[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3003 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 3003

To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to safeguard confidential banking and credit union information, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 1997

 Mr. McCollum (for himself, Mr. Leach, Mr. LaFalce, Mrs. Roukema, Mr. 
Bereuter, Mr. Baker, Mr. Bachus, Mr. King, Mr. Royce, Mr. Ehrlich, Mr. 
   Barr of Georgia, Mr. Cook, Mr. Sessions, Mr. Hill, and Mr. Bono) 
 introduced the following bill; which was referred to the Committee on 
                     Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to safeguard confidential banking and credit union information, 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 ``Bank Examination Report Protection 
Act of 1997''.

SEC. 2. AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE ACT.

    The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended by adding at the end the following new section:

``SEC. 45. BANK SUPERVISORY PRIVILEGE.

    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Depository institution.--The term `depository 
        institution' includes--
                    ``(A) any institution which is treated in the same 
                manner as an insured depository institution under 
                paragraph (3), (4), (5), or (9) of section 8(b); and
                    ``(B) any subsidiary or other affiliate of an 
                insured depository institution or an institution 
                described in subparagraph (A).
            ``(2) Supervisory process.--The term `supervisory process' 
        means any activity engaged in by a Federal banking agency to 
        carry out the official responsibilities of the agency with 
        regard to the regulation or supervision of depository 
        institutions.
            ``(3) Confidential supervisory information.--The term 
        `confidential supervisory information' means any of the 
        following information, or any portion of any such information, 
        which is treated as, or considered to be, confidential 
        information by a Federal banking agency, regardless of the 
        medium in which the information is conveyed or stored:
                    ``(A) Any report of examination, inspection, 
                visitation, or investigation, and information prepared 
                or collected by a Federal banking agency in connection 
                with the supervisory process, including any computer 
                file, work paper, or similar document.
                    ``(B) Any correspondence of communication from a 
                Federal banking agency to a depository institution 
                arising from or relating to an examination, inspection, 
                visitation, or investigation by a Federal banking 
                agency.
                    ``(C) Any correspondence, communication, or 
                document, including any compliance and other reports, 
                created by a depository institution in response to any 
                request, inquiry, or directive from a Federal banking 
                agency in connection with any examination, inspection, 
                visitation, or investigation and provided to a Federal 
                banking agency, other than any book or record in the 
                possession of the depository institution routinely 
                prepared by the depository institution and maintained 
                in the ordinary course of business or any information 
                required to be made publicly available by any Federal 
                law or regulation.
                    ``(D) Any record of a Federal banking agency to the 
                extent it contains information derived from any report, 
                correspondence, communication or other information 
                described in subparagraph (A), (B), or (C).
    ``(b) Bank Supervisory Privilege.--
            ``(1) Privilege established.--
                    ``(A) In general.--All confidential supervisory 
                information shall be the property of the Federal 
                banking agency that created or requested the 
                information and shall be privileged from disclosure to 
                any other person.
                    ``(B) Prohibition on unauthorized disclosures.--No 
                person in possession of confidential supervisory 
                information may disclose such information, in whole or 
                in part, without the prior authorization of the Federal 
                banking agency that created or requested the 
                information, except for a disclosure made in published 
                statistical material that does not disclose, either 
                directly or when used in conjunction with publicly 
                available information, the affairs of any person.
                    ``(C) Agency waiver.--The Federal banking agency 
                may waive, in whole or in part, in the discretion of 
                the agency, any privilege established under this 
                paragraph.
            ``(2) Exception.--No provision of paragraph (1) shall be 
        construed as preventing access to confidential supervisory 
        information by duly authorized committees of the United States 
        Congress or the Comptroller General of the United States.
    ``(c) Other Privileges Not Waived by Disclosure to Banking 
Agency.--The submission by a depository institution of any information 
to a Federal banking agency, a State bank supervisor, or a foreign 
banking authority for any purpose in the course of the supervisory 
process of such agency or supervisor shall not be construed as waiving, 
destroying, or otherwise affecting any privilege such institution may 
claim with respect to such information under Federal or State law.
    ``(d) Discovery and Disclosure of Information.--
            ``(1) Information available only from banking agency.--
                    ``(A) In general.--A person seeking discovery or 
                disclosure, in whole or in part, of confidential 
                supervisory information may not seek to obtain such 
                information through subpoena, discovery procedures, or 
                other process from any person, except that such 
                information may be sought in accordance with this 
                section from the Federal banking agency that created or 
                requested the information.
                    ``(B) Requests submitted to banking agency.--Any 
                request for discovery or disclosure of confidential 
                supervisory information shall be made to the Federal 
                banking agency that created or requested the 
                information, which shall determine within a reasonable 
                time period whether to disclose such information 
                pursuant to procedures and criteria established in 
                regulations.
            ``(2) Exclusive federal court jurisdiction over disputes.--
                    ``(A) In general.--Federal courts shall have 
                exclusive jurisdiction over actions or proceedings in 
                which any party seeks to compel disclosure of 
                confidential supervisory information.
                    ``(B) Judicial review.--Judicial review of the 
                final action of a Federal banking agency with regard to 
                the disposition of a request for confidential 
                supervisory information shall be before a district 
                court of the United States of competent jurisdiction, 
                subject to chapter 7 of part I of title 5, United 
                States Code.
                    ``(C) Right to appeal.--Any court order that 
                compels production of confidential supervisory 
                information may be immediately appealed by the Federal 
                banking agency and the order compelling production 
                shall be automatically stayed, pending the outcome of 
                such appeal.
    ``(e) Subpoenas.--
            ``(1) Authority to intervene.--In the case of any action or 
        proceeding to compel compliance with a subpoena, order, 
        discovery request, or other judicial or administrative process 
        with respect to any confidential supervisory information 
        relating to any depository institution, a Federal banking 
        agency and the depository institution may intervene in such 
        action or proceeding for the purpose of--
                    ``(A) enforcing the limitations established in 
                paragraph (1) of subsections (b) and (d);
                    ``(B) seeking the withdrawal of any compulsory 
                process with respect to such information; and
                    ``(C) registering appropriate objections with 
                respect to the action or proceeding to the extent the 
                action or proceeding relates to or involves such 
                information.
            ``(2) Right to appeal.--Any court order that compels 
        production of confidential supervisory information may be 
        immediately appealed by the Federal banking agency and the 
        order compelling production shall be automatically stayed, 
        pending the outcome of such appeal.
    ``(f) Regulations.--
            ``(1) Authority to prescribe.--Each Federal banking agency 
        may prescribe such regulations as the agency considers to be 
        appropriate, after consultation with the other Federal banking 
        agencies and the National Credit Union Administration Board, to 
        carry out the purposes of this section.
            ``(2) Authority to require notice.--Any regulations 
        prescribed by a Federal banking agency under paragraph (1) may 
        require any person in possession of confidential supervisory 
        information to notify the Federal banking agency whenever the 
        person is served with a subpoena, order, discovery request, or 
        other judicial or administrative process requiring the personal 
        attendance of such person as a witness or requiring the 
        production of such information in any proceeding.
    ``(g) Access in accordance with regulations and orders.--
Nothwithstanding any other provision of this section, the Federal 
banking agency may, without waiving any privilege, authorize access to 
confidential supervisory information for any appropriate governmental, 
law enforcement, or public purpose in accordance with agency 
regulations or orders.''.

SEC. 3. AMENDMENT TO FEDERAL CREDIT UNION ACT.

    Title II of the Federal Credit Union Act (12 U.S.C. 1781 et seq.) 
is amended by adding at the end the following new section:

``SEC. 215. CREDIT UNION SUPERVISORY PRIVILEGE.

    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Supervisory process.--The term `supervisory process' 
        means any activity engaged in by the Administration to carry 
        out the official responsibilities of the Administration with 
        regard to the regulation or supervision of credit unions.
            ``(1) Confidential supervisory information.--The term 
        `confidential supervisory information' means any of the 
        following information, or any portion of any such information, 
        which is treated as, or considered to be, confidential 
        information by the Administration, regardless of the medium in 
        which the information is conveyed or stored:
                    ``(A) Any report of examination, inspection, 
                visitation, or investigation, and information prepared 
                or collected by the Administration in connection with 
                the supervisory process, including any computer file, 
                work paper, or similar document.
                    ``(B) Any correspondence or communication from the 
                Administration to a credit union arising from or 
                relating to an examination, inspection, visitation, or 
                investigation by the Administration.
                    ``(C) Any correspondence, communication, or 
                document, including any compliance and other reports, 
                created by a credit union in response to any request, 
                inquiry, or directive from the Administration in 
                connection with any examination, inspection, 
                visitation, or investigation and provided to the 
                Administration, other than any book or record in the 
possession of the credit union routinely prepared by the credit union 
and maintained in the ordinary course of business or any information 
required to be made publicly available by any Federal law or 
regulation.
                    ``(D) Any record of the Administration to the 
                extent it contains information derived from any report, 
                correspondence, communication or other information 
                described in subparagraph (A), (B), or (C).
    ``(b) Credit Union Supervisory Privilege.--
            ``(1) Privilege established.--
                    ``(a) In general.--All confidential supervisory 
                information shall be the property of the Administration 
                and shall be privileged from disclosure to any other 
                person.
                    ``(B) Prohibition on unauthorized disclosures.--No 
                person in possession of confidential supervisory 
                information may disclose such information, in whole or 
                in part, without the prior authorization of the 
                Administration, except for a disclosure made in 
                published statistical material that does not disclose, 
                either directly or when used in conjunction with 
                publicly available information, the affairs of any 
                person.
                    ``(C) Agency waivers.--The Board may waive, in 
                whole or in part, in the discretion of the Board, any 
                privilege established under this paragraph.
            ``(2) Exception.--No provision of paragraph (1) shall be 
        construed as preventing access to confidential supervisory 
        information by duly authorized committees of the United States 
        Congress or the Comptroller General of the United States.
    ``(c) Other Privileges Not Waived by Disclosure to 
Administration.--The submission by a credit union of any information to 
the Administration or a State credit union supervisor for any purpose 
in the course of the supervisory process of the Administration or such 
supervisor shall not be construed as waiving, destroying, or otherwise 
affecting any privilege such institution may claim with respect to such 
information under Federal or State law.
    ``(d) Discovery and Disclosure of Information.--
            ``(1) Information available only from administration.--
                    ``(a) In general.--A person seeking discovery or 
                disclosure, in whole or in part, of confidential 
                supervisory information may not seek to obtain such 
                information through subpoena, discovery procedures, or 
                other process from any person, except that such 
                information may be sought in accordance with this 
                section from the Administration.
                    ``(B) Request submitted to administration.--Any 
                request for discovery or disclosure of confidential 
                supervisory information shall be made in the 
                Administration, which shall determine within a 
                reasonable time period whether to disclose such 
                information pursuant to procedures and criteria 
                established in regulations.
            ``(2) Exclusive federal court jurisdiction over disputes.--
                ``(A) In general.--Federal courts shall have exclusive 
                jurisdiction over actions or proceedings in which any 
                party seeks to compel disclosure of confidential 
                supervisory information.
                ``(B) Judicial review.--Judicial review of the final 
                action of the Administration with regard to the 
                disposition of a request for confidential supervisory 
                information shall be before a district court of the 
                United States of competent jurisdiction, subject to 
                chapter 7 of part I of title 5, United States Code.
                    ``(C) Right to appeal.--Any court order that 
                compels production of confidential supervisory 
                information may be immediately appealed by the 
                Administration and the order compelling production 
                shall be automatically stayed, pending the outcome of 
                such appeal.
    ``(e) Subpoenas.--
            ``(1) Authority to intervene.--In the case of any action or 
        proceeding to compel compliance with a subpoena, order, 
        discover request, or other judicial or administrative process 
        with respect to any confidential supervisory information 
        relating to any credit union, the Administration and the credit 
        union may intervene in such action or proceeding for the 
        purpose of--
                    ``(A) enforcing the limitations established in 
                paragraph (1) of subsections (b) and (d);
                    ``(B) seeking the withdrawal of any compulsory 
                process with respect to such information; and
                    ``(C) registering appropriate objections with 
                respect to the action or proceeding to the extent the 
                action or proceeding relates to or involves such 
                information.
            ``(2) Right to appeal.--Any court order that compels 
        production of confidential supervisory information may be 
        immediately appealed by the Administration and the order 
        compelling production shall be automatically stayed, pending 
        the outcome of such appeal.
    ``(f) Regulations.--
            ``(1) Authority to prescribe.--The Board may prescribe such 
        regulations as the Board considers to be appropriate, after 
        consultation with the Federal banking agencies (as defined in 
        section 3 of the Federal Deposit Insurance Act), to carry out 
        the purposes of this section.
            ``(2) Authority to require notice.--Any regulations 
        prescribed by the Administration under paragraph (1) may 
        require any person in possession of confidential supervisory 
        information to notify the Administration whenever the person is 
        served with a subpoena, order, discovery request, or other 
        judicial or administrative process requiring the personal 
        attendance of such person as a witness or requiring the 
        production of such information in any proceeding.
    ``(g) Access in Accordance With Regulations and Orders.--
Notwithstanding any other provision of this section, the Administration 
may, without waiving any privilege, authorize access to confidential 
supervisory information for any appropriate governmental, law 
enforcement, or public purpose in accordance with agency regulations or 
orders.''.
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