S.Amdt. 4070

SA 4070. Mr. CORNYN 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 1304, strike line 10 and all that follows through
page 1310, line 16, and insert the following:

SEC. 1036. PROHIBITED ACTS.

It shall be unlawful for any covered person--
(1) to--
(A) advertise, market, offer, or sell a consumer financial
product or service not in conformity with this title or
applicable rules or orders issued by the Bureau;
(B) enforce, or attempt to enforce, any agreement with a
consumer (including any term or change in terms in respect of
such agreement), or impose, or attempt to impose, any fee or
charge on a consumer in connection with a consumer financial
product or service that is not in conformity with this title
or applicable rules or orders issued by the Bureau; or
(C) engage in any unfair, deceptive, or abusive act or
practice that violates this title or applicable rules or
orders issued by the Bureau,

except that no person shall be held to have violated this
paragraph solely by virtue of providing or selling time or
space to a person placing an advertisement;
(2) to fail or refuse, as required by Federal consumer
financial law, or any rule or order issued by the Bureau
thereunder--
(A) to permit access to or copying of records;
(B) to establish or maintain records; or
(C) to make reports or provide information to the Bureau;
or
(3) knowingly or recklessly to provide substantial
assistance to another person in violation of the provisions
of section 1031, or any rule or order issued thereunder, and
notwithstanding any provision of this title, the provider of
such substantial assistance shall be deemed to be in
violation of that section to the same extent as the person to
whom such assistance is provided.

SEC. 1037. EFFECTIVE DATE.

This subtitle shall take effect on the designated transfer
date.

Subtitle D--Preservation of State Law

SEC. 1041. RELATION TO STATE LAW.

(a) In General.--
(1) Rule of construction.--This title, other than sections
1044 through 1048, may not be construed as annulling,
altering, or affecting, or exempting any person subject to
the provisions of this title from complying with, the
statutes, regulations, orders, or interpretations in effect
in any State, except to the extent that any such provision of
law is inconsistent with the provisions of this title, and
then only to the extent of the inconsistency.
(2) Greater protection under state law.--For purposes of
this subsection, a statute, regulation, order, or
interpretation in effect in any State is not inconsistent
with the provisions of this title if the protection that such
statute, regulation, order, or interpretation affords to
consumers is greater than the protection provided under this
title. A determination regarding whether a statute,
regulation, order, or interpretation in effect in any State
is inconsistent with the provisions of this title may be made
by the Bureau on its own motion or in response to a
nonfrivolous petition initiated by any interested person.
(b) Relation to Other Provisions of Enumerated Consumer
Laws That Relate to State Law.--No provision of this title,
except as provided in section 1083, shall be construed as
modifying, limiting, or superseding the operation of any
provision of an enumerated consumer law that relates to the
application of a law in effect in any State with respect to
such Federal law.
(c) Additional Consumer Protection Regulations in Response
to State Action.--
(1) Notice of proposed rule required.--The Bureau shall
issue a notice of proposed rulemaking whenever a majority of
the States has enacted a resolution in support of the
establishment or modification of a consumer protection
regulation by the Bureau.
(2) Bureau considerations required for issuance of final
regulation.--Before prescribing a final regulation based upon
a notice issued pursuant to paragraph (1), the Bureau shall
take into account whether--
(A) the proposed regulation would afford greater protection
to consumers than any existing regulation;
(B) the intended benefits of the proposed regulation for
consumers would outweigh any increased costs or
inconveniences for consumers, and would not discriminate
unfairly against any category or class of consumers; and
(C) a Federal banking agency has advised that the proposed
regulation is likely to present an unacceptable safety and
soundness risk to insured depository institutions.
(3) Explanation of considerations.--The Bureau--
(A) shall include a discussion of the considerations
required in paragraph (2) in the Federal Register notice of a
final regulation prescribed pursuant to this subsection; and
(B) whenever the Bureau determines not to prescribe a final
regulation, shall publish an explanation of such
determination in the Federal Register, and provide a copy of
such explanation to each State that enacted a resolution in
support of the proposed regulation, the Committee on
Financial Services of the House of Representatives, and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
(4) Reservation of authority.--No provision of this
subsection shall be construed as limiting or restricting the
authority of the Bureau to enhance consumer protection
standards established pursuant to this title in response to
its own motion or in response to a request by any other
interested person.
(5) Rule of construction.--No provision of this subsection
shall be construed as exempting the Bureau from complying
with subchapter II of chapter 5 of title 5, United States
Code.
(6) Definition.--For purposes of this subsection, the term
``consumer protection regulation'' means a regulation that
the Bureau is authorized to prescribe under the Federal
consumer financial laws.

SEC. 1042. PRESERVATION OF ENFORCEMENT POWERS OF STATES.

(a) In General.--
(1) Action by state.--The attorney general (or the
equivalent thereof) of any State may bring a civil action in
the name of such State, as parens patriae on behalf of
natural persons residing in such State, in any district court
of the United States in that State or in State court having
jurisdiction over the defendant, to enforce provisions of
this title or regulations issued thereunder and to secure
remedies under provisions of this title or remedies otherwise
provided under other law. A State regulator may bring a civil
action or other appropriate proceeding to enforce the
provisions of this title or regulations issued thereunder
with respect to any entity that is State-chartered,
incorporated, licensed, or otherwise authorized to do
business under State law, and to secure remedies under
provisions of this title or remedies otherwise provided under
other provisions of law with respect to a State-chartered
entity.
(2) Rule of construction.--Except as provided in paragraph
(3), no provision of this title shall be construed as
modifying, limiting, or superseding the operation of any
provision of an enumerated consumer law that relates to the
authority of a State attorney general or State regulator to
enforce such Federal law.
(3) Fee structure.--
(A) In general.--Neither an attorney general of a State nor
a State regulator may enter into a contingency fee agreement
for legal services relating to a civil action or other
proceeding under this section.
(B) Definition.--For purposes of this paragraph, the term
``contingency fee agreement'' means a contract or other
agreement to provide services under which the amount or the
payment of the fee for the services is contingent in whole or
in part on the outcome of the matter for which the services
were obtained.
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