Ed Perlmutter

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Heather Kapande for her outstanding service to our community. While building her own successful small business in Jefferson County, Heather has positively influenced the small business community as a whole across the County. She began her professional career as a teacher and has continued with her legacy of serving others. Heather is an influential mentor in the community and goes the extra mile to deliver the absolute best she can to her family, friends, clients and community. Since 1999, Heather manages Nick's Pro Fitness and has helped make it into the prosperous organization it is today. In 2003, Heather took on the additional role as an international event planner. She continues to run Nick's Pro Fitness, but also has a key role at The Bastian Group planning events for businesses in the corporate and entertainment arenas. Heather has a passion and drive that her family, friends, clients and the community all benefit from. I extend my deepest congratulations to Heather Kapande for her well- deserved honor by the West Chamber serving Jefferson County. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Fran Baker for her tireless dedication and love for the community in Jefferson County. As the founder and Executive Director of the Gold Crown Enrichment Program, a free program that serves 400 kids per year which focuses on art and technology, Fran has raised over $350,000 each year to keep the program running for free. Under Fran's direction, Gold Crown Enrichment was awarded licensing for an international after school program, The Computer Clubhouse, part of a global network of tech based after school programs. While dedicating herself full time to this program, she does not take home a paycheck. In addition to being a full-time volunteer for Gold Crown, she also works in Jefferson County for other causes that support children. For nine years, Fran worked as a Title One Reading Teacher and Literacy Coach in Jefferson County. Fran has received the Jefferson Foundation Community Service Award and was named Channel 7's Everyday Hero. I extend my deepest appreciation and congratulations to Fran for her positive impact in Jefferson County and for the numerous kids she has and continues to support.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Dr. Maryanne Bach for her outstanding professional work and passion for sustainability and mentoring women and minorities. Maryanne has broken through the ``first woman barrier'' several times. She served at the Denver Federal Center as Director of Security, Safety and Law Enforcement, Director of Research and Development, and Director of Technical Services. Each of these positions were formerly never held by a woman. She was also the first female Executive Director of the President's Council of Advisors on Science and Technology. Maryanne's professional accomplishments include working with legislative and executive branches of the federal government, and directing water resources infrastructure, policies and financial actions for nine states. In addition, her Master's in Botany and Plant Ecology has helped expand conservation efforts through North America. In retirement, Maryanne has not slowed down and is giving back to her community in several capacities. She currently operates a private life coach business, serves as the Prayer Chaplain Coordinator for Unity of the Foothills at Red Rocks, and is a board member of the Evergreen Alliance for Sustainability. I extend my deepest congratulations to Dr. Maryanne Bach for receiving this honor by the West Chamber serving Jefferson County. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Dr. Lina Kulkarni Politano for her inspirational leadership and giving back to her community. Dr. Politano is board certified and a Diplomat of the American Board of Orthodontics, a distinction which less than 30 percent of orthodontists attain. With a passion for Orthodontics she began building her practice from scratch. Today she serves as a member of the American Association of Orthodontists, the Rocky Mountain Society of Orthodontists, the American Dental Association, and the Metropolitan Denver Dental Society. In addition to her work, Dr. Politano is proud to give back to the community where she grew up. She is a committed supporter of several schools' educational programs. This commitment extends to her alma mater D'Evelyn School, where she serves on the D'Evelyn Education Foundation's Board of Directors. I extend my deepest congratulations to Dr. Lina Kulkarni Politano for being honored by the West Chamber serving Jefferson County. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Emily Robinson for her countless contributions to Jefferson County. As the market president for FirstBank, Emily has helped to cultivate and mentor a team of young professionals, supporting their goals and efforts to assist them in achieving a successful future. Inspired by her self-employed parents, she found her passion and career in banking by providing support and financial resources to help business owners become successful. Her passion for helping business owners at FirstBank led her to climb the corporate ladder from trainee to market president. Emily's leadership and drive even helped benefit the bank's growth during the economic collapse of 2008. Since then, FirstBank's Lakewood and Golden locations have seen a 50 percent increase in deposits, making it one of the most successful FirstBanks in Colorado. Emily is also dedicated to enhancing the management-training program at FirstBank, having experienced first-hand the progressive programs FirstBank offers its employees. She has served on many boards throughout her career including Seniors' Resource Center, Clinic Campesina Family Health Services and The West Chamber. She has been on the Board for Community First Foundation since 2010, the inaugural year of Colorado Gives Day, which is a 24-hour online giving initiative aimed at increasing philanthropy in the state. Due to Emily's involvement, the program has raised $58.1 million for state nonprofits. She also sits on the board for The Jefferson Foundation and Arvada Economic Development. Emily was appointed by Governor Hickenlooper to serve on the State of Colorado Banking Board in 2011. I extend my deepest congratulations to Emily for her dedication, passion, and drive. She is an incredible example for all women in the workplace and in the community.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Heather Geyer for her passion for local government and commitment to her community. Heather started her career serving for seven years as the Assistant to the City Manager in Greenwood Village. She then moved to the position of Assistant to the City Manager for the City of Wheat Ridge in 2006. In her current position, Heather serves as the Administrative Services Director/Public Information Officer for the City of Wheat Ridge where she oversees the internal support services department including Human Resources, Information & Technology, Finance, Purchasing and Sales Tax. She celebrates eight years at the City of Wheat Ridge in December. Heather is also a huge believer in mentoring the next generation of women in government and is a founding member of Colorado Women Leading Government. This unique group is dedicated to advancing the role of women in local government. Heather has received numerous state and national awards for all her work. She continues to dedicate her extra time to her community as the president and budget manager of the Foothills Animal Shelter Board of Directors and as a board member for the Wheat Ridge Optimist Club. I extend my deepest congratulations to Heather for her tremendous work mentoring and giving back to her community. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Doris Stipech for her welcoming charisma and the positive influence she has bestowed upon her profession and her community through volunteerism and philanthropy. As an active member of the local community, Doris serves as a board member for civic organizations and other boards dedicated to education and economic empowerment, including the Arvada Food Bank, Women's Bean Project, Leadership Arvada, Red Rocks Community College Foundation Board, and the Center for Work, Education and Employment. Doris has even created a unique program through State Farm that honors clients on their birthday with a gift to a local non-profit. The program has raised awareness for many non-profit organizations such as Habitat for Humanity and Foothills Animal Shelter. Doris' love for learning and new experiences is one of her trademark qualities. In addition to her work in the U.S., Doris contributes her time to international leadership development. She has worked with Habitat for Humanity as a Global Village Builder in Fiji and in Northern Ireland. Doris and her family has also been a host for three Rotary exchange students. Through State Farm, she has mentored and guided new agents new to the business and remains committed to the development of young people and their future. I extend my deepest congratulations to Doris Stipech for generously giving her time and effort to non-profit organizations, as well as mentoring young people and future agents alike.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Susan Taylor for sharing her energy and passion with her community. Susan Taylor is the Executive Director of Villa Manor Care Center where she brings extensive experience and leadership to her team. Susan mentors and encourages her Villa Manor team to explore educational and professional workshops which creates an environment that brings the best possible experience for patients with complex medical conditions. Susan was proud to be recognized with the 2014 America Health Care Association/National Center for Assisted Living National Quality Award. Susan is the only person to receive this award in the national Life Care Centers of America organization. I extend my deepest congratulations to Susan Taylor for being honored by the West Chamber serving Jefferson County. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Cynthia James for her passion for helping and supporting people. With two Master Degrees in spiritual psychology and consciousness studies, Cynthia has become a transformational specialist guiding people as they make lasting changes and healing in their lives. Cynthia is a speaker, a coach, a musical performing artist and the multi-award winning author of What Will Set You Free and Revealing Your Extraordinary Essence. Through her program, Advanced Awareness Coaching, Cynthia has coached thousands of people worldwide, including high level business leaders. In 2014, Cynthia's Extraordinary Living Project was selected to be a Commitment Maker by the Clinton Health Matters Initiative. In addition to her work and her new project, she also serves as a minister in Special Ministries at Mile Hi Church in Denver, CO. I extend my deepest congratulations to Cynthia James for her well- deserved honor and the positive impact of her leadership, healing, and dedication on the lives of others across our community and the world.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Rachel T. Emmer for bringing her passion for environmental solutions and entrepreneurship to her community. Rachel traveled several paths after earning an undergraduate degree in business. She started a hotel and restaurant in Central America, selling the business in the early 90's and becoming part of a film crew recording documentaries for National Geographic, Discovery and the BBC. It was during this time she found her passion for environmental solutions. She earned an MBA in sustainability from Bainbridge Graduate Institute. One of the first ``Green'' MBA programs in the United States. Today, Rachel is the founder of the DetritusGroup which collaborates with businesses, municipalities and nonprofit organizations to build up their internal capacity and effectiveness in the area of sustainability. Rachel is also an Adjunct Faculty in the Business Department of Red Rocks Community College teaching business and entrepreneurship classes and inspiring both young students and returning adults to pursue a career in business and the development of entrepreneurship. I extend my deepest congratulations to Rachel T. Emmer for being honored by the West Chamber serving Jefferson County. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Leslie Hord for her generous spirit in giving back to her community and leading by example. Leslie has been with Citywide Banks since 1996 and has almost 35 years in the financial industry helping people with their financial needs. Her career has been exemplary. Her activities outside of her career amplify her commitment to the Jefferson County community. She serves as Vice President of The Action Center Board of Directors and will serve as President in 2015. She also serves on the Leadership Jefferson County Alumni Committee, co-chairs Justice Day for Youth Leadership Jefferson County and is a Kiwanian. On any given day you can see Leslie delivering food baskets for the Seniors' Resource Center, helping with Lakewood Scrub or participating in Colorado's Future Civic Engagement meetings. She believes in giving back to her community and leads by example. I extend my deepest congratulations to Leslie Hord for receiving this honor by the West Chamber serving Jefferson County. I have no doubt she will exhibit the same dedication and character in all her future accomplishments.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud Nancy Taylor Mason and Baby Doe's Clothing for receiving the 2014 City of Golden Mayor's Award of Excellence. The City of Golden honors Nancy Taylor Mason and her business, Baby Doe's Clothing, for their dedication and support of local artists. Celebrating its 15th anniversary, Baby Doe's is Golden's premier source for artisan items and clothing that work for the Colorado lifestyle. Since 2000, storeowner Nancy Taylor Mason has spearheaded the marketing of the very successful Annual Golden Fine Arts Festival. Additionally, the store and the staff are strong supporters of Golden schools, civic groups, charities, and local events. I extend my deepest congratulations to Nancy Taylor Mason and Baby Doe's Clothing for this well-deserved recognition by the City of Golden.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, on Friday, November 14, 2014 I was not present to vote on H.R. 5682, legislation approving the Keystone XL Pipeline. Had I been present for roll call No. 519, I would have voted ``YES.''

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I rise today to recognize and applaud the Honorable Elbra Wedgeworth on the dedication of the Elbra M. Wedgeworth Municipal Building. Elbra Wedgeworth was elected to Denver City Council in 1999 representing District 8. Serving a second term in 2003 her City Council peers unanimously elected her the Council President, serving 2003 to 2005. Through her leadership and perseverance Elbra was instrumental in the revitalization of District 8 through improvements to City Park Golf Course, the redevelopment of East Village Housing project, Mercy Hospital redevelopment, Colorado Convention Center expansion and the Blair Caldwell African-American Research Library, only to name a few. Elbra also served as the President and Chair of the Denver 2008 Convention Host Committee; her participation was instrumental in Denver being chosen to host the Democratic National Convention. The Convention itself generated over $266 million dollars in economic benefit to the State of Colorado. Elbra currently serves as the Chief Government and Community Relations Officer at Denver Health and Hospital Authority. I extend my deepest congratulations and gratitude to the Honorable Elbra Wedgeworth for her countless hours of dedication to the citizens of Colorado. Elbra's continued commitment has made our community a better place for all of us.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I thank my friend. The gentleman from California is absolutely right that to have sustainable movement of this country forward, it does take both sides of the aisle--Republican side of the aisle and Democratic side of the aisle. I would suggest to my friend that Democrats did not have control of the House, did not bring legislation, or litigation, if you will, against President Bush. And I would suggest to my friend, take a look at the number of executive orders that Ronald Reagan issued, that Bill Clinton issued, that George H. W. Bush, and George W. Bush issued, compared to President Obama. I appreciate your willingness to let me speak and just get that in. Again, I urge the passage of the Defense Production Act.

Mr. PERLMUTTER. Will the gentleman yield?

Mr. PERLMUTTER. Mr. Speaker, I yield myself such time as I may consume. I thank the gentleman from California for working on this bill and getting it reintroduced and, hopefully, today getting it passed. I thank him, too, for working with a number of us on certain provisions. When the Defense Production Act was initially enacted in 1950 in the aftermath of World War II and in the midst of the Korean war, it contained seven separate titles that granted broad authority to the President to control national economic policy. Following the Korean war, three of the Defense Production Act titles remain in effect and two of the act's titles need to be reauthorized. First, there is title I of the DPA, which authorizes the priority treatment of contracts and orders to meet urgent defense or readiness requirements. It does so by allowing the government to move to the head of a company's line of production and delivery schedule while indemnifying the company against breach of contract lawsuits by nongovernment entities. Title III is the other key provision of the law that Congress needs to reauthorize. This title empowers the President to support the private sector through the use of financial incentives, including loans, guarantees, purchase commitments, and grants to ensure that the U.S. domestic industrial base has the production capabilities that the President has determined are essential to our national security. Congress has reauthorized the DPA on a bipartisan basis approximately 50 times since its first enactment in 1950. It has been used by all administrations since President Truman during both peace and times of conflict to support the national security programs of the United States of America. The measure includes several reforms. First, the measure would restructure and refocus the Defense Production Act Committee, an interagency advisory body on the priorities and allocation authorities contained in title I. Agency heads are also required to issue and review rules that would establish the standards and procedures by which title I authorities can be used. In closing on this subject, let's be very clear. The Defense Production Act is a law of great national significance. It has been reauthorized many times. It provides powerful authorities for purposes of our national defense and security. I urge the adoption of the Defense Production Act as we have modified it. I would state, Mr. Speaker, we have other bills very similar to this that need to be acted on by the Republican majority, starting with the Export-Import Bank, which itself has been reauthorized numerous times by both parties, whoever was in the majority. Yet the Export-Import Bank is sitting there holding fire when it is a benefit--a strong benefit--to this country and to the businesses of this country so that we can be on even footing with all of the other countries competing for business around the world. Secondly, the TRIA, which is the Terrorist Risk Insurance Act, it too is sitting there without any action having been taken by the Republican majority of this Congress. It too has been reauthorized on several occasions, and it benefits this country in many ways and needs to be acted upon. But instead, the Republican majority has chosen to bring a lawsuit against the President of the United States, which has absolutely no merit, and has given their lawyers in the proposed legislation a blank check to sue the President when we have important legislation, whether it is the Export-Import Bank, terrorist risk insurance, looking at immigration issues, comprehensive immigration reform, transportation, we have many, many items that need to be addressed. But instead, we are going to take up litigation that is unheard of in the history of the United States against the President of the United States because he has taken actions when this Congress has sat silent. This bill, the Defense Production Act, I thank my friend from California for bringing it. It needs to be passed. I urge its passage. So many other things need to be passed and not just ignored in the face of doing something so political as suing the President of the United States. I urge my friend from California, I urge the Speaker to dispose of what we are supposed to take up tomorrow or Thursday in this lawsuit against the President of the United States for taking steps that we here in Congress apparently are refusing, and I would say to the Republican majority, you are refusing to bring up and have heard and voted on--transportation issues should be a bipartisan matter; immigration should be bipartisan; the Export-Import Bank which benefits our companies and our businesses and has been authorized since the 1930s, makes money for the country, that should be brought up. We should be bringing up the Terrorist Risk Insurance Act so that companies across the country know in the terrible event of another attack like we had on 9/11 that there is a backstop for them and their properties and their people. But, no, we are taking up litigation, not legislation. That is just wrong, Mr. Speaker. I can't object to it in any greater terms. It just makes no sense. It does not advance the ball for America. It doesn't advance the ball for middle America. People are looking for jobs and want to see that their kids go to college and want to have retirement security. It is just a political statement when we could be doing a lot more. This Congress can do so much more. Passage of this Defense Production Act is doing something, and I thank my friend for that. I urge its passage, and I yield back the balance of my time.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I submit the following letter of support of H.R. 5062. July 25, 2013. Re Supervisory Privilege for Nondepository Consumer Lenders Hon. Tim Johnson, Chairman, Senate Banking Committee, Washington, DC. Hon. Mike Crapo, Ranking Member, Senate Banking Committee, Washington, DC. Hon. Jeb Hensarling, Chairman, House Financial Services Committee, Washington, DC. Hon. Maxine Waters, Ranking Member, House Financial Services Committee, Washington, DC. Dear Chairmen and Ranking Members: The American Financial Services Association (``AFSA'') and the undersigned automobile finance companies ask for your support to ensure the privilege protection for state licensed and regulated nondepository consumer lenders under the jurisdiction of the Consumer Financial Protection Bureau (``CFPB'' or ``Bureau'') is fully extended to all such companies and their privileged information--regardless of which state agency happens to be their regulator. The Dodd-Frank Act and Privilege While the Dodd-Frank Act (``Act'') granted the CFPB authority to regulate and supervise a wide range of depository institutions and nondepository consumer lenders, the Act neglected to extend the historical protections over privileged information submitted to bank supervisors, during the course of supervision, to either the CFPB or certain state agencies with whom the Bureau is expected to share information and coordinate examinations. A Flawed Solution The enactment of H.R. 4014 during the 112th Congress sought to resolve the problem by amending the Federal Deposit Insurance Act (``FDI Act'') to add the CFPB to the list of federal regulators approved to share information without waiving any applicable privilege. The FDI Act also permits enumerated agencies to share privileged information with ``state bank supervisors'' without waiving privilege. However, in the case of a nondepository consumer lender, H.R. 4014 provides comprehensive protection of privilege if and only if the company does business exclusively in states where it is regulated by state bank supervisors. Nondepository consumer lenders, however, do not always fall under the jurisdiction of state bank supervisors. According to an informal survey conducted by AFSA, there are at least 15 states where a state agency other than the state bank supervisor currently has either partial or full jurisdiction over the financial activities of nonbanks doing business in that state. For example, in Texas, the Office of the Consumer Credit Commissioner regulates nondepository consumer lenders, and in Colorado, the state Attorney General regulates such entities. In addition, states periodically reorganize their regulatory regimes--raising the issue of whether a nondepository consumer lender currently under a state's banking agency would be protected if the state changes its regulatory regime in the future. We ask that nondepository consumer lenders are universally afforded the customary and historical protections of privilege when the CFPB and other regulators share such privileged information with any applicable state agency with supervisory oversight over such companies. Our goal is to provide parity among financial institutions of all types, and we do not seek to advantage any class of creditor. The Necessity of Privilege It is important to emphasize the critical role that privilege plays in supporting a more effective and transparent supervisory process between regulators and regulated entities, as effective examinations are enhanced by the privilege. Indeed, the Court of Appeals for the D.C. Circuit expounded as follows: The bank examination privilege is firmly rooted in practical necessity. Bank safety and soundness supervision is an iterative process of comment by the regulators and response by the bank. The success of the supervision therefore depends vitally upon the quality of communication between the regulated banking firm and the bank regulatory agency. This relationship is both extensive and informal. It is extensive in that bank examiners concern themselves with all manner of a bank's affairs. . . Because bank supervision is relatively informal and more or less continuous, so too must be the flow of communication between the bank and the regulatory agency Bank management must be open and forthcoming in response to the inquiries of bank examiners, and the examiners must in turn be frank in expressing their concerns about the bank. These conditions simply could not be met as well if communications between the bank and its regulators were not privileged. (Emphasis added.) We believe the same policy should apply to all consumer creditors to ensure effective and equitable examination and investigatory processes. Partial Privilege is No Privilege The CFPB operates under a rather rigid document called the Enforcement Action Process, which provides that an investigation begins with a civil investigative demand (CID), ``which can easily be 20 or 30 pages long, [and] request almost every imaginable relevant piece of documentary evidence.'' Companies typically have ten days to draft an initial response, and companies like automobile finance companies that operate under all 50 state regulatory regimes could be compelled to provide information that, while privileged in some states in which the company is licensed, would not be in other states. Once lost, privilege cannot be restored, leaving formerly privileged documents produced to the CFPB subject to discovery by third parties. Moreover, the consequences of privilege waiver can be significantly compounded if a court rules that the privilege was waived not only as to the individual document or documents actually produced to the CFPB, but as to all information relating to that subject matter. The following example illustrates the point: in responding to a CID issued by the CFPB, an automobile finance company might feel compelled to produce an otherwise privileged internal memorandum on Topic X; the CFPB shares this memorandum with non-banking regulators in States A, B and C, all of which regulate the finance company. Assume for this hypothetical that the CFPB and States A, B and C all ultimately agree with the memorandum's conclusions on Topic X, and decide to take no action against the finance company. Under the current framework, the privileged nature of that memorandum is likely lost and any private litigant can seek (and possibly obtain) production of the memorandum. This is bad enough, essentially eviscerating the privilege. Worse is the possibility that a court might conclude that not only is the privilege waived as to the memorandum, but also as to all finance company documents relating to the topic in question. Congressional Intervention is Paramount Even in an instance where the CFPB may agree to respect privilege in all states, it is unclear whether the Bureau could effectuate that protection. For example, although the CFPB promulgated a rule governing privilege, it has not addressed this particular issue regarding gaps in its statutory authority. Further, even if so inclined, it is unclear that the CFPB could assist a company attempting to defend privilege in a law suit brought by a third party attempting to discover privileged material. We note that, while the federal banking agencies had similar rules in place, Congress--believing a statute was necessary to safeguard privilege--enacted 12 U.S.C. 1828(x) to ensure that any privileged work product or protected materials that banks disclose in the course of supervision remain privileged as to all other parties. We respectfully request that the House Financial Services Committee and the Senate Banking Committee act decisively and without delay to establish parity among all lenders by advancing legislation to reaffirm full privilege protection to all types of financial institutions. Thank you for your consideration. Should you need any additional information, please contact AFSA's Executive Vice President, Bill Himpler, at (202) 466-8616 or bhimpler@afsamail.org. Sincerely, Katherine Adkins, General Counsel and Vice President, Legal & Compliance, Toyota Financial Services, Torrance, California; Stephen P. Artusi, Vice President and General Counsel, World Omni Financial Corp., Deerfield Beach, Florida; Alan Ray Hunn, General Counsel, Nissan Motor Acceptance Corporation, Franklin, Tennessee (Headquarters), Irving, Texas (Operations); Doug Johnson, Executive Vice President, Chief Legal Officer, GM Financial, Fort Worth, Texas; Katherine M. Kjolhede, Executive Vice President & General Counsel, Ford Motor Credit Company LLC, Dearborn, Michigan; Kevin McDonald, Chief Compliance Officer, General Counsel & Secretary, VW Credit, Inc., Herndon, Virginia; Catherine M. McEvilly, Compliance Officer, American Honda Finance Corporation, Torrance, California; Carol J. Moore, Vice President and Executive General Counsel, Hyundai Capital America, Irvine, California; RJ Seaward, Vice President, General Counsel, Harley- Davidson Financial Services, Chicago, Illinois; Michelle Spreitzer, General Counsel, Mercedes-Benz Financial Services, Farmington Hills, Michigan.

Mr. PERLMUTTER. Since there are no other speakers on the majority side of the aisle, I will close as well. Mr. Speaker, this is very similar to the bill we just heard. It really is trying to do two things. One, add the cooperation among Federal and State regulators and potential companies, individuals who might be under examination by those regulators, so that the individual or company who is providing information to the regulators knows that that information maintains protections and confidentiality and privilege in those respects. So we are seeking additional cooperation and additional communication. This bill that Congressman Barr and I have introduced I think gets to those two key goals. Again, the purpose is so that the regulators understand what it is that they are examining and have as much information as possible, and that they get full cooperation from those that are being examined. So I thank my friend for introducing this bill. With that, I yield back the balance of my time.

Mr. PERLMUTTER. Mr. Speaker, I first would like to introduce into the Record, speaking of Toyota, a letter dated July 14, to myself and to Mr. Barr; a letter from the Financial Services Roundtable dated July 29, 2014; a letter from Honda dated July 15; a letter from the Conference of State Bank Supervisors dated July 15; and a letter from the American Financial Services Association dated July 25. Toyota Motor North America, Inc., Washington, DC, July 14, 2014. Hon. Ed Perlmutter, Longworth House Office Building, Washington, DC. Hon. Andy Barr, Longworth House Office Building, Washington, DC. Dear Congressmen Perlmutter and Barr: On behalf of the over 30,000 Toyota Team members in the U.S., thank you for introducing H.R. 5062, the Examination and Supervisory Privilege Parity Act of 2014. We appreciate your commitment to common sense regulatory reform. Consumer access to finance is the life blood of new car sales. To maintain competitiveness, automobile manufacturers must have a strong vehicle finance division. These ``captive finance companies'', like Toyota Financial Services, provide tailored financing options to our customers, whether they be individual consumers or franchised dealers. As a captive, Toyota Financial Services exist solely to support the auto manufacturer in selling vehicles and are designed to maintain a long-term, positive, customer relationship with the consumer. As you know, the Dodd-Frank Act placed captive finance companies under the jurisdiction of the newly created Consumer Financial Protection Bureau (CFPB). However, in a technical oversight, the Act did not extend the traditional protections of privilege over nonpublic, proprietary information--often disclosed in the course of supervision--to either the CFPB or the state agencies that jointly oversee captive finance companies under the CFPB's jurisdiction. A strong supervisory privilege plays an important role in supporting an effective and open examination process. Straightforward communications between regulators and the regulated entities are critical, and are made possible by the extension of privilege. Once lost, privilege cannot be restored. H.R. 5062 corrects this oversight by simply guaranteeing that when captive finance companies produce information to the CFPB, the privileged status of that information is preserved when the CFPB shares the information with state regulation agencies. At Toyota, we support H.R. 5062 and appreciate your taking the time to learn about this issue. Sincerely, Stephen Ciccone, Group Vice President, Government Affairs.

Mr. PERLMUTTER. Mr. Speaker, I yield myself as much time as I might consume. Mr. Speaker, I rise in support of H.R. 5062, the Examination and Supervisory Privilege Parity Act, which is difficult to say, but easy to understand. It is to provide for full cooperation, discourse, and communication among regulators while, at the same time, preserving some confidentiality and protections for those whose books and records are being reviewed. I want to thank my friend, Congressman Barr, for working with me on this legislation. This legislation accomplishes two important things. First, it reduces regulatory burden by ensuring Federal regulators; the CFPB; State banking agencies; and, now, nonbank agencies may coordinate their respective examination schedules. Two, it provides parity to ensure privilege is not compromised when regulated entities turn over sensitive information to their regulators and when that information is subsequently shared among State and Federal agencies. The Dodd-Frank legislation empowered the Consumer Financial Protection Bureau to regulate, supervise, and examine providers of consumer credit and financial products. Among these companies, nonbank financial institutions are typically State-licensed, and their primary regulator is often the State banking commissioner. However, in 15 States, such entities are overseen by a nonbank agency, such as the attorney general, the Department of Consumer and Regulatory Affairs, or a dedicated consumer credit commissioner. The bill extends the same protections that apply to all consumer creditors to ensure an effective and equitable examination and investigatory process. Under the Federal Deposit Insurance Act, similar protections exist for banks which benefit from express legal protection that provides the confidence and legal certainty to turn over privileged information and documents at the request of their regulators. This protection encourages regulated entities to comply with the examinations and mitigates their anxiety about disclosing sensitive proprietary information to regulators. Sharing of information will not waive attorney-client, work product, or other privileges recognized under Federal or State law. Let me be clear, a firm cannot turn over any information to their regulators they choose to benefit from the extension of privilege and shield themselves from third-party lawsuits. Privilege of information only extends to the information requested by the regulators during the course of supervisory examinations per State and Federal law. Additionally, the bill codifies the CFPB guidance bulletin and regulation that says the ``confidential treatment of information that would provide that any person's submission of information to the Bureau in the course of the Bureau's supervisory or regulatory processes will not waive any privilege such person may claim with respect to such information.'' They go on to state that the rule is intended to ``provide protections for the confidentiality of privileged information substantively identical to the statutory provisions that apply to the submission of privileged information to the prudential regulators and State and foreign bank regulators.'' However, this bill will extend protections to nonbank State regulators, such as the attorney general in Colorado and those regulated entities. I am a strong supporter and believer in the Dodd-Frank Wall Street Reform and Consumer Protection Act, but I also know certain technical fixes need to be made. That is why I urge passage of this bill introduced by my friend, Mr. Barr. With that, I will reserve the balance of my time.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, H.R. 4626, introduced by Chairwoman Capito, aims at protecting shared information in the mortgage and financial services industry by putting safeguards on confidentiality. The bill is very simple. It applies the same confidentiality standards to information shared with State regulators regarding nondepository financial services companies that it enjoyed prior to being entered into the national mortgage licensing system, as long as that information is shared through the Nationwide Mortgage Licensing System among all mortgage regulators. In the lead-up to the financial crisis, State regulators and Congress recognized the need to oversee the mortgage industry more comprehensively and efficiently by promoting smart and efficient financial regulations to State-licensed, nonbank financial services providers. H.R. 4626 helps develop the Nationwide Mortgage Licensing System, NMLS, so that regulators retain the ability to keep track of bad actors and provide responsible mortgage providers with greater efficiency and consistency in the licensing process. H.R. 4626 does not create any additional privilege or confidentiality rights, but the SAFE Act currently provides that information shared through the Nationwide Mortgage Licensing System among mortgage industry regulators retains existing State and Federal privilege and confidentiality protections. The bill makes it so that these privileges and confidentiality protections remain as long as the information is shared with another mortgage regulator. Mr. Speaker, the bill addresses uncertainty of confidentiality by clarifying that confidential or privileged information shared through the NMLS would continue to be protected under State and Federal law. This bill will increase the cooperation--and I think this is the key piece--this bill will increase the cooperation between Federal and State regulators while ensuring that the NMLS fulfills its mission to enhance consumer protection and stability in the mortgage lending industry. This is a good bill. It should be passed by the House of Representatives. It provides for safety for the home mortgage lending system and the licensure system. It provides for cooperation between Federal regulators and State regulators while preserving confidentiality rights of folks who are part of the licensing system, so I think a number of different goals are achieved. I thank the gentlewoman from West Virginia for introducing this bill. With that, I urge its passage, and I yield back the balance of my time.

Mr. PERLMUTTER

Mr. PERLMUTTER. Mr. Chairman, to my friend from Florida, I agree, except that the world has moved, and businesses that are legal in these vast array of States should be able to operate in a businesslike fashion. They should be able to have checking accounts and credit cards and payroll accounts, instead of operating solely in cash that invites robberies, invites assault and batteries, invites tax evasion. The system--the banking system should be able to provide for that, instead of just operating in a cash setting. So we need to limit and avoid the crime that the cash invites, and we need to allow these businesses to operate in a businesslike fashion. The States and the people of those States have chosen to move forward. We should not, through the banking system, try to stop that and then create crime in its wake.

Mr. PERLMUTTER. Mr. Chairman, I would just urge the Chair, in ruling, that this does not change the law in any respect. It respects the guidance that has been promulgated by the Justice Department and the Treasury Department and does not make a change and is not outside of the rules. I would say to my friend from Florida that his point of order is incorrect, and would ask the Chair to rule that the gentleman's amendment is in order.

Mr. PERLMUTTER. Yes, I do.