[Congressional Record Volume 168, Number 102 (Wednesday, June 15, 2022)]
[House]
[Pages H5556-H5586]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FEDERAL RESERVE RACIAL AND ECONOMIC EQUITY ACT
Mr. GREEN of Texas. Mr. Speaker, pursuant to House Resolution 1170, I
call up the bill (H.R. 2543) to amend the Federal Reserve Act to add
additional demographic reporting requirements, to modify the goals of
the Federal Reserve System, and for other purposes, and ask for its
immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, in lieu
of the amendment in the nature of a substitute recommended by the
Committee on Financial Services printed in the bill, an amendment in
the nature of a substitute consisting of the text of Rules Committee
Print 117-49, modified by the amendment printed in part A of House
Report 117-366, is adopted and the bill, as amended, is considered
read.
The text of the bill is as follows:
H.R. 2543
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 ``Financial
Services Racial Equity, Inclusion, and Economic Justice
Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--EQUITY IN MONETARY POLICY
Sec. 101. Duty to minimize and eliminate racial disparities.
Sec. 102. Appearances before and reports to the Congress.
[[Page H5557]]
TITLE II--DIVERSITY DATA COLLECTION AND REPORTING
Subtitle A--Diversity and Inclusion Data Accountability and
Transparency
Sec. 211. Disclosures by regulated entities.
Subtitle B--LGBTQ Business Equal Credit Enforcement and Investment
Sec. 221. Small business loan data collection.
TITLE III--ACCESS TO HOUSING AND LENDING
Subtitle A--Improving Language Access in Mortgage Servicing
Sec. 311. Language access requirements and resources.
Subtitle B--Fair Lending for All
Sec. 321. Office of Fair Lending Testing.
Sec. 322. Prohibition on credit discrimination.
Sec. 323. Criminal penalties for violations of the Equal Credit
Opportunity Act.
Sec. 324. Review of loan applications.
Sec. 325. Mortgage data collection.
Subtitle C--Promoting and Advancing Communities of Color Through
Inclusive Lending
Sec. 331. Strengthening diverse and mission-driven community financial
institutions.
Sec. 332. Capital investments, grants, and technology support for MDIs
and CDFIs.
Sec. 333. Supporting Young Entrepreneurs Program.
Sec. 334. Map of minority depository institutions and community
development financial institutions.
Sec. 335. Report on certified community development financial
institutions.
Sec. 336. Consultation and minimization of data requests.
Sec. 337. Access to the discount window of the Federal Reserve System
for MDIs and CDFIs.
Sec. 338. Study on securitization by CDFIs.
TITLE IV--DIVERSITY IN FINANCIAL INSTITUTIONS AND CORPORATIONS
Subtitle A--Promoting New and Diverse Depository Institutions
Sec. 411. Study and strategic plan.
Subtitle B--Promoting Diversity and Inclusion in Banking
Sec. 421. Diversity and inclusion ratings.
Subtitle C--Improving Corporate Governance Through Diversity
Sec. 431. Submission of data relating to diversity by issuers.
Sec. 432. Diversity advisory group.
Subtitle D--Ensuring Diversity in Community Banking
Sec. 441. Short title.
Sec. 442. Sense of Congress on funding the loan-loss reserve fund for
small dollar loans.
Sec. 443. Definitions.
Sec. 444. Inclusion of women's banks in the definition of minority
depository institution.
Sec. 445. Establishment of impact bank designation.
Sec. 446. Minority Depositories Advisory Committees.
Sec. 447. Federal deposits in minority depository institutions.
Sec. 448. Minority Bank Deposit Program.
Sec. 449. Diversity report and best practices.
Sec. 450. Investments in minority depository institutions and impact
banks.
Sec. 451. Report on covered mentor-protege programs.
Sec. 452. Custodial deposit program for covered minority depository
institutions and impact banks.
Sec. 453. Streamlined community development financial institution
applications and reporting.
Sec. 454. Task force on lending to small business concerns.
Subtitle E--Expanding Opportunity for Minority Depository Institutions
Sec. 461. Establishment of Financial Agent Mentor-Protege Program.
TITLE V--COMMUNITY DEVELOPMENT
Subtitle A--CDFI Bond Guarantee Program Improvement
Sec. 511. Sense of Congress.
Sec. 512. Guarantees for bonds and notes issued for community or
economic development purposes.
Sec. 513. Report on the CDFI bond guarantee program.
Subtitle B--Expanding Financial Access for Underserved Communities
Sec. 521. Credit union service to underserved areas.
Sec. 522. Member business lending in underserved areas.
Sec. 523. Underserved area defined.
Sec. 524. Reports by the National Credit Union Administration.
TITLE I--EQUITY IN MONETARY POLICY
SEC. 101. DUTY TO MINIMIZE AND ELIMINATE RACIAL DISPARITIES.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended
by inserting after section 2B the following:
``SEC. 2C. DUTY TO MINIMIZE AND ELIMINATE RACIAL DISPARITIES.
``The Board of Governors of the Federal Reserve System and
the Federal Open Market Committee shall exercise all duties
and functions in a manner that fosters the elimination of
disparities across racial and ethnic groups with respect to
employment, income, wealth, and access to affordable credit,
including actions in carrying out--
``(1) monetary policy;
``(2) regulation and supervision of banks, thrifts, bank
holding companies, savings and loan holding companies, and
nonbank financial companies and systemically important
financial market utilities designated by the Financial
Stability Oversight Council;
``(3) operation of payment systems;
``(4) implementation of the Community Reinvestment Act of
1977;
``(5) enforcement of fair lending laws; and
``(6) community development functions.''.
SEC. 102. APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.
Section 2B of the Federal Reserve Act (12 U.S.C. 225b) is
amended--
(1) in subsection (a)(1)--
(A) in subparagraph (A), by striking ``and'' at the end;
and
(B) by striking subparagraph (B) and inserting the
following:
``(B) economic developments and prospects for the future
described in the report required in subsection (b), including
a discussion of disparities in employment, income, and wealth
across racial and ethnic groups as well as other specific
segments of the population; and
``(C) plans, activities, and actions of the Board and the
Federal Open Market Committee to minimize and eliminate
disparities across racial and ethnic groups with respect to
employment, wages, wealth, and access to affordable credit
pursuant to section 2C.''; and
(2) in subsection (b)--
(A) by striking ``The Board'' and inserting the following:
``(1) In general.--The Board''; and
(B) by adding at the end the following:
``(2) Trend information.--
``(A) In general.--Each report required under paragraph (1)
shall include recent trends in the unemployment rate, labor
force participation rate, employment to population ratio,
median household income, and change in real earnings.
``(B) Demographic information.--The trends required to be
reported under subparagraph (A) shall include a comparison
among different demographic groups, including race (White,
African-American, Latino, Native American, and Asian
populations), ethnicity, gender, and educational
attainment.''.
TITLE II--DIVERSITY DATA COLLECTION AND REPORTING
Subtitle A--Diversity and Inclusion Data Accountability and
Transparency
SEC. 211. DISCLOSURES BY REGULATED ENTITIES.
Section 342(b) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5452(b)) is amended by
adding at the end the following:
``(5) Disclosures by regulated entities.--The Director of
each Office shall require entities with 100 employees or
greater regulated by the applicable agency to provide such
information as may be required to carry out the duties of the
Director.''.
Subtitle B--LGBTQ Business Equal Credit Enforcement and Investment
SEC. 221. SMALL BUSINESS LOAN DATA COLLECTION.
(a) In General.--Section 704B of the Equal Credit
Opportunity Act (15 U.S.C. 1691c-2) is amended--
(1) by inserting ``LGBTQ-owned,'' after ``minority-owned,''
each place such term appears;
(2) in subsection (e)(2)(G), by inserting ``, sexual
orientation, gender identity'' after ``sex''; and
(3) in subsection (h), by adding at the end the following:
``(7) LGBTQ-owned business.--The term `LGBTQ-owned
business' means a business--
``(A) more than 50 percent of the ownership or control of
which is held by 1 or more individuals self-identifying as
lesbian, gay, bisexual, transgender, or queer; and
``(B) more than 50 percent of the net profit or loss of
which accrues to 1 or more individuals self-identifying as
lesbian, gay, bisexual, transgender, or queer.''.
(b) Sense of Congress.--It is the sense of the Congress
that the term ``sex'', as used within the Equal Credit
Opportunity Act, includes an individual's sexual orientation
and gender identity, and that this section, in part,
clarifies that the sex, sexual orientation, and gender
identity of the principal owners of a business should be
collected under section 704B of the Equal Credit Opportunity
Act as three separate forms of information.
TITLE III--ACCESS TO HOUSING AND LENDING
Subtitle A--Improving Language Access in Mortgage Servicing
SEC. 311. FINDINGS
The Congress finds the following:
(1) Housing is the largest portion of most household
budgets in the United States and therefore a foundational
component of financial access and opportunity.
(2) Due in part to a legacy of discrimination in the United
States, people of color are disproportionately experiencing
homelessness, are disproportionately renting, and
disproportionately paying unaffordable rents, which acts as a
barrier to homeownership.
(3) Access to fair and affordable housing, both rental and
homeownership opportunities, is critical to upward economic
mobiity. This includes addressing language barriers in
mortgage servicing to ensure borrowers have culturally
sensitive, in-language access to critical lending
information, can enter into fair and sustainable
homeownership, and preserve their home equity.
SEC. 312. LANGUAGE ACCESS REQUIREMENTS AND RESOURCES.
(a) In General.--Chapter 2 of title I of the Truth in
Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting
after section 129H the following:
[[Page H5558]]
``Sec. 129I. Language access requirements.
``(a) Standard Language Preference Form.--Not later than 90
days after the date of the enactment of this section, the
Director of the Bureau of Consumer Financial Protection
shall, after consulting with the Secretary of Agriculture,
the Director of the Federal Housing Finance Agency, the
Secretary of Veterans Affairs, and the Commissioner of the
Federal Housing Authority, issue a rule establishing a
standard language preference form that includes a standard
language preference question asked in each of the 8 languages
most commonly spoken by individuals with limited English
proficiency, as determined by the Director of the Bureau
using information published by the Director of the Bureau of
the Census.
``(b) Requirements for Creditors.--
``(1) Use of standard language preference form by
creditors.--
``(A) Inclusion in application.--Each creditor shall
include, as part of the application package used in
connection with a residential mortgage loan, the standard
language preference form established by the Director of the
Bureau under subsection (a).
``(B) Inclusion of disclosure.--Each creditor may include
with such standard language preference form a disclosure
stating that--
``(i) documents and services may not be available in the
preferred language indicated by the consumer on the standard
language preference form; and
``(ii) the English version of any document to which such
form applies is the official and operative document and the
translated version is for informational purposes only.
``(C) Documentation and transfer of preferred language
information.--If a creditor, receives information about a
language preference of a consumer through the standard
language preference form, from another creditor or a servicer
or a borrower, such creditor shall document this language
preference in each file and electronic file of information
associated with such consumer and shall transfer such
information and the standard language preference form to any
servicer of the loan.
``(2) Provision of translated documents.--If a Federal
agency or a State or local agency in the State or locality in
which the residential property is located has produced a
translation of a document used in association with the
origination of a residential mortgage loan in the preferred
language of a consumer documented by a creditor pursuant to
paragraph (1)(C), such creditor shall--
``(A) provide such translated document in addition to any
English version of such document that is provided to such
consumer who indicated such preferred language; and
``(B) include in the English and translated versions--
``(i) a notice indicating that the English version of such
document is the official and operative document and the
translated version is for informational purposes only;
``(ii) the website established under paragraph (6); and
``(iii) a notice of any available oral interpretation
services described in paragraph (3).
``(3) Oral interpretation services.--
``(A) In general.--If a creditor receives information about
a language preference of a consumer through the standard
language preference form, from another creditor or a servicer
or a borrower, such creditor shall provide oral
interpretation services to such consumer.
``(B) Creditor-provided oral interpretation services.--If a
creditor is required under subparagraph (A) to provide oral
interpretation to a consumer, such creditor--
``(i) shall ensure qualified oral interpretation services,
as defined by the Director of the Bureau, are made available
in the preferred language of the borrower for all oral
communications between the creditor and the borrower; and
``(ii) may provide such services through qualified staff of
the creditor or a third party.
``(4) Notice of available language services.--If a creditor
receives information about a language preference of a
consumer through the standard language preference form from
another creditor or a servicer or a borrower, such creditor
shall not later than 30 business days after receiving such
information and not less than 14 days before any closing,
notify such consumer in writing, in the preferred language of
the consumer, of any language services available, including
the services described in paragraphs (2) and (3).
``(5) Transfer of language preference information.--If a
creditor transfers the servicing associated with a
residential mortgage loan, such creditor shall notify the
transferee servicer at the time of transfer of any known
language preference of the consumer associated with such
residential mortgage loan.
``(6) Information on website.--Each creditor shall publish
on the website of the creditor--
``(A) links to and explanatory information about the
websites maintained by the Secretary of Housing and Urban
Development and the Director of the Bureau of Consumer
Financial Protection that identify housing counselors
approved by the Department of Housing and Urban Development;
and
``(B) a link to and explanatory information about the
language resources website established by the Director of the
Bureau of Consumer Financial Protection, the Secretary of
Housing and Urban Development, the Director of the Federal
Housing Finance Agency, the Secretary of Agriculture, and the
Secretary of Veterans Affairs under section 311(e) of the
Financial Services Racial Equity, Inclusion, and Economic
Justice Act.
``(c) Translation of Mortgage Documents.--With respect to
each document published by the Federal Housing Finance
Agency, the Bureau of Consumer Financial Protection, the
Department of Housing and Urban Development, the Department
of Veterans Affairs, and the Department of Agriculture and
used in association with a residential mortgage loan,
including origination and servicing documents, the Director
of the Bureau of Consumer Financial Protection and the
Director of the Federal Housing Finance Agency shall
jointly--
``(1) not later than 180 days after the date of the
enactment of this section, publish versions of such documents
translated into each of the 8 languages most commonly spoken
by individuals with limited English proficiency, as
determined by the Director of the Bureau of Consumer
Financial Protection using information published by the
Director of the Bureau of the Census; and
``(2) not later than 3 years after the date of the
enactment of this section, publish versions of such documents
translated into at least 4 additional languages spoken by
individuals with limited English proficiency that are
regionally prevalent in the United States, as determined by
the Director of the Bureau of Consumer Financial Protection
using information published by the Director of the Bureau of
the Census.
``(d) Rulemaking.--The Director of the Bureau of Consumer
Financial Protection shall, not later than 1 year after the
date of the enactment of this section, issue regulations to
implement this section that shall take effect not later than
18 months after the date of the enactment of this section.''.
(b) Requirements for Servicers.--Section 6 of the Real
Estate Settlement Procedures Act of 1974 is amended by adding
at the end the following:
``(n) Language Access Requirements.--
``(1) In general.--
``(A) Inclusion in notices.--Each servicer shall include
the standard language preference form established by the
Director of the Bureau under subsection (a) with--
``(i) any notice required under section 1024.39(b) of title
12, Code of Federal Regulations;
``(ii) any notice required under section 5(c);
``(iii) any notice required under section 1024.41(b)(2) of
title 12, Code of Federal Regulations;
``(iv) any notice required under section 1024.41(c)(2)(iii)
of title 12, Code of Federal Regulations; and
``(v) any other additional notice as the Director of the
Bureau of Consumer Financial Protection determines necessary.
``(B) Inclusion of disclosures.--A servicer may include
with the standard language preference form a disclosure
stating that documents and services may not be available in
the preferred language of the borrower indicated by the
consumer on the standard language preference form.
``(C) Documentation and transfer of preferred language
information.--If a servicer receives information about a
language preference of a borrower through the standard
language preference form from another servicer or creditor or
from the borrower, such servicer shall document this language
preference in each file or electronic file of information
associated with such borrower.
``(2) Required language services for servicers.--
``(A) Provision of translated documents.--If a Federal
agency, or a State or local agency in the State or locality
in which the property securing the federally related mortgage
loan is to be located has produced a translation of a
document used in asociation with the servicing of a federally
related mortgage loan in the preferred language of a borrower
as documented by the servicer pursuant to paragraph (1)(C),
the servicer shall--
``(i) provide such translated document in addition to any
English version of such document that is provided to such
borrower; and
``(ii) include a notice on the English and translated
versions, in the preferred language of the borrower,
indicating that the English version is the official and
operative document and the translated version is for
informational purposes only.
``(B) Oral interpretation services.--
``(i) In general.--If a servicer receives information about
a language preference of a borrower through the standard
language preference form, from another creditor or a servicer
or from the borrower, such servicer shall provide oral
interpretation to such borrower.
``(ii) Oral interpretation services.--If a servicer is
required under subparagraph (A) to provide oral
interpretation services to a borrower, such servicer--
(I) shall ensure qualified oral interpretation services, as
defined by the Director of the Bureau, are made available in
the preferred language of the borrower for all oral
communications between the servicer and the borrower; and
(II) may provide such services through qualified staff of
the borrower or a qualified third party.
``(3) Notice of available language services.--If a servicer
receives information about a language preference of a
borrower through the standard language preference form from
another creditor or a servicer or from the borrower, such
servicer shall, not later than 30 business days after
receiving such information and not less than 30 days before
any foreclosure sale of the property secured by the federally
related mortgage loan of the borrower, notify such borrower
in writing, in the preferred language of the borrower, of any
language services available, including the services required
under paragraph (2).
``(4) Transfer of language preference information.--If a
servicer transfers the servicing associated with a federally
related mortgage loan, such servicer shall notify the
transferee
[[Page H5559]]
servicer at the time of the transfer of servicing of any
known language preference of the borrower associated with
such federally related mortgage loan.
``(5) Standard language preference form defined.--The term
`standard language preference form' means the standard
language preference form established by the Director of the
Bureau under section 129I of the Truth in Lending Act.
``(6) Information on website.--Each servicer shall publish
on its website, in a clear and conspicuous manner--
``(A) links to and information about the websites
maintained by the Secretary of Housing and Urban Development
and the Director of the Bureau of Consumer Financial
Protection that identify housing counselors approved by the
Department of Housing and Urban Development; and
``(B) a link to and information about the language
resources website established by the Director of the Bureau
of Consumer Financial Protection, the Secretary of Housing
and Urban Development, the Director of the Federal Housing
Finance Agency, the Secretary of Agriculture, and the
Secretary of Veterans Affairs under section 311(e) of the
Financial Services Racial Equity, Inclusion, and Economic
Justice Act.
``(7) Translation of mortgage documents.--With respect to
each document published by the Federal Housing Finance Agency
and the Bureau of Consumer Financial Protection, and used in
association with a federally related mortgage loan, including
origination and servicing documents, the Director of the
Bureau of Consumer Financial Protection and the Director of
the Federal Housing Finance Agency shall, jointly--
``(A) not later than 180 days after the date of the
enactment of this section, publish versions of such documents
translated into each of the 8 languages most commonly spoken
by individuals with limited English proficiency, as
determined by the Director of the Bureau of Consumer
Financial Protection using information published by the
Director of the Bureau of the Census; and
``(B) not later than 3 years after the date of the
enactment of this section, publish versions of such documents
translated into at least 4 additional languages spoken by
individuals with limited English proficiency that are
regionally prevalent in the United States, as determined by
the Director of the Bureau of Consumer Financial Protection
using information published by the Director of the Bureau of
the Census.''.
``(8) Rulemaking.--The Director of the Bureau of Consumer
Financial Protection shall issue regulations to implement
this subsection. A final rule shall be issued by the Director
not later than 12 months after the date of enactment of this
subsection, and the effective date shall be not later than 18
months after the date of enactment of this subsection.''.
(c) Clerical Amendment.--The table of sections in chapter 2
of the Truth in Lending Act (15 U.S.C. 1631 et seq) is
amended by inserting after the item relating to section 129H
the following:
``129I. Preferred language requirements.''.
(d) Report.--Not later than 1 year after the date of the
enactment of this section, and each year thereafter, the
Director of the Bureau of Consumer Financial Protection, the
Secretary of Housing and Urban Development, the Director of
the Federal Housing Finance Agency, the Secretary of
Agriculture, and the Secretary of Veterans Affairs shall
submit a report to the Congress that contains--
(1) regulatory recommendations to enhance mortgage
origination and servicing processes for persons with a
preferred language that is not English;
(2) a description of any legislative changes needed to
provide authority necessary to implement the regulatory
recommendations; and
(3) a description of any progress on the implementation of
any legislative or regulatory recommendation made in a
previous report.
(e) Language Resource Website.--
(1) In general.--The Director of the Bureau of Consumer
Financial Protection, the Secretary of Housing and Urban
Development, the Director of the Federal Housing Finance
Agency, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall jointly not later than 1 year after
the date of the enactment of this section establish and
maintain a website that provides language resources for
creditors, servicers, and consumers.
(2) Website requirements.--The website developed pursuant
to paragraph (1) shall include--
(A) the translations of documents published pursuant to
section 129I(c) of the Truth in Lending Act and section
6(n)(7) of the Real Estate Settlement Procedures Act of 1974;
(B) a glossary of terms relating to residential mortgage
loans and federally related mortgage loans, provided in each
commonly spoken language;
(C) guidance for creditors and servicers working with
persons who have a preferred language that is not English;
and
(D) examples of notices that may be used by creditors and
servicers to inform persons of available language services,
provided in accordance with section 6(n)(2) of the Real
Estate Settlement Procedures Act of 1974 and section 129I of
the Truth in Lending Act.
(f) Advisory Group.--
(1) In general.--The Director of the Bureau of Consumer
Financial Protection shall establish an advisory group
consisting of stakeholders, including industry groups,
consumer groups, civil rights groups, and groups that have
experience improving language access in housing finance
transactions, to provide advice to the Director about--
(A) issues that arise relating to mortgage origination and
servicing processes for persons with a preferred language
that is not English;
(B) the development of the standard language preference
form by the Director under section 129I(a) of the Truth in
Lending Act; and
(C) updates to the language resource website established by
the Director, the Secretary of Housing and Urban Development,
the Director of the Federal Housing Finance Agency, the
Secretary of Agriculture, and the Secretary of Veterans
Affairs under subsection (e).
(2) Required consulting.--The Director of the Bureau of
Consumer Financial Protection shall consult with the advisory
group established pursuant to paragraph (1) with respect to
any issues that arise relating to mortgage origination and
servicing processes for persons with a preferred language
that is not English.
(g) Housing Counseling Agency Language Resources.--
(1) Enhanced search capabilities.--Not later than 1 year
after the date of the enactment of this section--
(A) the Secretary shall update the website maintained by
the Secretary that identifies housing counselors approved by
the Department of Housing and Urban Development, to allow for
searching for housing counseling agencies based on provided
language services; and
(B) the Director shall update the website maintained by the
Director that identifies housing counselors approved by the
Secretary to allow for searching for housing counseling
agencies based on provided language services.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of Housing and Urban
Development, such sums as are necessary to support language
training for housing counselors, housing counseling agencies,
and staff that are approved by the Secretary.
(h) Definitions.--In this section:
(1) Creditor.--The term ``creditor'' has the meaning given
the term in section 103 of the Truth in Lending Act and shall
include any assignee of a creditor.
(2) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(4) Servicer.--The term ``servicer'' has the meaning given
the term in section 6(i) of the Real Estate Settlement
Procedures Act of 1974.
(5) Residential mortgage loan.--The term ``residential
mortgage loan'' has the meaning given the term in section 103
of the Truth in Lending Act.
(6) Federally related mortgage loan.--The term ``federally
related mortgage loan'' has the meaning given the term in
section 3 of the Real Estate Settlement Procedures Act of
1974.
Subtitle B--Fair Lending for All
SEC. 321. OFFICE OF FAIR LENDING TESTING.
(a) Establishment.--There is established within the Bureau
of Consumer Financial Protection an Office of Fair Lending
Testing (hereinafter referred to as the ``Office'').
(b) Director.--The head of the Office shall be a Director,
who shall--
(1) be appointed to a 5-year term by, and report to, the
Director of the Bureau of Consumer Financial Protection;
(2) appoint and fix the compensation of such employees as
are necessary to carry out the duties of the Office under
this section; and
(3) provide an estimated annual budget to the Director of
the Bureau of Consumer Financial Protection.
(c) Civil Service Position.--The position of the Director
shall be a career position within the civil service.
(d) Testing.--
(1) In general.--The Office, in consultation with the
Attorney General and the Secretary of Housing and Urban
Development, shall conduct testing of compliance with the
Equal Credit Opportunity Act by creditors, through the use of
individuals who, without any bona fide intent to receive a
loan, pose as prospective borrowers for the purpose of
gathering information.
(2) Referral of violations.--If, in carrying out the
testing described under paragraph (1), the Office believes a
person has violated the Equal Credit Opportunity Act, the
Office shall refer such violation in writing to the Attorney
General for appropriate action.
(e) Report to Congress.--Section 707 of the Equal Credit
Opportunity Act (15 U.S.C. 1691f) is amended by adding at the
end the following: ``In addition, each report of the Bureau
shall include an analysis of the testing carried out pursuant
to section 321 of the Financial Services Racial Equity,
Inclusion, and Economic Justice Act, and each report of the
Bureau and the Attorney General shall include a summary of
criminal enforcement actions taken under section 706A.''.
SEC. 322. PROHIBITION ON CREDIT DISCRIMINATION.
(a) In General.--Subsection (a) of section 701 of the Equal
Credit Opportunity Act (15 U.S.C. 1691) is amended to read as
follows:
``(a) It shall be unlawful to discriminate against any
person, with respect to any aspect of a credit transaction--
``(1) on the basis of race, color, religion, national
origin, sex (including sexual orientation and gender
identity), marital status, or age (provided the applicant has
the capacity to contract);
``(2) on the basis of the person's zip code, or census
tract;
``(3) because all or part of the person's income derives
from any public assistance program; or
``(4) because the person has in good faith exercised any
right under the Consumer Credit Protection Act.''.
(b) Removal of Certain References to Creditors and
Applicants and Definition
[[Page H5560]]
Added.--The Equal Credit Opportunity Act (15 U.S.C. 1691 et
seq.) is amended--
(1) in section 701(b)--
(A) by striking ``applicant'' each place such term appears
and inserting ``person''; and
(B) in paragraph (2), by striking ``applicant's'' each
place such term appears and inserting ``person's'';
(2) in section 702--
(A) by redesignating subsection (g) as subsection (h); and
(B) by inserting after subsection (f) the following:
``(g) The term `aggrieved person' includes any person who--
``(1) claims to have been injured by a discriminatory
credit practice; or
``(2) believes that such person will be injured by a
discriminatory credit practice.'';
(3) in section 704A--
(A) in subsection (b)(1), by striking ``applicant'' each
place such term appears and inserting ``aggrieved person'';
and
(B) in subsection (c), by striking ``applicant'' and
inserting ``aggrieved person'';
(4) in section 705--
(A) by striking ``the applicant'' each place such term
appears and inserting ``persons''; and
(B) in subsection (a)--
(i) by striking ``a creditor to take'' and inserting
``taking''; and
(ii) by striking ``applicant'' and inserting ``person'';
and
(5) in section 706--
(A) by striking ``creditor'' each place such term appears
and inserting ``person'';
(B) by striking ``creditor's'' each place such term appears
and inserting ``person's'';
(C) by striking ``creditors'' each place such term appears
and inserting ``persons''; and
(D) in subsection (f), by striking ``applicant'' and
inserting ``aggrieved person''.
SEC. 323. CRIMINAL PENALTIES FOR VIOLATIONS OF THE EQUAL
CREDIT OPPORTUNITY ACT.
(a) In General.--The Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.) is amended by inserting after section
706 the following:
``Sec. 706A. Criminal penalties
``(a) Individual Violations.--Any person who knowingly and
willfully violates this title shall be fined not more than
$50,000, or imprisoned not more than 1 year, or both.
``(b) Pattern or Practice.--
``(1) In general.--Any person who engages in a pattern or
practice of knowingly and willfully violating this title
shall be fined not more than $100,000 for each violation of
this title, or imprisoned not more than twenty years, or
both.
``(2) Personal liability of executive officers and
directors of the board.--Any executive officer or director of
the board of an entity who knowingly and willfully causes the
entity to engage in a pattern or practice of knowingly and
willfully violating this title (or who directs another agent,
senior officer, or director of the entity to commit such a
violation or engage in such acts that result in the director
or officer being personally unjustly enriched) shall be--
``(A) fined in an amount not to exceed 100 percent of the
compensation (including stock options awarded as
compensation) received by such officer or director from the
entity--
``(i) during the time period in which the violations
occurred; or
``(ii) in the one to three year time period preceding the
date on which the violations were discovered; and
``(B) imprisoned for not more than 5 years.''.
(b) Clerical Amendment.--The table of contents for the
Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.) is
amended by inserting after the item relating to section 706
the following:
``706A. Criminal penalties.''.
SEC. 324. REVIEW OF LOAN APPLICATIONS.
(a) In General.--Subtitle C of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5531 et seq.) is amended by
adding at the end the following:
``SEC. 1038. REVIEW OF LOAN APPLICATIONS.
``(a) In General.--The Bureau shall carry out reviews of
loan applications and the process of taking loan applications
being used by covered persons to ensure such applications and
processes do not violate the Equal Credit Opportunity Act or
any other Federal consumer financial law.
``(b) Prohibition and Enforcement.--If the Bureau
determines under subsection (a) that any loan application or
process of taking a loan application violates the Equal
Credit Opportunity Act or any other Federal consumer
financial law, the Bureau shall--
``(1) prohibit the covered person from using such
application or process; and
``(2) take such enforcement or other actions with respect
to the covered person as the Bureau determines
appropriate.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Dodd-Frank Wall Street Reform and Consumer Protection
Act is amended by inserting after the item relating to
section 1037 the following:
``Sec. 1038. Review of loan applications.''.
SEC. 325. MORTGAGE DATA COLLECTION.
(a) In General.--Section 304(b)(4) of the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2803(b)(4)) is amended by
striking ``census tract, income level, racial
characteristics, age, and gender'' and inserting ``the
applicant or borrower's zip code, census tract, income level,
race, color, religion, national origin, sex, marital status,
sexual orientation, gender identity, and age''.
(b) Protection of Privacy Interests.--Section 304(h)(3)(A)
of the Home Mortgage Disclosure Act of 1975 (12 U.S.C.
2803(h)(3)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) by redesignating clause (ii) as clause (iii); and
(3) by inserting after clause (i) the following:
``(ii) zip code, census tract, and any other category of
data described in subsection (b)(4), as the Bureau determines
to be necessary to satisfy the purpose described in paragraph
(1)(E), and in a manner consistent with that purpose; and''.
Subtitle C--Promoting and Advancing Communities of Color Through
Inclusive Lending
SEC. 331. STRENGTHENING DIVERSE AND MISSION-DRIVEN COMMUNITY
FINANCIAL INSTITUTIONS.
(a) Minority Lending Institution Set-aside in Providing
Assistance.--
(1) In general.--Section 108 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4707) is amended by adding at the end the following:
``(i) Supporting Minority Institutions.--Notwithstanding
any other provision of law, in providing any assistance to
community development financial institutions, the Fund shall
reserve 40 percent of such assistance for minority lending
institutions.''.
(2) Definitions.--Section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4702) is amended by adding at the end the following:
``(22) Minority lending institution.--The term `minority
lending institution' has the meaning given that term under
section 523(c) of division N of the Consolidated
Appropriations Act, 2021.''.
(b) Office of Minority Lending Institutions.--Section 104
of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4703) is amended by adding
at the end the following:
``(l) CDFI Office of Minority Lending Institutions.--There
is established within the Fund an Office of Minority Lending
Institutions, which shall oversee assistance provided by the
Fund to minority lending institutions.''.
(c) Reporting on Minority Lending Institutions.--Section
117 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4716) is amended by adding
at the end the following:
``(g) Reporting on Minority Lending Institutions.--Each
report required under subsection (a) shall include a
description of the extent to which assistance from the Fund
are provided to minority lending institutions.''.
(d) Submission of Demographic Data Relating to Diversity by
Community Development Financial Institutions.--Section 104 of
the Riegle Community Development and Regulatory Improvement
Act of 1994 (12 U.S.C. 4703), as amended by subsection (b),
is further amended by adding at the end the following:
``(m) Submission of Demographic Data Relating to
Diversity.--
``(1) Definitions.--In this subsection--
``(A) the term `executive officer' has the meaning given
the term in section 230.501(f) of title 17, Code of Federal
Regulations, as in effect on the date of enactment of this
subsection;
``(B) the term `gender identity' means the gender-related
identity, appearance, mannerisms, or other gender-related
characteristics of an individual, regardless of the
individual's designated sex at birth;
``(C) the term `sexual orientation' means homosexuality,
heterosexuality, or bisexuality; and''.
``(B) the term `veteran' has the meaning given the term in
section 101 of title 38, United States Code.
``(2) Submission of disclosure.--Each Fund applicant and
recipient shall provide data regarding such factors as may be
determined by the Fund, which may include:
``(A) Demographic data, based on voluntary self-
identification, on the racial, ethnic, gender identity, and
sexual orientation position of--
``(i) the board of directors of the institution; and
``(ii) the executive officers of the institution.
``(B) The status of any member of the board of directors of
the institution, any nominee for the board of directors of
the institution, or any executive officer of the institution,
based on voluntary self-identification, as a veteran.
``(C) Whether the board of directors of the institution, or
any committee of that board of directors, has, as of the date
on which the institution makes a disclosure under this
paragraph, adopted any policy, plan, or strategy to promote
racial, ethnic, and gender diversity among--
``(i) the board of directors of the institution;
``(ii) nominees for the board of directors of the
institution; or
``(iii) the executive officers of the institution.
``(3) Report to congress.--Not later than 24 months after
the date of enactment of this subsection, and every other
year thereafter, the Fund shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives, and make publicly available on the website
of the Fund, a report--
``(A) on the demographic data and trends of the diversity
information made available pursuant to paragraph (2); and
``(B) containing any administrative or legislative
recommendations of the Fund to enhance the implementation of
this title or to promote diversity and inclusion within
community development financial institutions.''.
(e) Office of Diverse and Mission-Driven Community
Financial Institutions.--
(1) Establishment.--There is established within the
Department of the Treasury the Office of Diverse and Mission-
Driven Community Financial Institutions.
(2) Leadership.--The Office of Diverse and Mission-Driven
Community Financial Institutions shall be led by a Deputy
Assistant Secretary for Diverse and Mission-Driven Community
Financial Institutions, who shall be appointed by the
Secretary of the Treasury, in
[[Page H5561]]
consultation with the Department of the Treasury's Director
of Office of Minority and Women Inclusion.
(3) Functions.--The Office of Diverse and Mission-Driven
Community Financial Institutions, pursuant to the direction
of the Secretary, shall seek to provide support for diverse
and mission-driven community financial institutions and have
the authority--
(A) to monitor and issue reports regarding--
(i) community development financial institutions, minority
depository institutions, and minority lending institutions;
and
(ii) the role such institutions play in the financial
system of the United States, including the impact they have
on providing financial access to low- and moderate-income
communities, communities of color, and other underserved
communities;
(B) to serve as a resource and Federal liaison for current
and prospective community development financial institutions,
minority depository institutions, and minority lending
institutions seeking to engage with the Department of the
Treasury, the Community Development Financial Institutions
Fund (``CDFI Fund''), other Federal government agencies,
including by providing contact information for other offices
of the Department of the Treasury or other Federal Government
agencies, resources, technical assistance, or other support
for entities wishing--
(i) to become certified as a community development
financial institution, and maintain the certification;
(ii) to obtain a banking charter, deposit insurance, or
otherwise carry on banking activities in a safe, sound, and
responsible manner;
(iii) to obtain financial support through private sector
deposits, investments, partnerships, and other means;
(iv) to expand their operations through internal growth and
acquisitions;
(v) to develop and upgrade their technology, cybersecurity
resilience, compliance systems, data reporting systems, and
their capacity to support their communities, including
through partnerships with third-party companies;
(vi) to obtain grants, awards, investments and other
financial support made available through the CDFI Fund, the
Board of Governors of the Federal Reserve System, the Central
Liquidity Facility, the Federal Home Loan Banks, and other
Federal programs;
(vii) to participate as a financial intermediary with
respect to various Federal and State programs and agencies,
including the State Small Business Credit Initiative and
programs of the Small Business Administration; and
(viii) to participate in Financial Agent Mentor-Protege
Program of the Department of the Treasury and other Federal
programs designed to support private sector partnerships;
(C) to provide resources to the public wishing to learn
more about minority depository institutions, community
development financial institutions, and minority lending
institutions, including helping the Secretary implement the
requirements under section 334, publishing reports issued by
the Office on the website of the Department of the Treasury
and providing hyperlinks to other relevant reports and
materials from other Federal agencies;
(D) to provide policy recommendations to other relevant
Federal agencies and Congress on ways to further strengthen
Federal support for community development financial
institutions, minority depository institutions, and minority
lending institutions;
(E) to assist the Secretary in carrying out the Secretary's
responsibilities under section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 1463 note) to preserve and promote minority
depository institutions in consultation with the Chairman of
the Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the Chairman of the National
Credit Union Administration, and the Chairperson of the Board
of Directors of the Federal Deposit Insurance Corporation;
(F) to carry out other duties of the Secretary of the
Treasury required by this Act and the amendments made by this
Act, and to perform such other duties and authorities as may
be assigned by the Secretary.
(f) Strengthening Federal Efforts and Interagency
Coordination to Promote Diverse and Mission-driven Community
Financial Institutions.--
(1) Senior officials designated.--The Chairman of the Board
of Governors of the Federal Reserve System, the Comptroller
of the Currency, the Chairman of the National Credit Union
Administration, the Chairperson of the Board of Directors of
the Federal Deposit Insurance Corporation, and the Director
of the Bureau of Consumer Financial Protection shall each, in
consultation with their respective Director of Office of
Minority and Women Inclusion, designate a senior official to
be their respective agency's officer responsible for
promoting minority depository institutions, community
development financial institutions, and minority lending
institutions, including to fulfill obligations under section
308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note) to preserve and
promote minority depository institutions.
(2) Interagency working group.--The Department of the
Treasury shall regularly convene meetings, no less than once
a quarter, of an interagency working group to be known as the
``Interagency Working Group to Promote Diverse and Mission-
Driven Community Financial Institutions'', which shall
consist of the senior officials designated by their
respective agencies under paragraph (1), along with the
Deputy Assistant Secretary for Diverse and Mission-Driven
Community Finanical Institutions, the Director of the
Community Development Financial Institutions Fund, and such
other government officials as the Secretary of the Treasury
may choose to invite, to examine and discuss the state of
minority depository institutions, community development
financial institutions, and minority lending institutions,
and actions the relevant agencies can take to preserve,
promote, and strengthen these institutions.
(3) Annual report to congress.--Not later than 1 year after
the date of the enactment of this subsection, and annually
thereafter, the Secretary of the Treasury, the Chairman of
the Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the Chairman of the National
Credit Union Administration, the Chairperson of the Board of
Directors of the Federal Deposit Insurance Corporation, and
the Director of the Bureau of Consumer Financial Protection
shall submit a joint report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate regarding
the work that has been done the prior year to preserve,
promote, and strengthen community development financial
institutions, minority depository institutions, and minority
lending institutions, along with any policy recommendations
on actions various government agencies and Congress should
take to preserve, promote, and strengthen community
development financial institutions, minority depository
institutions, and minority lending institutions.
SEC. 332. CAPITAL INVESTMENTS, GRANTS, AND TECHNOLOGY SUPPORT
FOR MDIS AND CDFIS.
(a) Authorization of Appropriation.--There is authorized to
be appropriated to the Emergency Capital Investment Fund
$4,000,000,000. Such funds may be used for administrative
expenses of the Department of the Treasury.
(b) Conforming Amendments to Allow for Additional Purchases
of Capital.--Section 104A of the Riegle Community Development
and Regulatory Improvement Act of 1994 (12 U.S.C. 4703a) is
amended--
(1) in subsection (c), by striking paragraph (2); and
(2) in subsection (e), by striking paragraph (2).
(c) Use of Funds for CDFI Financial and Technical
Assistance.--Section 104A of the Riegle Community Development
and Regulatory Improvement Act of 1994 (12 U.S.C. 4703a) is
amended by adding at the end the following:
``(p) Use of Funds for CDFI Financial and Technical
Assistance.--The Secretary shall transfer no less than
$1,000,000,000 in the Emergency Capital Investment Fund to
the Fund for the purpose of providing financial and technical
assistance grants to community development financial
institutions certified by the Secretary. The Fund shall
provide such grants using a formula that takes into account
criteria such as certification status, financial and
compliance performance, portfolio and balance sheet strength,
diversity of CDFI business model types, and program
capacity.''.
(d) Technology Grants for MDIs and CDFIs.--
(1) Study and report on certain technology challenges.--
(A) Study.--The Secretary of the Treasury shall carry out a
study on the technology challenges impacting minority
depository institutions and community development financial
institutions with respect to--
(i) internal technology capabilities and capacity of the
institutions to process loan applications and otherwise serve
current and potential customers through the internet, mobile
phone applications, and other tools;
(ii) technology capabilities and capacity of the
institutions, provided in partnership with third party
companies, to process loan applications and otherwise serve
current and potential customers through the internet, mobile
phone applications, and other tools;
(iii) cybersecurity; and
(iv) challenges and solutions related to algorithmic bias
in the deployment of technology.
(B) Report.--Not later than 18 months after the date of the
enactment of this subsection, the Secretary shall submit a
report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate that includes the results of the
study required under subparagraph (A).
(2) Technology grant program.--
(A) Program authorized.--The Secretary shall carry out a
technology grant program to make grants to minority
depository institutions and community development financial
institutions to address technology challenges impacting such
institutions.
(B) Application.--To be eligible to be awarded a grant
under this paragraph, a minority depository institution or
community development financial institution shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
(C) Use of funds.--A minority depository institution or
community development financial institution that is awarded a
grant under this paragraph may use the grant funds to--
(i) enhance or adopt technologies that--
(I) shorten loan approval processes;
(II) improve customer experience;
(III) provide additional services to customers;
(IV) facilitate compliance with applicable laws,
regulations, and program requirements, including testing to
ensure that the use of technology does not result in
discrimination, and helping to satisfy data reporting
requirements; and
(V) help ensure privacy of customer records and
cybersecurity resilience; or
(ii) carry out such other activities as the Secretary
determines appropriate.
(3) Funding.--The Secretary may use amounts in the
Emergency Capital Investment Fund to implement and make
grants under paragraph
[[Page H5562]]
(2), but not to exceed $250,000,000 in the aggregate.''.
(4) Definitions.--In this subsection, the terms ``community
development financial institution'' and ``minority depository
institution'' have the meaning given those terms,
respectively, under section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4702).
(e) Pilot Program for Establishing De Novo CDFIs and
MDIs.--
(1) In general.--The Secretary of the Treasury, in
consultation with the Fund and the appropriate Federal
banking agencies, shall establish a pilot program to provide
competitive grants to a person for the purpose of providing
capital for such person to establish a minority depository
institution or a community development financial institution.
(2) Application.--A person desiring a grant under this
subsection shall submit to the Secretary an application in
such form and containing such information as the Secretary
determines appropriate.
(3) Disbursement.--Before disbursing grant amounts to a
person selected to receive a grant under this subsection, the
Secretary shall ensure that such person has received approval
from the appropriate Federal banking agency (or such other
Federal or State agency from whom approval is required) to
establish a minority depository institution or a community
development financial institution, as applicable.
(4) Funding.--The Secretary may use amounts in the
Emergency Capital Investment Fund to implement and make
grants under paragraph (2), but not to exceed $100,000,000 in
the aggregate.''.
(5) Definitions.--In this subsection, the terms
``appropriate Federal banking agency'', ``community
development financial institution'', ``Fund'', and ``minority
depository institution'' have the meaning given those terms,
respectively, under section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4702).
(f) Guidance for Subchapter S and Mutual Banks.--Not later
than 30 days after the date of enactment of this Act, the
Board of Governors of the Federal Reserve System and the
Secretary shall issue guidance regarding how Emergency
Capital Investment Program investments (whether made before
or after the date of enactment of this Act) are considered
for purposes of various prudential requirements, including
debt to equity, leverage ratio, and double leverage ratio
requirements with respect to subchapter S and mutual bank
recipients of such investments.
(g) Collection of Data.--Section 111 of the Riegle
Community Development and Regulatory Improvement Act of 1994
(12 U.S.C. 4710) is amended--
(1) by striking ``The Fund'' and inserting the following:
``(a) In General.--The Fund''; and
(2) by adding at the end the following:
``(b) Collection of Certain Data by CDFIs.--Notwithstanding
the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.)--
``(1) a community development financial institution may
collect data described in section 701(a)(1) of that Act (15
U.S.C. 1691(a)(1)) from borrowers and applicants for credit
for the sole purpose and exclusive use to ensure that
targeted populations and low-income residents of investment
areas are adequately served and to report the level of
service provided to such populations and areas to the Fund;
and
``(2) a community development financial institution that
collects the data described in paragraph (1) shall not be
subject to adverse action related to that collection by the
Bureau of Consumer Financial Protection or any other Federal
agency.''.
SEC. 333. SUPPORTING YOUNG ENTREPRENEURS PROGRAM.
Section 108 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4707), as
amended by section 331(a)(1), is further amended by adding at
the end the following:
``(j) Supporting Young Entrepreneurs Program.--
``(1) In general.--The Fund shall establish a Supporting
Young Entrepreneurs Program under which the Fund may provide
financial awards to the community development financial
institutions that the Fund determines have the best programs
to help young entrepreneurs get the start up capital needed
to start a small business.
``(2) No matching requirement.--The matching requirement
under subsection (e) shall not apply to awards made under
this subsection.
``(3) Funding.--In carrying out this subsection, the Fund
may use--
``(A) amounts in the Emergency Capital Investment Fund, but
not to exceed $100,000,000 in the aggregate; and
``(B) such other funds as may be appropriated by Congress
to the Fund to carry out the Supporting Young Entrepreneurs
Program.''.
SEC. 334. MAP OF MINORITY DEPOSITORY INSTITUTIONS AND
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS.
(a) In General.--The Secretary of the Treasury, in
consultation with the CDFI Fund and the Federal banking
agencies, shall establish an interactive, searchable map
showing the geographic locations of the headquarters and
branch locations of minority depository institutions, which
shall be provided by the Federal banking agencies, and
community development financial institutions that have been
certified by the Secretary. Such map shall also provide a
link to the website of each such minority depository
institution and community development financial institution.
(b) Definitions.--In this section:
(1) CDFI fund.--The term ``CDFI Fund'' means the Community
Development Financial Institutions Fund established under
section 104(a) of the Riegle Community Development and
Regulatory Improvement Act of 1994.
(2) Community development financial institution.--The term
``community development financial institution'' has the
meaning given in section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994.
(3) Federal banking agency.--The term ``Federal banking
agency''--
(A) has the meaning given in section 3 of the Federal
Deposit Insurance Act; and
(B) means the National Credit Union Administration.
(4) Minority depository institution.--The term ``minority
depository institution'' has the meaning given in section
308(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
SEC. 335. REPORT ON CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTIONS.
Section 117(a) of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4716(a)) is
amended--
(1) by striking ``The Fund'' and inserting the following:
``(1) In general.--The Fund'';
(2) by striking ``and the Congress'' and inserting ``, the
Congress, and the public''; and
(3) by adding at the end the following:
``(2) Report on certified community development financial
institutions.--The annual report required under paragraph (1)
shall include a report on community development financial
institutions (`CDFIs') that have been certified by the
Secretary of the Treasury, including a summary with aggregate
data and analysis, to the fullest extent practicable,
regarding--
``(A) a list of the types of organizations that are
certified as CDFIs, and the number of each type of
organization;
``(B) the geographic location and capacity of different
types of certified CDFIs;
``(C) the lines of business for different types of
certified CDFIs;
``(D) human resources and staffing information for
different types of certified CDFIs, including--
``(E) the types of development services provided by
different types of certified CDFIs;
``(F) the target markets of different types of certified
CDFIs and the amount of products and services offered by
CDFIs to those target markets, including--
``(i) the number and amount of loans and loan guarantees
made in those target markets;
``(ii) the number and amount of other investments made in
those target markets; and
``(iii) the number and amount of development services
offered in those target markets; and
``(G) such other information as the Director of the Fund
may determine necessary to promote transparency of the impact
of different types of CDFIs, while carrying out this report
in a manner that seeks to minimize data reporting
requirements from certified CDFIs when feasible, including
utilizing information gathered from other regulators under
section 104(l).''.
SEC. 336. CONSULTATION AND MINIMIZATION OF DATA REQUESTS.
Section 104 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4703) is
amended by adding at the end the following:
``(l) Consultation and Minimization of Data Requests.--
``(1) In general.--In carrying out its duties, the Fund
shall--
``(A) periodically, and no less frequent than once a year,
consult with the applicable Federal regulator of certified
CDFIs and applicants to be a certified CDFI (`applicants)';
``(B) seek to gather any information necessary related to
Fund certification and award decisions on certified CDFIs and
applicants from the applicable Federal regulator, and such
regulators shall use reasonable efforts to provide such
information to the Fund, to minimize duplicative data
collection requests made by the Fund of certified CDFIs and
applicants and to expedite certification, award, or other
relevant processes administered by the Fund.
``(2) Applicable federal regulator defined.--In this
subsection, the term `applicable Federal regulator' means--
``(A) with respect to a certified CDFI or an applicant that
is regulated by both an appropriate Federal banking agency
and the Bureau of Consumer Financial Protection, the Bureau
of Consumer Financial Protection;
``(B) with respect to a certified CDFI or an applicant that
is not regulated by the Bureau of Consumer Financial
Protection, the appropriate Federal banking agency for such
applicant; or
``(C) the Bureau of Consumer Financial Protection, with
respect to a certified CDFI or an applicant--
``(i) that is not regulated by an appropriate Federal
banking agency; and
``(ii) that offers or provides consumer financial products
or services (as defined in section 1002 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5481).''.
SEC. 337. ACCESS TO THE DISCOUNT WINDOW OF THE FEDERAL
RESERVE SYSTEM FOR MDIS AND CDFIS.
Within 1 year after the date of enactment of this Act, the
Board of Governors of the Federal Reserve System shall
establish a process under which minority depository
institutions and community development financial institutions
may have access to the discount window, at the seasonal
credit interest rate most recently published on the Federal
Reserve Statistical Release on selected interest rates (daily
or weekly).
SEC. 338. STUDY ON SECURITIZATION BY CDFIS.
(a) In General.--The Secretary of the Treasury, in
consultation with the Community Development Financial
Institutions Fund and such other Federal agencies as the
Secretary determines appropriate, shall carry out a study
on--
[[Page H5563]]
(1) the use of securitization by CDFIs;
(2) any barriers to the use of securitization as a source
of liquidity by CDFIs; and
(3) any authorities available to the Government to support
the use of securitization by CDFIs to the extent it helps
serve underserved communities.
(b) Report.--Not later than the end of the 1-year period
beginning on the date of enactment of this Act, the Secretary
shall issue a report to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate containing--
(1) all findings and determinations made in carrying out
the study required under subsection (a); and
(2) any legislative or administrative recommendations of
the Secretary that would promote the responsible use of
securitization to help CDFIs in reaching more underserved
communities.
(c) CDFI Defined.--The term ``CDFI'' has the meaning given
the term ``community development financial institution''
under section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994.
TITLE IV--DIVERSITY IN FINANCIAL INSTITUTIONS AND CORPORATIONS
Subtitle A--Promoting New and Diverse Depository Institutions
SEC. 411. STUDY AND STRATEGIC PLAN.
(a) In General.--The Federal banking regulators shall
jointly--
(1) conduct a study about the challenges faced by proposed
depository institutions, including proposed minority
depository institutions, seeking de novo depository
institution charters; and
(2) submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate and publish
publically, not later than 18 months after the date of the
enactment of this section--
(A) an analysis based on the study conducted pursuant to
paragraph (1);
(B) any findings from the study conducted pursuant to
paragraph (1); and
(C) any legislative recommendations that the Federal
banking regulators developed based on the study conducted
pursuant to paragraph (1).
(b) Strategic Plan.--
(1) In general.--Not later than 18 months after the date of
the enactment of this section, the Federal banking regulators
shall jointly submit to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate and publish
publically a strategic plan based on the study conducted
pursuant to subsection (a) and designed to help proposed
depository institutions (including proposed minority
depository institutions) successfully apply for de novo
depository institution charters in a manner that promotes
increased availability of banking and financial services,
safety and soundness, consumer protection, community
reinvestment, financial stability, and a level playing field.
(2) Contents of strategic plan.--The strategic plan
described in paragraph (1) shall--
(A) promote the chartering of de novo depository
institutions, including--
(i) proposed minority depository institutions; and
(ii) proposed depository institutions that could be
certified as community development financial institutions;
and
(B) describe actions the Federal banking regulators may
take that would increase the number of depository
institutions located in geographic areas where consumers lack
access to a branch of a depository institution.
(c) Public Involvement.--When conducting the study and
developing the strategic plan required by this section, the
Federal banking regulators shall invite comments and other
feedback from the public to inform the study and strategic
plan.
(d) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given in section 3 of the
Federal Deposit Insurance Act, and includes a ``Federal
credit union'' and a ``State credit union'' as such terms are
defined, respectively, under section 101 of the Federal
Credit Union Act.
(2) Community development financial institution.--The term
``community development financial institution'' has the
meaning given in section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994.
(3) Federal banking regulators.--The term ``Federal banking
regulators'' means the Board of Governors of the Federal
Reserve System, the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the National Credit Union
Administration, and the Director of the Bureau of Consumer
Financial Protection.
(4) Minority depository institution.--The term ``minority
depository institution'' has the meaning given in section
308(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
Subtitle B--Promoting Diversity and Inclusion in Banking
SEC. 421. DIVERSITY AND INCLUSION RATINGS.
(a) In General.--The Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended
by inserting after section 342 the following:
``SEC. 342A. DIVERSITY AND INCLUSION RATINGS.
``(a) In General.--The Board of Governors, the Comptroller
of the Currency, the Corporation, and the National Credit
Union Administration Board, in assigning a rating to a
depository institution under the Uniform Financial
Institutions Rating System (or an equivalent rating by any
such agency under a comparable rating system) shall include a
diversity and inclusion component that examines--
``(1) whether the depository institution has effective
policies in place to encourage diversity and inclusion in the
hiring practices of the institution;
``(2) whether the depository institution provides training
to the employees of the institution, that is appropriate to
the size and resources of the institution, on diversity and
inclusion;
``(3) whether the depository institution has policies in
place that ensure that employees are able to report workplace
discrimination without fear of wrongful retaliation, threats,
or coercion; and
``(4)(A) with respect to a depository institution with
total consolidated assets of $1,000,000,000 or less, whether
such depository institution has designated an individual to
serve as a Diversity and Inclusion Officer who reports to the
Chief Executive Officer of the institution on all diversity
and inclusion matters; or
``(B) with respect to a depository institution with total
consolidated assets of more than $1,000,000,000, whether such
depository institution--
``(i) has designated an individual to serve as a Diversity
and Inclusion Officer; and
``(ii) has established a committee for diversity and
inclusion that holds meetings quarterly and that includes in
its membership the Diversity and Inclusion Officer designated
under clause (i) and the Chief Executive Officer of the
institution.
``(b) Application to Minority Depository Institutions.--In
carrying out subsection (a) with respect to minority
depository institutions, the Board of Governors, the
Comptroller of the Currency, the Corporation, and the
National Credit Union Administration Board shall--
``(1) assign such institutions the most favorable rating
with respect to the diversity and inclusion component
described under subsection (a); and
``(2) exempt such institutions from any examination
procedures related to the diversity and inclusion component
described under subsection (a).
``(c) Definitions.--In this section:
``(1) Depository institution.--The term `depository
institution' means a depository institution or a credit
union.
``(2) Minority depository institution.--The term `minority
depository institution' means an entity that is--
``(A) a minority depository institution, as defined in
section 308 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463 note); or
``(B) considered to be a minority depository institution
by--
``(i) the appropriate Federal banking agency; or
``(B) the term `gender identity' means the gender-related
identity, appearance, mannerisms, or other gender-related
characteristics of an individual, regardless of the
individual's designated sex at birth;
``(C) the term `sexual orientation' means homosexuality,
heterosexuality, or bisexuality; and
``(ii) the National Credit Union Administration, in the
case of an insured credit union.''.
(b) Clerical Amendment.--The table of contents for the
Dodd-Frank Wall Street Reform and Consumer Protection Act is
amended by inserting after the item relating to section 342
the following:
``Sec. 342A. Diversity and inclusion ratings.''.
Subtitle C--Improving Corporate Governance Through Diversity
SEC. 431. SUBMISSION OF DATA RELATING TO DIVERSITY BY
ISSUERS.
Section 13 of the Securities Exchange Act of 1934 (15
U.S.C. 78m) is amended by adding at the end the following:
``(s) Submission of Data Relating to Diversity.--
``(1) Definitions.--In this subsection--
``(A) the term `executive officer' has the meaning given
the term in section 230.501(f) of title 17, Code of Federal
Regulations, as in effect on the date of enactment of this
subsection; and
``(B) the term `veteran' has the meaning given the term in
section 101 of title 38, United States Code.
``(2) Submission of disclosure.--Each issuer required to
file an annual report under subsection (a) shall disclose in
any proxy statement and any information statement relating to
the election of directors filed with the Commission the
following:
``(A) Data, based on voluntary self-identification, on the
racial, ethnic, gender identity, and sexual orientation
composition of--
``(i) the board of directors of the issuer;
``(ii) nominees for the board of directors of the issuer;
and
``(iii) the executive officers of the issuer.
``(B) The status of any member of the board of directors of
the issuer, any nominee for the board of directors of the
issuer, or any executive officer of the issuer, based on
voluntary self-identification, as a veteran.
``(C) Whether the board of directors of the issuer, or any
committee of that board of directors, has, as of the date on
which the issuer makes a disclosure under this paragraph,
adopted any policy, plan, or strategy to promote racial,
ethnic, and gender diversity among--
``(i) the board of directors of the issuer;
``(ii) nominees for the board of directors of the issuer;
or
``(iii) the executive officers of the issuer.
``(3) Alternative submission.--In any 1-year period in
which an issuer required to file an annual report under
subsection (a) does not file with the Commission a proxy
statement or an information statement relating to the
election of directors, the issuer shall disclose the
information required under paragraph (2) in the first annual
report of issuer that the issuer submits to the Commission
after the end of that 1-year period.
[[Page H5564]]
``(4) Annual report.--Not later than 18 months after the
date of enactment of this subsection, and annually
thereafter, the Commission shall submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate, and publish on the website of the Commission, a
report that analyzes the information disclosed under
paragraphs (2) and (3) and identifies any trends with respect
to such information.
``(5) Best practices.--
``(A) In general.--The Director of the Office of Minority
and Women Inclusion of the Commission shall, not later than 3
years after the date of enactment of this subsection, and
every 3 years thereafter, publish best practices for
compliance with this subsection.
``(B) Comments.--The Director of the Office of Minority and
Women Inclusion of the Commission may, pursuant to subchapter
II of chapter 5 of title 5, United States Code, solicit
public comments related to the best practices published under
subparagraph (A).''.
SEC. 432. DIVERSITY ADVISORY GROUP.
(a) Definitions.--For the purposes of this section:
(1) Advisory group.--The term ``Advisory Group'' means the
Diversity Advisory Group established under subsection (b).
(2) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(3) Issuer.--The term ``issuer'' has the meaning given the
term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(b) Establishment.--The Commission shall establish a
Diversity Advisory Group, which shall be composed of
representatives from--
(1) the Federal Government and State and local governments;
(2) academia; and
(3) the private sector.
(c) Study and Recommendations.--The Advisory Group shall--
(1) carry out a study that identifies strategies that can
be used to increase gender, racial, and ethnic diversity
among members of boards of directors of issuers; and
(2) not later than 270 days after the date on which the
Advisory Group is established, submit to the Commission, the
Committee on Financial Services of the House of
Representatives, and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that--
(A) describes any findings from the study conducted under
paragraph (1); and
(B) makes recommendations regarding strategies that issuers
could use to increase gender, racial, and ethnic diversity
among board members.
(d) Annual Report.--Not later than 1 year after the date on
which the Advisory Group submits the report required under
subsection (c)(2), and annually thereafter, the Commission
shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report that
describes the status of gender, racial, and ethnic diversity
among members of the boards of directors of issuers.
(e) Public Availability of Reports.--The Commission shall
make all reports of the Advisory Group available to issuers
and the public, including on the website of the Commission.
(f) Inapplicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply with respect to the Advisory Group or the activities of
the Advisory Group.
Subtitle D--Ensuring Diversity in Community Banking
SEC. 441. SHORT TITLE.
This subtitle may be cited as the ``Ensuring Diversity in
Community Banking Act''.
SEC. 442. 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) 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. 443. DEFINITIONS.
In this subtitle:
(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. 444. 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. 445. 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
[[Page H5565]]
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. 446. 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. 447. 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 445 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. 448. 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. 449. 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
[[Page H5566]]
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. 450. 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 445
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 445) 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. 451. 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. 452. 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
445 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. 453. 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 445 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. 454. 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 (as designated pursuant to section 445) 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.
Subtitle E--Expanding Opportunity for Minority Depository Institutions
SEC. 461. ESTABLISHMENT OF FINANCIAL AGENT MENTOR-PROTEGE
PROGRAM.
(a) In General.--Section 308 of the Financial Institutions
Reform, Recovery, and Enforcement
[[Page H5567]]
Act of 1989 (12 U.S.C. 1463 note) is amended by adding at the
end the following new subsection:
``(d) Financial Agent Mentor-Protege Program.--
``(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the `Financial Agent
Mentor-Protege Program' (in this subsection referred to as
the `Program') under which a financial agent designated by
the Secretary or a large financial institution may serve as a
mentor, under guidance or regulations prescribed by the
Secretary, to a small financial institution to allow such
small financial institution--
``(A) to be prepared to perform as a financial agent; or
``(B) to improve capacity to provide services to the
customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events
to promote the participation of financial agents, large
financial institutions, and small financial institutions in
the Program at least once a year.
``(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial
agent, large financial institution, or small financial
institution may be excluded from participation in the
Program.
``(4) Report.--The Office of Minority and Women Inclusion
of the Department of the Treasury shall include in the report
submitted to Congress under section 342(e) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act information
pertaining to the Program, including--
``(A) the number of financial agents, large financial
institutions, and small financial institutions participating
in such Program; and
``(B) the number of outreach events described in paragraph
(2) held during the year covered by such report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent' means
any national banking association designated by the Secretary
of the Treasury to be employed as a financial agent of the
Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity 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 that
has total consolidated assets greater than or equal to
$50,000,000,000.
``(C) Small financial institution.--The term `small
financial institution' means--
``(i) any entity 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 that has total
consolidated assets lesser than or equal to $2,000,000,000;
or
``(ii) a minority depository institution.''.
(b) Effective Date.--This section and the amendments made
by this section shall take effect 90 days after the date of
the enactment of this Act.
TITLE V--COMMUNITY DEVELOPMENT
Subtitle A--CDFI Bond Guarantee Program Improvement
SEC. 511. SENSE OF CONGRESS.
It is the sense of Congress that the authority to guarantee
bonds under section 114A of the Community Development Banking
and Financial Institutions Act of 1994 (12 U.S.C. 4713a)
(commonly referred to as the ``CDFI Bond Guarantee Program'')
provides community development financial institutions with a
sustainable source of long-term capital and furthers the
mission of the Community Development Financial Institutions
Fund (established under section 104(a) of such Act (12 U.S.C.
4703(a)) to increase economic opportunity and promote
community development investments for underserved populations
and distressed communities in the United States.
SEC. 512. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY
OR ECONOMIC DEVELOPMENT PURPOSES.
Section 114A of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4713a) is
amended--
(1) in subsection (c)(2), by striking ``, multiplied by an
amount equal to the outstanding principal balance of issued
notes or bonds'';
(2) in subsection (e)(2)(B), by striking ``$100,000,000''
and inserting ``$25,000,000''; and
(3) in subsection (k), by striking ``September 30, 2014''
and inserting ``the date that is 4 years after the date of
enactment of the CDFI Bond Guarantee Program Improvement Act
of 2022''.
SEC. 513. REPORT ON THE CDFI BOND GUARANTEE PROGRAM.
Not later than 1 year after the date of enactment of this
Act, and not later than 3 years after such date of enactment,
the Secretary of the Treasury shall issue a 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 effectiveness of the CDFI
bond guarantee program established under section 114A of the
Community Development Banking and Financial Institutions Act
of 1994 (12 U.S.C. 4713a).
Subtitle B--Expanding Financial Access for Underserved Communities
SEC. 521. CREDIT UNION SERVICE TO UNDERSERVED AREAS.
Section 109 of the Federal Credit Union Act (12 U.S.C.
1759) is amended--
(1) in subsection (c)(2)--
(A) by striking ``the field of membership category of which
is described in subsection (b)(2),'';
(B) by amending subparagraph (A) to read as follows:
``(A) the Board determines that the local community,
neighborhood, or rural district is an underserved area;
and''; and
(C) in subparagraph (B), by inserting ``not later than 2
years after having such underserved area added to the credit
union's charter,'' before ``the credit union''; and
(2) by adding at the end the following:
``(h) Change of Field of Membership to Include Underserved
Areas.--
``(1) In general.--If an existing Federal credit union
applies to the Board to alter or expand the field of
membership of the credit union to serve an underserved area,
the credit union shall submit a business and marketing plan
with such application that explains the credit union's
ability and intent to serve the population of the underserved
area through the change in field of membership.
``(2) Report by credit union.--Not later than 2 years after
the date on which a Federal credit union's application
described under paragraph (1) is approved, the credit union,
as part of the ordinary course of the examination cycle and
supervision process, shall submit a report to the
Administration that includes--
``(A) an estimate of the number of members of the credit
union who are members by reason of the application;
``(B) a description of the types of financial services
utilized by members of the credit union who are members by
reason of the application; and
``(C) an update of the credit union's implementation of the
business and marketing plan described under paragraph (1).''.
SEC. 522. MEMBER BUSINESS LENDING IN UNDERSERVED AREAS.
Section 107A(c)(1)(B) of the Federal Credit Union Act (12
U.S.C. 1757a(c)(1)(B)) is amended--
(1) in clause (iv), by striking ``or'' at the end;
(2) in clause (v), by striking the period and inserting ``;
or''; and
(3) by adding at the end the following:
``(vi) that is made to a member or associated borrower that
lives in or operates in an underserved area.''.
SEC. 523. UNDERSERVED AREA DEFINED.
Section 101 of the Federal Credit Union Act (12 U.S.C.
1752) is amended--
(1) in paragraph (8), by striking ``; and'' and inserting a
period;
(2) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(10) The term `underserved area' means a geographic area
consisting of one or more population census tracts or one or
more counties, that encompass or are located within--
``(A) an investment area, as defined under section 103(16)
of the Community Development Banking and Financial
Institutions Act of 1994;
``(B) groups of contiguous census tracts in which at least
85 percent individually qualify as low-income communities, as
defined under section 45D(e) of the Internal Revenue Code of
1986; or
``(C) an area that is more than ten miles, as measured from
each point along the area's perimeter, from the nearest
branch of a depository institution (as defined under section
3 of the Federal Deposit Insurance Act) or credit union.''.
SEC. 524. REPORTS BY THE NATIONAL CREDIT UNION
ADMINISTRATION.
(a) Initial Report.--Not later than 3 years after the date
of enactment of this Act, but no sooner than 2 years after
the date of enactment of this Act, the National Credit Union
Administration shall issue a 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 implementation of the amendments made by this
subtitle.
(b) Update.--The National Credit Union Administration shall
issue an updated report on the implementation of the
amendments made by this subtitle to the committees described
under subsection (a) on the date that is 5 years after the
date on which the Administration issues the initial report
under subsection (a).
The SPEAKER pro tempore. The bill, as amended, shall be debatable for
1 hour equally divided and controlled by the chair and ranking minority
member of the Committee on Financial Services or their respective
designees.
The gentleman from Texas (Mr. Green) and the gentleman from North
Carolina (Mr. McHenry) each will control 30 minutes.
=========================== NOTE ===========================
June 15, 2022, on page H5567, in the third column, the following
appeared: The gentleman from Texas (Mr. Green) and the gentleman
from Kentucky (Mr. Barr) each will control 30 minutes.
The online version has been corrected to read: The gentleman
from Texas (Mr. Green) and the gentleman from North Carolina (Mr.
McHenry) each will control 30 minutes.
========================= END NOTE =========================
The Chair recognizes the gentleman from Texas (Mr. Green).
General Leave
Mr. GREEN of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks on H.R. 2543 and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in strong support of H.R. 2543, the Financial
Services Racial Equity, Inclusion, and Economic Justice Act, landmark
legislation focused on promoting racial and economic justice.
This bill was introduced by Financial Services Committee Chairwoman,
the Honorable Maxine Waters, and it includes several provisions
authored by members of the committee. Unfortunately, Chairwoman Waters
couldn't
[[Page H5568]]
be here today, but I would like the Record to reflect not only her
authorship of this bill but also her unwavering commitment to achieving
equity and inclusion on behalf of communities of color.
Today's House consideration of H.R. 2543 is historic in that for the
first time in our Nation's history, the U.S. House of Representatives
is voting on a comprehensive package of legislation to finally address
inequity with equity and inclusion in terms of financial access,
economic mobility, and fair treatment.
Today, I boldly and proudly say that this would not have been
possible without the Honorable Chairwoman Waters' leadership. This bill
is needed because racial disparities in lending, homeownership, and
wealth creation are all too real.
For some, invidious discrimination, Mr. Speaker, is only a phrase.
However, for too many others, it is a fact of life. According to the
Brookings Institution, the racial wealth gap between White and Black
households is more than $10 trillion. The onerous wealth gap is
perpetuated by the toleration of ongoing discrimination, redlining, and
systemic barriers to accessing financial credit and services.
Some of my colleagues across the aisle may say that the House
shouldn't address this important issue. They may say that the House
should ignore these very real, well-documented disparities and focus on
getting inflation under control, to which I say, this bill deals with
the very real inflationary pressures that people of color experience in
their daily lives. Too often, Mr. Speaker, consumers and businesses
from low-income communities and communities of color suffer invidious
discrimination as they struggle to access capital and credit.
Chairwoman Waters said it best, and I was there to hear her say it,
when she spoke before the Rules Committee this week. She noted that
this type of discrimination is a form of inflation in communities of
color. She indicated that when you add up inflated fees in tandem with
inflated interest rates, simple loans cost more for people of color
than others taking out the same loan in a different community.
This, of course, assumes that you are lucky enough to qualify for the
loan in the first place. If you are not, then your options to build
wealth are severely limited because you can't buy a home or start a
small business. In fact, your only option for credit might be an
inflated predatory payday loan that leaves you worse off, not better.
This is inflation that people of color experience each day, and we
should be just as outraged and concerned about these needlessly
inflated high costs as we are about the general inflation we are
experiencing during the pandemic. And I would further argue that
addressing this form of inflation will bring down costs for everyone
because, as my colleagues across the aisle are fond of saying, a rising
tide lifts all boats.
We also know that general inflation disproportionately hurts people
of color, which is why this bill directs the Federal Reserve, as it
carries out its duties to rein inflation in and promote full
employment, to also consider racial disparities so that all people--all
people--will benefit from the Fed's dual mandate.
Members of the LGBTQIA-plus community also face discrimination in
lending. This is why it leads to higher costs for them as well. We
shouldn't stand for this during any time of the year, but I am pleased
to be among those fighting for LGBTQIA-plus justice during Pride Month.
This is why H.R. 2543 includes my bill H.R. 166, the Fair Lending for
All Act, which furthers fair lending by clarifying that lending
discrimination is prohibited not only on the basis of race, Mr.
Speaker, but also on the basis of gender identity, sexual orientation,
and geography. This bill enhances supervision and establishes criminal
penalties for fair lending violations.
Let's take a closer look at fair lending at this time. Every person
who purchases a home should be able to read and understand their
mortgage documents. This is why common sense should prevail. However,
that is not the reality for many home buyers in our country today. This
is why the bill includes robust language, robust language to access the
requirements for a mortgage, and these mortgage conditions should be
made clear in languages that people understand. It requires servicers
to expand and preserve the dream of homeownership for borrowers with
limited English proficiency. Chairwoman Waters' bill will also support
the efforts of community development financial institutions, or CDFIs,
and minority depository institutions, or MDIs, that fill a historic
lending gap in underserved communities across this country. And it
would mitigate banking deserts by allowing credit unions to serve areas
that banks have ignored or abandoned.
Moreover, this legislation includes another bill of mine, H.R. 2516,
the Promoting Diversity and Inclusion in Banking Act, which would
require Federal banking regulators to evaluate policies and procedures
banks and credit unions have to promote diversity and inclusion.
I thank Chairwoman Waters for her continued leadership, her bold
leadership, as well as my colleagues and members of the Financial
Services Committee for their tireless work, including Representatives
Meeks, Cleaver, Beatty, Garcia of Texas, Torres, and Auchincloss.
Mr. Speaker, the pandemic has exacerbated and exposed many truths
about our Nation's inequitable housing and financial systems, as well
as its outsized impact on low-income families and communities of color.
It is incumbent on this Congress to finally address these disparities,
and that is precisely what Chairwoman Waters' bill will do.
Hence, I urge my colleagues to vote ``yes'' on H.R. 2543, the
Financial Services Racial Equity, Inclusion, and Economic Justice Act.
Mr. Speaker, I reserve the balance of my time.
{time} 1230
Mr. McHENRY. Mr. Speaker, I rise in opposition to H.R. 2543, and I
yield myself such time as I may consume.
This week, Democrats have a bill on the floor to ``address inflation
and help bring costs down for Americans.''
Just last week, President Biden stated that inflation is his ``top
domestic priority.'' So, let's talk about inflation if we are going to
talk about the Federal Reserve. Let's look at the numbers. Let's look
at the stats.
The President announced that his focus is going to be on the economy
this month. To kick it off, his Treasury Secretary, Secretary Yellen,
finally admitted that she was wrong when she called inflation
transitory last year.
To the Biden administration and congressional Democrats, I would like
to say to you: Welcome to the party. You are a year late. The American
people have been feeling this pain of inflation, and I am glad you are
coming to the realization that we have to do something about it.
Republicans welcome the conversation.
Inflation has surged to a 40-year high. Stats across the board are
terrible. Everyday goods and services are more unaffordable today,
especially for low-and middle-income Americans and those on fixed
incomes. Skyrocketing consumer prices are outpacing wage gains. U.S.
households will spend an extra $5,200 this year compared to last year
for the same basket of goods and services they normally buy.
The national average for the price of gasoline has reached a
staggering $5 a gallon. If that weren't bad enough, our economy is now
shrinking. The U.S. GDP came in at a negative 1.4 percent in the first
quarter of this year. That is problematic. That is bad.
Democrats want to blame everything from Putin to so-called corporate
profiteering for the inflation crisis. They are still looking for who
did it. Well, guess what, folks. The call is coming from within the
house. They are the ones that put this on the American people.
This is all the result of Democrats' bad economic policies, and this
crisis is of their own making. The American people know it. They see
it. They feel it. They experience it.
In a recent poll released by The Wall Street Journal, 83 percent of
respondents rated current economic conditions as poor or not good. This
is the result of Democrat economic policies. Since they control the
fullness of the Federal Government, they have put their economic
policies into place, and we are living with the bad consequences. All
across the board, inflation is way up.
[[Page H5569]]
In another poll released by RealClearPolitics, 60 percent of the
American people disapprove specifically of President Biden's handling
of the economy.
What is the Democrats' strategy? It is to distract struggling
families with this bill that we have on the floor today, a bill that
might sound good but does nothing to bring down consumer prices or help
struggling families.
Let's talk about the contents of the bill. Republicans support
improving diversity in financial services, but H.R. 2543, this bill,
misses the mark. Committee Democrats had the opportunity to work with
Republicans on a bipartisan legislative package to achieve that goal.
In fact, five of the bills that make up this package received some
Republican support, either in markup, in committee, or on the floor in
previous Congresses. But instead of working with Republicans, committee
Democrats injected this package with another eight partisan poison
pills.
First, this bill blatantly politicizes the Federal Reserve. In fact,
it tasks the Fed with a third mandate, and that third mandate is to
close socioeconomic disparities instead of focusing on what we have
asked the Fed to focus on, which is price stability and maximum
employment possible. So much for the President saying he is not going
to politicize the Fed or he is going to respect the Fed's independence.
This bill goes completely counter to that.
This bill will make credit more expensive and less accessible to
those who need it the most.
This bill will also pile regulatory costs on small businesses,
forcing them to divert resources from business operations to report on
diversity and inclusion metrics outlined in this bill. Currently,
businesses can self-assess the makeup of their workforce. This bill
would impose a one-size-fits-all mandate on all job creators,
regardless of size, geographic location, or business model.
This bill is a boon for litigious trial lawyers, and it is a boon for
them because it expands ECOA, and it opens businesses up to new
lawsuits. This creates uncertainty in the credit markets, ultimately
increasing the cost of credit and making it more difficult to assess
credit risks for financial institutions and businesses.
Finally, while Americans are reeling from higher prices, this bill
will make it more expensive for families to purchase a home. This bill
will impose additional costs on creditors and servicers, which will
inevitably be passed on to those applying for loans.
The bottom line, this is just another attempt by House Democrats to
divert voters' attention from the big issues of the day, and that is
their dismal economic record that they have foisted upon the American
people.
If House Democrats are serious about addressing inflation, as the
Biden administration has claimed and as the President has specifically
said he is focused on this month, if they were serious, they would
abandon a partisan messaging bill like the one we have on the House
floor.
Mr. Speaker, I urge my colleagues to vote ``no,'' and I reserve the
balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I yield 2 minutes to the gentleman
from New York (Mr. Meeks), my dear friend.
Mr. MEEKS. Mr. Speaker, I thank Representative Green for yielding,
and, of course, I thank Chairwoman Waters for bringing this important
piece of legislation to the floor.
I heard Ranking Member McHenry talk today, and I think that the
American people understand that inflation is all over the world. It is
not a United States problem; it is a global problem predicated by
Putin's aggression in Ukraine and coming out of the greatest pandemic
that we have had in over 100 years. Democrats are focused on working
with the globe to make a difference.
I want to focus on this bill and talk about the Improving Corporate
Governance Through Diversity Act and the Ensuring Diversity in
Community Banking Act portions of this bill. On that, I thank Ranking
Member McHenry and other Republicans for the bipartisan support both
bills received when they unanimously passed out of the Financial
Services Committee.
We need to continue all efforts to promote racial and economic
justice in our communities, and this package of legislation does
exactly that. Investors want to know whether the C-suites and the
boardrooms in corporate America are actually working in their interests
and reflecting their ideals. I, along with Representatives Carolyn B.
Maloney and Ritchie Torres, worked to enhance the SEC's disclosure
regime by requiring public companies to disclose race, ethnicity,
gender identity, sexual orientation, and veteran status of these
companies. We want these spaces to truly reflect the diversity of this
Nation.
Also included in this package is my bill that emphasizes the
importance of minority banks and credit unions in serving our
communities. The Ensuring Diversity in Community Banking section will
address the issue of banking deserts and strengthen programs that
provide capital to these critical and crucial institutions. It also
creates an impact bank designation in order to promote banks that
predominantly serve low-income communities.
Mr. McHENRY. Mr. Speaker, I yield 2 minutes to the gentleman from
Kentucky (Mr. Barr), my colleague and friend and the ranking member of
the National Security, International Development, and Monetary Policy
Subcommittee of the Financial Services Committee.
Mr. BARR. Mr. Speaker, for over a year, Democrats have dismissed the
historic inflation crushing American households.
First, they said it was transitory. Then, they played it down as a
high-class problem. Now, President Biden ridiculously and falsely
refers to rising prices as Putin's price hike.
But the American people know that Democrats' failed policies created
this inflation crisis. Their overspending created excess demand. Their
war against domestic energy production constrained supply. And this
supply-demand mismatch pushed prices to a four-decade high.
In March 2021, the Consumer Price Index was at 2.6 percent and gas
prices were $2.70 per gallon. That month, President Biden's American
inflation plan was signed into law. What happened as a result? We have
8.6 percent inflation on the CPI from last Friday, the highest in over
40 years. On top of that, we are seeing historic energy prices. Fuel
oil is up 106 percent, the highest ever, and regular gasoline is up
over 50 percent year over year. For the first time ever, gas prices
reached $5 per gallon nationally last week.
Instead of addressing the cause of inflation, such as Big Government
spending, radical energy policies, and politicization of access to
capital, they continue to push partisan packages that will do
absolutely nothing to correct historic inflation that is plaguing the
middle class. Case in point is this bill, the Racial Equity, Inclusion,
and Economic Justice Act.
At a time of historic inflation, the central responsibility, the core
job, of the Federal Reserve is to ensure price stability. But instead
of responding to Democrats' fiscal policy errors, the Fed failed to
tighten monetary policy fast enough to address this inflation crisis,
especially at this time when they should be focused on price stability.
What does the Democrat majority do? They want to give the Fed more
responsibilities. They want to give them responsibilities beyond their
core competency or expertise.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. McHENRY. Mr. Speaker, I yield an additional 30 seconds to the
gentleman from Kentucky.
Mr. BARR. Mr. Speaker, instead of diverting the Fed's focus away from
their responsibility of tackling inflation, the Federal Reserve should
be focused on dealing with inflation.
If Democrats were truly interested in helping low- and moderate-
income households, fixed-income households, and communities of color,
who are suffering the most under Biden's inflation crisis, they need to
keep the Fed's eye on the ball. Don't have them weigh into social
policies and controversial policies that are in the responsibility and
jurisdiction of Congress. The Fed needs to be focused on helping tame
inflation. This bill gives the Fed responsibilities it doesn't need to
have.
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
[[Page H5570]]
Mr. Speaker, we are witnessing now why we have the invidious
discrimination that exists in this country. Not one word has been said
about the invidious discrimination, the high cost in loans that people
of color suffer. Not one word is being said about it. Rather, there is
always an effort to deflect. This has been going on for centuries, but
not today. It ends today.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Ohio (Mrs.
Beatty).
Mrs. BEATTY. Mr. Speaker, let me first thank Chairman Green for
yielding and for his outstanding job of managing the floor today.
I also thank Chairwoman Maxine Waters for her leadership in bringing
diversity and inclusion to the forefront of the conversation in the
financial services industry. It was her vision to create the Financial
Services Committee's Subcommittee on Diversity and Inclusion, and I
have had the honor to serve as its chair since its inception.
The racial justice equity package before us today is very much the
product of the subcommittee's work over the past 3-plus years, and I am
proud to say that many of its provisions were authored by subcommittee
members. Republicans participated in the hearing, and today, when we
deflect to issues like what we are hearing, it is very alarming. There
is nothing controversial in this package or the bills I am going to
reference.
Two of my bills are included in this package, the Diversity and
Inclusion Data Accountability and Transparency Act, referred to as the
D&I DATA Act, that will direct the Office of Minority and Women
Inclusion to collect data on the financial institutions they oversee.
This will allow us to measure the progress that banks and other
financial institutions are making on diversity performance.
{time} 1245
My second bill is the Expanding Opportunity for Minority Depository
Institutions Act that will codify a program at Treasury that pairs
mentor businesses with protege MDIs, giving the smaller lenders access
to things like technical assistance and contracting opportunities.
I am so pleased; in my Third Congressional District of Ohio a new MDI
has been approved.
I also note that my bill, the Ensuring Diverse Leadership Act, has
been made in order as an amendment and will be considered later. That
amendment will require the Fed to consider candidates of diverse
ethnicity and gender when filling vacancies in the Federal Reserve
Bank.
Mr. McHENRY. Mr. Speaker, I yield 1 minute to the gentleman from
Arkansas (Mr. Westerman), the ranking member of the Natural Resources
Committee.
Mr. WESTERMAN. Mr. Speaker, I thank the ranking member for yielding.
I rise today to speak against H.R. 2543. This bill does not address
the underlying causes restricting access to credit or inflation that
has eroded many Americans' borrowing power. It is just a mixed bag of
extra mandates on the Federal Reserve and new regulatory burdens on
small businesses.
I don't hear my small businesses asking for more regulation,
additional compliance burdens, or the imposition of a sweeping social
agenda.
Families are struggling to afford food and gas. Small businesses are
struggling to hire employees, and my local banks and credit unions are
feeling the pinch of inflation and rising interest rates every day.
If the majority was serious about helping Americans, they would have
made my amendments in order to examine the effects of inflation and
bank consolidation on access to credit for those in low-income census
tracts, rural counties, racial minorities, women, and veterans, the
very communities that Democrat policies have hurt the most. My
amendments would have been a step in the right direction, but the
Democrat majority blocked them.
Mr. Speaker, digging the hole deeper is no way to get out of the
crisis the Democrat administration and Democrat majorities in Congress
have created.
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
I will read from an article entitled: ``Examining the Black-White
wealth gap'' from the Brookings Institution dated February 27, 2020.
``A close examination of wealth in the U.S. finds evidence of
staggering racial disparities. At $171,000, the net worth of a typical
White family is nearly 10 times greater than that of a Black family
($17,150) in 2016. Gaps in wealth between Black and White households
reveal the effects of accumulated inequality and discrimination, as
well as differences in power and opportunity that can be traced back to
this Nation's inception.''
And this is why it continues, because people on that side of the
aisle are willing to tolerate invidious discrimination. They will talk
about anything but invidious discrimination. They have no remedies.
Mr. Speaker, I yield 2 minutes to the gentleman from Missouri (Mr.
Cleaver), my friend.
Mr. CLEAVER. Mr. Speaker, first of all, I thank the floor manager,
Mr. Green of Texas, and I stand with my colleagues and Chairwoman
Maxine Waters of California who I know is watching this debate in
support of the Financial Services Racial Equity, Inclusion, and
Economic Justice Act. I wish her a speedy return, but I thank her for
the tremendous amount of work put into this piece of legislation, which
would transform countless American lives for the better.
I specifically highlight the inclusion of the CDFI Bond Guarantee
Program Improvement Act--Community Development Financial Institutions--
a priority of the CDFI community. I thank Congressman William Timmons
from South Carolina for his partnership in advancing the bill through
the Financial Services Committee by voice vote in committee markup last
month.
According to the CDFI Fund in 2019, 33 percent of CDFI lending was in
high-poverty areas, but we have got to do better. Seventeen percent was
in rural areas.
CDFIs are instrumental in providing affordable capital to communities
typically excluded or underserved by the mainstream financial system. I
am proud of committee efforts to provide additional resources to these
mission-driven community institutions that have faced several
challenges in recent years.
Prior to the CDFI Bond Guarantee Program, CDFIs were extremely
limited in their ability to access capital to make large-scale
investments in community facilities, basic infrastructure projects, or
job-generating businesses. The CDFI Bond Guarantee Program was enacted
to provide long-term, low-cost capital to CDFIs which use the funding
for economic development activities in low-income urban, rural, and
indigenous communities.
My bill would authorize the program and reduce the minimum issuance
from $100 million to $25 million, opening up the program to smaller
CDFIs and to support more community development projects such as loans
to small businesses, commercial real estate, affordable housing, and
healthcare facilities all across the Nation.
Mr. Speaker, I urge the passage of this bill.
Mr. McHENRY. Mr. Speaker, I yield 1 minute to the gentleman from Ohio
(Mr. Davidson), the ranking member of the Fintech Task Force on the
Financial Services Committee.
Mr. DAVIDSON. Mr. Speaker, I rise to oppose this bill. The Fed is not
meant to be a political weapon. With inflation above 8 percent and the
economy on the verge of a recession, this is one of the most
inopportune times in our Nation's history to suggest that we turn the
Fed into a political pawn.
Our Nation is suffering from too much government. Inflation is a
policy choice, and this delivers more government to an agency that is
supposed to be insulated from it.
We know the recipe. We need more freedom, less government, and sound
money. This thing distracts the Federal Reserve.
Inflation doesn't care about your race. The price of groceries, the
price of healthcare, education, rent, it doesn't care about your race
or your gender. We have to stop the politicization of our government
agencies as Democrats--really the radical left--stays committed to this
long march through our Nation's institutions to try to push an agenda
at odds with the American public. If this bill does anything, it
highlights that disconnect.
Mr. Speaker, I urge every one of our colleagues to oppose this bill.
[[Page H5571]]
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, inflation does care about your race if you happen to be
a person of color and you are applying for a loan.
Inflation does care about your race if you happen to have fees added
on that you shouldn't have simply because you are a person of color.
People of color have to deal with general inflation and the specific
inflation associated with invidious discrimination, and it is the
intolerance by my colleagues across the aisle through the centuries
that has perpetuated this level of inflation.
The SPEAKER pro tempore. Members are reminded to direct their remarks
to the Chair.
Mr. GREEN of Texas. Mr. Speaker, I yield 2 minutes to the gentlewoman
from Texas (Ms. Garcia).
Ms. GARCIA of Texas. Mr. Speaker, I rise in support of H.R. 2543, the
Financial Services Racial Equity, Inclusion, and Economic Justice Act.
Let me repeat the words, this is what we are talking about: racial
equity, inclusion, and economic justice.
I thank Chairwoman Waters for bringing this legislation forward and
for her leadership on all these important issues. I thank Chairman
Green who is the chair of the Subcommittee on Oversight and
Investigations for navigating us through this bill being heard today.
Specifically, I will speak about two bills which have been included
in this important package, such as the Improving Language Access in
Mortgage Servicing Act.
According to the U.S. Census, over 20 percent--that is one out of
five--households in the United States speak a language other than
English, and nearly 9 percent of households lack a proficient English
speaker.
Homeownership is an opportunity to build generational wealth and
speaking another language should never be a barrier in home buying and
mortgaging.
This legislation will establish language access requirements in the
eight most commonly spoken languages in the United States, besides
English, for creditors and servicers to ensure that Americans who lack
English proficiency are not at a disadvantage while buying a home.
Imagine getting something from your mortgage company telling you you
owe something or that you are at risk of maybe being foreclosed on, but
it is all in English, and you speak no English. Of course, you will end
up being in foreclosure because you don't understand the notice that
you are getting. This is what my bill is about.
The second bill is the Studying Barriers to Housing Act, which has
also been included in this package.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. GREEN of Texas. Mr. Speaker, I yield an additional 20 seconds to
the gentlewoman.
Ms. GARCIA of Texas. Mr. Speaker, this legislation will require the
GAO to conduct a study to identify housing barriers that contribute to
the issue of homelessness.
This study will find laws, regulations, common practices, and funding
formulas that create barriers to housing in an effort to pinpoint the
problems in our system that cause homelessness to continue and grow.
I am proud of both of these bills, and I hope that both of these
bills pass to increase expanded language access and to find the root
causes of homelessness.
Mr. McHENRY. Mr. Speaker, I yield 1 minute to the gentleman from
Tennessee (Mr. Rose), my friend and colleague, and a leader on the
Financial Services Committee.
Mr. ROSE. Mr. Speaker, I thank the gentleman for yielding.
H.R. 2543 will do nothing to resolve the long list of crises the
Biden administration's policies have caused, such as runaway,
devastating inflation; massive Federal debt; unacceptably high gas
prices; a skyrocketing crime rate; and an open border that allows
millions of illegal immigrants and tons of deadly fentanyl into our
country.
This bill, which has no chance of becoming law and is dead on arrival
in the Senate, would impose additional and burdensome reporting
requirements on public companies, reduce access to credit, distract the
Federal Reserve from pursuing its statutory mandate, and further
politicize our regulatory agencies.
Families in middle Tennessee can't find baby formula and are
struggling to pay for groceries and gas while Democrats are jamming
through a partisan bill just to score political points with their
leftwing progressive base. We must do better for our constituents and
for our country.
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
People of color are constituents. People of color are Americans.
People of color deserve the opportunity to have equality of
opportunity.
Hundreds of years have gone by, and this is what we are getting as a
result of those who would ignore the concerns of Americans of color.
Mr. Speaker, I yield 2 minutes to the gentleman from Massachusetts
(Mr. Auchincloss), a member of the Financial Services Committee.
Mr. AUCHINCLOSS. Mr. Speaker, our economy has not always worked for
everyone equally. This is evident in the glaring wealth disparities for
American families emphasized in the 2019 Survey of Consumer Finances
Federal Reserve report. Chairwoman Waters' Financial Services Racial
Equity, Inclusion, and Economic Justice Act is an effort to ease
economic disparities across racial and ethnic groups. The bill will
also expand access to financial services for consumers and small
businesses in underserved communities.
Consumers should have access to affordable banking services, which
requires competition in the market. Over the last several decades,
there has been consolidation amongst banks and credit unions. This has
effectively limited the products available to consumers and
artificially driven up costs while closing banking branches for people
who already did not have many choices.
The Financial Services Racial Equity, Inclusion, and Economic Justice
Act includes my bipartisan bill, the Promoting New and Diverse
Depository Institutions Act, which is the first step to expand
competition and increase the supply of banking services. My bill
directs banking regulators to work together to address the challenges
that new depository institutions, including MDIs and CDFIs, face when
applying for a charter.
Starting and maintaining a new bank or credit union is hard work. It
is the banking regulators' responsibility to measure and mitigate the
challenges that new banks face. My bill will help new banks, and in
doing so will expand access to affordable services for underbanked
communities.
The legislation we are considering today also includes other
necessary equity bills, such as Congresswoman Garcia's, which expands
language access in mortgage services. Congressman Green's bill would
clarify that sexual orientation and gender identity are protected
classes under credit discrimination.
I applaud Chairwoman Waters' leadership on this bill, and I urge my
colleagues to support it.
{time} 1300
Mr. McHENRY. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from North Carolina (Mr. Budd), my friend and colleague.
Mr. BUDD. Mr. Speaker, in the month of June, I asked a poll question
on one of my telephone town halls. I asked: Has your family noticed a
sharp rise in prices? And 94 percent of them said: Yes. The crazy part
of this is that I am not talking about this June, I am talking about
last June.
The average family will be spending $5,200 more this year because of
Joe Biden's inflation. We are not debating solutions to this crisis
today, we are debating economic justice. But for most Americans, the
most economically just thing that we can do right now is to lower gas
prices for everyone, and to help seniors on fixed incomes afford their
groceries.
This crisis is real. It is not transitory. It is not a so-called
high-class problem. It is a tax and a burden on every citizen in our
country. And as long as the Democrat majority in this Congress remains
plagued by denial and distraction, the harder life will become for
American families.
Mr. GREEN of Texas. Mr. Speaker, I yield myself 1 minute.
Mr. Speaker, the Brookings Institution indicates that the Black and
[[Page H5572]]
White wealth gap reflects a society that has not and does not afford
equality of opportunity to all of its citizens. This is evidenced today
by the responses that we are getting.
No effort to deal with the centuries of inequality. No desire to deal
with invidious discrimination. Always a reason why we can't get to it
right now. I have been in Congress for years--never addressing this
problem.
Mr. Speaker, today is a day of reckoning for all of those who have
been hiding behind other issues. Today they have to confront the truth.
There is invidious discrimination in America, it impacts the LGBTQ-
plus, it impacts people of color, and women as well, and today we have
legislation because of the Honorable Maxine Waters' efforts that can
deal with these issues.
Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Wisconsin (Mr. Steil), a leader on the Financial Services
Committee.
Mr. STEIL. Mr. Speaker, we are here at a point in time when prices
are out of control. The American people are getting punched in the face
by higher prices every day.
Gas is over $5 a gallon. The American people are paying hundreds of
dollars more per month because prices are out of control. The Federal
Reserve has a mandate to maintain price stability. The Federal Reserve
is failing in that mandate. My colleagues across the aisle--the
outgoing majority--continue to try to add another mandate to the
Federal Reserve.
The Federal Reserve is failing on step one--price stability. Let's
address price stability so people aren't getting clobbered every day by
higher prices; so people aren't getting clobbered when they go to fill
up their car with gas; clobbered when they go to the gas station;
clobbered when they go to the grocery store to get groceries.
The outgoing majority wants to add another mandate to the Federal
Reserve at a period of time when the Federal Reserve is failing in
their current mandate. Nothing could be more illogical. We need to get
prices under control.
We can do that by unleashing American energy and we can do that by
controlling wasteful spending in Washington, D.C. This bill is
misplaced. This bill moves us in another direction. Instead, we should
be focusing on actually controlling costs.
Mr. GREEN of Texas. Mr. Speaker, I yield myself 30 seconds.
Mr. Speaker, people of color are clobbered every day by higher
interest rates. They are clobbered every day by loans that have fees
that are higher than loans for people of a different hue. These are the
things that are being perpetuated when they tolerate this kind of
behavior. For centuries they tolerated it.
Now we have the opportunity to do something about it. Let's eliminate
these costs for some people so that we can deal with the costs for
everybody. Until that is done, we have to have this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield 2 minutes to the gentleman from
Florida (Mr. Donalds).
Mr. DONALDS. Mr. Speaker, the measure in front of us today just makes
no sense. This measure is actually going to make inflation worse. Why?
Because you are going to put a third mandate on the Federal Reserve--a
Federal Reserve that has done a poor job of actually managing price
stability.
The same price stability that hurts poor Americans whether you are
Black, whether you are Hispanic, or whether you are White. The same
price stability that hurts middle-income Americans whether you are
Black, whether you are Hispanic, or whether you are White.
The only group of Americans who might even escape the sting of
inflation in the United States are rich Americans who happen to be
Black, rich Americans who happen to be Hispanic, and rich Americans who
happen to be White.
The common denominator with massive inflation is that if you are
poor, regardless of your race, you are being crippled. To have the
majority party say today that they are going to add a third mandate
onto the Federal Reserve is ludicrous. That does not address the
systemic disparities that exist with respect to wealth in America
between Black families and White families.
We all know the history. We understand why there are Black families
who do not have the same size of net worth as White families on an
average basis. What you do not do is saddle our economy with more
regulation and more silly policies, which will actually make our
economy more efficient.
How are Black families in the future going to actually increase their
net worth if being able to apply for loans is more expensive? How do
Black families actually increase their wages if our economy is saddled
with more inflation? It does not help Black people going forward, it
actually hurts them, and it hurts everybody along the way.
We should be getting the Federal Reserve back to one mandate--of
sound money. That would actually help matters for poor Americans,
regardless of their race. That is a bill myself and my colleague from
Arkansas (Mr. Hill) have sponsored to get the Federal Reserve back into
the right place.
If you want to seriously have a conversation about systemic
inequities, if you want to have a conversation about the difference in
net worth between Black Americans and White Americans, what you cannot
do is shut off the economy, which would actually hurt Black families
from growing their wealth into the future.
Mr. GREEN of Texas. Mr. Speaker, I yield myself 10 seconds.
Mr. Speaker, we have just heard a great recitation on how to do
nothing; how to maintain the status quo; how to be proud that you can
stand up in the House of Representatives and defend the status quo for
some 300 years.
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms.
Lee).
Ms. LEE of California. Mr. Speaker, first of all, let me thank
Congressman Green who is a lifelong warrior for racial justice, for his
tremendous leadership, and for the time to speak this morning.
Mr. Speaker, I rise in strong support of H.R. 2543, and I thank
Chairwoman Waters and the full committee and the Speaker for bringing
this important bill to the floor.
America's racial wealth gap divide directly results from generations
of slavery, segregation, and institutional racism. Black and Brown
communities have never had--I mean, never have had--the same
opportunities to build wealth as White communities. The gap has only
increased and widened in recent decades. This is a fact.
This bill will ensure that Federal monetary policy focuses on
reducing racial and ethnic disparities. It will reorient our financial
systems to support wealth creation in historically underserved
communities. It will support a more level playing field for Black and
Brown families--whether they are buying a home or building equity.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. GREEN of Texas. Mr. Speaker, I yield the gentlewoman an
additional 30 seconds.
Ms. LEE of California. Mr. Speaker, to close the racial wealth gap,
we must confront the systemic and institutional racism that has long
stunted wealth creation in communities of color. In California, my home
State, we didn't even have a fair housing law until I believe it was
1964. Come on. That is generations of my family who weren't even able
to buy a house. They didn't acquire equity to be able to live the life
that White people live in this country.
Come on, please. H.R. 2543 is an important step in the direction to
close these racial gaps. I urge my colleagues to support it.
Mr. McHENRY. Mr. Speaker, I yield 1 minute to the gentlewoman from
California (Mrs. Kim).
Mrs. KIM of California. Mr. Speaker, I rise in opposition to H.R.
2543. This bill threatens the independence of the Federal Reserve and
does nothing to address the rising cost of living and the highest
inflation that our country has seen in over four decades. In my home
State of California, gas prices are averaging $6.40 per gallon, and the
cost of everyday goods continues to rise.
=========================== NOTE ===========================
June 15, 2022, on page H5572, in the third column, the following
appeared: Mrs. KIM. Mr. Speaker, I rise in opposition to H.R.
2543. This bill threat-
The online version has been corrected to read: Mrs. KIM of
California. Mr. Speaker, I rise in opposition to H.R. 2543. This
bill threat-
========================= END NOTE =========================
The way the Fed can address socioeconomic disparities for all groups,
including our most vulnerable communities, is by focusing on the
existing
[[Page H5573]]
dual mandate of price stability and maximum employment. Instead of
letting the Fed use its existing tools, my colleagues on the other side
of the aisle are attempting to politicize it.
Congress should be focusing on addressing real wages being down 4.2
percent and helping the Fed achieve a price stability mandate instead
of enacting partisan policies.
Mr. Speaker, I urge a ``no'' vote on H.R. 2543.
Mr. GREEN of Texas. Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Oklahoma (Mr. Lucas), a longtime member and leader on the
Agriculture Committee and the Financial Services Committee.
Mr. LUCAS. Mr. Speaker, I rise in opposition to H.R. 2543. The U.S.
economy faces tremendous challenges. We have 40-year high inflation,
persistent supply chain disruptions, and tight labor markets.
The American people are grappling with increased costs across every
aspect of their life. Food is more expensive, energy and gasoline
prices have skyrocketed, and the cost of housing is surging.
In 1977, when I first started out as a young farmer, we slid into the
inflationary period of the Carter years, and went through Chairman
Volker's dramatic tightening of the money supply. This period was
devastating to my neighbors and the entire U.S. economy, and left a
profound impact on how I view fiscal and monetary policy.
Now is not the time to take the Federal Reserve's eyes off the ball.
Congress should be focused on the issues that currently weigh on the
economy and aim to strengthen the financial well-being of the American
people.
Mr. Speaker, I oppose H.R. 2543.
Mr. GREEN of Texas. Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield 5 minutes to the gentleman from
Arkansas (Mr. Hill), a great leader on the Financial Services
Committee.
Mr. HILL. Mr. Speaker, I do rise in opposition to H.R. 2543. I thank
my friend from Houston, Texas, and our colleagues on both sides of the
aisle that worked on many of the bills that are in the package today.
{time} 1315
It is a shame that that package was not put together in such a way
that we could be here in a bipartisan visit about the ones that we
actually support and that we think could be enacted into law. Instead,
Democrats have put together a partisan package of bills that politicize
our central bank and do nothing to address the insidious inflation that
is hurting all American families and workers--Black, Brown, and White.
Mr. Speaker, one thing I know is that H.R. 2543 will not become law.
Mr. Speaker, on Monday, Arkansans woke up and as they went to work and
filled up their tanks for the week, they had to pay $5 for gas. That is
not as high as it is here in Washington, but $5 is hurting all of the
hardworking families in my State.
While Treasury Secretary Janet Yellen is still toeing the
economically illiterate party line on inflation, even economists from
the left of center admit that government spending was too much and not
targeted.
Don't believe me?
Listen to President Biden's key advisers.
Former Treasury Secretary Larry Summers predicted, a month after
President Biden took office, that the proposed American Rescue Plan
would ``set off inflationary pressures of a kind we have not seen in a
generation.''
Now Larry Summers is forecasting a recession.
Steve Rattner, Mr. Obama's former economic adviser on his staff, said
Mr. Biden was ``wrong to omit the important contribution to inflation
from excessive fiscal and monetary stimulus.''
The truth is, after the CARES Act and the December appropriations
bill of 2020, there was plenty of COVID money left over, and the
economy was well on its way to recovery with vaccines being
distributed.
But House Democrats supercharged demand-side stimulus by adding
another $2 trillion in unpaid-for spending in that so-called American
Rescue Plan. Mr. Speaker, Americans aren't feeling rescued. They are
feeling like hostages--hostages to the daily theft of the Biden
inflation.
Now, Mr. Speaker, the President fashions himself as a budget hawk,
saying last month that he personally reduced the deficit last year, and
he is complaining that we on this side of the aisle aren't giving him
any credit. But what he doesn't tell you, Mr. Speaker, is that he is
taking credit for deficits that were falling due to those expiring
COVID programs.
The facts are, Mr. Biden has not reduced deficits. In fact, he has
increased them. The Congressional Budget Office's latest numbers
project $16 trillion in additional debt between now and 2032.
So I hear a lot of talk about deflection on our House floor today,
and the deflection of this bill, Mr. Speaker, is the deflection from
the insidious inflation that our families are facing. If House
Democrats were serious, then they would target and spend less money.
They would stop blaming Putin and accusing American companies of price
gouging. They would stop cutting off capital to American energy
companies through ESG mandates and intimidating banks, and they would
stop threatening trillions in more taxes.
While government spending and supply chain constraints have
contributed to higher prices, this inflation also stems from the Fed's
loose monetary policy--too loose, too lax, and for too long.
Just as House and Senate Republicans worked to tailor and end the
COVID funds at the end of 2020, we also urged the Federal Reserve to
end zero interest rates and begin shrinking their balance sheet.
Instead of doing anything to address these root causes of inflation,
H.R. 2543 on the House floor would instead expand the Fed's mandate to
address socioeconomic disparities.
Two weeks ago, Mr. Biden met with Fed Chair Jerome Powell in the Oval
Office where Mr. Biden said that he embraced the Fed's independence.
Apparently, House Democrats didn't get the memo. At a time when our
central bank has failed to carry out its current mandate for sound
money and price stability, Democrats want the Fed to not only be a
climate regulator but also to end racial inequity. Expanding the Fed's
mandate to address socioeconomic disparities would further inject
uncertainty and risk into the Fed's monetary policy and politicize our
historically independent central bank.
House Republicans believe Congress should return to pre-pandemic
debates on our spending priorities, abandon economic pop science fads
like modern monetary theory, and urge our Federal Reserve to return to
its core mission.
Mr. Speaker, I urge my colleagues to reject this bill, H.R. 2543.
Mr. GREEN of Texas. Mr. Speaker, I have no additional speakers, and I
am prepared to close.
Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, 80 percent of Americans say inflation is the most
important issue facing the country, that is according to ABC News/Ipsos
poll. We can't get 80 percent of the American people to agree on
anything in our political discussion, but they agree that this economy
and this inflation are problematic.
We have been given our marching orders. Congress must act to address
skyrocketing prices and provide relief to struggling families. That is
what the American people are telling us we should be focused on.
Instead, here we are debating a messaging bill that stands no chance
of becoming law.
I have already run through a long list of bad things in this bill. I
did that in my opening, so I would rather spend the rest of my time
discussing what western North Carolinians are most worried about, what
my constituents are most worried about.
In the core part of my district known as the Catawba Valley, the cost
of housing alone has increased more than 15 percent since last year.
Where I live in the Lake Norman region, local food banks are struggling
to keep up with the surging cost of food and increased demand stemming
from those costs.
One food bank operator said: ``We are out of staples.''
That is a frightening thing.
They also added: We are tired of high grocery bills. We are tired of
gas prices
[[Page H5574]]
going up. One of my constituents from Winston-Salem said that on a
local Fox affiliate.
North Carolinians are fed up. The American people are fed up. They
don't like what they see economically, and they deserve real answers
and real solutions to address that core problem--the core issue of
inflation.
So let me be clear. There is no mystery of why we have runaway
inflation. It is Democrats' reckless spending that is the driver of
this. They have managed the fiscal house for a year and a half, and
they have managed to drive our economy into the ditch.
So we have got to get it out of the ditch. We have got to get it back
on the road. We have to be in the right direction with a growing
economy, not a shrinking economy, and with wages increasing more than
the cost of the goods that people need to live.
So instead of addressing this crisis of their own making, Democrats
would rather distract Americans with a bill that does nothing to bring
down costs. This is yet another attempt to distract the American people
from that basic challenge and that basic fact of high inflation.
But to my colleagues on the other side of the aisle: you aren't
fooling anyone. The American people are on to who caused inflation, who
started inflation, and who is driving up the cost of energy bills, both
at home and in their car. They understand why, and there are real
consequences for not addressing the needs of the American people.
Thankfully, I have faith in the American people to get this right. I
hope our elected officials will follow suit. We, on the Republican side
of the aisle, are hearing this loud and clear, and that is why we are
trying to return to fiscal stability and fiscal sanity and return to
sound money. That is our focus.
Mr. Speaker, this bill doesn't address the core problems the American
people are telling us we should address, and that is why we should
reject this bill that does nothing to answer the call the American
people have made.
Mr. Speaker, I urge a ``no'' vote.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Arkansas (Mr. Hill).
Mr. HILL. Mr. Speaker, I thank my good friend, the ranking member on
the House Financial Services Committee, Mr. McHenry, for his
leadership.
Mr. Speaker, I have a motion to recommit. It addresses the core flaw
that House Republicans believe presides today. We hear the voices of
those 80 percent of Americans who say that $5,000 extra coming out of
our pockets is what is hurting the working families, Black, White, and
Brown, in my home State of Arkansas. We know inflation is the top issue
facing this House and facing our families that we represent.
That is why if we were to adopt my motion to recommit, we would
instruct the Committee on Financial Services to adopt my amendment to
H.R. 2543. This amendment, Mr. Speaker, is straightforward. It would
simply focus the Federal Reserve, as Representative Byron Donalds so
eloquently outlined, on a single mandate: price stability.
Mr. Speaker, I ask unanimous consent to include the text of my
amendment in the Record immediately prior to the vote on the motion to
recommit.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. McHENRY. Mr. Speaker, I urge a ``no'' vote, and I yield back the
balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, it is painful to hear a Member of Congress talk about
reckless spending when that spending is what was necessary during the
pandemic.
Is it reckless spending to allow people to receive some sort of help
when they couldn't go to work, Mr. Speaker?
My colleagues across the aisle would not have helped the American
people who were out of work during a pandemic because it would be
reckless spending.
Is it reckless spending to keep people in their homes and not allow
them to be foreclosed on?
My colleagues across the aisle would have allowed people to be
evicted and their things thrown in the streets because to them, helping
people in a time of crisis is reckless spending.
Is it reckless spending to put food on the table of people who can't
go to work?
Is it reckless spending to make sure babies and children who are
going to school get proper schools that can protect them during a virus
and a pandemic that was killing people worldwide?
We put money into schools. We put money into police departments and
fire departments. But that is reckless spending to my colleagues across
the aisle.
They are the best on the planet at doing nothing. Do-nothing politics
is what that is all about. They find clever ways to find an opportunity
to do nothing by saying things that mean nothing to the people who need
help.
Reckless spending. How dare they call it reckless spending when
people are suffering and need help.
Now, let me continue with the Brookings Institution with my final
minutes.
This is from the Brookings Institution: ``Efforts by Black Americans
to build wealth can be traced back throughout American history. But
these efforts have been impeded in a host of ways, beginning with 246
years of chattel slavery and followed by congressional mismanagement .
. . `'
Let me repeat that: by congressional mismanagement.
`` . . . of the Freedmans Savings Bank, which left 61,144 depositors
with losses of nearly $3 million in 1874, the violent massacre
decimating Tulsa's Greenwood District in 1921, a population of 10,000
that thrived as the epicenter of African-American business and culture,
commonly referred to as Black Wall Street, and discriminatory policies
throughout the 20th century including the Jim Crow Eras `Black Codes'
strictly limiting opportunity in many Southern States . . . . `'
Mr. Speaker, today has been the best evidence we need of why
invidious discrimination exists in this country, because there are
people across the aisle who will tolerate it and who will come to this
floor and talk about Americans as though you have to be White to be an
American, as though people of color don't count, as though the LGBTQ-
plus community doesn't count, and that women don't count. To them, Mr.
Speaker, if you are a White man, you are an American.
But what about the rest of the people in this country who suffer?
Mr. Speaker, it is a sad day to hear my colleagues across the aisle
speak of reckless spending when people were suffering.
I thank God that we have the courage to help people in a time of
need. If I could do it again, I would do it because I saw the
suffering. Perhaps they don't see the suffering that I see. But I saw
it, and I was prepared to do something about it.
I believe that in the final analysis, those who refuse to tolerate
the kind of invidious discrimination that we suffer each day in this
country, they will be vindicated. They will be vindicated.
I am grateful for the time, Mr. Speaker, and I yield back the balance
of my time.
Mr. CICILLINE. Mr. Speaker, this Pride Month we need to both
celebrate the LGBTQI+ community and take action to further LGBTQI+
equality. A vote for today's bill is a vote to do just that.
The Financial Services Racial Equity, Inclusion, and Economic Justice
Act includes a portion of my bill--the Equality Act--to explicitly
prohibit discrimination on the basis of sexual orientation and gender
identity in credit.
I urge my colleagues to support this bill and my amendment to
explicitly clarify that all forms of sex discrimination are prohibited
by the Equal Credit Opportunity Act. Importantly, my amendment makes
clear that discrimination on the basis of sex stereotypes, pregnancy,
childbirth, sexual orientation, gender identity, and sex
characteristics, including intersex traits, are all forms of unlawful
sex discrimination under the Equal Credit Opportunity Act.
No one should be denied access to credit because of who they are or
who they love. Yet, 7.7 million LGBT adults 18 and older live in states
without statutes explicitly prohibiting LGBT discrimination in credit.
A vote for today's bill and my amendment will ensure long-lasting
explicit nondiscrimination protections for the LGBTQI+ community and
others in credit.
I thank Chairwoman Waters for introducing this bill and ensuring it
is inclusive of the LGBTQI+ community. I urge my colleagues to
[[Page H5575]]
stand with the LGBTQI+ community this Pride Month and vote for my
amendment and the underlying bill.
Ms. JOHNSON of Texas. Mr. Speaker, I rise today in strong support of
H.R. 2543, the Financial Services Racial Equity, Inclusion, and
Economic Justice Act.
The Financial Services Racial Equity, Inclusion, and Economic Justice
Act would direct the Federal Reserve to provide reports on racial and
ethnic disparities in employment, income, wealth, and access to
affordable credit. It also includes provisions that would establish
language access requirements for creditors and servicers to better
serve borrowers with limited English proficiency, allow all federal
credit unions to expand their membership to include underserved
communities, and clarify that financial institutions be required to
collect their self-identified sexual orientation and gender identity
information to help combat discriminatory practices against lesbian,
gay, bisexual, transgender and queer (LGBTQ+) business owners. This
bill also includes an amendment that I authored with my colleague from
Rhode Island, Congressman Jim Langevin, to require disparities for
individuals with disabilities to be published in the Federal Reserve's
reports.
Let me share a brief example of why this legislation is necessary.
Last year, a local news agency led an investigation in my district that
revealed a long and tragic pattern of discriminatory lending practices
in South Dallas. It became apparent that several banks refused to give
home loans to residents in low-income areas, in direct contradiction to
federal laws protecting borrowers regardless of race or economic
status. This is a failure of both policy and oversight, and is the
exact type of issue that this bill would require the Federal Reserve to
address.
I want to thank Chairwoman Waters and the members of the Financial
Services Committee for bringing the Financial Services Racial Equity,
Inclusion, and Economic Justice Act to the floor. I also want to thank
the Chairwoman for joining my roundtable on the discriminatory lending
practices in South Dallas last year. These stories are not unique to my
district--they are found in communities across the country. That's why
we need a federal approach, and I urge all my colleagues to join me in
supporting this bill.
{time} 1330
The SPEAKER pro tempore. All time for debate has expired.
Each further amendment printed in part B of House report 117-366 not
earlier considered as part of amendments en bloc pursuant to section 3
of House Resolution 1170 shall be considered only in the order printed
in the report, may be offered only by a Member designated in the
report, shall be considered as read, shall be debatable for the time
specified in the report equally divided and controlled by the proponent
and an opponent, may be withdrawn by the proponent at any time before
the question is put thereon, shall not be subject to amendment, and
shall not be subject to a demand for division of the question.
It shall be in order at any time after debate for the chair of the
Committee on Financial Services or her designee to offer amendments en
bloc consisting of further amendments printed in part B of House Report
117-366, not earlier disposed of. Amendments en bloc shall be
considered as read, shall be debatable for 20 minutes equally divided
and controlled by the chair and ranking minority member of the
Committee on Financial Services or their respective designees, shall
not be subject to amendment, and shall not be subject to a demand for
division of the question.
Amendments En Bloc No. 1 Offered by Mr. Green of Texas
Mr. GREEN of Texas. Mr. Speaker, pursuant to section 3 of House
Resolution 1170, I offer amendments en bloc No. 1.
The SPEAKER pro tempore. The Clerk will designate the amendments en
bloc.
Amendments en bloc No. 1 consisting of amendment Nos. 1, 2, 3, 4, 5, 7,
8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22, 23, 25, 26, and 27,
printed in part B of House Report 117-366, offered by Mr. Green of
Texas:
amendment no. 1 offered by mr. bowman of new york
Page 43, after line 4, insert the following:
(3) Promoting fair housing and collective ownership
opportunities.--
(A) Initial report.--Not later than 18 months after the
date of the enactment of this subsection, the Secretary of
Treasury, jointly with the Secretary of Housing and Urban
Development, shall issue a report to the covered agencies and
the Congress examining different ways financial institutions,
including community development financial institutions, can
affirmatively further fair housing and be encouraged and
incentivized to carry out activities that expand long-term
wealth-building opportunities within low-income and minority
communities that support collective ownership opportunities,
including through investments in worker cooperatives,
consumer cooperatives, community land trusts, not-for-profit-
led shared equity homeownership, and limited-equity
cooperatives, and to provide recommendations to the covered
agencies and the Congress in the furtherance of these
objectives.
(B) Progress updates.--Beginning not later than three years
after the date of the enactment of this subsection, and every
five years thereafter, the Secretary of the Treasury and the
Secretary of Housing and Urban Development shall, after
receiving the necessary updates from the covered agencies,
issue a report examining the progress made on implementing
relevant recommendations, and providing any additional
recommendations to the covered agencies and the Congress in
furtherance of the objectives under subparagraph (A).
(C) Covered agencies.--For purposes of this subsection, the
term ``covered agencies'' means the Community Development
Financial Institutions Fund, the Department of Housing and
Urban Development. the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation,
the Office of the Comptroller of the Currency, the National
Credit Union Administration, and the Federal Housing Finance
Agency.
Page 43, line 5, strike ``(3)'' and insert ``(4)''.
amendment no. 2 offered by mrs. beatty of ohio
Add at the end the following:
TITLE VI--ENSURING DIVERSE LEADERSHIP OF THE FEDERAL RESERVE
SEC. 601. SHORT TITLE.
This title may be cited as the ``Ensuring Diverse
Leadership Act of 2022''.
SEC. 602. CONGRESSIONAL FINDINGS.
The Congress finds that--
(1) while significant progress has occurred due to the
antidiscrimination amendments to the Federal Reserve Act,
barriers continue to pose significant obstacles for
candidates reflective of gender diversity and racial or
ethnic diversity for Federal Reserve bank president positions
in the Federal Reserve System;
(2) the continuing barriers described in paragraph (1)
merit the following amendment;
(3) Congress has received and reviewed testimony and
documentation of the historical lack of gender, racial, and
ethnic diversity from numerous sources, including
congressional hearings, scientific reports, reports issued by
public and private agencies, news stories, and reports of
related barriers by organizations and individuals, which show
that
race-, ethnicity-, and gender-neutral efforts alone are
insufficient to address the problem;
(4) the testimony and documentation described in paragraph
(3) demonstrate that barriers across the United States prove
problematic for full and fair participation in developing
monetary policy by individuals reflective of gender diversity
and racial or ethnic diversity; and
(5) the testimony and documentation described in paragraph
(3) provide a strong basis that there is a compelling need
for the below amendment to address the historical lack of
gender, racial, and ethnic diversity in the Federal Reserve
regional bank presidents selection process in the Federal
Reserve System.
SEC. 603. FEDERAL RESERVE BANK PRESIDENTS.
(a) In General.--The provision designated ``fifth'' of the
fourth undesignated paragraph of section 4 of the Federal
Reserve Act (12 U.S.C. 341) is amended by inserting after
``employees.'' the following: ``In making the appointment of
a president, the bank shall interview at least one individual
reflective of gender diversity and one individual reflective
of racial or ethnic diversity.''.
(b) Report.--Not later than January 1 of each year, each
Federal reserve bank shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate, the
Committee on Financial Services of the House of
Representatives, and the Office of Inspector General for the
Board of Governors of the Federal Reserve System and the
Bureau of Consumer Financial Protection a report describing
the applicant pool demographic for the position of the
president of the Federal reserve bank for the preceding
fiscal year, if applicable.
SEC. 604. TECHNICAL ADJUSTMENTS.
(a) American Competitiveness and Workforce Improvement Act
of 1998.--Section 418(b) of the American Competitiveness and
Workforce Improvement Act of 1998 (8 U.S.C. 1184 note) is
amended by striking ``Chairman of the Board of Governors''
and inserting ``Chair of the Board of Governors''.
(b) Bretton Woods Agreements Act.--The Bretton Woods
Agreements Act (22 U.S.C. 286 et seq.) is amended--
(1) in section 4(a), by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of
Governors''; and
(2) in section 45(a)(1), by striking ``chairman of the
board of Governors'' and inserting ``Chair of the Board of
Governors''.
(c) Dodd-Frank Wall Street Reform and Consumer Protection
Act.--The Dodd-Frank Wall Street Reform and Consumer
[[Page H5576]]
Protection Act (12 U.S.C. 5301 et seq.) is amended by
striking ``Chairman of the Board'' each place such term
appears and inserting ``Chair of the Board''.
(d) Emergency Economic Stabilization Act of 2008.--The
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201
et seq.) is amended by striking ``Chairman of the Board''
each place such term appears and inserting ``Chair of the
Board''.
(e) Emergency Loan Guarantee Act.--Section 2 of the
Emergency Loan Guarantee Act (15 U.S.C. 1841) is amended by
striking ``Chairman of the Board of Governors'' and inserting
``Chair of the Board of Governors''.
(f) Emergency Steel Loan Guarantee and Emergency Oil and
Gas Guaranteed Loan Act of 1999.--The Emergency Steel Loan
Guarantee and Emergency Oil and Gas Guaranteed Loan Act of
1999 (15 U.S.C. 1841 note) is amended--
(1) in section 101(e)(2)--
(A) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(B) by striking ``Chairman,'' and inserting ``Chair,''; and
(2) in section 201(d)(2)(B)--
(A) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(B) by striking ``Chairman,'' and inserting ``Chair,''.
(g) Farm Credit Act of 1971.--Section 4.9(d)(1)(C) of the
Farm Credit Act of 1971 (12 U.S.C. 2160(d)(1)(C)) is amended
by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''.
(h) Federal Deposit Insurance Act.--The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(1) in section 7(a)(3), by striking ``Chairman of the Board
of Governors'' and inserting ``Chair of the Board of
Governors''; and
(2) in section 10(k)(5)(B)(ii), by striking ``Chairman of
the Board of Governors'' and inserting ``Chair of the Board
of Governors''.
(i) Federal Reserve Act.--The Federal Reserve Act (12
U.S.C. 226 et seq.) is amended--
(1) by striking ``chairman'' each place such term appears
and inserting ``chair'';
(2) by striking ``Chairman'' each place such term appears
other than in section 11(r)(2)(B) and inserting ``Chair'';
(3) in section 2, in the sixth undesignated paragraph--
(A) in the second sentence, by striking ``his'' and
inserting ``the Comptroller of the Currency's''; and
(B) in the third sentence, by striking ``his'' and
inserting ``the director's'';
(4) in section 4--
(A) in the third undesignated paragraph, by striking ``his
office'' and inserting ``the Office of the Comptroller of the
Currency'';
(B) in the fourth undesignated paragraph, in the provision
designated ``fifth'', by striking ``his'' and inserting ``the
person's'';
(C) in the eighth undesignated paragraph, by striking
``his'' and inserting ``the chair's'';
(D) in the seventeenth undesignated paragraph--
(i) by striking ``his'' and inserting ``the officer's'';
and
(ii) by striking ``he'' and inserting ``the individual'';
(E) in the twentieth undesignated paragraph--
(i) by striking ``He'' each place such term appears and
inserting ``The chair'';
(ii) in the third sentence--
(I) by striking ``his'' and inserting ``the''; and
(II) by striking ``he'' and inserting a comma; and
(iii) in the fifth sentence, by striking ``he'' and
inserting ``the chair''; and
(F) in the twenty-first undesignated paragraph, by striking
``his'' each place such term appears and inserting ``the
agent's'';
(5) in section 6, in the second undesignated paragraph, by
striking ``he'' and inserting ``the Comptroller of the
Currency'';
(6) in section 9A(c)(2)(C), by striking ``he'' and
inserting ``the participant'';
(7) in section 10--
(A) by striking ``he'' each place such term appears and
inserting ``the member'';
(B) in the second undesignated paragraph, by striking
``his'' and inserting ``the member's''; and
(C) in the fourth undesignated paragraph--
(i) in the second sentence, by striking ``his'' and
inserting ``the chair's'';
(ii) in the fifth sentence, by striking ``his'' and
inserting ``the member's''; and
(iii) in the sixth sentence, by striking ``his'' and
inserting ``the member's'';
(8) in section 12, by striking ``his'' and inserting ``the
member's'';
(9) in section 13, in the tenth undesignated paragraph, by
striking ``his'' and inserting ``the assured's'';
(10) in section 16--
(A) by striking ``he'' each place such term appears and
inserting ``the agent'';
(B) in the seventh undesignated paragraph--
(i) by striking ``his'' and inserting ``the agent's''; and
(ii) by striking ``himself'' and inserting ``the agent'';
(C) in the tenth undesignated paragraph, by striking
``his'' and inserting ``the Secretary's''; and
(D) in the fifteenth undesignated paragraph, by striking
``his'' and inserting ``the agent's'';
(11) in section 18, in the eighth undesignated paragraph,
by striking ``he'' and inserting ``the Secretary of the
Treasury'';
(12) in section 22--
(A) in subsection (f), by striking ``his'' and inserting
``the director's or officer's''; and
(B) in subsection (g)--
(i) in paragraph (1)(D)--
(I) by striking ``him'' and inserting ``the officer''; and
(II) by striking ``he'' and inserting ``the officer''; and
(ii) in paragraph (2)(A), by striking ``him as his'' and
inserting ``the officer as the officer's''; and
(13) in section 25A--
(A) in the twelfth undesignated paragraph--
(i) by striking ``he'' each place such term appears and
inserting ``the member''; and
(ii) by striking ``his'' and inserting ``the member's'';
(B) in the fourteenth undesignated paragraph, by striking
``his'' and inserting ``the director's or officer's''; and
(C) in the twenty-second undesignated paragraph, by
striking ``his'' each place such term appears and inserting
``such individual's''.
(j) Federal Reserve Reform Act of 1977.--Section 204(b) of
the Federal Reserve Reform Act of 1977 (12 U.S.C. 242 note)
is amended by striking ``Chairman or Vice Chairman of the
Board of Governors'' and inserting ``Chair or Vice Chair of
the Board of Governors''.
(k) Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.--The Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 is amended--
(1) in section 308 (12 U.S.C. 1463 note)--
(A) in subsection (a), by striking ``Chairman of the Board
of Governors'' and inserting ``Chair of the Board of
Governors''; and
(B) in subsection (c), by striking ``Chairman of the Board
of Governors'' and inserting ``Chair of the Board of
Governors'';
(2) in section 1001(a) (12 U.S.C. 1811 note), by striking
``Chairman of the Board of Governors'' and inserting ``Chair
of the Board of Governors''; and
(3) in section 1205(b)(1)(A) (12 U.S.C. 1818 note)--
(A) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(B) by striking ``Chairman's'' and inserting ``Chair's''.
(l) Food, Conservation, and Energy Act of 2008.--Section
13106(a) of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 2 note) is amended by striking ``Chairman of the Board
of Governors'' and inserting ``Chair of the Board of
Governors''.
(m) Housing and Community Development Act of 1992.--Section
1313(a)(3) of the Housing and Community Development Act of
1992 (12 U.S.C. 4513(a)(3)) is amended--
(1) in the heading, by striking ``chairman'' and inserting
``chair'';
(2) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(3) by striking ``Chairman regarding'' and inserting
``Chair regarding''.
(n) Inspector General Act of 1978.--Section 8G of the
Inspector General Act of 1978 is amended by striking
``Chairman of the Board of Governors'' each place such term
appears and inserting ``Chair of the Board of Governors''.
(o) International Lending Supervision Act of 1983.--Section
908(b)(3)(C) of the International Lending Supervision Act of
1983 (12 U.S.C. 3907(b)(3)(C)) is amended by striking
``Chairman of the Board of Governors'' and inserting ``Chair
of the Board of Governors''.
(p) Neighborhood Reinvestment Corporation Act.--Section
604(a)(3) of the Neighborhood Reinvestment Corporation Act
(42 U.S.C. 8103(a)(3)) is amended by striking ``Chairman''
each place it appears and inserting ``Chair''.
(q) Public Law 93-495.--Section 202(a)(1) of Public Law 93-
495 (12 U.S.C. 2402(a)(1)) is amended--
(1) by striking ``Chairman of the Board of Governors'' and
inserting ``Chair of the Board of Governors''; and
(2) by striking ``his'' and inserting ``the Chair's''.
(r) Sarbanes-Oxley Act of 2002.--Section 101(e)(4)(A) of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211(e)(4)(A)) is
amended by striking ``Chairman of the Board of Governors''
and inserting ``Chair of the Board of Governors''.
(s) Securities Exchange Act of 1934.--Section 17A(f)(4)(C)
of the Securities Exchange Act of 1934 (15 U.S.C. 78q-
1(f)(4)(C)) is amended by striking ``Chairman of the Board of
Governors'' and inserting ``Chair of the Board of
Governors''.
(t) Title 31.--Title 31, United States Code, is amended--
(1) in section 1344(b)(7), by striking ``Chairman of the
Board of Governors'' and inserting ``Chair of the Board of
Governors''; and
(2) in section 5318A, by striking ``Chairman of the Board
of Governors'' each place such term appears and inserting
``Chair of the Board of Governors''.
(u) Trade Act of 1974.--Section 163(b)(3) of the Trade Act
of 1974 (19 U.S.C. 2213(b)(3)) is amended by striking
``Chairman of the Board of Governors'' and inserting ``Chair
of the Board of Governors''.
(v) Deeming of Name.--Any reference in a law, regulation,
document, paper, or other record of the United States to the
Chairman of the Board of Governors of the Federal Reserve
System shall be deemed to be a reference to the Chair of the
Board of Governors of the Federal Reserve System.
[[Page H5577]]
amendment no. 3 offered by ms. brown of ohio
Page 5, line 25, after ``gender,'' insert ``individuals
with dependent children under the age of 18 (to the extent
possible),''.
amendment no. 4 offered by ms. bush of missouri
Page 5, line 25, after ``gender,'' insert ``age,''.
Page 5, line 25, insert before the first period the
following: ``, and shall also provide cross-sectional data on
the interaction between these groups and note any
statistically significant findings, to the extent
available''.
amendment no. 5 offeed by mr. cicilline of rhode island
Page 29, after line 4, insert the following:
(c) ECOA Definitions.--Section 702 of the Equal Credit
Opportunity Act (15 U.S.C. 1691a), as amended by subsection
(b), is further amended by adding at the end the following:
``(h) The term `gender identity' means the gender-related
identity, appearance, mannerisms, or other gender-related
characteristics of an individual, regardless of the
individual's designated sex at birth.
``(i) The term `sex' includes--
``(1) a sex stereotype;
``(2) pregnancy, childbirth, or a related medical
condition;
``(3) sexual orientation or gender identity; and
``(4) sex characteristics, including intersex traits.
``(j) The term `sexual orientation' means homosexuality,
heterosexuality, or bisexuality.
``(k) The term `race', `color', `religion', `national
origin', `sex' (including `sexual orientation' and `gender
identity'), `marital status', or `age', used with respect to
an individual, includes--
``(1) the race, color, religion, national origin, sex
(including sexual orientation and gender identity), marital
status, or age, respectively, of another person with whom the
individual is associated or has been associated; and
``(2) a perception or belief, even if inaccurate,
concerning the race, color, religion, national origin, sex
(including sexual orientation and gender identity), marital
status, or age, respectively, of the individual.''.
(d) Rules of Construction.--Section 701 of the Equal Credit
Opportunity Act (15 U.S.C. 1691) is amended by adding at the
end the following:
``(f) Rules of Construction.--
``(1) Claims and remedies not precluded.--Nothing in this
title shall be construed to limit the claims or remedies
available to any individual for an unlawful practice on the
basis of race, color, religion, sex (including sexual
orientation and gender identity), or national origin,
including claims brought pursuant to section 1979 or 1980 of
the Revised Statutes (42 U.S.C. 1983, 1985) or any other law,
including a Federal law, regulation, or policy.
``(2) No negative inference.--Nothing in this title shall
be construed to support any inference that any Federal law
prohibiting a practice on the basis of sex does not prohibit
discrimination on the basis of pregnancy, childbirth, or a
related medical condition, sexual orientation, gender
identity, or a sex stereotype.''.
amendment no. 7 offered by mr. desaulnier of california
Page 32, line 4, after ``identity,'' insert ``disability
status, veteran status,''.
amendment no. 8 offered by mr. desaulnier of california
Page 47, line 23, strike ``and''.
Page 48, line 3, strike ``or'' and insert ``; and''.
Page 48, after line 3, insert the following:
``(VI) reduce the unbanked and underbanked population;
or''.
amendment no. 9 offered by ms. garcia of texas
Add at the end the following:
TITLE VI--STUDYING BARRIERS TO HOUSING
SEC. 601. SHORT TITLE.
This title may be cited as the ``Studying Barriers to
Housing Act''.
SEC. 602. GAO STUDY AND REPORT ON REDUCING HOMELESSNESS
THROUGH PUBLIC HOUSING AND SECTION 8 RENTAL
ASSISTANCE.
(a) Study.--The Comptroller General of the United States
shall conduct a study to identify any barriers that limit the
ability of a public housing agency in attempting to provide
housing assistance under the Public Housing and Housing
Choice Voucher programs under title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) for populations
experiencing homelessness, which shall include--
(1) identification of any laws, regulations, and any other
notices or guidance pertaining to--
(A) waiting lists, documentation requirements, or tenant
screening that effect the ability of a public housing agency
to accept persons and families experiencing homelessness into
the public housing or voucher program; and
(B) funding formulas and performance measures that may
penalize public housing agencies trying to serve persons and
families experiencing homelessness;
(2) analyzing and determining the effect of the limitation
under section 8(o)(13)(B) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(13)(B); relating to the maximum
amount of housing voucher assistance that a public housing
agency may use for project-based assistance) has on the
ability of public housing agencies to serve persons and
families experiencing homelessness; and
(3) identification of barriers to fair housing and the
coordination of Federal housing assistance and homelessness
funds, including outreach and marketing of such funds, to
affirmatively further fair housing for protected classes
under the Fair Housing Act of 1968 (42 U.S.C. 3601 et seq.)
that are disproportionately experiencing homelessness.
(b) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act,
the Comptroller General shall submit a report to the Congress
describing the study conducted pursuant to subsection (a) and
setting forth the results and conclusions of the study.
amendment no. 11 offered by ms. houlahan of pennsylvania
Page 50, line 18, insert before the period the following:
``, with a focus on supporting young women entrepreneurs,
entrepreneurs who are Black, Hispanic, Asian or Pacific
Islander, and Native American or Native Alaskan and other
historically underrepresented groups or first time business
owners''.
amendment no. 12 offered by ms. houlahan of pennsylvania
Page 103, line 22, strike ``and''.
Page 103, line 25, strike the first period and all that
follows and insert ``; and''.
Page 103, after line 25, insert the following:
``(D) a description of the types of financial education
programs made available to members of the credit union,
including those who are members by reason of the application
and those in rural areas, where applicable.''.
amendment no. 13 offered by ms. jackson lee of texas
Page 4, line 12, strike ``Section'' and insert the
following:
(a) Section
Page 5, after line 25, insert the following:
(b) The Board of Governors of the Federal Reserve System,
in consultation with the Federal Deposit Insurance
Corporation, the Office of the Comptroller of the Currency,
the National Credit Union Administration, and the Bureau of
Consumer Financial Protection, shall issue a report to
Congress containing the plans, activities, and actions of the
Board of Governors of the Federal Reserve System to minimize
and eliminate disparities across racial and ethnic groups
with respect to access to financial products for the purpose
of restoration, renovations, or repair following a federally-
declared disaster.
amendment no. 14 offered by ms. jayapal of washington
Page 5, line 21, strike ``include a comparison'' and insert
``include--
``(i) a comparison''.
Page 5, line 25, strike the first period and all that
follows and insert ``; and
``(ii) data disaggregated by ethnic subgroup, to the extent
available.''.
amendment no. 15 offered by ms. johnson of texas
Page 5, line 25, after ``gender,'' insert ``disability (as
such term is defined in section 3 of the Americans with
Disabilities Act of 1990),''.
amendment no. 16 offered by ms. kuster of new hampshire
Page 20, after line 21, insert the following (and
redesignate subsequent subsections and conform cross-
references accordingly):
(e) Community Financial Institutions Report.--Not later
than 2 years after the date of the enactment of this Act, the
Comptroller General of the United States shall study and
report to Congress on the effects of the implementation of
this section and the amendments made by this section on
insured depository institutions with less than
$10,000,000,000 in total assets, and the communities they
serve, along with any regulatory or legislative
recommendations to advance the purposes of this section.
amendment no. 17 offered by mrs. lawrence of michigan
Page 36, line 19, insert before the semicolon the
following: ``, including breakdowns by each State (including
the District of Columbia and each territory of the United
States) and Tribal government entity''.
Page 51, line 17, insert before the period the following:
``, including breakdowns by each State (including the
District of Columbia and each territory of the United
States), Tribal government entity, and congressional
district''.
Page 53, line 17, insert before the semicolon the
following: ``, including overall impact breakdowns by each
State (including the District of Columbia and each territory
of the United States) and Tribal government entity''.
Page 67, line 21, insert before the period the following:
``, including breakdowns by each State (including the
District of Columbia and each territory of the United
States), Tribal government entity, and congressional
district''.
Page 70, line 3, insert before the period the following:
``, including breakdowns by each State (including the
District of Columbia and each territory of the United
States), Tribal government entity, and congressional
district''.
Page 92, line 22, insert before the period the following:
``, including breakdowns by
[[Page H5578]]
each State (including the District of Columbia and each
territory of the United States) and Tribal government
entity''.
Page 98, line 22, insert before the semicolon the
following: ``, including breakdowns by each State (including
the District of Columbia and each territory of the United
States), Tribal government entity, and congressional
district''.
Page 103, line 18, insert before the period the following:
``, including breakdowns by each State (including the
District of Columbia and each territory of the United
States), Tribal government entity, and congressional
district''.
amendment no. 18 offered by mrs. lee of nevada
Add at the end the following:
TITLE VI--STATE OF HOUSING IN THE UNITED STATES
SEC. 601. INTERAGENCY WORKING GROUP REPORTS.
There is established an interagency working group
consisting of the Secretary of the Treasury, the Secretary of
Housing and Urban Development, and the Director of the
Federal Housing Finance Agency, which shall produce two
reports, in consultation with the Attorney General, the
Secretary of Agriculture, the Secretary of Veterans Affairs,
the Secretary of Transportation, and the Executive Director
of the United States Interagency Council on Homelessness,
each year detailing the state of housing in the United
States, including recommendations related to housing
fairness, affordability. and supply.
SEC. 602. TESTIMONY ON THE STATE OF HOUSING AFFORDABILITY AND
SUPPLY.
After each report is produced under section 601, each
member of the interagency working group described under
section 601 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 to testify
on the contents of such report.
amendment no. 20 offered by ms. pressley of massachusetts
Page 67, after line 2, insert the following:
``(D) The disability status, based on voluntary self-
identification, of any member of the board of directors of
the issuer, any nominee for the board of directors of the
issuer, or any executive officer of the issuer.''.
amendment no. 21 offered by ms. pressley of massachusetts
Page 9, line 21, after ``orally'' insert ``, in American
Sign Language,''.
Page 11, line 4, after ``orally'' insert ``, in American
Sign Language,''.
Page 11, after line 20, insert the following:
``(C) American sign language interpretation services.--If a
creditor is required under subparagraph (A) to provide oral
interpretation services to a consumer, and if such consumer
has indicated a preference for American Sign Language, such
creditor shall ensure qualified American Sign Language
interpretation services, as defined by the Director of the
Bureau, are made available to the consumer for all oral
communications between such creditor and the consumer, where
such American Sign Language interpretation services may be
provided by qualified staff of the creditor or a qualified
third party.''.
Page 11, line 24, after ``orally'' insert ``, in American
Sign Language,''.
amendment no. 22 offered by ms. pressley of massachusetts
Page 27, line 1, strike ``or''.
Page 27, line 2, insert before the semicolon the following:
``, or disability (as such term is defined in section 3 of
the Americans with Disabilities Act of 1990)''.
amendment no. 23 offered by mr. david scott of georgia
Page 69, line 6, insert ``, and diversity with respect to
individuals self-identifying as lesbian, gay, bisexual,
transgender, or queer,'' after ``diversity''.
Page 69, line 18, insert ``, and diversity with respect to
individuals self-identifying as lesbian, gay, bisexual,
transgender, or queer,'' after ``diversity''.
Page 70, line 2, insert ``, and the status of diversity
with respect to individuals self-identifying as lesbian, gay,
bisexual, transgender, or queer,'' after ``diversity''.
amendment no. 25 offered by ms. tlaib of michigan
Page 5 beginning on line 23, strike ``(White, African-
American, Latino, Native American, and Asian populations),''.
Page 5, after line 25, insert the following:
``(C) Ethnic subgroup defined.--The term `ethnic subgroup'
means a social group that--
``(i) has a distinct social, racial, geographic, national
origin, or cultural identity; and
``(ii) is susceptible to being disadvantaged.''.
amendment no. 26 offered by mr. torres of new york
Add at the end the following:
TITLE VI--REPORT ON HOUSING FOR LGBTQ+ PERSONS
SEC. 601. HUD REPORT.
Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a
report to the Congress describing all efforts and activities
of the Department of Housing and Urban Development, recently
taken, ongoing, or planned, to provide or facilitate access
to affordable permanent and temporary housing for persons who
identify as lesbian, gay, bisexual, transgender, questioning/
queer, or another identity other than heterosexual, including
such person who are youth, elderly, and homeless.
amendment no. 27 offered by ms. williams of georgia
Add at the end the following:
TITLE VI--``EXPANDING ACCESS TO CREDIT THROUGH CONSUMER-PERMISSIONED
DATA''
SEC. 601. SHORT TITLE.
This title may be cited as the ``Expanding Access to Credit
through Consumer-Permissioned Data Act''.
SEC. 602. FINDINGS.
The Congress finds the following:
(1) Using alternative data in mortgage lending (either
through alternative credit scores or in underwriting) has the
potential to increase access to credit for individuals with
little or no credit history with the national credit
reporting agencies (NCRAs), according to a review of
alternative data use in mortgage lending by the Government
Accountability Office in December 2021.
(2) Approximately 45 million consumers do not have any
credit history with the NCRAs or did not have enough credit
history to be scored, according to a 2015 report by the
Bureau of Consumer Financial Protection (CFPB), entitled
``Data Point: Credit Invisibles''. The CFPB also reported
that this population disproportionately included low-income
consumers, younger consumers, and consumers of color.
(3) The use of alternative data to establish a low- or
moderate-income borrower's credit history for the purpose of
extending mortgage credit can help lenders meet goals of the
Community Reinvestment Act.
(4) Mortgage underwriting systems that allow lenders to use
consumer-permissioned alternative credit information may help
expand access to mortgages for borrowers with lower credit
scores and communities of color. On September 21, 2021,
Fannie Mae updated its automated underwriting system so that
it notifies lenders that a borrower may benefit from the
inclusion of consistent rental payment information, and with
the consumer's permission, the underwriting system will
automatically identify rental payments within bank statement
data and include this in its credit assessment. According to
a fair lending and credit risk analysis by Fannie Mae and the
Federal Housing Finance Agency, the populations most likely
to benefit from this change are applicants with lower credit
scores, who are disproportionately consumers of color.
SEC. 603. REQUIREMENT TO CONSIDER ADDITIONAL CREDIT
INFORMATION WHEN MAKING MORTGAGE LOANS.
(a) In General.--The Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.) is amended by inserting after section
701 the following:
``Sec. 701A. Requirement to consider additional credit
information when making mortgage loans
``(a) In General.--A creditor extending a mortgage loan
shall, in evaluating the creditworthiness of an applicant,
consider credit information not reported through a consumer
reporting agency, if--
``(1) the applicant--
``(A) requests such consideration, and has not retracted
such request;
``(B) provides the credit information to be considered; and
``(C) states that the applicant does not believe that
credit information reported through consumer reporting
agencies fully or accurately reflects the applicant's
creditworthiness in the absence of such information; and
``(2) the credit information relates to the types of
information that the creditor would consider if otherwise
reported and includes current payment and transaction
information, such as bank statement information or rental
payment information.
``(b) Treatment of Additional Information.--A creditor
shall treat any information provided pursuant to subsection
(a) in the same manner and with the same weight as the
creditor would treat the same information if it were provided
by a consumer reporting agency, unless the creditor
reasonably determines that the information is the result of a
material misrepresentation.
``(c) Notice to Applicants.--
``(1) In general.--A creditor described under subsection
(a) shall provide each applicant for a mortgage loan with a
notice that includes--
``(A) an explanation of the applicant's right under this
section to provide additional credit information to the
creditor for consideration, including examples of such
additional information, as well as the benefits of providing
such information;
``(B) the right of the creditor to disregard any such
information if the creditor determines that the information
is the result of a material misrepresentation; and
``(C) the right of an applicant to retract the applicant's
request to use such additional credit information at any
point in the application process.
``(2) Notice languages.--Notices required under paragraph
(1) shall be made available in each of the 8 languages most
commonly spoken by individuals with limited English
proficiency, as determined by the Director of the Bureau
using information published by the Director of the Bureau of
the Census.
[[Page H5579]]
``(3) Form language.--The Director of the Bureau shall
establish form language, which shall be used by each creditor
when providing the notices required under this subsection,
providing--
``(A) the examples described under paragraph (1)(A);
``(B) the description of the benefits described under
paragraph (1)(A); and
``(C) the non-English language versions of the notices
described under paragraph (2).
``(d) Consideration of Alternative Data; Treatment of
Underwriting Systems.--A creditor shall ensure that the
alternative data provided under the requirements of
subsection (a) shall be considered as part of the decisioning
process. Any creditor who develops or maintains an
underwriting system for mortgage loans shall ensure such
system complies with the requirements described under
subsection (a).
``(e) Consumer Reporting Agency Defined.--In this section,
the term `consumer reporting agency' has the meaning given
that term under section 603 of the Fair Credit Reporting
Act.''.
(b) Clerical Amendment.--The table of contents for the
Equal Credit Opportunity Act is amended by inserting after
the item relating to section 701 the following:
``701A. Requirement to consider additional credit information when
making mortgage loans.''.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, the
gentleman from Texas (Mr. Green) and the gentleman from North Carolina
(Mr. McHenry) each will control 10 minutes.
The Chair recognizes the gentleman from Texas.
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the 23 amendments offered in this en bloc are a terrific
example of a working legislative process, a process through which well-
considered legislation is further strengthened by the intellect,
experience, and values of the House Democratic Caucus.
These amendments broaden this package's commitment to equity by
ensuring that information is gathered regarding loans made to veterans,
people with disabilities, and the LGBTQ-plus community, which will help
reveal unfair or discriminatory practices against these communities.
We also have amendments that will ensure economic data are
disaggregated within racial and ethnic groups, in recognition of the
lived experiences across different communities.
The package is further bolstered by timely and necessary reporting
ensuring that communities of color and low-income communities have
access to wealth-building opportunities, including purchasing their
first home and accessing capital.
Furthermore, this package includes amendments that will help us to
better understand and address the country's growing affordable housing
and homelessness crises that have disproportionately affected people of
color.
For these reasons, I urge my colleagues to support these amendments
being considered en bloc.
Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I claim the time in opposition.
Mr. Speaker, I oppose the amendment en bloc. We know that Democrats'
reckless spending and bad economic policies are hurting the American
people.
Let's look at the inflation numbers. You have fuel oil, gasoline,
used cars, groceries, and public transit all dramatically up.
Inflation is the big issue. Inflation is at a 40-year high of 8.6
percent--a 40-year high. Food is up 10 percent, gas 50 percent, shelter
5.5 percent from just last year. This is a result of Democrat policies.
The American people will pay $5,200 more this year than last year for
the same goods and services. This is a direct result of bad economic
policies.
Instead of working with Republicans to address these crises,
Democrats are jamming through a partisan messaging bill that stands no
chance of becoming law. This is bad policy. It is bad politics, bad
process, the whole thing. The en bloc is more of the same.
Now, I will say that there are a few of the amendments that
Republicans could support. I will give you an example.
Ms. Garcia offered an amendment that focused on onerous HUD
regulations or unfair funding formulas. Committee Republicans and House
Republicans agree that HUD should not get in the way of local public
housing authorities' ability to provide assistance to the homeless.
A recent Government Accountability Office study examines--well, there
is a request in the bill that we have a study to examine and report on
the impediments that HUD is putting in place so that we can actually
better serve the very people that we intend for the Housing and Urban
Development Department to serve and for public housing authorities to
serve.
But rather than work with committee Republicans on this issue,
Democrats poisoned the well with partisan amendments to score political
wins with their progressive base.
For example, in this en bloc, Democrats want to further politicize
the Federal Reserve by adding a third mandate to address socioeconomic
issues. This will divert the Fed's attention from its dual mandate of
maximum sustainable employment and price stability. It will also
threaten the stability of the monetary policy authorities we have given
the Fed and add uncertainty and risk to the Fed's responsibilities.
The Federal Reserve is independent for a reason. It ensures that it
is accountable to the American people and long-term economic growth,
not to political whims or serving one party here in Washington. Even
President Biden acknowledged the importance of the Fed's independence
in his so-called plan for fighting inflation.
Additionally, this en bloc continues Democrats' government-knows-best
approach. For example, it directs HUD and Treasury to create another
interagency task force to focus on the state of housing in this
country. Housing doesn't need another task force. It needs results.
To be clear, HUD's mission is to ``create strong, sustainable,
inclusive communities and quality affordable homes for all.''
After 50 years, and nearly $2 trillion in spending, this amendment
says that HUD is not getting the job done. An additional interagency
task force isn't going to fix that.
Congress needs to reform how HUD operates so that it can assist the
families and individuals it is tasked with serving.
In conclusion, this en bloc is more of the same. It will politicize
the Fed, expand the CFPB's authority, and make credit harder to access
and more expensive, ultimately harming the very consumers Democrats are
claiming to help.
Mr. Speaker, I urge my colleagues to oppose this en bloc, and I urge
my colleagues to oppose the bill. I reserve the balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I yield myself 15 seconds.
Mr. Speaker, this is not another mandate. This is simply a
requirement that the Fed fulfill its two mandates, the dual mandates to
all of its people, to make sure that all people have price stability.
This is what it is about.
Mr. Speaker, I yield 1 minute to the gentlewoman from New York (Ms.
Velazquez).
Ms. VELAZQUEZ. Mr. Speaker, I rise in strong support of the en bloc
amendment.
The COVID-19 pandemic exacerbated the wealth and economic
inequalities faced by many individuals, families, and small business
owners in our Nation's LMI and communities of color.
As chair of the House Small Business Committee, I fought to ensure
our Nation's women-, LGBTQ-, and minority-owned small businesses had
access to Federal recovery programs and mainstream sources of credit to
the same degree as White-owned firms or those with preestablished
relationships with the big banks. Unfortunately, structural barriers
and historical inequities in our society continue to cause women and
small business owners of color to face ongoing challenges when applying
for affordable and timely credit.
This bill will help break down these structural barriers, root out
discrimination where it exists, and promote entrepreneurship and other
wealth-building opportunities for women, LGBTQ individuals, and people
of color. By addressing these disparities, we can create a more
resilient economy and one that works for everyone.
Mr. Speaker, I urge a ``yes'' vote on this bill.
Mr. McHENRY. Mr. Speaker, I reserve the balance of my time.
Mr. GREEN of Texas. Mr. Speaker, how much time do we have remaining?
[[Page H5580]]
The SPEAKER pro tempore. The gentleman from Texas has 7\1/4\ minutes
remaining. The gentleman from North Carolina has 6 minutes remaining.
Mr. GREEN of Texas. Mr. Speaker, I yield 1 minute to the gentlewoman
from Michigan (Ms. Tlaib).
Ms. TLAIB. Mr. Speaker, I thank our incredible Chairwoman Waters and
our committee staff for working with me on an amendment and, again, for
their leadership on the bill as a whole.
I am proud to represent Michigan's 13th Congressional District, a
community that is incredibly diverse. Our diversity, as we all know, is
our strength.
We also know, though, that the way our government currently tracks
race and ethnicity is outdated and definitely needs to change. Our
government currently considers all people of Middle Eastern and North
African descent to be ``White,'' a categorization that myself and many
in our community consider to be very inaccurate. Our government
currently has broad categories that lump together whole continents,
ignoring the vast diversity of our people living here.
So my amendment simply builds on Congresswoman Jayapal's amendment to
ensure that we are providing the maximum flexibility possible to
Americans so that they can accurately reflect their race and ethnicity
on government forms. This, in turn, will help us in Congress and our
government at large to better identify issues affecting specific
communities so that we can have programs that effectively serve our
diverse communities.
Mr. McHENRY. Mr. Speaker, I am prepared to close, and I reserve the
balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I yield 1 minute to the gentlewoman
from Massachusetts (Ms. Pressley).
Ms. PRESSLEY. Mr. Speaker, for too long, our policies and financial
systems have exacerbated inequities and disparities throughout our
country. I rise in support of our disabled neighbors who have been
subjected to a second-class standard of living.
By passing the Financial Services Racial Equity, Inclusion, and
Economic Justice Act, the House will move one step closer to addressing
these systemic injustices.
Today, I rise in support of a series of amendments I have offered to
advance disability justice. My amendments will prohibit financial
creditors from discriminating against consumers who are disabled and
increase access to interpretation services, including American Sign
Language.
My amendment will also hold corporations accountable to disclose the
disability status, based on voluntary self-identification, of their
board of directors and executive officers.
The status quo will not change until we recognize that disability
rights are human rights and call out and address the barriers the
disability community faces.
Mr. Speaker, I urge my colleagues to support my amendments and
support the underlying bill.
Mr. GREEN of Texas. Mr. Speaker, I yield 1 minute to the gentlewoman
from Ohio (Ms. Brown).
Ms. BROWN of Ohio. Mr. Speaker, I thank Congressman Green for
yielding. I thank Chairwoman Waters for her leadership on this bill.
For far too long, consumers and businesses in the underserved
communities have been blocked from accessing safe and affordable
capital and credit. These systemic barriers worsen racial and economic
inequality and cut off opportunity for too many Americans.
This critical bill recognizes these changes and supports efforts to
eliminate racial disparities in lending.
My amendment is simple. It requires the Federal Reserve's ``Monetary
Policy Report'' to include demographic information on individuals with
dependent children in its analysis of labor force trends.
Why is it important? Because while the unemployment rate is near
historic lows, women with children have been one of the slowest groups
to return to work. Solutions like the child tax credit and affordable
childcare would help working families better balance childcare
responsibilities and their careers. This amendment would ensure we have
the data to understand this problem and begin to address it.
I thank Chairwoman Waters, again, for her leadership.
Mr. Speaker, I urge my colleagues to support my amendment and the
underlying bill.
{time} 1345
Mr. GREEN of Texas. Mr. Speaker, I yield 1 minute to the gentlewoman
from Texas (Ms. Jackson Lee).
Ms. JACKSON LEE. Mr. Speaker, H.R. 2543 represents a seismic and
powerful response to racial discrimination in financial products. Thank
you to Chairwoman Waters, and to my colleague who is managing, for the
leadership given.
My amendment is very important. I am pleased that my amendment is
included in the en bloc amendment that the Financial Services Committee
has today.
It requires the Federal Reserve Board to submit a report to Congress
about the prevalence of racial discrimination in lending to victims of
a Federally declared disaster. I know it well.
This amendment merits the support of all of my colleagues because no
district is exempt from natural disasters. I am reminded of 2017, among
others, in my district where it was devastated by Hurricane Harvey over
an area of 41,500 square miles, 21 trillion gallons of rainfall, and
one-third of Houston underwater.
There was major discrimination against Black and Brown Houstonians
who sought loans or home loans or financing to pay for repairs. They
faced obstacles, delays, and outcomes that were different than their
neighbors.
Mr. Speaker, this endemic discrimination was seen in efforts to gain
assistance from the Small Business Administration.
Mr. Speaker, as an outspoken advocate for equity in this country's
economy, I rise in support of the Financial Services Racial Equity,
Inclusion, and Economic Justice Act.
This bill requires that financial services regulators and companies
establish procedures to ensure racial equity and eliminate racial
disparities in all aspects of their operations including employment,
income, wealth, and access to affordable credit.
In addition to the reforms in H.R. 2543, the bill requires regulators
to provide reports to Congress about economic inequality, especially
within the labor force, and enact plans to minimize said inequalities.
America's economy has only rarely worked to the advantage of working-
class people. Worse still, there has been an endemic and vile trend of
implicit and perhaps explicit discrimination against people of color
within policies and overall economic policy.
However, unfair monetary policy is not just an anachronism from long
ago or a relic from a different era. It is happening now.
Recent analyses have found that algorithms used by lenders often are
designed in such a way that they result in black and brown Americans
being charged higher interest rates.
This legislation takes a major step toward fixing long-overdue--
disparities and fundamentally changing the financial services industry
to make it proactive in fighting economic discrimination.
I am also very pleased that my amendment is included in the En Bloc
Amendment that the Financial Services committee is bringing before the
House today.
My amendment requires the Federal Reserve Board to submit a report to
Congress about the prevalence of racial discrimination in lending to
victims of a federally declared disaster.
This amendment merits the support of all of my colleagues because no
district is exempt from natural disasters, and with the acceleration of
climate change, it is increasingly likely that these events will occur
even in areas of the country that previously felt insulated from them.
When disasters occur, our Nation has a moral and legal duty to
facilitate their recovery and rebuilding. It is totally unacceptable
and abhorrent for racial or ethnic discrimination to be injected into
decisions on financial factors impacting remedial action.
However, in some instances, discrimination--whether by intent or
effect--has occurred during these moments of greatest need.
For example, in 2017, my district in Houston was one of the many in
Texas devastated by Hurricane Harvey. Over an area of 41,500 square
miles spanning Texas and Louisiana, the storm dropped nearly 21
trillion gallons of rainfall and damaged 203,000 homes, of which 12,700
were destroyed.
At its peak on September 1, 2017, one third of Houston was
underwater, and over 300,000 structures of all types were flooded in
southeastern Texas, where extreme rainfall hit many areas that are
densely populated.
Hurricane Harvey was the largest housing disaster to strike the U.S.
in our Nation's history. When the cleanup began, thousands of
Houstonians needed loans to help rebuild their homes and their lives.
[[Page H5581]]
But black and brown Houstonians who sought loans or home loan
refinancing to pay for repairs faced obstacles, delays, and outcomes
that were different from their other neighbors. This endemic
discrimination was seen in efforts to gain assistance from the Small
Business Administration.
If there was ever a moment when our financial systems need to fully
support minority communities, it is after they have been decimated by a
natural disaster.
For majority Houstonians who applied and received a $200,000 loan
from the Small Business Administration or $25,000 by virtue of a
government declaration, the process was streamlined. They could also
apply for and receive $40,000 from the SBA to replace or repair
personal property--such as clothing, furniture, cars, and appliances--
that was damaged or destroyed in the disaster.
The SBA asks applicants for collateral, such as a first or second
mortgage on the damaged real estate, which are common forms of
collateral for an SBA disaster loan.
In the case of majority applicants, it was found that the SBA usually
would not decline a loan for lack of collateral.
However, for black and brown families, the system worked differently.
Financing was difficult to access. Applications for loans from black
and brown residents were less likely to be approved than applications
from their white counterparts.
My amendment protects black and brown Americans who face the
consequences of a debilitating natural disaster. It would guarantee
their protection from unfair policies in their most vulnerable moments.
Fighting economic discrimination should be a bipartisan issue. No
American deserves to be left behind because of antiquated monetary
policy or a federal government that refuses to fight on their behalf.
Mr. Speaker, I ask my colleagues to recognize the discrimination and
to fix it by adding the Jackson Lee amendment.
I include in the Record an article titled: ``Black Communities are
Last in Line for Disaster Planning in Texas.''
[From the Washington Post, May 12, 2022]
Black Communities Are Last in Line for Disaster Planning in Texas
Houston.--Lawrence Hester worries every time it rains.
During heavy storms, water overflows the dirt drainage ditch
fronting his yard and the bayou at the end of his block--
flooding the street, creeping up his front steps, pooling
beneath the house, and trapping his family inside. ``We are
always underwater here,'' said Hester, 61. And yet, the state
of Texas allocated none of the $1 billion in federal funds it
received to protect communities from future disasters to
neighborhoods in Houston that flood regularly, according to
an investigation by the U.S. Department of Housing and Urban
Development.
HUD has now found the exclusion of those majority Black and
Hispanic urban communities to be discriminatory. The state
``shifted money away from the areas and people that needed it
the most,'' disproportionately benefiting White residents
living in smaller towns, the agency concluded. Houston has
faced seven federally declared disasters in the last seven
years and suffered an estimated $2 billion in damage from
Hurricane Harvey in 2017. That storm devastated Kashmere
Gardens, where Hester has lived his entire life. The
floodwaters from Harvey deposited black mold throughout
Hester's home and left his daughter chronically short of
breath.
The state, which is appealing HUD's findings, denied
discriminating, saying the Texas General Land Office
administered the federal grant program based on HUD approval.
The situation in Texas illustrates the challenge facing the
Eiden administration, which has pledged to focus on racial
equity but is struggling to protect low-income communities of
color from the growing threat of climate change. Even after
HUD's finding of discrimination, the agency said it does not
have the power at this time to suspend the rest of the $4.3
billion in disaster mitigation money awarded to the state
under criteria approved by the Trump administration. ``What
is happening here with these federal dollars going through
the state and not one dime coming to the City of Houston
post-Hurricane Harvey is absolutely crazy, and it cannot be
justified,'' said Houston Mayor Sylvester Turner. ``What do I
say to the people in Kashmere Gardens when these storms keep
coming, and we are not putting in the infrastructure that
they desperately need to mitigate the risk of future
flooding?''
Black and Hispanic communities in northeast Houston,
including Kashmere Gardens, are especially vulnerable to the
more frequent storms and catastrophic flooding expected due
to climate change, according to the Federal Emergency
Management Agency. Many of the residential streets lack curbs
and gutters--common storm drainage infrastructure in
predominantly White neighborhoods in Houston--and rely
instead on open ditches dating back to the 1930s.
``Sometimes we can't get out because the water is so
high,'' said Jackie Spradley, Hester's wife. ``You're
literally trapped until the water starts to subside.'' She
can't get to work. Their 12-year-old daughter can't get to
school. The whoosh of traffic and trains permeates the
triangular neighborhood of modest single-family homes penned
between two highways and two sets of railroad tracks. During
large storms, runoff from impervious highway surfaces flows
onto residential streets.
Piles of trash--old tires, mattresses, furniture, home
insulation--accumulate for weeks in the drainage ditches
along many streets, blocking water from flowing through the
ditches to the bayou. Silt and other debris clog many of the
culverts beneath narrow driveways and footpaths spanning the
ditches. In the summers, standing water breeds mosquitoes.
The city of Houston had hoped to use $95 million in federal
grants to upgrade Kashmere Gardens' storm drainage
infrastructure. The proposed improvements, including
converting some of the ditches to a curb and gutter system,
would have removed the flood risk to nearly 1,400 properties.
But without the money, the city shelved those plans.
Hester's daughter Ashlei was 7 years old in 2017 when
Harvey floodwaters breached their family room, lapping at the
legs of the card table on which the family played dominoes.
Her cough worsened, and doctors prescribed four different
medications for asthma. She was hospitalized in 2018 for more
than a week. But doctors still did not know what was causing
her illness. It wasn't until December 2019, more than two
years after Harvey, when Hester and his wife discovered the
black mold that was making their daughter so sick. A city
inspector recommended that the house be condemned.
``I was so ashamed,'' Hester said. ``We didn't have nowhere
else to go.''
His mother had purchased the home in 1960, paying the
mortgage with wages from her job flipping burgers 16 hours a
day. Hester was born in the house months later. He had stayed
in the house after Hurricane Alicia flooded the home in 1983.
And after Ike in 2008. Even after Harvey, Hester stayed,
hoping to someday pass the three-bedroom ranch-style home
onto his daughter. But Hester, who is on disability for
herniated disks in his back and neck from his years as a
long-haul truck driver, and his wife, who sells insurance,
never had the money to adequately repair the storm-ravaged
roof and mold-covered walls. Hester said the city informed
him after Harvey that he was ineligible for funding to fix
the home because of unpaid property taxes ``It's not just
about the storm drainage,'' Hester said. ``It's about
everything.''
Hester said that the rainbow-hued oily waters he had
splashed in while playing in the drainage ditches as a child
had been polluted with cancer-causing creosote used to treat
wooden railroad ties and utility poles. A 2019 state health
department investigation confirmed elevated cancer rates
among residents in the southern end of Kashmere Gardens,
located near two Superfund sites. Residents fear that
flooding will carry toxic deposits into their yards. Hester's
mother had died of cancer. So had his father. And one of his
brothers. ``Cancer is killing the whole neighborhood,'' said
Hester, who is too afraid to visit the doctor about his own
health problems.
Federal disaster mitigation grants are supposed to improve
the inferior flood infrastructure in lower income
communities. But the HUD investigation found that competition
rules set by the Texas General Land Office unfairly favored
smaller towns with less urgent needs and where residents are
more likely to be White and less likely to be lower income.
The state knowingly adopted scoring criteria that prioritized
lower-density areas and excluded communities that HUD
designated as the most impacted by disasters from half the
grants, HUD said. ``Because the criteria had these
unjustified discriminatory effects, their use failed to
comply with HUD's regulations,'' the agency found.
No other state adopted Texas' method of distributing the
funds, according to HUD's Office of Fair Housing and Equal
Opportunity. The agency concluded that without Texas's
discriminatory criteria, nearly four times as many Black
residents and more than twice as many Hispanic residents
would have benefited from the grants. The General Land Office
said in its April 1 appeal that the state ``does not
discriminate, and the projects it has funded help minority
beneficiaries across Texas.'' The state said more than two-
thirds of residents in communities that received awards are
Black, Hispanic or Asian. The state pointed out that its plan
was approved two years ago and characterized HUD's new
objections as ``politically motivated.''
In addition to Houston and surrounding Harris County, the
General Land Office denied grants to the predominantly Black
and Hispanic cities of Port Arthur, Beaumont and Corpus
Christi as well as Jefferson and Nueces counties--all of
which experienced significant flooding from Harvey, according
to the civil rights complaint. Texas Housers, a nonprofit
focused on housing in low-income communities, and Northeast
Action Collective, a grassroots advocacy group of Houston
residents, filed the complaint with HUD last year. Instead,
funds were steered toward inland, Whiter communities that
were far less severely impacted by hurricanes and used to
fund routine infrastructure, the complaint said. That
includes $17.5 million for a new community center in Caldwell
County that is supposed to double as an evacuation center;
$10.8 million to install a sewage system in the 379-person
town of Iola; $6 million for a new sheriffs department radio
tower and
[[Page H5582]]
radios for Gonzales County; and $4.2 million for a 2,000-
foot-long road in Bastrop County to connect a Walmart parking
lot and a Home Depot, justified as an alternate path for
emergency vehicles in case the adjacent freeway is clogged
with hurricane evacuees from the Gulf Coast 161 miles away.
``These mitigation funds are a strategy to undo the
systemic racism of the past, but that's not what we're seeing
Texas interested in at all,'' said John Henneberger, co-
director of Texas Housers. ``This is a test of how serious
HUD and the Biden administration are in enforcing civil
rights.'' HUD's Office of Community Planning and Development,
which oversees disaster mitigation aid, wrote to the Texas
General Land Office in March expressing ``grave concerns''
over the distribution of the first round of grants. ``The
State has not identified a plan to protect communities while
guarding against competition criteria that could disadvantage
minority residents,'' HUD wrote. If a voluntary resolution
cannot be reached, HUD said it could refer the matter to the
Department of Justice for enforcement. But advocates worry
that could come too late for communities like Kashmere
Gardens. While HUD said it cannot stop the state from
awarding the rest of the grants ``due to prior decisions,''
it would begin monitoring how the money is distributed and
warned it could claw back the funds if necessary.
``Texas has a history of sending money to those who are
politically connected,'' said Shannon Van Zandt, a professor
of urban planning at Texas A&M University whose research
focuses on hazard reduction and housing. She noted that
racial disparities occurred with the distribution of disaster
funds after Hurricane Ike in 2008. Civil rights advocates say
HUD has the authority to suspend Texas's ability to spend
federal grant money; it has done so under previous
administrations. But Sara Pratt, former deputy assistant
secretary in HUD's fair housing office who is now
representing Texas Housers as an attorney, said there is
long-standing division among HUD staff over enforcing civil
rights violations when making funding decisions.
``There is deep disagreement internally,'' Pratt said.
``The secretary's job is to resolve disputes like this.'' HUD
Secretary Marcia L. Fudge declined to comment because the
Texas investigation remains open, HUD spokesman Michael Burns
said. ``Her commitment to civil rights and fair housing is
well documented and unwavering, and she is committed to
ensuring that all HUD funds are used in compliance with all
relevant laws and program requirements,'' Burns said. In
response to widespread criticism over how the first $1
billion in Harvey disaster grants was distributed, Texas now
plans to allocate $750 million to Harris County. Houston is
due to receive an additional $9 million out of $488 million
that the state plans to send to the Houston-Galveston region.
City officials point out that the $9 million amounts to less
than one tenth of the cost of its proposed improvements to
Kashmere Gardens.
In Kashmere Gardens on a recent morning after a
thunderstorm inundated streetside drainage ditches,
bulldozers and dump trucks worked to widen and deepen Hunting
Bayou to absorb runoff from future storms. The work is a
small portion of a $2.5 billion flood protection bond that
Harris County passed in 2018. The bulk of the bond money was
directed to wealthier neighborhoods because the county
expected to receive federal disaster funds for poorer ones,
according to county commissioner Rodney Ellis. But without
money to upgrade the ditch system to drain storm water from
neighborhood streets, it's unclear if the bayou expansion
will be effective.
``This is the Texas two-step in Houston. You have to get
the water from the neighborhoods to the bayous. And then you
have to get the water from the bayous to the Gulf of
Mexico,'' said Ellis, who represents the area. Residents,
too, remain skeptical. ``It's a wait and see situation,''
said Dorothy Wanza, another Kashmere Gardens resident whose
street turned into a river during Harvey and flooded her home
with more than a foot of water. The experience left the So-
year-old so traumatized that ``every time it rains, I get the
hell out of dodge.''
She spent the previous night fully dressed, prepared to
evacuate to one of her children's homes. ``The ditches
overflow, and once they are full, the water comes back on
you,'' Wanza said. On the other side of the bayou, Hester
said the city had recently cleaned out part of a ditch lining
his street for the first time he could recall in more than a
decade. Dirt and bricks still block some of the culverts.
``Right up under there, look,'' he said, pointing beneath
the concrete walkway leading from the street to his front
yard. ``It's stopped up on both sides.'' He nodded farther
down the street to another culvert: ``That whole drain hole
was flooded.'' He and his next door neighbor had removed as
many bricks as they could to move the water through. ``If we
don't do things around here, ain't nothing going to get done.
I have to go around here and try to help, and I'm in bad
shape myself.'' Hester limped around the perimeter of his
home and pointed two feet up the siding where Harvey
floodwaters had reached--a reminder of the catastrophe he
says he failed to protect his daughter from.
A nonprofit had removed the mold inside when it fixed up
the house in 2020, installing new cabinets, a new roof and
laminate flooring. But the entryway still slopes. The floor
joists need to be repaired. The porch is lopsided, its wood
rotted. Hester is stooped from years of pain. Yet he remains
intent on doing what he can to make things right. ``It's not
my life I'm worried about. It's my daughter's,'' Hester said.
``I'm half dead.''
Mr. McHENRY. Mr. Speaker, I reserve the balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I yield 1 minute to the gentlewoman
from Pennsylvania (Ms. Houlahan).
Ms. HOULAHAN. Mr. Speaker, I rise today in support of my commonsense
amendments that, one, ensure community banking institutions will work
better to support young women and people of color, and two, that credit
unions help us advance financial literacy.
As a businessowner and entrepreneur myself, I understand the
challenges of getting product from the garage or trunk of your car into
a storefront window or onto the online sales opportunities.
We know that Community Development Financial Institutions, or CDFIs,
are all key partners in successful business development, but they
cannot do it alone.
My first amendment builds on past successes by revising the Young
Entrepreneurs Program to ensure that women and people of color receive
the focus and financial support that they need.
Simply put, our local economies truly grow and thrive when we support
all of our budding entrepreneurs. We have an established partner to
help us do that already, which is credit unions. That brings me to my
second effort, which would require credit unions to include a
description of financial education programs in their reports to ensure
that information is accessible and transparent.
Financial management, budgeting, and making informed and effective
decisions with resources are keys to business success.
I thank Chairwoman Waters for bringing this.
Mr. GREEN of Texas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, according to a recent National Bureau of Economic
Research report, the racial wealth gap is on track to grow wider in the
coming decades. It is estimated that the White-to-Black wealth ratio
will increase from 5.6 to 1 in 2019 to 8.4 to 1 by 2200.
The time to act is now. These amendments will help ensure that
everyone will have a fair chance, and in too many instances, a first
chance at economic opportunity.
I thank our colleagues for offering their amendments, and I urge my
colleagues to vote in support of these amendments because these
amendments are principally about transparency.
If you have nothing to hide, you celebrate transparency. If you have
something to hide, you want to eschew transparency.
These amendments seek to provide transparency so that we can get a
better understanding of how we can better cure the invidious
discrimination that has plagued our country for centuries.
Mr. Speaker, I yield back the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, let's focus on the main thing. The main thing to the
American people right now is what they see when they fill up their tank
at the pumps and buy gas. It is what they see when they go to the
grocery store. It is what they see in their daily lives.
What they are seeing in their daily lives is inflation at a 40-year
high. Here are fantastic examples that are horrible, horrible things to
see, but they are important that we see because this is what the
American people are facing.
Inflation is at a 40-year high. Food prices are up 10 percent, gas 50
percent, and shelter 5.5 percent from just last year. The American
people will pay $5,200 more this year than they did last year for the
same goods and services.
This is a direct result of Democrats' fiscal plans. It is a direct
result of the Democrats' economic strategy, and we are suffering the
consequences from it.
This bill, and the amendments that pass on the floor today, will do
nothing to help struggling American families. Nothing.
Instead, they will politicize the Fed, expand the CFPB's authority,
and make credit more expensive and harder to get. This is bad news. It
is bad policy. It is a bad process.
We should reject it. We should make sure this bill does not become
law.
[[Page H5583]]
I urge a ``no'' vote, and I yield back the balance of my time.
The SPEAKER pro tempore. Pursuant to House Resolution Number 1170,
the previous question is ordered on the amendments en bloc offered by
the gentleman from Texas (Mr. Green).
The question is on the amendments en bloc.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. McHENRY. Mr. 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 question
are postponed.
Amendments En Bloc No. 2 Offered by Mr. Green of Texas
Mr. GREEN of Texas. Mr. Speaker, pursuant to section 3 of House
Resolution 1170, I offer amendments en bloc No. 2.
The SPEAKER pro tempore. The Clerk will designate the amendments en
bloc.
Amendments en bloc No. 2, consisting of amendment Nos. 6 and 24,
printed in part B of House Report 117-366, offered by Mr. Green of
Texas.
Amendment No. 6 Offered by Mr. Rodney Davis of Illinois
Strike subtitle B of title II and insert the following:
Subtitle B--Repeal of Small Business Loan Data Collection
SEC. 221. REPEAL.
(a) In General.--Section 704B of the Equal Credit
Opportunity Act (15 U.S.C. 1691c-2) is hereby repealed.
(b) Conforming Amendments.--The Equal Credit Opportunity
Act is amended--
(1) in section 701(b) (15 U.S.C. 1691(b))--
(A) in paragraph (3), by adding ``or'' at the end;
(B) in paragraph (4), by striking ``; or'' and inserting a
period; and
(C) by striking paragraph (5); and
(2) in the table of contents for such Act, by striking the
item relating to section 704B.
Page 86, strike lines 14 and 15.
Amendment No. 24 Offered by Mr. Timmons of South Carolina
Strike title I, title II, title III, subtitle B of title
IV, and subtitle B of title V.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, the
gentleman from Texas (Mr. Green) and the gentleman from North Carolina
(Mr. McHenry) each will control 10 minutes.
The Chair recognizes the gentleman from Texas.
Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the Republican amendments presented here today stand as
a testament to Republican values; namely, a tolerance for wealth
inequality and racial discrimination.
Let's be clear. The amendment from Mr. Timmons will strike large
portions of the bill and make no attempt to improve it.
As for the amendment from Mr. Davis, it will strike provisions
requiring the reporting of small business lending data, effectively
allowing banks to continue to hide the extent to which they are denying
small business owners of color access to affordable credit.
According to a Fed survey, 46 percent of Black-owned firms that
applied for financing received none of the financing they sought
compared to just 22 percent of White-owned firms. We need more granular
data on these trends to root out discrimination in lending once and for
all.
For these reasons, I urge my colleagues to oppose this amendment, and
I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I rise in support of the Republican en
bloc, and I yield myself such time as I may consume.
The amendments in this en bloc are where we should have started this
debate. These amendments would improve the bill and provide real
solutions for the American people who are suffering under the weight of
misguided Democrat economic policies.
In whole, this amendment package would make the bill bipartisan and
give us a real chance to pass the Senate and become law. These
amendments would preserve the sections of the bill that Republicans
supported during committee consideration, such as promoting new and
diverse depository institutions, improving corporate governance through
diversity, ensuring diversity in community banking, expanding
opportunity for minority depository institutions, and improving the
CDFI Bond Guarantee Program.
These are the bipartisan pieces of the bill. These five bills are the
result of bipartisan discussions and compromise. They show that
Congress is capable of working together and putting the American people
first rather than really a far-left agenda that the rest of the bill is
pushing.
These bills collectively would help to identify and implement
solutions to support small banks and credit unions in the communities
they serve.
Furthermore, this amendment en bloc would strike section 1071 of the
Dodd-Frank Act which requires the Consumer Financial Protection
Bureau--which is an unaccountable agency, by the way--to issue a rule
to force banks and credit unions to collect and report demographic data
on small business loan applications.
We have seen what the CFPB can do under Director Chopra's scorched-
earth policies. This proposed rule will make small business lending
more costly and difficult for financial institutions of all shapes and
sizes. It will also choke off the very access to credit those small
businesses need right now.
So instead of limiting small business credit options and saddling
them with unnecessary regulations, as the underlying bill does, we
should focus on fostering growth and help small businesses succeed.
Mr. Speaker, I urge my colleagues to support this en bloc, and I
reserve the balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I reserve the balance of my time,
and I am prepared to close.
Mr. McHENRY. Mr. Speaker, I yield myself the balance of my time.
In closing, I would just reiterate the amendments in this en bloc are
how we should have started this debate and how we should have started
this bill.
These amendments would improve the bill and provide real solutions
for American people who are suffering under the weight of misguided
Democrat policies.
I urge my colleagues to vote ``yes'' on this en bloc, and I yield
back the balance of my time.
Mr. GREEN of Texas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, what we have been witnessing today is the behavior of
persons who chose not to help the American people in a time of need.
When the American people were being evicted from their homes, they
chose not to help. When schools were plagued by a virus and needed
funding so that they could secure our children from the virus, they
chose not to help. When people were out of work and needed help to put
food on the table, fuel in their cars, they chose not to help.
Because they chose not to help, they have to call any help that was
given reckless, and they have to call it bad policy.
But the truth is, if you do nothing, you put yourself in a position
such that you cannot appreciate the suffering of people who are in the
midst of a worldwide pandemic. They chose not to help. We choose to
help, and we continue to help.
Mr. Speaker, it is a sad day when people will call saving homes and
keeping children safe from a virus reckless policy.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. Pursuant to House Resolution Number 1170,
the previous question is ordered on the amendments en bloc offered by
the gentleman from Texas (Mr. Green).
The question is on the amendments en bloc.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. GREEN of Texas. Mr. 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 question
are postponed.
{time} 1400
Amendment No. 10 Offered by Mr. Vicente Gonzalez of Texas
The SPEAKER pro tempore. It is now in order to consider amendment No.
10 printed in part B of House Report 117-366.
Mr. VICENTE GONZALEZ of Texas. Mr. Speaker, I have an amendment at
the desk made in order by the rule.
[[Page H5584]]
The SPEAKER pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Insert after section 524 the following:
SEC. 525. RULE OF CONSTRUCTION.
Nothing in this subtitle or the amendments made by this
subtitle may be construed to prevent or otherwise impede the
ability of insured depository institutions (as defined in
section 3 of the Federal Deposit Insurance Act) to establish
branches and provide banking services in underserved areas.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, the
gentleman from Texas (Mr. Vicente Gonzalez) and a Member opposed each
will control 5 minutes.
The Chair recognizes the gentleman from Texas.
Mr. VICENTE GONZALEZ of Texas. Mr. Speaker, I yield myself such time
as I may consume.
My amendment to H.R. 2543, the Federal Reserve Racial and Economic
Equity Act, ensures no changes made by this bill will prohibit
community banks from expanding into underserved areas as defined by the
bill.
Access to credit is a building block for aspiring entrepreneurs and
small business owners and helps create jobs and boost local economic
power and growth.
My amendment helps increase banking opportunities in rural and
underserved areas, and I urge my colleagues to support it and the base
legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I claim time in opposition, but I am not
opposed to the amendment.
The SPEAKER pro tempore. Without objection, the gentleman from North
Carolina is recognized for 5 minutes.
There was no objection.
Mr. McHENRY. Mr. Speaker, I appreciate Mr. Gonzalez's attempt to help
community banks. I would say that this amendment really doesn't do
anything substantive to the bill. It doesn't help community banks
compete and survive in the current regulatory environment.
In fact, if we were really serious about helping community banks, we
would be looking at the Dodd-Frank Act and the additional regulatory
burdens in place on these financial institutions, but we are not. This
bill doesn't do that. We would be looking at the regulatory burdens
that Dodd-Frank keeps on institutions that keeps them from lending to
their consumers, the compliance cost burdens that make accessing credit
more difficult, especially for hard-to-reach communities.
Last year, Democrats got rid of the true lender doctrine, which
focused on providing legal certainty to banks and fintech partnerships.
The true lender doctrine would have actually helped provide clarity and
lower the cost and access to credit. It is these partnerships between
fintechs and community banks that harness and scale technology and
provide consumers with the financial products that they want and need,
particularly in underserved communities.
If we are really serious about reaching underserved communities--and
I think we should be--we should restore the true lender doctrine and
rightsize overly burdensome regulations on community banks.
Those are the important points I would like to make in light of this
amendment. I welcome a discussion about those issues. I think we have a
lot of mutual concerns about the challenges the American people are
facing, but I think it is important that we get to the big issues that
are central in this economy, given the economic circumstances we are
currently in as a result of Democrat policies, and we should be working
to fix those big issues.
While I am not opposed to the amendment--I think it is fine; I am not
going to oppose it--I think it is important that we highlight the big
and essential things we should be about.
Mr. Speaker, I reserve the balance of my time.
Mr. VICENTE GONZALEZ of Texas. Mr. Speaker, I have no further
remarks. I am prepared to close, and I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield myself the balance of my time.
I just reiterate that this amendment really doesn't do anything
substantive. If we are serious about helping community banks,
rightsizing burdensome regulations would be the way to go, and
reinstating the true lender doctrine would be a strong first step.
There are bigger things that we should be doing to help these
institutions.
While I am not opposed to the amendment, I think we should be doing
the big, substantive items that are important for us to have a
competitive economic situation for working Americans. We should be
about these bigger items and focus on them.
Mr. Speaker, I yield back the balance of my time.
Mr. VICENTE GONZALEZ of Texas. Mr. Speaker, again I urge my
colleagues to support this amendment and the chairwoman's underlying
bill.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, the
previous question is ordered on the amendment offered by the gentleman
from Texas (Mr. Vicente Gonzalez).
The question is on the amendment offered by the gentleman from Texas
(Mr. Vicente Gonzalez).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. POSEY. Mr. 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 question
are postponed.
Amendment No. 19 Offered by Mr. Payne
The SPEAKER pro tempore. It is now in order to consider amendment No.
19 printed in part B of House Report 117-366.
Mr. PAYNE. Mr. Speaker, I have an amendment at the desk.
The SPEAKER pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Add at the end the following:
TITLE VI--PAYMENT CHOICE
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Payment Choice Act of
2022''.
SEC. 602. SENSE OF CONGRESS.
It is the sense of Congress that every consumer has the
right to use cash at retail businesses who accept in-person
payments.
SEC. 603. RETAIL BUSINESSES PROHIBITED FROM REFUSING CASH
PAYMENTS.
(a) In General.--Subchapter I of chapter 51 of title 31,
United States Code, is amended by adding at the end the
following:
``Sec. 5104. Retail businesses prohibited from refusing cash
payments.
``(a) In General.--Any person engaged in the business of
selling or offering goods or services at retail to the public
with a person accepting in-person payments at a physical
location (including a person accepting payments for
telephone, mail, or internet-based transactions who is
accepting in-person payments at a physical location)--
``(1) shall accept cash as a form of payment for sales of
less than $2,000 (or, for loan payments, payments made on a
loan with an original principal amount of less than $2,000)
made at such physical location; and
``(2) may not charge cash-paying customers a higher price
compared to the price charged to customers not paying with
cash.
``(b) Exceptions.--
``(1) In general.--Subsection (a) shall not apply to a
person if such person--
``(A) is unable to accept cash because of--
``(i) a sale system failure that temporarily prevents the
processing of cash payments; or
``(ii) a temporary insufficiency in cash on hand needed to
provide change; or
``(B) provides customers with the means, on the premises,
to convert cash into a card that is either a general-use
prepaid card, a gift card, or an access device for electronic
fund transfers for which--
``(i) there is no fee for the use of the card;
``(ii) there is not a minimum deposit amount greater than 1
dollar;
``(iii) amounts loaded on the card do not expire, except as
permitted under paragraph (2);
``(iv) there is no collection of any personal identifying
information from the customer;
``(v) there is no fee to use the card; and
``(iv) there may be a limit to the number of transactions.
``(2) Inactivity.--A person seeking exception from
subsection (a) may charge an inactivity fee in association
with a card offered by such person if--
``(A) there has been no activity with respect to the card
during the 12-month period ending on the date on which the
inactivity fee is imposed;
``(B) not more than 1 inactivity fee is imposed in any 1-
month period; and
``(C) it is clearly and conspicuously stated, on the face
of the mechanism that issues the card and on the card--
``(i) that an inactivity fee or charge may be imposed;
``(ii) the frequency at which such inactivity fee may be
imposed; and
``(iii) the amount of such inactivity fee.
[[Page H5585]]
``(c) Right to Not Accept Large Bills.--
``(1) In general.--Notwithstanding subsection (a), for the
5-year period beginning on the date of enactment of this
section, this section shall not require a person to accept
cash payments in $50 bills or any larger bill.
``(2) Rulemaking.--
``(A) In general.--The Secretary of the Treasury, in this
section referred to as the Secretary, shall issue a rule on
the date that is 5 years after the date of the enactment of
this section with respect to any bills a person is not
required to accept.
``(B) Requirement.--When issuing a rule under subparagraph
(A), the Secretary shall require persons to accept $1, $5,
$10, $20, and $50 bills.
``(d) Enforcement.--
``(1) Preventative relief.--Whenever any person has
engaged, or there are reasonable grounds to believe that any
person is about to engage, in any act or practice prohibited
by this section, a civil action for preventive relief,
including an application for a permanent or temporary
injunction, restraining order, or other order may be brought
against such person.
``(2) Civil penalties.--Any person who violates this
section shall--
``(A) be liable for actual damages;
``(B) be fined not more than $2,500 for a first offense;
and
``(C) be fined not more than $5,000 for a second or
subsequent offense.
``(3) Jurisdiction.--An action under this section may be
brought in any United States district court, or in any other
court of competent jurisdiction.
``(4) Intervention of attorney general.--Upon timely
application, a court may, in its discretion, permit the
Attorney General to intervene in a civil action brought under
this subsection, if the Attorney General certifies that the
action is of general public importance.
``(5) Authority to appoint court-paid attorney.--Upon
application by an individual and in such circumstances as the
court may determine just, the court may appoint an attorney
for such individual and may authorize the commencement of a
civil action under this subsection without the payment of
fees, costs, or security.
``(6) Attorney's fees.--In any action commenced pursuant to
this section, the court, in its discretion, may allow the
prevailing party, other than the United States, a reasonable
attorney's fee as part of the costs, and the United States
shall be liable for costs the same as a private person.
``(7) Requirements in certain states and local areas.--In
the case of an alleged act or practice prohibited by this
section which occurs in a State, or political subdivision of
a State, which has a State or local law prohibiting such act
or practice and establishing or authorizing a State or local
authority to grant or seek relief from such act or practice
or to institute criminal proceedings with respect thereto
upon receiving notice thereof, no civil action may be brought
hereunder before the expiration of 30 days after written
notice of such alleged act or practice has been given to the
appropriate State or local authority by registered mail or in
person, provided that the court may stay proceedings in such
civil action pending the termination of State or local
enforcement proceedings.
``(e) Greater Protection Under State Law.--This section
shall not preempt any law of a State, the District of
Columbia, a Tribal government, or a territory of the United
States if the protections that such law affords to consumers
are greater than the protections provided under this section.
``(f) Rulemaking.--The Secretary shall issue such rules as
the Secretary determines are necessary to implement this
section, which may prescribe additional exceptions to the
application of the requirements described in subsection
(a).''.
(b) Clerical Amendment.--The table of contents for chapter
51 of title 31, United States Code, is amended by inserting
after the item relating to section 5103 the following:
``5104. Retail businesses prohibited from refusing cash payments.''.
(c) Rule of Construction.--The amendments made by this
section may not be construed to have any effect on section
5103 of title 31, United States Code.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, the
gentleman from New Jersey (Mr. Payne) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from New Jersey.
Mr. PAYNE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today to encourage everyone to support adding our
bipartisan amendment, the text of the bipartisan Payment Choice Act, to
the bill.
Recently, the bill passed the Financial Services Committee on a
bipartisan vote. I thank Chairwoman Waters for her work in helping to
advance my legislation. I thank the gentlewoman from Texas (Ms. Garcia)
and the gentleman from New Jersey (Mr. Smith) for their leadership and
support of it.
The Payment Choice Act guarantees that every consumer has the choice
to pay cash for goods and services. Right now, there is an attack on
American currency. Companies are trying to ban cash in their stores,
but cash is simple, common, and anonymous. And it is the necessary form
of payment for 55 million Americans. That is right, 55 million
Americans in this country.
The bill does not prohibit digital or other payments. Instead, it
protects cash as a payment in this Nation, as it has been throughout
our history. It protects Americans from being rejected from stores
because they can only pay in cash.
Several cities and States have enacted their own laws to protect the
right to pay cash already. This bill would provide a single law to
protect cash nationwide. More important, the bill would protect the
privacy of Americans. There is no data collection with cash
transactions. Cash is a private transaction.
Customers should have the right to refuse to hand over their personal
information for a simple purchase. It is not a partisan issue because
Democrats and Republicans support this bill. Therefore, it is an
American issue to protect American currency. I encourage all Members to
support my amendment.
Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I claim the time in opposition to this
amendment.
The SPEAKER pro tempore. The gentleman from North Carolina is
recognized for 5 minutes.
Mr. McHENRY. Mr. Speaker, this amendment is a solution in search of a
problem and provides a pathway for frivolous lawsuits in Federal court.
Cash continues to be an important form of payment in many communities
across America. However, businesses that have a substantial number of
customers who wish to transact in cash already accept cash.
The amendment's requirements will impact small business owners in
particular, who will be required to accept cash payment whether or not
it makes economic or business sense.
Additionally, this amendment would give preferential treatment to
ancillary service providers that may be facing a downturn in demand for
services due to an increasing electronic payment usage desire among
consumers.
Let's look at the bill. Let me try to explain it. The bill would
prohibit retail businesses from refusing cash payments below $2,000. It
would prohibit the retail business from charging a higher price to any
customer who pays by cash than is customarily going to be charged for
using other forms of payment. It provides a private right of action--
that means that they can sue--in Federal court for consumers who are
aggrieved.
The amendment provides exceptions to these prohibitions, including if
the business provides a mechanism to convert cash to prepaid cards.
This is really the desire to force basically ATMs into retail
establishments. That is the construct of the bill. So imagine you are a
small business, and now under Federal law, you are required to take a
$2,000 cash payment. That seems onerous. Imagine you are a small
businessperson who is now going to be faced potentially with lawsuits
in Federal court for a failure to provide an ATM machine in your
establishment. This seems quite onerous.
We can get into the question of the soundness of a fully digitized
world. There is a serious debate to be had here, and there is an
economic inclusion debate that is necessary for us to have. In a world
of digital payments, not everyone is digital, so we have to make sure
that we get to those key issues.
But this bill is rather convoluted, and it provides a number of
requirements for businesses that are not in keeping with trying to get
at the question of cash acceptance. I think we should have some serious
discussions about cash acceptance, especially for our communities
across America that are not online and don't have credit cards or
prepaid cards in their pocket.
I think there are things we can still work on in this space.
Unfortunately, this bill is too convoluted with too many mechanisms
that would provide too many opportunities for new lawsuits, so I oppose
it. I think it is important that we oppose this amendment, as I did in
committee.
Mr. Speaker, I reserve the balance of my time.
[[Page H5586]]
Mr. PAYNE. Mr. Speaker, I really appreciate the gentleman's wonderful
summary of my bill up until the point where he raised the issue around
preferential businesses, such as ATMs. There is no preferential
treatment for any industry in this bill. All retail transactions are
treated the same.
As the gentleman speaks on businesses being able to charge a higher
price, I don't know about North Carolina, but in New Jersey, when I go
to the gas station, there is a higher price charged for credit, not
cash. So I think he kind of had that in reverse.
Mr. Speaker, this is an opportunity for 55 million Americans who
don't have banking accounts or are underbanked, to continue to be a
part of this economy. There is a population in this country, believe it
or not, who would rather not be in the banking system.
{time} 1415
I am just trying to protect the underserved and the underbanked. I
don't know the makeup of the gentleman's district in North Carolina,
although I think his attire is splendid with the bowtie. But back in
his district, I don't know if they are affluent or not. I have some of
the poorest Americans in my district, and they are reaching out to me
saying: What do I do?
What happens to the grandmother who lives in a two-flight walkup and
the store that she uses is on the first floor? Mr. Speaker, now, this
business decides that they are not going to accept her cash anymore.
You are asking this woman to walk another three or four blocks to find
someone, like a pauper: ``Who will take my cash? Who will take my cash?
Will you take my money? Will you take my cash?''
``No, no cash allowed here. Be gone.''
That is what we are looking at. That is what we are trying to
prevent.
Mr. Speaker, I just say that we are here to fight for the
underserved, the underbanked, and the unbanked.
Mr. Speaker, I yield back the balance of my time.
Mr. McHENRY. Mr. Speaker, has the gentleman's time fully expired?
The SPEAKER pro tempore. The gentleman's time has entirely expired.
Mr. McHENRY. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I agree with the gentleman from New Jersey. I agree with
Mr. Payne on his choice of attire. I think the fact that two of us, who
are very well dressed--appropriately dressed, I would say--are having a
debate and are on different sides of this issue is very unbecoming of
the bowtie community. We stand together more closely than this.
Mr. Speaker, I welcome my colleague--the fact that he has an
undertaking in this arena to talk about the question of cash
acceptance, I think, is important.
There are a number of questions that I have raised about this bill
that I think are important. The private right of action in Federal
court is problematic for us on this side of the aisle. The requirement
to have a machine on site--on page 2 of the bill, it says the retail
facility, or whatever the facility is, that is accepting payment, they
have to provide customers with the means on the premises to convert
cash into a card that is either a general-use prepaid card, a gift
card, or an access device for electronic funds transfer. So it is a
very specific requirement to have on premises.
Imagine the same scenario of this nice lady that lives in his
district, Mr. Payne's district, who goes downstairs to purchase
whatever, whether it is from a grocery store or whatever. Now, imagine
they had an ATM that was two doors down. Under the construct of this
bill, that wouldn't be sufficient.
There are important things to get at here. I oppose the amendment,
but I welcome the debate.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. Pursuant to House Resolution 1170, the
previous question is ordered on the amendment offered by the gentleman
from New Jersey (Mr. Payne).
The question is on the amendment offered by the gentleman from New
Jersey (Mr. Payne).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. McHENRY. Mr. 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 question
are postponed.
____________________