[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 741 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 741
To require the Federal financial institutions regulatory agencies to
take risk profiles and business models of institutions into account
when taking regulatory actions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2019
Mr. Tipton (for himself, Mr. Budd, Mr. Marshall, Mr. Womack, Mr. Lucas,
Mr. Rodney Davis of Illinois, Mr. Barr, Mr. King of New York, Mr.
Loudermilk, Mr. Mullin, Mr. Fortenberry, Mr. Latta, Mr. Collins of New
York, Mr. Buck, Mr. Johnson of Ohio, Mr. Cole, Mr. Stivers, Mr. Zeldin,
Mr. Davidson of Ohio, Mr. Posey, Mr. Hill of Arkansas, Mr. Riggleman,
and Mr. Kustoff of Tennessee) introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Federal financial institutions regulatory agencies to
take risk profiles and business models of institutions into account
when taking regulatory actions, 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 ``Taking Account of Institutions with
Low Operation Risk Act of 2019'' or the ``TAILOR Act of 2019''.
SEC. 2. REGULATIONS APPROPRIATE TO BUSINESS MODELS.
(a) In General.--For any regulatory action occurring after the date
of the enactment of this Act, each Federal financial institutions
regulatory agency shall--
(1) take into consideration the risk profile and business
models of each type of institution or class of institutions
subject to the regulatory action;
(2) determine the necessity, appropriateness, and impact of
applying such regulatory action to such institutions or classes
of institutions; and
(3) tailor such regulatory action in a manner that limits
the regulatory compliance impact, cost, liability risk, and
other burdens, as appropriate, for the risk profile and
business model of the institution or class of institutions
involved.
(b) Other Considerations.--In carrying out the requirements of
subsection (a), each Federal financial institutions regulatory agency
shall consider--
(1) the impact that such regulatory action, both by itself
and in conjunction with the aggregate effect of other
regulations, has on the ability of the applicable institution
or class of institutions to serve evolving and diverse customer
needs;
(2) the potential impact of examination manuals, regulatory
actions taken with respect to third-party service providers, or
other regulatory directives that may be in conflict or
inconsistent with the tailoring of such regulatory action
described in subsection (a)(3); and
(3) the underlying policy objectives of the regulatory
action and statutory scheme involved.
(c) Notice of Proposed and Final Rulemaking.--Each Federal
financial institutions regulatory agency shall disclose in every notice
of proposed rulemaking and in any final rulemaking for a regulatory
action how the agency has applied subsections (a) and (b).
(d) Reports to Congress.--
(1) Individual agency reports.--
(A) In general.--Not later than 1 year after the
date of the enactment of this Act and annually
thereafter, each Federal financial institutions
regulatory agency shall report to the Committee on
Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of
the Senate on the specific actions taken to tailor the
regulatory actions of the agency pursuant to the
requirements of this Act.
(B) Appearance before the committees.--The head of
each Federal financial institution regulatory agency
shall appear before the Committee on Financial Services
of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate after
each report is made pursuant to subparagraph (A) to
testify on the contents of such report.
(2) FIEC reports.--
(A) In general.--Not later than 3 months after each
report is submitted under paragraph (1), the Financial
Institutions Examination Council shall report to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate on--
(i) the extent to which regulatory actions
tailored pursuant to this Act result in
different treatment of similarly situated
institutions of diverse charter types; and
(ii) the reasons for such differential
treatment.
(B) Appearance before the committees.--The Chairman
of the Financial Institutions Examination Council shall
appear before the Committee on Financial Services of
the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate after
each report is made pursuant to subparagraph (A) to
testify on the contents of such report.
(e) Limited Look-Back Application.--
(1) In general.--Each Federal financial institutions
regulatory agency shall conduct a review of all regulations
adopted during the period beginning on the date that is seven
years before the date of the introduction of this Act in the
House of Representatives and ending on the date of the
enactment of this Act, and apply the requirements of this Act
to such regulations.
(2) Revision.--If the application of the requirements of
this Act to any such regulation requires such regulation to be
revised, the applicable Federal financial institutions
regulatory agency shall revise such regulation within 3 years
of the enactment of this Act.
(f) Definitions.--In this Act, the following definitions shall
apply:
(1) Federal financial institutions regulatory agencies.--
The term ``Federal financial institutions regulatory agencies''
means the Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the National Credit Union
Administration, and the Bureau of Consumer Financial
Protection.
(2) Regulatory action.--The term ``regulatory action''
means any proposed, interim, or final rule or regulation,
guidance, or published interpretation.
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