I
117th CONGRESS
1st Session
H. R. 766
IN THE HOUSE OF REPRESENTATIVES
February 3, 2021
Mr. Loudermilk (for himself, Mr. Posey, Mr. Barr, Mr. Williams of Texas, Mr. Hill, Mr. Zeldin, Mr. Budd, Mr. Kustoff, Mr. Hollingsworth, Mr. Rose, Mr. Steil, and Mrs. Wagner) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To require the Federal financial institutions regulatory agencies to take risk profiles and business models of institutions into account when taking regulatory actions, and for other purposes.
Short title
This Act may be cited as the Taking Account of Institutions with Low Operation Risk Act
or the TAILOR Act
.
Regulations appropriate to business models
In general
For any regulatory action occurring after the date of the enactment of this Act, each Federal financial institutions regulatory agency shall—
take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action;
determine the necessity, appropriateness, and impact of applying such regulatory action to such institutions or classes of institutions; and
tailor such regulatory action in a manner that limits the regulatory compliance impact, cost, liability risk, and other burdens, as appropriate, for the risk profile and business model of the institution or class of institutions involved.
Other considerations
In carrying out the requirements of subsection (a), each Federal financial institutions regulatory agency shall consider—
the impact that such regulatory action, both by itself and in conjunction with the aggregate effect of other regulations, has on the ability of the applicable institution or class of institutions to serve evolving and diverse customer needs;
the potential impact of examination manuals, regulatory actions taken with respect to third-party service providers, or other regulatory directives that may be in conflict or inconsistent with the tailoring of such regulatory action described in subsection (a)(3); and
the underlying policy objectives of the regulatory action and statutory scheme involved.
Notice of proposed and final rulemaking
Each Federal financial institutions regulatory agency shall disclose in every notice of proposed rulemaking and in any final rulemaking for a regulatory action how the agency has applied subsections (a) and (b).
Reports to Congress
Individual agency reports
In general
Not later than 1 year after the date of the enactment of this Act and annually thereafter, each Federal financial institutions regulatory agency shall report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the specific actions taken to tailor the regulatory actions of the agency pursuant to the requirements of this Act.
Appearance before the Committees
The head of each Federal financial institution regulatory agency shall appear before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate after each report is made pursuant to subparagraph (A) to testify on the contents of such report.
FIEC reports
In general
Not later than 3 months after each report is submitted under paragraph (1), the Financial Institutions Examination Council shall report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on—
the extent to which regulatory actions tailored pursuant to this Act result in different treatment of similarly situated institutions of diverse charter types; and
the reasons for such differential treatment.
Appearance before the Committees
The Chairman of the Financial Institutions Examination Council shall appear before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate after each report is made pursuant to subparagraph (A) to testify on the contents of such report.
Limited look-Back application
In general
Each Federal financial institutions regulatory agency shall conduct a review of all regulations adopted during the period beginning on the date that is seven years before the date of the introduction of this Act in the House of Representatives and ending on the date of the enactment of this Act, and apply the requirements of this Act to such regulations.
Revision
If the application of the requirements of this Act to any such regulation requires such regulation to be revised, the applicable Federal financial institutions regulatory agency shall revise such regulation within 3 years of the enactment of this Act.
Definitions
In this Act, the following definitions shall apply:
Federal financial institutions regulatory agencies
The term Federal financial institutions regulatory agencies means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Bureau of Consumer Financial Protection.
Regulatory action
The term regulatory action means any proposed, interim, or final rule or regulation, guidance, or published interpretation.
