[Congressional Record Volume 168, Number 78 (Tuesday, May 10, 2022)]
[House]
[Pages H4741-H4744]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FAIR HIRING IN BANKING ACT
Mr. GARCIA of Illinois. Madam Speaker, I move to suspend the rules
and pass the bill (H.R. 5911) to amend the Federal Deposit Insurance
Act and the Federal Credit Union Act to expand employment opportunities
for those with a previous minor criminal offense, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5911
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 ``Fair Hiring in Banking
Act''.
SEC. 2. FEDERAL DEPOSIT INSURANCE ACT.
Section 19 of the Federal Deposit Insurance Act (12 U.S.C.
1829) is amended--
(1) by inserting after subsection (b) the following:
``(c) Exceptions.--
``(1) Certain older offenses.--
``(A) In general.--With respect to an individual,
subsection (a) shall not apply to an offense if--
``(i) it has been 7 years or more since the offense
occurred; or
``(ii) the individual was incarcerated with respect to the
offense and it has been 5 years or more since the individual
was released from incarceration.
``(B) Offenses committed by individuals 21 or younger.--For
individuals who committed an offense when they were 21 years
of age or younger, subsection (a) shall not apply to the
offense if it has been more than 30 months since the
sentencing occurred.
``(C) Limitation.--This paragraph shall not apply to an
offense described under subsection (a)(2).
``(2) Expungement and sealing.--With respect to an
individual, subsection (a) shall not apply to an offense if--
``(A) there is an order of expungement, sealing, or
dismissal that has been issued in regard to the conviction in
connection with such offense; and
``(B) it is intended by the language in the order itself,
or in the legislative provisions under which the order was
issued, that the conviction shall be destroyed or sealed from
the individual's State or Federal record, even if exceptions
allow the record to be considered for certain character and
fitness evaluation purposes.
``(3) De minimis exemption.--
``(A) In general.--Subsection (a) shall not apply to such
de minimis offenses as the Corporation determines, by rule.
``(B) Confinement criteria.--In issuing rules under
subparagraph (A), the Corporation shall include a requirement
that the offense was punishable by a term of three years or
less confined in a correctional facility, where such
confinement--
``(i) is calculated based on the time an individual spent
incarcerated as a punishment or a sanction, not as pretrial
detention; and
``(ii) does not include probation or parole where an
individual was restricted to a particular jurisdiction or was
required to report occasionally to an individual or a
specific location.
``(C) Bad check criteria.--In setting the criteria for de
minimis offenses under subparagraph (A), if the Corporation
establishes criteria with respect to insufficient funds
checks, the Corporation shall require that the aggregate
total face value of all insufficient funds checks across all
convictions or program entries related to insufficient funds
checks is $2,000 or less.
``(D) Designated lesser offenses.--Subsection (a) shall not
apply to certain lesser offenses (including the use of a fake
ID, shoplifting, trespass, fare evasion, driving with an
expired license or tag, and such other low-risk offenses as
the Corporation may designate) if 1 year or more has passed
since the applicable conviction or program entry.''; and
(2) by adding at the end the following:
``(f) Consent Applications.--
``(1) In general.--The Corporation shall accept consent
applications from an individual and from an insured
depository institution or depository institution holding
company on behalf of an individual that are filed separately
or contemporaneously with a regional office of the
Corporation.
``(2) Sponsored applications filed with regional offices.--
Consent applications filed at a regional office of the
Corporation by an insured depository institution or
depository institution holding company on behalf of an
individual--
``(A) shall be reviewed by such office;
``(B) may be approved or denied by such office, if such
authority has been delegated to such office by the
Corporation; and
``(C) may only be denied by such office if the general
counsel of the Corporation (or a designee) certifies that the
denial is consistent with this section.
``(3) Individual applications filed with regional
offices.--Consent applications filed at a regional office by
an individual--
``(A) shall be reviewed by such office; and
``(B) may be approved or denied by such office, if such
authority has been delegated to such office by the
Corporation, except with respect to--
``(i) cases involving an offense described under subsection
(a)(2); and
``(ii) such other high-level security cases as may be
designated by the Corporation.
``(4) National office review.--The national office of the
Corporation shall--
[[Page H4742]]
``(A) review any consent application with respect to which
a regional office is not authorized to approve or deny the
application; and
``(B) review any consent application that is denied by a
regional office, if the individual requests a review by the
national office.
``(5) Forms and instructions.--
``(A) Availability.--The Corporation shall make all forms
and instructions related to consent applications available to
the public, including on the website of the Corporation.
``(B) Contents.--The forms and instructions described under
subparagraph (A) shall provide a sample cover letter and a
comprehensive list of items that may accompany the
application, including clear guidance on evidence that may
support a finding of rehabilitation.
``(6) Consideration of criminal history.--
``(A) Regional office consideration.--In reviewing a
consent application, a regional office shall--
``(i) primarily rely on the criminal history record of the
Federal Bureau of Investigation; and
``(ii) provide such record to the applicant to review for
accuracy.
``(B) Certified copies.--The Corporation may not require an
applicant to provide certified copies of criminal history
records unless the Corporation determines that there is a
clear and compelling justification to require additional
information to verify the accuracy of the criminal history
record of the Federal Bureau of Investigation.
``(7) Consideration of rehabilitation.--Consistent with
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et
seq.), the Corporation shall--
``(A) conduct an individualized assessment when evaluating
consent applications that takes into account evidence of
rehabilitation, the applicant's age at the time of the
conviction or program entry, the time that has elapsed since
conviction or program entry, and the relationship of
individual's offense to the responsibilities of the
applicable position;
``(B) consider the individual's employment history, letters
of recommendation, certificates documenting participation in
substance abuse programs, successful participating in job
preparation and educational programs, and other relevant
mitigating evidence; and
``(C) consider any additional information the Corporation
determines necessary for safety and soundness.
``(8) Scope of employment.--With respect to an approved
consent application filed by an insured depository
institution or depository institution holding company on
behalf of an individual, if the Corporation determines it
appropriate, such approved consent application shall allow
the individual to work for the same employer (without
restrictions on the location) and across positions, except
that the prior consent of the Corporation (which may require
a new application) shall be required for any proposed
significant changes in the individual's security-related
duties or responsibilities, such as promotion to an officer
or other positions that the employer determines will require
higher security screening credentials.
``(9) Coordination with the ncua.--In carrying out this
section, the Corporation shall consult and coordinate with
the National Credit Union Administration as needed to promote
consistent implementation where appropriate.
``(g) Definitions.--In this section:
``(1) Consent application.--The term `consent application'
means an application filed with Corporation by an individual
(or by an insured depository institution or depository
institution holding company on behalf of an individual)
seeking the written consent of the Corporation under
subsection (a)(1).
``(2) Criminal offense involving dishonesty.--The term
`criminal offense involving dishonesty'--
``(A) means an offense under which an individual, directly
or indirectly--
``(i) cheats or defrauds; or
``(ii) wrongfully takes property belonging to another in
violation of a criminal statute;
``(B) includes an offense that Federal, State, or local law
defines as dishonest, or for which dishonesty is an element
of the offense; and
``(C) does not include--
``(i) a misdemeanor criminal offense committed more than
one year before the date on which an individual files a
consent application, excluding any period of incarceration;
or
``(ii) an offense involving the possession of controlled
substances.
``(3) Pretrial diversion or similar program.--The term
`pretrial diversion or similar program' means a program
characterized by a suspension or eventual dismissal or
reversal of charges or criminal prosecution upon agreement by
the accused to restitution, drug or alcohol rehabilitation,
anger management, or community service.''.
SEC. 3. FEDERAL CREDIT UNION ACT.
Section 205(d) of the Federal Credit Union Act (12 U.S.C.
1785(d)) is amended by adding at the end the following:
``(4) Exceptions.--
``(A) Certain older offenses.--
``(i) In general.--With respect to an individual, paragraph
(1) shall not apply to an offense if--
``(I) it has been 7 years or more since the offense
occurred; or
``(II) the individual was incarcerated with respect to the
offense and it has been 5 years or more since the individual
was released from incarceration.
``(ii) Offenses committed by individuals 21 or younger.--
For individuals who committed an offense when they were 21
years of age or younger, paragraph (1) shall not apply to the
offense if it has been more than 30 months since the
sentencing occurred.
``(iii) Limitation.--This subparagraph shall not apply to
an offense described under paragraph (1)(B).
``(B) Expungement and sealing.--With respect to an
individual, paragraph (1) shall not apply to an offense if--
``(i) there is an order of expungement, sealing, or
dismissal that has been issued in regard to the conviction in
connection with such offense; and
``(ii) it is intended by the language in the order itself,
or in the legislative provisions under which the order was
issued, that the conviction shall be destroyed or sealed from
the individual's State or Federal record, even if exceptions
allow the record to be considered for certain character and
fitness evaluation purposes.
``(C) De minimis exemption.--
``(i) In general.--Paragraph (1) shall not apply to such de
minimis offenses as the Board determines, by rule.
``(ii) Confinement criteria.--In issuing rules under clause
(i), the Board shall include a requirement that the offense
was punishable by a term of three years or less confined in a
correctional facility, where such confinement--
``(I) is calculated based on the time an individual spent
incarcerated as a punishment or a sanction, not as pretrial
detention; and
``(II) does not include probation or parole where an
individual was restricted to a particular jurisdiction or was
required to report occasionally to an individual or a
specific location.
``(iii) Bad check criteria.--In setting the criteria for de
minimis offenses under clause (i), if the Board establishes
criteria with respect to insufficient funds checks, the Board
shall require that the aggregate total face value of all
insufficient funds checks across all convictions or program
entries related to insufficient funds checks is $2,000 or
less.
``(iv) Designated lesser offenses.--Paragraph (1) shall not
apply to certain lesser offenses (including the use of a fake
ID, shoplifting, trespass, fare evasion, driving with an
expired license or tag, and such other low-risk offenses as
the Board may designate) if 1 year or more has passed since
the applicable conviction or program entry.
``(5) Consent applications.--
``(A) In general.--The Board shall accept consent
applications from an individual and from an insured credit
union on behalf of an individual that are filed separately or
contemporaneously with a regional office of the Board.
``(B) Sponsored applications filed with regional offices.--
Consent applications filed at a regional office of the Board
by an insured credit union on behalf of an individual--
``(i) shall be reviewed by such office;
``(ii) may be approved or denied by such office, if such
authority has been delegated to such office by the Board; and
``(iii) may only be denied by such office if the general
counsel of the Board (or a designee) certifies that the
denial is consistent with this section.
``(C) Individual applications filed with regional
offices.--Consent applications filed at a regional office by
an individual--
``(i) shall be reviewed by such office; and
``(ii) may be approved or denied by such office, if such
authority has been delegated to such office by the Board,
except with respect to--
``(I) cases involving an offense described under paragraph
(1)(B); and
``(II) such other high-level security cases as may be
designated by the Board.
``(D) National office review.--The national office of the
Board shall--
``(i) review any consent application with respect to which
a regional office is not authorized to approve or deny the
application; and
``(ii) review any consent application that is denied by a
regional office, if the individual requests a review by the
national office.
``(E) Forms and instructions.--
``(i) Availability.--The Board shall make all forms and
instructions related to consent applications available to the
public, including on the website of the Board.
``(ii) Contents.--The forms and instructions described
under clause (i) shall provide a sample cover letter and a
comprehensive list of items that may accompany the
application, including clear guidance on evidence that may
support a finding of rehabilitation.
``(F) Consideration of criminal history.--
``(i) Regional office consideration.--In reviewing a
consent application, a regional office shall--
``(I) primarily rely on the criminal history record of the
Federal Bureau of Investigation; and
``(II) provide such record to the applicant to review for
accuracy.
``(ii) Certified copies.--The Board may not require an
applicant to provide certified copies of criminal history
records unless the Board determines that there is a clear and
compelling justification to require additional information to
verify the accuracy of the criminal history record of the
Federal Bureau of Investigation.
``(G) Consideration of rehabilitation.--Consistent with
title VII of the Civil Rights
[[Page H4743]]
Act of 1964 (42 U.S.C. 2000e et seq.), the Board shall--
``(i) conduct an individualized assessment when evaluating
consent applications that takes into account evidence of
rehabilitation, the applicant's age at the time of the
conviction or program entry, the time that has elapsed since
conviction or program entry, and the relationship of
individual's offense to the responsibilities of the
applicable position;
``(ii) consider the individual's employment history,
letters of recommendation, certificates documenting
participation in substance abuse programs, successful
participating in job preparation and educational programs,
and other relevant mitigating evidence; and
``(iii) consider any additional information the Board
determines necessary for safety and soundness.
``(H) Scope of employment.--With respect to an approved
consent application filed by an insured credit union on
behalf of an individual, if the Board determines it
appropriate, such approved consent application shall allow
the individual to work for the same employer (without
restrictions on the location) and across positions, except
that the prior consent of the Board (which may require a new
application) shall be required for any proposed significant
changes in the individual's security-related duties or
responsibilities, such as promotion to an officer or other
positions that the employer determines will require higher
security screening credentials.
``(I) Coordination with fdic.--In carrying out this
subsection, the Board shall consult and coordinate with the
Federal Deposit Insurance Corporation as needed to promote
consistent implementation where appropriate.
``(6) Definitions.--In this subsection:
``(A) Consent application.--The term `consent application'
means an application filed with Board by an individual (or by
an insured credit union on behalf of an individual) seeking
the written consent of the Board under paragraph (1)(A).
``(B) Criminal offense involving dishonesty.--The term
`criminal offense involving dishonesty'--
``(i) means an offense under which an individual, directly
or indirectly--
``(I) cheats or defrauds; or
``(II) wrongfully takes property belonging to another in
violation of a criminal statute;
``(ii) includes an offense that Federal, State, or local
law defines as dishonest, or for which dishonesty is an
element of the offense; and
``(iii) does not include--
``(I) a misdemeanor criminal offense committed more than
one year before the date on which an individual files a
consent application, excluding any period of incarceration;
or
``(II) an offense involving the possession of controlled
substances.
``(C) Pretrial diversion or similar program.--The term
`pretrial diversion or similar program' means a program
characterized by a suspension or eventual dismissal or
reversal of charges or criminal prosecution upon agreement by
the accused to restitution, drug or alcohol rehabilitation,
anger management, or community service.''.
SEC. 4. REVIEW AND REPORT TO CONGRESS.
Not later than the end of the 2-year period beginning on
the date of enactment of this Act, the Federal Deposit
Insurance Corporation and the National Credit Union
Administration shall--
(1) review the rules issued to carry out this Act and the
amendments made by this Act on--
(A) the application of section 19 of the Federal Deposit
Insurance Act (12 U.S.C. 1829) and section 205(d) of the
Federal Credit Union Act (12 U.S.C. 1785(d));
(B) the number of applications for consent applications
under such sections; and
(C) the rates of approval and denial for consent
applications under such sections;
(2) make the results of the review required under paragraph
(1) available to the public; and
(3) issue a report to Congress containing any legislative
or regulatory recommendations for expanding employment
opportunities for those with a previous minor criminal
offense.
SEC. 5. 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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Garcia) and the gentleman from Arkansas (Mr. Hill) each
will control 20 minutes.
The Chair recognizes the gentleman from Illinois.
General Leave
Mr. GARCIA of Illinois. Madam Speaker, I ask unanimous consent that
all Members may have 5 legislative days in which to revise and extend
their remarks on this legislation and to include extraneous material
thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. GARCIA of Illinois. Madam Speaker, I yield myself such time as I
may consume.
Madam Speaker, I rise in strong support of H.R. 5911, the Fair Hiring
in Banking Act. I thank the chair of our Subcommittee on Diversity and
Inclusion, Congresswoman Joyce Beatty, for this important piece of
legislation and the Members of both sides of the aisle who came
together to support this bill.
For far too long, American citizens, especially people of color, who
have paid their debt to society have continued to face unnecessary
barriers to employment within the financial services industry.
Black and Latinx people are over-policed and face harsher prosecution
and sentencing than their White peers for the same crimes. Arrest
records for such convictions often prevent individuals from securing
employment, putting them at higher risk of homelessness and recidivism.
Until recent changes by the FDIC and the NCUA, if a bank or credit
union wanted to hire an individual who is highly qualified but happens
to have a couple of minor drug possession violations on their record
from 30 years ago, they would need to go through a cumbersome process
for filing for a waiver from the FDIC or NCUA to allow them to hire
this highly qualified individual. This is true whether the job that
they are applying for is a janitor or a bank teller.
These kinds of policies created entirely unnecessary and unjustified
barriers to employment for highly qualified individuals who have done
their time and who deserve to be given a second chance to reintegrate
into society.
This bill would codify and expand on these recent changes from the
FDIC and NCUA to break down these barriers. In particular, this bill
reduces the lookback period for certain criminal charges from an
indeterminate timeline to 7 years, or 5 years from the time a person is
released from incarceration.
The bill also makes it clear that criminal offenses that have been
expunged, sealed, or dismissed are not included in the FDIC or NCUA
review of eligibility to work for an insured bank or credit union.
This bill also would build on the administrative changes that FDIC
and NCUA have made by providing statutory clarity and the definition of
certain crimes of dishonesty that receive special treatment under their
rules.
We must ensure that those who have successfully paid their debt to
society are not arbitrarily denied job opportunities that they
otherwise are qualified to do.
Again, I thank Chair Beatty for introducing this important bill, and
I urge my colleagues to join me in supporting it.
Madam Speaker, I reserve the balance of my time.
Mr. HILL. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise in support of H.R. 5911, the Fair Hiring in
Banking Act. I appreciate the hard work of Congresswoman Beatty from
Ohio in its preparation and passage.
This bill is an important step toward continuing to expand employment
opportunities for all Americans, including ex-offenders.
This bill is bipartisan. In fact, this bill codifies rules
promulgated under the previous administration. The FDIC rules struck a
balance between allowing qualified individuals to obtain employment
through the waiver process with the need to protect the safety and
soundness of our banking system.
Republicans and Democrats worked together on this bill to ensure that
both of those objectives were met. In fact, I am proud to say that one
place where we worked together to improve the bill was on the question
of rehabilitation. Just because an individual once committed a crime
does not automatically mean that they can never be trusted, nor does it
mean they are unqualified to work in our financial system.
Madam Speaker, it is our responsibility as lawmakers to ensure that
our banking system is safeguarded against bad actors, but it is also
our responsibility to ensure that those who are
[[Page H4744]]
qualified to work in America's financial institutions have that
opportunity to pursue happiness in that manner.
Madam Speaker, I urge my colleagues to support this bill and support
those who have repaid their debt to society as they begin that
important journey of shifting back to society, building a new life, and
pursuing happiness.
Madam Speaker, I reserve the balance of my time.
{time} 1545
Mr. GARCIA of Illinois. Madam Speaker, I yield 3 minutes to the
gentlewoman from Ohio (Mrs. Beatty).
Mrs. BEATTY. Madam Speaker, I thank the gentleman from Illinois for
yielding time, and I also thank him and the minority for their support
of this bill.
Madam Speaker, with the historic recovery since President Biden took
office, there are now 11.5 million job openings in the United States.
Unfortunately, for 78 million justice-involved individuals--that is one
out of every three American adults--those opportunities are too often
out of reach.
Under current law, people with criminal records are prohibited from
working in a federally insured financial institution like a bank or a
credit union unless they get a waiver from the government. That is just
not for major felonies but also for minor misdemeanors, like
shoplifting or having an altercation.
That is why my bill, H.R. 5911, the Fair Hiring in Banking Act, would
update the law to reduce barriers for individuals with criminal records
seeking to work at a federally insured financial institution.
Take the example of a young person that had an altercation with a
police officer, a misdemeanor, and got 6 months probation with no time
served and without admitting guilt. They would fall under this.
Specifically, this bill would reduce the existing lifetime ban to a
more effective 7-year ban. Research shows that after 7 years, someone
convicted of a felony is no more likely to commit a new offense than
any other person.
Importantly, my bill would keep in place the ban for people who are
convicted of major financial offenses like bank fraud or money
laundering.
The bill also, as you have heard, codifies some of the recent
rulemaking of the FDIC to exempt those individuals whose crimes have
been expunged or whose offenses happened before the age of 21.
I would like to point out to my colleagues that this is a bipartisan
bill that passed the Financial Services Committee without controversy.
It has the backing of major financial services industry groups and a
broad range of organizations, from the United States Chamber of
Commerce to Public Citizen.
I urge my colleagues to support this bill.
Mr. HILL. Madam Speaker, I yield myself such time as I may consume.
Again, I thank Mrs. Beatty for her work on this bill and her
leadership as our subcommittee chair.
I think it deserves reiterating that when former FDIC Chair Jelena
McWilliams was at the helm, she is the one who led the way to issue
rules that allow individuals convicted of certain crimes who are
currently barred from employment in the banking industry to apply for
an exemption. Chair McWilliams did, I think, an outstanding job at the
helm of the FDIC on behalf of the Trump administration.
H.R. 5911 takes the approach that would codify--put into law--aspects
of that rulemaking, as well as expand the employment opportunities at
banks and credit unions.
As Congresswoman Beatty says, it does this, in part, by eliminating
that waiver requirement for certain older criminal charges and reducing
the lookback for crimes committed by persons under the age of 21.
This bill in no way eliminates the waiver requirement for crimes
specific to a financial institution, and it doesn't change the 10-year
minimum probation period.
This bipartisan bill codifies work done by the prior administration
in an effective way that opens up, as I say, the opportunity for many
people in this country to pursue happiness by way of a career in the
financial services industry.
Madam Speaker, I spent almost four decades in the financial industry
and have been involved in hiring hundreds of people in the banking
industry, and this is the kind of a practical, commonsense view that I
think will help many of our banks find and retain key members of their
staff.
Madam Speaker, I thank the gentlewoman from Ohio for her work. I
encourage colleagues on both sides of the aisle to support the bill,
and I yield back the balance of my time.
Mr. GARCIA of Illinois. Madam Speaker, I yield myself the balance of
my time.
H.R. 5911 is just the next step toward addressing employment barriers
for justice-involved individuals. More must be done, and I am glad that
we can agree in a bipartisan manner to provide this opportunity with
fair access to employment opportunities at banks and credit unions.
I thank Chair Beatty for this bill, and I again urge my colleagues to
join me in supporting this important H.R. 5911.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Illinois (Mr. Garcia) that the House suspend the rules
and pass the bill, H.R. 5911, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROY. Madam Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.
____________________