2155, supra; which was ordered to lie and Mr. WARNER) to the bill S. 2155, supra; abouts and well-being; and on the table. which was ordered to lie on the table. (C) the Secretary of State should make SA 2172. Mr. PERDUE submitted an SA 2188. Mr. DURBIN (for himself, Mr. best efforts to establish an office in Lhasa, amendment intended to be proposed by him DONNELLY, and Ms. DUCKWORTH) submitted Tibet, to monitor political, economic, and to the bill S. 2155, supra; which was ordered an amendment intended to be proposed by cultural developments in Tibet. to lie on the table. him to the bill S. 2155, supra; which was or- SA 2173. Mr. PETERS submitted an amend- f dered to lie on the table. ment intended to be proposed by him to the SA 2189. Mr. CARDIN (for himself and Mr. AMENDMENTS SUBMITTED AND bill S. 2155, supra; which was ordered to lie RISCH) submitted an amendment intended to PROPOSED on the table. be proposed by him to the bill S. 2155, supra; SA 2174. Mr. SASSE submitted an amend- which was ordered to lie on the table. SA 2156. Mr. RUBIO (for himself and Mr. ment intended to be proposed by him to the SA 2190. Mr. CARDIN submitted an amend- SASSE) submitted an amendment intended to bill S. 2155, supra; which was ordered to lie ment intended to be proposed to amendment be proposed by him to the bill S. 2155, to pro- on the table. SA 2151 proposed by Mr. CRAPO (for himself, mote economic growth, provide tailored reg- SA 2175. Mr. SASSE submitted an amend- Mr. DONNELLY, Ms. HEITKAMP, Mr. TESTER, ulatory relief, and enhance consumer protec- ment intended to be proposed by him to the and Mr. WARNER) to the bill S. 2155, supra; tions, and for other purposes; which was or- bill S. 2155, supra; which was ordered to lie which was ordered to lie on the table. dered to lie on the table. on the table. SA 2191. Mr. CARDIN submitted an amend- SA 2157. Ms. CORTEZ MASTO (for herself, SA 2176. Mr. SASSE submitted an amend- ment intended to be proposed to amendment Mr. BOOKER, Mr. BROWN, Ms. DUCKWORTH, ment intended to be proposed by him to the SA 2151 proposed by Mr. CRAPO (for himself, Mr. DURBIN, Mrs. FEINSTEIN, Ms. HIRONO, bill S. 2155, supra; which was ordered to lie Mr. DONNELLY, Ms. HEITKAMP, Mr. TESTER, Mrs. MCCASKILL, Mr. MENENDEZ, Mrs. MUR- on the table. and Mr. WARNER) to the bill S. 2155, supra; RAY, Mr. NELSON, Mrs. SHAHEEN, Mr. UDALL, SA 2177. Mr. MENENDEZ submitted an which was ordered to lie on the table. Mr. VAN HOLLEN, Ms. WARREN, Ms. HASSAN, amendment intended to be proposed by him f Ms. STABENOW, Mr. HEINRICH, and Mr. to the bill S. 2155, supra; which was ordered BLUMENTHAL) submitted an amendment in- to lie on the table. TEXT OF AMENDMENTS tended to be proposed by her to the bill S. SA 2178. Mr. CORKER (for himself and Mr. SA 2156. Mr. RUBIO (for himself and 2155, supra; which was ordered to lie on the KENNEDY) submitted an amendment intended table. to be proposed to amendment SA 2151 pro- Mr. SASSE) submitted an amendment SA 2158. Ms. CORTEZ MASTO submitted posed by Mr. CRAPO (for himself, Mr. DON- intended to be proposed by him to the an amendment intended to be proposed by NELLY, Ms. HEITKAMP, Mr. TESTER, and Mr. bill S. 2155, to promote economic her to the bill S. 2155, supra; which was or- WARNER) to the bill S. 2155, supra; which was growth, provide tailored regulatory re- dered to lie on the table. ordered to lie on the table. lief, and enhance consumer protec- SA 2159. Ms. CORTEZ MASTO submitted SA 2179. Mr. DURBIN (for himself, Mr. an amendment intended to be proposed by tions, and for other purposes; which REED, Ms. WARREN, Mrs. MURRAY, Mr. her to the bill S. 2155, supra; which was or- was ordered to lie on the table; as fol- BROWN, Mr. BLUMENTHAL, Ms. BALDWIN, Ms. dered to lie on the table. lows: DUCKWORTH, Mr. WHITEHOUSE, Ms. HASSAN, SA 2160. Ms. CORTEZ MASTO submitted Mr. VAN HOLLEN, and Mr. MARKEY) sub- At the end of title V, add the following: an amendment intended to be proposed by mitted an amendment intended to be pro- SEC. 504. REPORT ON FOREIGN INVESTMENT IN her to the bill S. 2155, supra; which was or- posed to amendment SA 2151 proposed by Mr. REAL ESTATE IN THE UNITED dered to lie on the table. STATES. SA 2161. Ms. CORTEZ MASTO submitted CRAPO (for himself, Mr. DONNELLY, Ms. HEITKAMP, Mr. TESTER, and Mr. WARNER) to (a) IN GENERAL.—Not later than one year an amendment intended to be proposed by after the date of the enactment of this Act, her to the bill S. 2155, supra; which was or- the bill S. 2155, supra; which was ordered to lie on the table. the Secretary of the Treasury, in consulta- dered to lie on the table. tion with the Secretary of Commerce, shall SA 2162. Ms. CORTEZ MASTO submitted SA 2180. Mrs. MURRAY (for herself, Ms. COLLINS, Ms. HASSAN, and Mrs. SHAHEEN) submit to the appropriate congressional an amendment intended to be proposed by committees a report on foreign investment her to the bill S. 2155, supra; which was or- submitted an amendment intended to be pro- posed by her to the bill S. 2155, supra; which in real estate in the United States that in- dered to lie on the table. cludes the following: SA 2163. Ms. CORTEZ MASTO submitted was ordered to lie on the table. (1) For each of the 30 years preceding such an amendment intended to be proposed by SA 2181. Mr. BROWN submitted an amend- date of enactment, an estimate of the fol- her to the bill S. 2155, supra; which was or- ment intended to be proposed to amendment lowing: dered to lie on the table. SA 2151 proposed by Mr. CRAPO (for himself, (A) The total amount of foreign invest- SA 2164. Ms. CORTEZ MASTO submitted Mr. DONNELLY, Ms. HEITKAMP, Mr. TESTER, ment in real estate in the United States. an amendment intended to be proposed by and Mr. WARNER) to the bill S. 2155, supra; (B) The amount of investment described in her to the bill S. 2155, supra; which was or- which was ordered to lie on the table. subparagraph (A), disaggregated by— dered to lie on the table. SA 2182. Mr. CARPER submitted an amend- SA 2165. Ms. CORTEZ MASTO submitted ment intended to be proposed by him to the (i) each of the 10 foreign countries from an amendment intended to be proposed by bill S. 2155, supra; which was ordered to lie which the most such investment originates; her to the bill S. 2155, supra; which was or- on the table. (ii) each covered foreign country; and dered to lie on the table. SA 2183. Mr. CRAPO submitted an amend- (iii) investment by public and private enti- SA 2166. Ms. CORTEZ MASTO submitted ment intended to be proposed to amendment ties. an amendment intended to be proposed by SA 2151 proposed by Mr. CRAPO (for himself, (C) The total amount of foreign investment her to the bill S. 2155, supra; which was or- Mr. DONNELLY, Ms. HEITKAMP, Mr. TESTER, in real estate in the United States in the 20 dered to lie on the table. and Mr. WARNER) to the bill S. 2155, supra; metropolitan statistical areas with the most SA 2167. Mr. CRUZ (for himself, Mr. LEE, which was ordered to lie on the table. such investment. Mr. RUBIO, Mr. INHOFE, Mr. PAUL, and Mr. SA 2184. Mr. DONNELLY (for himself and (D) The amount of investment described in SASSE) submitted an amendment intended to Ms. KLOBUCHAR) submitted an amendment subparagraph (C), disaggregated by— be proposed by him to the bill S. 2155, supra; intended to be proposed by him to the bill S. (i) each of the metropolitan statistical which was ordered to lie on the table. 2155, supra; which was ordered to lie on the areas described in that subparagraph; SA 2168. Ms. BALDWIN (for herself, Mr. table. (ii) each covered foreign country; and BLUMENTHAL, and Mr. WHITEHOUSE) sub- SA 2185. Mr. SCHATZ (for himself, Mr. (iii) investment by public and private enti- mitted an amendment intended to be pro- BROWN, and Mr. BLUMENTHAL) submitted an ties. posed by her to the bill S. 2155, supra; which amendment intended to be proposed by him (E) The total amount of foreign investment was ordered to lie on the table. to the bill S. 2155, supra; which was ordered in real estate in the United States in the 10 SA 2169. Mr. RUBIO submitted an amend- to lie on the table. States with the most such investment. ment intended to be proposed by him to the SA 2186. Mr. INHOFE (for himself, Mr. (F) The amount of investment described in bill S. 2155, supra; which was ordered to lie UDALL, Mr. CASSIDY, Mr. KENNEDY, Mr. subparagraph (E), disaggregated by— on the table. HOEVEN, and Mr. RUBIO) submitted an (i) each of the States described in that sub- SA 2170. Mr. MERKLEY (for himself, Mr. amendment intended to be proposed to paragraph; DURBIN, and Mrs. MURRAY) submitted an amendment SA 2151 proposed by Mr. CRAPO (ii) each covered foreign country; and

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1585 (iii) investment by public and private enti- fault by reason of failure to pay taxes or in- House of Representatives that the primary ties. surance required under the mortgage or financial regulatory agency has issued a (2) An estimate of the percentage of the av- homeowners association fees, the Secretary final rule for each applicable regulation re- erage home price in the metropolitan statis- shall require that the mortgagee, as a pre- quired under the Dodd-Frank Wall Street Re- tical areas described in paragraph (1)(C) at- condition of sending a due and payable re- form and Consumer Protection Act (12 U.S.C. tributable to foreign investment in real es- quest to the Secretary, take appropriate loss 5301 et seq.), and any amendment made by tate. mitigation actions, which may include— that Act. (3) An estimate of the percentage of the av- ‘‘(i) establishing a realistic repayment plan erage home price in the States described in for the delinquency; SA 2160. Ms. CORTEZ MASTO sub- paragraph (1)(E) attributable to foreign in- ‘‘(ii) assisting the borrower in contacting a mitted an amendment intended to be vestment in real estate. housing counseling agency approved by the proposed by her to the bill S. 2155, to (b) DEFINITIONS.—In this section: Secretary to obtain free assistance with— promote economic growth, provide tai- (1) APPROPRIATE CONGRESSIONAL COMMIT- ‘‘(I) finding a viable resolution to the de- lored regulatory relief, and enhance TEES.—The term ‘‘appropriate congressional linquency; or committees’’ means— ‘‘(II) identifying local resources available consumer protections, and for other (A) the Committee on Banking, Housing, to provide funds or homestead exemptions; purposes; which was ordered to lie on and Urban Affairs and the Committee on ‘‘(iii) refinancing the delinquent mortgage the table; as follows: Foreign Relations of the Senate; and into a new home equity conversion mortgage At the end of section 401, add the fol- (B) the Committee on Financial Services if— lowing: and the Committee on Foreign Affairs of the ‘‘(I) there is sufficient equity to satisfy the (ll) NO RELIEF FOR BAD ACTORS.— House of Representatives. existing mortgage and the delinquency; and (1) DEFINITIONS.—In this subsection: (2) COVERED COUNTRY.—The term ‘‘covered ‘‘(II) the applicant for refinancing meets (A) BAD ACTOR.—The term ‘‘bad actor’’ country’’ means— the financial assessment guidelines of the means a bank holding company with total (A) Argentina; Secretary; consolidated assets equal to or greater than (B) Brazil; ‘‘(iv) extending the deadline for foreclosure $50,000,000,000 if the company, its prede- (C) Canada; in a case in which the youngest living bor- cessor, or any of its subsidiaries was subject (D) Colombia; rower— to an order, judgment, or decree of any court (E) Germany; ‘‘(I) is not less than 80 years of age; and of competent jurisdiction entered on or after (F) Japan; ‘‘(II) has critical circumstances, such as a July 21, 2010, or a final order of an Executive (G) Norway; terminal illness, long-term physical dis- agency entered on or after July 21, 2010, (H) the People’s Republic of China; ability, or unique occupancy need; that— (I) Singapore; ‘‘(v) refraining from submitting a due and (i) is the result of an enforcement action (J) South Korea; payable request to the Secretary in a case in initiated by an Executive agency or State at- (K) Switzerland; which the total arrearage for the delin- torney general; (L) the United Arab Emirates; and quency is not more than $2,000; and (ii) imposes penalties for violations— (M) Venezuela. ‘‘(vi) any other loss mitigation action the (I) of any Federal or State law related to (3) METROPOLITAN STATISTICAL AREA.—The Secretary considers appropriate. mortgage origination, servicing, or fore- term ‘‘metropolitan statistical area’’ has the ‘‘(B) TREATMENT OF NON-BORROWING closure processing, as defined by the Board meaning given that term by the Office of SPOUSES.—For purposes of loss mitigation re- of Governors of the Federal Reserve System; Management and Budget. quired under subparagraph (A), a mortgagee or shall treat a non-borrowing spouse as a bor- (II) involving the offer or sale of residen- SA 2157. Ms. CORTEZ MASTO (for rower. tial mortgage-backed securities or any fi- herself, Mr. BOOKER, Mr. BROWN, Ms. ‘‘(C) FAILURE TO COMPLY.—In the case of a nancial instrument that references residen- DUCKWORTH, Mr. DURBIN, Mrs. FEIN- claim for insurance benefits for a mortgage tial mortgage-backed securities under— STEIN, Ms. HIRONO, Mrs. MCCASKILL, insured under this section made by a mort- (aa) the Securities Act of 1933 (15 U.S.C. 77b Mr. MENENDEZ, Mrs. MURRAY, Mr. NEL- gagee who fails to comply with the require- et seq.); or SON, Mrs. SHAHEEN, Mr. UDALL, Mr. ment under subparagraph (A), the Secretary (bb) the Securities Exchange Act of 1934 (15 may reduce or deny those benefits based on VAN HOLLEN, Ms. WARREN, Ms. HASSAN, U.S.C. 78a et seq.); and that failure. (iii) imposes monetary penalties of more Ms. STABENOW, Mr. HEINRICH, and Mr. ‘‘(3) DEFINITIONS.—In this subsection: than $1,000,000. BLUMENTHAL) submitted an amendment ‘‘(A) BORROWER.—The term ‘borrower’, (B) EXECUTIVE AGENCY.—The term ‘‘Execu- intended to be proposed by her to the with respect to a mortgage insured under tive agency’’ has the meaning given the term bill S. 2155, to promote economic this section— in section 105 of title 5, United States Code. growth, provide tailored regulatory re- ‘‘(i) means the original borrower under the (2) PROHIBITION.—Notwithstanding any lief, and enhance consumer protec- note and mortgage; and other provision in this title, a bad actor tions, and for other purposes; which ‘‘(ii) does not include successors or assigns shall be subject to standards or requirements was ordered to lie on the table; as fol- of the original borrower. under sections 116(a), 121(a), 155(d), 163(b), lows: ‘‘(B) NON-BORROWING SPOUSE.—The term 164, and 165 of the Financial Stability Act of ‘non-borrowing spouse’, with respect to a 2010 (12 U.S.C. 5326(a), 5331(a), 5345(d), 5363(b), Strike section 104 of the amendment. borrower under a mortgage insured under 5364, 5365) that are no less stringent than the SA 2158. Ms. CORTEZ MASTO sub- this section, means the spouse of the bor- standards or requirements applicable to the rower who is not a borrower.’’. mitted an amendment intended to be bad actor on December 1, 2017. proposed by her to the bill S. 2155, to SA 2159. Ms. CORTEZ MASTO sub- SA 2161. Ms. CORTEZ MASTO sub- promote economic growth, provide tai- mitted an amendment intended to be mitted an amendment intended to be lored regulatory relief, and enhance proposed by her to the bill S. 2155, to proposed by her to the bill S. 2155, to consumer protections, and for other promote economic growth, provide tai- promote economic growth, provide tai- purposes; which was ordered to lie on lored regulatory relief, and enhance lored regulatory relief, and enhance the table; as follows: consumer protections, and for other consumer protections, and for other At the end of title III, add the following: purposes; which was ordered to lie on purposes; which was ordered to lie on SEC. 308. SAFEGUARDS TO PREVENT DISPLACE- the table; as follows: MENT OF SENIORS. the table; as follows: Section 255(j) of the National Housing Act At the end of title IV, add the following: At the end of section 401, add the fol- (12 U.S.C. 1715z–20(j)) is amended— SEC. 4ll. EFFECTIVE DATE. lowing: (1) by striking the subsection designation (a) DEFINITION.—In this section, ‘‘primary (ll) QUANTITATIVE OR QUALITATIVE OBJEC- and all that follows through ‘‘The Sec- financial regulatory agency’’ has the mean- TIONS TO CAPITAL PLANS.— retary’’ and inserting the following: ing given the term in section 2 of the Dodd- (1) IN GENERAL.—Any bank holding com- ‘‘(j) SAFEGUARDS TO PREVENT DISPLACE- Frank Wall Street Reform and Consumer pany with total consolidated assets greater MENT OF HOMEOWNERS.— Protection Act (12 US.C. 5301). than $50,000,000,000 that, in the preceding 5 ‘‘(1) DEFERRAL OF OBLIGATIONS OF HOME- (b) IN GENERAL.—Notwithstanding any years, has received a quantitative or quali- OWNERS.—The Secretary’’; and other provision in this title, this title shall tative objection or conditional nonobjection (2) by adding at the end the following: not take effect until 30 days after the date to a capital plan submitted to the Board of ‘‘(2) LOSS MITIGATION IN CASES OF DELIN- on which each Federal primary financial reg- Governors of the Federal Reserve System QUENT TAXES, INSURANCE, AND HOMEOWNERS ulatory agency has certified by order and in pursuant the Comprehensive Capital Anal- ASSOCIATION FEES.— a report to the Committee on Banking, ysis and Review conducted under section ‘‘(A) REQUIREMENT.—In the case of a mort- Housing, and Urban Affairs of the Senate and 225.8 of title 12, Code of Federal Regulations, gage insured under this section that is in de- the Committee on Financial Services of the shall be—

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1586 CONGRESSIONAL RECORD — SENATE March 8, 2018 (A) considered a bank holding company lored regulatory relief, and enhance of Federal Regulations, as in effect on Octo- with total consolidated assets equal to or consumer protections, and for other ber 31, 2017, shall be applied and adminis- greater than $250,000,000,000 with respect to purposes; which was ordered to lie on tered as if the Joint Resolution described in the application of standards or requirements the table; as follows: paragraph (1) had not been enacted. under— (B) EXEMPTION FOR COMMUNITY FINANCIAL (i) sections 116(a), 121(a), 155(d), 163(b), 164, At the appropriate place, insert the fol- INSTITUTIONS.—Part 1040 of title 12, Code of and 165 of the Financial Stability Act of 2010 lowing: Federal Regulations, shall not apply to any (12 U.S.C. 5326(a), 5331(a), 5345(d), 5363(b), 5364, SEC. lll. INVESTOR CHOICE. bank or credit union that, together with its 5365); and (a) ARBITRATION AGREEMENTS IN THE SECU- affiliates, has less than $10,000,000,000 in total (ii) paragraph (2)(A) of the second sub- RITIES EXCHANGE ACT OF 1934.—Section 15(o) consolidated assets. section (s) (relating to assessments) of sec- of the Securities Exchange Act of 1934 (15 tion 11 of the Federal Reserve Act (12 U.S.C. U.S.C. 78o(o)) is amended to read as follows: SA 2166. Ms. CORTEZ MASTO sub- 248(s)(2)); and ‘‘(o) LIMITATIONS ON PRE-DISPUTE AGREE- mitted an amendment intended to be (B) subject to annual analyses to evaluate MENTS.—Notwithstanding any other provi- proposed by her to the bill S. 2155, to whether the bank has the capital, on a total sion of law, it shall be unlawful for any promote economic growth, provide tai- consolidated basis, necessary to absorb broker, dealer, funding portal, or municipal lored regulatory relief, and enhance securities dealer to enter into, modify, or ex- losses as a result of adverse economic condi- consumer protections, and for other tions. tend an agreement with customers or clients of such entity with respect to a future dis- purposes; which was ordered to lie on (2) CONDITIONS.—Each analysis described in the table; as follows: paragraph (1)(B) shall provide for at least 3 pute between the parties to such agreement different sets of conditions under which the that— At the appropriate place, insert the fol- evaluation required by that paragraph shall ‘‘(1) mandates arbitration for such dispute; lowing: be conducted, including baseline, adverse, ‘‘(2) restricts, limits, or conditions the SEC. ll. FINDINGS. and severely adverse. ability of a customer or client of such entity Congress finds the following: to select or designate a forum for resolution (1) FINDINGS ON THE COSTS OF THE FINANCIAL SA 2162. Ms. CORTEZ MASTO sub- of such dispute; or CRISIS.— mitted an amendment intended to be ‘‘(3) restricts, limits, or conditions the (A) The 2007–2008 financial crisis, which led ability of a customer or client to pursue a to the near-total collapse of the global finan- proposed by her to the bill S. 2155, to claim relating to such dispute in an indi- cial system had both measurable and im- promote economic growth, provide tai- vidual or representative capacity or on a measurable costs to the economy of the lored regulatory relief, and enhance class action or consolidated basis.’’. United States and virtually every working consumer protections, and for other (b) ARBITRATION AGREEMENTS IN THE IN- family, throwing the United States into the purposes; which was ordered to lie on VESTMENT ADVISERS ACT OF 1940.—Section longest and deepest recession in generations. the table; as follows: 205(f) of the Investment Advisers Act of 1940 The costs of that crisis are staggering and (15 U.S.C. 80b–5(f)) is amended to read as fol- long-lasting by every measure. Strike section 110. lows: (B) The crisis ravaged our economy, cost- SA 2163. Ms. CORTEZ MASTO sub- ‘‘(f) Notwithstanding any other provision ing more than $16,000,000,000,000 or about of law, it shall be unlawful for any invest- $120,000 for every United States household. mitted an amendment intended to be ment adviser to enter into, modify, or extend (C) Tens of millions of Americans lost their proposed by her to the bill S. 2155, to an agreement with customers or clients of jobs as the number of unemployed climbed to promote economic growth, provide tai- such entity with respect to a future dispute 14,700,000 over the course of the recession, lored regulatory relief, and enhance between the parties to such agreement and the number of underemployed and dis- consumer protections, and for other that— couraged job seekers who gave up work rose purposes; which was ordered to lie on ‘‘(1) mandates arbitration for such dispute; to 12,000,000, a 94 percent increase. the table; as follows: ‘‘(2) restricts, limits, or conditions the (D) The unemployment rate also shot up to ability of a customer or client of such entity a high of 10 percent, up from 6.6 percent in At the appropriate place, insert the fol- to select or designate a forum for resolution October 2008. Research shows that many lowing: of such dispute; or young people who entered into a terrible job SEC. lll. ESTABLISHMENT OF THE FINANCIAL ‘‘(3) restricts, limits, or conditions the market will suffer permanently lower in- FINES AND CRIMES REGISTRY. ability of a customer or client to pursue a come prospects over the course of their ca- (a) DEFINITION.—In this section, the term claim relating to such dispute in an indi- reers. ‘‘covered agency’’ means— vidual or representative capacity or on a (E) During the 2007–2008 financial crisis, (1) the Federal Deposit Insurance Corpora- class action or consolidated basis.’’. known as the ‘‘Great Recession’’, long-term tion; (c) APPLICATION.—The amendments made unemployment was significantly higher and (2) the Federal Housing Finance Agency; by this section shall apply with respect to persisted longer than in any previous period (3) the Office of the Comptroller of the Cur- any agreement entered into, modified, or ex- in data that go back to the late 1940s. rency; tended after the date of the enactment of (F) At the outset of the recovery from the (4) the Board of Governors of the Federal this Act. Great Recession there were 7 people looking Reserve System; for jobs for every one opening. (5) the Bureau of Consumer Financial Pro- SA 2165. Ms. CORTEZ MASTO sub- (G) The consequences of the crisis were tection; mitted an amendment intended to be particularly severe for minority populations. (6) the Securities and Exchange Commis- proposed by her to the bill S. 2155, to In late 2009, white Americans jobless rate sion; peaked at 9.2 percent. For African-Ameri- (7) the Department of Justice; promote economic growth, provide tai- lored regulatory relief, and enhance cans, however, the jobless rate climbed as (8) the Department of Housing and Urban high as a staggering 16.8 percent in March Development; consumer protections, and for other 2010. Additionally, the jobless rate for His- (9) the Commodity Futures Trading Com- purposes; which was ordered to lie on panics hit a peak of 13 percent in August mission; and the table; as follows: 2009. (10) the Department of the Treasury. At the end of title III, add the following: (H) Facing mounting unemployment and in (b) ESTABLISHMENT.—Each covered agency SEC. 3ll. ARBITRATION AGREEMENTS. many cases harsh and deceptive mortgage shall establish and make accessible on a pub- (a) DEFINITIONS.—In this section, the terms servicing practices, foreclosures displaced lic website a database to be known as the ‘‘bank’’ and ‘‘credit union’’ have the mean- more than 11,000,000 Americans, which ‘‘Financial Fines and Crimes Registry’’ that ings given those terms in section 2 of the pushed down home prices, contributing to an shall list all penalties (civil and criminal) Dodd-Frank Wall Street Reform and Con- average decline in home values of more than that the covered agency has assessed in the sumer Protection Act (12 U.S.C. 5301). 30 percent. previous 20 years against any financial insti- (b) REVIVAL OF THE ARBITRATION AGREE- (I) As many lost their jobs, they also lost tution, as defined under section 5312(a) of MENTS RULE.— their health insurance, driving nearly title 31, United States Code, with assets (1) IN GENERAL.—The Joint Resolution en- 4,000,000 Americans into the Medicaid pro- greater than $50,000,000,000 at the time the titled ‘‘Joint Resolution providing for con- gram in 2009 alone. penalty was assessed, including any actions gressional disapproval under chapter 8 of (J) Median family income fell to $45,800 in taken by the covered agency against an exec- title 5, United States Code, of the rule sub- 2010 from $49,600 in 2007, with low-income and utive, director, or officer of the financial in- mitted by Bureau of Consumer Financial middle-class families sustaining the largest stitution. Protection relating to ‘Arbitration Agree- percentage losses in both wealth and income ments’,’’ approved November 1, 2017 (Public during the crisis. SA 2164. Ms. CORTEZ MASTO sub- Law 115–74), is repealed. (K) Once again, the Great Recession had mitted an amendment intended to be (2) APPLICABILITY.— the most profound impact on African-Ameri- proposed by her to the bill S. 2155, to (A) IN GENERAL.—Except as provided in cans whose wealth declined by approxi- promote economic growth, provide tai- subparagraph (B), part 1040 of title 12, Code mately 52 percent, and Latino households

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1587 whose wealth declined by 66 percent, com- (A) Established as part of the of the Fraud (xi) credit default swaps fueled mortgage pared to a 16 percent decrease in wealth for Enforcement and Recovery Act (Public Law securitization and enabled creation of syn- White households. 111–21) passed by Congress and signed by the thetic collateralized debt obligations, which (L) The Great Recession also reduced the President in May 2009, the Financial Crisis amplified losses by allowing multiple bets on value of homes disproportionately for mi- Inquiry Commission was created to ‘‘exam- the same securities which were spread norities, as the average real home values for ine the causes, domestic and global, of the throughout the system; and Latino homeowners decreased nearly $100,000 current financial and economic crisis in the (xii) failures of the credit rating agencies or 35 percent and nearly $69,000 or 31 percent United States.’’. were essential cogs in the wheel of financial for African-American homeowners, while the (B) The majority report issued by the Com- destruction because they gave seals of ap- average home values for White homeowners mission found that the crisis was primarily proval, which investors blindly relied upon, fell 15 percent over this same period. caused by the collapse of a housing bubble to poor-quality mortgages and mortgage- (M) Equity investments also dramatically that was fueled by deteriorating mortgage backed securities based on inadequate ana- declined, with the stock market falling by lending standards and mortgage lytical models. more than 50 percent in just 18 months, from securitization. The majority report specifi- (3) FINDINGS ON THE ECONOMY SINCE THE EN- October 2007 to March 2009. cally concluded that— ACTMENT OF THE DODD-FRANK ACT.— (N) Declining stock market values also hit (i) the crisis was avoidable because it was (A) Since enactment of the Dodd-Frank assets in retirement accounts such as 401(k)s the product of human action and inaction, Wall Street Reform and Consumer Protec- that lost $2,800,000,000,000, or about one third both by regulators and in the private sector, tion Act in the third quarter of 2010, the of their value between September 2007 and United States economy has grown by 16.1 in the face of numerous clear warning signs; December 2008. percent, more than twice as fast as other ad- (ii) widespread failures in financial regula- (O) Home prices across the nation fell vanced economies such as the Euro Area and tion and supervision were devastating; for about 30 percent from their peak in April Japan. example, the Board of Governors of the Fed- 2006 until the end of the recession in June (B) Since passage of the Act, the economy eral Reserve System failed to write mort- 2009. has added a total of 17,607,000 private sector gage rules, the Office of the Comptroller of (P) The poverty rate steadily rose 2.5 per- jobs, and the unemployment rate has fallen the Currency and the Office of Thrift Super- centage points from 2007 to 2012, with to 4.1 percent in January 2018 from the crisis 46,500,000 people living in poverty in 2012. vision preempted State regulators from rein- high of 10 percent. (Q) Real Gross Domestic Product in the ing in mortgage abuses, the Securities and (C) Average hourly earnings for private United States in the fourth quarter of 2008, Exchange Commission failed to regulate in- employees increased nearly 3 percent in 2016, and the first and second quarters of 2009, de- vestment banks, and the Federal Reserve the fastest 12-month pace since the financial creased by an annual rate of about 5.4 per- Bank of New York and other regulators crisis. Average hourly earnings for private cent, 6.4 percent, and 0.7 percent, respec- failed to stem excesses at large companies employees increased nearly 2.5 percent in tively. and did not identify problems and take cor- 2017. From January 2017 to January 2018, av- (R) Just as so many Americans had lost rective action towards troubled companies erage hourly earnings for private employees their jobs, their homes, and their retirement until it was too late; increased by .8 percent. savings through no fault of their own, mak- (iii) there were dramatic failures of cor- (D) According to the most recent data, ing it harder and harder for Americans to porate governance and risk management at community banks, which represent 92 per- draw on credit to make ends meet. Faced many systemically important firms, as com- cent of all insured institutions, are posting with financial difficulty, more than 1,400,000 panies recklessly took on risk, including record profits since the crisis. In the third households declared bankruptcy in 2009, on enormous exposures to subprime mortgages quarter of 2017, community banks posted a top of the 1,100,000 who did so in 2008. and mortgage-related securities, because net income of $6,000,000,000, a 9.4 percent in- (S) From 2008 to 2014, more than 500 finan- mathematical models were over-relied upon, crease from the same quarter in 2016. cial institutions failed. compensation structures rewarded short- (E) In the first quarter of 2011, just before (T) In addition to households, businesses term risk without regard for longer-term the Bureau of Consumer Financial Protec- (particularly small businesses) felt the ef- consequences, and management often was ig- tion opened its doors, banks collectively fects of the crisis. Unlike larger firms which norant of significant risk-taking, which en- posted profits of $29,000,000,000. In 2016, the rely more on capital markets for funding, abled a combination of excessive borrowing, industry set an all-time record of small businesses, which are more dependent risky investments, and lack of transparency $171,300,000,000 in profits. In the most recent on capital from traditional banks, other fi- that put the financial system on a collision quarter, banks posted profits of nancial institutions, or the personal bor- course with crisis; $47,900,000,000, a 5.2 percent increase from the rowing by owners, were hit hard by the cred- (iv) companies took on excessive amounts same quarter in 2016. it crunch which made credit more scarce and of leverage, often through non-transparent (F) Since 2009, corporate profits in the fi- expensive. With nearly 40 percent of the off-balance-sheet vehicles or over-the- nancial sector have steadily increased. From country’s private-sector workforce employed counter (OTC) derivatives, and relied exces- 2010 to the third quarter of 2017, total profits by small businesses, the economic impact sively on short-term borrowing; borrowed after tax have increased by 26.4 percent. was substantial. funds were often used to acquire risky as- (G) In 2017, the percentage of unprofitable (U) The United States Government created sets; banks decreased to 3.9 percent of all institu- various emergency programs and provided (v) the Government was ill-prepared for the tions insured by the Federal Deposit Insur- more than $12,000,000,000,000 in direct support crisis, largely because of lack of trans- ance Corporation in the third quarter of 2017 to the United States financial institutions, parency in key markets, and inconsistent from 4.6 percent of all institutions insured not including pre-crisis provisions such as Government decisions about whether to save by the Federal Deposit Insurance Corpora- deposit insurance limits by the Federal De- failing firms increased uncertainty and tion in the third quarter of 2016. Only 21 posit Insurance Corporation and the tradi- panic; banks failed between 2015 and 2018. tional monetary policy operations and lend- (vi) regulators did not foresee the broad (H) Community banks showed strong er-of-last-resort functions of the Board of systemic effects caused by the bursting of growth in residential, commercial, and in- Governors of the Federal Reserve System. the housing bubble and did not fully appre- dustrial loans, and in small business lending. (V) After the worst of the crisis subsided, ciate the dire condition of Fannie Mae and In fact, overall loan growth at community it became clear that a massive reform of the Freddie Mac until just before taking it over; banks has been faster than at bigger banks. financial system of the United States was (vii) there was a systemic breakdown in ac- In the fourth quarter of 2016, lending was up necessary to reset the economy and prevent countability and ethics, in which borrowers 7.3 percent for community banks, and 3.5 per- a future crisis. took out loans they had no ability, some- cent for all institutions insured by the Fed- (W) The Dodd-Frank Wall Street Reform times even no intention, to repay and lend- eral Deposit Insurance Corporation. and Consumer Protection Act accomplished ers knowingly made such loans, while (I) Federally insured credit unions have that goal, providing accountability, trans- securitizers packaged loans without regard substantially increased membership, assets, parency and creating a stable financial sys- to quality and regulators failed to say ‘‘no’’; net income, and loans since the Bureau of tem essential to grow the economy and cre- (viii) collapsing mortgage lending stand- Consumer Financial Protection opened its ate jobs. ards and the mortgage securitization pipe- doors in 2011. Credit union membership has (X) U.S. authorities collected more than line lit and spread the flame of contagion expanded by 20,400,000 since 2010, which now $150,000,000,000 in fines from financial institu- and crisis; stands at more than 111,900,000 members na- tions for deceptive practices involving (ix) lenders offloaded risks associated with tionwide. subprime mortgages since the beginning of bad loans by selling them into a secondary (J) Risk-weighted capital in the United the credit crisis in 2007, including for sys- market in which investors were eager to buy States banking sector has increased by 41 temic failures in record retention, mortgage mortgage-related securities, which trans- percent since 2009, meaning that banks are servicing errors or abuses, misleading inves- formed toxic mortgages into toxic securities significantly safer today than prior to the fi- tors with fraudulent underwriting, inflated that were spread to investors around the nancial crisis. appraisals, and misstating capital levels. globe; (K) United States taxpayers gave (2) FINDINGS OF THE FINANCIAL CRISIS IN- (x) OTC derivatives contributed signifi- $187,000.000,000 to Fannie Mae and Freddie QUIRY COMMISSION.— cantly to the crisis; Mac. As the enterprises have stabilized, they

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1588 CONGRESSIONAL RECORD — SENATE March 8, 2018 have paid back $271,000,000,000 to the Depart- ‘‘(A) means a primary financial regulatory employer or former client of the covered fi- ment of the Treasury. In total, the Depart- agency (as defined in section 2 of the Dodd- nancial services regulator. ment of the Treasury spent $626,400,000,000 in Frank Wall Street Reform and Consumer ‘‘(b) RECUSAL.—A covered financial serv- funds, and taxpayers have received Protection Act (12 U.S.C. 5301)); and ices regulator shall recuse himself or herself $713,400,000,000 in refunds, dividends, interest, ‘‘(B) includes— from any official action that would violate warrants, and other proceeds. ‘‘(i) the Board of Governors of the Federal subsection (a). Reserve System; ‘‘(c) WAIVER.— SA 2167. Mr. CRUZ (for himself, Mr. ‘‘(ii) the Office of the Comptroller of the ‘‘(1) IN GENERAL.—The head of the covered LEE, Mr. RUBIO, Mr. INHOFE, Mr. PAUL, Currency; financial services agency employing a cov- ered financial services regulator, in con- and Mr. SASSE) submitted an amend- ‘‘(iii) the Federal Deposit Insurance Cor- poration; sultation with the Director, may grant a ment intended to be proposed by him written waiver of the restrictions under sub- to the bill S. 2155, to promote economic ‘‘(iv) the National Credit Union Adminis- tration; section (a) if, and to the extent that, the growth, provide tailored regulatory re- ‘‘(v) the Securities and Exchange Commis- head of the covered financial services agency lief, and enhance consumer protec- sion; certifies in writing that— tions, and for other purposes; which ‘‘(vi) the Federal Housing Finance Agency; ‘‘(A) the application of the restriction to was ordered to lie on the table; as fol- ‘‘(vii) the Bureau of Consumer Financial the particular matter is inconsistent with lows: Protection; the purposes of the restriction; or ‘‘(B) it is in the public interest to grant the At the appropriate place, insert the fol- ‘‘(viii) the Commodity Futures Trading waiver. lowing: Commission; ‘‘(ix) the Department of the Treasury; ‘‘(2) PUBLICATION.—The Director shall SEC. lll. REPEAL. make each waiver under paragraph (1) pub- The Consumer Financial Protection Act of ‘‘(x) the National Economic Council; and ‘‘(xi) the Council of Economic Advisors. licly available on the Web site of the Office 2010 (12 U.S.C. 5481 et seq.) is repealed, and of Government Ethics. the provisions of law amended or repealed by ‘‘(2) COVERED FINANCIAL SERVICES REGU- LATOR.—The term ‘covered financial services ‘‘SEC. 603. NEGOTIATING FUTURE PRIVATE SEC- that Act are restored or revived as if the Act TOR EMPLOYMENT. had not been enacted. regulator’ means an officer or employee of a covered financial services agency who occu- ‘‘(a) PROHIBITION.—Except as provided in subsection (c), and notwithstanding any SA 2168. Ms. BALDWIN (for herself, pies— ‘‘(A) a supervisory position classified above other provision of law, a covered financial Mr. BLUMENTHAL, and Mr. WHITEHOUSE) GS–15 of the General Schedule; services regulator may not participate in submitted an amendment intended to ‘‘(B) in the case of a position not under the any particular matter which involves, to the be proposed by her to the bill S. 2155, to General Schedule, a supervisory position for knowledge of the covered financial services promote economic growth, provide tai- which the rate of basic pay is not less than regulator, an individual or entity with whom lored regulatory relief, and enhance 120 percent of the minimum rate of basic pay the covered financial services regulator is in for GS–15 of the General Schedule; or negotiations of future employment or has an consumer protections, and for other arrangement concerning prospective employ- ‘‘(C) any other supervisory position deter- purposes; which was ordered to lie on ment. mined to be of equal classification by the Di- the table; as follows: ‘‘(b) DISCLOSURE OF EMPLOYMENT NEGOTIA- rector. At the end, add the following: TIONS.— ‘‘(3) DIRECTOR.—The term ‘Director’ means ‘‘(1) IN GENERAL.—If a covered financial TITLE VI—FINANCIAL SERVICES the Director of the Office of Government services regulator begins any negotiations of CONFLICTS OF INTEREST Ethics. future employment with another person, or SEC. 601. SHORT TITLE. ‘‘(4) FORMER CLIENT.—The term ‘former cli- an agent or intermediary of another person, ent’— This title may be cited as the ‘‘Financial or other discussion or communication with ‘‘(A) means a person for whom a covered fi- Services Conflict of Interest Act’’. another person, or an agent or intermediary nancial services regulator served personally SEC. 602. RESTRICTIONS ON PRIVATE SECTOR of another person, mutually conducted with as an agent, attorney, or consultant during PAYMENT FOR GOVERNMENT SERV- a view toward reaching an agreement regard- ICE. the 2-year period ending on the date (after ing possible employment of the covered fi- Section 209 of title 18, United States Code, such service) on which the covered financial nancial services regulator, the covered finan- is amended— services regulator begins service in the Fed- cial services regulator shall notify the des- (1) in subsection (a)— eral Government; and ignated agency ethics official of the covered (A) by striking ‘‘any salary’’ and inserting ‘‘(B) does not include— financial services agency employing the cov- ‘‘any bonus or salary’’; and ‘‘(i) instances in which the service provided ered financial services regulator regarding (B) by striking ‘‘his services’’ and inserting was limited to a speech or similar appear- the negotiations, discussions, or communica- ‘‘services rendered or to be rendered’’; and ance; or tions. (2) in subsection (b)— ‘‘(ii) a client of the former employer of the ‘‘(2) INFORMATION.—A designated agency (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and covered financial services regulator to whom ethics official receiving notice under para- (B) by adding at the end the following: the covered financial services regulator did graph (1), after consultation with the Direc- ‘‘(2) For purposes of paragraph (1), a pen- not personally provide such services. tor, shall inform the covered financial serv- sion, retirement, group life, health or acci- ‘‘(5) FORMER EMPLOYER.—The term ‘former ices regulator of any potential conflicts of dent insurance, profit-sharing, stock bonus, employer’— interest involved in any negotiations, discus- or other employee welfare or benefit plan ‘‘(A) means a person for whom a covered fi- sions, or communications with the other per- that makes payment of compensation con- nancial services regulator served as an em- son and the applicable prohibitions. tingent on accepting a position in the Fed- ployee, officer, director, trustee, or general ‘‘(c) WAIVERS ONLY WHEN EXCEPTIONAL CIR- eral Government shall not be considered partner during the 2-year period ending on CUMSTANCES EXIST.— bona fide. the date (after such service) on which the ‘‘(1) IN GENERAL.—The head of a covered fi- ‘‘(3) For purposes of paragraph (2), com- covered financial services regulator begins nancial services agency may only grant a pensation includes a retention award or service in the Federal Government; and waiver of the prohibition under subsection bonus, severance pay, and any other pay- ‘‘(B) does not include— (a) if the head determines that exceptional ment linked to future service in the Federal ‘‘(i) an entity in the Federal Government, circumstances exist. Government in any way.’’. including an executive branch agency; ‘‘(2) REVIEW AND PUBLICATION.—For any SEC. 603. REQUIREMENTS RELATING TO SLOW- ‘‘(ii) a State or local government; waiver granted under paragraph (1), the Di- ING THE REVOLVING DOOR AMONG ‘‘(iii) the District of Columbia; FINANCIAL SERVICES REGULATORS. rector shall— ‘‘(iv) an Indian tribe, as defined in section ‘‘(A) review the circumstances relating to (a) IN GENERAL.—The Ethics in Govern- 4 of the Indian Self-Determination and Edu- the waiver and the determination that ex- ment Act of 1978 (5 U.S.C. App.) is amended cation Assistance Act (25 U.S.C. 5304); or by adding at the end the following: ceptional circumstances exist; and ‘‘(v) the government of a territory or pos- ‘‘(B) make the waiver publicly available on ‘‘TITLE VI—SPECIAL REQUIREMENTS FOR session of the United States. the Web site of the Office of Government FINANCIAL SERVICES REGULATORS ‘‘SEC. 602. CONFLICT OF INTEREST AND ELIGI- Ethics, which shall include— ‘‘SEC. 601. DEFINITIONS. BILITY STANDARDS FOR FINANCIAL ‘‘(i) the name of the private person or per- ‘‘(a) IN GENERAL.—In this title, the terms SERVICES REGULATORS. sons involved in the negotiations or arrange- ‘designated agency ethics official’ and ‘exec- ‘‘(a) IN GENERAL.—A covered financial ment concerning prospective employment; utive branch’ have the meanings given those services regulator shall not make, partici- and terms under section 109. pate in making, or in any way attempt to ‘‘(ii) the date on which the negotiations or ‘‘(b) OTHER DEFINITIONS.—In this title: use the official position of the covered finan- arrangements commenced. ‘‘(1) COVERED FINANCIAL SERVICES AGENCY.— cial services regulator to influence a par- ‘‘(d) SCOPE.—For purposes of this section, The term ‘covered financial services agen- ticular matter that provides a direct and the term ‘negotiations of future employ- cy’— substantial pecuniary benefit for a former ment’ is not limited to discussions of specific

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1589 terms or conditions of employment in a spe- (i) by striking ‘‘or consultant’’ and insert- for compensation (except the United States) cific position. ing ‘‘consultant, lawyer, or lobbyist’’; and in any formal or informal appearance before; ‘‘SEC. 604. RECORDKEEPING. (ii) by striking ‘‘one year’’ and inserting ‘‘2 ‘‘(ii) with the intent to influence, make ‘‘The Director shall— years’’; and any oral or written communication on behalf ‘‘(1) receive all employment histories, (B) in paragraph (3), by striking ‘‘person- of any other person (except the United recusal and waiver records, and other disclo- ally made for the Federal agency’’ and in- States) to; or sure records for covered executive branch of- serting ‘‘participated personally and sub- ‘‘(iii) knowingly aid, advise, or assist in— ficials necessary for monitoring compliance stantially in’’; and ‘‘(I) representing any other person (except with this title; (2) by striking subsection (b) and inserting the United States) in any formal or informal ‘‘(2) promulgate rules and regulations, in the following: appearance before; or consultation with the Director of the Office ‘‘(b) PROHIBITION ON COMPENSATION FROM ‘‘(II) making, with the intent to influence, of Personnel Management and the Attorney AFFILIATES AND SUBCONTRACTORS.—A former any oral or written communication on behalf General, to implement this title; official responsible for a Government con- of any other person (except the United ‘‘(3) provide guidance and assistance where tract referred to in paragraph (1), (2), or (3) States) to, appropriate to facilitate compliance with of subsection (a) may not accept compensa- any court of the United States, or any officer this title; tion for 2 years after awarding the contract or employee thereof, in connection with any ‘‘(4) review and, where necessary, assist from any division, affiliate, or subcontractor judicial or other proceeding, that was actu- of the contractor.’’. designated agency ethics officials in pro- ally pending under his or her official respon- (b) REQUIREMENT FOR PROCUREMENT OFFI- viding advice to covered financial services sibility as a covered financial services regu- CERS TO DISCLOSE JOB OFFERS MADE ON BE- regulators regarding compliance with this lator during the 1-year period ending on the HALF OF RELATIVES.—Section 2103(a) of title date on which his or her employment as a title; and 41, United States Code, is amended in the covered financial services regulator ceases or ‘‘(5) if the Director determines that a vio- matter preceding paragraph (1) by inserting in which he or she participated personally lation of this title may have occurred, and in after ‘‘that official’’ the following: ‘‘, or for and substantially as a covered financial serv- consultation with the designated agency eth- a relative (as defined in section 3110 of title ices regulator; or ics official and the Counsel to the President, 5) of that official,’’. refer the compliance case to the United (c) REQUIREMENT ON AWARD OF GOVERN- ‘‘(B) during the 2-year period beginning on States Attorney for the District of Columbia MENT CONTRACTS TO FORMER EMPLOYERS.— the date on which his or her employment as for enforcement action. (1) IN GENERAL.—Chapter 21 of title 41, a covered financial services regulator ‘‘SEC. 605. PENALTIES AND INJUNCTIONS. United States Code, is amended by adding at ceases— ‘‘(a) CRIMINAL PENALTIES.— the end the following: ‘‘(i) knowingly act as a lobbyist or agent for, or otherwise represent, any other person ‘‘(1) IN GENERAL.—Any person who violates ‘‘§ 2108. Prohibition on involvement by cer- for compensation (except the United States) section 602 or 603 shall be fined under title 18, tain former contractor employees in pro- in any formal or informal appearance before; United States Code, imprisoned for not more curements than 1 year, or both. ‘‘(ii) with the intent to influence, make ‘‘An employee of the Federal Government any oral or written communication or con- ‘‘(2) WILLFUL VIOLATIONS.—Any person who may not be personally and substantially in- willfully violates section 602 or 603 shall be duct any lobbying activities on behalf of any volved with any award of a contract to, or other person (except the United States) to; fined under title 18, United States Code, im- the administration of a contract awarded to, or prisoned for not more than 5 years, or both. a contractor that is a former employer of the ‘‘(iii) knowingly aid, advise, or assist in— ‘‘(b) CIVIL ENFORCEMENT.— employee during the 2-year period beginning ‘‘(I) representing any other person (except ‘‘(1) IN GENERAL.—The Attorney General on the date on which the employee leaves the United States) in any formal or informal may bring a civil action in an appropriate the employment of the contractor.’’. appearance before; or district court of the United States against (2) TECHNICAL AND CONFORMING AMEND- ‘‘(II) making, with the intent to influence, any person who violates, or whom the Attor- MENT.—The table of sections for chapter 21 of any oral or written communication or con- ney General has reason to believe is engag- title 41, United States Code, is amended by duct any lobbying activities on behalf of any ing in conduct that violates, section 602 or adding at the end the following: other person (except the United States) to, 603. ‘‘2108. Prohibition on involvement by certain ‘‘(2) CIVIL PENALTY.— any department or agency of the executive former contractor employees in branch or Congress (including any com- ‘‘(A) IN GENERAL.—Upon proof by a prepon- procurements.’’. derance of the evidence that a person vio- mittee of Congress), or any officer or em- (d) REGULATIONS.—The Administrator for ployee thereof, in connection with any mat- lated section 602 or 603, the court shall im- Federal Procurement Policy and the Direc- pose a civil penalty of not more than the ter that is pending before the department, tor of the Office of Management and Budget the agency, or Congress. greater of— shall— ‘‘(i) $100,000 for each violation; or ‘‘(2) PENALTY.—Any person who violates (1) in consultation with the Director of the paragraph (1) shall be punished as provided ‘‘(ii) the amount of compensation the per- Office of Personnel Management and the son received or was offered for the conduct in section 216. Counsel to the President, promulgate regula- ‘‘(3) DEFINITIONS.—In this subsection— constituting the violation. tions to carry out and ensure the enforce- ‘‘(B) RULE OF CONSTRUCTION.—A civil pen- ‘‘(A) the term ‘covered financial services ment of chapter 21 of title 41, United States regulator’ has the meaning given that term alty under this subsection shall be in addi- Code, as amended by this section; and tion to any other criminal or civil statutory, in section 601 of the Ethics in Government (2) in consultation with designated agency Act of 1978 (5 U.S.C. App.); and common law, or administrative remedy ethics officials (as defined under section 601 available to the United States or any other ‘‘(B) the terms ‘lobbying activities’ and of the Ethics in Government Act of 1978 (5 ‘lobbyist’ have the meanings given those person. U.S.C. App.), as added by section 603), mon- ‘‘(3) INJUNCTIVE RELIEF.— terms in section 3 of the Lobbying Disclosure itor compliance with that chapter by indi- Act of 1995 (2 U.S.C. 1602).’’. ‘‘(A) IN GENERAL.—In a civil action brought viduals and agencies. under paragraph (1) against a person, the At- (b) TECHNICAL AND CONFORMING AMEND- SEC. 605. REVOLVING DOOR RESTRICTIONS ON MENTS torney General may petition the court for an FINANCIAL SERVICES REGULATORS .— order prohibiting the person from engaging MOVING INTO THE PRIVATE SEC- (1) Section 103(a) of the Honest Leadership in conduct that violates section 602 or 603. TOR. and Open Government Act of 2007 (2 U.S.C. ‘‘(B) STANDARD.—The court may issue an (a) IN GENERAL.—Section 207 of title 18, 4702(a)) is amended by striking ‘‘section order under subparagraph (A) if the court United States Code, is amended— 207(e)’’ each place it appears and inserting finds by a preponderance of the evidence that (1) by redesignating subsections (e) ‘‘section 207(f)’’. the conduct of the person violates section 602 through (l) as subsections (f) through (m), re- (2) Section 207 of title 18, United States or 603. spectively; and Code, as amended by subsection (a), is ‘‘(C) RULE OF CONSTRUCTION.—The filing of (2) by inserting after subsection (d) the fol- amended— a petition seeking injunctive relief under lowing: (A) in subsection (g)(1), as so redesignated, this paragraph shall not preclude any other ‘‘(e) RESTRICTIONS ON EMPLOYMENT FOR FI- in the matter preceding subparagraph (A), by remedy that is available by law to the NANCIAL SERVICES REGULATORS.— striking ‘‘or (e)’’ and inserting ‘‘or (f)’’; United States or any other person.’’. ‘‘(1) IN GENERAL.—In addition to the re- (B) in subsection (j)(1)(B), as so redesig- SEC. 604. PROHIBITION OF PROCUREMENT OFFI- strictions set forth in subsections (a), (b), (c), nated, by striking ‘‘subsection (f)’’ and in- CERS ACCEPTING EMPLOYMENT and (d), a covered financial services regu- serting ‘‘subsection (g)’’; and FROM GOVERNMENT CONTRACTORS. lator shall not— (C) in subsection (k), as so redesignated— (a) EXPANSION OF PROHIBITION ON ACCEPT- ‘‘(A) during the 2-year period beginning on (i) in paragraph (1)(B), by striking ‘‘(25 ANCE BY FORMER OFFICIALS OF COMPENSATION the date on which his or her employment as U.S.C. 450i(j))’’ and inserting ‘‘(25 U.S.C. FROM CONTRACTORS.—Section 2104 of title 41, a covered financial services regulator 5323(j))’’; United States Code, is amended— ceases— (ii) in paragraph (2), in the matter pre- (1) in subsection (a)— ‘‘(i) knowingly act as agent or attorney ceding subparagraph (A), by striking ‘‘and (A) in the matter preceding paragraph (1)— for, or otherwise represent, any other person (e)’’ and inserting ‘‘(e), and (f)’’;

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1590 CONGRESSIONAL RECORD — SENATE March 8, 2018 (iii) in paragraph (4), by striking ‘‘and (e)’’ ‘‘(iv) a consultant; and SEC. ll. IMPROVING THE NUMBER OF SMALL and inserting ‘‘(e), and (f)’’; and ‘‘(B) from— BUSINESS INVESTMENT COMPANIES (iv) in paragraph (7)— ‘‘(i) a depository institution; IN UNDERLICENSED STATES. (I) in subparagraph (A), by striking ‘‘and ‘‘(ii) a depository institution holding com- The Small Business Investment Act of 1958 (e)’’ and inserting ‘‘(e), and (f)’’; and pany that is designated by the Financial (15 U.S.C. 661 et seq.) is amended— (II) in subparagraph (B)(ii), in the matter Stability Oversight Council as a system- (1) in section 103 (15 U.S.C. 662)— preceding subclause (I), by striking ‘‘sub- ically important financial market utility (A) in paragraph (18)(E), by striking ‘‘and’’ sections (c), (d), or (e)’’ and inserting ‘‘sub- under section 804 of the Payment, Clearing, at the end; section (c), (d), (e), or (f)’’. and Settlement Supervision Act of 2010 (12 (B) in paragraph (19), by striking the pe- (3) Section 141(b)(4) of the Trade Act of 1974 U.S.C. 5463); or riod at the end and inserting ‘‘; and’’; and (19 U.S.C. 2171(b)(4)) is amended by striking ‘‘(iii) a business entity, firm, or association (C) by adding at the end the following: ‘‘207(f)(3)’’ and inserting ‘‘207(g)(3)’’. that represents an institution described in ‘‘(20) the term ‘underlicensed State’ means (4) Section 7802(b)(3)(B) of the Internal clause (ii) for compensation.’’; a State in which the number of licensees per Revenue Code of 1986 is amended by striking (5) in paragraph (3), as so redesignated— capita is less than the median number of li- ‘‘and (f) of section 207’’ and inserting ‘‘and (A) by redesignating subparagraphs (A) and censees per capita for all States, as cal- (g) of section 207’’. (B) as subparagraphs (B) and (C), respec- culated by the Administrator.’’; (5) Section 3105(c) of the USEC Privatiza- tively; and (2) in section 301(c) (15 U.S.C. 681(c))— tion Act (42 U.S.C. 2297h–3(c)) is amended by (B) by inserting before subparagraph (B), (A) in paragraph (3)— striking ‘‘and (d)’’ and inserting ‘‘and (e)’’. as so redesignated, the following: (i) in subparagraph (B)(iii), by striking (6) Section 106(p)(6)(I)(ii) of title 49, United ‘‘(A) the term ‘covered financial services ‘‘and’’ at the end; States Code, is amended by striking ‘‘and (f) regulator’ has the meaning given the term in (ii) in subparagraph (C), by striking the pe- of section 207’’ and inserting ‘‘and (g) of sec- section 601 of the Ethics in Government Act riod at the end and inserting ‘‘; and’’; and tion 207’’. of 1978 (5 U.S.C. App.);’’; (iii) by adding at the end the following: SEC. 606. RESTRICTIONS ON FEDERAL EXAM- (6) in paragraph (4), as so redesignated, by ‘‘(D) shall give first priority to an appli- INERS AND SUPERVISORS OF FINAN- striking ‘‘or other company’’ each place it cant that is located in an underlicensed CIAL INSTITUTIONS. appears and inserting ‘‘or other company, State with below median financing, as deter- (a) IN GENERAL.—Section 10(k) of the Fed- firm, or association’’; and mined by the Administrator.’’; and eral Deposit Insurance Act (12 U.S.C. 1820(k)) (7) in paragraph (7), as so redesignated— (B) in paragraph (4)(B)— is amended— (i) by striking clause (i); (1) in the subsection heading— (A) in subparagraph (A)— (i) in the matter preceding clause (i), by (ii) by redesignating clauses (ii) and (iii) as (A) by striking ‘‘ONE-YEAR’’ and inserting striking ‘‘other company’’ and inserting clauses (i) and (ii), respectively; and ‘‘TWO-YEAR’’; and ‘‘other company, firm, or association’’; and (iii) by amending clause (i), as so redesig- (B) by striking ‘‘EXAMINERS’’ and inserting (ii) in clause (i)(I), by striking ‘‘other com- nated, to read as follows: ‘‘EXAMINERS AND SUPERVISORS’’; ‘‘(i) is located in a State that— (2) in paragraph (1)— pany’’ and inserting ‘‘other company, firm, ‘‘(I) is not served by a licensee; or (A) by striking subparagraph (B) and in- or association’’; and ‘‘(II) is an underlicensed State; and’’; and serting the following: (B) in subparagraph (C), by striking ‘‘a (3) in section 308(g) (15 U.S.C. 687(g))— ‘‘(B) served— company’’ and inserting ‘‘a company, firm, ‘‘(i) not less than 2 months during the final or association’’. (A) in paragraph (2)— 12 months of the employment of the person (b) TECHNICAL AND CONFORMING AMEND- (i) in subparagraph (B), by inserting ‘‘and with that agency or entity as the senior ex- MENTS.—Section 10(k) of the Federal Deposit licensing’’ after ‘‘financing’’; aminer (or a functionally equivalent posi- Insurance Act (12 U.S.C. 1820(k)), as amended (ii) by redesignating subparagraphs (C) tion) of a depository institution or deposi- by subsection (a), is amended— through (J) as subparagraphs (E), through tory institution holding company with con- (1) in paragraph (1), in the matter pre- (L), respectively; and tinuing, broad responsibility for the exam- ceding subparagraph (A), by striking ‘‘para- (iii) by inserting after subparagraph (B) ination (or inspection) of that depository in- graph (6)’’ and inserting ‘‘paragraph (7)’’; the following: stitution or depository institution holding (2) in paragraph (5)(A), as so redesignated, ‘‘(C) The steps the Administration has company on behalf of the relevant agency or by striking ‘‘paragraph (1)(B)’’ and inserting taken to improve the number of licensees in Federal reserve bank; or ‘‘paragraphs (1)(B) and (2)’’; and underlicensed States. ‘‘(ii) as a supervisor of the senior examiner (3) in paragraph (7), as so redesignated— ‘‘(D) The Administration’s plans to support with responsibility for managing the over- (A) in subparagraph (A), in the matter pre- States that seek to increase the number of sight of not more than 5 depository institu- ceding clause (i)— licensees in the State.’’; and tions or depository institution holding com- (i) by striking ‘‘subject to paragraph (1)’’ (B) in paragraph (3)— panies on behalf of the relevant agency or and inserting ‘‘subject to paragraph (1) or (i) in subparagraph (C), by striking ‘‘and’’ Federal reserve bank; and’’; and (2)’’; and at the end; (B) in subparagraph (C)— (ii) by striking ‘‘paragraph (1)(C)’’ and in- (ii) in subparagraph (D), by striking the pe- (i) in the matter preceding clause (i), by serting ‘‘paragraph (1)(C) or (2)’’; and riod at the end and inserting ‘‘; and’’; and striking ‘‘1 year’’ and inserting ‘‘2 years’’; (B) in subparagraph (C)— (iii) by adding at the end the following: (ii) in clause (i)— (i) by striking ‘‘person described in para- ‘‘(E) the geographic dispersion of licensees (I) by striking ‘‘other company’’ and in- graph (1)’’ and inserting ‘‘person described in in each State compared to the population of serting ‘‘other company, firm, or associa- paragraph (1) or (2)’’; and the State, identifying underlicensed tion’’; and (ii) by striking ‘‘the functions described in States.’’. (II) by striking ‘‘or’’ at the end; paragraph (1)(B)’’ and inserting ‘‘the func- (iii) in clause (ii), by striking the period at tions or duties described in paragraph (1)(B) SA 2170. Mr. MERKLEY (for himself, the end and inserting ‘‘; or’’; and or (2)’’. Mr. DURBIN, and Mrs. MURRAY) sub- (iv) by adding at the end the following: SEC. 607. SEVERABILITY. mitted an amendment intended to be ‘‘(iii) a business entity, firm, or association If any provision of this title or any amend- proposed by him to the bill S. 2155, to that represents the depository institution or ment made by this title, or any application promote economic growth, provide tai- depository institution holding company for of such provision or amendment to any per- lored regulatory relief, and enhance compensation.’’; son or circumstance, is held to be unconsti- (3) by redesignating paragraphs (2) through consumer protections, and for other tutional, the remainder of the provisions of purposes; which was ordered to lie on (6) as paragraphs (3) through (7), respec- this title and the amendments made by this tively; title and the application of the provision or the table; as follows: (4) by inserting after paragraph (1) the fol- amendment to any other person or cir- At the end of title III, add the following: lowing: cumstance shall not be affected. ‘‘(2) APPLICATION OF PENALTIES FOR SUPER- SEC. 308. EXTENSION OF CONSUMER CREDIT. VISORS.—A supervisor of a covered financial (a) CONSUMER CONTROL OVER BANK AC- services regulator, or a supervisor of a senior SA 2169. Mr. RUBIO submitted an COUNTS.— examiner described in paragraph (1)(B)(i), amendment intended to be proposed by (1) PROHIBITING UNAUTHORIZED REMOTELY shall be subject to the penalties described in him to the bill S. 2155, to promote eco- CREATED CHECKS.—Section 905 of the Elec- paragraph (7) if the supervisor knowingly ac- nomic growth, provide tailored regu- tronic Fund Transfer Act (15 U.S.C. 1693c) is cepts compensation during the 2-year period latory relief, and enhance consumer amended by adding at the end the following: beginning on the date on which the service of protections, and for other purposes; ‘‘(d) LIMITATIONS ON REMOTELY CREATED the supervisor is terminated— which was ordered to lie on the table; CHECKS.— ‘‘(A) as— ‘‘(1) DEFINITION.—In this subsection— ‘‘(i) an employee; as follows: ‘‘(A) the term ‘remotely created check’ ‘‘(ii) an officer; At the appropriate place, insert the fol- means a check, including a paper or elec- ‘‘(iii) a director; or lowing: tronic check and any other payment order

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1591 that the Bureau, by rule, determines is ap- ‘‘(II) payable in 1 or more installments of ‘‘(1) the terms ‘Internet access service’ and propriately covered under this subsection, less than 12 months (or such longer period as ‘Internet information location tool’ have the that— the Bureau may, by rule, determine); meanings given those terms in section 231(e) ‘‘(i) is not created by the financial institu- ‘‘(ii) an open end credit plan in which each of the Communications Act of 1934 (47 U.S.C. tion that holds the customer account from advance is fully repayable within a defined 231(e)); which the check is to be paid; and time or in connection with a defined event, ‘‘(2) the term ‘sensitive personal financial ‘‘(ii) does not bear a signature applied, or or both; or information’ means a Social Security num- purported to be applied, by the person from ‘‘(iii) any other plan as the Bureau deter- ber, financial account number, bank routing whose account the check is to be paid; and mines, by rule; and number, bank account number, or security ‘‘(B) the term ‘Federal consumer financial ‘‘(2) includes any action that facilitates, or access code that is immediately necessary law’ has the meaning given the term in sec- brokers, arranges, or gathers applications for to permit access to the financial account of tion 1002 of the Consumer Financial Protec- a transaction described in paragraph (1). an individual; and tion Act of 2010 (12 U.S.C. 5481). ‘‘(b) REGISTRATION REQUIREMENT.—A per- ‘‘(3) the term ‘small-dollar consumer credit ‘‘(2) LIMITATIONS.—Subject to the limita- son shall register with the Bureau before transaction’ has the meaning given the term tions in paragraph (3) and any additional issuing credit in a small-dollar consumer in section 110(a). limitations that the Bureau may establish, credit transaction.’’; and ‘‘(b) IDENTIFICATION INFORMATION.—Any by rule, a remotely created check may only (ii) in section 173 (15 U.S.C. 1666j), by add- person facilitating, brokering, arranging for, be issued by a person designated in writing ing at the end the following: or gathering applications for the distribution ‘‘(d) Notwithstanding any other provision by a consumer, with that written designa- of sensitive personal financial information in of this title, any small-dollar consumer cred- tion specifically provided by the consumer to connection with a small-dollar consumer it transaction, as defined in section 110(a), the insured depository institution at which credit transaction shall prominently disclose shall comply with the laws of the State in the consumer maintains the account from information by which the person may be con- which the consumer to which credit in the tacted or identified, including for service of which the check is to be drawn. transaction is extended resides with respect process and for identification of the reg- ‘‘(3) ADDITIONAL LIMITATIONS.— to annual percentage rates, interest, fees, istrant of any domain name registered or ‘‘(A) IN GENERAL.—A designation provided charges, and such other similar or related used. by a consumer under paragraph (2) may be matters as the Bureau may, by rule, deter- ‘‘(c) PROHIBITION ON LEAD GENERATION IN revoked at any time by the consumer. mine if the small-dollar consumer credit SMALL-DOLLAR CONSUMER CREDIT TRANS- ‘‘(B) CONSUMER FINANCIAL PROTECTION transaction is— ACTIONS.—No person may facilitate, broker, LAWS.—No payment order, including a re- ‘‘(1) made over— arrange for, or gather applications for the motely created check, may be issued by any ‘‘(A) the Internet; distribution of sensitive personal financial person in response to the exercise of, or at- ‘‘(B) telephone; information in connection with a small-dol- tempt to exercise, any right by a consumer ‘‘(C) facsimile; lar consumer credit transaction unless the under— ‘‘(D) mail; person is directly providing the small-dollar ‘‘(i) any Federal consumer financial law; or ‘‘(E) electronic mail; or consumer credit to a consumer. ‘‘(ii) any other provision of any law or reg- ‘‘(F) other electronic communication; or ‘‘(d) RULE OF CONSTRUCTION.— ulation within the jurisdiction of the Bu- ‘‘(2) conducted by a national bank.’’. ‘‘(1) IN GENERAL.—Nothing in this section reau.’’. (B) TECHNICAL AND CONFORMING AMEND- may be construed to limit the authority of (2) CONSUMER PROTECTIONS FOR CERTAIN MENT.—The table of sections for chapter 1 of the Bureau to further restrict activities cov- ONE-TIME ELECTRONIC FUND TRANSFERS.—Sec- the Truth in Lending Act (15 U.S.C. 1601 et ered by this section. tion 913 of the Electronic Fund Transfer Act seq.) is amended by inserting after the item ‘‘(2) CLARIFICATION.—For the purposes of (15 U.S.C. 1693k) is amended— relating to section 109 the following: this section, it shall not be considered facili- (A) in the matter preceding paragraph (1), tating the distribution of sensitive personal ‘‘110. Registration requirement for small-dol- by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘No financial information in connection with a lar lenders.’’. person’’; small-dollar consumer credit transaction to (B) in subsection (a)(1), as so designated, (2) PROHIBITION ON CERTAIN FEES.—Section be engaged solely in 1 of the following activi- by striking ‘‘preauthorized electronic fund 915 of the Electronic Fund Transfer Act (15 ties: transfers’’ and inserting ‘‘an electronic fund U.S.C. 1693l–1) is amended— ‘‘(A) The provision of a telecommuni- transfer’’; and (A) in subsection (b)(2)(D), by striking cations service, an Internet access service, or (C) by adding at the end the following: ‘‘subsection (d)’’ and inserting ‘‘subsection an Internet information location tool. ‘‘(b) TREATMENT FOR ELECTRONIC FUND (e)’’; ‘‘(B) The transmission, storage, retrieval, TRANSFERS IN CREDIT EXTENSIONS.—If a con- (B) by redesignating subsection (d) as sub- hosting, formatting, or translation (or any sumer voluntarily agrees to repay an exten- section (e); and combination thereof) of a communication, sion of a small-dollar consumer credit trans- (C) by inserting after subsection (c) the fol- without selection or alteration of the con- action, as defined in section 110(a) of the lowing: tent of the communication, except the dele- DDITIONAL FEES PROHIBITED.— Truth in Lending Act, by means of an elec- ‘‘(d) A tion of a particular communication or mate- ‘‘(1) DEFINITION.—In this subsection, the tronic fund transfer, the electronic fund rial made by another person in a manner term ‘prepaid account’ has the meaning transfer shall be treated as a preauthorized that is consistent with section 230(c) of the given the term by rule of the Bureau. electronic fund transfer subject to the pro- Communications Act of 1934 (47 U.S.C. ‘‘(2) PROHIBITION.—With respect to the use tections of this title.’’. 230(c)).’’. of a prepaid account by a consumer— (b) TRANSPARENCY AND CONSUMER EM- (2) TECHNICAL AND CONFORMING AMEND- ‘‘(A) it shall be unlawful for any person to POWERMENT IN SMALL-DOLLAR LENDING.— MENT.—The table of sections for chapter 2 of charge the consumer a fee for an overdraft (1) SMALL-DOLLAR CONSUMER CREDIT TRANS- the Truth in Lending Act (15 U.S.C. 1631 et with respect to the prepaid account, includ- ACTIONS.— seq.) is amended by adding at the end the fol- ing a shortage of funds or a transaction proc- (A) IN GENERAL.—The Truth in Lending Act lowing: essed for an amount exceeding the account (15 U.S.C. 1601 et seq.) is amended— ‘‘140B. Restrictions on lead generation in balance of the prepaid account; (i) by inserting after section 109 (15 U.S.C. small-dollar consumer credit ‘‘(B) any transaction for an amount that 1608) the following: transactions.’’. exceeds the account balance of the prepaid ‘‘SEC. 110. REGISTRATION REQUIREMENT FOR account may be declined, except that the (d) STUDIES.— SMALL-DOLLAR LENDERS. consumer may not be charged a fee for that (1) DEFINITIONS.—In this subsection— ‘‘(a) DEFINITION.—In this section, the term purpose; and (A) the term ‘‘appropriate committees of ‘small-dollar consumer credit transaction’— ‘‘(C) the Bureau may, by rule, prohibit the Congress’’ means— ‘‘(1) means any transaction that extends charging of any fee so that the Bureau may— (i) the Committee on Banking, Housing, credit that is— ‘‘(i) prevent unfair, deceptive, or abusive and Urban Affairs of the Senate; ‘‘(A) made to a consumer in an amount practices; and (ii) the Committee on Indian Affairs of the that— ‘‘(ii) promote the ability of the consumer Senate; ‘‘(i) is not more than— to understand and compare the costs of pre- (iii) the Committee on Financial Services ‘‘(I) $5,000; or paid accounts.’’. of the House of Representatives; and ‘‘(II) such greater amount as the Bureau (c) RESTRICTIONS ON LEAD GENERATION IN (iv) the Committee on Natural Resources may, by rule, determine; and SMALL-DOLLAR CONSUMER CREDIT TRANS- of the House of Representatives; and ‘‘(ii) shall be adjusted annually to reflect ACTIONS.— (B) the term ‘‘Indian tribe’’ has the mean- changes in the Consumer Price Index for all (1) IN GENERAL.—Chapter 2 of the Truth in ing given the term in section 4 of the Indian urban consumers published by the Depart- Lending Act (15 U.S.C. 1631 et seq.) is amend- Self-Determination and Education Assist- ment of Labor; and ed by adding at the end the following: ance Act (25 U.S.C. 5304). ‘‘(B) extended pursuant to an agreement ‘‘SEC. 140B. RESTRICTIONS ON LEAD GENERA- (2) STUDY REQUIRED.—Not later than 180 that is— TION IN SMALL-DOLLAR CONSUMER days after the date of enactment of this Act, ‘‘(i)(I) other than an open end credit plan; CREDIT TRANSACTIONS. the Comptroller General of the United States and ‘‘(a) DEFINITIONS.—In this section— shall conduct a study regarding—

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1592 CONGRESSIONAL RECORD — SENATE March 8, 2018 (A) the availability of capital on reserva- nomic growth, provide tailored regu- (A) in subsection (a)— tions of Indian tribes; and latory relief, and enhance consumer (i) in paragraph (1), by striking ‘‘with total (B) the impact that small-dollar consumer protections, and for other purposes; consolidated assets equal to or greater than credit extended through Internet and non- which was ordered to lie on the table; $50,000,000,000’’ and inserting ‘‘that have been Internet means to members of Indian tribes as follows: identified as global systemically important has had on economic opportunity and wealth BHCs under section 217.402 of title 12, Code of Strike section 401 and insert the following: for members of Indian tribes. Federal Regulations, or subjected to a deter- (3) CONSULTATION.—In conducting the SEC. 401. SYSTEMIC RISK DESIGNATION IM- mination under subsection (l)’’; and PROVEMENT. study required under paragraph (2), the (ii) by striking paragraph (2) and inserting (a) REVISIONS TO COUNCIL AUTHORITY.— Comptroller General of the United States the following: shall consult, as appropriate, with— (1) PURPOSES AND DUTIES.—Section 112(a)(2)(I) of the Financial Stability Act of ‘‘(2) TAILORED APPLICATION.—In prescribing (A) the Bureau of Consumer Financial Pro- 2010 (12 U.S.C. 5322(a)(2)(I)) is amended by in- more stringent prudential standards under tection; serting ‘‘, which have been identified as glob- this section, the Board of Governors may, on (B) the Board of Governors of the Federal al systemically important BHCs under sec- its own or pursuant to a recommendation by Reserve System; tion 217.402 of title 12, Code of Federal Regu- the Council in accordance with section 115, (C) the Director of the Bureau of Indian Af- lations, or subjected to a determination differentiate among companies on an indi- fairs; under section 165(l)’’ before the semicolon. vidual basis or by category, taking into con- (D) federally recognized Indian tribes; and (2) ENHANCED SUPERVISION.—Section 115(a) sideration their capital structure, riskiness, (E) community development financial in- of the Financial Stability Act of 2010 (12 complexity, financial activities (including stitutions operating in Indian lands. U.S.C. 5325(a)) is amended— the financial activities of their subsidiaries), (4) CONGRESSIONAL CONSIDERATION.—The (A) in paragraph (1), in the matter pre- size, and any other risk-related factors that Comptroller General of the United States ceding subparagraph (A), by striking ‘‘large, the Board of Governors deems appropriate.’’; shall submit to the appropriate committees interconnected bank holding companies’’ and (B) in subsection (j)(1), by striking ‘‘with of Congress the study required under para- inserting ‘‘bank holding companies that have total consolidated assets equal to or greater graph (2). been identified as global systemically impor- (e) RULE MAKING.—Not later than 1 year than $50,000,000,000’’ and inserting ‘‘that has tant BHCs under section 217.402 of title 12, been identified as a global systemically im- after the date of enactment of this Act, the Code of Federal Regulations, or subjected to Bureau of Consumer Financial Protection portant BHC under section 217.402 of title 12, a determination under section 165(l)’’; and Code of Federal Regulations, or subjected to shall adopt any final rules necessary to im- (B) in paragraph (2)— plement the provisions of this section and a determination under subsection (l)’’; and (i) in subparagraph (A), by striking ‘‘; or’’ (C) by adding at the end the following: the amendments made by this section. at the end and inserting a period; ‘‘(l) ADDITIONAL BANK HOLDING COMPANIES Mr. PERDUE (for himself, (ii) by striking ‘‘the Council may’’ and all SA 2171. that follows through ‘‘differentiate’’ and in- SUBJECT TO ENHANCED SUPERVISION AND PRU- Mr. HOEVEN, Mr. KENNEDY, Mr. SCOTT, serting ‘‘the Council may differentiate’’; and DENTIAL STANDARDS BY TAILORED REGULA- Mr. ISAKSON, Mr. DAINES, Mr. PAUL, (iii) by striking subparagraph (B). TION.— Mr. LEE, Mr. ENZI, and Mr. RUBIO) sub- (3) REPORTS.—Section 116(a) of the Finan- ‘‘(1) DETERMINATION.—The Board of Gov- mitted an amendment intended to be cial Stability Act of 2010 (12 U.S.C. 5326(a)) is ernors may— proposed by him to the bill S. 2155, to amended by striking ‘‘with total consoli- ‘‘(A) determine that a bank holding com- promote economic growth, provide tai- dated assets of $50,000,000,000 or greater’’ and pany that has not been identified as a global lored regulatory relief, and enhance inserting ‘‘that has been identified as a glob- systemically important BHC under section consumer protections, and for other al systemically important BHC under section 217.402 of title 12, Code of Federal Regula- 217.402 of title 12, Code of Federal Regula- tions, shall be subject to certain enhanced purposes; which was ordered to lie on tions, or subjected to a determination under the table; as follows: supervision or prudential standards under section 165(l)’’. this section, tailored to the risks presented, At the appropriate place, insert the fol- (4) MITIGATION.—Section 121(a) of the Fi- based on the considerations described in lowing: nancial Stability Act of 2010 (12 U.S.C. paragraph (3), if material financial distress SEC. lll. SUBJECTING THE BUREAU OF CON- 5331(a)) is amended, in the matter preceding at the bank holding company, or the nature, SUMER FINANCIAL PROTECTION TO paragraph (1), by striking ‘‘with total con- scope, size, scale, concentration, inter- THE REGULAR APPROPRIATIONS solidated assets of $50,000,000,000 or more’’ connectedness, or mix of the activities of the PROCESS. and inserting ‘‘that has been identified as a individual bank holding company, could pose (a) IN GENERAL.—Section 1017 of the Con- global systemically important BHC under a threat to the financial stability of the sumer Financial Protection Act of 2010 (12 section 217.402 of title 12, Code of Federal United States; or U.S.C. 5497) is amended— Regulations, or subjected to a determination ‘‘(B) by regulation determine that a cat- (1) in subsection (a)— under section 165(l)’’. egory of bank holding companies that have (A) in the subsection heading, by striking (5) OFFICE OF FINANCIAL RESEARCH.—Sec- not been identified as global systemically ‘‘TRANSFER OF FUNDS FROM BOARD OF GOV- tion 155(d) of the Financial Stability Act of important BHCs under section 217.402 of title ERNORS.—’’ and inserting ‘‘BUDGET AND FI- 2010 (12 U.S.C. 5345(d)) is amended by striking 12, Code of Federal Regulations, shall be sub- NANCIAL MANAGEMENT.—’’; ‘‘with total consolidated assets of ject to certain enhanced supervision or pru- (B) by striking paragraphs (1) through (3); 50,000,000,000 or greater’’ and inserting ‘‘that dential standards under this section, tailored (C) by redesignating paragraphs (4) and (5) have been identified as global systemically as paragraphs (1) and (2), respectively; and important BHCs under section 217.402 of title to the risk presented by the category of bank (D) in paragraph (1), as so redesignated— 12, Code of Federal Regulations, or subjected holding companies, based on the consider- (i) in the paragraph heading, by striking to a determination under section 165(l)’’. ations described in paragraph (3), if material ‘‘BUDGET AND FINANCIAL MANAGEMENT.—’’ and (b) REVISIONS TO BOARD AUTHORITY.— financial distress at the category of bank inserting ‘‘IN GENERAL.—’’; (1) ACQUISITIONS.—Section 163 of the Finan- holding companies, or the nature, scope, size, (ii) by striking subparagraph (E); and cial Stability Act of 2010 (12 U.S.C. 5363) is scale, concentration, interconnectedness, or (iii) by redesignating subparagraph (F) as amended by striking ‘‘with total consoli- mix of the activities of the category of bank subparagraph (E); dated assets equal to or greater than holding companies, could pose a threat to (2) by striking subsections (b) through (d); $50,000,000,000’’ each place the term appears the financial stability of the United States. (3) by redesignating subsection (e) as sub- and inserting ‘‘that has been identified as a ‘‘(2) COUNCIL APPROVAL OF REGULATIONS section (b); and global systemically important BHC under WITH RESPECT TO CATEGORIES.—Notwith- (4) in subsection (b), as so redesignated— section 217.402 of title 12, Code of Federal standing subparagraph (B) of paragraph (1), a (A) by striking paragraphs (1) through (3) Regulations, or subjected to a determination regulation issued by the Board of Governors and inserting the following: under section 165(l)’’. to make a determination under that sub- ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— (2) MANAGEMENT INTERLOCKS.—Section 164 paragraph shall not take effect unless the There is authorized to be appropriated such of the Financial Stability Act of 2010 (12 Council, by a vote of not fewer than 2⁄3 of the funds as may be necessary to carry out this U.S.C. 5364) is amended by striking ‘‘with voting members then serving, including an title for fiscal year 2020.’’; and total consolidated assets equal to or greater affirmative vote by the Chairperson, ap- (B) by redesignating paragraph (4) as para- than $50,000,000,000’’ and inserting ‘‘that has proves the metrics used by the Board of Gov- graph (2). been identified as a global systemically im- ernors in establishing the regulation. (b) EFFECTIVE DATE.—The amendments portant BHC under section 217.402 of title 12, ‘‘(3) CONSIDERATIONS.—In making any de- made by this Act shall take effect on Octo- Code of Federal Regulations, or subjected to termination under paragraph (1), the Board ber 1, 2019. a determination under section 165(l)’’. of Governors shall consider the following fac- (3) ENHANCED SUPERVISION AND PRUDENTIAL tors: SA 2172. Mr. PERDUE submitted an STANDARDS.—Section 165 of the Dodd-Frank ‘‘(A) The size of the bank holding company. amendment intended to be proposed by Wall Street Reform and Consumer Protec- ‘‘(B) The interconnectedness of the bank him to the bill S. 2155, to promote eco- tion Act (12 U.S.C. 5365) is amended— holding company.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1593 ‘‘(C) The extent of readily available sub- latory relief, and enhance consumer tion Act of 2010 (12 U.S.C. 5512(b)(3)) is stitutes or financial institution infrastruc- protections, and for other purposes; amended— ture for the services of the bank holding which was ordered to lie on the table; (1) in subparagraph (A), by striking ‘‘may’’ company. as follows: and inserting ‘‘shall’’; and ‘‘(D) The global cross-jurisdictional activ- (2) in subparagraph (B)— ity of the bank holding company. On page 124, line 21, strike ‘‘QUALIFIED’’ and (A) in the matter preceding clause (i), by ‘‘(E) The complexity of the bank holding insert ‘‘PRIVATE’’. striking‘‘, as appropriate,’’; company. On page 125, line 1, strike ‘‘QUALIFIED’’ and (B) in clause (ii), by striking ‘‘and’’ at the ‘‘(F) Whether the bank holding company insert ‘‘PRIVATE’’. end; On page 125, line 7, strike ‘‘qualified’’ and has a ømethod 1/method 2?¿ score of not less (C) in clause (iii), by striking the period at insert ‘‘private’’. than 52 øbasis points? øNote: I’m not sure the end and inserting ‘‘and’’; and On page 127, line 10, strike ‘‘qualified’’ and about the 52 number here. Do you mean 520? (D) by adding at the end the following: insert ‘‘private’’. Method 1 scores range from below 130 to 530- On page 127, lines 12 and 13, strike ‘‘section ‘‘(iv) whether any provision of this title, or ¿¿ 629. 221(d) of the Internal Revenue Code of 1986’’ any rule issued under this title, would be un- ‘‘(4) CONSISTENT APPLICATION OF CONSIDER- and insert ‘‘section 140(a)(7)(A) of the Truth necessary or unduly burdensome for the ATIONS.—In making a determination under in Lending Act (15 U.S.C. 1650(a)(7)(A))’’. class of covered persons.’’. paragraph (1), the Board of Governors shall (b) ENSURING A COMPREHENSIVE REGU- ensure that bank holding companies that are SA 2174. Mr. SASSE submitted an LATORY REVIEW.— similarly situated with respect to the factors amendment intended to be proposed by (1) IN GENERAL.—Section 2222 of the Eco- described under paragraph (3), are treated him to the bill S. 2155, to promote eco- nomic Growth and Regulatory Paperwork similarly for purposes of any enhanced su- Reduction Act of 1996 (12 U.S.C. 3311) is pervision or prudential standards applied nomic growth, provide tailored regu- latory relief, and enhance consumer amended— under this section. (A) in subsection (a)— ‘‘(5) USE OF CURRENTLY REPORTED DATA TO protections, and for other purposes; (i) by striking ‘‘each appropriate Federal AVOID UNNECESSARY BURDEN.—For purposes which was ordered to lie on the table; banking agency represented on the Council’’ of making a determination under paragraph as follows: and inserting ‘‘each of the Office of the (1), the Board of Governors shall make use of At the end of title II, add the following: Comptroller of the Currency, the Federal De- data already being reported to the Board of SEC. 2ll. ENSURING A COMPREHENSIVE REGU- posit Insurance Corporation, the Board of Governors, including scores calculated under LATORY REVIEW. Governors of the Federal Reserve System, subpart H of part 217 of title 12, Code of Fed- (a) IN GENERAL.—Section 2222 of the Eco- and the Bureau of Consumer Financial Pro- eral Regulations, to avoid placing an unnec- nomic Growth and Regulatory Paperwork tection as the Federal agency representa- essary burden on bank holding companies. Reduction Act of 1996 (12 U.S.C. 3311) is tives on the Council’’; ‘‘(m) SYSTEMIC IDENTIFICATION.—With re- amended— (ii) by striking ‘‘any such appropriate Fed- spect to the bank holding companies that (1) in subsection (a)— eral banking agency’’ and inserting ‘‘any have been identified as global systemically (A) by striking ‘‘each appropriate Federal such Federal agency’’; and important BHCs under section 217.402 of title banking agency represented on the Council’’ (iii) by striking ‘‘insured depository insti- 12, Code of Federal Regulations, or subjected and inserting ‘‘each of the Office of the tutions’’ and inserting ‘‘financial institu- to a determination under subsection (l), the Comptroller of the Currency, the Federal De- tions’’; Board of Governors shall— posit Insurance Corporation, the Board of (B) in subsections (b), (c), and (d), by strik- ‘‘(1) publish, including on the Web site of Governors of the Federal Reserve System, ing ‘‘the appropriate Federal banking agen- the Board of Governors, a list of all bank and the Bureau of Consumer Financial Pro- cy’’ each place that term appears and insert- holding companies that have been so identi- tection as the Federal agency representa- ing ‘‘the appropriate Federal agency de- fied, and keep such list current; and tives on the Council’’; scribed in subsection (a)’’; and ‘‘(2) solicit feedback from the Council on (B) by striking ‘‘any such appropriate Fed- (C) in subsection (e)— the identification process and on the applica- eral banking agency’’ and inserting ‘‘any (i) in paragraph (1), by striking ‘‘the appro- tion of such process to specific bank holding such Federal agency’’; and priate Federal banking agencies’’ and insert- companies.’’. (C) by striking ‘‘insured depository institu- ing ‘‘the appropriate Federal agencies de- (4) CONFORMING AMENDMENT.—Section 11 of tions’’ and inserting ‘‘financial institu- scribed in subsection (a)’’; and the Federal Reserve Act (12 U.S.C. 248) is tions’’; (ii) in paragraph (2), by striking ‘‘the ap- amended— (2) in subsections (b), (c), and (d), by strik- propriate Federal banking agency’’ and in- (A) by redesignating the second subsection ing ‘‘the appropriate Federal banking agen- serting ‘‘the appropriate Federal agency de- (s) (relating to assessments) as subsection cy’’ each place that term appears and insert- scribed in subsection (a)’’. (t); and ing ‘‘the appropriate Federal agency de- (2) REQUIRED REGULATORY REVIEW.—Not (B) in subsection (t)(2)(A), as so redesig- scribed in subsection (a)’’; and later than 1 year after the date of enactment nated, by striking ‘‘having total consoli- (3) in subsection (e)— of this Act, the Bureau of Consumer Finan- dated assets of $50,000,000,000 or more’’ and (A) in paragraph (1), by striking ‘‘the ap- cial Protection shall complete the review re- inserting ‘‘that have been identified as glob- propriate Federal banking agencies’’ and in- quired under section 2222 of the Economic al systemically important bank BHCs under serting ‘‘the appropriate Federal agencies Growth and Regulatory Paperwork Reduc- section 217.402 of title 12, Code of Federal described in subsection (a)’’; and tion Act of 1996 (12 U.S.C. 3311), complying Regulations, or subjected to a determination (B) in paragraph (2), by striking ‘‘the ap- with all the requirements under that section. under section 165(l) of the Financial Sta- propriate Federal banking agency’’ and in- bility Act of 2010 (12 U.S.C. 5365(l))’’. serting ‘‘the appropriate Federal agency de- (c) RULE OF CONSTRUCTION.—Nothing in scribed in subsection (a)’’. SA 2176. Mr. SASSE submitted an this section or the amendments made by this (b) REQUIRED REGULATORY REVIEW.—Not amendment intended to be proposed by section shall be construed to prohibit the later than 1 year after the date of enactment him to the bill S. 2155, to promote eco- Board of Governors of the Federal Reserve of this Act, the Bureau of Consumer Finan- nomic growth, provide tailored regu- System from prescribing enhanced pruden- cial Protection shall complete the review re- latory relief, and enhance consumer tial standards for any bank holding company quired under section 2222 of the Economic that— protections, and for other purposes; Growth and Regulatory Paperwork Reduc- which was ordered to lie on the table; (1) the Board of Governors determines, tion Act of 1996 (12 U.S.C. 3311), complying based upon the size, interconnectedness, sub- with all the requirements under that section. as follows: stitutability, global cross-jurisdictional ac- At the end of title II, add the following: tivity, and complexity of the bank holding SA 2175. Mr. SASSE submitted an company, could pose a safety and soundness amendment intended to be proposed by SEC. 2ll. RULEMAKING AUTHORITY. risk to the stability of the United States him to the bill S. 2155, to promote eco- Section 1022(b)(3) of the Consumer Finan- banking or financial system; and cial Protection Act of 2010 (12 U.S.C. (2) has not been designated as a global sys- nomic growth, provide tailored regu- latory relief, and enhance consumer 5512(b)(3)) is amended— temically important bank holding company. (1) in subparagraph (A), by striking ‘‘may’’ (d) EFFECTIVE DATE.—The amendments protections, and for other purposes; and inserting ‘‘shall’’; and made by this section shall take effect on the which was ordered to lie on the table; (2) in subparagraph (B)— date that is 1 year after the date of enact- as follows: (A) in the matter preceding clause (i), by ment of this Act. At the appropriate place, insert the fol- striking‘‘, as appropriate,’’; lowing: (B) in clause (ii), by striking ‘‘and’’ at the SA 2173. Mr. PETERS submitted an SEC. lll. COMMUNITY FINANCIAL INSTITUTION end; amendment intended to be proposed by EXEMPTION. (C) in clause (iii), by striking the period at him to the bill S. 2155, to promote eco- (a) RULEMAKING AUTHORITY.—Section the end and inserting ‘‘and’’; and nomic growth, provide tailored regu- 1022(b)(3) of the Consumer Financial Protec- (D) by adding at the end the following:

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1594 CONGRESSIONAL RECORD — SENATE March 8, 2018 ‘‘(iv) whether any provision of this title, or amendment SA 2151 proposed by Mr. (b) TRUTH IN LENDING ACT AMENDMENTS.— any rule issued under this title, would be un- CRAPO (for himself, Mr. DONNELLY, Ms. The Truth in Lending Act (15 U.S.C. 1601 et necessary or unduly burdensome for the HEITKAMP, Mr. TESTER, and Mr. WAR- seq.), as amended by this Act, is further class of covered persons.’’. NER) to the bill S. 2155, to promote eco- amended— nomic growth, provide tailored regu- (1) in section 128— SA 2177. Mr. MENENDEZ submitted (A) in subsection (e)— an amendment intended to be proposed latory relief, and enhance consumer protections, and for other purposes; (i) in the subsection heading, by striking by him to the bill S. 2155, to promote ‘‘PRIVATE’’; economic growth, provide tailored reg- which was ordered to lie on the table; (ii) in paragraph (1)(O), by striking ‘‘para- ulatory relief, and enhance consumer as follows: graph (6)’’ and inserting ‘‘paragraph (9)’’; protections, and for other purposes; In section 402 of the amendment, strike (iii) in paragraph (2)(L), by striking ‘‘para- subsection (a) and insert the following: graph (6)’’ and inserting ‘‘paragraph (9)’’; which was ordered to lie on the table; (a) DEFINITION OF CUSTODIAL BANK.— as follows: (iv) in paragraph (4)(C), by striking ‘‘para- (1) IN GENERAL.—In this section, the term graph (7)’’ and inserting ‘‘paragraph (10)’’; At the appropriate place, insert the fol- ‘‘custodial bank’’ means— (v) by redesignating paragraphs (5) through lowing: (A) any depository institution holding (12) as paragraphs (8) through (15), respec- SEC. ll. PROTECTIONS IN THE EVENT OF company that— tively; DEATH OR BANKRUPTCY. (i) is not directly or indirectly controlled (vi) by inserting after paragraph (4) the fol- (a) IN GENERAL.—Section 140 of the Truth by a depository institution holding company; lowing: in Lending Act (15 U.S.C. 1650) is amended— and ‘‘(5) DISCLOSURES BEFORE FIRST FULLY AM- (1) in subsection (a)— (ii) has consolidated assets under custody ORTIZED PAYMENT.—Not fewer than 30 days that are not less than 30 times the total con- (A) by redesignating paragraphs (1) and not more than 150 days before the first solidated assets of the depository institution through (8) as paragraphs (2) through (9), re- fully amortized payment on a postsecondary spectively; and holding company; and education loan is due from the borrower, the (B) by inserting before paragraph (2), as so (B) any company controlled directly or in- postsecondary educational lender shall dis- redesignated, the following: directly by a depository institution holding close to the borrower, clearly and conspicu- ‘‘(1) the term ‘cosigner’— company described in subparagraph (A). ously— ‘‘(A) means any individual who is liable for (2) CONTROL.—For purposes of paragraph ‘‘(A) the information described in— the obligation of another without compensa- (1), a company has control over a bank or ‘‘(i) paragraph (2)(A) (adjusted, as nec- tion, regardless of how designated in the con- over any company if the company has con- essary, for the rate of interest in effect on tract or instrument with respect to that ob- trol over the bank or other company under the date the first fully amortized payment ligation, other than an obligation under a section 2(a)(2) of the Bank Holding Company on a postsecondary education loan is due); private education loan extended to consoli- Act of 1956 (12 U.S.C. 1841(a)(2)). ‘‘(ii) subparagraphs (B) through (G) of date a consumer’s pre-existing private edu- cation loans; SA 2179. Mr. DURBIN (for himself, paragraph (2); ‘‘(B) includes any person the signature of Mr. REED, Ms. WARREN, Mrs. MURRAY, ‘‘(iii) paragraph (2)(H) (adjusted, as nec- essary, for the rate of interest in effect on which is requested as condition to grant Mr. BROWN, Mr. BLUMENTHAL, Ms. the date the first fully amortized payment credit or to forbear on collection; and BALDWIN, Ms. DUCKWORTH, Mr. WHITE- on a postsecondary education loan is due); ‘‘(C) does not include a spouse of an indi- HOUSE, Ms. HASSAN, Mr. VAN HOLLEN, vidual described in subparagraph (A), the sig- ‘‘(iv) paragraph (2)(K); and and Mr. MARKEY) submitted an amend- ‘‘(v) subparagraphs (O) and (P) of para- nature of whom is needed to perfect the secu- ment intended to be proposed to rity interest in a loan.’’; and graph (2); (2) by adding at the end the following: amendment SA 2151 proposed by Mr. ‘‘(B) the scheduled date upon which the ‘‘(g) ADDITIONAL PROTECTIONS RELATING TO CRAPO (for himself, Mr. DONNELLY, Ms. first fully amortized payment is due; BORROWER OR COSIGNER OF A PRIVATE EDU- HEITKAMP, Mr. TESTER, and Mr. WAR- ‘‘(C) the name of the lender and servicer, CATION LOAN.— NER) to the bill S. 2155, to promote eco- and the address to which communications ‘‘(1) PROHIBITION ON AUTOMATIC DEFAULT IN nomic growth, provide tailored regu- and payments should be sent including a CASE OF DEATH OR BANKRUPTCY OF NON-STU- latory relief, and enhance consumer telephone number and website where the bor- DENT OBLIGOR.—With respect to a private rower may obtain additional information; protections, and for other purposes; ‘‘(D) a description of alternative repay- education loan involving a student obligor which was ordered to lie on the table; and 1 or more cosigners, the creditor shall ment plans, including loan consolidation or not declare a default or accelerate the debt as follows: refinancing, and servicemember or veteran against the student obligor on the sole basis Beginning on page 188, strike line 5 and all benefits under the Servicemembers Civil Re- of a bankruptcy or death of a cosigner. that follows through line 20, on page 190, and lief Act (50 U.S.C. App. 501 et seq.) or other ‘‘(2) COSIGNER RELEASE IN CASE OF DEATH OF insert the following: Federal or State law related to postsec- BORROWER.— (a) IN GENERAL.—Section 128(e) of the ondary education loans; and ‘‘(A) RELEASE OF COSIGNER.—The holder of Truth in Lending Act (15 U.S.C. 1638(e)) is ‘‘(E) a statement that a Servicemember a private education loan, when notified of amended by adding at the end the following: and Veterans Liaison designated under para- the death of a student obligor, shall release ‘‘(12) REHABILITATION OF PRIVATE EDU- graph (16)(I) is available to answer inquiries within a reasonable timeframe any cosigner CATION LOANS.—If a borrower of a private about servicemember and veteran benefits from the obligations of the cosigner under education loan successfully and voluntarily related to postsecondary education loans, in- the private education loan. makes 9 payments within 20 days of the due cluding the toll-free telephone number to ‘‘(B) NOTIFICATION OF RELEASE.—A holder date during 10 consecutive months of contact the Liaison pursuant to paragraph or servicer of a private education loan, as ap- amounts owed on the private education loan, (16)(I). plicable, shall within a reasonable time- or otherwise brings the private education ‘‘(6) DISCLOSURES WHEN BORROWER IS 30 frame notify any cosigners for the private loan current after the loan is charged-off, DAYS DELINQUENT.—Not fewer than 5 days education loan if a cosigner is released from the loan shall be considered rehabilitated, after a borrower becomes 30 days delinquent the obligations of the cosigner for the pri- and the lender or servicer shall request that on a postsecondary education loan, the post- vate education loan under this paragraph. any consumer reporting agency to which the secondary educational lender shall disclose ‘‘(C) DESIGNATION OF INDIVIDUAL TO ACT ON charge-off was reported remove the delin- to the borrower, clearly and conspicuously— BEHALF OF THE BORROWER.—Any lender that quency that led to the charge-off and the ‘‘(A) the date on which the loan will be extends a private education loan shall pro- charge-off from the borrower’s credit his- charged-off (as defined in paragraph (16)(A)) vide the student obligor an option to des- tory.’’. or assigned to collections, including the con- ignate an individual to have the legal au- On page 191, strike lines 1 through 5 and in- sequences of such charge-off or assignment thority to act on behalf of the student obli- sert the following: to collections, if no payment is made; gor with respect to the private education (A) the implementation of paragraph (12) of ‘‘(B) the minimum payment that the bor- loan in the event of the death of the student section 128(e) of the Truth in Lending Act (15 rower must make to avoid the loan being obligor.’’. U.S.C. 1638(e)) (referred to in this paragraph charged off (as defined in paragraph (16)(A)) (b) APPLICABILITY.—The amendments made as ‘‘the provision’’), as added by subsection or assigned to collection, and the minimum by subsection (a) shall only apply to private (a); payment that the borrower must make to education loan agreements entered into on At the end, add the following: bring the loan current; or after the date that is 180 days after the TITLE VII—STUDENT PROTECTIONS ‘‘(C) a statement informing the borrower date of enactment of this Act. SEC. 701. STUDENT LOAN BORROWER BILL OF that a payment of less than the minimum RIGHTS. payment described in subparagraph (B) could SA 2178. Mr. CORKER (for himself (a) SHORT TITLE.—This section may be result in the loan being charged off (as de- and Mr. KENNEDY) submitted an cited as the ‘‘Student Loan Borrower Bill of fined in paragraph (16)(A)) or assigned to col- amendment intended to be proposed to Rights’’. lection; and

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‘‘(D) a statement that a Servicemember ‘‘(D) MODEL DISCLOSURE FORM FOR ALTER- that student loan servicer to receive commu- and Veterans Liaison designated under para- NATIVE REPAYMENT PLANS, FORBEARANCE, AND nications from borrowers but the written graph (16)(I) is available to answer inquiries DEFERMENT OPTIONS.—Not later than 2 years correspondence meets the requirements about servicemember and veteran benefits after the date of enactment of the Student under items (aa) and (bb) of subclause (I). related to postsecondary education loans, in- Loan Borrower Bill of Rights, the Director of ‘‘(bb) DUTY TO TRANSFER.—A student loan cluding the toll-free telephone number to the Bureau of Consumer Financial Protec- servicer shall, within a reasonable period of contact the Liaison pursuant to paragraph tion, in consultation with the Secretary of time, transfer a written correspondence of a (16)(I). Education, shall develop and issue model borrower received by the student loan ‘‘(7) DISCLOSURES WHEN BORROWER IS HAV- forms to allow borrowers to compare alter- servicer at a mailing address, facsimile num- ING DIFFICULTY MAKING PAYMENT OR IS 60 DAYS native repayment plans, forbearance, and ber, email address, or website address other DELINQUENT.— deferment options with the borrower’s exist- than the address or number designated by ‘‘(A) IN GENERAL.—Not fewer than 5 days ing repayment plan with respect to a post- that student loan servicer to receive commu- after a borrower notifies a postsecondary secondary education loan. Such forms shall nications from borrowers to the correct ad- educational lender that the borrower is hav- include the following: dress or appropriate office or other unit of ing difficulty making payment or a borrower ‘‘(i) The total amount to be paid over the the student loan servicer. becomes 60 days delinquent on a postsec- life of the loan. ‘‘(cc) DATE OF RECEIPT.—A written cor- ondary education loan, the postsecondary ‘‘(ii) The total amount in interest to be respondence of a borrower transferred in ac- educational lender shall— paid over the life of the loan. cordance with item (bb) shall be deemed to ‘‘(iii) The monthly payment amount. be received by the student loan servicer on ‘‘(i) complete a full review of the bor- ‘‘(iv) The expected pay-off date. the date on which the written correspond- rower’s postsecondary education loan and ‘‘(v) Related fees and costs. ence is transferred to the correct address or make a reasonable effort to obtain the infor- ‘‘(vi) Eligibility requirements, and how the appropriate office or other unit of the stu- mation necessary to determine— borrower can apply for the alternative repay- dent loan servicer. ‘‘(I) if the borrower is eligible for an alter- ment plan, forbearance, or deferment option. ‘‘(iv) SERVICER.—The term ‘servicer’ means native repayment plan, including loan con- ‘‘(vii) Any relevant consequences due to ac- the person responsible for the servicing of a solidation or refinancing; and tion or inaction, such as default, including postsecondary education loan, including any ‘‘(II) if the borrower is eligible for service- any actions that would result in the loss of agent of such person or the person who member or veteran benefits under the eligibility for alternative repayment plans, makes, owns, or holds a loan if such person Servicemembers Civil Relief Act (50 U.S.C. forbearance, or deferment options.’’; also services the loan. App. 501 et seq.) or other Federal or State (viii) in paragraph (11), as redesignated by ‘‘(v) SERVICING.—The term ‘servicing’ law related to postsecondary education clause (v), by striking ‘‘paragraph (7)’’ and means— loans; inserting ‘‘paragraph (10)’’; ‘‘(I) receiving any scheduled periodic pay- ‘‘(ii) provide the borrower, in writing, in (ix) by striking paragraph (13), as redesig- ments from a borrower pursuant to the simple and understandable terms, informa- nated by clause (v), and inserting the fol- terms of a postsecondary education loan; tion about alternative repayment plans and lowing: ‘‘(II) making the payments of principal and benefits for which the borrower is eligible, ‘‘(13) DEFINITIONS.—In this subsection— interest and such other payments with re- including all terms, conditions, and fees or ‘‘(A) the terms ‘covered educational insti- spect to the amounts received from the bor- costs associated with such repayment plan, tution’, ‘private educational lender’, and rower, as may be required pursuant to the pursuant to paragraph (8)(D); ‘private education loan’ have the same terms of the loan; and ‘‘(iii) allow the borrower not less than 30 meanings as in section 140; and ‘‘(III) performing other administrative days to apply for an alternative repayment ‘‘(B) the term ‘postsecondary education services with respect to the loan. plan or benefits, if eligible; and loan’ means ‘‘(B) SALE, TRANSFER, OR ASSIGNMENT.—If ‘‘(iv) notify the borrower that a Service- ‘‘(i) a private education loan; or the sale, other transfer, assignment, or member and Veterans Liaison designated ‘‘(ii) a loan made, insured, or guaranteed transfer of servicing obligations of a postsec- under paragraph (16)(I) is available to answer under part B, D, or E of title IV of the Higher ondary education loan results in a change in inquiries about servicemember and veteran Education Act of 1965 (20 U.S.C. 1071 et seq., the identity of the party to whom the bor- benefits related to postsecondary education 1087a et seq., and 1087aa et seq.).’’; rower must send subsequent payments or di- loans, including the toll-free telephone num- (x) in paragraph (14), as redesignated by rect any communications concerning the ber to contact the Liaison pursuant to para- clause (v), by striking ‘‘paragraph (5)’’ and loan— graph (16)(I). inserting ‘‘paragraph (8)’’; and ‘‘(i) the transferor shall— ‘‘(B) FORBEARANCE OR DEFERMENT.—If a (xi) by adding at the end the following: ‘‘(I) notify the borrower, in writing, in sim- borrower notifies the postsecondary edu- ‘‘(16) STUDENT LOAN BORROWER BILL OF ple and understandable terms, not fewer cational lender that a long-term alternative RIGHTS.— than 45 days before transferring a legally en- repayment plan is not appropriate, the post- ‘‘(A) DEFINITIONS.—In this paragraph: forceable right to receive payment from the secondary educational lender may comply ‘‘(i) BORROWER.—The term ‘borrower’ borrower on such loan, of— with this paragraph by providing the bor- means the person to whom a postsecondary ‘‘(aa) the sale or other transfer, assign- rower, in writing, in simple and understand- education loan is extended. ment, or transfer of servicing obligations; able terms, information about short-term op- ‘‘(ii) CHARGE OFF.—The term ‘charge off’ ‘‘(bb) the identity of the transferee; tions to address an anticipated short-term means charge to profit and loss, or subject to ‘‘(cc) the name and address of the party to difficulty in making payments, such as for- any similar action. whom subsequent payments or communica- bearance or deferment options, including all ‘‘(iii) QUALIFIED WRITTEN REQUEST.— tions must be sent; terms, conditions, and fees or costs associ- ‘‘(I) IN GENERAL.—The term ‘qualified writ- ‘‘(dd) the telephone numbers and websites ated with such options pursuant to para- ten request’ means a written correspondence of both the transferor and the transferee; graph (8)(D). of a borrower (other than notice on a pay- ‘‘(ee) the effective date of the sale, trans- ‘‘(C) NOTIFICATION PROCESS.— ment medium supplied by the student loan fer, or assignment; ‘‘(i) IN GENERAL.—Each postsecondary edu- servicer) transmitted by mail, facsimile, or ‘‘(ff) the date on which the transferor will cational lender shall establish a process, in electronically through an email address or stop accepting payment; and accordance subparagraph (A), for a borrower website designated by the student loan ‘‘(gg) the date on which the transferee will to notify the lender that— servicer to receive communications from begin accepting payment; and ‘‘(I) the borrower is having difficulty mak- borrowers that— ‘‘(II) forward any payment from a borrower ing payments on a postsecondary education ‘‘(aa) includes, or otherwise enables the with respect to such postsecondary edu- loan; and student loan servicer to identify, the name cation loan to the transferee, immediately ‘‘(II) a long-term alternative repayment and account of the borrower; and upon receiving such payment, during the 60- plan is not needed. ‘‘(bb) includes, to the extent applicable— day period beginning on the date on which ‘‘(ii) CONSUMER FINANCIAL PROTECTION BU- ‘‘(AA) sufficient detail regarding the infor- the transferor stops accepting payment of REAU REQUIREMENTS.—The Director of the mation sought by the borrower; or such postsecondary education loan; and Bureau of Consumer Financial Protection, in ‘‘(BB) a statement of the reasons for the ‘‘(ii) the transferee shall— consultation with the Secretary of Edu- belief of the borrower that there is an error ‘‘(I) notify the borrower, in writing, in sim- cation, shall promulgate rules establishing regarding the account of the borrower. ple and understandable terms, not fewer minimum standards for postsecondary edu- ‘‘(II) CORRESPONDENCE DELIVERED TO OTHER than 45 days before acquiring a legally en- cational lenders in carrying out the require- ADDRESSES.— forceable right to receive payment from the ments of this paragraph and a model form ‘‘(aa) IN GENERAL.—A written correspond- borrower on such loan, of— for borrowers to notify postsecondary edu- ence of a borrower is a qualified written re- ‘‘(aa) the sale or other transfer, assign- cational lenders of the information under quest if the written correspondence is trans- ment, or transfer of servicing obligations; this paragraph.’’; mitted to and received by a student loan ‘‘(bb) the identity of the transferor: (vii) in paragraph (8), as redesignated by servicer at a mailing address, facsimile num- ‘‘(cc) the name and address of the party to clause (v), by adding at the end the fol- ber, email address, or website address other whom subsequent payments or communica- lowing: than the address or number designated by tions must be sent;

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1596 CONGRESSIONAL RECORD — SENATE March 8, 2018 ‘‘(dd) the telephone numbers and websites creases due to such completion or failure); Consumer Financial Protection shall choose of both the transferor and the transferee; and the application method that best benefits ‘‘(ee) the effective date of the sale, trans- ‘‘(III) an increase in interest rate due to a the borrower and is compatible with existing fer, assignment, or transfer of servicing obli- provision included within the terms of a repayment options. gations; postsecondary education loan that provides ‘‘(F) PAYMENTS AND FEES.— ‘‘(ff) the date on which the transferor will for a lower interest rate based on the bor- ‘‘(i) PROHIBITION ON RECOMMENDING DE- stop accepting payment; and rower’s agreement to a prearranged plan FAULT.—A loan holder or student loan ‘‘(gg) the date on which the transferee will that authorizes recurring electronic funds servicer may not recommend or encourage begin accepting payment; transfers if— default or delinquency on an existing post- ‘‘(II) accept as on-time and may not impose ‘‘(aa) the borrower withdraws the bor- secondary education loan prior to and in any late fee or finance charge for any pay- rower’s authorization of the prearranged re- connection with the process of qualifying for ment from a borrower with respect to such curring electronic funds transfer plan; and or enrolling in an alternative repayment ar- ‘‘(bb) after withdrawal of the borrower’s postsecondary education loan that is for- rangement, including the origination of a authorization and prior to increasing the in- warded from the transferor during the 60-day new postsecondary education loan that refi- terest rate, the loan holder or student loan period beginning on the date on which the nances all or any portion of such existing transferor stops accepting payment, if the servicer has provided the borrower with clear and conspicuous disclosure of the impending loan or debt. transferor receives such payment on or be- ‘‘(ii) LATE FEES.— fore the applicable due date, including any change in borrower’s interest rate and a rea- sonable opportunity to reauthorize the pre- ‘‘(I) IN GENERAL.—A late fee may not be grace period; arranged electronic funds transfers plan. charged to a borrower for a postsecondary ‘‘(III) provide borrowers a simple, online ‘‘(E) APPLICATION OF PAYMENTS.— education loan under any of the following process for transferring existing electronic ‘‘(i) IN GENERAL.—Unless otherwise di- circumstances, either individually or in com- fund transfer authority; and rected by the borrower of a postsecondary bination: ‘‘(IV) honor any promotion or benefit of- education loan, upon receipt of a payment, ‘‘(aa) On a per-loan basis when a borrower fered to the borrower or advertised by the the servicer shall apply amounts first to the has multiple postsecondary education loans previous owner or transferor of such postsec- interest and fees owed on the payment due in a billing group. ondary education loan. date, and then to the principal balance of the ‘‘(bb) In an amount greater than 4 percent ‘‘(C) MATERIAL CHANGE IN MAILING ADDRESS postsecondary education loan bearing the of the amount of the payment past due. OR PROCEDURE FOR HANDLING PAYMENTS.—If a highest annual percentage rate, and then to ‘‘(cc) Before the end of the 15-day period servicer makes a change in the mailing ad- each successive interest and fees and then beginning on the date the payment is due. dress, office, or procedures for handling pay- principal balance bearing the next highest ‘‘(dd) More than once with respect to a sin- ments with respect to any postsecondary annual percentage rate, until the payment is gle late payment. education loan, and such change causes a exhausted. A borrower may instruct or ex- ‘‘(ee) The borrower fails to make a sin- delay in the crediting of the account of the pressly authorize the servicer to apply pay- gular, non-successive regularly-scheduled borrower made during the 60-day period fol- ments in a different manner. payment on the postsecondary education lowing the date on which such change took ‘‘(ii) APPLICATION OF EXCESS AMOUNTS.—Un- loan. effect, the servicer may not impose any late less otherwise directed by the borrower of a ‘‘(ff) The student loan servicer has failed to fee or finance charge for a late payment on postsecondary education loan, upon receipt adopt reasonable procedures designed to en- such postsecondary education loan. of a payment, the servicer shall apply sure that each billing statement required ‘‘(D) INTEREST RATE AND TERM CHANGES FOR amounts in excess of the minimum payment under subparagraph (K) is mailed or deliv- CERTAIN POST-SECONDARY EDUCATION LOANS.— amount first to the interest and fees owed on ered to the consumer not later than 21 days ‘‘(i) NOTIFICATION REQUIREMENTS.— the payment due date, and then to the prin- before the payment due date. ‘‘(I) IN GENERAL.—Except as provided in cipal balance of the postsecondary education ‘‘(iii) COORDINATION WITH SUBSEQUENT LATE clause (iii), a student loan servicer shall pro- loan balance bearing the highest annual per- FEES.—No late fee may be charged to a bor- vide written notice to a borrower of any ma- centage rate, and then to each successive in- rower for a postsecondary education loan re- terial change in the terms of the postsec- terest and fees and principal balance bearing lating to an insufficient payment if the pay- ondary education loan, including an increase the next highest annual percentage rate, ment is made on or before the due date of the in the interest rate, not later than 45 days until the payment is exhausted. A borrower payment, or within any applicable grace pe- before the effective date of the change or in- may instruct or expressly authorize the riod for the payment, if the insufficiency is crease. servicer to apply such excess payments in a attributable only to a late fee relating to an ‘‘(II) MATERIAL CHANGES IN TERMS.—The different manner. A borrower may also vol- earlier payment, and the payment is other- Bureau shall, by regulation, establish guide- untarily increase the periodic payment wise a full payment for the applicable period. lines for determining which changes in terms amount, including by increasing their recur- ‘‘(iv) PAYMENTS AT LOCAL BRANCHES.—If the are material under subclause (I). ring electronic payment, with the right to loan holder, in the case of a postsecondary ‘‘(ii) LIMITS ON INTEREST RATE AND FEE IN- return to their original amortization sched- education loan account referred to in sub- CREASES APPLICABLE TO OUTSTANDING BAL- ule at any time. Servicers shall provide a paragraph (A), is a financial institution that ANCE.—Except as provided in clause (iii), a simple, online method to allow borrowers to loan holder or student loan servicer may not make voluntary one-time additional pay- maintains a branch or office at which pay- increase the interest rate or other fee appli- ments, voluntarily increase the amount of ments on any such account are accepted cable to an outstanding balance on a postsec- their periodic payment, and return to their from the borrower in person, the date on ondary education loan. original amortization schedule. which the borrower makes a payment on the ‘‘(iii) EXCEPTIONS.—The requirements ‘‘(iii) APPLY PAYMENT ON DATE RECEIVED.— account at such branch or office shall be con- under clauses (i) and (ii) shall not apply to— Unless otherwise directed by the borrower of sidered to be the date on which the payment ‘‘(I) an increase in any applicable variable a postsecondary education loan, a servicer is made for purposes of determining whether interest rate incorporated in the terms of a shall apply payments to a borrower’s ac- a late fee may be imposed due to the failure postsecondary education loan that provides count on the date the payment is received. of the borrower to make payment on or be- for changes in the interest rate according to ‘‘(iv) PROMULGATION OF RULES.—The Direc- fore the due date for such payment. operation of an index that is not under the tor of the Bureau of Consumer Financial ‘‘(G) BORROWER INQUIRIES.— control of the loan holder or student loan Protection, in consultation with the Sec- ‘‘(i) DUTY OF STUDENT LOAN SERVICERS TO servicer and is published for viewing by the retary of Education, may promulgate rules RESPOND TO BORROWER INQUIRIES.— general public; for the application of postsecondary edu- ‘‘(I) NOTICE OF RECEIPT OF REQUEST.—If a ‘‘(II) an increase in interest rate due to the cation loan payments that— borrower of a postsecondary education loan completion of a workout or temporary hard- ‘‘(I) implements the requirements in this submits a qualified written request to the ship arrangement by the borrower or the section; student loan servicer for information relat- failure of the borrower to comply with the ‘‘(II) minimizes the amount of fees and in- ing to the student loan servicing of the post- terms of a workout or temporary hardship terest incurred by the borrower and the total secondary education loan, the student loan arrangement if— loan amount paid by the borrower; servicer shall provide a written response ac- ‘‘(aa) the interest rate applicable to a cat- ‘‘(III) minimizes delinquencies, assign- knowledging receipt of the qualified written egory of transactions following any such in- ments to collection, and charge-offs; request within 5 business days unless any ac- crease does not exceed the rate or fee that ‘‘(IV) requires servicers to apply payments tion requested by the borrower is taken applied to that category of transactions on the date received; and within such period. prior to commencement of the arrangement; ‘‘(V) allows the borrower to instruct the ‘‘(II) ACTION WITH RESPECT TO INQUIRY.—Not and servicer to apply payments in a manner pre- later than 30 business days after the receipt ‘‘(bb) the loan holder or student loan ferred by the borrower, including excess pay- from a borrower of a qualified written re- servicer has provided the borrower, prior to ments. quest under subclause (I) and, if applicable, the commencement of such arrangement, ‘‘(v) METHOD THAT BEST BENEFITS BOR- before taking any action with respect to the with clear and conspicuous disclosure of the ROWER.—In promulgating the rules under qualified written request of the borrower, terms of the arrangement (including any in- clause (iv), the Director of the Bureau of the student loan servicer shall—

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1597 ‘‘(aa) make appropriate corrections in the the repayment of the postsecondary edu- mit to the borrower, for each billing cycle at account of the borrower, including the cred- cation loan because of hardship; and the end of which there is an outstanding bal- iting of any late fees, and transmit to the ‘‘(vii) any borrower or segment of bor- ance in that account, a statement that in- borrower a written notification of such cor- rowers determined by the Director of the Bu- cludes— rection (which shall include the name and reau to be at risk of default. ‘‘(I) the outstanding balance in the account toll-free or collect-call telephone number of ‘‘(I) SERVICEMEMBERS, VETERANS, AND POST- at the beginning of the billing cycle; a representative of the student loan servicer SECONDARY EDUCATION LOANS.— ‘‘(II) the total amount credited to the ac- who can provide assistance to the borrower); ‘‘(i) SERVICEMEMBER AND VETERANS LIAI- count during the billing cycle; ‘‘(bb) after conducting an investigation, SON.—Each servicer shall designate an em- ‘‘(III) the amount of any fee added to the provide the borrower with a written expla- ployee to act as the servicemember and vet- account during the billing cycle, itemized to nation or clarification that includes— erans liaison who is responsible for answer- show the amounts, if any, due to the applica- ‘‘(AA) to the extent applicable, a state- ing inquiries from servicemembers and vet- tion of an increased interest rate, and the ment of the reasons for which the student erans, and is specially trained on service- amount, if any, imposed as a minimum or loan servicer believes the account of the bor- member and veteran benefits under the fixed charge; rower is correct as determined by the stu- Servicemembers Civil Relief Act (50 U.S.C. ‘‘(IV) the balance on which the fee de- dent loan servicer; and App. 501 et seq.) and other Federal or State scribed in subclause (III) was computed and a ‘‘(BB) the name and toll-free or collect-call laws related to postsecondary education statement of how the balance was deter- telephone number of an individual employed loans. mined; by, or the office or department of, the stu- ‘‘(ii) TOLL-FREE TELEPHONE NUMBER.—Each ‘‘(V) whether the balance described in sub- dent loan servicer who can provide assist- servicer shall maintain a toll-free telephone clause (IV) was determined without first de- ance to the borrower; or number that shall— ducting all payments and other credits dur- ‘‘(cc) after conducting an investigation, ‘‘(I) connect directly to the servicemember ing the billing cycle, and the amount of any provide the borrower with a written expla- and veterans liaison designated under clause such payments and credits; nation or clarification that includes— (i); and ‘‘(VI) the outstanding balance in the ac- ‘‘(AA) information requested by the bor- ‘‘(II) be made available on the primary count at the end of the billing cycle; rower or explanation of why the information internet website of the servicer and on requested is unavailable or cannot be ob- monthly billing statements. ‘‘(VII) the date by which, or the period within which, payment must be made to tained by the student loan servicer; and ‘‘(iii) PROHIBITION ON CHARGE OFFS AND DE- avoid late fees, if any; ‘‘(BB) the name and toll-free or collect-call FAULT.—A lender or servicer may not charge telephone number of an individual employed off or report a postsecondary education loan ‘‘(VIII) the address of the student loan by, or the office or department of, the stu- as delinquent, assigned to collection (inter- servicer to which the borrower may direct dent loan servicer who can provide assist- nally or by referral to a third party), in de- billing inquiries; ance to the borrower. fault, or charged-off to a credit reporting ‘‘(IX) the amount of any payments or other ‘‘(III) LIMITED EXTENSION OF RESPONSE agency if the borrower is on active duty in credits during the billing cycle that was ap- TIME.— the Armed Forces (as defined in section plied to pay down principal, and the amount ‘‘(aa) IN GENERAL.—There may be 1 exten- 101(d)(1) of title 10, United States Code) serv- applied to interest; sion of the 30-day period described in sub- ing in a combat zone (as designated by the ‘‘(X) in the case of a billing group, the allo- clause (II) of not more than 15 days if, before President under section 112(c) of the Internal cation of any payments or other credits dur- the end of such 30-day period, the student Revenue Code of 1986). ing the billing cycle to each of the postsec- loan servicer notifies the borrower of the ex- ‘‘(iv) ADDITIONAL LIAISONS.—The Secretary ondary education loans in the billing group; tension and the reasons for the delay in re- shall determine additional entities with ‘‘(XI) information on how to file a com- sponding. whom borrowers interact, including guar- plaint with the Bureau and with the ombuds- ‘‘(bb) REPORTS TO BUREAU.—Each student anty agencies, that shall designate an em- man designated pursuant to section 1035 of loan servicer shall, on an annual basis, re- ployee to act as the servicemember and vet- the Dodd-Frank Wall Street Reform and port to the Bureau the aggregate number of erans liaison who is responsible for answer- Consumer Protection Act (12 U.S.C. 5535); extensions sought by the student loan ing inquiries from servicemembers and vet- and servicer under item (aa). erans and is specially trained on ‘‘(XII) any other information determined ‘‘(ii) PROTECTION OF CREDIT INFORMATION.— servicemembers and veteran benefits and op- by the Bureau, which may include informa- During the 60-day period beginning on the tion under the Servicemembers Civil Relief tion in the Bureau’s Student Loan Payback date on which a student loan servicer re- Act (50 U.S.C. App. 501 et seq.). Playbook. ceives a qualified written request from a bor- ‘‘(J) BORROWER’S LOAN HISTORY.— ‘‘(ii) DISCLOSURE OF PAYMENT DEADLINES.— rower relating to a dispute regarding pay- ‘‘(i) IN GENERAL.—A servicer shall make In the case of a postsecondary education ments by the borrower, a student loan available through a secure website, or in loan account under which a late fee or servicer may not provide negative credit in- writing upon request, the loan history of charge may be imposed due to the failure of formation to any consumer reporting agency each borrower for each postsecondary edu- the borrower to make payment on or before (as defined in section 603 of the Fair Credit cation loan, separately designating— the due date for such payment, the billing Reporting Act (15 U.S.C. 1681a)) relating to ‘‘(I) payment history; statement required under clause (i) with re- the subject of the qualified written request ‘‘(II) loan history, including any spect to the account shall include, in a con- or to such period, including any information forbearances, deferrals, delinquencies, as- spicuous location on the billing statement, relating to a late payment or payment owed signment to collection, and charge offs; the date on which the payment is due or, if by the borrower on the borrower’s postsec- ‘‘(III) annual percentage rate history; different, the date on which a late fee will be ondary education loan. ‘‘(IV) key loan terms, including applica- charged, together with the amount of the ‘‘(H) SINGLE POINT OF CONTACT FOR CERTAIN tion of payments to interest, principal, and late fee to be imposed if payment is made BORROWERS.—A student loan servicer shall fees, origination date, principal, capitalized after that date. designate an office or other unit of the stu- interest, annual percentage rate, including ‘‘(L) ARBITRATION.— dent loan servicer to act as a point of con- any cap, loan term, and any contractual in- ‘‘(i) WAIVER OF RIGHTS AND REMEDIES.—Any tact regarding postsecondary education centives; and rights and remedies available to borrowers loans for borrowers considered to be at risk ‘‘(V) balance due to pay off the outstanding against servicers may not be waived by any of default, including— balance. agreement, policy, or form, including by a ‘‘(i) any borrower who requests informa- ‘‘(ii) ORIGINAL DOCUMENTATION.—A servicer predispute arbitration agreement. tion related to options to reduce or suspend shall make available to the borrower, if re- ‘‘(ii) PREDISPUTE ARBITRATION AGREE- his or her monthly payment, or otherwise in- quested, at no charge, copies of the original MENTS.—No predispute arbitration agree- dicates that he or she is experiencing or is loan documents and the promissory note for ment shall be valid or enforceable by a about to experience financial hardship or each postsecondary education loan. servicer, including as a third-party bene- distress; ‘‘(iii) PROMPT DELIVERY.—A loan holder or ficiary or by estoppel, if the agreement re- ‘‘(ii) any borrower who becomes 60 calendar a student loan servicer that has received a quires arbitration of a dispute with respect days delinquent on any loan; request by a borrower or a person authorized to a postsecondary education loan. This ‘‘(iii) any borrower who has not completed by a borrower for the information described clause applies to predispute arbitration the program of study for which the borrower in clause (i) shall provide such information agreements entered into before the date of received the loan; to the borrower or person authorized by the enactment of the Student Loan Borrower ‘‘(iv) any borrower who is enrolled in dis- borrower not later than 5 business days after Bill of Rights, as well as on and after such cretionary forbearance for more than 9 receiving such request. date of enactment, if the violation that is months of the previous 12 months; ‘‘(K) ADDITIONAL SERVICING STANDARDS.— the subject of the dispute occurred on or ‘‘(v) any borrower who has rehabilitated or ‘‘(i) STATEMENT REQUIRED WITH EACH BILL- after such date of enactment. consolidated one or more student loans out ING CYCLE.—A student loan servicer for each ‘‘(M) ENFORCEMENT.—The provisions of this of default within the prior 12 months; borrower’s account that is being serviced by paragraph shall be enforced by the agencies ‘‘(vi) a borrower under a private education that student loan servicer and that includes specified in subsections (a) through (d) of loan who is seeking to modify the terms of a postsecondary education loan shall trans- section 108, in the manner set forth in that

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1598 CONGRESSIONAL RECORD — SENATE March 8, 2018 section or under any other applicable au- (C) by adding at the end the following: graph (1) is unable to determine the family thorities available to such agencies by law, ‘‘(14) a statement that— size of a consumer, that person shall pre- and by State Attorneys General. ‘‘(A) the borrower may be entitled to serv- sume that the family size of the consumer is ‘‘(N) PREEMPTION.—Nothing in this para- icemember and veteran benefits under the 3 individuals. graph may be construed to preempt any pro- Servicemembers Civil Relief Act (50 U.S.C. ‘‘(c) COMMUNICATIONS.—Any communica- vision of State law regarding postsecondary App. 501 et seq.) and other Federal or State tion by a debt collector described in sub- education loans where the State law provides laws; and section (b)(1) that is for the purpose of seiz- stronger consumer protections. ‘‘(B) a Servicemember and Veterans Liai- ing income of a consumer for debt that re- ‘‘(O) CIVIL LIABILITY.—A servicer that fails son designated under section 128(e)(16)(I)(i) of lates an education loan shall be considered— to comply with any requirement imposed the Truth in Lending Act (15 U.S.C. ‘‘(1) an attempt to collect a debt; and under this paragraph shall be deemed a cred- 1638(e)(16)(I)(i)) is available to answer inquir- ‘‘(2) conduct in connection with the collec- itor that has failed to comply with a require- ies about servicemember and veteran bene- tion of a debt for the purposes of this title.’’. ment under this chapter for purposes of li- fits, including the toll-free telephone number SEC. 703. IMPROVED CONSUMER PROTECTIONS ability under section 130 and such servicer to contact the Liaison pursuant to such sec- FOR PRIVATE EDUCATION LOANS. shall be subject to the liability provisions tion.’’; and Section 128(e) of the Truth in Lending Act under such section, including the provisions (2) in subsection (e)— (15 U.S.C. 1638(e)), as amended by this Act, is under paragraphs (1), (2)(A)(i), (2)(B), and (3) (A) in paragraph (2), by adding at the end further amended— of section 130(a). the following: (1) by adding at the end the following: ‘‘(17) DISCHARGE OF PRIVATE EDUCATION ‘‘(P) ELIGIBILITY FOR DISCHARGE.—The Di- ‘‘(D) A statement that— LOANS IN THE EVENT OF DEATH OR DISABILITY rector of the Bureau of Consumer Financial ‘‘(i) the borrower may be entitled to serv- OF THE BORROWER.—Each private education Protection, in consultation with the Sec- icemember and veteran benefits under the loan shall include terms that provide that retary of Education, shall promulgate rules Servicemembers Civil Relief Act (50 U.S.C. the liability to repay the loan shall be can- requiring lenders and servicers of loans de- App. 501 et seq.) and other Federal or State celled— scribed in paragraph (13)(B)(ii) to— laws; and ‘‘(A) upon the death of the borrower; ‘‘(i) identify and contact borrowers who ‘‘(ii) a Servicemember and Veterans Liai- ‘‘(B) if the borrower becomes permanently may be eligible for student loan discharge by son designated under section 128(e)(16)(I)(i) of and totally disabled, as determined under the Secretary; the Truth in Lending Act (15 U.S.C. paragraph (1) or (3) of section 437(a) of the ‘‘(ii) provide the borrower, in writing, in 1638(e)(16)(I)(i)) is available to answer inquir- simple and understandable terms, informa- Higher Education Act of 1965 (20 U.S.C. ies about servicemember and veteran bene- 1087(a)) and the regulations promulgated by tion about obtaining such discharge; and fits, including the toll-free telephone number ‘‘(iii) create a streamlined process for eligi- the Secretary of Education under that sec- to contact the Liaison pursuant to such sec- tion; and ble borrowers to apply for and receive such tion.’’; and discharge. ‘‘(C) if the Secretary of Veterans Affairs or (B) in paragraph (3), by adding at the end the Secretary of Defense determines that the ‘‘(Q) STUDENT LOAN SERVICER REQUIRE- the following: MENTS.—A student loan servicer may not— borrower is unemployable due to a service- ‘‘(F) A statement that— connected condition or disability, in accord- ‘‘(i) charge a fee for responding to a quali- ‘‘(i) the borrower may be entitled to serv- fied written request under this chapter; ance with the requirements of section icemember and veteran benefits under the 437(a)(2) of that Act and the regulations pro- ‘‘(ii) fail to take timely action to respond Servicemembers Civil Relief Act (50 U.S.C. to a qualified written request from a bor- mulgated by the Secretary of Education App. 501 et seq.) and other Federal or State under that section; and rower to correct an error relating to an allo- laws; and cation of payment or the payoff amount of ‘‘(18) TERMS FOR CO-BORROWERS.—Each pri- ‘‘(ii) a Servicemember and Veterans Liai- vate education loan shall include terms that the postsecondary education loan; son designated under section 128(e)(16)(I)(i) of ‘‘(iii) fail to take reasonable steps to avail clearly define the requirements to release a the Truth in Lending Act (15 U.S.C. co-borrower from the obligation. the borrower of all possible alternative re- 1638(e)(16)(I)(i)) is available to answer inquir- payment arrangements to avoid default; ‘‘(19) PROHIBITION OF ACCELERATION OF PAY- ies about servicemember and veteran bene- MENTS ON PRIVATE EDUCATION LOANS.— ‘‘(iv) fail to perform the obligations re- fits, including the toll-free telephone number quired under title IV of the Higher Edu- ‘‘(A) IN GENERAL.—Except as provided in to contact the Liaison pursuant to such sec- subparagraph (B), a private education loan cation Act of 1965 (20 U.S.C. 1070 et seq.); tion.’’. ‘‘(v) fail to respond within 10 business days executed after the date of enactment of this to a request from a borrower to provide the SEC. 702. WAGE GARNISHMENT. paragraph may not include a provision that name, address, and other relevant contact The Fair Debt Collection Practices Act (15 permits the loan holder or student loan information of the loan holder of the bor- U.S.C. 1692 et seq.) is amended by inserting servicer to accelerate, in whole or in part, rower’s postsecondary education loan or, for after section 812 (15 U.S.C. 1692j) the fol- payments on the private education loan. a Federal Direct Loan or a Federal Perkins lowing: ‘‘(B) ACCELERATION CAUSED BY A PAYMENT Loan, the Secretary of Education or the in- ‘‘SEC. 812A. LIMITS ON SEIZURES OF INCOME FOR DEFAULT.—A private education loan may in- stitution of higher education who made the DEBT RELATING TO EDUCATION clude a provision that permits acceleration loan, respectively; LOANS. of the loan in cases of payment default. ‘‘(vi) fail to comply with any applicable re- ‘‘(a) DEFINITIONS.—In this section— ‘‘(20) PROHIBITION ON DENIAL OF CREDIT DUE quirement of the Servicemembers Civil Re- ‘‘(1) the term ‘adjusted gross income’ has TO ELIGIBILITY FOR PROTECTION UNDER lief Act (50 U.S.C. App. 501 et seq.); the meaning given the term in section 62 of SERVICEMEMBERS CIVIL RELIEF ACT.—A pri- ‘‘(vii) fail to comply with any other obliga- the Internal Revenue Code of 1986; and vate educational lender may not deny or tion that the Bureau, by regulation, has de- ‘‘(2) the term ‘poverty line’ means the pov- refuse credit to an individual who is entitled termined to be appropriate to carry out the erty line (as defined by the Office of Manage- to any right or protection provided under the consumer protection purposes of this chap- ment and Budget and revised annually in ac- Servicemembers Civil Relief Act (50 U.S.C. ter; or cordance with section 673(2) of the Commu- App. 501 et seq.) or subject, solely by reason ‘‘(viii) fail to perform other standard nity Services Block Grant Act (42 U.S.C. of such entitlement, such individual to any servicer’s duties.’’; and 9902(2)) applicable to a family of the size in- other action described in paragraphs (1) (B) by adding at the end the following: volved. through (6) of section 108 of such Act.’’; ‘‘(g) INFORMATION TO BE AVAILABLE AT NO ‘‘(b) LIMITATION ON COLLECTION.— (2) in paragraph (1)— CHARGE.—The information required to be dis- ‘‘(1) IN GENERAL.—Notwithstanding any (A) by striking subparagraph (D) and in- closed under this section shall be made other provision of law, a debt collector that serting the following: available at no charge to the borrower.’’; and is engaged in the collection of debts relating ‘‘(D) requirements for a co-borrower, in- (2) in section 130(a)— to education loans may not take any action cluding— (A) in paragraph (3), by striking ‘‘128(e)(7)’’ to cause, or seek to cause, the collection of ‘‘(i) any changes in the applicable interest and inserting ‘‘128(e)(10)’’; and such a debt that is taken from the wages, rates without a co-borrower; and (B) in the flush matter at the end, by strik- Federal benefits, or other amounts due to a ‘‘(ii) any conditions the borrower is re- ing ‘‘or paragraph (4)(C), (6), (7), or (8) of sec- consumer through garnishment, deduction, quired meet in order to release a co-borrower tion 128(e),’’ and inserting ‘‘or paragraph offset, or seizure in an amount that is more from the private education loan obligation;’’; (4)(C), (9), (10), or (11) of section 128(e),’’. than the amount described in paragraph (2). (B) by redesignating subparagraphs (O), (c) STUDENT LOAN INFORMATION BY ELIGI- ‘‘(2) CALCULATION.—The amount described (P), (Q), and (R) as subparagraphs (P), (Q), BLE LENDERS.—Section 433 of the Higher in this paragraph is the quotient obtained by (R), and (S), respectively; and Education Act of 1965 (20 U.S.C. 1083) is dividing— (C) by inserting after subparagraph (N) the amended— ‘‘(A) 10 percent of the amount by which the following: (1) in subsection (b)— adjusted gross income of the consumer ex- ‘‘(O) in the case of a refinancing of edu- (A) in paragraph (12), by striking ‘‘and’’ ceeds 185 percent of the poverty line; by cation loans that include a Federal student after the semicolon; ‘‘(B) 12. loan made, insured, or guaranteed under (B) in paragraph (13), by striking the pe- ‘‘(3) PRESUMPTION.—For purposes of this title IV of the Higher Education Act of 1965 riod at the end and inserting ‘‘; and’’; and section, if a debt collector described in para- (20 U.S.C. 1070 et seq.)—

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1599 ‘‘(i) a list containing each loan to be refi- mined by the Director of the Bureau of Con- ‘‘(aa) the cost of attendance at the institu- nanced, which shall identify whether the sumer Financial Protection.’’; and tion; and loan is a private education loan or a Federal (B) by adding at the end the following: ‘‘(bb) the student’s estimated financial as- student loan made, insured, or guaranteed ‘‘(21) PROVISION OF INFORMATION.— sistance received under this title and other under title IV of the Higher Education Act of ‘‘(A) PROVISION OF INFORMATION TO STU- assistance known to the institution, as ap- 1965 (20 U.S.C. 1070 et seq.); and DENTS.— plicable; ‘‘(ii) benefits that the borrower may be for- ‘‘(i) LOAN STATEMENT.—A creditor that ‘‘(ii) notify the creditor that the institu- feiting, including income-driven repayment issues any funds with respect to an extension tion has received the request for certifi- options, opportunities for loan forgiveness, of credit described in this subsection shall cation and will need additional time to com- forbearance or deferment options, interest send loan statements, where such loan is to ply with the certification request; or subsidies, and tax benefits;’’; and be used for a student, to borrowers of such ‘‘(iii) provide notice to the private edu- (3) in paragraph (2)— funds not less than once every 3 months dur- cational lender of the institution’s refusal to (A) by redesignating subparagraphs (O) and ing the time that such student is enrolled at certify the private education loan under sub- (P) as subparagraphs (P) and (Q), respec- an institution of higher education. paragraph (D). tively; and ‘‘(ii) CONTENTS OF LOAN STATEMENT.—Each ‘‘(B) With respect to a certification request (B) by inserting after subparagraph (N) the statement described in clause (i) shall— described in subparagraph (A), and prior to following: ‘‘(I) report the borrower’s total remaining providing such certification under subpara- ‘‘(O) in the case of a refinancing of edu- debt to the creditor, including accrued but graph (A)(i) or providing notice of the refusal cation loans that include a Federal student unpaid interest and capitalized interest; to provide certification under subparagraph loan made, insured, or guaranteed under ‘‘(II) report any debt increases since the (A)(iii), the institution shall— title IV of the Higher Education Act of 1965 last statement; and ‘‘(i) determine whether the student who (20 U.S.C. 1070 et seq.)— ‘‘(III) list the current interest rate for each initiated the application for the private edu- ‘‘(i) a list containing each loan to be refi- loan. cation loan, or on whose behalf the applica- nanced, which shall identify whether the ‘‘(B) NOTIFICATION OF LOANS DISBURSED tion was initiated, has applied for and ex- loan is a private education loan or a Federal WITHOUT CERTIFICATION.—On or before the hausted the Federal financial assistance student loan made, insured, or guaranteed date a creditor issues any funds with respect available to such student under this title and under title IV of the Higher Education Act of to an extension of credit described in this inform the student accordingly; and 1965 (20 U.S.C. 1070 et seq.); and subsection, the creditor shall notify the rel- ‘‘(ii) provide the borrower whose loan ap- ‘‘(ii) benefits that the borrower may be for- evant institution of higher education, in plication has prompted the certification re- feiting, including income-driven repayment writing, of the amount of the extension of quest by a private education lender, as de- options, opportunities for loan forgiveness, credit and the student on whose behalf credit scribed in subparagraph (A)(i), with the fol- forbearance or deferment options, interest is extended. The form of such written notifi- lowing information and disclosures: subsidies, and tax benefits;’’. cation shall be subject to the regulations of ‘‘(I) The availability of, and the borrower’s the Bureau. potential eligibility for, Federal financial as- SEC. 704. KNOW BEFORE YOU OWE. ‘‘(C) ANNUAL REPORT.—A creditor that sistance under this title, including disclosing (a) SHORT TITLE.—This section may be issues funds with respect to an extension of the terms, conditions, interest rates, and re- cited as the ‘‘Know Before You Owe Private credit described in this subsection shall pre- payment options and programs of Federal Education Loan Act’’. pare and submit an annual report to the Bu- student loans. (b) AMENDMENTS TO THE TRUTH IN LENDING reau containing the required information ‘‘(II) The borrower’s ability to select a pri- ACT.— about private student loans to be determined vate educational lender of the borrower’s (1) IN GENERAL.—Section 128(e) of the Truth by the Bureau, in consultation with the Sec- choice. in Lending Act (15 U.S.C. 1638(e)), as amend- retary of Education.’’. ‘‘(III) The impact of a proposed private ed by this Act, is further amended— (2) DEFINITION OF PRIVATE EDUCATION education loan on the borrower’s potential (A) by striking paragraph (3) and inserting LOAN.—Section 140(a)(7)(A) of the Truth in eligibility for other financial assistance, in- the following: Lending Act (15 U.S.C. 1650(a)(7)(A)) is cluding Federal financial assistance under ‘‘(3) INSTITUTIONAL CERTIFICATION RE- amended— this title. QUIRED.— (A) by redesignating clause (ii) as clause ‘‘(IV) The borrower’s right to accept or re- ‘‘(A) IN GENERAL.—Except as provided in (iii); ject a private education loan within the 30- subparagraph (B), before a creditor may (B) in clause (i), by striking ‘‘and’’ after day period following a private educational issue any funds with respect to an extension the semicolon; and lender’s approval of a borrower’s application of credit described in this subsection, the (C) by adding after clause (i) the following: and about a borrower’s 3-day right to cancel creditor shall obtain from the relevant insti- ‘‘(ii) is not made, insured, or guaranteed period. tution of higher education where such loan is under title VII or title VIII of the Public ‘‘(C) For purposes of this paragraph, the to be used for a student, such institution’s Health Service Act (42 U.S.C. 292 et seq. and terms ‘private educational lender’ and ‘pri- certification of— 296 et seq.); and’’. vate education loan’ have the meanings ‘‘(i) the enrollment status of the student; (3) REGULATIONS.—Not later than 365 days given such terms in section 140 of the Truth ‘‘(ii) the student’s cost of attendance at after the date of enactment of this section, in Lending Act (15 U.S.C. 1650). the institution as determined by the institu- the Bureau of Consumer Financial Protec- ‘‘(D)(i) An institution shall not provide a tion under part F of title IV of the Higher tion shall issue regulations in final form to certification with respect to a private edu- Education Act of 1965; and implement paragraphs (3) and (21) of section cation loan under this paragraph unless the ‘‘(iii) the difference between— 128(e) of the Truth in Lending Act (15 U.S.C. private education loan includes terms that ‘‘(I) such cost of attendance; and 1638(e)), as amended by paragraph (1). Such provide— ‘‘(II) the student’s estimated financial as- regulations shall become effective not later ‘‘(I) the borrower alternative repayment sistance, including such assistance received than 6 months after their date of issuance. plans, including loan consolidation or refi- under title IV of the Higher Education Act of (c) AMENDMENTS TO THE HIGHER EDUCATION nancing; and 1965 and other financial assistance known to ACT OF 1965.— ‘‘(II) that the liability to repay the loan the institution, as applicable. (1) PROGRAM PARTICIPATION AGREEMENTS.— shall be cancelled upon the death or dis- ‘‘(B) EXCEPTION.—Notwithstanding sub- Section 487(a) of the Higher Education Act of ability of the borrower or co-borrower. paragraph (A), a creditor may issue funds, 1965 (20 U.S.C. 1094(a)) is amended by striking ‘‘(ii) In this paragraph, the term ‘dis- not to exceed the amount described in sub- paragraph (28) and inserting the following: ability’ means a permanent and total dis- paragraph (A)(iii), with respect to an exten- ‘‘(28)(A) Upon the request of a private edu- ability, as determined in accordance with sion of credit described in this subsection cational lender, acting in connection with an the regulations of the Secretary of Edu- without obtaining from the relevant institu- application initiated by a borrower for a pri- cation, or a determination by the Secretary tion of higher education such institution’s vate education loan in accordance with sec- of Veterans Affairs that the borrower is un- certification if such institution fails to pro- tion 128(e)(3) of the Truth in Lending Act, employable due to a service connected-dis- vide within 15 business days of the creditor’s the institution shall, not later than 15 days ability.’’. request for such certification— after the date of receipt of the request— (2) EFFECTIVE DATE.—The amendment ‘‘(i) notification of the institution’s refusal ‘‘(i) provide such certification to such pri- made by paragraph (1) shall take effect on to certify the request; or vate educational lender— the effective date of the regulations de- ‘‘(ii) notification that the institution has ‘‘(I) that the student who initiated the ap- scribed in subsection (b)(3). received the request for certification and plication for the private education loan, or (3) PREFERRED LENDER ARRANGEMENT.— will need additional time to comply with the on whose behalf the application was initi- Section 151(8)(A)(ii) of the Higher Education certification request. ated, is enrolled or is scheduled to enroll at Act of 1965 (20 U.S.C. 1019(8)(A)(ii)) is amend- ‘‘(C) LOANS DISBURSED WITHOUT CERTIFI- the institution; ed by inserting ‘‘certifying,’’ after ‘‘pro- CATION.—If a creditor issues funds without ‘‘(II) of such student’s cost of attendance moting,’’. obtaining a certification, as described in sub- at the institution as determined under part (d) REPORT.—Not later than 24 months paragraph (B), such creditor shall report the F of this title; and after the issuance of regulations under sub- issuance of such funds in a manner deter- ‘‘(III) of the difference between— section (b)(3), the Director of the Bureau of

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Consumer Financial Protection and the Sec- (4) in subsection (c)— ‘‘(c) SERVICE-CONNECTED DEFINED.—In this retary of Education shall jointly submit to (A) in the matter preceding paragraph (1), section, the term ‘service-connected’ has the Congress a report on the compliance of insti- by striking ‘‘subsection’’ and inserting ‘‘sec- meaning given such term in section 101 of tutions of higher education and private edu- tion’’; title 38, United States Code.’’. cational lenders with section 128(e)(3) of the (B) in paragraph (1), by striking ‘‘private’’; (b) CLERICAL AMENDMENT.—The table of Truth in Lending Act (15 U.S.C. 1638(e)), as (C) by striking paragraph (2) and inserting contents of such Act is amended by inserting amended by subsection (b), and section the following: after the item relating to section 208 the fol- 487(a)(28) of the Higher Education Act of 1965 ‘‘(2) coordinate with the unit of the Bureau lowing new items: (20 U.S.C. 1094(a)), as amended by subsection established under section 1013(b)(3), in order ‘‘Sec. 209. Continual monitoring by private (c). Such report shall include information to monitor complaints by education loan educational lenders of status of about the degree to which specific institu- borrowers and responses to those complaints servicemembers. tions utilize certifications in effectively en- by the Bureau or other appropriate Federal ‘‘Sec. 210. Forgiveness of student debt.’’. couraging the exhaustion of Federal student or State agency;’’; and loan eligibility and lowering student private (D) in paragraph (3), by striking ‘‘private’’; SA 2180. Mrs. MURRAY (for herself, education loan debt. (5) in subsection (d)— Ms. COLLINS, Ms. HASSAN, and Mrs. SEC. 705. BANKRUPTCY PROTECTIONS. (A) in paragraph (2)— SHAHEEN) submitted an amendment in- (a) EXCEPTIONS TO DISCHARGE.—Section (i) by striking ‘‘on the same day annu- 523(a)(8) of title 11, United States Code, is tended to be proposed by her to the bill ally’’; and S. 2155, to promote economic growth, amended by striking ‘‘dependents, for’’ and (ii) by inserting ‘‘and be made available to all that follows through the end of subpara- the public’’ after ‘‘Representatives’’; and provide tailored regulatory relief, and graph (B) and inserting ‘‘dependents, for an (B) by adding at the end the following: enhance consumer protections, and for educational benefit overpayment or loan ‘‘(3) CONTENTS.—The report required under other purposes; which was ordered to made, insured, or guaranteed by a govern- paragraph (1) shall include information on lie on the table; as follows: mental unit or made under any program the number, nature, and resolution of com- funded in whole or in part by a governmental In section 212, redesignate subsection (c) as plaints received, disaggregated by lender, unit or an obligation to repay funds received subsection (e). servicer, region, State, and institution of from a governmental unit as an educational In section 212, insert after subsection (b) higher education.’’; and benefit, scholarship, or stipend;’’. the following: (b) UNDUE HARDSHIP.—Section 523 of title (6) by striking subsection (e) and inserting (c) REQUIREMENTS FOR CONSENT TO ADOPT 11, United States Code, is amended by adding the following: INTERNATIONAL CAPITAL INSURANCE STAND- at the end the following: ‘‘(e) DEFINITIONS.—In this section: ARDS.—The Secretary of the Treasury and ‘‘(f) UNDUE HARDSHIP.— ‘‘(1) EDUCATION LOAN.—The term ‘education the Board of Governors of the Federal Re- ‘‘(1) IN GENERAL.—For the purpose of sub- loan’ means— serve System may not agree to, accept, es- section (a)(8), there shall be a rebuttable pre- ‘‘(A) a private education loan, as defined in tablish, enter into, or consent to the adop- sumption that excepting such debt from dis- section 140 of the Truth in Lending Act (15 tion of a final international capital insur- charge under this section would impose an U.S.C.1650); and ance standard with an international stand- undue hardship on the debtor or the debtor’s ‘‘(B) a student loan made, insured, or guar- ard-setting organization or a foreign govern- dependents if the debtor demonstrates that, anteed under title IV of the Higher Edu- ment, authority, or regulatory entity un- on the date of filing of the petition, the debt- cation Act of 1965 (20 U.S.C. 1070 et seq.). less— or— ‘‘(2) INSTITUTION OF HIGHER EDUCATION.— (1) the Secretary and the Chair of the ‘‘(A) is receiving benefits under title II or The term ‘institution of higher education’ Board of Governors have, with respect to the XVI of the Social Security Act (42 U.S.C. 401 has the meaning given the term in section text of the proposed final international cap- et seq., 1381 et seq.) on the basis of disability; 140 of the Truth in Lending Act (15 U.S.C. ital insurance standard— ‘‘(B) has been determined by the Secretary 1650).’’. (A) published the text in the Federal Reg- of Veterans Affairs to be unemployable due SEC. 707. SERVICEMEMBERS AND STUDENT ister; to a service-connected disability; LOANS. (B) made the text available for public com- ‘‘(C) is a family caregiver of an eligible (a) IN GENERAL.—Title II of the ment for a period of not less than 30 days; veteran pursuant to section 1720G of title 38; Servicemembers Civil Relief Act (50 U.S.C. and ‘‘(D) is a member of a household that has a 3931 et seq.) is amended by adding at the end (C) submitted a copy of the text to the the following new sections: gross income that is less than 200 percent of Committee on Banking, Housing, and Urban the poverty line, and provides for the care ‘‘SEC. 209. CONTINUAL MONITORING BY PRIVATE Affairs of the Senate and the Committee on EDUCATIONAL LENDERS OF STATUS Financial Services of the House of Rep- and support of an elderly, disabled, or chron- OF SERVICEMEMBERS. ically ill member of the household of the resentatives on a date on which both Houses ‘‘(a) IN GENERAL.—Each private edu- of Congress are in session; debtor or member of the immediate family of cational lender shall continuously monitor (2) the international capital insurance the debtor; the Defense Manpower Data Center, or any standard is not inconsistent with capital re- ‘‘(E) is a member of a household that has a successor database, for the purpose of con- quirements set forth in the State-based sys- gross income that is less than 200 percent of tinuously monitoring the duty status of any tem of insurance regulation; the poverty line, and the income of the debt- borrower of a private education loan who is (3) if the international capital insurance or is solely derived from benefit payments a servicemember and complying with the re- standard will apply to a company supervised under section 202 of the Social Security Act quirements of this Act. by the Board of Governors, the international (42 U.S.C. 402); or ‘‘(b) POLICIES AND PROCEDURES.—Moni- ‘‘(F) during the 5-year period preceding the toring conducted under subsection (a) shall capital insurance standard is not incon- filing of the petition (exclusive of any appli- be conducted in accordance with such poli- sistent with the capital requirements of the cable suspension of the repayment period), cies and procedures as the Secretary of De- Board of Governors for that company; and was not enrolled in an education program fense may prescribe for purposes of this sec- (4) the international capital insurance and had a gross income that was less than tion. standard recognizes the system of insurance 200 percent of the poverty line during each ‘‘(c) DEFINITIONS.—In this section: regulation in the United States as satisfying year during that period. ‘‘(1) PRIVATE EDUCATIONAL LENDER.—The the standard. ‘‘(2) DEFINITION.—In this subsection, the term ‘private educational lender’ has the (d) INVOLVEMENT OF STATE INSURANCE REG- term ‘poverty line’ means the poverty line meaning given such term in section 140 of ULATORS.—During the development and nego- (as defined by the Office of Management and the Truth in Lending Act (15 U.S.C. 1650). tiation of any international capital insur- Budget and revised annually in accordance ‘‘(2) PRIVATE EDUCATION LOAN.—The term ance standard or international insurance with section 673(2) of the Community Serv- ‘private education loan’ has the meaning agreement, including a covered agreement ices Block Grant Act (42 U.S.C. 9902(2)) appli- given such term in such section. under section 314 of title 31, United States Code, any party representing the United cable to a household of the size involved.’’. ‘‘SEC. 210. FORGIVENESS OF STUDENT DEBT. States shall, on any matter relating to in- SEC. 706. EDUCATION LOAN OMBUDSMAN. ‘‘(a) FORGIVENESS OF STUDENT DEBT OF surance, closely consult and coordinate with, Section 1035 of the Consumer Financial SERVICEMEMBERS WHO DIE IN LINE OF DUTY and include in any meeting with respect to Protection Act of 2010 (12 U.S.C. 5535) is WHILE SERVING ON ACTIVE DUTY.—Upon the amended— death of a servicemember who dies in line of that development and negotiation— (1) the State insurance commissioners; or (1) in the section heading, by striking ‘‘PRI- duty while serving on active duty as a mem- (2) a designee of the State insurance com- VATE’’; ber of the Armed Forces, each student loan (2) in subsection (a)— of the servicemember is forgiven. missioners, who shall act at the discretion of (A) by striking ‘‘a Private’’ and inserting ‘‘(b) FORGIVENESS OF FEDERAL STUDENT the State insurance commissioners. ‘‘an’’; and DEBT UPON SERVICE-CONNECTED DEATH.— (B) by striking ‘‘private’’; Upon the service-connected death of a serv- SA 2181. Mr. BROWN submitted an (3) in subsection (b), by striking ‘‘private icemember, the balance of each student loan amendment intended to be proposed to education student loan’’ and inserting ‘‘edu- of the servicemember guaranteed or issued amendment SA 2151 proposed by Mr. cation loan’’; by the Federal Government is forgiven. CRAPO (for himself, Mr. DONNELLY, Ms.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1601 HEITKAMP, Mr. TESTER, and Mr. WAR- (i) CLOSED-END CREDIT.—For closed-end reational vehicles, golf carts, and motor NER) to the bill S. 2155, to promote eco- credit, the cost of credit must be calculated scooters. nomic growth, provide tailored regu- according to the requirements section 1026.22 (16) OPEN-END CREDIT.—The term ‘‘open-end latory relief, and enhance consumer of title 12, Code of Federal Regulations. credit’’ means an extension of credit to a (ii) OPEN-END CREDIT.—For open-end credit, consumer that is an open-end credit plan as protections, and for other purposes; the cost of credit must be calculated accord- defined in section 1026.2(a)(20) of title 12, which was ordered to lie on the table; ing to the rules for calculating the effective Code of Federal Regulations, but without re- as follows: annual percentage rate for a billing cycle as gard to whether the credit is consumer cred- Beginning on page 105, strike line 25 and set forth in section 1026.14 (c) and (d) of title it, as defined in section 1026.2(a)(12) of title all that follows through page 106, line 7, and 12, Code of Federal Regulations. 12, Code of Federal Regulations, is extended insert the following: (7) COVERED LONGER-TERM BALLOON-PAY- by a creditor, as defined in section ‘‘(B) what constitutes appropriate proof.’’. MENT LOAN.—The term ‘‘covered longer-term 1026.2(a)(17) of title 12, Code of Federal Regu- balloon-payment loan’’ means a loan de- lations, is extended to a consumer, as defined SA 2182. Mr. CARPER submitted an scribed in section 603(b)(2). in section 1026.2(a)(11) of title 12, Code of amendment intended to be proposed by (8) COVERED LONGER-TERM LOAN.—The term Federal Regulations, or permits a finance him to the bill S. 2155, to promote eco- ‘‘covered longer-term loan’’ means a loan de- charge to be imposed from time to time on scribed in section 603(b)(3). nomic growth, provide tailored regu- an outstanding balance as defined in section (9) COVERED PERSON.—The term ‘‘covered 1026.4 of title 12, Code of Federal Regula- latory relief, and enhance consumer person’’ has the same meaning as in section tions. protections, and for other purposes; 1002 of the Consumer Financial Protection (17) OUTSTANDING LOAN.—The term ‘‘out- which was ordered to lie on the table; Act of 2010 (12 U.S.C. 5481). standing loan’’ means a loan that the con- as follows: (10) COVERED SHORT-TERM.—The term ‘‘cov- sumer is legally obligated to repay, regard- At the end, add the following: ered short-term loan’’ means a loan de- less of whether the loan is delinquent or is scribed in section 603(b)(1). TITLE VI—MISCELLANEOUS subject to a repayment plan or other work- (11) CREDIT.—The term ‘‘credit’’ has the out arrangement, except that a loan ceases Subtitle A—Loans same meaning as in section 1026.2(a)(14) of to be an outstanding loan if the consumer PART I—PAYDAY, VEHICLE TITLE, AND title 12, Code of Federal Regulations. has not made at least one payment on the CERTAIN HIGH-COST INSTALLMENT (12) ELECTRONIC FUND TRANSFER.—The term loan within the previous 180 days. LOANS ‘‘electronic fund transfer’’ has the same (18) SERVICE PROVIDER.—The term ‘‘service Subpart A—General meaning as in section 1005.3(b) of title 12, provider’’ has the same meaning as in sec- Code of Federal Regulations. SEC. 601. AUTHORITY AND PURPOSE. tion 1002 of the Consumer Financial Protec- (13) LENDER.—The term ‘‘lender’’ means a (a) AUTHORITY.—The regulation in this tion Act of 2010 (12 U.S.C. 5481). person who regularly extends credit to a con- part is issued by the Bureau of Consumer Fi- (19) VEHICLE SECURITY.—The term ‘‘vehicle sumer primarily for personal, family, or security’’ means an interest in a consumer’s nancial Protection (in this section referred household purposes. to as the ‘‘Bureau’’) pursuant to title X of motor vehicle obtained by the lender or serv- (14) LOAN SEQUENCE OR SEQUENCE.—The the Dodd-Frank Wall Street Reform and ice provider as a condition of the credit, re- term ‘‘loan sequence’’ or ‘‘sequence’’ means a gardless of how the transaction is character- Consumer Protection Act (12 U.S.C. 5481 et series of consecutive or concurrent covered seq.). ized by State law, including— short-term loans or covered longer-term bal- (A) any security interest in the motor ve- (b) PURPOSE.—The purpose of this part is to loon-payment loans, or a combination there- identify certain unfair and abusive acts or hicle, motor vehicle title, or motor vehicle of, in which each of the loans (other than the registration whether or not the security in- practices in connection with certain con- first loan) is made during the period in which sumer credit transactions and to set forth terest is perfected or recorded; or the consumer has a covered short-term loan (B) a pawn transaction in which the con- requirements for preventing such acts or or covered longer-term balloon-payment sumer’s motor vehicle is the pledged good practices. This part also prescribes require- loan outstanding and for 30 days thereafter. and the consumer retains use of the motor ments to ensure that the features of those For the purpose of determining where a loan vehicle during the period of the pawn agree- consumer credit transactions are fully, accu- is located within a loan sequence— ment. rately, and effectively disclosed to con- (A) a covered short-term loan or covered sumers. This part also prescribes processes (b) RULE OF CONSTRUCTION.—For purposes longer-term balloon-payment loan is the of this part, where definitions are incor- and criteria for registration of information first loan in a sequence if the loan is ex- systems. porated from other statutes or regulations, tended to a consumer who had no covered the terms have the meaning and incorporate SEC. 602. DEFINITIONS. short-term loan or covered longer-term bal- the embedded definitions, appendices, and (a) DEFINITIONS.—For the purposes of this loon-payment loan outstanding within the commentary from those other laws except to part, the following definitions apply: immediately preceding 30 days; the extent that this part provides a different (1) ACCOUNT.—The term ‘‘account’’ has the (B) a covered short-term or covered longer- definition for a parallel term. same meaning as in section 1005.2(b) of title term balloon-payment loan is the second SEC. 603. SCOPE OF COVERAGE; EXCLUSIONS; EX- 12, Code of Federal Regulations. loan in the sequence if the consumer has a EMPTIONS. (2) AFFILIATE.—The term ‘‘affiliate’’ has currently outstanding covered short-term (a) IN GENERAL.—This part applies to a the same meaning as in section 1002 of the loan or covered longer-term balloon-pay- lender that extends credit by making cov- Consumer Financial Protection Act of 2010 ment loan that is the first loan in a se- ered loans. (12 U.S.C. 5481). quence, or if the consummation date of the (b) COVERED LOAN.—The term ‘‘covered (3) CLOSED-END CREDIT.—The term ‘‘closed- second loan is within 30 days following the loan’’ means closed-end or open-end credit end credit’’ means an extension of credit to last day on which the consumer’s first loan that is extended to a consumer primarily for a consumer that is not open-end credit. in the sequence was outstanding; personal, family, or household purposes that (4) CONSUMER.—The term ‘‘consumer’’ has (C) a covered short-term or covered longer- is not excluded under subsection (d) or condi- the same meaning as in section 1002 of the term balloon-payment loan is the third loan tionally exempted under subsection (e) or (f), Consumer Financial Protection Act of 2010 in the sequence if the consumer has a cur- and— (12 U.S.C. 5481). rently outstanding covered short-term loan (1) for closed-end credit that does not pro- (5) CONSUMMATION.—The term ‘‘consumma- or covered longer-term balloon-payment vide for multiple advances to consumers, the tion’’ means the time that a consumer be- loan that is the second loan in the sequence, consumer is required to repay substantially comes contractually obligated on a new loan or if the consummation date of the third the entire amount of the loan within 45 days or a modification that increases the amount loan is within 30 days following the last day of consummation, or for all other loans, the of an existing loan. on which the consumer’s second loan in the consumer is required to repay substantially (6) COST OF CREDIT.—The term ‘‘cost of sequence was outstanding; and the entire amount of any advance within 45 credit’’ means the cost of consumer credit as (D) a covered short-term or covered longer- days of the advance; expressed as a per annum rate and is deter- term balloon-payment loan would be the (2) for loans not otherwise covered by para- mined as follows: fourth loan in the sequence if the consumer graph (1)— (A) CHARGES INCLUDED IN THE COST OF CRED- has a currently outstanding covered short- (A) for closed-end credit that does not pro- IT.—The cost of credit includes all finance term loan or covered longer-term balloon- vide for multiple advances to consumers, the charges as set forth in section 1026.4 of title payment loan that is the third loan in the consumer is required to repay substantially 12, Code of Federal Regulations, but without sequence, or if the consummation date of the the entire balance of the loan in a single regard to whether the credit is consumer fourth loan would be within 30 days fol- payment more than 45 days after consumma- credit, as that term is defined in section lowing the last day on which the consumer’s tion or to repay such loan through at least 1026.2(a)(12) of title 12, Code of Federal Regu- third loan in the sequence was outstanding. one payment that is more than twice as lations, or is extended to a consumer, as that (15) MOTOR VEHICLE.—The term ‘‘motor ve- large as any other payment(s); or term is defined in section 1026.2(a)(11) of title hicle’’ means any self-propelled vehicle pri- (B) for all other loans, either— 12, Code of Federal Regulations. marily used for on-road transportation. The (i) the consumer is required to repay sub- (B) CALCULATION OF THE COST OF CREDIT.— term does not include motor homes, rec- stantially the entire amount of an advance

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1602 CONGRESSIONAL RECORD — SENATE March 8, 2018 in a single payment more than 45 days after services under section 1005.17(a)(1) of title 12, alternative loan under this subsection at a the advance is made or is required to make Code of Federal Regulations. time to a consumer. at least one payment on the advance that is (7) WAGE ADVANCE PROGRAMS.—Advances of (3) INCOME DOCUMENTATION CONDITION.—In more than twice as large as any other pay- wages that constitute credit if made by an making an alternative loan under this sub- ment(s); or employer, as defined in section 3 of the Fair section, the lender must maintain and com- (ii) a loan with multiple advances is struc- Labor Standards Act of 1938 (29 U.S.C. 203), ply with policies and procedures for docu- tured such that paying the required min- or by the employer’s business partner, to the menting proof of recurring income. imum payments may not fully amortize the employer’s employees, provided that— (4) SAFE HARBOR.—Loans made by Federal outstanding balance by a specified date or (A) the advance is made only against the credit unions in compliance with the condi- time, and the amount of the final payment accrued cash value of any wages the em- tions set forth by the National Credit Union to repay the outstanding balance at such ployee has earned up to the date of the ad- Administration in section 701.21(c)(7)(iii) of time could be more than twice the amount of vance; and title 12, Code of Federal Regulations, for a other minimum payments under the plan; or (B) before any amount is advanced, the en- Payday Alternative Loan are deemed to be (3) for loans not otherwise covered by para- tity advancing the funds warrants to the in compliance with the requirements and graph (1) or (2), if both of the following con- consumer as part of the contract between conditions of paragraphs (1), (2), and (3). ditions are satisfied: the parties on behalf of itself and any busi- (f) ACCOMMODATION LOANS.—Accommoda- (A) The cost of credit for the loan exceeds ness partners, that it or they, as applicable— tion loans are conditionally exempt from the 36 percent per annum, as measured— (i) will not require the consumer to pay requirements of this part. Accommodation (i) at the time of consummation for closed- any charges or fees in connection with the loan means a covered loan if at the time that end credit; or advance, other than a charge for partici- the loan is consummated— (ii) at the time of consummation and, if pating in the wage advance program; (1) the lender and its affiliates collectively the cost of credit at consummation is not (ii) has no legal or contractual claim or have made 2,500 or fewer covered loans in the more than 36 percent per annum, again at remedy against the consumer based on the current calendar year, and made 2,500 or the end of each billing cycle for open-end consumer’s failure to repay in the event the fewer such covered loans in the preceding credit, except that— amount advanced is not repaid in full; and calendar year; (I) open-end credit meets the condition set (iii) with respect to the amount advanced (2)(A) during the most recent completed forth in this clause in any billing cycle in to the consumer, will not engage in any debt tax year in which the lender was in oper- which a lender imposes a finance charge, and collection activities if the advance is not de- ation, if applicable, the lender and any affili- the principal balance is $0; and ducted directly from wages or otherwise re- ates that were in operation and used the (II) Once open-end credit meets the condi- paid on the scheduled date, place the amount same tax year derived no more than 10 per- tion set forth in this clause, it meets the advanced as a debt with or sell it to a third cent of their receipts from covered loans; or condition set forth in this clause for the du- party, or report to a consumer reporting (B) if the lender was not in operation in a ration of the plan. agency concerning the amount advanced. prior tax year, the lender reasonably antici- (B) The lender or service provider obtains a (8) NO-COST ADVANCES.—Advances of funds pates that the lender and any of its affiliates leveraged payment mechanism as defined in that constitute credit if the consumer is not that use the same tax year will derive no subsection (c). required to pay any charge or fee to be eligi- (c) LEVERAGED PAYMENT MECHANISM.—For more than 10 percent of their receipts from ble to receive or in return for receiving the covered loans during the current tax year; purposes of subsection (b), a lender or service advance, provided that before any amount is provider obtains a leveraged payment mech- and advanced, the entity advancing the funds (3) provided, however, that covered longer- anism if it has the right to initiate a trans- warrants to the consumer as part of the con- fer of money, through any means, from a term loans for which all transfers meet the tract between the parties— consumer’s account to satisfy an obligation conditions in section 622(a)(1)(ii), and re- (A) that it has no legal or contractual on a loan, except that the lender or service ceipts from such loans, are not included for claim or remedy against the consumer based provider does not obtain a leveraged pay- the purpose of determining whether the con- on the consumer’s failure to repay in the ment mechanism by initiating a single im- ditions of paragraphs (1) and (2) have been mediate payment transfer at the consumer’s event the amount advanced is not repaid in satisfied. full; and request. (g) RECEIPTS.—For purposes of subsection (d) EXCLUSIONS FOR CERTAIN TYPES OF (B) that, with respect to the amount ad- vanced to the consumer, such entity will not (f), the term ‘‘receipts’’ means ‘‘total in- CREDIT.—This part does not apply to the fol- come’’ (or in the case of a sole proprietorship lowing: engage in any debt collection activities if the advance is not repaid on the scheduled ‘‘gross income’’) plus ‘‘cost of goods sold’’ as (1) CERTAIN PURCHASE MONEY SECURITY IN- these terms are defined and reported on In- TEREST LOANS.—Credit extended for the sole date, place the amount advanced as a debt with or sell it to a third party, or report to ternal Revenue Service (IRS) tax return and express purpose of financing a con- forms (such as Form 1120 for corporations, sumer’s initial purchase of a good when the a consumer reporting agency concerning the amount advanced. Form 1120S and Schedule K for S corpora- credit is secured by the property being pur- tions, Form 1120, Form 1065 or Form 1040 for chased, whether or not the security interest (e) ALTERNATIVE LOAN.—Alternative loans LLCs, Form 1065 and Schedule K for partner- is perfected or recorded. are conditionally exempt from the require- ships, and Form 1040, Schedule C for sole pro- (2) REAL ESTATE SECURED CREDIT.—Credit ments of this part. The term ‘‘alternative prietorships). Receipts do not include net that is secured by any real property, or by loan’’ means a covered loan that satisfies the capital gains or losses; taxes collected for personal property used or expected to be following conditions and requirements: and remitted to a taxing authority if in- used as a dwelling, and the lender records or (1) LOAN TERM CONDITIONS.—An alternative cluded in gross or total income, such as sales otherwise perfects the security interest loan must satisfy the following conditions: or other taxes collected from customers but within the term of the loan. (A) The loan is not structured as open-end excluding taxes levied on the entity or its (3) CREDIT CARDS.—Any credit card account credit, as defined in section 602(a)(16). employees; or amounts collected for another under an open-end (not home-secured) con- (B) The loan has a term of not less than 1 (but fees earned in connection with such col- sumer credit plan as defined in section month and not more than 6 months. lections are receipts). Items such as subcon- 1026.2(a)(15)(ii) of title 12, Code of Federal (C) The principal of the loan is not less tractor costs, reimbursements for purchases Regulations. than $200 and not more than $1,000. a contractor makes at a customer’s request, (4) STUDENT LOANS.—Credit made, insured, (D) The loan is repayable in 2 or more pay- and employee-based costs such as payroll or guaranteed pursuant to a program author- ments, all of which payments are substan- taxes are included in receipts. ized by title IV of the Higher Education Act tially equal in amount and fall due in sub- of 1965 (20 U.S.C. 1070 et seq.), or a private stantially equal intervals, and the loan am- (h) TAX YEAR.—For purposes of subsection education loan as defined in section ortizes completely during the term of the (f), the term ‘‘tax year’’ has the meaning at- 1026.46(b)(5) of title 12, Code of Federal Regu- loan. tributed to it by the IRS as set forth in IRS lations. (E) The lender does not impose any charges Publication 538, which provides that a ‘‘tax (5) NONRECOURSE PAWN LOANS.—Credit in other than the rate and application fees per- year’’ is an annual accounting period for which the lender has sole physical possession missible for Federal credit unions under reg- keeping records and reporting income and and use of the property securing the credit ulations issued by the National Credit Union expenses. for the entire term of the loan and for which Administration in section 701.21(c)(7)(iii) of Subpart B—Underwriting the lender’s sole recourse if the consumer title 12, Code of Federal Regulations. does not elect to redeem the pawned item (2) BORROWING HISTORY CONDITION.—Prior SEC. 611. IDENTIFICATION OF UNFAIR AND ABU- and repay the loan is the retention of the to making an alternative loan under this SIVE PRACTICE. property securing the credit. subsection, the lender must determine from It is an unfair and abusive practice for a (6) OVERDRAFT SERVICES AND LINES OF CRED- its records that the loan would not result in lender to make covered short-term loans or IT.—Overdraft services as defined in section the consumer being indebted on more than 3 covered longer-term balloon-payment loans 1005.17(a) of title 12, Code of Federal Regula- outstanding loans made under this section without reasonably determining that the tions, and overdraft lines of credit otherwise from the lender within a period of 180 days. consumers will have the ability to repay the excluded from the definition of overdraft The lender must also make no more than one loans according to their terms.

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SEC. 612. ABILITY-TO-REPAY DETERMINATION (7) RELEVANT MONTHLY PERIOD.—The term (c) PROJECTING CONSUMER NET INCOME AND REQUIRED. ‘‘relevant monthly period’’ means the cal- PAYMENTS FOR MAJOR FINANCIAL OBLIGA- (a) DEFINITIONS.—For purposes of this sec- endar month in which the highest sum of TIONS.— tion: payments is due under the covered short- (1) IN GENERAL.—To make a reasonable de- (1) BASIC LIVING EXPENSES.—The term term or covered longer-term balloon-pay- termination required under subsection (b), a ‘‘basic living expenses’’ means expenditures, ment loan. lender must obtain the consumer’s written other than payments for major financial ob- (8) RESIDUAL INCOME.—The term ‘‘residual statement in accordance with paragraph ligations, that a consumer makes for goods income’’ means the sum of net income that (2)(A), obtain verification evidence to the ex- and services that are necessary to maintain the lender projects the consumer will receive tent required by paragraph (2)(B), assess in- the consumer’s health, welfare, and ability during the relevant monthly period, minus formation about rental housing expense as to produce income, and the health and wel- the sum of the amounts that the lender required by paragraph (2)(C), and use those fare of the members of the consumer’s house- projects will be payable by the consumer for sources of information to make a reasonable hold who are financially dependent on the major financial obligations during the rel- projection of the amount of a consumer’s net consumer. evant monthly period and payments under income and payments for major financial ob- (2) DEBT-TO-INCOME RATIO.—The term the covered short-term loan or covered ligations during the relevant monthly pe- ‘‘debt-to-income ratio’’ means the ratio, ex- longer-term balloon-payment loan during riod. The lender must consider major finan- pressed as a percentage, of the sum of the the relevant monthly period, all of which cial obligations that are listed in a con- amounts that the lender projects will be pay- projected amounts are determined in accord- sumer’s written statement described in para- able by the consumer for major financial ob- ance with subsection (c). graph (2)(A)(ii) even if they cannot be ligations during the relevant monthly period (b) REASONABLE DETERMINATION RE- verified by the sources listed in paragraph and the payments under the covered short- QUIRED.—(1)(A) Except as provided in section (2)(B)(ii). To be reasonable, a projection of term loan or covered longer-term balloon- 613, a lender must not make a covered short- the amount of net income or payments for payment loan during the relevant monthly term loan or covered longer-term balloon- major financial obligations may be based on period, to the net income that the lender payment loan or increase the credit avail- a consumer’s written statement of amounts projects the consumer will receive during able under a covered short-term loan or cov- under paragraph (2)(A) only as specifically the relevant monthly period, all of which ered longer-term balloon-payment loan, un- permitted by paragraph (2) (B) or (C) or to projected amounts are determined in accord- less the lender first makes a reasonable de- the extent the stated amounts are consistent ance with subsection (c). termination that the consumer will have the with the verification evidence that is ob- (3) MAJOR FINANCIAL OBLIGATIONS.—The ability to repay the loan according to its tained in accordance with paragraph (2)(B). term ‘‘major financial obligations’’ means a terms. consumer’s housing expense, required pay- In determining whether the stated amounts (B) For a covered short-term loan or cov- ments under debt obligations (including, are consistent with the verification evi- ered longer-term balloon-payment loan that without limitation, outstanding covered dence, the lender may reasonably consider is a line of credit, a lender must not permit loans), child support obligations, and ali- other reliable evidence the lender obtains a consumer to obtain an advance under the mony obligations. from or about the consumer, including any line of credit more than 90 days after the (4) NATIONAL CONSUMER REPORT.—The term explanations the lender obtains from the ‘‘national consumer report’’ means a con- date of a required determination under this consumer. sumer report, as defined in section 603(d) of subsection, unless the lender first makes a (2) EVIDENCE OF NET INCOME AND PAYMENTS the Fair Credit Reporting Act (15 U.S.C. new determination that the consumer will FOR MAJOR FINANCIAL OBLIGATIONS.— 1681a(d)), obtained from a consumer report- have the ability to repay the covered short- (A) CONSUMER STATEMENTS.—A lender must ing agency that compiles and maintains files term loan or covered longer-term balloon- obtain a consumer’s written statement of— on consumers on a nationwide basis, as de- payment loan according to its terms. (i) the amount of the consumer’s net in- fined in section 603(p) of the Fair Credit Re- (2) A lender’s determination of a con- come, which may include the amount of any porting Act (15 U.S.C. 1681a(p)). sumer’s ability to repay a covered short- income of another person to which the con- (5) NET INCOME.—The term ‘‘net income’’ term loan or covered longer-term balloon- sumer has a reasonable expectation of ac- means the total amount that a consumer re- payment loan is reasonable only if either— cess; and ceives after the payer deducts amounts for (A) based on the calculation of the con- (ii) the amount of payments required for taxes, other obligations, and voluntary con- sumer’s debt-to-income ratio for the rel- the consumer’s major financial obligations. tributions (but before deductions of any evant monthly period and the estimates of (B) VERIFICATION EVIDENCE.—A lender must amounts for payments under a prospective the consumer’s basic living expenses for the obtain verification evidence for the amounts covered short-term loan or covered longer- relevant monthly period, the lender reason- of the consumer’s net income and payments term balloon-payment loan or for any major ably concludes that— for major financial obligations other than financial obligation); provided that, the (i) for a covered short-term loan, the con- rental housing expense, as follows: lender may include in the consumer’s net in- sumer can make payments for major finan- (i) For the consumer’s net income— come the amount of any income of another cial obligations, make all payments under (I) the lender must obtain a reliable record person to which the consumer has a reason- the loan, and meet basic living expenses dur- (or records) of an income payment (or pay- able expectation of access. ing the shorter of the term of the loan or the ments) directly to the consumer covering (6) PAYMENT UNDER THE COVERED SHORT- period ending 45 days after consummation of sufficient history to support the lender’s pro- TERM LOAN OR COVERED LONGER-TERM BAL- the loan, and for 30 days after having made jection under paragraph (1) if a reliable LOON-PAYMENT LOAN.—The term ‘‘payment the highest payment under the loan; and record (or records) is reasonably available. If under the covered short-term loan or covered (ii) for a covered longer-term balloon-pay- a lender determines that a reliable record (or longer-term balloon-payment loan’’— ment loan, the consumer can make pay- records) of some or all of the consumer’s net (A) means the combined dollar amount ments for major financial obligations, make income is not reasonably available, then, the payable by the consumer at a particular all payments under the loan, and meet basic lender may reasonably rely on the con- time following consummation in connection living expenses during the relevant monthly sumer’s written statement described in sub- with the covered short-term loan or covered period, and for 30 days after having made the paragraph (A)(i) for that portion of the con- longer-term balloon-payment loan, assuming highest payment under the loan; or sumer’s net income; and that the consumer has made preceding re- (B) based on the calculation of the con- (II) if the lender elects to include in the quired payments and in the absence of any sumer’s residual income for the relevant consumer’s net income for the relevant affirmative act by the consumer to extend or monthly period and the estimates of the con- monthly period any income of another per- restructure the repayment schedule or to sumer’s basic living expenses for the rel- son to which the consumer has a reasonable suspend, cancel, or delay payment for any evant monthly period, the lender reasonably expectation of access, the lender must obtain product, service, or membership provided in concludes that— verification evidence to support the lender’s connection with the loan; (i) for a covered short-term loan, the con- projection under paragraph (1). (B) includes all principal, interest, charges, sumer can make payments for major finan- (ii) For the consumer’s required payments and fees; and cial obligations, make all payments under under debt obligations, the lender must ob- (C) for a line of credit is calculated assum- the loan, and meet basic living expenses dur- tain a national consumer report, the records ing that— ing the shorter of the term of the loan or the of the lender and its affiliates, and a con- (i) the consumer will utilize the full period ending 45 days after consummation of sumer report obtained from an information amount of credit under the covered short- the loan, and for 30 days after having made system that has been registered for 180 days term loan or covered longer-term balloon- the highest payment under the loan; and or more pursuant to section 632(c)(2) or is payment loan as soon as the credit is avail- (ii) for a covered longer-term balloon-pay- registered pursuant to section 632(d)(2), if able to the consumer; and ment loan, the consumer can make pay- available. If the reports and records do not (ii) the consumer will make only minimum ments for major financial obligations, make include a debt obligation listed in the con- required payments under the covered short- all payments under the loan, and meet basic sumer’s written statement described in sub- term loan or covered longer-term balloon- living expenses during the relevant monthly paragraph (A)(ii), the lender may reasonably payment loan for as long as permitted under period, and for 30 days after having made the rely on the written statement in deter- the loan agreement. highest payment under the loan. mining the amount of the required payment.

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(iii) For a consumer’s required payments loan that satisfies the requirements set forth (B) IN WRITING OR ELECTRONIC DELIVERY.— under child support obligations or alimony in subsections (b) through (e). Prior to mak- Disclosures required by this subsection must obligations, the lender must obtain a na- ing a covered short-term loan under this sec- be provided in writing or through electronic tional consumer report. If the report does tion, a lender must review the consumer’s delivery. The disclosures must be provided in not include a child support or alimony obli- borrowing history in its own records, the a form that can be viewed on paper or a gation listed in the consumer’s written records of the lender’s affiliates, and a con- screen, as applicable. This subparagraph is statement described in subparagraph (A)(ii), sumer report from an information system not satisfied by a disclosure provided orally the lender may reasonably rely on the writ- that has been registered for 180 days or more or through a recorded message. ten statement in determining the amount of pursuant to section 632(c)(2) or is registered (C) RETAINABLE.—Disclosures required by the required payment. with the Bureau pursuant to section this subsection must be provided in a (iv) Notwithstanding clauses (ii) and (iii), 632(d)(2). The lender must use this borrowing retainable form. the lender is not required to obtain a na- history information to determine a potential (D) SEGREGATION REQUIREMENTS FOR NO- tional consumer report as verification evi- loan’s compliance with the requirements in TICES.—Notices required by this subsection dence for the consumer’s debt obligations, subsections (b) and (c). must be segregated from all other written or alimony obligations, and child support obli- (b) LOAN TERM REQUIREMENTS.—A covered provided materials and contain only the in- gations if during the preceding 90 days— short-term loan that is made under this sec- formation required by this section, other (I) the lender or an affiliate obtained a na- tion must satisfy the following require- than information necessary for product iden- tional consumer report for the consumer, re- ments: tification, branding, and navigation. Seg- tained the report under section 633(b)(1)(ii), (1) The loan satisfies the following prin- regated additional content that is not re- and checked it again in connection with the cipal amount limitations, as applicable— quired by this subsection must not be dis- new loan; and (A) for the first loan in a loan sequence of played above, below, or around the required (II) the consumer did not complete a loan covered short-term loans made under this content. sequence of three loans made under this sec- section, the principal amount is no greater (E) MACHINE READABLE TEXT IN NOTICES tion and trigger the prohibition under sub- than $500; PROVIDED THROUGH ELECTRONIC DELIVERY.—If section (d)(2) since the previous report was (B) for the second loan in a loan sequence provided through electronic delivery, the no- obtained. of covered short-term loans made under this tices required by paragraph (2)(A) and (B) (C) RENTAL HOUSING EXPENSE.—For a con- section, the principal amount is no greater must use machine readable text that is ac- sumer’s housing expense other than a pay- than two-thirds of the principal amount of cessible via both web browsers and screen ment for a debt obligation that appears on a the first loan in the loan sequence; and readers. national consumer report obtained pursuant (C) for the third loan in a loan sequence of (F) MODEL FORMS.— to subparagraph (B)(ii), the lender may rea- covered short-term loans made under this (i) FIRST LOAN NOTICE.—The content, order, sonably rely on the consumer’s written section, the principal amount is no greater and format of the notice required by para- statement described in subparagraph (A)(ii). than one-third of the principal amount of the graph (2)(A) must be substantially similar to (d) ADDITIONAL LIMITATIONS ON LENDING first loan in the loan sequence. a model form. (COVERED SHORT-TERM LOANS AND COVERED (2) The loan amortizes completely during (ii) THIRD LOAN NOTICE.—The content, LONGER-TERM BALLOON-PAYMENT LOANS).— the term of the loan and the payment sched- order, and format of the notice required by (1) BORROWING HISTORY REVIEW.—Prior to ule provides for the lender allocating a con- paragraph (2)(B) must be substantially simi- making a covered short-term loan or covered sumer’s payments to the outstanding prin- lar to a model form. longer-term balloon-payment loan under this cipal and interest and fees as they accrue (G) FOREIGN LANGUAGE DISCLOSURES.—Dis- section, in order to determine whether any only by applying a fixed periodic rate of in- closures required under this subsection may of the prohibitions in this subsection are ap- terest to the outstanding balance of the un- be made in a language other than English, plicable, a lender must obtain and review in- paid loan principal during every scheduled provided that the disclosures are made avail- formation about the consumer’s borrowing repayment period for the term of the loan. able in English upon the consumer’s request. history from the records of the lender and its (3) The lender and any service provider do (2) NOTICE REQUIREMENTS.— affiliates, and from a consumer report ob- not take vehicle security as a condition of (A) FIRST LOAN NOTICE.—A lender that tained from an information system that has the loan, as defined in section 602(a)(19). makes a first loan in a sequence of loans been registered for 180 days or more pursuant (4) The loan is not structured as open-end made under this section must provide to a to section 632(c)(2) or is registered with the credit, as defined in section 602(a)(16). consumer a notice that includes, as applica- Bureau pursuant to section 632(d)(2), if avail- (c) BORROWING HISTORY REQUIREMENTS.— ble, the following information and state- able. Prior to making a covered short-term loan ments, using language substantially similar (2) PROHIBITION ON LOAN SEQUENCES OF under this section, the lender must deter- to the language set forth in a model form: MORE THAN THREE COVERED SHORT-TERM mine that the following requirements are (i) IDENTIFYING STATEMENT.—The state- LOANS OR COVERED LONGER-TERM BALLOON- satisfied: ment ‘‘Notice of restrictions on future PAYMENT LOANS MADE UNDER THIS SECTION.—A (1) The consumer has not had in the past 30 loans,’’ using that phrase. lender must not make a covered short-term days an outstanding covered short-term loan (ii) WARNING FOR LOAN MADE UNDER THIS loan or covered longer-term balloon-pay- under section 612 or covered longer-term bal- SECTION.— ment loan under this section during the pe- loon-payment loan under section 612. (I) POSSIBLE INABILITY TO REPAY.—A state- riod in which the consumer has a covered (2) The loan would not result in the con- ment that warns the consumer not to take short-term loan or covered longer-term bal- sumer having a loan sequence of more than out the loan if the consumer is unsure of loon-payment loan made under this section 3 covered short-term loans under this sec- being able to repay the total amount of prin- outstanding and for 30 days thereafter if the tion. cipal and finance charges on the loan by the new covered short-term loan or covered (3) The loan would not result in the con- contractual due date. longer-term balloon-payment loan would be sumer having during any consecutive 12- (II) CONTRACTUAL DUE DATE.—Contractual the fourth loan in a sequence of covered month period— due date of the loan made under this section. short-term loans, covered longer-term bal- (A) more than 6 covered short-term loans (III) TOTAL AMOUNT DUE.—Total amount loon-payment loans, or a combination of cov- outstanding; or due on the contractual due date. ered short-term loans and covered longer- (B) covered short-term loans outstanding (iii) RESTRICTION ON A SUBSEQUENT LOAN term balloon-payment loans made under this for an aggregate period of more than 90 days. REQUIRED BY FEDERAL LAW.—A statement section. (d) RESTRICTIONS ON MAKING CERTAIN COV- that informs a consumer that Federal law re- (3) PROHIBITION ON MAKING A COVERED ERED LOANS AND NONCOVERED LOANS FOL- quires a similar loan taken out within the SHORT-TERM LOAN OR COVERED LONGER-TERM LOWING A COVERED SHORT-TERM LOAN MADE next 30 days to be smaller. BALLOON-PAYMENT LOAN UNDER THIS SECTION UNDER THE CONDITIONAL EXEMPTION.—If a (iv) BORROWING LIMITS.—In a tabular form: FOLLOWING A COVERED SHORT-TERM LOAN lender makes a covered short-term loan (I) Maximum principal amount on loan 1 in MADE UNDER SECTION 613.—A lender must not under this section to a consumer, the lender a sequence of loans made under this section. make a covered short-term loan or covered or its affiliate must not subsequently make (II) Maximum principal amount on loan 2 longer-term balloon-payment loan under this a covered loan, except a covered short-term in a sequence of loans made under this sec- section during the period in which the con- loan made in accordance with the require- tion. sumer has a covered short-term loan made ments in this section, or a noncovered loan (III) Maximum principal amount on loan 3 under section 613 outstanding and for 30 days to the consumer while the covered short- in a sequence of loans made under this sec- thereafter. term loan made under this section is out- tion. (e) PROHIBITION AGAINST EVASION.—A lend- standing and for 30 days thereafter. (IV) Loan 4 in a sequence of loans made er must not take any action with the intent (e) DISCLOSURES.— under this section is not allowed. of evading the requirements of this section. (1) GENERAL FORM OF DISCLOSURES.— (v) LENDER NAME AND CONTACT INFORMA- SEC. 613. CONDITIONAL EXEMPTION FOR CER- (A) CLEAR AND CONSPICUOUS.—Disclosures TION.—Name of the lender and a telephone TAIN COVERED SHORT-TERM LOANS. required by this subsection must be clear number for the lender and, if applicable, a (a) CONDITIONAL EXEMPTION FOR CERTAIN and conspicuous. Disclosures required by URL of the website for the lender. COVERED SHORT-TERM LOANS.—Sections 611 this section may contain commonly accepted (B) THIRD LOAN NOTICE.—A lender that and 612 do not apply to a covered short-term or readily understandable abbreviations. makes a third loan in a sequence of loans

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made under this section must provide to a transfer of funds from a consumer’s account (C) DIFFERENT PAYMENT CHANNEL.—A failed consumer a notice that includes the fol- held at the same institution is not a pay- payment transfer meeting the conditions in lowing information and statements, using ment transfer if all of the conditions in this subparagraph (B) is the second consecutive language substantially similar to the lan- subparagraph are met, notwithstanding that failed payment transfer regardless of wheth- guage set forth in a model form: the transfer otherwise meets the description er the first failed payment transfer was initi- (i) IDENTIFYING STATEMENT.—The state- in this paragraph. ated through a different payment channel. ment ‘‘Notice of borrowing limits on this (i) The lender, pursuant to the terms of the (c) EXCEPTION FOR ADDITIONAL PAYMENT loan and future loans,’’ using that phrase. loan agreement or account agreement, does TRANSFERS AUTHORIZED BY THE CONSUMER.— (ii) TWO SIMILAR LOANS WITHOUT 30-DAY not charge the consumer any fee, other than (1) IN GENERAL.—Notwithstanding the pro- BREAK.—A statement that informs a con- a late fee under the loan agreement, in the hibition in subsection (b), a lender may ini- sumer that the lender’s records show that event that the lender initiates a transfer of tiate additional payment transfers from a the consumer has had 2 similar loans with- funds from the consumer’s account in con- consumer’s account after 2 consecutive out taking at least a 30-day break between nection with the covered loan for an amount failed payment transfers if the additional them. that the account lacks sufficient funds to payment transfers are authorized by the con- (iii) RESTRICTION ON LOAN AMOUNT REQUIRED cover. sumer in accordance with the requirements BY FEDERAL LAW.—A statement that informs (ii) The lender, pursuant to the terms of and conditions in this subsection or if the a consumer that Federal law requires the the loan agreement or account agreement, lender executes a single immediate payment third loan to be smaller than previous loans does not close the consumer’s account in re- transfer at the consumer’s request in accord- in the loan sequence. sponse to a negative balance that results ance with subsection (d). (iv) PROHIBITION ON SUBSEQUENT LOAN.—A from a transfer of funds initiated in connec- (2) GENERAL AUTHORIZATION REQUIREMENTS statement that informs a consumer that the tion with the covered loan. AND CONDITIONS.— EQUIRED PAYMENT TRANSFER TERMS consumer cannot take out a similar loan for (2) SINGLE IMMEDIATE PAYMENT TRANSFER (A) R .— For purposes of this subsection, the specific at least 30 days after repaying the loan. AT THE CONSUMER’S REQUEST.—The term ‘‘sin- date, amount, and payment channel of each (v) LENDER NAME AND CONTACT INFORMA- gle immediate payment transfer at the con- additional payment transfer must be author- TION.—Name of the lender and a telephone sumer’s request’’ means— number for the lender and, if applicable, a (A) a payment transfer initiated by a one- ized by the consumer, except as provided in URL of the website for the lender. time electronic fund transfer within one subparagraph (B) or (C). (B) APPLICATION OF SPECIFIC DATE REQUIRE- (3) TIMING.—A lender must provide the no- business day after the lender obtains the MENT TO REINITIATING A RETURNED PAYMENT tices required in paragraph (2)(A) and (B) to consumer’s authorization for the one-time TRANSFER.—If a payment transfer authorized the consumer before the applicable loan electronic fund transfer; or by the consumer pursuant to this subsection under this section is consummated. (B) a payment transfer initiated by means is returned for nonsufficient funds, the lend- of processing the consumer’s signature check Subpart C—Payments er may reinitiate the payment transfer, such through the check system or through the SEC. 621. IDENTIFICATION OF UNFAIR AND ABU- as by re-presenting it once through the ACH ACH system within one business day after SIVE PRACTICE. system, on or after the date authorized by the consumer provides the check to the lend- It is an unfair and abusive practice for a the consumer, provided that the returned er. lender to make attempts to withdraw pay- payment transfer has not triggered the pro- ment from consumers’ accounts in connec- (b) PROHIBITION ON INITIATING PAYMENT hibition in subsection (b). tion with a covered loan after the lender’s TRANSFERS FROM A CONSUMER’S ACCOUNT (C) SPECIAL AUTHORIZATION REQUIREMENTS second consecutive attempts to withdraw AFTER TWO CONSECUTIVE FAILED PAYMENT AND CONDITIONS FOR PAYMENT TRANSFERS TO payments from the accounts from which the TRANSFERS.— COLLECT A LATE FEE OR RETURNED ITEM FEE.— prior attempts were made have failed due to (1) IN GENERAL.—A lender must not initiate A lender may initiate a payment transfer a lack of sufficient funds, unless the lender a payment transfer from a consumer’s ac- pursuant to this subsection solely to collect obtains the consumers’ new and specific au- count in connection with any covered loan a late fee or returned item fee without ob- thorization to make further withdrawals that the consumer has with the lender after taining the consumer’s authorization for the from the accounts. the lender has attempted to initiate 2 con- specific date and amount of the payment SEC. 622. PROHIBITED PAYMENT TRANSFER AT- secutive failed payment transfers from that transfer only if the consumer has authorized TEMPTS. account in connection with any covered loan the lender to initiate such payment transfers (a) DEFINITIONS.—For purposes of this sec- that the consumer has with the lender. For in advance of the withdrawal attempt. For tion and section 623: purposes of this subsection, a payment trans- purposes of this subparagraph, the consumer (1) PAYMENT TRANSFER.—The term ‘‘pay- fer is deemed to have failed when it results authorizes such payment transfers only if ment transfer’’ means any lender-initiated in a return indicating that the consumer’s the consumer’s authorization obtained under debit or withdrawal of funds from a con- account lacks sufficient funds or, if the lend- paragraph (3)(C) includes a statement, in sumer’s account for the purpose of collecting er is the consumer’s account-holding institu- terms that are clear and readily understand- any amount due or purported to be due in tion, it is for an amount that the account able to the consumer, that payment trans- connection with a covered loan. lacks sufficient funds to cover. fers may be initiated solely to collect a late (A) MEANS OF TRANSFER.—A debit or with- (2) CONSECUTIVE FAILED PAYMENT TRANS- fee or returned item fee and that specifies drawal meeting the description in paragraph FERS.—For purposes of the prohibition in the highest amount for such fees that may (1) is a payment transfer regardless of the this subsection: be charged and the payment channel to be means through which the lender initiates it, (A) FIRST FAILED PAYMENT TRANSFER.—A used. including but not limited to a debit or with- failed payment transfer is the first failed (3) REQUIREMENTS AND CONDITIONS FOR OB- drawal initiated through any of the fol- payment transfer from the consumer’s ac- TAINING THE CONSUMER’S AUTHORIZATION.— lowing means: count if it meets any of the following condi- (A) IN GENERAL.—For purposes of this sub- (i) Electronic fund transfer, including a tions: section, the lender must request and obtain preauthorized electronic fund transfer as de- (i) The lender has initiated no other pay- the consumer’s authorization for additional fined in section 1005.2(k) of title 12, Code of ment transfer from the account in connec- payment transfers in accordance with the re- Federal Regulations. tion with the covered loan or any other cov- quirements and conditions in this paragraph. (ii) Signature check, regardless of whether ered loan that the consumer has with the (B) PROVISION OF PAYMENT TRANSFER TERMS the transaction is processed through the lender. TO THE CONSUMER.—The lender may request check network or another network, such as (ii) The immediately preceding payment the consumer’s authorization for additional the automated clearing house (ACH) net- transfer was successful, regardless of wheth- payment transfers no earlier than the date work. er the lender has previously initiated a first on which the lender provides to the con- (iii) Remotely created check as defined in failed payment transfer. sumer the consumer rights notice required section 229.2(fff) of title 12, Code of Federal (iii) The payment transfer is the first pay- by section 623(c). The request must include Regulations. ment transfer to fail after the lender obtains the payment transfer terms required under (iv) Remotely created payment order as de- the consumer’s authorization for additional paragraph (2)(A) and, if applicable, the state- fined in section 310.2(cc) of title 16, Code of payment transfers pursuant to subsection ment required by paragraph (2)(C). The lend- Federal Regulations. (c). er may provide the terms and statement to (v) When the lender is also the account- (B) SECOND CONSECUTIVE FAILED PAYMENT the consumer by any one of the following holder, an account-holding institution’s TRANSFER.—A failed payment transfer is the means: transfer of funds from a consumer’s account second consecutive failed payment transfer (i) In writing, by mail or in person, or in a held at the same institution, other than such from the consumer’s account if the imme- retainable form by email if the consumer has a transfer meeting the description in sub- diately preceding payment transfer was a consented to receive electronic disclosures in paragraph (B). first failed payment transfer. For purposes of this manner under section 623(a)(4) or agrees (B) CONDITIONAL EXCLUSION FOR CERTAIN this this subparagraph, a previous payment to receive the terms and statement by email TRANSFERS BY ACCOUNT-HOLDING INSTITU- transfer includes a payment transfer initi- in the course of a communication initiated TIONS.—When the lender is also the account- ated at the same time or on the same day as by the consumer in response to the consumer holder, an account-holding institution’s the failed payment transfer. rights notice required by section 623(c).

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(ii) By oral telephone communication, if (1) CLEAR AND CONSPICUOUS.—Disclosures vided that the disclosures are made available the consumer affirmatively contacts the required by this section must be clear and in English upon the consumer’s request. lender in that manner in response to the con- conspicuous. Disclosures required by this (b) PAYMENT NOTICE.— sumer rights notice required by section section may contain commonly accepted or (1) IN GENERAL.—Prior to initiating the 623(c) and agrees to receive the terms and readily understandable abbreviations. first payment withdrawal or an unusual statement in that manner in the course of, (2) IN WRITING OR ELECTRONIC DELIVERY.— withdrawal from a consumer’s account, a and as part of, the same communication. Disclosures required by this section must be lender must provide to the consumer a pay- (C) SIGNED AUTHORIZATION REQUIRED.— provided in writing or, so long as the re- ment notice in accordance with the require- (i) IN GENERAL.—For an authorization to be quirements of paragraph (4) are satisfied, ments in this subsection as applicable. valid under this subsection, it must be through electronic delivery. The disclosures (A) FIRST PAYMENT WITHDRAWAL.—The signed or otherwise agreed to by the con- must be provided in a form that can be term ‘‘first payment withdrawal’’ means the sumer in writing or electronically and in a viewed on paper or a screen, as applicable. first payment transfer scheduled to be initi- retainable format that memorializes the This paragraph is not satisfied by a disclo- ated by a lender for a particular covered payment transfer terms required under para- sure provided orally or through a recorded loan, not including a single immediate pay- graph (2)(A) and, if applicable, the statement message. ment transfer initiated at the consumer’s re- required by paragraph (2)(C). The signed au- (3) RETAINABLE.—Disclosures required by quest as defined in section 622(a)(2). thorization must be obtained from the con- this section must be provided in a retainable (B) UNUSUAL WITHDRAWAL.—The term ‘‘un- sumer no earlier than when the consumer re- form, except for electronic short notices de- usual withdrawal’’ means a payment transfer ceives the consumer rights notice required livered by mobile application or text mes- that meets one or more of the conditions de- by section 623(c) in person or electronically, sage under subsection (b) or (c). scribed in paragraph (3)(B)(iii). or the date on which the consumer receives (4) ELECTRONIC DELIVERY.—Disclosures re- (C) EXCEPTIONS.—The payment notice need the notice by mail. For purposes of this quired by this section may be provided not be provided when the lender initiates— clause, the consumer is considered to have through electronic delivery if the following (i) the initial payment transfer from a con- received the notice at the time it is provided consent requirements are satisfied: sumer’s account after obtaining consumer to the consumer in person or electronically, (A) CONSUMER CONSENT.— authorization pursuant to section 622(c), re- or, if the notice is provided by mail, the ear- (i) IN GENERAL.—Disclosures required by gardless of whether any of the conditions in lier of the third business day after mailing or this section may be provided through elec- paragraph (3)(B)(iii) apply; or the date on which the consumer affirma- tronic delivery if the consumer affirmatively (ii) a single immediate payment transfer tively responds to the mailed notice. consents in writing or electronically to the initiated at the consumer’s request in ac- cordance with section 622(a)(2). (ii) SPECIAL REQUIREMENTS FOR AUTHORIZA- particular electronic delivery method. (ii) EMAIL OPTION REQUIRED.—To obtain (2) FIRST PAYMENT WITHDRAWAL NOTICE.— TION OBTAINED BY ORAL TELEPHONE COMMU- valid consumer consent to electronic deliv- (A) TIMING.— NICATION.—If the authorization is granted in (i) MAIL.—If the lender provides the first the course of an oral telephone communica- ery under this paragraph, a lender must pro- payment withdrawal notice by mail, the tion, the lender must record the call and re- vide the consumer with the option to select lender must mail the notice no earlier than tain the recording. email as the method of electronic delivery, separate and apart from any other electronic when the lender obtains payment authoriza- (iii) MEMORIALIZATION REQUIRED.—If the delivery methods such as mobile application tion and no later than 6 business days prior authorization is granted in the course of a or text message. to initiating the transfer. recorded telephonic conversation or is other- (B) SUBSEQUENT LOSS OF CONSENT.—Not- (ii) ELECTRONIC DELIVERY.— wise not immediately retainable by the con- withstanding subparagraph (A), a lender (I) If the lender provides the first payment sumer at the time of signature, the lender must not provide disclosures required by this withdrawal notice through electronic deliv- must provide a memorialization in a section through a method of electronic deliv- ery, the lender must send the notice no ear- retainable form to the consumer by no later ery if— lier than when the lender obtains payment than the date on which the first payment (i) the consumer revokes consent to re- authorization and no later than three busi- transfer authorized by the consumer is initi- ceive disclosures through that delivery ness days prior to initiating the transfer. ated. A memorialization may be provided to method; or (II) If, after providing the first payment the consumer by email in accordance with (ii) the lender receives notification that withdrawal notice through electronic deliv- the requirements and conditions in subpara- the consumer is unable to receive disclosures ery pursuant to the timing requirements in graph (B)(i). through that delivery method at the address this subparagraph, the lender loses the con- (4) EXPIRATION OF AUTHORIZATION.—An au- or number used. sumer’s consent to receive the notice thorization obtained from a consumer pursu- (5) SEGREGATION REQUIREMENTS FOR NO- through a particular electronic delivery ant to this subsection becomes null and void TICES.—All notices required by this section method according to subsection (a)(4)(B), the for purposes of the exception in this sub- must be segregated from all other written or lender must provide notice of any future un- section if— provided materials and contain only the in- usual withdrawal, if applicable, through al- (A) the lender subsequently obtains a new formation required by this section, other ternate means. authorization from the consumer pursuant than information necessary for product iden- (iii) IN PERSON.—If the lender provides the to this subsection; or tification, branding, and navigation. Seg- first payment withdrawal notice in person, (B) two consecutive payment transfers ini- regated additional content that is not re- the lender must provide the notice no earlier tiated pursuant to the consumer’s authoriza- quired by this section must not be displayed than when the lender obtains payment au- tion fail, as specified in subsection (b). above, below, or around the required con- thorization and no later than 3 business days (d) EXCEPTION FOR INITIATING A SINGLE IM- tent. prior to initiating the transfer. MEDIATE PAYMENT TRANSFER AT THE CON- (6) MACHINE READABLE TEXT IN NOTICES PRO- (B) CONTENT REQUIREMENTS.—The notice SUMER’S REQUEST.—After a lender’s second VIDED THROUGH ELECTRONIC DELIVERY.—If must contain the following information and consecutive payment transfer has failed as provided through electronic delivery, the statements, as applicable, using language specified in subsection (b), the lender may payment notice required by subsection (b) substantially similar to the language set initiate a payment transfer from the con- and the consumer rights notice required by forth in model forms: sumer’s account without obtaining the con- subsection (c) must use machine readable (i) IDENTIFYING STATEMENT.—The state- sumer’s authorization for additional pay- text that is accessible via both web browsers ment, ‘‘Upcoming Withdrawal Notice,’’ using ment transfers pursuant to subsection (c) and screen readers. that phrase, and, in the same statement, the if— (7) MODEL FORMS.— name of the lender providing the notice. (1) the payment transfer is a single imme- (A) PAYMENT NOTICE.—The content, order, (ii) TRANSFER TERMS.— diate payment transfer at the consumer’s re- and format of the payment notice required (I) DATE.—Date that the lender will ini- quest as defined in subsection (a)(2); and by subsection (b) must be substantially simi- tiate the transfer. (2) the consumer authorizes the underlying lar to a model form. (II) AMOUNT.—Dollar amount of the trans- one-time electronic fund transfer or provides (B) CONSUMER RIGHTS NOTICE.—The con- fer. the underlying signature check to the lend- tent, order, and format of the consumer (III) CONSUMER ACCOUNT.—Sufficient infor- er, as applicable, no earlier than the date on rights notice required by subsection (c) must mation to permit the consumer to identify which the lender provides to the consumer be substantially similar to a model form. the account from which the funds will be the consumer rights notice required by sec- (C) ELECTRONIC SHORT NOTICE.—The con- transferred. The lender must not provide the tion 623(c) or on the date that the consumer tent, order, and format of the electronic complete account number of the consumer, affirmatively contacts the lender to discuss short notice required by subsection (b) must but may use a truncated version similar to repayment options, whichever date is earlier. be substantially similar to model forms. The model forms. (e) PROHIBITION AGAINST EVASION.—A lend- content, order, and format of the electronic (IV) LOAN IDENTIFICATION INFORMATION.— er must not take any action with the intent short notice required by subsection (c) must Sufficient information to permit the con- of evading the requirements of this section. be substantially similar to model forms. sumer to identify the covered loan associ- SEC. 623. DISCLOSURE OF PAYMENT TRANSFER (8) FOREIGN LANGUAGE DISCLOSURES.—Dis- ated with the transfer. ATTEMPTS. closures required under this section may be (V) PAYMENT CHANNEL.—Payment channel (a) GENERAL FORM OF DISCLOSURES.— made in a language other than English, pro- of the transfer.

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(VI) CHECK NUMBER.—If the transfer will be (i) IDENTIFYING STATEMENT.—The state- statements, as applicable, using language initiated by a signature or paper check, re- ment, ‘‘Alert: Unusual Withdrawal,’’ using substantially similar to the language in motely created check (as defined in section that phrase, and, in the same statement, the model forms: 229.2(fff) of title 12, Code of Federal Regula- name of the lender that is providing the no- (I) Varying amount, as defined under para- tions), or remotely created payment order tice. graph (3)(B)(iii)(I). (as defined in section 310.2(cc) of title 16, (ii) BASIC PAYMENT INFORMATION.—The con- (II) Date other than due date of regularly Code of Federal Regulations), the check tent required for the first withdrawal notice scheduled payment, as defined under para- number associated with the transfer. under paragraph (2)(B)(ii) through (iv) of this graph (3)(B)(iii)(II). (iii) PAYMENT BREAKDOWN.—In a tabular section. (III) Different payment channel, as defined form: (iii) DESCRIPTION OF UNUSUAL WITH- under paragraph (3)(B)(iii)(III). (I) PAYMENT BREAKDOWN HEADING.—A head- DRAWAL.—The following content, as applica- (C) EMAIL DELIVERY.—When the consumer ing with the statement ‘‘Payment Break- ble, in a form substantially similar to the has consented to receive disclosures through down,’’ using that phrase. model forms: electronic delivery, and the method of elec- (II) PRINCIPAL.—The amount of the pay- (I) VARYING AMOUNT.— tronic delivery is email, the lender may ei- ment that will be applied to principal. (aa) IN GENERAL.—If the amount of a trans- ther deliver the full notice required by para- (III) INTEREST.—The amount of the pay- fer will vary in amount from the regularly graph (1) in the body of the email or deliver ment that will be applied to accrued interest scheduled payment amount, a statement the full notice as a linked URL webpage or on the loan. that the transfer will be for a larger or PDF attachment along with the electronic (IV) FEES.—If applicable, the amount of smaller amount than the regularly scheduled short notice as provided in paragraph (4)(B). the payment that will be applied to fees. payment amount, as applicable. (c) CONSUMER RIGHTS NOTICE.— (V) OTHER CHARGES.—If applicable, the (bb) OPEN-END CREDIT.—If the payment (1) IN GENERAL.—After a lender initiates 2 amount of the payment that will be applied transfer is for open-end credit as defined in consecutive failed payment transfers from a to other charges. section 602(a)(16), the varying amount con- consumer’s account as described in section (VI) AMOUNT.—The statement ‘‘Total Pay- tent is required only if the amount deviates 622(b), the lender must provide to the con- ment Amount,’’ using that phrase, and the from the scheduled minimum payment due sumer a consumer rights notice in accord- total dollar amount of the payment as pro- as disclosed in the periodic statement re- ance with the requirements of paragraphs (2) vided in subparagraph (B)(ii)(II). quired under section 1026.7(b) of title 12, Code through (4). (VII) EXPLANATION OF INTEREST-ONLY OR of Federal Regulations. (2) TIMING.—The lender must send the no- NEGATIVELY AMORTIZING PAYMENT.—If appli- (II) DATE OTHER THAN DATE OF REGULARLY tice no later than 3 business days after it re- cable, a statement explaining that the pay- SCHEDULED PAYMENT.—If the payment trans- ceives information that the second consecu- ment will not reduce principal, using the ap- fer date is not a date on which a regularly tive attempt has failed. plicable phrase ‘‘When you make this pay- scheduled payment is due under the terms of (3) CONTENT REQUIREMENTS.—The notice ment, your principal balance will stay the the loan agreement, a statement that the must contain the following information and same and you will not be closer to paying off transfer will be initiated on a date other statements, using language substantially your loan’’ or ‘‘When you make this pay- than the date of a regularly scheduled pay- similar to the language set forth in model ment, your principal balance will increase ment. forms: and you will not be closer to paying off your (III) DIFFERENT PAYMENT CHANNEL.—If the (A) IDENTIFYING STATEMENT.—A statement loan.’’. payment channel will differ from the pay- that the lender, identified by name, is no (iv) LENDER NAME AND CONTACT INFORMA- ment channel of the transfer directly pre- longer permitted to withdraw loan payments TION.—Name of the lender, the name under ceding it, a statement that the transfer will from the consumer’s account. which the transfer will be initiated (if dif- be initiated through a different payment (B) LAST TWO ATTEMPTS WERE RETURNED.— ferent from the consumer-facing name of the channel and a statement of the payment A statement that the lender’s last two at- lender), and 3 different forms of lender con- channel used for the prior transfer. tempts to withdraw payment from the con- tact information that may be used by the (IV) FOR PURPOSE OF REINITIATING RE- sumer’s account were returned due to non- consumer to obtain information about the TURNED TRANSFER.—If the transfer is for the sufficient funds, or, if applicable to pay- consumer’s loan. purpose of reinitiating a returned transfer, a ments initiated by the consumer’s account- (3) UNUSUAL WITHDRAWAL NOTICE.— statement that the lender is reinitiating a holding institution, caused the account to go (A) TIMING.— returned transfer, a statement of the date into overdraft status. (i) MAIL.—If the lender provides the un- and amount of the previous unsuccessful at- (C) CONSUMER ACCOUNT.—Sufficient infor- usual withdrawal notice by mail, the lender tempt, and a statement of the reason for the mation to permit the consumer to identify must mail the notice no earlier than 10 busi- return. the account from which the unsuccessful ness days and no later than 6 business days (4) ELECTRONIC DELIVERY.— payment attempts were made. The lender prior to initiating the transfer. (A) IN GENERAL.—When the consumer has must not provide the complete account num- (ii) ELECTRONIC DELIVERY.— consented to receive disclosures through ber of the consumer, but may use a trun- (I) If the lender provides the unusual with- electronic delivery, the lender may provide cated version similar to model forms. drawal notice through electronic delivery, the applicable payment notice required by (D) LOAN IDENTIFICATION INFORMATION.— the lender must send the notice no earlier paragraph (b)(1) of this section through elec- Sufficient information to permit the con- than 7 business days and no later than 3 busi- tronic delivery only if it also provides an sumer to identify any covered loans associ- ness days prior to initiating the transfer. electronic short notice, except for email de- ated with the unsuccessful payment at- (II) If, after providing the unusual with- livery as provided in subparagraph (C). tempts. drawal notice through electronic delivery (B) ELECTRONIC SHORT NOTICE.— (E) STATEMENT OF FEDERAL LAW PROHIBI- pursuant to the timing requirements in (i) GENERAL CONTENT.—The electronic TION.—A statement, using that phrase, that clause (ii), the lender loses the consumer’s short notice required by this subsection in order to protect the consumer’s account, consent to receive the notice through a par- must contain the following information and Federal law prohibits the lender from initi- ticular electronic delivery method according statements, as applicable, in a form substan- ating further payment transfers without the to subsection (a)(4)(B), the lender must pro- tially similar to model forms: consumer’s permission. vide notice of any future unusual withdrawal (I) IDENTIFYING STATEMENT.—Identifying (F) CONTACT ABOUT CHOICES.—A statement attempt, if applicable, through alternate statement, as required under paragraphs that the lender may be in contact with the means. (2)(B)(i) and (3)(B)(i). consumer about payment choices going for- (iii) IN PERSON.—If the lender provides the (II) TRANSFER TERMS.— ward. unusual withdrawal notice in person, the (aa) DATE.—Date, as required under para- (G) PREVIOUS UNSUCCESSFUL PAYMENT AT- lender must provide the notice no earlier graphs (2)(B)(ii)(I) and (3)(B)(ii). TEMPTS.—In a tabular form: than 7 business days and no later than 3 busi- (bb) AMOUNT.—Amount, as required under (i) PREVIOUS PAYMENT ATTEMPTS HEADING.— ness days prior to initiating the transfer. paragraphs (2)(B)(ii)(II) and (3)(B)(ii). A heading with the statement ‘‘previous pay- (iv) EXCEPTION FOR OPEN-END CREDIT.—If (cc) CONSUMER ACCOUNT.—Consumer ac- ment attempts.’’. the unusual withdrawal notice is for open- count, as required and limited under para- (ii) PAYMENT DUE DATE.—The scheduled due end credit as defined in section 602(a)(16), the graphs (2)(B)(ii)(III) and (3)(B)(ii); and date of each previous unsuccessful payment lender may provide the unusual withdrawal (III) WEBSITE URL.—When the full notice is transfer attempted by the lender. notice in conjunction with the periodic being provided through a linked URL rather (iii) DATE OF ATTEMPT.—The date of each statement required under section 1026.7(b) of than as a PDF attachment, the unique URL previous unsuccessful payment transfer ini- title 12, Code of Federal Regulations, in ac- of a website that the consumer may use to tiated by the lender. cordance with the timing requirements of access the full payment notice required by (iv) AMOUNT.—The amount of each previous that section. this subsection. unsuccessful payment transfer initiated by (B) CONTENT REQUIREMENTS.—The unusual (ii) ADDITIONAL CONTENT REQUIREMENTS.—If the lender. withdrawal notice must contain the fol- the transfer meets any of the conditions for (v) FEES.—The fees charged by the lender lowing information and statements, as appli- unusual attempts described in paragraph for each unsuccessful payment attempt, if cable, using language substantially similar (3)(B)(iii), the electronic short notice must applicable, with an indication that these fees to the language set forth in model forms: also contain the following information and were charged by the lender.

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(H) CFPB INFORMATION.—A statement, website. The Bureau will maintain on the suant to subsection (d)(1) or a registered in- using that phrase, that the Consumer Finan- Bureau’s website a current list of informa- formation system pursuant to subsection cial Protection Bureau created this notice, a tion systems provisionally registered pursu- (c)(2) or (d)(2) only if the Bureau determines statement that the CFPB is a Federal Gov- ant to section 632(d)(1) and registered pursu- that the following conditions are satisfied: ernment agency, and the URL to ant to section 632 (c)(2) and (d)(2). In the (1) RECEIVING CAPABILITY.—The entity pos- www.consumerfinance.gov/payday-rule. This event that a provisional registration or reg- sesses the technical capability to receive in- statement must be the last piece of informa- istration of an information system is sus- formation lenders must furnish pursuant to tion provided in the notice. pended, the Bureau will provide instructions section 631 immediately upon the furnishing (4) ELECTRONIC DELIVERY.— on its website concerning the scope and of such information and uses reasonable data (A) IN GENERAL.—When the consumer has terms of the suspension. standards that facilitate the timely and ac- consented to receive disclosures through (c) INFORMATION TO BE FURNISHED.—A curate transmission and processing of infor- electronic delivery, the lender may provide lender must furnish the information de- mation in a manner that does not impose un- the consumer rights notice required by para- scribed in this subsection, at the times de- reasonable costs or burdens on lenders. graph (c) of this section through electronic scribed in this subsection, concerning each (2) REPORTING CAPABILITY.—The entity pos- delivery only if it also provides an electronic covered loan as required in subsections (a) sesses the technical capability to generate a short notice, except for email delivery as and (b). A lender must furnish the informa- consumer report containing, as applicable provided in subparagraph (C). tion in a format acceptable to each informa- for each unique consumer, all information (B) ELECTRONIC SHORT NOTICE.— tion system to which it must furnish infor- described in section 631 substantially simul- (i) CONTENT.—The notice must contain the mation. taneous to receiving the information from a following information and statements, as ap- (1) INFORMATION TO BE FURNISHED AT LOAN lender. plicable, using language substantially simi- CONSUMMATION.—A lender must furnish the (3) PERFORMANCE.—The entity will perform lar to the language set forth in model forms: following information no later than the date or performs in a manner that facilitates (I) IDENTIFYING STATEMENT.—As required on which the loan is consummated or as compliance with and furthers the purposes of under paragraph (3)(A). close in time as feasible to the date the loan this part. (II) LAST TWO ATTEMPTS WERE RETURNED.— is consummated: (4) FEDERAL CONSUMER FINANCIAL LAW COM- As required under paragraph (3)(B) of this (A) Information necessary to uniquely PLIANCE PROGRAM.—The entity has devel- section. identify the loan. oped, implemented, and maintains a program reasonably designed to ensure compliance (III) CONSUMER ACCOUNT.—As required and (B) Information necessary to allow the in- limited under paragraph (3)(C). formation system to identify the specific with all applicable Federal consumer finan- cial laws, which includes written policies and (IV) STATEMENT OF FEDERAL LAW PROHIBI- consumer(s) responsible for the loan. procedures, comprehensive training, and TION.—As required under paragraph (3)(E). (C) Whether the loan is a covered short- monitoring to detect and to promptly cor- (V) WEBSITE URL.—When the full notice is term loan or a covered longer-term balloon- rect compliance weaknesses. being provided through a linked URL rather payment loan. (5) INDEPENDENT ASSESSMENT OF FEDERAL than as a PDF attachment, the unique URL (D) Whether the loan is made under section CONSUMER FINANCIAL LAW COMPLIANCE PRO- of a website that the consumer may use to 612 or 613, as applicable. GRAM.—The entity provides to the Bureau in access the full consumer rights notice re- (E) The loan consummation date. its application for provisional registration or quired by this subsection. (F) For a loan made under section 613, the registration a written assessment of the Fed- (ii) RESERVED.— principal amount borrowed. eral consumer financial law compliance pro- (C) EMAIL DELIVERY.—When the consumer (G) For a loan that is closed-end credit— gram described in paragraph (4) and such as- has consented to receive disclosures through (i) the fact that the loan is closed-end cred- sessment— electronic delivery, and the method of elec- it; (A) sets forth a detailed summary of the tronic delivery is email, the lender may ei- (ii) the date that each payment on the loan Federal consumer financial law compliance ther deliver the full notice required by para- is due; and program that the entity has implemented graph (1) in the body of the email or deliver (iii) the amount due on each payment date. and maintains; the full notice as a linked URL webpage or (H) For a loan that is open-end credit— (B) explains how the Federal consumer fi- PDF attachment along with the electronic (i) the fact that the loan is open-end credit; nancial law compliance program is appro- short notice as provided in subparagraph (B). (ii) the credit limit on the loan; priate for the entity’s size and complexity, Subpart D—Information Furnishing, Record- (iii) the date that each payment on the the nature and scope of its activities, and keeping, Anti-Evasion, and Severability loan is due; and risks to consumers presented by such activi- (iv) the minimum amount due on each pay- SEC. 631. INFORMATION FURNISHING REQUIRE- ties; MENTS. ment date. (C) certifies that, in the opinion of the as- (a) LOANS SUBJECT TO FURNISHING REQUIRE- (2) INFORMATION TO BE FURNISHED WHILE sessor, the Federal consumer financial law MENT.—For each covered short-term loan and LOAN IS AN OUTSTANDING LOAN.—During the compliance program is operating with suffi- covered longer-term balloon-payment loan a period that the loan is an outstanding loan, cient effectiveness to provide reasonable as- lender makes, the lender must furnish the a lender must furnish any update to informa- surance that the entity is fulfilling its obli- loan information described in subsection (c) tion previously furnished pursuant to this gations under all Federal consumer financial to each information system described in sub- section within a reasonable period of the laws; and section (b)(1). event that causes the information previously (D) certifies that the assessment has been (b) INFORMATION SYSTEMS TO WHICH INFOR- furnished to be out of date. conducted by a qualified, objective, inde- MATION MUST BE FURNISHED.— (3) INFORMATION TO BE FURNISHED WHEN pendent third-party individual or entity that (1) A lender must furnish information as LOAN CEASES TO BE AN OUTSTANDING LOAN.—A uses procedures and standards generally ac- required in subsections (a) and (c) to each in- lender must furnish the following informa- cepted in the profession, adheres to profes- formation system that, as of the date the tion no later than the date the loan ceases to sional and business ethics, performs all du- loan is consummated— be an outstanding loan or as close in time as ties objectively, and is free from any con- (A) has been registered with the Bureau feasible to the date the loan ceases to be an flicts of interest that might compromise the pursuant to section 632(c)(2) for 180 days or outstanding loan: assessor’s independent judgment in per- more; or (A) The date as of which the loan ceased to forming assessments. (B) has been provisionally registered with be an outstanding loan. (6) INFORMATION SECURITY PROGRAM.—The the Bureau pursuant to section 632(d)(1) for (B) Whether all amounts owed in connec- entity has developed, implemented, and 180 days or more or subsequently has become tion with the loan were paid in full, includ- maintains a comprehensive information se- registered with the Bureau pursuant to sec- ing the amount financed, charges included in curity program that complies with the tion 632(d)(2). the cost of credit, and charges excluded from Standards for Safeguarding Customer Infor- (2) The Bureau will publish on its website the cost of credit. mation in part 314 of title 16, Code of Federal and in the Federal Register notice of the pro- SEC. 632. REGISTERED INFORMATION SYSTEMS. Regulations. visional registration of an information sys- (a) DEFINITIONS.— (7) INDEPENDENT ASSESSMENT OF INFORMA- tem pursuant to 632(d)(1), registration of an (1) CONSUMER REPORT.—The term ‘‘con- TION SECURITY PROGRAM.— information system pursuant to section 632 sumer report’’ has the same meaning as in (A) The entity provides to the Bureau in (c)(2) or (d)(2), and suspension or revocation section 603 of the Fair Credit Reporting Act its application for provisional registration or of the provisional registration or registra- (15 U.S.C. 1681a). registration and on at least a biennial basis tion of an information system pursuant to (2) FEDERAL CONSUMER FINANCIAL LAW.— thereafter, a written assessment of the infor- section 632(h). For purposes of paragraph (1), The term ‘‘Federal consumer financial law’’ mation security program described in para- an information system is provisionally reg- has the same meaning as in section 1002 of graph (6) and such assessment— istered or registered, and its provisional reg- the Consumer Financial Protection Act (12 (i) sets forth the administrative, technical, istration or registration is suspended or re- U.S.C. 5481). and physical safeguards that the entity has voked, on the date that the Bureau publishes (b) ELIGIBILITY CRITERIA FOR INFORMATION implemented and maintains; notice of such provisional registration, reg- SYSTEMS.—An entity is eligible to be a provi- (ii) explains how such safeguards are ap- istration, suspension, or revocation on its sionally registered information system pur- propriate to the entity’s size and complexity,

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The Bureau may require additional infor- wise, prior to suspension or revocation under guarding Customer Information in part 314 of mation and documentation to facilitate this subsection (h)(1) of this section, the Bureau title 16, Code of Federal Regulations; determination or otherwise to assess wheth- will provide written notice of the facts or (iv) certifies that, in the opinion of the as- er provisional registration of the entity conduct that may warrant the suspension or sessor, the information security program is would pose an unreasonable risk to con- revocation and an opportunity for the entity operating with sufficient effectiveness to sumers. or information system to demonstrate or provide reasonable assurance that the entity (2) REGISTRATION.—An information system achieve compliance with this section or oth- is fulfilling its obligations under the Stand- that is provisionally registered pursuant to erwise address the Bureau’s concerns. ards for Safeguarding Customer Information paragraph (1) shall automatically become a (4) The Bureau will revoke an entity’s pre- in part 314 of title 16, Code of Federal Regu- registered information system pursuant to liminary approval for registration, provi- lations; and this paragraph upon the expiration of the sional registration, or registration if the en- (v) certifies that the assessment has been 240-day period commencing on the date the tity submits a written request to the Bureau conducted by a qualified, objective, inde- information system is provisionally reg- that its preliminary approval, provisional pendent third-party individual or entity that istered. For purposes of this paragraph, an registration, or registration be revoked. uses procedures and standards generally ac- information system is provisionally reg- (5) For purposes of sections 612 and 613 , cepted in the profession, adheres to profes- istered on the date that the Bureau publishes suspension or revocation of an information sional and business ethics, performs all du- notice of the provisional registration on the system’s registration is effective five days ties objectively, and is free from any con- Bureau’s website. after the date that the Bureau publishes no- flicts of interest that might compromise the (e) APPLICATIONS.—Applications for pre- tice of the suspension or revocation on the assessor’s independent judgment in per- liminary approval, registration, and provi- Bureau’s website. For purposes of section forming assessments. sional registration shall be submitted in the 631(b)(1), suspension or revocation of an in- (B) Each written assessment obtained and form required by the Bureau and shall in- formation system’s provisional registration provided to the Bureau on at least a biennial clude, in addition to the information de- or registration is effective on the date that basis pursuant to subparagraph (A) must be scribed in subsection (c) or this subsection, the Bureau publishes notice of the suspen- completed and provided to the Bureau within as applicable, the following information: sion or revocation on the Bureau’s website. 60 days after the end of the period to which (1) The name under which the applicant The Bureau will also publish notice of a sus- the assessment applies. conducts business, including any ‘‘doing pension or revocation in the Federal Reg- (8) BUREAU SUPERVISORY AUTHORITY.—The business as’’ or other trade name. ister. entity acknowledges it is, or consents to (2) The applicant’s main business address, (6) In the event that a provisional registra- being, subject to the Bureau’s supervisory mailing address if it is different from the tion or registration of an information sys- authority. main business address, telephone number, tem is suspended, the Bureau will provide in- (c) REGISTRATION OF INFORMATION SYSTEMS electronic mail address, and Internet structions concerning the scope and terms of PRIOR TO AUGUST 19, 2019.— website. the suspension on its website and in the no- (1) PRELIMINARY APPROVAL.—Prior to Au- (3) The name and contact information (in- tice of suspension published in the Federal gust 19, 2019, the Bureau may preliminarily cluding telephone number and electronic Register. approve an entity for registration only if the mail address) of the person authorized to (i) ADMINISTRATIVE APPEALS.— entity submits an application for prelimi- communicate with the Bureau on the appli- (1) GROUNDS FOR ADMINISTRATIVE AP- nary approval to the Bureau by the deadline cant’s behalf concerning the application. PEALS.—An entity may appeal a determina- set forth in paragraph (3)(A) containing in- (f) DENIAL OF APPLICATION.—The Bureau tion of the Bureau that— formation sufficient for the Bureau to deter- will deny the application of an entity seek- (A) denies the application of an entity mine that the entity is reasonably likely to ing preliminary approval for registration seeking preliminary approval for registra- satisfy the conditions set forth in subsection under subsection (c)(1), registration under tion under subsection (c)(1), registration (b) by the deadline set forth in paragraph subsection (c)(2), or provisional registration under subsection (c)(2), or provisional reg- (3)(B). The assessments described in sub- under subsection (d)(1), if the Bureau deter- istration under subsection (d)(1); or section (b)(5) and (7) need not be included mines, as applicable, that— (B) suspends or revokes the entity’s pre- with an application for preliminary approval (1) the entity does not satisfy the condi- liminary approval for registration pursuant for registration or completed prior to the tions set forth in subsection (b), or, in the to subsection (c)(1), provisional registration submission of the application. The Bureau case of an entity seeking preliminary ap- pursuant to subsection (d)(1), or registration may require additional information and doc- proval for registration, is not reasonably pursuant to subsection (c)(2) or (d)(2). umentation to facilitate this determination. likely to satisfy the conditions as of the (2) TIME LIMITS FOR FILING ADMINISTRATIVE (2) REGISTRATION.—Prior to August 19, 2019, deadline set forth in subsection (c)(3)(B); APPEALS.—An appeal must be submitted on a the Bureau may approve the application of (2) the entity’s application is untimely or date that is within 30 business days of the an entity to be a registered information sys- materially inaccurate or incomplete; or date of the determination. The Bureau may tem only if— (3) preliminary approval, provisional reg- extend this time for good cause. (A) the entity received preliminary ap- istration, or registration of the entity would (3) FORM AND CONTENT OF ADMINISTRATIVE proval pursuant to paragraph (1); and pose an unreasonable risk to consumers. APPEALS.—An appeal shall be made by elec- (B) the entity submits an application to (g) NOTICE OF MATERIAL CHANGE.—An enti- tronic means as follows: the Bureau by the deadline set forth in para- ty that is a provisionally registered or reg- (A) The appeal shall be submitted as set graph (3)(B) that contains information and istered information system must provide to forth on the Bureau’s website. The appeal documentation sufficient for the Bureau to the Bureau in writing a description of any shall be labeled ‘‘Information System Reg- determine that the entity satisfies the condi- material change to information contained in istration Appeal’’. tions set forth in subsection (b). The Bureau its application for registration submitted (B) The appeal shall set forth contact in- may require additional information and doc- pursuant to subsection (c)(2) or provisional formation for the appellant including, to the umentation to facilitate this determination registration submitted pursuant to sub- extent available, a mailing address, tele- or otherwise to assess whether registration section (d)(1), or to information previously phone number, or email address at which the of the entity would pose an unreasonable provided to the Bureau pursuant to this sub- Bureau may contact the appellant regarding risk to consumers. section, within 14 days of such change. the appeal. (3) DEADLINES.— (h) SUSPENSION AND REVOCATION.—. (C) The appeal shall specify the date of the (A) The deadline to submit an application (1) The Bureau will suspend or revoke an letter of determination, and enclose a copy for preliminary approval for registration entity’s preliminary approval for registra- of the determination being appealed. pursuant to paragraph (1) is April 16, 2018. tion pursuant to subsection (c)(1), provi- (D) The appeal shall include a description (B) The deadline to submit an application sional registration pursuant to subsection of the issues in dispute, specify the legal and to be a registered information system pursu- (d)(1), or registration pursuant to subsection factual basis for appealing the determina- ant to paragraph (2) is 120 days from the date (c)(2) or (d)(2) if the Bureau determines— tion, and include appropriate supporting in- preliminary approval for registration is (A) that the entity has not satisfied or no formation. granted. longer satisfies the conditions described in (4) APPEALS PROCESS.—The filing and pend- (C) The Bureau may waive the deadlines subsection (b) or has not complied with the ency of an appeal does not by itself suspend set forth in this subsection. requirement described in subsection (g); or the determination that is the subject of the (d) REGISTRATION OF INFORMATION SYSTEMS (B) that preliminary approval, provisional appeal during the appeals process. Notwith- ON OR AFTER AUGUST 19, 2019.— registration, or registration of the entity standing the foregoing, the Bureau may, in (1) PROVISIONAL REGISTRATION.—On or after poses an unreasonable risk to consumers. its discretion, suspend the determination August 19, 2019, the Bureau may approve an (2) The Bureau may require additional in- that is the subject of the appeal during the entity to be a provisionally registered infor- formation and documentation from an entity appeals process.

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(5) DECISIONS TO GRANT OR DENY ADMINIS- tractual due date, the number of days such On page 157, line 7, strike ‘‘if’’. TRATIVE APPEALS.—The Bureau shall decide payment was past due, up to a maximum of On page 157, line 15, insert ‘‘the’’ after whether to affirm the determination (in 180 days. ‘‘for’’. whole or in part) or to reverse the deter- (E) For a loan with vehicle security: mination (in whole or in part) and shall no- Whether repossession of the vehicle was ini- SA 2184. Mr. DONNELLY (for himself tify the appellant of this decision in writing. tiated. and Ms. KLOBUCHAR) submitted an SEC. 633. COMPLIANCE PROGRAM AND RECORD (F) Date of last or final payment received. RETENTION. (G) The information listed in section amendment intended to be proposed by (a) COMPLIANCE PROGRAM.—A lender mak- 631(c)(3). him to the bill S. 2155, to promote eco- ing a covered loan must develop and follow (4) RETENTION OF RECORDS RELATING TO nomic growth, provide tailored regu- written policies and procedures that are rea- PAYMENT PRACTICES FOR COVERED LOANS.—To latory relief, and enhance consumer sonably designed to ensure compliance with comply with the requirements in this sub- protections, and for other purposes; the requirements in this part. These written section, a lender must retain or be able to re- policies and procedures must be appropriate which was ordered to lie on the table; produce an image of the following docu- as follows: to the size and complexity of the lender and mentation, as applicable, in connection with its affiliates, and the nature and scope of the a covered loan: At the end of title III, add the following: covered loan lending activities of the lender (A) Leveraged payment mechanism(s) ob- SEC. 308. BEST PRACTICES FOR HIGHER EDU- and its affiliates. tained by the lender from the consumer. CATION FINANCIAL LITERACY. (b) RECORD RETENTION.—A lender must re- (B) Authorization of additional payment tain evidence of compliance with this part Section 514(a) of the Financial Literacy transfer, as described in section 622(c)(3)(iii). for 36 months after the date on which a cov- and Education Improvement Act (20 U.S.C. (C) Underlying one-time electronic trans- ered loan ceases to be an outstanding loan. 9703(a)) is amended by adding at the end the fer authorization or underlying signature (1) RETENTION OF LOAN AGREEMENT AND DOC- following: check, as described in section 622(d)(2). UMENTATION OBTAINED IN CONNECTION WITH ‘‘(3) BEST PRACTICES FOR TEACHING FINAN- (5) ELECTRONIC RECORDS IN TABULAR FOR- ORIGINATING A COVERED SHORT-TERM OR COV- CIAL LITERACY.— MAT REGARDING PAYMENT PRACTICES FOR COV- ERED LONGER-TERM BALLOON-PAYMENT ‘‘(A) IN GENERAL.—After soliciting public ERED LOANS.—To comply with the require- LOAN.—To comply with the requirements in comments and consulting with and receiving this subsection, a lender must retain or be ments in this subsection, a lender must re- input from relevant parties, including a di- able to reproduce an image of the loan agree- tain electronic records in tabular format verse set of institutions of higher education ment and documentation obtained in connec- that include the following information for and other parties, the Commission shall, by tion with a covered short-term or covered covered loans: not later than 1 year after the date of enact- longer-term balloon-payment loan, including (A) History of payments received and at- ment of the Economic Growth, Regulatory the following documentation, as applicable: tempted payment transfers, as defined in Relief, and Consumer Protection Act, estab- (A) Consumer report from an information section 622(a)(1), including— lish best practices for institutions of higher system that has been registered for 180 days (i) date of receipt of payment or attempted education regarding methods to— or more pursuant to section 632(c)(2) or is payment transfer; ‘‘(i) teach financial literacy skills; and registered with the Bureau pursuant to sec- (ii) amount of payment due; ‘‘(ii) provide useful and necessary informa- tion 632(d)(2). (iii) amount of attempted payment trans- tion to assist students at institutions of (B) Verification evidence, as described in fer; higher education when making financial de- section 612(c)(2)(ii). (iv) amount of payment received or trans- cisions related to student borrowing. (C) Written statement obtained from the ferred; and ‘‘(B) BEST PRACTICES.—The best practices consumer, as described in section 612(c)(2)(i). (v) payment channel used for attempted described in subparagraph (A) shall include (2) ELECTRONIC RECORDS IN TABULAR FOR- payment transfer. the following: MAT REGARDING ORIGINATION CALCULATIONS (B) If an attempt to transfer funds from a ‘‘(i) Methods to ensure that each student AND DETERMINATIONS FOR A COVERED SHORT- consumer’s account is subject to the prohibi- has a clear sense of the student’s total bor- TERM OR COVERED LONGER-TERM BALLOON-PAY- tion in section 622(b)(1), whether the lender rowing obligations, including monthly pay- MENT LOAN UNDER SECTION 612.—To comply or service provider obtained authorization to ments, and repayment options. with the requirements in this subsection, a initiate a payment transfer from the con- ‘‘(ii) The most effective ways to engage lender must retain electronic records in tab- sumer in accordance with the requirements students in financial literacy education, in- ular format that include the following infor- in section 622 (c) or (d). cluding frequency and timing of communica- mation for a covered loan made under sec- SEC. 634. PROHIBITION AGAINST EVASION. tion with students. tion 612: A lender must not take any action with ‘‘(iii) Information on how to target dif- (A) The projection made by the lender of the intent of evading the requirements of ferent student populations, including part- the amount of a consumer’s net income dur- this part. time students, first-time students, and other ing the relevant monthly period. SEC. 635. SEVERABILITY. nontraditional students. (B) The projections made by the lender of The provisions of this part are separate ‘‘(iv) Ways to clearly communicate the im- the amounts of a consumer’s major financial and severable from one another. If any provi- portance of graduating on a student’s ability obligations during the relevant monthly pe- sion is stayed or determined to be invalid, to repay student loans. riod. the remaining provisions shall continue in ‘‘(C) MAINTENANCE OF BEST PRACTICES.— (C) Calculated residual income or debt-to- effect. The Commission shall maintain and periodi- income ratio during the relevant monthly cally update the best practices information period. SA 2183. Mr. CRAPO submitted an required under this paragraph and make the (D) Estimated basic living expenses for the amendment intended to be proposed to best practices available to the public. consumer during the relevant monthly pe- amendment SA 2151 proposed by Mr. ‘‘(D) RULE OF CONSTRUCTION.—Nothing in riod. this paragraph shall be construed to require CRAPO (for himself, Mr. DONNELLY, Ms. (E) Other consumer-specific information an institution of higher education to adopt considered in making the ability-to-repay HEITKAMP, Mr. TESTER, and Mr. WAR- the best practices required under this para- determination. NER) to the bill S. 2155, to promote eco- graph.’’. (3) ELECTRONIC RECORDS IN TABULAR FOR- nomic growth, provide tailored regu- MAT REGARDING TYPE, TERMS, AND PERFORM- latory relief, and enhance consumer SA 2185. Mr. SCHATZ (for himself, ANCE OF COVERED SHORT-TERM OR COVERED protections, and for other purposes; Mr. BROWN, and Mr. BLUMENTHAL) sub- LONGER-TERM BALLOON-PAYMENT LOAN.—To which was ordered to lie on the table; mitted an amendment intended to be comply with the requirements in this sub- as follows: proposed by him to the bill S. 2155, to section, a lender must retain electronic records in tabular format that include the On page 2, strike the item relating to sec- promote economic growth, provide tai- following information for a covered short- tion 214 and insert the following: lored regulatory relief, and enhance term or covered longer-term balloon-pay- Sec. 214. Promoting construction and devel- consumer protections, and for other ment loan: opment on Main Street. purposes; which was ordered to lie on (A) As applicable, the information listed in On page 67, line 15, insert ‘‘ON MAIN STREET’’ the table; as follows: section 631(c)(1)(i) through (viii) and (c)(2). after ‘‘ ’’. MENT At the appropriate place, insert the fol- (B) Whether the lender obtained vehicle se- On page 106, line 4, strike ‘‘section’’ and in- lowing: curity from the consumer. sert ‘‘subsection’’. (C) The loan number in a loan sequence of On page 151, line 15, strike ‘‘may’’ and in- SEC. ll. CREDIT LOCKS. covered short-term loans, covered longer- sert ‘‘shall’’. (a) CREDIT LOCKS.— term balloon-payment loans, or a combina- On page 156, line 6, insert ‘‘the’’ after (1) IN GENERAL.—The Fair Credit Reporting tion thereof. ‘‘for’’. Act (15 U.S.C. 1681 et seq.) is amended by in- (D) For any full payment on the loan that On page 156, line 10, strike ‘‘uses’’ and in- serting after section 605B (15 U.S.C. 1681c–2) was not received or transferred by the con- sert ‘‘use’’. the following:

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‘‘SEC. 605C. PROTECTION OF CREDIT INFORMA- vided under section 605C(a) in the case of a (A) by striking subsection (a); TION OF CONSUMERS. consumer reporting agency described in sec- (B) by redesignating subsections (b) ‘‘(a) SECURE, CONVENIENT, ACCESSIBLE, AND tion 603(p).’’; through (h) as subsections (a) through (g), COST-FREE FILE LOCKS FOR CONSUMERS.— (ii) by striking subsection (c); and respectively; ‘‘(1) IN GENERAL.—Subject to paragraph (2), (iii) by redesignating subsections (d) (C) in subsection (a), as so redesignated— each consumer reporting agency described in through (g) as subsections (c) through (f), re- (i) in the subsection heading, by striking section 603(p) shall provide to any consumer spectively; ‘‘EXTENDED’’ and inserting ‘‘FRAUD’’; and a secure, convenient, accessible, and cost- (B) in section 609(a)(1) (15 U.S.C. (ii) in paragraph (1)— free method that, with the express author- 1681g(a)(1)), by striking ‘‘request, except (I) in the matter preceding subparagraph ization of the consumer, allows that con- that—’’ and all that follows through the pe- (A), by striking ‘‘submits an identity theft sumer reporting agency to release, or pre- riod at the end of subparagraph (B) and in- report’’ and inserting ‘‘asserts in good faith vents that consumer reporting agency from serting the following: ‘‘request, without re- a suspicion that the consumer has been or is releasing, any information in the file of the gard to whether the information is held by a about to become a victim of fraud or related consumer for the purpose of— parent, subsidiary, or affiliate of the con- crime, including identity theft, or has been ‘‘(A) the marketing or extension of credit sumer reporting agency.’’; or will be harmed by the unauthorized dis- or insurance; or (C) in section 612(a)(1)(A) (15 U.S.C. closure of the financial or personally identi- ‘‘(B) opening any financial account. 1681j(a)(1)(A)), by striking ‘‘once during any fiable information of the consumer,’’; 12-month period’’; and ‘‘(2) PROHIBITIONS.—With respect to the (II) in subparagraph (A), by striking ‘‘7- (D) in section 615 (15 U.S.C. 1681m)— method described in paragraph (1)— year’’ and inserting ‘‘10-year’’; (i) by striking subsection (d); and ‘‘(A) the method may not be used by the (III) by striking subparagraph (B); (ii) by redesignating subsections (e) consumer reporting agency that provides the (IV) by redesignating subparagraph (C) as through (h) as subsections (d) through (g), method, or by any other person, to collect subparagraph (B); respectively. any information on a consumer that is not (V) in subparagraph (B), as so redesig- (2) REGULATIONS.—Not later than 18 necessary for the purposes of preventing the nated— months after the date of enactment of this release of information described in that Act, the Bureau of Consumer Financial Pro- (aa) by striking ‘‘extended’’; and paragraph; tection shall issue regulations carrying out (bb) by striking the period at the end and ‘‘(B) no information collected under the section 609(a)(1) of the Fair Credit Reporting inserting ‘‘; and’’; and method may be used for any purpose other Act (15 U.S.C. 1681g(a)(1)), as amended by (VI) by adding at the end the following: than a purpose described in subparagraph paragraph (1)(B). ‘‘(C) upon the expiration of the period de- (A); scribed in subparagraph (A), or a subsequent (3) TECHNICAL AND CONFORMING AMEND- ‘‘(C) in offering the method, a credit re- MENTS.— 10-year period, and in response to a direct re- porting agency described in section 603(p) (A) CONSUMER FINANCIAL PROTECTION ACT OF quest by the consumer or such representa- may not require a consumer to— 2010.—Section 1002(12)(F) of the Consumer Fi- tive, continue the fraud alert for an addi- ‘‘(i) waive any rights of the consumer; or nancial Protection Act of 2010 (12 U.S.C. tional period of 10 years if the consumer or ‘‘(ii) indemnify the credit reporting agency 5481(12)(F)) is amended— such representative submits an identity with respect to any liabilities that arise (i) by striking ‘‘615(e)’’ and inserting theft report.’’; from offering the method; and ‘‘615(d)’’; and (D) in subsection (b), as so redesignated— ‘‘(D) the method may not be used by any (ii) by striking ‘‘1681m(e)’’ and inserting (i) by striking paragraph (2); person to market or advertise any product or ‘‘1681m(d)’’. (ii) by redesignating paragraphs (1) and (3) service. (B) FAIR CREDIT REPORTING ACT.—The Fair as subparagraphs (A) and (B), respectively, ‘‘(3) RELEASE OF INFORMATION.—Nothing in Credit Reporting Act (15 U.S.C. 1681 et seq.) and adjusting the margins accordingly; this subsection shall affect the ability of a is amended— (iii) in the matter preceding subparagraph person with whom a consumer has an ac- (i) in section 603 (15 U.S.C. 1681a)— (A), as so redesignated, by striking ‘‘Upon count, contract, or debtor-creditor relation- (I) in subsection (d)(3), in the matter pre- the direct request’’ and inserting the fol- ship to obtain information regarding the ceding subparagraph (A), by striking ‘‘sec- lowing: consumer for the purposes of reviewing the tion 604(g)(3)’’ and inserting ‘‘section ‘‘(1) IN GENERAL.—Upon the direct re- account or collecting on the account. 604(f)(3)’’; and quest’’; and ‘‘(b) REGULATIONS.—Not later than 18 (II) in subsection (k)(1)(B)— (iv) by adding at the end the following: months after the date of enactment of this (aa) in clause (iii), by striking ‘‘section ‘‘(2) ACCESS TO FREE REPORTS.—If a con- section, the Bureau shall prescribe regula- 604(a)(3)(D)’’ and inserting ‘‘section sumer reporting agency includes an active tions carrying out this section.’’. 604(a)(3)(B)’’; and duty alert in the file of an active duty mili- (2) TABLE OF CONTENTS AMENDMENT.—The (bb) in clause (iv)(I), by striking ‘‘section tary consumer, the consumer reporting agen- table of contents for the Fair Credit Report- 604(a)(3)(F)(ii)’’ and inserting ‘‘section cy shall— ing Act (15 U.S.C. 1681 et seq.) is amended by 604(a)(3)(D)’’; ‘‘(A) disclose to the active duty military inserting after the item relating to section (ii) in section 621 (15 U.S.C. 1681s)— consumer that the active duty military con- 605B the following: (I) in subsection (b)(1), in the matter pre- sumer may request a free copy of the file of ‘‘605C. Protection of credit information of ceding subparagraph (A), by striking ‘‘per- the active duty military consumer under sec- consumers.’’. sons who furnish information to such agen- tion 612(d) during each 1-year period begin- (b) PERMISSIBLE PURPOSES OF CREDIT RE- cies, and users of information that are sub- ning on the date on which the activity duty PORTS; DISCLOSURE TO CONSUMERS.— ject to section 615(d)’’ and inserting ‘‘and military alert is requested and ending on the (1) IN GENERAL.—The Fair Credit Reporting persons who furnish information to such date of the last day that the active duty Act (15 U.S.C. 1681 et seq.) is amended— agencies’’; and alert applies to the file of the active duty (A) in section 604 (15 U.S.C. 1681b)— (II) in subsection (e)(1), in the first sen- military consumer; and (i) in subsection (a)— tence, by striking ‘‘615(e)’’ and inserting ‘‘(B) not later than 3 business days after (I) in the matter preceding paragraph (1)— ‘‘615(d)’’; the date on which the active duty military (aa) by striking ‘‘Subject to subsection (c), (iii) in section 623(c)(3) (15 U.S.C. 1681s– consumer makes a request described in sub- any’’ and inserting ‘‘Any’’; and 2(c)(3)), by striking ‘‘subsection (e)’’ and in- paragraph (A), provide to the active duty (bb) by striking ‘‘a consumer report’’ and serting ‘‘subsection (d)’’; and military consumer all disclosures required to inserting ‘‘information from the file of a (iv) in section 625(b) (15 U.S.C. 1681t(b))— be made under section 609, without charge to consumer’’; (I) in paragraph (1)— the active duty military consumer.’’; (II) in paragraph (3)— (aa) in subparagraph (A), by striking ‘‘sub- (E) by amending subsection (c), as so redes- (aa) by striking subparagraphs (A) and (C); section (c) or (e) of section 604’’ and inserting ignated, to read as follows: (bb) by redesignating subparagraph (B) as ‘‘section 604(d)’’; ‘‘(c) PROCEDURES.—Each consumer report- subparagraph (A); (bb) by striking subparagraph (D); ing agency described in section 603(p) shall (cc) by redesignating subparagraphs (D) (cc) by redesignating subparagraphs (E) establish and make available to the public through (G) as subparagraphs (B) through through (I) as subparagraphs (D) through (H), (E), respectively; and respectively; and on the Internet website of the consumer re- (dd) in subparagraph (D), as so redesig- (dd) in subparagraph (H), as so redesig- porting agency policies and procedures to nated, by striking ‘‘information—’’ and all nated, by striking ‘‘section 615(h)’’ and in- comply with this section, including policies that follows through the period at the end of serting ‘‘section 615(g)’’; and and procedures— clause (ii) and inserting the following: ‘‘in- (II) in paragraph (5)(F), by striking ‘‘(e), ‘‘(1) that inform consumers of the avail- formation to review an account to determine (f), and (g)’’ and inserting ‘‘(d), (e), and (f)’’. ability of fraud alerts, active duty alerts, or whether the consumer continues to meet the (c) ENHANCEMENT OF FRAUD ALERT PROTEC- the method provided under section 605C(a), terms of the account; or’’; and TIONS.— as applicable; (III) by adding at the end the following: (1) IN GENERAL.—Section 605A of the Fair ‘‘(2) that allow consumers to request fraud ‘‘(7) Pursuant to the express authorization Credit Reporting Act (15 U.S.C. 1681c–1) is alerts and active duty alerts in a simple and of a consumer, subject to the method pro- amended— easy manner; and

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‘‘(3) for asserting in good faith a suspicion sonable attorney’s fees (as determined by the ‘‘(2) BUREAU RULE TO ENSURE MAXIMUM POS- that the consumer has been or is about to be- court) incurred by the prevailing party dur- SIBLE ACCURACY.— come a victim of fraud or related crime, in- ing the action.’’. ‘‘(A) PROPOSED RULE.—Not later than 1 cluding identity theft, or has been or will be (B) ENFORCEMENT BY FEDERAL TRADE COM- year after the date of enactment of the Eco- harmed by the unauthorized disclosure of the MISSION.—Section 621(a)(2)(A) of the Fair nomic Growth, Regulatory Relief, and Con- financial or personally identifiable informa- Credit Reporting Act (15 U.S.C. sumer Protection Act, the Bureau shall issue tion of the consumer, for a consumer re- 1681s(a)(2)(A)) is amended— a proposed rule establishing the procedures questing a fraud alert.’’; (i) in the subparagraph heading, by strik- that a consumer reporting agency shall fol- (F) in subsection (d), as so redesignated, by ing ‘‘(A) KNOWING VIOLATIONS.—’’ and insert- low to ensure maximum possible accuracy of striking paragraphs (1), (2), and (3) and in- ing ‘‘(A) NEGLIGENT, WILLFUL, OR KNOWING all consumer reports furnished by the agency serting the following: VIOLATIONS.—’’; and in compliance with this subsection. ‘‘(1) paragraphs (1)(A), (1)(C), and (2) of sub- (ii) in the first sentence, by inserting ‘‘neg- ‘‘(B) CONSIDERATIONS.—When formulating section (a), in the case of a referral under ligent, willful, or’’ before ‘‘knowing’’. the rule required under subparagraph (A), subsection (a)(1)(B); and (2) INCREASED REQUIREMENTS FOR CONSUMER the Bureau shall consider if requiring the ‘‘(2) subsection (b)(1)(A), in the case of a re- REPORTING AGENCIES AND FURNISHERS OF IN- matching of the following information would ferral under subsection (b)(1)(B).’’; FORMATION.— improve the accuracy of consumer reports: (G) in subsection (f), as so redesignated, by (A) PROVISION AND CONSIDERATION OF DOCU- ‘‘(i) The first name and last name of a con- inserting ‘‘or has been or will be harmed by MENTATION PROVIDED BY CONSUMERS.—The sumer. the unauthorized disclosure of the financial Fair Credit Reporting Act (15 U.S.C. 1681 et ‘‘(ii) The date of birth of a consumer. or personally identifiable information of the seq.) is amended— ‘‘(iii) All 9 digits of the social security consumer,’’ after ‘‘identity theft,’’; and (i) in section 611 (15 U.S.C. 1681i)— number of a consumer. (H) in subsection (g), as so redesignated— (I) in subsection (a)— ‘‘(iv) Any other information that the Bu- (i) in paragraph (1)— (aa) in paragraph (2)— reau determines would aid in ensuring max- (I) in the paragraph heading, by striking (AA) in subparagraph (A), in the second imum possible accuracy of all consumer re- ‘‘INITIAL’’ and inserting ‘‘FRAUD ALERTS’’; sentence, by inserting ‘‘, including all docu- (II) in subparagraph (A), by striking ‘‘ini- ports furnished by consumer reporting agen- mentation provided by the consumer’’ after cies in compliance with this subsection.’’. tial’’; and ‘‘received from the consumer or reseller’’; (III) in subparagraph (B)(i), by striking ‘‘an (D) RESPONSIBILITIES OF FURNISHERS OF IN- and FORMATION TO CONSUMER REPORTING AGEN- initial’’ and inserting ‘‘a’’; and (BB) in subparagraph (B), by inserting ‘‘, (ii) in paragraph (2)— CIES.—Section 623(a)(8)(F)(i)(II) of the Fair including all documentation provided by the Credit Reporting Act (15 U.S.C. 1681s– (I) in the paragraph heading, by striking consumer,’’ after ‘‘from the consumer or the ‘‘EXTENDED’’ and inserting ‘‘FRAUD’’; 2(a)(8)(F)(i)(II)) is amended by inserting ‘‘, reseller’’; and and does not include any new or additional (II) in subparagraph (A), in the matter pre- (bb) in paragraph (4), by inserting ‘‘, in- ceding clause (i), by striking ‘‘extended’’ and information that would be relevant to a re- cluding all documentation,’’ after ‘‘relevant investigation’’ before the period at the end. inserting ‘‘fraud’’; and information’’; and (III) in subparagraph (B), by striking ‘‘an (E) DISCLOSURES TO CONSUMERS.—Section (II) in subsection (f)(2)(B)(ii), by inserting 609 of the Fair Credit Reporting Act (15 extended’’ and inserting ‘‘a’’. ‘‘, including all documentation,’’ after ‘‘rel- (2) TECHNICAL AND CONFORMING AMEND- U.S.C. 1681g) is amended— evant information’’; and (i) in subsection (a)(3)(B)— MENT.—Section 612(d) of the Fair Credit Re- (ii) in section 623 (15 U.S.C. 1681s–2)— porting Act (15 U.S.C. 1681j(d)) is amended by (I) in clause (i), by striking ‘‘and’’ at the (I) in subsection (a)(8)(E), by striking end; and striking ‘‘subsections (a)(2) and (b)(2) of sec- clause (ii) and inserting the following: tion 605A, as applicable’’ and inserting ‘‘sec- (II) by striking clause (ii) and inserting the ‘‘(ii) review and consider all relevant infor- following: tion 605A(a)(2)’’. mation, including all documentation, pro- (d) STOPPING ERRORS IN CONSUMER USE AND ‘‘(ii) the address and telephone number of vided by the consumer with the notice;’’; and REPORTING.— the person; and (II) in subsection (b)(1), by striking sub- (1) LEGAL RECOURSE FOR CONSUMERS.— ‘‘(iii) the permissible purpose of the person paragraph (B) and inserting the following: (A) INJUNCTIVE RELIEF.—The Fair Credit for obtaining the consumer report, including ‘‘(B) review and consider all relevant infor- Reporting Act (15 U.S.C. 1681 et seq.) is the specific type of credit product that is ex- mation, including all documentation, pro- amended— tended, reviewed, or collected, as described vided by the consumer reporting agency (i) in section 616 (15 U.S.C. 1681n)— in section 604(a)(3)(A).’’; under section 611(a)(2);’’. (I) in subsection (a), in the subsection (ii) in subsection (f)— (B) GATHERING AND REPORTING OF INFORMA- heading, by striking ‘‘(a) IN GENERAL.—’’ and (I) by amending paragraph (7)(A) to read as TION RELATING TO CONSUMER DISPUTES.—Sec- inserting ‘‘(a) DAMAGES.—’’; follows: tion 611 of the Fair Credit Reporting Act (15 (II) by redesignating subsections (c) and (d) ‘‘(A) supply the consumer with a credit U.S.C. 1681i) is amended by adding at the end as subsections (d) and (e), respectively; and score that— the following: (III) by inserting after subsection (b) the ‘‘(i) is derived from a credit scoring model following: ‘‘(g) GATHERING AND REPORTING OF INFOR- that is widely distributed to users by the ‘‘(c) INJUNCTIVE RELIEF.— MATION RELATING TO CONSUMER DISPUTES.— consumer reporting agency for the purpose ‘‘(1) IN GENERAL.—In addition to any other ‘‘(1) REPORTS REQUIRED.—The Bureau shall of any extension of credit or other trans- remedy under this section, a court may provide reports regarding the disputes de- action designated by the consumer who is re- award injunctive relief to require compliance scribed in subsection (a)(1) received by con- questing the credit score; or with the requirements imposed under this sumer reporting agencies in such intervals ‘‘(ii) is widely distributed to lenders of title with respect to any consumer. and to such parties as the Bureau deems ap- common consumer loan products and pre- ‘‘(2) COSTS AND ATTORNEY’S FEES.—In the propriate. dicts the future credit behavior of the con- event of any successful action for injunctive ‘‘(2) GATHERING OF INFORMATION.—The Bu- sumer; and’’; and relief under this subsection, a court may reau shall prescribe rules for the gathering (II) in paragraph (8), by inserting ‘‘, except award to the prevailing party costs and rea- of information relating to disputes described that a credit score shall be provided free of sonable attorney’s fees (as determined by the in subsection (a)(1) received by consumer re- charge to the consumer if requested in con- court) incurred by the prevailing party dur- porting agencies to be used in generating the nection with a free annual consumer report ing the action.’’; and reports under paragraph (1), including rules described in section 612(a)’’ before the period (ii) in section 617 (15 U.S.C. 1681o)— establishing— at the end; and (I) in subsection (a), in the subsection ‘‘(A) the type and format of information (iii) in subsection (g)(1)— heading, by striking ‘‘(a) IN GENERAL.—’’ and that the Bureau shall receive from each con- (I) in subparagraph (A)(ii), by striking inserting ‘‘(a) DAMAGES.—’’; sumer reporting agency; and ‘‘subparagraph (D)’’ and inserting ‘‘subpara- (II) by redesignating subsection (b) as sub- ‘‘(B) the frequency with which the Bureau graph (C)’’; section (c); and shall receive the information from consumer (II) in subparagraph (B)(ii), by striking (III) by inserting after subsection (a) the reporting agencies.’’. ‘‘consistent with subparagraph (C)’’; following: (C) ACCURACY COMPLIANCE PROCEDURES.— (III) by striking subparagraph (C); and ‘‘(b) INJUNCTIVE RELIEF.— Section 607 of the Fair Credit Reporting Act (IV) by redesignating subparagraphs (D) ‘‘(1) IN GENERAL.—In addition to any other (15 U.S.C. 1681e) is amended by striking sub- through (G) as subparagraphs (C) through remedy under this section, a court may section (b) and inserting the following: (F), respectively. award injunctive relief to require compliance ‘‘(b) ACCURACY OF REPORT.— (F) NOTIFICATION REQUIREMENTS.— with the requirements imposed under this ‘‘(1) IN GENERAL.—A consumer reporting (i) ADVERSE INFORMATION NOTIFICATION.— title with respect to any consumer. agency shall follow reasonable procedures The Fair Credit Reporting Act (15 U.S.C. 1681 ‘‘(2) COSTS AND ATTORNEY’S FEES.—In the when preparing a consumer report to ensure et seq.) is amended— event of any successful action for injunctive the maximum possible accuracy of the infor- (I) in section 612 (15 U.S.C. 1681j), by strik- relief under this subsection, a court may mation concerning the individual to whom ing subsection (b) and inserting the fol- award to the prevailing party costs and rea- the consumer report relates. lowing:

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‘‘(b) FREE DISCLOSURE AFTER NOTICE OF proposed rule to implement the disclosure ‘‘(c) UNBLOCKING A FILE.—A consumer re- ADVERSE ACTION OR OFFER OF CREDIT ON MA- requirements described in section 612(b). porting agency that compiles and maintains TERIALLY LESS FAVORABLE TERMS.— ‘‘(2) CONSIDERATIONS.—In formulating the files on consumers on a nationwide basis ‘‘(1) IN GENERAL.—Not later than 14 days rule required under paragraph (1), the Bu- shall unblock a blocked file— after the date on which a consumer reporting reau shall consider— ‘‘(1) upon request by the covered guardian agency receives a notification under sub- ‘‘(A) what information would enable con- of a minor consumer; section (a)(2) or (h)(6) of section 615, or from sumers to— ‘‘(2) if the file was blocked as a result of a a debt collection agency affiliated with the ‘‘(i) determine the reasons for which a per- material misrepresentation, including a rep- consumer reporting agency, the consumer re- son— resentation that— porting agency shall make, without charge ‘‘(I) took adverse action; or ‘‘(A) the consumer was a minor consumer to the consumer, all disclosures required in ‘‘(II) offered credit on materially less fa- when the consumer was not a minor con- accordance with the rules prescribed by the vorable terms; and sumer as of the date on which the represen- Bureau under section 609(h). ‘‘(ii) verify the accuracy of that informa- tation was made; and ‘‘(2) TRANSITION PERIOD.—During the period tion; and ‘‘(B) an individual was the covered guard- beginning on the effective date of the Stop- ‘‘(B) how to provide the information de- ian of a minor consumer when the individual ping Errors in Consumer Use and Reporting scribed in subparagraph (A) while protecting was not the covered guardian of the minor Act of 2017 and ending on the date on which consumer privacy, including procedures to consumer as of the date on which the rep- the Bureau finalizes the rule required under ensure that the information is provided to resentation was made; section 609(h), a consumer reporting agency the consumer at the appropriate address.’’. ‘‘(3) on the date of the 16th birthday of the that is required to make disclosures under (3) REGULATORY REFORM.—Section 621 of minor consumer; or this subsection shall provide to the con- the Fair Credit Reporting Act (15 U.S.C. ‘‘(4) if the minor consumer becomes eman- sumer a copy of the current credit report on 1681s) is amended by adding at the end the cipated under the law of the State in which the consumer and any other disclosures re- following: the minor consumer resides, on the date of quired under this Act or the Stopping Errors ‘‘(h) CONSUMER REPORTING AGENCY REG- the emancipation of the minor consumer. in Consumer Use and Reporting Act of 2017, ISTRY.— ‘‘(d) REGULATIONS.—The Bureau shall pro- without charge to the consumer.’’; and ‘‘(1) ESTABLISHMENT OF REGISTRY.—Not (II) in section 615(a) (15 U.S.C. 1681m(a))— later than 180 days after the date of enact- mulgate regulations to carry out this sec- (aa) by redesignating paragraphs (2), (3), ment of the Economic Growth, Regulatory tion. and (4) as paragraphs (3), (4), and (5), respec- Relief, and Consumer Protection Act, the ‘‘(e) FEES.— tively; Bureau shall establish 3 publicly available ‘‘(1) IN GENERAL.—A credit reporting agen- (bb) by inserting after paragraph (1) the registries of consumer reporting agencies, cy may charge a fair and reasonable fee, as following: including a registry that contains— determined by the Bureau, to create a ‘‘(2) direct the consumer reporting agency ‘‘(A) each consumer reporting agency that blocked file or to unblock a file. that provided the consumer report that was compiles and maintains files on consumers ‘‘(2) EXEMPTION.—The Bureau may exempt used in the decision to take the adverse ac- on a nationwide basis; an individual who suspects that the indi- tion to provide the consumer with the disclo- ‘‘(B) each nationwide specialty consumer vidual has been a victim of fraud or identity sures described in section 612(b);’’; and reporting agency; and theft from a fee described in paragraph (1). (cc) in paragraph (5), as so redesignated— ‘‘(C) all other consumer reporting agencies ‘‘(f) EXCEPTIONS.—Nothing in this section (AA) in the matter preceding subparagraph that are not included under section 603(p) or may be construed as requiring a consumer (A), by striking ‘‘of the consumer’s right’’; 603(x). reporting agency that compiles and main- (BB) by striking subparagraph (A) and in- ‘‘(2) REGISTRATION REQUIREMENT.—Each tains files on consumers on a nationwide serting the following: consumer reporting agency shall register basis to prevent a Federal, State, or local ‘‘(A) that the consumer shall receive a with a registry established by the Bureau law enforcement agency from accessing a copy of the consumer report with respect to under this subsection in a timeframe estab- blocked file.’’. the consumer, free of charge, from the con- lished by the Bureau.’’. (B) TABLE OF CONTENTS AMENDMENT.—The sumer reporting agency that furnished the (4) IDENTITY THEFT PROTECTION FOR MI- table of contents of the Fair Credit Report- consumer report; and’’; and NORS.— ing Act (15 U.S.C. 1681 et seq.) is amended by (CC) in subparagraph (B), by inserting ‘‘of (A) IN GENERAL.—The Fair Credit Report- inserting after the item relating to section the right of the consumer’’ before ‘‘to dis- ing Act (15 U.S.C. 1681 et seq.) is amended by 605B the following: pute’’. inserting after section 605B (15 U.S.C. 1681c– (ii) NOTIFICATION IN CASES OF LESS FAVOR- 2) the following: ‘‘605C. Additional protections for credit re- ports of minor consumers.’’. ABLE TERMS.—Section 615(h) of the Fair Cred- ‘‘SEC. 605C. ADDITIONAL PROTECTIONS FOR it Reporting Act (15 U.S.C. 1681m(h)) is CREDIT REPORTS OF MINOR CON- (5) STUDY OF A PUBLIC CREDIT REPORTING amended— SUMERS. SYSTEM.— (I) in paragraph (1), by striking ‘‘paragraph ‘‘(a) DEFINITIONS.—In this section— (A) STUDY.—Not later than 180 days after (6)’’ and inserting ‘‘paragraph (7)’’; ‘‘(1) the term ‘blocked file’ means a file of the date of enactment of this Act, the Comp- (II) in paragraph (2), by striking ‘‘para- a minor consumer with respect to which, troller General of the United States shall graph (6)’’ and inserting ‘‘paragraph (7)’’; under this section, a consumer reporting conduct a study— (III) in paragraph (5)(C), by striking ‘‘may agency— (i) of credit systems in the international obtain’’ and inserting ‘‘shall receive’’; ‘‘(A) maintains with the name, social secu- credit system with government-administered (IV) by redesignating paragraphs (6), (7), rity number, date of birth, and, if applicable, consumer credit reporting systems; and (8) as paragraphs (7), (8), and (9), respec- any credit information of the minor con- (ii) of available information regarding the tively; and sumer; accuracy of government-administered con- (V) by inserting after paragraph (5) the fol- ‘‘(B) may not provide any person with a sumer credit reporting systems that are in lowing: consumer report of the minor consumer; and existence as of the date on which the Comp- ‘‘(6) REPORTS PROVIDED TO CONSUMERS.—A ‘‘(C) blocks the input of any information, troller General begins conducting the study; person who uses a consumer report as de- except with permission from a covered (iii) to evaluate the feasibility of a na- scribed in paragraph (1) shall notify and di- guardian of the minor consumer; tional, government-administered consumer rect the consumer reporting agency that pro- ‘‘(2) the term ‘covered guardian’ means— credit reporting system; vided the consumer report to provide the ‘‘(A) the legal guardian of a minor child; (iv) of any consumer benefits that might consumer with the disclosures described in ‘‘(B) the custodian of a minor child; or reasonably be expected to result from a gov- section 612(b).’’. ‘‘(C) in the case of a child in foster care, ernment-administered consumer credit re- (iii) NOTIFICATION OF SUBSEQUENT SUBMIS- the State agency or Indian tribe or tribal or- porting system; and SIONS OF NEGATIVE INFORMATION.—Section ganization responsible for the foster care of (v) of any costs that might result from a 623(a)(7)(A)(ii) of the Fair Credit Reporting the child; and government-administered consumer credit Act (15 U.S.C. 1681s–2(a)(7)(A)(ii)) is amended ‘‘(3) the term ‘minor consumer’ means a reporting system in the United States. by striking ‘‘account, or customer’’ and in- consumer who has not attained 16 years of (B) PUBLICATION OF FINDINGS.—Not later serting ‘‘or account’’. age. than 18 months after the date of enactment (iv) BUREAU RULE DEFINING CERTAIN DISCLO- ‘‘(b) BLOCKING A FILE.—A consumer report- of this Act, the Comptroller General of the SURE REQUIREMENTS.—Section 609 of the Fair ing agency that compiles and maintains files United States shall publish the findings of Credit Reporting Act (15 U.S.C. 1681g) is on consumers on a nationwide basis shall, the study conducted under subparagraph (A). amended by adding at the end the following: upon request by, and receipt of appropriate (6) EFFECTIVE DATE.—Except as otherwise ‘‘(h) BUREAU RULE DEFINING CERTAIN DIS- proof of identity of, a minor consumer or the provided in this subsection and the amend- CLOSURE REQUIREMENTS.— covered guardian of a minor consumer— ments made by this subsection, this sub- ‘‘(1) PROPOSED RULE.—Not later than 1 year ‘‘(1) create a blocked file for the minor section and the amendments made by this after the date of enactment of the Economic consumer; or subsection shall take effect on the date that Growth, Regulatory Relief, and Consumer ‘‘(2) convert a file of the minor consumer is 180 days after the date of enactment of Protection Act, the Bureau shall publish a already in existence to a blocked file. this Act.

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE S1614 CONGRESSIONAL RECORD — SENATE March 8, 2018 submitted an amendment intended to the Administrator, at the request of the con- SA 2186. Mr. INHOFE (for himself, be proposed by him to the bill S. 2155, cern, may exclude from consideration any Mr. UDALL, Mr. CASSIDY, Mr. KENNEDY, to promote economic growth, provide expenses or expenditures for independent re- Mr. HOEVEN, and Mr. RUBIO) submitted tailored regulatory relief, and enhance search and development.’’. an amendment intended to be proposed consumer protections, and for other to amendment SA 2151 proposed by Mr. SA 2191. Mr. CARDIN submitted an purposes; which was ordered to lie on amendment intended to be proposed to CRAPO (for himself, Mr. DONNELLY, Ms. the table; as follows: HEITKAMP, Mr. TESTER, and Mr. WAR- amendment SA 2151 proposed by Mr. At the appropriate place, insert the fol- CRAPO (for himself, Mr. DONNELLY, Ms. NER) to the bill S. 2155, to promote eco- lowing: HEITKAMP, Mr. TESTER, and Mr. WAR- nomic growth, provide tailored regu- SEC. ll. REPORT ON CHILDREN’S LEAD-BASED NER) to the bill S. 2155, to promote eco- latory relief, and enhance consumer PAINT PREVENTION AND ABATE- protections, and for other purposes; MENT. nomic growth, provide tailored regu- which was ordered to lie on the table; (a) DEFINITIONS.—In this section— latory relief, and enhance consumer as follows: (1) the term ‘‘Department’’ means the De- protections, and for other purposes; At the appropriate place, insert the fol- partment of Housing and Urban Develop- which was ordered to lie on the table; lowing: ment; and as follows: (2) the term ‘‘public housing agency’’ has SEC. lll. REGULATORY RELIEF FOR BANKS At the appropriate place, insert the fol- the meaning given the term in section 3(b) of DURING DISASTERS. lowing: (a) DEFINITIONS.—In this section— the United States Housing Act of 1937 (42 U.S.C. 1437a(b)). SEC. ll. SIZE STANDARDS FOR SMALL BUSI- (1) the terms ‘‘appropriate Federal banking NESS CONCERNS. agency’’ and ‘‘depository institution’’ have (b) REPORT.—Not later than 1 year after the date of enactment of this Act, the Sec- (a) CALCULATION ON THE BASIS OF ANNUAL the meanings given those terms in section 3 AVERAGE GROSS RECEIPTS.—Section of the Federal Deposit Insurance Act (12 retary of Housing and Urban Development shall submit a report to Congress that in- 3(a)(2)(C)(ii)(II) of the Small Business Act (15 U.S.C. 1813); and U.S.C. 632(a)(2)(C)(ii)(II)) is amended by (2) the term ‘‘major disaster’’ has the cludes— (1) an overview of existing policies and en- striking ‘‘over a period of not less than 3 meaning given the term in section 102 of the years’’ and inserting ‘‘, which shall be cal- Robert T. Stafford Disaster Relief and Emer- forcement of the Department, including pub- lic outreach, relating to lead-based paint culated by using the 3 lowest annual average gency Assistance Act (42 U.S.C. 5122). gross receipts of the business concern during (b) REQUIREMENT.—Not later than 15 days hazard prevention and abatement; the preceding 5-year period’’. after the date on which the President de- (2) recommendations and best practices for (b) REGULATIONS.—Not later than 18 clares a major disaster under section 401 of the Department, public housing agencies, months after the date of enactment of this the Robert T. Stafford Disaster Relief and and landlords for improving lead-based paint Act, the Administrator of the Small Busi- Emergency Assistance Act (42 U.S.C. 5170), or hazard prevention standards and Federal not later than 15 days after a state of dis- lead prevention and abatement policies to ness Administration shall promulgate regu- aster is declared by a Governor of a State for protect the environmental health and safety lations as necessary to implement the all or part of that State, the appropriate of children, including within housing receiv- amendment made by subsection (a). Federal banking agencies shall issue guid- ing assistance from or occupied by families f ance to depository institutions located in receiving housing assistance from the De- AUTHORITY FOR COMMITTEES TO the area for which the President declared the partment; and major disaster or the Governor declared a (3) recommendations for legislation to im- MEET state of disaster, as applicable, for reducing prove lead-based paint hazard prevention and Mr. FISCHER. Mr. President, I have 8 regulatory burdens for borrowers and com- abatement. requests for committees to meet during munities in order to facilitate recovery from today’s session of the Senate. They the disaster. SA 2189. Mr. CARDIN (for himself have the approval of the Majority and (c) CONTENTS.—Guidance issued under sub- and Mr. RISCH) submitted an amend- section (b) shall include instructions from Minority leaders. the appropriate Federal banking agency con- ment intended to be proposed by him Pursuant to rule XXVI, paragraph sistent with existing flexibility for a major to the bill S. 2155, to promote economic 5(a), of the Standing Rules of the Sen- disaster declared under section 401 of the growth, provide tailored regulatory re- ate, the following committees are au- Robert T. Stafford Disaster Relief and Emer- lief, and enhance consumer protec- thorized to meet during today’s session gency Assistance Act (42 U.S.C. 5170). tions, and for other purposes; which of the Senate: was ordered to lie on the table; as fol- SA 2187. Mr. KAINE submitted an COMMITTEE ON ARMED SERVICES lows: amendment intended to be proposed to The Committee on Armed Services is amendment SA 2151 proposed by Mr. At the appropriate place, insert the fol- authorized to meet during the session lowing: CRAPO (for himself, Mr. DONNELLY, Ms. of the Senate on Thursday, March 8, SEC. ll. INDIVIDUAL SBIC LEVERAGE LIMIT IN- HEITKAMP, Mr. TESTER, and Mr. WAR- CREASE. 2018, at 9:30 a.m., to conduct a hearing. NER) to the bill S. 2155, to promote eco- Section 303(b)(2)(A)(ii) of the Small Busi- COMMITTEE ON ENERGY AND NATURAL nomic growth, provide tailored regu- ness Investment Act of 1958 (15 U.S.C. RESOURCES latory relief, and enhance consumer 683(b)(2)(A)(ii)) is amended by striking The Committee on Energy and Nat- protections, and for other purposes; ‘‘$150,000,000’’ and inserting ‘‘$175,000,000’’. ural Resources is authorized to meet which was ordered to lie on the table; SA 2190. Mr. CARDIN submitted an during the session of the Senate on as follows: Thursday, March 8, 2018, at 10 a.m., to On page 13 of the amendment, strikes lines amendment intended to be proposed to amendment SA 2151 proposed by Mr. conduct a hearing on pending legisla- 11 through 26 and insert the following: tion. ‘‘(1) CLOSED-END MORTGAGE LOANS.—With CRAPO (for himself, Mr. DONNELLY, Ms. respect to an insured depository institution HEITKAMP, Mr. TESTER, and Mr. WAR- COMMITTEE ON ENERGY AND NATURAL RESOURCES or insured credit union, the requirements of NER) to the bill S. 2155, to promote eco- paragraphs (5) and (6) of subsection (b) shall nomic growth, provide tailored regu- The Committee on Energy and Nat- not apply with respect to closed-end mort- latory relief, and enhance consumer ural Resources is authorized to meet gage loans if the insured depository institu- during the session of the Senate on tion or insured credit union originated fewer protections, and for other purposes; which was ordered to lie on the table; Thursday, March 8, 2018, at 2:30 p.m., to than 100 closed-end mortgage loans in each conduct a hearing on S. 2421, to amend of the 2 preceding calendar years. as follows: the Comprehensive Environmental Re- ‘‘(2) OPEN-END LINES OF CREDIT.—With re- At the appropriate place, insert the fol- spect to an insured depository institution or lowing: sponse, Compensation, and Liability insured credit union, the requirements of SEC. ll. EXCLUSION OF INDEPENDENT RE- Act of 1980 to provide an exemption paragraphs (5) and (6) of subsection (b) shall SEARCH AND DEVELOPMENT EX- from certain notice requirements and not apply with respect to open-end lines of PENSES FROM ANNUAL RECEIPTS. penalties for releases of hazardous sub- credit if the insured depository institution Section 3(a) of the Small Business Act (15 stances from animal waste at farms. or insured credit union originated fewer than U.S.C. 632(a)) is amended by adding at the COMMITTEE ON HEALTH, EDUCATION, LABOR, 100 open-end lines of credit in each of the 2 end the following: AND PENSION preceding calendar years. ‘‘(10) EXCLUSION OF INDEPENDENT RESEARCH AND DEVELOPMENT EXPENSES FROM RE- The Committee on Health, Edu- SA 2188. Mr. DURBIN (for himself, CEIPTS.—In determining the average annual cation, Labor, and Pension is author- Mr. DONNELLY, and Ms. DUCKWORTH) gross receipts of a small business concern, ized to meet during the session of the

VerDate Sep 11 2014 08:15 Mar 15, 2018 Jkt 079060 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\RECORD18\S08MR8.REC S08MR8 ejoyner on DSK30RV082PROD with CONG-REC-ONLINE March 8, 2018 CONGRESSIONAL RECORD — SENATE S1615 Senate on Thursday, March 8, 2018, at REMOVING OUTDATED RESTRIC- ness be closed. I further ask that fol- 10 a.m.., to conduct a hearing entitled TIONS TO ALLOW FOR JOB lowing leader remarks, the Senate re- ‘‘The Opioid Crisis: Leadership and In- GROWTH ACT sume consideration of S. 2155, and not- novation in the States.’’ Mr. MCCONNELL. Mr. President, I withstanding the provisions of rule COMMITTEE ON HEALTH, EDUCATION, LABOR, ask unanimous consent that the Com- XXII, the filing deadlines with respect AND PENSION mittee on Agriculture, Nutrition, and to the cloture motions filed during to- The Committee on Health, Edu- Forestry be discharged from further day’s session be Monday at 4:30 p.m. for cation, Labor, and Pension is author- consideration of H.R. 1177 and the Sen- first-degree amendments and 5:30 p.m. ized to meet during the session of the ate proceed to its immediate consider- for second-degree amendments; finally, Senate on Thursday, March 8, 2018, at ation. that notwithstanding the provisions of 1:30 p.m., to conduct a hearing on the The PRESIDING OFFICER. Without rule XXII, the cloture motions filed following nominations: John F. Ring, objection, it is so ordered. during today’s session ripen at 5:30 of the District of Columbia, to be a The clerk will report the bill by title. p.m. on Monday. Member of the National Labor Rela- The senior assistant legislative clerk The PRESIDING OFFICER. Is there tions Board, Frank T. Brogan, of Penn- read as follows: objection? sylvania, to be Assistant Secretary for A bill (H.R. 1177) to direct the Secretary of Without objection, it is so ordered. Elementary and Secondary Education, Agriculture to release on behalf of the and Mark Schneider, of the District of United States the condition that certain f Columbia, to be Director of the Insti- lands conveyed to the City of Old Town, tute of Education Science, both of the Maine, be used for a municipal airport, and Department of Education, Marco M. for other purposes. ADJOURNMENT UNTIL MONDAY, Rajkovich, Jr., of Kentucky, to be a There being no objection, the Senate MARCH 12, 2018, AT 4 P.M. Member of the Federal Mine Safety proceeded to consider the bill. Mr. MCCONNELL. Mr. President, if and Health Review Commission, and Mr. MCCONNELL. Mr. President, I there is no further business to come be- other pending nominations. further ask unanimous consent that fore the Senate, I ask unanimous con- SELECT COMMITTEE ON INTELLIGENCE the bill be considered read a third time sent that it stand adjourned under the The Select Committee on Intel- and passed and the motion to recon- previous order. ligence is authorized to meet during sider be considered made and laid upon There being no objection, the Senate, the session of the Senate on Thursday, the table with no intervening action or at 4:35 p.m., adjourned until Monday, March 8, 2018, at 2 p.m., to conduct a debate. March 12, 2018, at 4 p.m. hearing. The PRESIDING OFFICER. Without SUBCOMMITTEE ON PERSONNEL objection, it is so ordered. f The Subcommittee on Personnel of The bill (H.R. 1177) was ordered to a the Committee on Armed Services is third reading, was read the third time, authorized to meet during the session and passed. NOMINATIONS of the Senate on Thursday, March 8, f Executive nomination received by 2018 at 2:15 p.m. to conduct a hearing. the Senate: ORDERS FOR MONDAY, MARCH 12, SUBCOMMITTEE ON SUPERFUND, WASTE IN THE COAST GUARD MANAGEMENT, AND REGULATION OVERSIGHT 2018 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT The Subcommittee on Superfund, Mr. MCCONNELL. Mr. President, I AS COMMANDANT OF THE UNITED STATES COAST GUARD Waste Management, and Regulation ask unanimous consent that when the AND TO THE GRADE INDICATED UNDER TITLE 14, U.S.C., Oversight of the Committee on Envi- Senate completes its business today, it SECTION 44: ronment and Public Works is author- adjourn until 4 p.m., Monday, March To be admiral ized to meet during the session of the 12; further, that following the prayer VICE ADM. KARL L. SCHULTZ Senate on Thursday, March 8, 2018 at 10 and pledge, the morning hour be THE FOLLOWING NAMED OFFICER FOR APPOINTMENT AS VICE COMMANDANT, UNITED STATES COAST GUARD, a.m., to conduct a hearing entitled deemed expired, the Journal of pro- AND TO THE GRADE INDICATED UNDER TITLE 14, U.S.C., ‘‘Legislation Hearing on S. 2421, the ceedings be approved to date, the time SECTION 47: Fair Agricultural Reporting Method for the two leaders be reserved for their To be admiral Act.’’ use later in the day, and morning busi- VICE ADM. CHARLES W. RAY

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