J. French Hill
Representative for Arkansas · Republican · United States
“``(2) Selection of economic indicators.--Not later than 3 months after the date of enactment of this section, the Board of Governors shall-- ``(A) complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (…”
“``(2) Selection of economic indicators.--Not later than 3 months after the date of enactment of this section, the Board of Governors shall-- ``(A) complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (…”
“(B) Selection of economic indicators.--Not later than 3 months after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall-- (i) complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the…”
“(B) Selection of economic indicators.--Not later than 3 months after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall-- (i) complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the…”
“(2) Guidance.--The term ``guidance'' means a financial agency statement of general applicability, intended to have a future effect on the behavior of regulated parties, that sets forth a policy on a statutory, regulatory, or technical issue, or an interpretation of a statute or regulation, but does not include-- (A) a rule promulgated pur…”
“(2) Guidance.--The term ``guidance'' means a financial agency statement of general applicability, intended to have a future effect on the behavior of regulated parties, that sets forth a policy on a statutory, regulatory, or technical issue, or an interpretation of a statute or regulation, but does not include-- (A) a rule promulgated pur…”
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“(d) Removal of Reputational Risk as a Consideration in the Supervision of Depository Institutions.--If a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the Federal banking agency shall remove from any guidance, rule, examination manual, or similar document established by the agency any reference to reputational risk, or any term substantially similar, regarding the supervision of depository institutions such that reputational risk, or any term substantially similar, is no longer taken into consideration by the Federal banking agency when examining and supervising a depository institution.”
“(c) Study on Reputational Risk.--Not later than 1 year after the date of the enactment of this Act, each Federal banking agency shall-- (1) carry out a study to evaluate the use of reputational risk in the supervision of depository institutions; and (2) determine whether the removal of reputational risk in the supervision of depository institutions would threaten the safety and soundness of those depository institutions.”
“The previous sentence does not apply to negative publicity or negative public opinion regarding an institution's business practices where such practices involve unlawful transactions in connection with state sponsors of terrorism or foreign terrorist organizations. (5) State sponsors of terrorism.--The term ``state sponsors of terrorism'' means a country, the government of which has been determined by the Secretary of State to have repeatedly provided support for acts of international terrorism, for purposes of-- (A) section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i)); (B) section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371); (C) section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or (D) any other provision of law.”
“(3) Foreign terrorist organization.--The term ``foreign terrorist organization'' means a foreign organization that is designated by the Secretary of State in accordance with section 219 of the Immigration and Nationality Act (8 U.S.C. 1189). (4) Reputational risk.--The term ``reputational risk'' means the potential that negative publicity or negative public opinion regarding a depository institution's business practices, whether true or not, will cause a decline in confidence in the institution or a decline in the customer base, costly litigation, or revenue reductions or otherwise adversely impact the depository institution.”
“(b) Definitions.--In this section: (1) Depository institution.--The term ``depository institution''-- (A) has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); (B) includes a depository institution holding company, as such term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (C) includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (2) Federal banking agency.--The term ``Federal banking agency''-- (A) has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and [[Page H4716]] (B) includes-- (i) the National Credit Union Administration; and (ii) the Bureau of Consumer Financial Protection.”
“(a) Findings.--Congress finds that-- (1) the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions; (2) all federally legal businesses and law-abiding citizens regardless of political ideology should have equal opportunity to obtain financial services and should not face unlawful discrimination in obtaining such services; (3) financial service providers are private entities entitled to provide services to whichever customers they so choose, provided that those decisions do not violate the law; (4) financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence; (5) the use of reputational risk in supervisory frameworks encourages Federal banking agencies to regulate depository institutions based on the subjective view of negative publicity and provides cover for the agencies to implement their own political agenda unrelated to the safety and soundness of a depository institution; (6) Federal banking agencies have in fact used reputational risk to limit access of federally legal businesses and law- abiding citizens to financial services in 2018 when the Federal Deposit Insurance Corporation acknowledged that the agency used reputational risk reviews to limit access to financial services by certain industries, commonly known as ``Operation Choke Point''; and (7) reputational risk does not appear in any statute and is an unnecessary and improper use of supervisory authority that does not contribute to the safety and soundness of the financial system.”
“``(j) Report.--In its annual report to Congress, the National Credit Union Administration shall include-- ``(1) information on how the Administration is complying with subsections (h) and (i); and ``(2) aggregate data summarizing the Administration's examination practices with respect to insured credit unions with less than $6,000,000,000 in total assets, including-- ``(A) the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations; ``(B) the average number of examiners utilized; and ``(C) the average amount of time the Administration spends visiting such credit unions for on-site examinations.''. SEC. 304. FINANCIAL INTEGRITY AND REGULATION MANAGEMENT.”
“1784), as amended by subsection (a)(2), is further amended by adding at the end the following: ``(i) Examination Practices.--With respect to on-site examination of an insured credit union with less than $6,000,000,000 in total assets, the National Credit Union Administration shall-- ``(1) ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner; ``(2) make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the credit union to carry out the examination; ``(3) make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and ``(4) to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.”
“``(13) Report.--In its annual report to Congress, each Federal banking agency shall include-- ``(A) information on how the agency is complying with paragraphs (11) and (12); and ``(B) aggregate data summarizing the agency's examination practices with respect to insured depository institutions with less than $6,000,000,000 in total assets, including-- ``(i) the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations; ``(ii) the average number of examiners utilized; and ``(iii) the average amount of time the agency spends visiting such institutions for on-site examinations.''. (2) Insured credit unions.--Section 204 of the Federal Credit Union Act (12 U.S.C.”
“1820(d)), as amended by subsection (a)(1), is further amended by adding at the end the following: ``(12) Examination practices.--With respect to on-site examination of an insured depository institution with less than $6,000,000,000 in total assets, the appropriate Federal banking agency shall-- ``(A) ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner; ``(B) make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the institution to carry out the examination; ``(C) make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and ``(D) to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.”
“``(B) Well capitalized.--The term `well capitalized' has the meaning given that term in section 216(c). ``(C) Well managed.--With respect to an insured credit union, the term `well managed' means that, when the credit union was most recently examined by the National Credit Union Administration, the credit union was found to be well managed, and the credit union's composite condition was found to be satisfactory or outstanding.''. (b) Examination Practices.-- (1) Insured depository institutions.--Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.”
“``(4) Rule of construction.--Nothing in this subsection may be construed to limit the authority of the National Credit Union Administration to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured credit union if the National Credit Union Administration determines such monitoring, reviews, or examinations are appropriate to ensure safety and soundness or compliance with applicable laws. ``(5) Definitions.--In this paragraph: ``(A) Consumer compliance examination.--The term `consumer compliance examination' means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).”
“``(3) Rulemaking.--Not later than 12 months after the date of enactment of this subsection, the National Credit Union Administration shall issue rules to carry out paragraph (1), including, with respect to an insured credit union described under paragraph (1), to-- ``(A) establish procedures for the limited-scope examinations described in paragraph (1)(A); ``(B) establish procedures for reviewing insured credit unions that-- ``(i) experience material changes in financial condition or operational risk profile between scheduled examinations; or ``(ii) have failed to comply with Federal or State banking laws and regulations; and ``(C) balance the goals of streamlining the examination cycle for individual insured credit unions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured credit unions and compliance with all applicable laws and regulations.”
“``(B) Combined examinations.--If an insured credit union is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the National Credit Union Administration shall, upon request of the insured credit union, combine two or three such examinations, as specified by the insured credit union, and carry them out at the same time. ``(2) Exception.--Paragraph (1) shall not apply to an insured credit union if the insured credit union is currently subject to a formal enforcement proceeding or order by the National Credit Union Administration.”
“1784) is amended by adding at the end the following: ``(h) Examination Relief for Certain Well Managed and Well Capitalized Insured Credit Unions.-- ``(1) In general.--Notwithstanding any other provision of this section, the following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets: ``(A) Alternating limited-scope examinations.--After an insured credit union receives a full-scope, on-site examination from the National Credit Union Administration, the next examination of the insured credit union by the National Credit Union Administration shall be a limited-scope examination, as determined by the National Credit Union Administration.”
“``(iii) Well managed.--With respect to an insured depository institution, the term `well managed' means that, when the institution was most recently examined by the appropriate Federal banking agency, the institution was found to be well managed, and the institution's composite condition was found to be satisfactory or outstanding.''. (2) Insured credit unions.--Section 204 of the Federal Credit Union Act (12 U.S.C.”
“``(D) Rule of construction.--Nothing in this paragraph may be construed to limit the authority of a Federal banking agency to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured depository institution if the Federal banking agency determines such monitoring, reviews, or examinations are appropriate to ensure safety and soundness or compliance with applicable laws. ``(E) Definitions.--In this paragraph: ``(i) Consumer compliance examination.--The term `consumer compliance examination' means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010). ``(ii) Well capitalized.--The term `well capitalized' has the meaning given that term in section 38(b).”
“``(C) Rulemaking.--Not later than 12 months after the date of enactment of this paragraph, the Federal banking agencies shall issue rules to carry out subparagraph (A), including, with respect to an insured depository institution described under subparagraph (A), to-- ``(i) establish procedures for the limited-scope examinations described in subparagraph (A)(i); ``(ii) establish procedures for reviewing insured depository institutions described under subparagraph (A), that-- [[Page H4715]] ``(I) experience material changes in financial condition or operational risk profile between scheduled examinations; or ``(II) have failed to comply with Federal or State banking laws and regulations; and ``(iii) balance the goals of streamlining the examination cycle for individual insured depository institutions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured depository institutions and compliance with all applicable laws and regulations.”
“``(B) Exception.--Subparagraph (A) shall not apply to an insured depository institution if-- ``(i) the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or ``(ii) a person acquired control of the insured depository institution since the most recent full-scope, on-site examination of the insured depository institution from the appropriate Federal banking agency.”
“``(ii) Combined examinations.--If an insured depository institution is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the appropriate Federal banking agency shall, upon request of the insured depository institution, combine two or three such examinations, as specified by the insured depository institution, and carry them out at the same time.”
“1820(d)) is amended by adding at the end the following: ``(11) Examination relief for certain well managed and well capitalized insured depository institutions.-- ``(A) In general.--Notwithstanding paragraphs (1) and (2), the following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets: ``(i) Alternating limited-scope examinations.--After an insured depository institution receives a full-scope, on-site examination from the appropriate Federal banking agency, the next examination of the insured depository institution by the appropriate Federal banking agency shall be a limited-scope examination, as determined by the appropriate Federal banking agency.”
“SEC. 303. SUPERVISORY MODIFICATIONS FOR APPROPRIATE RISK- BASED TESTING. (a) Examination Relief for Certain Well Managed and Well Capitalized Financial Institutions.-- (1) Insured depository institutions.--Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.”
“``(5) Any final decision of a United States district court made pursuant to a respondent's election under subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.''; (D) in subsection (k)(2)-- (i) by amending subparagraph (E)(ii) to read as follows: ``(ii) Finality of assessment.--If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.''; (ii) by amending subparagraph (H) to read as follows: ``(H) Hearing.--The insured credit union or institution- affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before-- ``(i) the Administration, if such insured credit union or institution-affiliated party submits a request for such hearing within 20 days after the issuance of the notice of assessment; or ``(ii) the appropriate United States district court, if such insured credit union or institution-affiliated party submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.''; and (iii) by amending subparagraph (I)(ii) to read as follows: ``(ii) Appropriateness of penalty not reviewable.--In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.''; and (E) by adding at the end the following: ``(x) Savings Clause.--Nothing in subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii) shall be construed to-- ``(1) limit the authority of the Administration to initiate an administrative enforcement action; or ``(2) impair the validity of any consent order.''.”
“(2) Federal credit union act.--Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended-- (A) in subsection (e), by adding at the end the following: ``(5) Hearing.--With respect to any notice properly issued and served upon an insured credit union, credit union which has insured accounts, or an institution-affiliated party under this subsection, such insured credit union, credit union which has insured accounts, or institution-affiliated party shall be afforded a hearing before-- ``(A) the Administration; or ``(B) if such insured credit union, credit union which has insured accounts, or institution-affiliated party submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.''; (B) in subsection (g), by adding at the end the following: ``(8) Hearing.--With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before-- ``(A) the Administration; or ``(B) if such institution-affiliated party submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.''; (C) in subsection (j)-- (i) in paragraph (1), by striking ``(other than the hearing provided for in subsection (i)(3) of this section)'' and inserting ``(other than the hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii))''; and (ii) by adding at the end the following: ``(4) Any hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.”
“``(5) Any final decision of a United States district court made pursuant to a respondent's election under subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.''; (D) in subsection (i)(2)-- (i) by amending subparagraph (E)(ii) to read as follows: ``(ii) Finality of assessment.--If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.''; (ii) by amending subparagraph (H) to read as follows: ``(H) Hearing.--The insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before-- ``(i) an agency, if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment; or ``(ii) the appropriate United States district court, if such institution or person submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.''; and (iii) by amending subparagraph (I)(ii) to read as follows: ``(ii) Appropriateness of penalty not reviewable.--In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.''; and (E) by adding at the end the following: ``(x) Savings Clause.--Nothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to-- ``(1) limit the authority of a Federal banking agency to initiate an administrative enforcement action; or ``(2) impair the validity of any consent order.''.”
“1818) is amended-- (A) in subsection (b), by adding at the end the following: ``(11) Hearing.--With respect to any notice properly issued and served upon a depository institution or institution- affiliated party under this subsection, such depository institution or institution-affiliated party shall be afforded a hearing before-- ``(A) the appropriate Federal banking agency; or ``(B) if such institution or person submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.''; (B) in subsection (e), by adding at the end the following: ``(8) Hearing.--With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before-- ``(A) the appropriate Federal banking agency; or ``(B) if such party submits a request for such hearing and forum within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice, including those authorized under this subsection.''; (C) in subsection (h)-- (i) in paragraph (1), by striking ``(other than the hearing provided for in subsection (g)(3) of this section)'' and inserting ``(other than the hearing provided for in subsection (b)(11)(B), (e)(8)(B), (g)(3), or (i)(2)(H)(ii))''; and (ii) by adding at the end the following: ``(4) Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.”
“3303), by striking ``Consumer Financial Protection Bureau'' and inserting ``Bureau of Consumer Financial Protection''; and [[Page H4714]] (C) in section 1005 (12 U.S.C. 3304)-- (i) by striking ``One-fifth'' and inserting ``One-fourth''; and (ii) by inserting ``described under section 1003(1)(A)'' after ``agencies''. (f) Election of Forum for Review of Supervisory Enforcement.-- (1) Federal deposit insurance act.--Section 8 of the Federal Deposit Insurance Act (12 U.S.C.”
“3302)-- (i) by striking paragraph (1) and inserting the following: ``(1) the term `Federal financial institutions regulatory agencies'-- ``(A) means the Office of 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; and ``(B) includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;''; and (ii) in paragraph (3), by striking the semicolon at the end and inserting ``, except that for purposes of sections 1013 through 1016, the term `financial institution' does not include a credit union that is not an insured credit union;''; (B) in section 1004(a)(4) (12 U.S.C.”
“(B) Effect.--Nothing in this subsection affects the authority of a Federal banking agency (as defined in section 304(b)) to take enforcement or other supervisory action. (2) Federal credit union act.--Section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) is amended by inserting ``the Bureau of Consumer Financial Protection,'' before ``the Administration'' each place that term appears. (3) Federal financial institutions examination council act.--The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended-- (A) in section 1003 (12 U.S.C.”
“4806) is amended-- (i) in the heading, by striking ``regulatory appeals process, ombudsman,'' and inserting ``ombudsman'' (and by conforming the item relating to such section in the table of contents accordingly); (ii) by striking subsections (a), (b), and (c); (iii) by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively; (iv) in subsection (b), as so redesignated-- (I) in paragraph (2)-- (aa) in subparagraph (B), by striking ``and'' at the end; (bb) in subparagraph (C), by striking the period and inserting ``; and''; and (cc) by adding at the end the following: ``(D) ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.''; and (II) by adding at the end the following: ``(6) Retaliation.--For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution's rights under this section.''; and (v) in paragraph (1)(A) of subsection (c), as so redesignated-- (I) in clause (ii), by striking ``; and'' and inserting a semicolon; (II) in clause (iii), by striking ``; and'' and inserting a semicolon; and (III) by adding at the end the following: ``(iv) any issue specifically listed in an exam report as a matter requiring attention by the institution's management or board of directors; and ``(v) any suspension or removal of an institution's status as eligible for expedited processing of applications, requests, notices, or filings on the grounds of a supervisory or compliance concern, regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report, provided that the conduct at issue did not involve violation of any criminal law; and''.”
“``(i) Rule of Construction.--Nothing in this section may be construed-- ``(1) to affect the right of a Federal financial institutions regulatory agency to take enforcement or other supervisory actions related to a material supervisory determination under review under this section; or ``(2) to prohibit the review under this section of a material supervisory determination with respect to which there is an ongoing enforcement or other supervisory action.''. (e) Additional Amendments.-- (1) Regulatory appeals process, ombudsman, and alternative dispute resolution.-- (A) In general.--Section 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C.”
“``(h) Rulemaking.--The Board shall issue rules, consistent with subchapter II of chapter 5 of title 5, United States Code (commonly referred to as the `Administrative Procedure Act'), to establish procedures for hearings described under this section, including that-- ``(1) a financial institution may appear at the hearing personally or through counsel; ``(2) a financial institution may provide an oral and written presentation at the hearing; ``(3) the Board may ask questions of any person participating in the hearing; ``(4) the hearing shall not be governed by the Federal Rules of Evidence; and ``(5) the Board shall have a verbatim transcript of the hearing prepared.”
“``(g) Retaliation Prohibited.-- ``(1) In general.--A Federal financial institutions regulatory agency may not-- ``(A) retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or ``(B) delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section. ``(2) Retaliation.--For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution's rights under this section.”
“``(f) Annual Report.-- ``(1) In general.--The Board shall report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council on actions taken under this section, including the types of issues that the Board has reviewed and the results of those reviews, including information on each final determination with respect to a material supervisory determination. ``(2) Confidentiality.--In reporting under paragraph (1), the Board shall redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions, and shall anonymize any un-redacted information that could, in the aggregate, identify a financial institution.”
“``(d) Final Decision.--A decision by the Board on an independent review under this section shall-- ``(1) be made not later than 60 days after the record has been closed; and ``(2) be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review. ``(e) Referral of Violations.--If the Board, in carrying out this section, determines that a financial institution has violated a law or regulation, the Board shall refer such determination to the applicable Federal financial institutions regulatory agency.”
“``(4) Standard of review.--The Board's review of a material supervisory determination being reviewed under this subsection shall be de novo, and the Board shall not defer to the opinions of the examiners or the Federal financial institutions regulatory agency, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record. ``(5) Policy matters.--The Board shall conduct reviews under this section applying the policies, regulations, and interpretations of the Federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made.”
“``(2) Right to obtain testimony.--A financial institution electing for a hearing under paragraph (1)(B) shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing, or in advance of the hearing, according to procedures instituted by the Board consistent with those set forth under sections 556 and 557 of title 5, United States Code. ``(3) Basis of decision.--The Board shall issue a written decision based upon the record of the examination, supplemented by the record established before the Board and at any hearing.”
“``(c) Determination; Right to Hearing.-- ``(1) In general.--The Board shall-- ``(A) determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or ``(B) at the election of the financial institution, conduct a hearing, which shall take place not later than 60 days after the petition for review is received by the Board, except that such 60-day period may be extended if both the financial institution and the Board agree to such extension.”
“``(5) Submission of record.--After receiving a written notice of review from a financial institution under this subsection, the Board shall direct the Federal financial institutions regulatory agency that made the material supervisory determination under review to file with the Board the supervisory record of the examination resulting in the material supervisory determination under review.”
“``(4) Information made available to institution.--A financial institution seeking a review of a material supervisory determination may, not later than 7 days after receiving the final examination report, request that the Federal financial institutions regulatory agency that made the material supervisory determination provide the financial institution with all examination and factual information relied upon by the Federal financial institutions regulatory agency in making the material supervisory determination. The Federal financial institutions regulatory agency shall provide such information to the financial institution not later than 14 days after receiving the request.”
“``(3) Identification of determination.--The written notice shall-- ``(A) identify the material supervisory determination that is the subject of the requested independent examination review; ``(B) state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and ``(C) include-- ``(i) a clear and complete statement of all relevant facts and issues; ``(ii) all arguments that the institution wishes to present; and ``(iii) all relevant and material documents in the possession of the institution that the institution wishes to be considered.”
“``(2) Extension.--The institution may file a written request with the Board for an extension of the 60-day time period described under paragraph (1), which shall state good cause for granting the extension. Such request shall be granted in the sole discretion of the Board.”
“3301 et seq.), as amended by subsection (c), is further amended by adding at the end the following: ``SEC. 1016. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY DETERMINATIONS. ``(a) In General.--A financial institution shall have the right to obtain an independent review, as described in this section, of a material supervisory determination contained in a final report of examination. A Federal financial institutions regulatory agency and the Board may not conduct concurrent reviews. ``(b) Notice.-- ``(1) Timing.--A financial institution seeking review of a material supervisory determination under this section shall file a written notice [[Page H4713]] with the Board within 30 days after receiving the final report of examination that is the subject of such review.”
“3302) is amended-- (A) in paragraph (2), by striking ``and'' at the end; and (B) by adding at the end the following: ``(4) the term `Board' means the Board of Independent Examination Review established under section 1015(b); ``(5) the term `material supervisory determination' has the meaning given such term in section 309(c) of the Riegle Community Development and Regulatory Improvement Act of 1994; ``(6) the term `insured depository institution' has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and ``(7) the term `insured credit union' has the meaning given that term in section 101 of the Federal Credit Union Act.''. (d) Right to Independent Review of Material Supervisory Determinations.--The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C.”
“1785(j)) shall apply to the submission of information to the Board by a financial institution or a Federal financial institutions regulatory agency to the same extent as such sections 18(x) and 205(j) apply to the submission of information described in such sections 18(x) and 205(j). ``(3) Sharing of information without waiving privilege.-- The Board shall be considered a `covered agency' for purposes of section 11(t) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)).''. (2) Definitions.--Section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C.”
“``(e) Confidentiality.-- ``(1) In general.--The Board and the Council shall keep confidential-- ``(A) all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information; ``(B) all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and ``(C) all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review. ``(2) Submission of information does not constitute a waiver.--Section 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) and section 205(j) of the Federal Credit Union Act (12 U.S.C.”
“``(d) Duties.--The Board shall-- ``(1) receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of such institutions, concerning completed examinations, examination practices, or examination reports; ``(2) hold meetings, at least once every three months and in locations designed to encourage participation from all sections of the United States, with financial institutions, their representatives, or another entity acting on behalf of such institutions, to discuss examination procedures, examination practices, or examination policies; ``(3) review examination procedures of the Federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency; ``(4) conduct a continuing and regular program of examination quality assurance on a sample for all examination types conducted by the Federal financial institutions regulatory agencies; ``(5) carry out an independent review of any supervisory appeal initiated under section 1016; and ``(6) report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council, on the reviews carried out pursuant to paragraphs (3) and (5), including compliance with the requirements set forth in section 1014 regarding timeliness of examination reports, and the Board's recommendations for improvements in examination procedures, practices, and policies.”
“One- fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies. Annual assessments for such share shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.”
“``(B) Term limitation.--No individual may serve more than 2 full terms on the Board. ``(6) Political affiliation.--Not more than 2 members of the Board shall be members of the same political party. ``(7) Quorum.-- ``(A) In general.--3 members of the Board shall constitute a quorum. ``(B) Initial quorum.--During the 6-month period beginning on the date of enactment of this section, 1 member of the Board shall constitute a quorum until the Board has 3 members. ``(8) Rate of pay.--The annual rate of basic pay for the members of the Board shall be the rate of basic pay for Level IV of the Executive Schedule under section 5315 of title 5, United States Code. ``(c) Staffing.--The Board is authorized to hire staff to support the activities of the Office of Independent Examination Review, and set the salaries of such staff.”
“``(3) Prohibition on certain individuals serving as a board member.--The President may not appoint an individual as a member of the Board if the individual-- ``(A) is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or ``(B) is, or was during the previous 2-year period, employed by a financial institution. ``(4) Consultation.--In appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions. ``(5) Term.-- ``(A) In general.--Each member of the Board shall serve for a term of 3 years. Upon the expiration of a member's terms of office, the member shall continue to serve until the member's successor has been confirmed by the Senate.”