H.R. 2490

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2490 Introduced in House (IH)]

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118th CONGRESS
1st Session
H. R. 2490

To amend the Consumer Financial Protection Act of 2010 to provide for 
whistleblower incentives and protection, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 6, 2023

Mr. Emmer (for himself, Mr. Donalds, Mr. Luetkemeyer, Mr. Meuser, and 
Mr. Posey) introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the Consumer Financial Protection Act of 2010 to provide for 
whistleblower incentives and protection, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``CFPB Whistleblower Incentives and 
Protection Act''.

SEC. 2. BUREAU WHISTLEBLOWER INCENTIVES AND PROTECTION.

(a) In General.--The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended by inserting after section 1017 the 
following:

``SEC. 1017A. WHISTLEBLOWER INCENTIVES AND PROTECTION.

``(a) Definitions.--In this section:
``(1) Administrative proceeding or court action.--The term 
`administrative proceeding or court action' means any judicial 
or administrative action brought by the Bureau that results in 
monetary sanctions exceeding $1,000,000.
``(2) Fund.--The term `Fund' means the `Consumer Financial 
Civil Penalty Fund' established under section 1017(d)(1).
``(3) Monetary sanctions.--The term `monetary sanctions', 
when used with respect to any administrative proceeding or 
court action means any monies, including penalties, 
disgorgement, restitution, or interest, ordered to be paid or 
other amounts of relief obtained under section 1055(a)(2).
``(4) Original information.--The term `original 
information' means information that--
``(A) is derived from the independent knowledge or 
analysis of a whistleblower;
``(B) is not known to the Bureau from any other 
source, unless the whistleblower is the original source 
of the information;
``(C) is not exclusively derived from an allegation 
made in a judicial or administrative hearing, in a 
governmental report, hearing, or from the news media, 
unless the whistleblower is a source of the 
information; and
``(D) is not exclusively derived from an allegation 
made in an audit, examination, or investigation.
``(5) Successful enforcement.--The term `successful 
enforcement', when used with respect to any administrative 
proceeding or court action, includes any settlement of such 
action.
``(6) Whistleblower.--The term `whistleblower' means any 
individual, or 2 or more individuals acting jointly, who 
provides original information relating to a violation of 
Federal consumer financial law, consistent with any rule issued 
by the Bureau under this section.
``(b) Awards.--
``(1) In general.--In any administrative proceeding or 
court action the Bureau, subject to rules prescribed by the 
Bureau and subject to subsection (c), shall pay an award or 
awards to 1 or more whistleblowers who voluntarily provided 
original information that led to the successful enforcement of 
the administrative proceeding or court action in an aggregate 
amount equal to--
``(A) not less than the greater of--
``(i) 10 percent, in total, of monetary 
sanctions imposed and collected in the 
administrative proceeding or court action; or
``(ii) $50,000; and
``(B) not more than 30 percent, in total, of such 
monetary sanctions.
``(2) Payment of awards.--Any amount paid under paragraph 
(1) shall be paid from the Fund.
``(3) Award maximum.--Notwithstanding any other provision 
in this section, the maximum award to any single whistleblower 
is limited to $5,000,000.
``(c) Determination of Amount of Award; Denial of Award.--
``(1) Determination of amount of award.--
``(A) Discretion.--The determination of the 
percentage amount of an award made under subsection (b) 
shall be in the discretion of the Bureau.
``(B) Criteria.--In determining the percentage 
amount of an award made under subsection (b), the 
Bureau shall take into consideration--
``(i) the significance of the information 
provided by the whistleblower to the successful 
enforcement of the administrative proceeding or 
court action;
``(ii) the degree of assistance provided by 
the whistleblower and any legal representative 
of the whistleblower in an administrative 
proceeding or court action;
``(iii) the programmatic interest of the 
Bureau in deterring violations of Federal 
consumer financial law (including applicable 
rules) by making awards to whistleblowers who 
provide information that leads to the 
successful enforcement of such laws; and
``(iv) such additional relevant factors as 
the Bureau may establish by rule.
``(2) Denial of award.--No award under subsection (b) may 
be made--
``(A) to any whistleblower who is, or was at the 
time the whistleblower acquired the original 
information submitted to the Bureau, a member, officer, 
or employee of an entity described in subclauses (I) 
through (V) of subsection (h)(1)(C)(i);
``(B) to any whistleblower who is convicted of a 
criminal violation related to the administrative 
proceeding or court action for which the whistleblower 
otherwise could receive an award under this section;
``(C) to any whistleblower who is found to be 
liable for the conduct in the administrative proceeding 
or court action, or a related action, for which the 
whistleblower otherwise could receive an award under 
this section;
``(D) to any whistleblower who planned and 
initiated the conduct at issue in the administrative 
proceeding or court action for which the whistleblower 
otherwise could receive an award under this section;
``(E) to any whistleblower who submits information 
to the Bureau that is based on the facts underlying the 
administrative proceeding or court action previously 
submitted by another whistleblower;
``(F) to any whistleblower who knowingly and 
willfully makes any false, fictitious, or fraudulent 
statement or representation, or who makes or uses any 
false writing or document knowing the same to contain 
any false, fictitious, or fraudulent statement or 
entry; and
``(G) to any whistleblower who fails to submit 
information to the Bureau in such form as the Bureau 
may, by rule, require.
``(d) Representation.--
``(1) Permitted representation.--Any whistleblower who 
makes a claim for an award under subsection (b) may be 
represented by counsel.
``(2) Required representation.--
``(A) In general.--Any whistleblower who 
anonymously makes a claim for an award under subsection 
(b) shall be represented by counsel if the 
whistleblower submits the information upon which the 
claim is based.
``(B) Disclosure of identity.--Prior to the payment 
of an award, a whistleblower shall disclose the 
identity of the whistleblower and provide such other 
information as the Bureau may require, directly or 
through counsel of the whistleblower.
``(e) No Contract Necessary.--No contract or other agreement with 
the Bureau is necessary for any whistleblower to receive an award under 
subsection (b), unless otherwise required by the Bureau by rule.
``(f) Appeals.--Any determination made under this section, 
including whether, to whom, or in what amount to make awards, shall be 
in the discretion of the Bureau. Any such determination, except the 
determination of the amount of an award if the award was made in 
accordance with subsection (b), may be appealed to the appropriate 
court of appeals of the United States not more than 30 days after the 
determination is issued by the Bureau. The court shall review the 
determination made by the Bureau in accordance with section 706 of 
title 5, United States Code.
``(g) Reports to Congress.--Not later than October 30 of each year, 
the Bureau shall transmit to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report on the Bureau's whistleblower 
award program under this section, including a description of the number 
of awards granted and the types of cases in which awards were granted 
during the preceding fiscal year.
``(h) Protection of Whistleblowers.--
``(1) Confidentiality.--
``(A) In general.--Except as provided in 
subparagraphs (B) and (C), the Bureau and any officer 
or employee of the Bureau, may not disclose any 
information, including information provided by a 
whistleblower to the Bureau, which could reasonably be 
expected to reveal the identity of a whistleblower, 
except in accordance with the provisions of section 
552a of title 5, United States Code, unless and until 
required to be disclosed to a defendant or respondent 
in connection with a public proceeding instituted by 
the Bureau or any entity described in subparagraph (C). 
For purposes of section 552 of title 5, United States 
Code, this paragraph shall be considered a statute 
described in subsection (b)(3)(B) of such section 552.
``(B) Effect.--Nothing in this paragraph is 
intended to limit the ability of the Attorney General 
to present such evidence to a grand jury or to share 
such evidence with potential witnesses or defendants in 
the course of an ongoing criminal investigation.
``(C) Availability to government agencies.--
``(i) In general.--Without the loss of its 
status as confidential in the hands of the 
Bureau, all information referred to in 
subparagraph (A) may, in the discretion of the 
Bureau, when determined by the Bureau to be 
necessary or appropriate, be made available 
to--
``(I) the Department of Justice;
``(II) an appropriate department or 
agency of the Federal Government, 
acting within the scope of its 
jurisdiction;
``(III) a State attorney general in 
connection with any criminal 
investigation;
``(IV) an appropriate department or 
agency of any State, acting within the 
scope of its jurisdiction; and
``(V) a foreign regulatory 
authority.
``(ii) Maintenance of information.--Each of 
the entities, agencies, or persons described in 
clause (i) shall maintain information described 
in that clause as confidential, in accordance 
with the requirements in subparagraph (A).
``(2) Rights retained.--Nothing in this section shall be 
deemed to diminish the rights, privileges, or remedies of any 
whistleblower under section 1057, any other Federal or State 
law, or under any collective bargaining agreement.
``(i) Rulemaking Authority.--The Bureau shall have the authority to 
issue such rules as may be necessary or appropriate to implement the 
provisions of this section.
``(j) Original Information.--Information submitted to the Bureau by 
a whistleblower in accordance with rules implementing this section 
shall not lose its status as original information solely because the 
whistleblower submitted such information prior to the effective date of 
such rules, provided such information was submitted after the date of 
enactment of this section.''.
(b) Clerical Amendment.--The table of contents under section 1(b) 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act is 
amended by inserting after the item relating to section 1017 the 
following:

``Sec. 1017A. Whistleblower incentives and protection.''.

SEC. 3. AMENDMENT TO THE CONSUMER FINANCIAL CIVIL PENALTY FUND.

Section 1017(d)(2) of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5497(d)(2)) is amended by striking ``under the Federal 
consumer financial laws.'' and inserting ``under the Federal consumer 
financial laws and for awards authorized under section 1017A.''.
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