S.Amdt. 3929

SA 3929. Mr. CORKER submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail'', to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

On page 1223, line 8, strike Sec. 1017, and insert the
following:

SEC. 1017. FUNDING; PENALTIES AND FINES.

(a) Overall Operating Budget.--
(1) In general.--Eighteen months after the designated
transfer date, and annually thereafter, the Director shall
prepare an operating budget for the Bureau. The Director
shall submit the budget to the Board of Governors for
approval.
(2) Budget itemization required.--The Director shall
include in each budget submitted pursuant to paragraph (1) an
itemization of the amount of funds necessary to carry out the
functions of the Bureau, including any expenditures necessary
to address recommendations or findings of material
deficiencies by the Comptroller General of the United States.
(b) Fees and Assessments.--
(1) In general.--The Bureau shall establish, by rule,
assessment schedules, including the assessment base and
rates, applicable to nondepository covered persons described
in section 1024(a).

[[Page S3481]]

(2) Nondepository covered persons.--The assessments imposed
by the Bureau by rules established pursuant to paragraph (1)
shall, with respect to covered persons described in section
1024(a), be set to recover the costs of the Bureau in
carrying out its supervisory and enforcement responsibilities
described in section 1024.
(3) Transfer of funds from board of governors.--To the
extent that assessments do not provide funding sufficient to
meet the amount subject to the limitation in paragraph (4),
funds shall be transferred from the Board of Governors.
(4) Limitation.--The assessments imposed by the Bureau by
rules established pursuant to paragraph (1) and any funds
transferred from the Board of Governors collectively shall
not exceed 5 percent of the total operating expenses of the
Federal Reserve System, as reported in the Annual Report of
the Board of Governors for fiscal year 2006.
(c) Fund Established.--
(1) In general.--The Secretary shall establish in the
Treasury of the United States, a separate account, to be
known as the ``Consumer Financial Protection Fund'' (referred
to in this title as the ``CFP Fund''). Fees and assessments
collected under this section shall be deposited into the CFP
Fund.
(2) Rule of construction.--Any amounts deposited into the
CFP Fund may not be construed to be Government funds or
appropriated monies.
(3) No apportionment.--Any amounts deposited into the CFP
Fund shall not be subject to apportionment for the purpose of
chapter 15 of title 31, United States Code, or under any
other authority.
(4) Availability.--Funds in the CFP Fund shall be
immediately available to the Bureau and under the control of
the Bureau, and shall remain available until expended, to pay
the expenses of the Bureau in carrying out its duties and
responsibilities.
(d) Financial, Operating Plans and Forecasts.--
(1) Operating plans and forecasts.--The Director shall
provide to the Director of the Office of Management and
Budget copies of the financial operating plans and forecasts
of the Director, as prepared by the Director in the ordinary
course of the operations of the Bureau, and copies of the
quarterly reports of the financial condition and results of
operations of the Bureau, as prepared by the Director in the
ordinary course of the operations of the Bureau.
(2) Financial statements.--The Bureau shall prepare
annually a statement of--
(A) assets and liabilities and surplus or deficit;
(B) income and expenses; and
(C) sources and application of funds.
(3) Financial management systems.--The Bureau shall
implement and maintain financial management systems that
comply with Federal financial management systems requirements
and applicable Federal accounting standards.
(4) Assertion of internal controls.--The Director shall
provide to the Comptroller General of the United States an
assertion as to the effectiveness of the internal controls
that apply to financial reporting by the Bureau, using the
standards established under section 3512(c) of title 31,
United States Code.
(5) Rule of construction.--This subsection may not be
construed as implying any obligation on the part of the
Director to consult with or obtain the consent or approval of
the Director of the Office of Management and Budget with
respect to any report, plan, forecast, or other information
referred to in this subsection or any jurisdiction or
oversight over the affairs or operations of the Bureau.
(e) Audit of the Bureau.--
(1) In general.--The Comptroller General of the United
States shall annually audit the financial transactions of the
Bureau in accordance with the United States generally
accepted government auditing standards, as may be prescribed
by the Comptroller General. The audit shall be conducted at
the place or places where accounts of the Bureau are normally
kept. The representatives of the Government Accountability
Office shall have access to the personnel and to all books,
accounts, documents, papers, records (including electronic
records), reports, files, and all other papers, automated
data, things, or property belonging to or under the control
of or used or employed by the Bureau pertaining to its
financial transactions and necessary to facilitate the audit,
and such representatives shall be afforded full facilities
for verifying transactions with the balances or securities
held by depositories, fiscal agents, and custodians. All such
books, accounts, documents, records, reports, files, papers,
and property of the Bureau shall remain in possession and
custody of the Bureau. The Comptroller General may obtain and
duplicate any such books, accounts, documents, records,
working papers, automated data and files, or other
information relevant to such audit without cost to the
Comptroller General, and the right of the Comptroller General
to access to such information shall be enforceable pursuant
to section 716(c) of title 31, United States Code.
(2) Report.--
(A) Report on annual audit.--The Comptroller General shall
submit to the Congress a report of each annual audit
conducted under this subsection, which report shall--
(i) set forth the scope of the audit;
(ii) include the statement of--

(I) assets and liabilities and surplus or deficit;
(II) income and expenses; and
(III) sources and application of funds;

(iii) include any detailed findings of material
deficiencies;
(iv) include such comments and information as may be deemed
necessary to inform Congress of the financial operations and
condition of the Bureau; and
(v) be presented, together with recommendations with
respect thereto, as the Comptroller General may deem
necessary and advisable to improve the business practices of
the Bureau or correct any material deficiencies.
(B) Copies.--A copy of each report submitted under
subparagraph (A) shall be furnished to the President and to
the Bureau at the time such report is submitted to Congress.
(C) Follow-up report.--The Bureau shall submit to Congress
a report following each annual audit conducted under this
subsection that includes a detailed explanation of any
recommendations or findings of material deficiencies,
together with a corrective action plan, including a timeline,
for addressing the findings and recommendations of the
Comptroller General.
(3) Assistance and costs.--For the purpose of conducting an
audit under this subsection, the Comptroller General may, in
the discretion of the Comptroller General, employ by
contract, without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5), professional
services of firms and organizations of certified public
accountants for temporary periods or for special purposes.
Upon the request of the Comptroller General, the Director of
the Bureau shall transfer to the Government Accountability
Office from funds available, the amount requested by the
Comptroller General to cover the full costs of any audit and
report conducted by the Comptroller General under this
subsection. The Comptroller General shall credit funds
transferred to the account established for salaries and
expenses of the Government Accountability Office, and such
amount shall be available upon receipt and without fiscal
year limitation to cover the full costs of the audit and
report.
(f) Transition.--Until such time as an assessment schedule
has been established pursuant to this section and the
necessary contributions have been deposited into the CFP
Fund, the functions assigned under this section to the Bureau
shall be funded in accordance with section 1066(c).
(g) Limitation on Distribution of Funds.--
(1) In general.--None of the funds made available under
this title shall be used for or to support private litigation
or to fund political activities, nor be provided to any--
(A) organization which has been indicted for a violation
under Federal law relating to an election for Federal office;
and
(B) organization which employs any applicable individual.
(2) Applicable individuals defined.--In this subsection,
the term ``applicable individual'' means an individual who--
(A) is--
(i) employed by the organization in a permanent or
temporary capacity;
(ii) contracted or retained by the organization; or
(iii) acting on behalf of, or with the express or apparent
authority of, the organization; and
(B) has been indicted for a violation under Federal law
relating to an election for Federal office.
(h) Appearances Before Congress.--The Director of the
Bureau shall appear before the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives at semi-
annual hearings regarding the reports required under
subsection (i).
(i) Reports Required.--The Director shall, concurrent with
each semi-annual hearing referred to in subsection (a),
prepare and submit to the President and to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services.
On page 1210, strike line 1 and all that follows through
page 1211, line 19.
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