12 U.S.C. § 5492 — Executive and administrative powers

Page 1945 TITLE 12—BANKS AND BANKING § 5492 1 See References in Text note below. PART A—BUREAU OF CONSUMER FINANCIAL PROTECTION § 5491. Establishment of the Bureau of Consumer Financial Protection (a) Bureau established There is established in the Federal Reserve System, an independent bureau to be known as the ‘‘Bureau of Consumer Financial Protec- tion’’, which shall regulate the offering and pro- vision of consumer financial products or services under the Federal consumer financial laws. The Bureau shall be considered an Executive agency, as defined in section 105 of title 5. Except as oth- erwise provided expressly by law, all Federal laws dealing with public or Federal contracts, property, works, officers, employees, budgets, or funds, including the provisions of chapters 5 and 7 of title 5, shall apply to the exercise of the powers of the Bureau. (b) Director and Deputy Director (1) In general There is established the position of the Di- rector, who shall serve as the head of the Bu- reau. (2) Appointment Subject to paragraph (3), the Director shall be appointed by the President, by and with the advice and consent of the Senate. (3) Qualification The President shall nominate the Director from among individuals who are citizens of the United States. (4) Compensation The Director shall be compensated at the rate prescribed for level II of the Executive Schedule under section 5313 of title 5. (5) Deputy Director There is established the position of Deputy Director, who shall— (A) be appointed by the Director; and (B) serve as acting Director in the absence or unavailability of the Director. (c) Term (1) In general The Director shall serve for a term of 5 years. (2) Expiration of term An individual may serve as Director after the expiration of the term for which ap- pointed, until a successor has been appointed and qualified. (3) Removal for cause The President may remove the Director for inefficiency, neglect of duty, or malfeasance in office. (d) Service restriction No Director or Deputy Director may hold any office, position, or employment in any Federal reserve bank, Federal home loan bank, covered person, or service provider during the period of service of such person as Director or Deputy Di- rector. (e) Offices The principal office of the Bureau shall be in the District of Columbia. The Director may es- tablish regional offices of the Bureau, including in cities in which the Federal reserve banks, or branches of such banks, are located, in order to carry out the responsibilities assigned to the Bureau under the Federal consumer financial laws. (Pub. L. 111–203, title X, § 1011, July 21, 2010, 124 Stat. 1964.) Editorial Notes CONSTITUTIONALITY For information regarding the constitutionality of provisions of subsection (c)(3) of this section, see the Table of Laws Held Unconstitutional in Whole or in Part by the Supreme Court on the Constitution Anno- tated website, constitution.congress.gov. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 111–203, title X, § 1020, formerly § 1018, July 21, 2010, 124 Stat. 1979, renumbered § 1020 by Pub. L. 117–263, div. E, title LVIII, § 5851(a)(1), Dec. 23, 2022, 136 Stat. 3433, provided that: ‘‘This subtitle [subtitle A (§§ 1011–1018), enacting this part and amending section 9702 of Title 20, Education] shall become effective on the date of enactment of this Act [July 21, 2010].’’ § 5492. Executive and administrative powers (a) Powers of the Bureau The Bureau is authorized to establish the gen- eral policies of the Bureau with respect to all executive and administrative functions, includ- ing— (1) the establishment of rules for conducting the general business of the Bureau, in a man- ner not inconsistent with this title; 1 (2) to bind the Bureau and enter into con- tracts; (3) directing the establishment and mainte- nance of divisions or other offices within the Bureau, in order to carry out the responsibil- ities under the Federal consumer financial laws, and to satisfy the requirements of other applicable law; (4) to coordinate and oversee the operation of all administrative, enforcement, and re- search activities of the Bureau; (5) to adopt and use a seal; (6) to determine the character of and the ne- cessity for the obligations and expenditures of the Bureau; (7) the appointment and supervision of per- sonnel employed by the Bureau; (8) the distribution of business among per- sonnel appointed and supervised by the Direc- tor and among administrative units of the Bu- reau; (9) the use and expenditure of funds; (10) implementing the Federal consumer fi- nancial laws through rules, orders, guidance, interpretations, statements of policy, exami- nations, and enforcement actions; and (11) performing such other functions as may be authorized or required by law. (b) Delegation of authority The Director of the Bureau may delegate to any duly authorized employee, representative, or agent any power vested in the Bureau by law. Page 1946 TITLE 12—BANKS AND BANKING § 5493 1 See References in Text note below. (c) Autonomy of the Bureau (1) Coordination with the Board of Governors Notwithstanding any other provision of law applicable to the supervision or examination of persons with respect to Federal consumer financial laws, the Board of Governors may delegate to the Bureau the authorities to ex- amine persons subject to the jurisdiction of the Board of Governors for compliance with the Federal consumer financial laws. (2) Autonomy Notwithstanding the authorities granted to the Board of Governors under the Federal Re- serve Act [12 U.S.C. 221 et seq.], the Board of Governors may not— (A) intervene in any matter or proceeding before the Director, including examinations or enforcement actions, unless otherwise specifically provided by law; (B) appoint, direct, or remove any officer or employee of the Bureau; or (C) merge or consolidate the Bureau, or any of the functions or responsibilities of the Bureau, with any division or office of the Board of Governors or the Federal reserve banks. (3) Rules and orders No rule or order of the Bureau shall be sub- ject to approval or review by the Board of Governors. The Board of Governors may not delay or prevent the issuance of any rule or order of the Bureau. (4) Recommendations and testimony No officer or agency of the United States shall have any authority to require the Direc- tor or any other officer of the Bureau to sub- mit legislative recommendations, or testi- mony or comments on legislation, to any offi- cer or agency of the United States for ap- proval, comments, or review prior to the sub- mission of such recommendations, testimony, or comments to the Congress, if such rec- ommendations, testimony, or comments to the Congress include a statement indicating that the views expressed therein are those of the Director or such officer, and do not nec- essarily reflect the views of the Board of Gov- ernors or the President. (5) Clarification of autonomy of the Bureau in legal proceedings The Bureau shall not be liable under any provision of law for any action or inaction of the Board of Governors, and the Board of Gov- ernors shall not be liable under any provision of law for any action or inaction of the Bu- reau. (Pub. L. 111–203, title X, § 1012, July 21, 2010, 124 Stat. 1965.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (a)(1), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and re- pealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. The Federal Reserve Act, referred to in subsec. (c)(2), is act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified principally to chapter 3 (§ 221 et seq.) of this title. For complete classification of this Act to the Code, see Ref- erences in Text note set out under section 226 of this title and Tables. § 5493. Administration (a) Personnel (1) Appointment (A) In general The Director may fix the number of, and appoint and direct, all employees of the Bu- reau, in accordance with the applicable pro- visions of title 5. (B) Employees of the Bureau The Director is authorized to employ at- torneys, compliance examiners, compliance supervision analysts, economists, statisti- cians, and other employees as may be deemed necessary to conduct the business of the Bureau. Unless otherwise provided ex- pressly by law, any individual appointed under this section shall be an employee as defined in section 2105 of title 5 and subject to the provisions of such title and other laws generally applicable to the employees of an Executive agency. (C) Waiver authority (i) In general In making any appointment under sub- paragraph (A), the Director may waive the requirements of chapter 33 of title 5, and the regulations implementing such chap- ter, to the extent necessary to appoint em- ployees on terms and conditions that are consistent with those set forth in section 11(1) of the Federal Reserve Act (12 U.S.C. 248(1)),1 while providing for— (I) fair, credible, and transparent methods of establishing qualification re- quirements for, recruitment for, and ap- pointments to positions; (II) fair and open competition and eq- uitable treatment in the consideration and selection of individuals to positions; (III) fair, credible, and transparent methods of assigning, reassigning, de- tailing, transferring, and promoting em- ployees. (ii) Veterans preferences In implementing this subparagraph, the Director shall comply with the provisions of section 2302(b)(11),1 regarding veterans’ preference requirements, in a manner con- sistent with that in which such provisions are applied under chapter 33 of title 5. The authority under this subparagraph to waive the requirements of that chapter 33 shall expire 5 years after July 21, 2010. (2) Compensation Notwithstanding any otherwise applicable provision of title 5 concerning compensation,