I 

118TH CONGRESS 

2D SESSION H. R. 7121 

To place post-employment restrictions on certain former employees of insured 

depository institutions, insured credit unions, and certain agencies, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2024 

Mr. SCHIFF (for himself and Mr. FROST) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To place post-employment restrictions on certain former employees of insured depository institutions, insured credit 

unions, and certain agencies, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Regulators 

5 Revolving Door Enforcement Act’’. 


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1 SEC. 2. RESTRICTION ON EMPLOYMENT OF CERTAIN 

2 FORMER AGENCY EMPLOYEES AND FORMER 

3 SENIOR EMPLOYEES OF INSURED DEPOSI4 TORY INSTITUTIONS AND CREDIT UNIONS. 

5 (a) 2-YEAR RESTRICTION ON AGENCY EMPLOYMENT

6 AND CONSULTING.— 

7 (1) IN GENERAL.—An individual described in 

8 paragraph (2) shall be ineligible for an appointment 

9 to a covered agency, and no officer or employee of 

10 the Federal Government may procure the services of 

11 such individual as a consultant for a covered agency. 

12 (2) RESTRICTION CRITERIA.—An individual de13 scribed in this paragraph is an individual who, dur14 ing the 2-year period ending on the date such indi15 vidual accepts compensation as an employee, officer, 

16 or consultant of a covered agency, was employed as 

17 a financial executive officer by— 

18 (A) an insured depository institution that 

19 was the subject of an official action by such 

20 agency during the 20-year period ending on 

21 such date, including the award of a Federal 

22 contract, an investigation, or the imposition of 

23 a penalty; or 

24 (B) an insured credit union that was the 

25 subject of such an official action by such agency 

26 during the 20-year period ending on such date. 


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1 (b) 2-YEAR RESTRICTION ON PRIVATE EMPLOY2 MENT.—An individual may not, during the 2-year period 

3 after the termination date of the service or employment 

4 of such individual as a senior agency employee at a cov5 ered agency, knowingly accept compensation as an em6 ployee, officer, director, or consultant from— 

7 (1) an insured depository institution regulated 

8 by such agency; or 

9 (2) an insured credit union regulated by such 

10 agency. 

11 SEC. 3. RESTRICTION ON CONTACT WITH COVERED AGEN12 CY BY FORMER AGENCY EMPLOYEES. 

13 An individual may not, during the 2-year period after 

14 the termination date of the service or employment of such 

15 individual as a senior agency employee at a covered agen16 cy, contact such agency on behalf of another individual 

17 or entity with respect to— 

18 (1) a regulation, rule, or proposed rule of such 

19 agency; 

20 (2) a policy of such agency; 

21 (3) the examination activities of such agency; 

22 (4) the distribution of Federal funds from such 

23 agency to an insured depository institution or in24 sured credit union, including through contract; or 

25 (5) the enforcement activities of such agency. 


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1 SEC. 4. REQUIRED DISCLOSURES FOR CERTAIN FORMER 

2 AGENCY EMPLOYEES AND EXECUTIVES OF 

3 INSURED DEPOSITORY INSTITUTIONS AND 

4 INSURED CREDIT UNIONS. 

5 (a) REQUIRED DISCLOSURE FOR CERTAIN FORMER

6 AGENCY EMPLOYEES.— 

7 (1) IN GENERAL.—Not later than 1 year after 

8 the first time an individual who had been a senior 

9 agency employee at a covered agency knowingly ac10 cepts compensation as an employee, officer, director, 

11 or consultant from an insured depository institution 

12 or insured credit union regulated by such agency, 

13 such individual shall submit to the head of such 

14 agency a disclosure containing the following informa15 tion: 

16 (A) The title of each position held by such 

17 individual at such insured depository institution 

18 or insured credit union. 

19 (B) The date on which such individual 

20 began working as an employee, officer, director, 

21 or consultant at such institution or credit 

22 union. 

23 (2) LIMITATION.—Paragraph (1) shall not 

24 apply to an individual on or after the date that is 

25 5 years after the last date on which such individual 

26 was a senior agency employee at a covered agency. 


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1 (b) REQUIRED EMPLOYMENT DISCLOSURE FOR CER2 TAIN EXECUTIVES.— 

3 (1) IN GENERAL.—Not later than 1 year after 

4 the earlier of the first time an individual who was 

5 a financial executive officer becomes a senior agency 

6 employee of a covered agency or enters into a con7 tract with the head of a covered agency to provide 

8 services as a consultant after each period as a finan9 cial executive officer, such individual shall submit to 

10 such head of a covered agency a disclosure, includ11 ing— 

12 (A) the title of each position previously 

13 held by such individual at an insured depository 

14 institution or insured credit union regulated by 

15 such agency; and 

16 (B) the first and late date on which such 

17 individual held each position described in sub18 paragraph (A). 

19 (2) LIMITATION.—Paragraph (1) shall not 

20 apply to an individual who, during the 5-year period 

21 immediately proceeding an appointment or the date 

22 of a contract described in such paragraph, was not 

23 a financial executive officer. 


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1 SEC. 5. TRAINING REQUIREMENT FOR EMPLOYEES OF COV2 ERED AGENCIES. 

3 (a) IN GENERAL.—Not later than 1 year after the 

4 date of the enactment of this Act, and annually thereafter, 

5 each covered agency shall provide a training described in 

6 subsection (b) to each senior agency employee. 

7 (b) TRAINING REQUIREMENTS.—The training re8 quired under subsection (a) shall include information re9 garding— 

10 (1) avoiding conflicts of interest with respect to 

11 insured depository institutions and insured credit 

12 unions; 

13 (2) ethical standards required by the agency 

14 providing such training; 

15 (3) any obligations of senior agency employees 

16 under section 2635.502 of title 5, Code of Federal 

17 Regulations (or any successor regulations); 

18 (4) any legal protections for a whistleblower 

19 who reports a violation of the provisions of this Act, 

20 including— 

21 (A) protections against retaliation; and 

22 (B) any incentive available to a whistle23 blower for reporting such violation; and 

24 (5) such other matters, as determined by the 

25 head of the agency providing such training. 


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1 SEC. 6. REVIEW OF INSURED DEPOSITORY INSTITUTION 

2 AND INSURED CREDIT UNION COMPLIANCE 

3 AND POLICIES. 

4 Not later than 1 year after the date of the enactment 

5 of this Act and every 2 years thereafter, each head of a 

6 covered agency shall conduct a review of each insured de7 pository institution and insured credit union to— 

8 (1) determine if such institution or credit union 

9 is in compliance with the requirements of this Act; 

10 and 

11 (2) examine the policies of such institution and 

12 credit union with respect to the requirements of this 

13 Act. 

14 SEC. 7. PENALTIES. 

15 (a) IN GENERAL.—If the Attorney General deter16 mines that an individual, insured depository institution, 

17 or insured credit union has violated a provision of this Act, 

18 the Attorney General shall impose a civil penalty in an 

19 amount determined by the Attorney General. 

20 (b) CONSIDERATIONS.—In determining the amount 

21 of a penalty under subsection (a), the Attorney General 

22 shall consider— 

23 (1) the severity of such violation, as determined 

24 by the Attorney General; 


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1 (2) the number of penalties previously imposed 

2 on such individual, institution, or credit union under 

3 subsection (a); and 

4 (3) whether such individual, institution, or cred5 it union has been penalized for such violation under 

6 section 216 of title 18, United States Code. 

7 SEC. 8. DEFINITIONS. 

8 In this Act: 

9 (1) COVERED AGENCY.—The term ‘‘covered 

10 agency’’ means the following: 

11 (A) The Board of Governors of the Federal 

12 Reserve System. 

13 (B) The Bureau of Consumer Financial 

14 Protection. 

15 (C) The Federal Deposit Insurance Cor16 poration. 

17 (D) The National Credit Union Adminis18 tration. 

19 (E) The Office of the Comptroller of the 

20 Currency. 

21 (2) FINANCIAL EXECUTIVE OFFICER.—The 

22 term ‘‘financial executive officer’’ means, with re23 spect to an insured depository institution or insured 

24 credit union— 


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1 (A) the president of such institution or 

2 credit union; 

3 (B) a vice president of such institution or 

4 credit union who is the head of a principal busi5 ness unit, division, or function (such as sales, 

6 administration, or finance); 

7 (C) an employee of such institution or 

8 credit union who performs a policymaking func9 tion; or 

10 (D) an officer of a subsidiary of such insti11 tution or credit union who performs a policy12 making function for such institution or credit 

13 union. 

14 (3) INSURED CREDIT UNION.—The term ‘‘in15 sured credit union’’ has the meaning given such 

16 term in section 101 of the Federal Credit Union Act 

17 (12 U.S.C. 1752). 

18 (4) INSURED DEPOSITORY INSTITUTION.— The 

19 term ‘‘insured depository institution’’ has the mean20 ing given such term in section 3 of the Federal De21 posit Insurance Act (12 U.S.C. 1813). 

22 (5) SENIOR AGENCY EMPLOYEE.—The term 

23 ‘‘senior agency employee’’ means a Federal employee 

24 who is— 


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1 (A) employed in a position in the executive 

2 branch for which the rate of basic pay is— 

3 (i) determined under subchapter II of 

4 chapter 53 of title 5, United States Code; 

5 or 

6 (ii) equal to or greater than 86.5 per7 cent of the rate of basic pay for level II of 

8 the Executive Schedule, not including any 

9 allowances, premium pay paid under the 

10 provisions of law cited in section 5547(a) 

11 of such title, or locality-based com12 parability payments under section 5304 of 

13 such title 5, or similar authority; 

14 (B) appointed by the President to a posi15 tion under section 105(a)(2)(A) or 

16 105(a)(2)(B) of title 3, United States Code; 

17 (C) appointed by the Vice President to a 

18 position under section 106(a)(1)(A) or 

19 106(a)(1)(B) of title 3, United States Code; or 

20 (D) an active duty commissioned officer of 

21 the uniformed services serving in a position for 

22 which the pay grade, as specified in section 201 

23 of title 37, United States Code, is pay grade O– 

24 7 or above. 

Æ 


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