[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7121 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7121

 To place post-employment restrictions on certain former employees of 
  insured depository institutions, insured credit unions, and certain 
                   agencies, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2024

 Mr. Schiff (for himself and Mr. Frost) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To place post-employment restrictions on certain former employees of 
  insured depository institutions, insured credit unions, and certain 
                   agencies, 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 ``Financial Regulators Revolving Door 
Enforcement Act''.

SEC. 2. RESTRICTION ON EMPLOYMENT OF CERTAIN FORMER AGENCY EMPLOYEES 
              AND FORMER SENIOR EMPLOYEES OF INSURED DEPOSITORY 
              INSTITUTIONS AND CREDIT UNIONS.

    (a) 2-Year Restriction on Agency Employment and Consulting.--
            (1) In general.--An individual described in paragraph (2) 
        shall be ineligible for an appointment to a covered agency, and 
        no officer or employee of the Federal Government may procure 
        the services of such individual as a consultant for a covered 
        agency.
            (2) Restriction criteria.--An individual described in this 
        paragraph is an individual who, during the 2-year period ending 
        on the date such individual accepts compensation as an 
        employee, officer, or consultant of a covered agency, was 
        employed as a financial executive officer by--
                    (A) an insured depository institution that was the 
                subject of an official action by such agency during the 
                20-year period ending on such date, including the award 
                of a Federal contract, an investigation, or the 
                imposition of a penalty; or
                    (B) an insured credit union that was the subject of 
                such an official action by such agency during the 20-
                year period ending on such date.
    (b) 2-Year Restriction on Private Employment.--An individual may 
not, during the 2-year period after the termination date of the service 
or employment of such individual as a senior agency employee at a 
covered agency, knowingly accept compensation as an employee, officer, 
director, or consultant from--
            (1) an insured depository institution regulated by such 
        agency; or
            (2) an insured credit union regulated by such agency.

SEC. 3. RESTRICTION ON CONTACT WITH COVERED AGENCY BY FORMER AGENCY 
              EMPLOYEES.

    An individual may not, during the 2-year period after the 
termination date of the service or employment of such individual as a 
senior agency employee at a covered agency, contact such agency on 
behalf of another individual or entity with respect to--
            (1) a regulation, rule, or proposed rule of such agency;
            (2) a policy of such agency;
            (3) the examination activities of such agency;
            (4) the distribution of Federal funds from such agency to 
        an insured depository institution or insured credit union, 
        including through contract; or
            (5) the enforcement activities of such agency.

SEC. 4. REQUIRED DISCLOSURES FOR CERTAIN FORMER AGENCY EMPLOYEES AND 
              EXECUTIVES OF INSURED DEPOSITORY INSTITUTIONS AND INSURED 
              CREDIT UNIONS.

    (a) Required Disclosure for Certain Former Agency Employees.--
            (1) In general.--Not later than 1 year after the first time 
        an individual who had been a senior agency employee at a 
        covered agency knowingly accepts compensation as an employee, 
        officer, director, or consultant from an insured depository 
        institution or insured credit union regulated by such agency, 
        such individual shall submit to the head of such agency a 
        disclosure containing the following information:
                    (A) The title of each position held by such 
                individual at such insured depository institution or 
                insured credit union.
                    (B) The date on which such individual began working 
                as an employee, officer, director, or consultant at 
                such institution or credit union.
            (2) Limitation.--Paragraph (1) shall not apply to an 
        individual on or after the date that is 5 years after the last 
        date on which such individual was a senior agency employee at a 
        covered agency.
    (b) Required Employment Disclosure for Certain Executives.--
            (1) In general.--Not later than 1 year after the earlier of 
        the first time an individual who was a financial executive 
        officer becomes a senior agency employee of a covered agency or 
        enters into a contract with the head of a covered agency to 
        provide services as a consultant after each period as a 
        financial executive officer, such individual shall submit to 
        such head of a covered agency a disclosure, including--
                    (A) the title of each position previously held by 
                such individual at an insured depository institution or 
                insured credit union regulated by such agency; and
                    (B) the first and late date on which such 
                individual held each position described in subparagraph 
                (A).
            (2) Limitation.--Paragraph (1) shall not apply to an 
        individual who, during the 5-year period immediately proceeding 
        an appointment or the date of a contract described in such 
        paragraph, was not a financial executive officer.

SEC. 5. TRAINING REQUIREMENT FOR EMPLOYEES OF COVERED AGENCIES.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, and annually thereafter, each covered agency 
shall provide a training described in subsection (b) to each senior 
agency employee.
    (b) Training Requirements.--The training required under subsection 
(a) shall include information regarding--
            (1) avoiding conflicts of interest with respect to insured 
        depository institutions and insured credit unions;
            (2) ethical standards required by the agency providing such 
        training;
            (3) any obligations of senior agency employees under 
        section 2635.502 of title 5, Code of Federal Regulations (or 
        any successor regulations);
            (4) any legal protections for a whistleblower who reports a 
        violation of the provisions of this Act, including--
                    (A) protections against retaliation; and
                    (B) any incentive available to a whistleblower for 
                reporting such violation; and
            (5) such other matters, as determined by the head of the 
        agency providing such training.

SEC. 6. REVIEW OF INSURED DEPOSITORY INSTITUTION AND INSURED CREDIT 
              UNION COMPLIANCE AND POLICIES.

    Not later than 1 year after the date of the enactment of this Act 
and every 2 years thereafter, each head of a covered agency shall 
conduct a review of each insured depository institution and insured 
credit union to--
            (1) determine if such institution or credit union is in 
        compliance with the requirements of this Act; and
            (2) examine the policies of such institution and credit 
        union with respect to the requirements of this Act.

SEC. 7. PENALTIES.

    (a) In General.--If the Attorney General determines that an 
individual, insured depository institution, or insured credit union has 
violated a provision of this Act, the Attorney General shall impose a 
civil penalty in an amount determined by the Attorney General.
    (b) Considerations.--In determining the amount of a penalty under 
subsection (a), the Attorney General shall consider--
            (1) the severity of such violation, as determined by the 
        Attorney General;
            (2) the number of penalties previously imposed on such 
        individual, institution, or credit union under subsection (a); 
        and
            (3) whether such individual, institution, or credit union 
        has been penalized for such violation under section 216 of 
        title 18, United States Code.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) Covered agency.--The term ``covered agency'' means the 
        following:
                    (A) The Board of Governors of the Federal Reserve 
                System.
                    (B) The Bureau of Consumer Financial Protection.
                    (C) The Federal Deposit Insurance Corporation.
                    (D) The National Credit Union Administration.
                    (E) The Office of the Comptroller of the Currency.
            (2) Financial executive officer.--The term ``financial 
        executive officer'' means, with respect to an insured 
        depository institution or insured credit union--
                    (A) the president of such institution or credit 
                union;
                    (B) a vice president of such institution or credit 
                union who is the head of a principal business unit, 
                division, or function (such as sales, administration, 
                or finance);
                    (C) an employee of such institution or credit union 
                who performs a policymaking function; or
                    (D) an officer of a subsidiary of such institution 
                or credit union who performs a policymaking function 
                for such institution or credit union.
            (3) Insured credit union.--The term ``insured credit 
        union'' has the meaning given such term in section 101 of the 
        Federal Credit Union Act (12 U.S.C. 1752).
            (4) Insured depository institution.-- The term ``insured 
        depository institution'' has the meaning given such term in 
        section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813).
            (5) Senior agency employee.--The term ``senior agency 
        employee'' means a Federal employee who is--
                    (A) employed in a position in the executive branch 
                for which the rate of basic pay is--
                            (i) determined under subchapter II of 
                        chapter 53 of title 5, United States Code; or
                            (ii) equal to or greater than 86.5 percent 
                        of the rate of basic pay for level II of the 
                        Executive Schedule, not including any 
                        allowances, premium pay paid under the 
                        provisions of law cited in section 5547(a) of 
                        such title, or locality-based comparability 
                        payments under section 5304 of such title 5, or 
                        similar authority;
                    (B) appointed by the President to a position under 
                section 105(a)(2)(A) or 105(a)(2)(B) of title 3, United 
                States Code;
                    (C) appointed by the Vice President to a position 
                under section 106(a)(1)(A) or 106(a)(1)(B) of title 3, 
                United States Code; or
                    (D) an active duty commissioned officer of the 
                uniformed services serving in a position for which the 
                pay grade, as specified in section 201 of title 37, 
                United States Code, is pay grade O-7 or above.
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