[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5322 Referred in Senate (RFS)]

<DOC>
116th CONGRESS
  2d Session
                                H. R. 5322


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2020

Received; read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 AN ACT


 
  To establish or modify requirements relating to minority depository 
institutions, community development financial institutions, and impact 
                     banks, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Ensuring Diversity 
in Community Banking Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress on funding the loan-loss reserve fund for 
                            small dollar loans.
Sec. 3. Definitions.
Sec. 4. Inclusion of women's banks in the definition of minority 
                            depository institution.
Sec. 5. Establishment of impact bank designation.
Sec. 6. Minority Depositories Advisory Committees.
Sec. 7. Federal deposits in minority depository institutions.
Sec. 8. Minority Bank Deposit Program.
Sec. 9. Diversity report and best practices.
Sec. 10. Investments in minority depository institutions and impact 
                            banks.
Sec. 11. Report on covered mentor-protege programs.
Sec. 12. Custodial deposit program for covered minority depository 
                            institutions and impact banks.
Sec. 13. Streamlined community development financial institution 
                            applications and reporting.
Sec. 14. Task force on lending to small business concerns.
Sec. 15. Discretionary surplus funds.
Sec. 16. Determination of Budgetary Effects.

SEC. 2. SENSE OF CONGRESS ON FUNDING THE LOAN-LOSS RESERVE FUND FOR 
              SMALL DOLLAR LOANS.

    The sense of Congress is the following:
            (1) The Community Development Financial Institutions Fund 
        (the ``CDFI Fund'') is an agency of the Department of the 
        Treasury, and was established by the Riegle Community 
        Development and Regulatory Improvement Act of 1994. The mission 
        of the CDFI Fund is ``to expand economic opportunity for 
        underserved people and communities by supporting the growth and 
        capacity of a national network of community development 
        lenders, investors, and financial service providers''. A 
        community development financial institution (a ``CDFI'') is a 
        specialized financial institution serving low-income 
        communities and a Community Development Entity (a ``CDE'') is a 
        domestic corporation or partnership that is an intermediary 
        vehicle for the provision of loans, investments, or financial 
        counseling in low-income communities. The CDFI Fund certifies 
        CDFIs and CDEs. Becoming a certified CDFI or CDE allows 
        organizations to participate in various CDFI Fund programs as 
        follows:
                    (A) The Bank Enterprise Award Program, which 
                provides FDIC-insured depository institutions awards 
                for a demonstrated increase in lending and investments 
                in distressed communities and CDFIs.
                    (B) The CDFI Program, which provides Financial and 
                Technical Assistance awards to CDFIs to reinvest in the 
                CDFI, and to build the capacity of the CDFI, including 
                financing product development and loan loss reserves.
                    (C) The Native American CDFI Assistance Program, 
                which provides CDFIs and sponsoring entities Financial 
                and Technical Assistance awards to increase lending and 
                grow the number of CDFIs owned by Native Americans to 
                help build capacity of such CDFIs.
                    (D) The New Market Tax Credit Program, which 
                provides tax credits for making equity investments in 
                CDEs that stimulate capital investments in low-income 
                communities.
                    (E) The Capital Magnet Fund, which provides awards 
                to CDFIs and nonprofit affordable housing organizations 
                to finance affordable housing solutions and related 
                economic development activities.
                    (F) The Bond Guarantee Program, a source of long-
                term, patient capital for CDFIs to expand lending and 
                investment capacity for community and economic 
                development purposes.
            (2) The Department of the Treasury is authorized to create 
        multi-year grant programs designed to encourage low-to-moderate 
        income individuals to establish accounts at federally insured 
        banks, and to improve low-to-moderate income individuals' 
        access to such accounts on reasonable terms.
            (3) Under this authority, grants to participants in CDFI 
        Fund programs may be used for loan-loss reserves and to 
        establish small-dollar loan programs by subsidizing related 
        losses. These grants also allow for the providing recipients 
        with the financial counseling and education necessary to 
        conduct transactions and manage their accounts. These loans 
        provide low-cost alternatives to payday loans and other 
        nontraditional forms of financing that often impose excessive 
        interest rates and fees on borrowers, and lead millions of 
        Americans to fall into debt traps. Small-dollar loans can only 
        be made pursuant to terms, conditions, and practices that are 
        reasonable for the individual consumer obtaining the loan.
            (4) Program participation is restricted to eligible 
        institutions, which are limited to organizations listed in 
        section 501(c)(3) of the Internal Revenue Code and exempt from 
        tax under 501(a) of such Code, federally insured depository 
        institutions, community development financial institutions and 
        State, local, or Tribal government entities.
            (5) Since its founding, the CDFI Fund has awarded over 
        $3,300,000,000 to CDFIs and CDEs, allocated $54,000,000,000 in 
        tax credits, and $1,510,000,000 in bond guarantees. According 
        to the CDFI Fund, some programs attract as much as $10 in 
        private capital for every $1 invested by the CDFI Fund. The 
        Administration and the Congress should prioritize appropriation 
        of funds for the loan loss reserve fund and technical 
        assistance programs administered by the Community Development 
        Financial Institution Fund.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given under section 103 of the Riegle Community Development and 
        Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
            (2) Minority depository institution.--The term ``minority 
        depository institution'' has the meaning given under section 
        308 of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended by 
        this Act.

SEC. 4. INCLUSION OF WOMEN'S BANKS IN THE DEFINITION OF MINORITY 
              DEPOSITORY INSTITUTION.

    Section 308(b)(1) of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by striking ``means any'' and inserting the following: 
        ``means--
            ``(A) any''; and
            (3) in clause (iii) (as so redesignated), by striking the 
        period at the end and inserting ``; or''; and
            (4) by inserting at the end the following new subparagraph:
                    ``(B) any bank described in clause (i), (ii), or 
                (iii) of section 19(b)(1)(A) of the Federal Reserve 
                Act--
                            ``(i) more than 50 percent of the 
                        outstanding shares of which are held by 1 or 
                        more women; and
                            ``(ii) the majority of the directors on the 
                        board of directors of which are women.''.

SEC. 5. ESTABLISHMENT OF IMPACT BANK DESIGNATION.

    (a) In General.--Each Federal banking agency shall establish a 
program under which a depository institution with total consolidated 
assets of less than $10,000,000,000 may elect to be designated as an 
impact bank if the total dollar value of the loans extended by such 
depository institution to low-income borrowers is greater than or equal 
to 50 percent of the assets of such bank.
    (b) Notification of Eligibility.--Based on data obtained through 
examinations of depository institutions, the appropriate Federal 
banking agency shall notify a depository institution if the institution 
is eligible to be designated as an impact bank.
    (c) Application.--Regardless of whether or not it has received a 
notice of eligibility under subsection (b), a depository institution 
may submit an application to the appropriate Federal banking agency--
            (1) requesting to be designated as an impact bank; and
            (2) demonstrating that the depository institution meets the 
        applicable qualifications.
    (d) Limitation on Additional Data Requirements.--The Federal 
banking agencies may only impose additional data collection 
requirements on a depository institution under this section if such 
data is--
            (1) necessary to process an application submitted by the 
        depository institution to be designated an impact bank; or
            (2) with respect to a depository institution that is 
        designated as an impact bank, necessary to ensure the 
        depository institution's ongoing qualifications to maintain 
        such designation.
    (e) Removal of Designation.--If the appropriate Federal banking 
agency determines that a depository institution designated as an impact 
bank no longer meets the criteria for such designation, the appropriate 
Federal banking agency shall rescind the designation and notify the 
depository institution of such rescission.
    (f) Reconsideration of Designation; Appeals.--Under such procedures 
as the Federal banking agencies may establish, a depository institution 
may--
            (1) submit to the appropriate Federal banking agency a 
        request to reconsider a determination that such depository 
        institution no longer meets the criteria for the designation; 
        or
            (2) file an appeal of such determination.
    (g) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the Federal banking agencies shall jointly issue 
rules to carry out the requirements of this section, including by 
providing a definition of a low-income borrower.
    (h) Reports.--Each Federal banking agency shall submit an annual 
report to the Congress containing a description of actions taken to 
carry out this section.
    (i) Federal Deposit Insurance Act Definitions.--In this section, 
the terms ``depository institution'', ``appropriate Federal banking 
agency'', and ``Federal banking agency'' have the meanings given such 
terms, respectively, in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813).

SEC. 6. MINORITY DEPOSITORIES ADVISORY COMMITTEES.

    (a) Establishment.--Each covered regulator shall establish an 
advisory committee to be called the ``Minority Depositories Advisory 
Committee''.
    (b) Duties.--Each Minority Depositories Advisory Committee shall 
provide advice to the respective covered regulator on meeting the goals 
established by section 308 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) to preserve 
the present number of covered minority institutions, preserve the 
minority character of minority-owned institutions in cases involving 
mergers or acquisitions, provide technical assistance, and encourage 
the creation of new covered minority institutions. The scope of the 
work of each such Minority Depositories Advisory Committee shall 
include an assessment of the current condition of covered minority 
institutions, what regulatory changes or other steps the respective 
agencies may be able to take to fulfill the requirements of such 
section 308, and other issues of concern to covered minority 
institutions.
    (c) Membership.--
            (1) In general.--Each Minority Depositories Advisory 
        Committee shall consist of no more than 10 members, who--
                    (A) shall serve for one two-year term;
                    (B) shall serve as a representative of a depository 
                institution or an insured credit union with respect to 
                which the respective covered regulator is the covered 
                regulator of such depository institution or insured 
                credit union; and
                    (C) shall not receive pay by reason of their 
                service on the advisory committee, but may receive 
                travel or transportation expenses in accordance with 
                section 5703 of title 5, United States Code.
            (2) Diversity.--To the extent practicable, each covered 
        regulator shall ensure that the members of the Minority 
        Depositories Advisory Committee of such agency reflect the 
        diversity of covered minority institutions.
    (d) Meetings.--
            (1) In general.--Each Minority Depositories Advisory 
        Committee shall meet not less frequently than twice each year.
            (2) Notice and invitations.--Each Minority Depositories 
        Advisory Committee shall--
                    (A) notify the Committee on Financial Services of 
                the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate in 
                advance of each meeting of the Minority Depositories 
                Advisory Committee; and
                    (B) invite the attendance at each meeting of the 
                Minority Depositories Advisory Committee of--
                            (i) one member of the majority party and 
                        one member of the minority party of the 
                        Committee on Financial Services of the House of 
                        Representatives and the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate; and
                            (ii) one member of the majority party and 
                        one member of the minority party of any 
                        relevant subcommittees of such committees.
    (e) No Termination of Advisory Committees.--The termination 
requirements under section 14 of the Federal Advisory Committee Act (5 
U.S.C. app.) shall not apply to a Minority Depositories Advisory 
Committee established pursuant to this section.
    (f) Definitions.--In this section:
            (1) Covered regulator.--The term ``covered regulator'' 
        means the Comptroller of the Currency, the Board of Governors 
        of the Federal Reserve System, the Federal Deposit Insurance 
        Corporation, and the National Credit Union Administration.
            (2) Covered minority institution.--The term ``covered 
        minority institution'' means a minority depository institution 
        (as defined in section 308(b) of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 
        note)).
            (3) Depository institution.--The term ``depository 
        institution'' has the meaning given under section 3 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1813).
            (4) Insured credit union.--The term ``insured credit 
        union'' has the meaning given in section 101 of the Federal 
        Credit Union Act (12 U.S.C. 1752).
    (g) Technical Amendment.--Section 308(b) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1463 note) is amended by adding at the end the following new paragraph:
            ``(3) Depository institution.--The term `depository 
        institution' means an `insured depository institution' (as 
        defined in section 3 of the Federal Deposit Insurance Act (12 
        U.S.C. 1813)) and an insured credit union (as defined in 
        section 101 of the Federal Credit Union Act (12 U.S.C. 
        1752)).''.

SEC. 7. FEDERAL DEPOSITS IN MINORITY DEPOSITORY INSTITUTIONS.

    (a) In General.--Section 308 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is 
amended--
            (1) by adding at the end the following new subsection:
    ``(d) Federal Deposits.--The Secretary of the Treasury shall ensure 
that deposits made by Federal agencies in minority depository 
institutions and impact banks are collateralized or insured, as 
determined by the Secretary. Such deposits shall include reciprocal 
deposits as defined in section 337.6(e)(2)(v) of title 12, Code of 
Federal Regulations (as in effect on March 6, 2019).''; and
            (2) in subsection (b), as amended by section 6(g), by 
        adding at the end the following new paragraph:
            ``(4) Impact bank.--The term `impact bank' means a 
        depository institution designated by the appropriate Federal 
        banking agency pursuant to section 5 of the Ensuring Diversity 
        in Community Banking Act.''.
    (b) Technical Amendments.--Section 308 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1463 note) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``section--'' and inserting ``section:''; and
            (2) in the paragraph heading for paragraph (1), by striking 
        ``financial'' and inserting ``depository''.

SEC. 8. MINORITY BANK DEPOSIT PROGRAM.

    (a) In General.--Section 1204 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended 
to read as follows:

``SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY INSTITUTIONS.

    ``(a) Minority Bank Deposit Program.--
            ``(1) Establishment.--There is established a program to be 
        known as the `Minority Bank Deposit Program' to expand the use 
        of minority depository institutions.
            ``(2) Administration.--The Secretary of the Treasury, 
        acting through the Fiscal Service, shall--
                    ``(A) on application by a depository institution or 
                credit union, certify whether such depository 
                institution or credit union is a minority depository 
                institution;
                    ``(B) maintain and publish a list of all depository 
                institutions and credit unions that have been certified 
                pursuant to subparagraph (A); and
                    ``(C) periodically distribute the list described in 
                subparagraph (B) to--
                            ``(i) all Federal departments and agencies;
                            ``(ii) interested State and local 
                        governments; and
                            ``(iii) interested private sector 
                        companies.
            ``(3) Inclusion of certain entities on list.--A depository 
        institution or credit union that, on the date of the enactment 
        of this section, has a current certification from the Secretary 
        of the Treasury stating that such depository institution or 
        credit union is a minority depository institution shall be 
        included on the list described under paragraph (2)(B).
    ``(b) Expanded Use Among Federal Departments and Agencies.--
            ``(1) In general.--Not later than 1 year after the 
        establishment of the program described in subsection (a), the 
        head of each Federal department or agency shall develop and 
        implement standards and procedures to prioritize, to the 
        maximum extent possible as permitted by law and consistent with 
        principles of sound financial management, the use of minority 
        depository institutions to hold the deposits of each such 
        department or agency.
            ``(2) Report to congress.--Not later than 2 years after the 
        establishment of the program described in subsection (a), and 
        annually thereafter, the head of each Federal department or 
        agency shall submit to Congress a report on the actions taken 
        to increase the use of minority depository institutions to hold 
        the deposits of each such department or agency.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Credit union.--The term `credit union' has the 
        meaning given the term `insured credit union' in section 101 of 
        the Federal Credit Union Act (12 U.S.C. 1752).
            ``(2) Depository institution.--The term `depository 
        institution' has the meaning given in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813).
            ``(3) Minority depository institution.--The term `minority 
        depository institution' has the meaning given that term under 
        section 308 of this Act.''.
    (b) Conforming Amendments.--The following provisions are amended by 
striking ``1204(c)(3)'' and inserting ``1204(c)'':
            (1) Section 808(b)(3) of the Community Reinvestment Act of 
        1977 (12 U.S.C. 2907(b)(3)).
            (2) Section 40(g)(1)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831q(g)(1)(B)).
            (3) Section 704B(h)(4) of the Equal Credit Opportunity Act 
        (15 U.S.C. 1691c-2(h)(4)).

SEC. 9. DIVERSITY REPORT AND BEST PRACTICES.

    (a) Annual Report.--Each covered regulator shall submit to Congress 
an annual report on diversity including the following:
            (1) Data, based on voluntary self-identification, on the 
        racial, ethnic, and gender composition of the examiners of each 
        covered regulator, disaggregated by length of time served as an 
        examiner.
            (2) The status of any examiners of covered regulators, 
        based on voluntary self-identification, as a veteran.
            (3) Whether any covered regulator, as of the date on which 
        the report required under this section is submitted, has 
        adopted a policy, plan, or strategy to promote racial, ethnic, 
        and gender diversity among examiners of the covered regulator.
            (4) Whether any special training is developed and provided 
        for examiners related specifically to working with depository 
        institutions and credit unions that serve communities that are 
        predominantly minorities, low income, or rural, and the key 
        focus of such training.
    (b) Best Practices.--Each Office of Minority and Women Inclusion of 
a covered regulator shall develop, provide to the head of the covered 
regulator, and make publicly available best practices--
            (1) for increasing the diversity of candidates applying for 
        examiner positions, including through outreach efforts to 
        recruit diverse candidate to apply for entry-level examiner 
        positions; and
            (2) for retaining and providing fair consideration for 
        promotions within the examiner staff for purposes of achieving 
        diversity among examiners.
    (c) Covered Regulator Defined.--In this section, the term ``covered 
regulator'' means the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, the Federal Deposit Insurance 
Corporation, and the National Credit Union Administration.

SEC. 10. INVESTMENTS IN MINORITY DEPOSITORY INSTITUTIONS AND IMPACT 
              BANKS.

    (a) Control for Certain Institutions.--Section 7(j)(8)(B) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(j)(8)(B)) is amended to 
read as follows:
            ``(B) `control' means the power, directly or indirectly--
                    ``(i) to direct the management or policies of an 
                insured depository institution; or
                    ``(ii)(I) with respect to an insured depository 
                institution, of a person to vote 25 per centum or more 
                of any class of voting securities of such institution; 
                or
                    ``(II) with respect to an insured depository 
                institution that is an impact bank (as designated 
                pursuant to section 5 of the Ensuring Diversity in 
                Community Banking Act) or a minority depository 
                institution (as defined in section 308(b) of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989), of an individual to vote 30 
                percent or more of any class of voting securities of 
                such an impact bank or a minority depository 
                institution.''.
    (b) Rulemaking.--The Federal banking agencies (as defined in 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall 
jointly issue rules for de novo minority depository institutions and de 
novo impact banks (as designated pursuant to section 5) to allow 3 
years to meet the capital requirements otherwise applicable to minority 
depository institutions and impact banks.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Federal banking agencies shall jointly submit to 
Congress a report on--
            (1) the principal causes for the low number of de novo 
        minority depository institutions during the 10-year period 
        preceding the date of the report;
            (2) the main challenges to the creation of de novo minority 
        depository institutions and de novo impact banks; and
            (3) regulatory and legislative considerations to promote 
        the establishment of de novo minority depository institutions 
        and de novo impact banks.

SEC. 11. REPORT ON COVERED MENTOR-PROTEGE PROGRAMS.

    (a) Report.--Not later than 6 months after the date of the 
enactment of this Act and annually thereafter, the Secretary of the 
Treasury shall submit to Congress a report on participants in a covered 
mentor-protege program, including--
            (1) an analysis of outcomes of such program;
            (2) the number of minority depository institutions that are 
        eligible to participate in such program but do not have large 
        financial institution mentors; and
            (3) recommendations for how to match such minority 
        depository institutions with large financial institution 
        mentors.
    (b) Definitions.--In this section:
            (1) Covered mentor-protege program.--The term ``covered 
        mentor-protege program'' means a mentor-protege program 
        established by the Secretary of the Treasury pursuant to 
        section 45 of the Small Business Act (15 U.S.C. 657r).
            (2) Large financial institution.--The term ``large 
        financial institution'' means any entity--
                    (A) regulated by the Comptroller of the Currency, 
                the Board of Governors of the Federal Reserve System, 
                the Federal Deposit Insurance Corporation, or the 
                National Credit Union Administration; and
                    (B) that has total consolidated assets greater than 
                or equal to $50,000,000,000.

SEC. 12. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MINORITY DEPOSITORY 
              INSTITUTIONS AND IMPACT BANKS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Treasury shall issue rules 
establishing a custodial deposit program under which a covered bank may 
receive deposits from a qualifying account.
    (b) Requirements.--In issuing rules under subsection (a), the 
Secretary of the Treasury shall--
            (1) consult with the Federal banking agencies;
            (2) ensure each covered bank participating in the program 
        established under this section--
                    (A) has appropriate policies relating to management 
                of assets, including measures to ensure the safety and 
                soundness of each such covered bank; and
                    (B) is compliant with applicable law; and
            (3) ensure, to the extent practicable that the rules do not 
        conflict with goals described in section 308(a) of the 
        Financial Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 1463 note).
    (c) Limitations.--
            (1) Deposits.--With respect to the funds of an individual 
        qualifying account, an entity may not deposit an amount greater 
        than the insured amount in a single covered bank.
            (2) Total deposits.--The total amount of funds deposited in 
        a covered bank under the custodial deposit program described 
        under this section may not exceed the lesser of--
                    (A) 10 percent of the average amount of deposits 
                held by such covered bank in the previous quarter; or
                    (B) $100,000,000 (as adjusted for inflation).
    (d) Report.--Each quarter, the Secretary of the Treasury shall 
submit to Congress a report on the implementation of the program 
established under this section including information identifying 
participating covered banks and the total amount of deposits received 
by covered banks under the program.
    (e) Definitions.--In this section:
            (1) Covered bank.--The term ``covered bank'' means--
                    (A) a minority depository institution that is well 
                capitalized, as defined by the appropriate Federal 
                banking agency; or
                    (B) a depository institution designated pursuant to 
                section 5 of the Ensuring Diversity in Community 
                Banking Act that is well capitalized, as defined by the 
                appropriate Federal banking agency.
            (2) Insured amount.--The term ``insured amount'' means the 
        amount that is the greater of--
                    (A) the standard maximum deposit insurance amount 
                (as defined in section 11(a)(1)(E) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E))); or
                    (B) such higher amount negotiated between the 
                Secretary of the Treasury and the Federal Deposit 
                Insurance Corporation under which the Corporation will 
                insure all deposits of such higher amount.
            (3) Federal banking agencies.--The terms ``appropriate 
        Federal banking agency'' and ``Federal banking agencies'' have 
        the meaning given those terms, respectively, under section 3 of 
        the Federal Deposit Insurance Act.
            (4) Qualifying account.--The term ``qualifying account'' 
        means any account established in the Department of the Treasury 
        that--
                    (A) is controlled by the Secretary; and
                    (B) is expected to maintain a balance greater than 
                $200,000,000 for the following 24-month period.

SEC. 13. STREAMLINED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION 
              APPLICATIONS AND REPORTING.

    (a) Application Processes.--Not later than 12 months after the date 
of the enactment of this Act and with respect to any person having 
assets under $3,000,000,000 that submits an application for deposit 
insurance with the Federal Deposit Insurance Corporation that could 
also become a community development financial institution, the Federal 
Deposit Insurance Corporation, in consultation with the Administrator 
of the Community Development Financial Institutions Fund, shall--
            (1) develop systems and procedures to record necessary 
        information to allow the Administrator to conduct preliminary 
        analysis for such person to also become a community development 
        financial institution; and
            (2) develop procedures to streamline the application and 
        annual certification processes and to reduce costs for such 
        person to become, and maintain certification as, a community 
        development financial institution.
    (b) Implementation Report.--Not later than 18 months after the date 
of the enactment of this Act, the Federal Deposit Insurance Corporation 
shall submit to Congress a report describing the systems and procedures 
required under subsection (a).
    (c) Annual Report.--
            (1) In general.--Section 17(a)(1) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1827(a)(1)) is amended--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (F) as 
                subparagraph (G);
                    (C) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) applicants for deposit insurance that could 
                also become a community development financial 
                institution (as defined in section 103 of the Riegle 
                Community Development and Regulatory Improvement Act of 
                1994), a minority depository institution (as defined in 
                section 308 of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989), or an impact 
                bank (as designated pursuant to section 5 of the 
                Ensuring Diversity in Community Banking Act); and''.
            (2) Application.--The amendment made by this subsection 
        shall apply with respect to the first report to be submitted 
        after the date that is 2 years after the date of the enactment 
        of this Act.

SEC. 14. TASK FORCE ON LENDING TO SMALL BUSINESS CONCERNS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Administrator of the Small Business 
Administration shall establish a task force to examine methods for 
improving relationships between the Small Business Administration and 
community development financial institutions, minority depository 
institutions, and Impact Banks to increase the volume of loans provided 
by such institutions to small business concerns (as defined under 
section 3 of the Small Business Act (15 U.S.C. 632)).
    (b) Report to Congress.--Not later than 18 months after the 
establishment of the task force described in subsection (a), the 
Administrator of the Small Business Administration shall submit to 
Congress a report on the findings of such task force.

SEC. 15. DISCRETIONARY SURPLUS FUNDS.

    (a) In General.--Subparagraph (A) of section 7(a)(3) of the Federal 
Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by reducing the dollar 
figure described in such subparagraph by $1,400,000,000.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on September 30, 2030.

SEC. 16. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives September 21, 2020.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.