Financial Institutions Due Process Act of 2017
This bill amends the Federal Financial Institutions Examination Council Act of 1978 to establish an Independent Examination Review Panel. The panel shall have exclusive jurisdiction of an appeal of a final material supervisory determination of a federal financial institutions regulatory agency.
A financial institution may request from a federal financial institutions regulatory agency a written determination of the agency's: (1) permission to take an action, and (2) interpretation of a law or regulation. An agency must respond to such a request within a specified timeframe.
The bill also establishes timeframes within which a federal financial institutions regulatory agency must: (1) conduct an exit interview with respect to the examination of a financial institution, and (2) provide a final examination report.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 924 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 924
To amend the Federal Financial Institutions Examination Council Act of
1978 to establish a three-judge independent examination review panel.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2017
Mr. Rothfus introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Financial Institutions Examination Council Act of
1978 to establish a three-judge independent examination review panel.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Institutions Due Process
Act of 2017''.
SEC. 2. TIMELINESS OF EXAMINATION REPORTS.
The Federal Financial Institutions Examination Council Act of 1978
(12 U.S.C. 3301 et seq.) is amended by adding at the end the following:
``SEC. 1012. TIMELINESS OF EXAMINATION REPORTS.
``(a) In General.--
``(1) Final examination report.--A Federal financial
institutions regulatory agency shall provide a final
examination report to a financial institution not later than 60
days after the later of--
``(A) the exit interview for an examination of the
institution; or
``(B) the provision of additional information by
the institution relating to the examination.
``(2) Exit interview.--With respect to an examination of a
financial institution by a Federal financial institutions
regulatory agency, if the financial institution is not subject
to a resident examiner program, the exit interview for such
examination shall occur not later than the end of the 9-month
period beginning on the commencement of the examination, except
that such period may be extended by the Federal financial
institutions regulatory agency by providing written notice to
the financial institution describing with particularity the
reasons that a longer period is needed.
``(b) Examination Materials.--Upon the request of a financial
institution, the Federal financial institutions regulatory agency shall
include with a final examination report an appendix listing all
examination or other factual information relied upon by the agency in
support of a material supervisory determination.''.
SEC. 3. INDEPENDENT EXAMINATION REVIEW PANEL.
(a) In General.--The Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by section 2,
is further amended by adding at the end the following new section:
``SEC. 1013. INDEPENDENT EXAMINATION REVIEW PANEL.
``(a) In General.--
``(1) Establishment.--There is established in the executive
branch the Independent Examination Review Panel (in this
section referred to as the `Panel').
``(2) Judges.--The Panel shall consist of three judges,
appointed as follows:
``(A) One judge appointed by the Council with
extensive financial institutions regulatory agency
experience.
``(B) One judge appointed by the Securities and
Exchange Commission with legal and public accounting
experience.
``(C) One judge appointed by the Council, selected
from candidates with private sector senior management-
level experience with legal or public accounting
background and recommended to the Council by a
financial institution or a financial institution trade
association.
``(3) Terms.--
``(A) In general.--Each judge appointed to the
Panel shall serve for a term of 3 years, except as
provided in subparagraph (B). No judge may be appointed
to serve more than 2 terms.
``(B) Terms of initial appointees.--Of the judges
first appointed to the Panel--
``(i) the judge appointed pursuant to
paragraph (2)(A) shall be appointed for a term
of 1 year;
``(ii) the judge appointed pursuant to
paragraph (2)(B) shall be appointed for a term
of 2 years; and
``(iii) the judge appointed pursuant to
paragraph (2)(C) shall be appointed for a term
of 3 years.
``(4) Requirements for appointment.--An individual
appointed under subparagraph (B) or (C) of paragraph (2)
shall--
``(A) be a licensed attorney and a certified public
accountant authorized to practice under the laws of a
State, the District of Columbia, the Commonwealth of
Puerto Rico, or any other territory or possession of
the United States; and
``(B) have relevant subject matter education and
work-related experience, including working knowledge of
generally accepted accounting principles, as determined
by the entity making the appointment.
``(b) Jurisdiction.--The Panel shall have exclusive jurisdiction of
an appeal of a final material supervisory determination of a Federal
financial institutions regulatory agency. The Panel shall determine the
merits of the appeal, after an opportunity for a hearing on the record.
``(c) Standard of Review.--In an appeal heard by the Panel under
this section, the Panel may not defer to the opinions of an examiner or
a Federal financial institutions regulatory agency, but shall
independently determine the appropriateness of the Federal financial
institutions regulatory agency's decision based upon the relevant
statutes, regulations, judicial precedents, and previous decisions of
the Panel.
``(d) Notice.--
``(1) In general.--A financial institution seeking an
appeal under this section shall file a written notice with the
Panel within 30 days after receiving the final material
supervisory determination from the agency, or within 270 days
after receiving the final examination report, whichever occurs
first.
``(2) Contents of notice.--The written notice shall
identify the final material supervisory determination that is
the subject of the appeal and a statement of the reasons why
the financial institution believes such determination should be
modified.
``(e) Information To Be Provided to Institution Prior to Hearing
Before the Panel.--Any information relied upon by a Federal financial
institutions regulatory agency in a final examination report that is
not in the possession of a financial institution requesting an appeal
under this section may be requested by the financial institution and,
if requested, shall be delivered promptly by the agency to the
financial institution.
``(f) Hearing.--If a financial institution requests a hearing
before the Panel in connection with an appeal by the financial
institution under this section, the hearing shall--
``(1) take place not later than 60 days after the date on
which the notice of the appeal was received by the Panel; and
``(2) be conducted pursuant to the procedures set forth
under sections 556 and 557 of title 5, United States Code.
``(g) Decision.--A decision by the Panel on an appeal under this
section shall be made not later than--
``(1) 60 days after the date on which the notice of appeal
is filed with the Panel; or
``(2) 30 days after the date on which a hearing under
subsection (f) has concluded, if a hearing is requested by the
financial institution.
``(h) Right to Judicial Review.--A financial institution and the
Federal financial institution regulatory agency that made the material
supervisory determination appealed under this section shall have the
right to petition for review of the decision of the Panel under this
section by filing a petition for review not later than 60 days after
the date on which the decision was made in the United States Court of
Appeals for the District of Columbia Circuit or the circuit in which
the financial institution is located.
``(i) Reports and Publication.--
``(1) Reports.--The Panel shall, within 90 days of the end
of each calendar year, report final decisions made under
subsection (g) during such calendar year to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives. Such reports may not contain confidential or
privileged information shared by financial institutions.
``(2) Publication.--Any report submitted under paragraph
(1) shall be made available on the Council's website in such a
manner that such reports may serve as precedent for future
disputes.
``(j) Expenses.--
``(1) In general.--The reasonable costs and expenses
incurred by the Panel shall be paid by the Council.
``(2) Salaries.--Compensation for the judges appointed to
the Panel under this section shall be determined by the Council
and based upon the fair market value of the level of service
and time provided considering the training, knowledge, and
experience needed to properly and professionally carry out the
duties required.
``(k) Retaliation Prohibited.--A Federal financial institutions
regulatory agency may not--
``(1) retaliate against a financial institution, including
service providers, or any institution-affiliated party, for
exercising appellate rights under this section; or
``(2) 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.''.
(b) Definition.--Section 1003 of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3302) is amended--
(1) in paragraph (2), by striking ``and'';
(2) in paragraph (3), by adding ``and'' at the end; and
(3) by adding at the end the following new paragraph:
``(4) the term `material supervisory determinations' has
the meaning given such term in section 309(f) of the Riegle
Community Development and Regulatory Improvement Act of 1994
(12 U.S.C. 4806(f)).''.
SEC. 4. TIMELINESS OF REQUIRED PERMISSION, REGULATORY, AND REPORTING
GUIDANCE.
The Federal Financial Institutions Examination Council Act of 1978
(12 U.S.C. 3301 et seq.), as amended by section 3, is further amended
by adding at the end the following new section:
``SEC. 1014. TIMELINESS OF REQUIRED PERMISSION, REGULATORY, AND
REPORTING GUIDANCE.
``(a) Request for Permission or Guidance.--A financial institution
may request a written determination by a Federal financial institutions
regulatory agency of--
``(1) the agency's permission to take an action where
permission is mandated by regulation;
``(2) the agency's interpretation of a law or regulation;
and
``(3) the agency's interpretation of generally accepted
accounting principals or accounting objectives, standards, and
requirements under section 37 of the Federal Deposit Insurance
Act.
``(b) Contents of Request.--A request made under subsection (a)
shall be in writing and contain all the information needed to
communicate to the Federal financial institutions regulatory agency the
following:
``(1) The nature of the request.
``(2) Applicable facts relating to the matter.
``(3) Applicable law, regulation, or generally accepted
accounting principals relating to the matter.
``(4) Discussion relative to the nature of the request
summarizing the financial institution's position or summary of
the request.
``(c) Response to Request.--A Federal financial institutions
regulatory agency receiving a request under subsection (a) shall--
``(1) within 60 days of receiving the request--
``(A) provide the financial institution making the
request with written notification that the agency
received the request and stating whether the request
contains the information required under subsection (b);
and
``(B) if the request does not contain the
information required under subsection (b), provide the
financial institution with an explanation of what
information is missing; and
``(2) within 120 days of receiving the request, if the
request contains the information required under subsection (b),
make a determination on the request and provide the financial
institution with a written notice of such determination.
``(d) Appeal.--For purposes of section 1013(b), the following
actions are deemed a final agency material supervisory determination:
``(1) Any determination made under subsection (c)(2).
``(2) Any failure by a Federal financial institutions
regulatory agency to comply with a deadline require by this
section.
``(3) Any determination by a Federal financial institutions
regulatory agency under subsection (c)(1)(B) that a request
does not contain the information required under subsection (b).
``(e) Reports and Publication.--Each Federal financial institutions
regulatory agency shall, within 120 days after making a determination
under subsection (c)(2), publish a summary of the determination, in
order to offer guidance to the applicable industry. The summary may not
contain confidential or privileged information about the financial
institution, financial institution clients, or agency personnel.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.
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