article: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Federal Trade Commission Reauthorization Act of 2008''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Authorization of appropriations. Sec. 3. Independent litigation authority. Sec. 4. Specialized administrative law judges. Sec. 5. Civil penalties for violations of the Federal Trade Commission Act. Sec. 6. Application of Federal Trade Commission Act to tax-exempt organizations. Sec. 7. Aiding and abetting a violation. Sec. 8. Permissive administrative procedure for consumer protection rules. Sec. 9. Rulemaking procedure for subprime lending mortgages and nontraditional mortgage loans. Sec. 10. Harmonizing FTC rules with banking agency rulemaking. Sec. 11. Enforcement by State attorneys general. Sec. 12. Harmonization of national do-not-call registry and effect on State laws. Sec. 13. FTC study of alcoholic beverage marketing practices. Sec. 14. Common carrier exception. SEC. 2. AUTHORIZATION OF APPROPRIATIONS. The text of section 25 of the Federal Trade Commission Act (15 U.S.C. 57c) is amended to read as follows: ``(a) In General.--There are authorized to be appropriated to carry out the functions, powers, and duties of the Commission-- ``(1) $264,000,000 for fiscal year 2009; ``(2) $290,400,000 for fiscal year 2010; ``(3) $319,400,000 for fiscal year 2011; ``(4) $351,400,000 for fiscal year 2012; ``(5) $386,500,000 for fiscal year 2013; ``(6) $425,200,000 for fiscal year 2014; and ``(7) $467,700,000 for fiscal year 2015. ``(b) Litigation and Internet Commerce Technology.--There are authorized to be appropriated to the Commission $20,000,000 for each of fiscal years 2009 through 2015 to be used by the Commission to improve technology in support of the Commission's competition and consumer protection missions. ``(c) International Technical Assistance.--From amounts appropriated pursuant to subsection (a), the Commission may spend up to $10,000,000 for each of fiscal years 2009 through 2015 to continue and enhance its provision of international technical assistance with respect to foreign consumer protection and competition regimes.''. SEC. 3. INDEPENDENT LITIGATION AUTHORITY. Section 16(a) of the Federal Trade Commission Act (15 U.S.C. 56(a)) is amended-- (1) by striking paragraph (1) and inserting ``(1) The Commission may commence, defend, or intervene in, and supervise the litigation of any civil action involving this Act (including an action to collect a civil penalty) and any appeal of such action in its own name by any of its attorneys designated by it for such purpose. The Commission shall notify the Attorney General of any such action and may consult with the Attorney General with respect to any such action or request the Attorney General on behalf of the Commission to commence, defend, or intervene in any such action.''; (2) by striking subparagraph (A) of paragraph (3) and inserting ``(A) The Commission may represent itself through any of its attorneys designated by it for such purpose before the Supreme Court in any civil action in which the Commission represented itself pursuant to paragraph (1) or (2) or may request the Attorney General to represent the Commission before the Supreme Court in any such action.''; and (3) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4). SEC. 4. SPECIALIZED ADMINISTRATIVE LAW JUDGES. (a) In General.--In appointing administrative law judges under section 3105 of title 5, United States Code, to conduct hearings and render initial decisions in formal adjudicative matters before it, the Federal Trade Commission may give preference to administrative law judges who have experience with antitrust or trade regulation litigation and who are familiar with the kinds of economic analysis associated with such litigation. (b) Details.--If the Commission asks the Office of Personnel Management to assign an administrative law judge under section 3344 of title 5, United States Code, to conduct a hearing or render an initial decision in a formal adjudicative matter before it, the Commission may request the assignment of an administrative law judge who has experience with antitrust or trade regulation litigation and is familiar with the kinds of economic analysis associated with such litigation and the Office of Personnel Management shall comply with the request to the maximum extent feasible. SEC. 5. CIVIL PENALTIES FOR VIOLATIONS OF THE FEDERAL TRADE COMMISSION ACT. Section 5(m)(1)(A) of the Federal Trade Commission Act (15 U.S.C. 45(m)(1)(A)) is amended-- (1) by inserting ``this Act, or'' after ``violates'' the first place it appears; and (2) by inserting ``a violation of this Act or such act is'' after ``such act is''. SEC. 6. APPLICATION OF FEDERAL TRADE COMMISSION ACT TO TAX-EXEMPT ORGANIZATIONS. Section 4 of the Federal Trade Commission Act (15 U.S.C. 44) is amended by striking ``members.'' in the second full paragraph and inserting ``members, and includes an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from taxation under section 501(a) of such Code.''. SEC. 7. AIDING AND ABETTING A VIOLATION. Section 10 of the Federal Trade Commission Act (15 U.S.C. 50) is amended by adding at the end thereof the following: ``It is unlawful for any person to aid or abet another in violating any provision of this Act or any other Act enforceable by the Commission.''. SEC. 8. PERMISSIVE ADMINISTRATIVE PROCEDURE FOR CONSUMER PROTECTION RULES. (a) In General.--Section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) is amended by adding at the end thereof the following: ``(k) Alternative Rulemaking Procedure.--The Commission may, by majority vote of the full Commission, dispense with the requirements of other provisions of this section and of section 22 of this Act with respect to rulemaking involving a consumer protection matter (as determined by the Commission). If the Commission dispenses with such requirements with respect to such a rulemaking, it shall conduct such rulemaking in accordance with section 553 of title 5, United States Code, and in such case the provisions for judicial review of rules promulgated under section 553 of title 5 shall apply.''. SEC. 9. RULEMAKING PROCEDURE FOR SUBPRIME LENDING MORTGAGES AND NONTRADITIONAL MORTGAGE LOANS. Section 18 of the Federal Trade Commission Act (15 U.S.C. 57a), as amended by section 8, is further amended by adding at the end thereof the following: ``(l) Special Rule for Certain Mortgage-Related Rulemakings.-- Notwithstanding any other provision of this section, section 22 of this Act, or any other provision of law, the Commission shall conduct rulemaking proceedings with respect to subprime mortgage lending and nontraditional mortgage loans in accordance with section 553 of title 5, United States Code, and the provisions for judicial review of rules promulgated under section 553 of title 5 shall apply.''. SEC. 10. HARMONIZING FTC RULES WITH BANKING AGENCY RULEMAKING. (a) In General.--The second sentence of section 18(f)(1) of the Federal Trade Commission Act (15 U.S.C. 57a(f)(1)) is amended-- (1) by striking ``The Board of Governors of the Federal Reserve System (with respect to banks) and the Federal Home Loan Bank Board (with respect to savings and loan institutions described in paragraph (3))'' and inserting ``Each Federal banking agency (with respect to the depository institutions each such agency supervises)''; and (2) by inserting ``in consultation with the Commission'' after ``shall prescribe regulations''. (b) FTC Concurrent Rulemaking.--Section 18(f)(1) of such Act is further amended by inserting after the second sentence the following: ``Such regulations shall be prescribed jointly by such agencies to the extent practicable. Notwithstanding any other provision of this section, whenever such agencies commence such a rulemaking proceeding, the Commission, with respect to the entities within its jurisdiction under this Act, may commence a rulemaking proceeding and prescribe regulations in accordance with section 553 of title 5, United States Code. If the Commission commences such a rulemaking proceeding, the Commission, the Federal banking agencies, and the National Credit Union Administration Board shall consult and coordinate with each other so that the regulations prescribed by each such agency are consistent with and comparable to the regulations prescribed by each other such agency to the extent practicable.''. (c) GAO Study and Report.--Not later than 18 months after the date of enactment of this Act, the Comptroller General shall transmit to Congress a report on the status of regulations of the Federal banking agencies and the National Credit Union Administration regarding unfair and deceptive acts or practices by the depository institutions. (d) Technical and Conforming Amendments.--Section 18(f) of the Federal Trade Commission Act (15 U.S.C. 57a(f)) is amended-- (1) in the first sentence of paragraph (1)-- (A) by striking ``banks or savings and loan institutions described in paragraph (3), each agency specified in paragraph (2) or (3) of this subsection shall establish'' and inserting ``depository institutions and Federal credit unions, the Federal banking agencies and the National Credit Union Administration Board shall each establish''; and (B) by striking ``banks or savings and loan institutions described in paragraph (3), subject to its jurisdiction'' before the period and inserting ``depository institutions or Federal credit unions subject to the jurisdiction of such agency or Board''; (2) in the sixth sentence of paragraph (1) (as amended by subsection (b))-- (A) by striking ``each such Board'' and inserting ``each such banking agency and the National Credit Union Administration Board''; (B) by striking ``banks or savings and loan institutions described in paragraph (3)'' each place such term appears and inserting ``depository institutions subject to the jurisdiction of such agency''; (C) by striking ``(A) any such Board'' and inserting ``(A) any such Federal banking agency or the National Credit Union Administration Board''; and (D) by striking ``with respect to banks, savings and loan institutions'' and inserting ``with respect to depository institutions''; (3) by adding at the end of paragraph (1) the following new sentence: ``For purposes of this subsection, the terms `Federal banking agency' and `depository institution' have the same meaning as in section 3 of the Federal Deposit Insurance Act.''; (4) in paragraph (2)(C), by inserting ``than'' after ``(other''; (5) in paragraph (3), by inserting ``by the Director of the Office of Thrift Supervision'' before the period at the end; (6) in paragraph (4), by inserting ``by the National Credit Union Administration'' before the period at the end; and (7) in paragraph (6), by striking ``the Board of Governors of the Federal Reserve System'' and inserting ``any Federal banking agency or the National Credit Union Administration Board''. SEC. 11. ENFORCEMENT BY STATE ATTORNEYS GENERAL (a) In General.--Except as provided in subsection (f), a State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate State or district court of the United States to enforce the provisions of the Federal Trade Commission Act or any other Act enforced by the Federal Trade Commission to obtain penalties and relief provided under such Acts whenever the attorney general of the State has reason to believe that the interests of the residents of the State have been or are being threatened or adversely affected by a violation of a subprime mortgage lending rule or a nontraditional mortgage loan rule promulgated by the Federal Trade Commission. (b) Notice.--The State shall serve written notice to the Commission of any civil action under subsection (a) at least 60 days prior to initiating such civil action. The notice shall include a copy of the complaint to be filed to initiate such civil action, except that if it is not feasible for the State to provide such prior notice, the State shall provide notice immediately upon instituting such civil action. (c) Intervention by FTC.--Upon receiving the notice required by subsection (b), the Commission may intervene in such civil action and upon intervening-- (1) be heard on all matters arising in such civil action; (2) remove the action to the appropriate United States district court; and (3) file petitions for appeal of a decision in such civil action. (d) Savings Clause.--Nothing in this section shall prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence. Nothing in this section shall prohibit the attorney general of a State, or other authorized State officer, from proceeding in State or Federal court on the basis of an alleged violation of any civil or criminal statute of that State. (e) Venue; Service of Process; Joinder.--In a civil action brought under subsection (a)-- (1) the venue shall be a judicial district in which the lender or a related party operates or is authorized to do business; (2) process may be served without regard to the territorial limits of the district or of the State in which the civil action is instituted; and (3) a person who participated with a lender or related party to an alleged violation that is being litigated in the civil action may be joined in the civil action without regard to the residence of the person. (f) Preemptive Action by FTC.--Whenever a civil action or an administrative action has been instituted by or on behalf of the Commission for violation of any rule described under (a), no State may, during the pendency of such action instituted by or on behalf of the Commission, institute a civil action under subsection (a) against any defendant named in the complaint in such action for violation of any rule as alleged in such complaint. (g) Award of Costs and Fees.--If the attorney general of a State prevails in any civil action under subsection (a), the State can recover reasonable costs and attorney fees from the lender or related party. SEC. 12. HARMONIZATION OF NATIONAL DO-NOT-CALL REGISTRY AND EFFECT ON STATE LAWS. (a) Amendment of the Telemarketing and Consumer Fraud and Abuse Prevention Act.--Section 5 of the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6105) is amended by adding at the end thereof the following: ``(d) State Laws Not Preempted.--Nothing in this Act or the Do-Not- Call Implementation Act (15 U.S.C. 6101 note) preempts any State law that imposes more restrictive requirements on intrastate or interstate telemarketing to telephone numbers on a do-not-call registry maintained by that State.''. (b) Conforming Amendment.--Section 227(e)(1) of the Communications Act of 1934 (47 U.S.C. 227(e)(1)) is amended by inserting ``interstate or'' after ``restrictive''. SEC. 13. FTC STUDY OF ALCOHOLIC BEVERAGE MARKETING PRACTICES. Within 2 years after the Federal Trade Commission completes its study entitled Self-Regulation in the Alcohol Industry and every 2 years thereafter, the Commission shall transmit a report to the Congress on advertising and marketing practices for alcoholic beverages, together with such recommendations, including legislative recommendations, as the Commission deems appropriate. In preparing the report, the Commission shall consider information contained in reports by the Secretary of Health and Human services under section 519B of the Public Health Service Act (42 U.S.C. 290bb-25b), and shall include, to the extent feasible, data on measured and unmeasured media by brand and type of beverage, and data on expenditures for slotting and discounting. SEC. 14. COMMON CARRIER EXCEPTION. Section 4 of the Federal Trade Commission Act (15 U.S.C. 44) is amended by striking the paragraph containing the definition of the term ``Acts to regulate commerce'' and inserting the following: ```Acts to regulate commerce' means subtitle IV of title 49, United States Code, and all Acts amendatory thereof and supplementary thereto.''.
summary: Federal Trade Commission Reauthorization Act of 2008 - Amends the Federal Trade Commission Act to authorize appropriations to carry out the powers and duties of the Federal Trade Commission (FTC) and to improve technology regarding the FTC's competition and consumer protection missions. Authorizes the FTC to directly handle civil actions under the Act or to request the Attorney General do so. Allows the FTC to give appointment preference to administrative judges with antitrust or trade regulation litigation and related economic analysis experience. Permits the FTC to commence a civil action to recover civil penalties in a district court for any violation of the Act. Permits the FTC to enforce the Act against nonprofit organizations. Authorizes the FTC to operate under general federal law rulemaking and judicial review provisions instead of under rulemaking provisions of the Act. Requires that the FTC, notwithstanding any other provision of law, conduct rulemaking proceedings regarding subprime mortgage lending and nontraditional mortgage loans in accordance with such general rulemaking and judicial review provisions. Transfers to each federal banking agency, with respect to depository institutions, the authority to prescribe regulations governing unfair or deceptive practices by banks and savings and loan institutions currently vested in the Board of Governors of the Federal Reserve System (regarding banks) and the Federal Home Loan Bank Board (regarding savings and loan institutions). Allows a state, except during an FTC action, to bring an action to enforce the Act or any other Act enforced by the FTC regarding violation of an FTC subprime mortgage lending or nontraditional mortgage loan rule. Amends the Telemarketing and Consumer Fraud and Abuse Prevention Act to state that more restrictive state laws are not preempted. Provides for an FTC study of alcoholic beverage marketing. Amends the Federal Trade Commission Act to remove references to the Communications Act of 1934 from the definition of "Acts to regulate commerce."