IB 

Union Calendar No. 680 

114TH CONGRESS 

2D SESSION H. R. 2896 

[Report No. 114–870] 

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 

JUNE 25, 2015 

Mr. TIPTON (for himself and Mr. BARR) introduced the following bill; which 

was referred to the Committee on Financial Services 

DECEMBER 12, 2016 

Additional sponsors: Mr. FARENTHOLD, Mr. BLUM, Mr. COFFMAN, Mrs. MIMI

WALTERS of California, Ms. JENKINS of Kansas, Mr. EMMER of Minnesota, Mr. BRIDENSTINE, Mr. KELLY of Pennsylvania, Mr. CRENSHAW, 

Mr. CRAMER, Mr. MCKINLEY, Mr. POSEY, Mr. POLIQUIN, Mr. GOSAR, 

Mr. POMPEO, Mr. RUSSELL, Mr. COLE, Mr. HURT of Virginia, Mr. 

SMITH of Nebraska, Mr. YOUNG of Iowa, Mr. TIBERI, Mr. DUFFY, Mr. 

MULLIN, Mr. KLINE, Mr. DESJARLAIS, Mr. DUNCAN of Tennessee, Mr. 

PAULSEN, Mr. WALBERG, Mr. BUCHANAN, Mr. ROSS, Mr. MICA, Mr. 

BUCK, Mr. BROOKS of Alabama, Mrs. LUMMIS, Mrs. LOVE, Mr. 

FINCHER, Mr. PERLMUTTER, Mr. PITTENGER, Mr. LAMBORN, Mr. 

AMODEI, Mr. JOYCE, Mr. FITZPATRICK, Mr. STIVERS, Mr. WEBSTER of 

Florida, Mr. NEWHOUSE, Mrs. COMSTOCK, Mr. JOLLY, Mr. ASHFORD, 

Mr. SENSENBRENNER, Mr. FORTENBERRY, Mr. THORNBERRY, Mr. 

LUCAS, Mr. JOHNSON of Ohio, Mr. CONAWAY, Mr. DUNCAN of South 

Carolina, Mrs. ELLMERS of North Carolina, Mr. CHABOT, Mr. RENACCI, 

Mr. WILLIAMS, Mr. BOUSTANY, Mr. ABRAHAM, Mr. BOST, Mr. KING of 

New York, Mr. GUTHRIE, Mr. RODNEY DAVIS of Illinois, Mr. LATTA, Mr. 

ROTHFUS, Mr. MILLER of Florida, Mr. COLLINS of New York, Mr. TURNER, Mr. GRAVES of Louisiana, Mr. JENKINS of West Virginia, Mr. 

WEBER of Texas, Mr. HUELSKAMP, Mr. ROYCE, Mr. GUINTA, Mr. 

OLSON, Mr. SHUSTER, Mr. PETERSON, Mr. SMITH of Texas, Mr. 

MARINO, Mrs. WAGNER, Mr. PEARCE, Mr. SCHWEIKERT, Mr. 

MULVANEY, Mr. HILL, Mr. NEUGEBAUER, Mr. GARRETT, Mr. 


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•HR 2896 RH

STUTZMAN, Mr. RICE of South Carolina, Mr. WHITFIELD, Mr. MESSER, 

Mr. LANCE, Mr. KELLY of Mississippi, Mr. CARTER of Texas, Mr. FLORES, Mr. CALVERT, Mr. YOHO, Mr. SANFORD, Mr. ZINKE, Mr. 

MCHENRY, Mr. FORBES, Ms. STEFANIK, Mr. MURPHY of Pennsylvania, 

Mr. GROTHMAN, Mr. HUDSON, Mr. SESSIONS, Mr. SIMPSON, Mr. JODY

B. HICE of Georgia, Mr. BABIN, Mr. WALZ, and Mr. ROKITA

DECEMBER 12, 2016 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

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. 


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•HR 2896 RH

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 ‘‘Taking Account of In5 stitutions with Low Operation Risk Act of 2015’’ or the 

6 ‘‘TAILOR Act of 2015’’. 

7 SEC. 2. REGULATIONS APPROPRIATE TO BUSINESS MOD8 ELS. 

9 (a) IN GENERAL.—For any regulatory action occur10 ring subsequent to enactment of this section, and notwith11 standing any other provision of law, the Federal financial 

12 institutions regulatory agencies shall— 

13 (1) take into consideration the risk profile and 

14 business models of the various institutions or classes 

15 of institutions subject to the regulatory action; 

16 (2) determine the necessity, appropriateness, 

17 and impact of applying such regulatory action to 

18 such institutions or classes of institutions; and 

19 (3) tailor such regulatory action applicable to 

20 such institutions or class of institutions in a manner 

21 that limits the regulatory compliance impact, cost, li22 ability risk, and other burdens as is appropriate for 

23 the risk profile and business model involved. 

24 (b) OTHER CONSIDERATIONS.—In satisfying the re25 quirements of subsection (a) and when implementing such 


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1 regulatory action, the Federal financial institutions regu2 latory agencies shall also consider— 

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

4 by itself and in conjunction with the aggregate effect 

5 of other regulations, has on the ability of the institu6 tion or class of institutions to flexibly serve evolving 

7 and diverse customer needs; 

8 (2) the potential unintended impact of examina9 tion manuals or other regulatory directives that 

10 work in conflict with the tailoring of such regulatory 

11 action described in subsection (a)(3); and 

12 (3) the underlying policy objectives of the regu13 latory action and statutory scheme involved. 

14 (c) NOTICE OF PROPOSED AND FINAL RULE15 MAKING.—The Federal financial institutions regulatory 

16 agencies shall disclose in every notice of proposed rule17 making and in any final rulemaking for a regulatory ac18 tion how the agency has applied subsections (a) and (b). 

19 (d) REPORTS TO CONGRESS.— 

20 (1) INDIVIDUAL AGENCY REPORTS.— 

21 (A) IN GENERAL.—The Federal financial 

22 institutions regulatory agencies shall individ23 ually report to the Committee on Financial 

24 Services of the House of Representatives and 

25 the Committee on Banking, Housing, and 


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1 Urban Affairs of the Senate, within twelve 

2 months of enactment of this section and annu3 ally thereafter, on the specific actions taken to 

4 tailor the agency’s regulatory actions pursuant 

5 to the requirements of this section. 

6 (B) APPEARANCE BEFORE THE COMMIT7 TEES.—The head of each Federal financial in8 stitution regulatory agency shall appear before 

9 the Committee on Financial Services of the 

10 House of Representatives and the Committee 

11 on Banking, Housing, and Urban Affairs of the 

12 Senate after each report is made pursuant to 

13 subparagraph (A), to testify on the contents of 

14 such report. 

15 (2) FIEC REPORTS.— 

16 (A) IN GENERAL.—The Financial Institu17 tions Examination Council shall report to the 

18 Committee on Financial Services of the House 

19 of Representatives and the Committee on Bank20 ing, Housing, and Urban Affairs of the Senate, 

21 within three months after the reports required 

22 under paragraph (1)— 

23 (i) on the extent to which regulatory 

24 actions tailored pursuant to this section re25 sult in differential regulation of similarlyVerDate Sep 11 2014 23:23 Dec 12, 2016 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2896.RH H2896

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1 situated institutions of diverse charter 

2 types with respect to comparable regula3 tions; and 

4 (ii) the reasons for such differential 

5 treatment. 

6 (B) APPEARANCE BEFORE THE COMMIT7 TEES.—The Chairman of the Financial Institu8 tions Examination Council shall appear before 

9 the Committee on Financial Services of the 

10 House of Representatives and the Committee 

11 on Banking, Housing, and Urban Affairs of the 

12 Senate after each report is made pursuant to 

13 subparagraph (A), to testify on the contents of 

14 such report. 

15 (e) LIMITED LOOK-BACK APPLICATION.—The Fed16 eral financial institutions regulatory agencies shall con17 duct a review of all regulations adopted during the period 

18 beginning on the date that is five years before the date 

19 of the introduction of this Act in the House of Representa20 tives and ending on the date of the enactment of this Act 

21 and apply the requirements of this section to such regula22 tions. If the application of the requirements of this section 

23 to any such regulation requires such regulation to be re24 vised, the agency shall revise such regulation within three 

25 years of the enactment of this section. 


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1 (f) DEFINITIONS.—For purposes of this section, the 

2 following definitions shall apply: 

3 (1) FEDERAL FINANCIAL INSTITUTIONS REGU4 LATORY AGENCIES.—The term ‘‘Federal financial in5 stitutions regulatory agencies’’ means the Office of 

6 the Comptroller of the Currency, the Board of Gov7 ernors of the Federal Reserve System, the Federal 

8 Deposit Insurance Corporation, the National Credit 

9 Union Administration, and the Bureau of Consumer 

10 Financial Protection. 

11 (2) REGULATORY ACTION.—The term ‘‘regu12 latory action’’ means any proposed, interim, or final 

13 rule or regulation, guidance, or published interpreta14 tion. 


sradovich on DSK3GMQ082PROD with BILLS
Union Calendar No. 680 

114TH CONGRESS 

2D SESSION H. R. 2896 

[Report No. 114–870] 

A BILL 

To require the Federal financial institutions reguregulatory actions, and for other purposes. models of institutions into account when taking latory agencies to take risk profiles and business 

DECEMBER 12, 2016 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


sradovich on DSK3GMQ082PROD with BILLS