I 

116TH CONGRESS 

1ST SESSION H. R. 741 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2019 

Mr. TIPTON (for himself, Mr. BUDD, Mr. MARSHALL, Mr. WOMACK, Mr. 

LUCAS, Mr. RODNEY DAVIS of Illinois, Mr. BARR, Mr. KING of New 

York, Mr. LOUDERMILK, Mr. MULLIN, Mr. FORTENBERRY, Mr. LATTA, 

Mr. COLLINS of New York, Mr. BUCK, Mr. JOHNSON of Ohio, Mr. COLE, 

Mr. STIVERS, Mr. ZELDIN, Mr. DAVIDSON of Ohio, Mr. POSEY, Mr. HILL

of Arkansas, Mr. RIGGLEMAN, and Mr. KUSTOFF of Tennessee) 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. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Taking Account of In3 stitutions with Low Operation Risk Act of 2019’’ or the 

4 ‘‘TAILOR Act of 2019’’. 

5 SEC. 2. REGULATIONS APPROPRIATE TO BUSINESS MOD6 ELS. 

7 (a) IN GENERAL.—For any regulatory action occur8 ring after the date of the enactment of this Act, each Fed9 eral financial institutions regulatory agency shall— 

10 (1) take into consideration the risk profile and 

11 business models of each type of institution or class 

12 of institutions subject to the regulatory action; 

13 (2) determine the necessity, appropriateness, 

14 and impact of applying such regulatory action to 

15 such institutions or classes of institutions; and 

16 (3) tailor such regulatory action in a manner 

17 that limits the regulatory compliance impact, cost, li18 ability risk, and other burdens, as appropriate, for 

19 the risk profile and business model of the institution 

20 or class of institutions involved. 

21 (b) OTHER CONSIDERATIONS.—In carrying out the 

22 requirements of subsection (a), each Federal financial in23 stitutions regulatory agency shall consider— 

24 (1) the impact that such regulatory action, both 

25 by itself and in conjunction with the aggregate effect 

26 of other regulations, has on the ability of the appliVerDate Sep 11 2014 22:40 Feb 01, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H741.IH H741

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1 cable institution or class of institutions to serve 

2 evolving and diverse customer needs; 

3 (2) the potential impact of examination manu4 als, regulatory actions taken with respect to third5 party service providers, or other regulatory directives 

6 that may be in conflict or inconsistent with the tai7 loring of such regulatory action described in sub8 section (a)(3); and 

9 (3) the underlying policy objectives of the regu10 latory action and statutory scheme involved. 

11 (c) NOTICE OF PROPOSED AND FINAL RULE12 MAKING.—Each Federal financial institutions regulatory 

13 agency shall disclose in every notice of proposed rule14 making and in any final rulemaking for a regulatory ac15 tion how the agency has applied subsections (a) and (b). 

16 (d) REPORTS TO CONGRESS.— 

17 (1) INDIVIDUAL AGENCY REPORTS.— 

18 (A) IN GENERAL.—Not later than 1 year 

19 after the date of the enactment of this Act and 

20 annually thereafter, each Federal financial in21 stitutions regulatory agency shall report to the 

22 Committee on Financial Services of the House 

23 of Representatives and the Committee on Bank24 ing, Housing, and Urban Affairs of the Senate 

25 on the specific actions taken to tailor the reguVerDate Sep 11 2014 22:40 Feb 01, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H741.IH H741

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1 latory actions of the agency pursuant to the re2 quirements of this Act. 

3 (B) APPEARANCE BEFORE THE COMMIT4 TEES.—The head of each Federal financial in5 stitution regulatory agency shall appear before 

6 the Committee on Financial Services of the 

7 House of Representatives and the Committee 

8 on Banking, Housing, and Urban Affairs of the 

9 Senate after each report is made pursuant to 

10 subparagraph (A) to testify on the contents of 

11 such report. 

12 (2) FIEC REPORTS.— 

13 (A) IN GENERAL.—Not later than 3 

14 months after each report is submitted under 

15 paragraph (1), the Financial Institutions Ex16 amination Council shall report to the Com17 mittee on Financial Services of the House of 

18 Representatives and the Committee on Bank19 ing, Housing, and Urban Affairs of the Senate 

20 on— 

21 (i) the extent to which regulatory ac22 tions tailored pursuant to this Act result in 

23 different treatment of similarly situated in24 stitutions of diverse charter types; and 


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1 (ii) the reasons for such differential 

2 treatment. 

3 (B) APPEARANCE BEFORE THE COMMIT4 TEES.—The Chairman of the Financial Institu5 tions Examination Council shall appear before 

6 the Committee on Financial Services of the 

7 House of Representatives and the Committee 

8 on Banking, Housing, and Urban Affairs of the 

9 Senate after each report is made pursuant to 

10 subparagraph (A) to testify on the contents of 

11 such report. 

12 (e) LIMITED LOOK-BACK APPLICATION.— 

13 (1) IN GENERAL.—Each Federal financial insti14 tutions regulatory agency shall conduct a review of 

15 all regulations adopted during the period beginning 

16 on the date that is seven years before the date of the 

17 introduction of this Act in the House of Representa18 tives and ending on the date of the enactment of 

19 this Act, and apply the requirements of this Act to 

20 such regulations. 

21 (2) REVISION.—If the application of the re22 quirements of this Act to any such regulation re23 quires such regulation to be revised, the applicable 

24 Federal financial institutions regulatory agency shall 


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1 revise such regulation within 3 years of the enact2 ment of this Act. 

3 (f) DEFINITIONS.—In this Act, the following defini4 tions shall apply: 

5 (1) FEDERAL FINANCIAL INSTITUTIONS REGU6 LATORY AGENCIES.—The term ‘‘Federal financial in7 stitutions regulatory agencies’’ means the Office of 

8 the Comptroller of the Currency, the Board of Gov9 ernors of the Federal Reserve System, the Federal 

10 Deposit Insurance Corporation, the National Credit 

11 Union Administration, and the Bureau of Consumer 

12 Financial Protection. 

13 (2) REGULATORY ACTION.—The term ‘‘regu14 latory action’’ means any proposed, interim, or final 

15 rule or regulation, guidance, or published interpreta16 tion. 

Æ 


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