IB 

Union Calendar No. 446 

115TH CONGRESS 

2D SESSION H. R. 1116 

[Report No. 115–588] 

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 

FEBRUARY 16, 2017 

Mr. TIPTON (for himself, Mr. PITTENGER, Mr. ROYCE of California, Mr. 

POSEY, Mr. WILLIAMS, Mrs. LOVE, Mr. LOUDERMILK, Mr. TROTT, and 

Mr. BARR) introduced the following bill; which was referred to the Committee on Financial Services 

MARCH 6, 2018 

Additional sponsors: Mr. KING of Iowa, Mr. ROSS, Ms. TENNEY, Mr. LATTA, 

Mr. POLIQUIN, Mr. LUCAS, Mr. SANFORD, Mr. HULTGREN, Mr. HARPER, 

Mr. KELLY of Mississippi, Mr. JENKINS of West Virginia, Mr. PETERSON, Mr. MARSHALL, Mr. MCKINLEY, Mr. CRAMER, Mr. RENACCI, Mr. 

BISHOP of Utah, Mr. BACON, Mr. EMMER, Mr. LEWIS of Minnesota, Mr. 

KING of New York, Mr. ARRINGTON, Mr. DESANTIS, Mr. WITTMAN, Mr. 

WALZ, Mr. COFFMAN, Mr. YOUNG of Iowa, Mrs. NOEM, Mr. JOHNSON

of Ohio, Mr. PAULSEN, Mr. VELA, Mr. CHABOT, Mr. GALLAGHER, Mr. 

BABIN, Mr. BRIDENSTINE, Mr. BOST, Mr. BUCK, Mrs. WAGNER, Mr. 

ROTHFUS, Mr. SESSIONS, Mr. HOLLINGSWORTH, Mr. SMITH of Texas, 

Mr. FARENTHOLD, Mr. OLSON, Mr. MACARTHUR, Mr. GROTHMAN, Mrs. 

COMSTOCK, Mr. GUTHRIE, Mr. GOSAR, Ms. JENKINS of Kansas, Mr. 

SENSENBRENNER, Mr. MULLIN, Mr. RICE of South Carolina, Mr. 

ROKITA, Mr. RUSSELL, Mr. DUNCAN of South Carolina, Mrs. MIMI WALTERS of California, Mr. WEBSTER of Florida, Mr. SIMPSON, Mr. 

DESJARLAIS, Mr. RODNEY DAVIS of Illinois, Mr. MESSER, Mr. TURNER, 

Mr. STIVERS, Mr. LAMBORN, Mr. WALBERG, Mr. MARINO, Mr. TIBERI, 

Mr. DUNCAN of Tennessee, Mr. FORTENBERRY, Mr. JOYCE of Ohio, Mr. 

COLLINS of New York, Mr. WOMACK, Mr. GRAVES of Louisiana, Mr. 

PERLMUTTER, Mr. COLE, and Mr. GOTTHEIMER


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•HR 1116 RH

MARCH 6, 2018 

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 1116 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 2017’’ or the 

6 ‘‘TAILOR Act of 2017’’. 

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

9 (a) IN GENERAL.—For any regulatory action occur10 ring after the date of the enactment of this Act, each Fed11 eral financial institutions regulatory agency shall— 

12 (1) take into consideration the risk profile and 

13 business models of each type of institution or class 

14 of institutions subject to the regulatory action; 

15 (2) determine the necessity, appropriateness, 

16 and impact of applying such regulatory action to 

17 such institutions or classes of institutions; and 

18 (3) tailor such regulatory action in a manner 

19 that limits the regulatory compliance impact, cost, li20 ability risk, and other burdens, as appropriate, for 

21 the risk profile and business model of the institution 

22 or class of institutions involved. 

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

24 requirements of subsection (a), each Federal financial in25 stitutions regulatory agency shall consider— 


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

2 by itself and in conjunction with the aggregate effect 

3 of other regulations, has on the ability of the appli4 cable institution or class of institutions to serve 

5 evolving and diverse customer needs; 

6 (2) the potential impact of examination manu7 als, regulatory actions taken with respect to third8 party service providers, or other regulatory directives 

9 that may be in conflict or inconsistent with the tai10 loring of such regulatory action described in sub11 section (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.—Each Federal financial institutions regulatory 

16 agency 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.—Not later than 1 year 

22 after the date of the enactment of this Act and 

23 annually thereafter, each Federal financial in24 stitutions regulatory agency shall report to the 

25 Committee on Financial Services of the House 


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1 of Representatives and the Committee on Bank2 ing, Housing, and Urban Affairs of the Senate 

3 on the specific actions taken to tailor the regu4 latory actions of the agency pursuant to the re5 quirements of this Act. 

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.—Not later than 3 

17 months after each report is submitted under 

18 paragraph (1), the Financial Institutions Ex19 amination Council shall report to the Com20 mittee on Financial Services of the House of 

21 Representatives and the Committee on Bank22 ing, Housing, and Urban Affairs of the Senate 

23 on— 

24 (i) the extent to which regulatory ac25 tions tailored pursuant to this Act result in 


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1 different treatment of similarly situated in2 stitutions of diverse charter types; and 

3 (ii) the reasons for such differential 

4 treatment. 

5 (B) APPEARANCE BEFORE THE COMMIT6 TEES.—The Chairman of the Financial Institu7 tions Examination Council shall appear before 

8 the Committee on Financial Services of the 

9 House of Representatives and the Committee 

10 on Banking, Housing, and Urban Affairs of the 

11 Senate after each report is made pursuant to 

12 subparagraph (A) to testify on the contents of 

13 such report. 

14 (e) LIMITED LOOK-BACK APPLICATION.— 

15 (1) IN GENERAL.—Each Federal financial insti16 tutions regulatory agency shall conduct a review of 

17 all regulations adopted during the period beginning 

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

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

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

22 such regulations. 

23 (2) REVISION.—If the application of the re24 quirements of this Act to any such regulation re25 quires such regulation to be revised, the applicable 


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1 Federal financial institutions regulatory agency shall 

2 revise such regulation within 3 years of the enact3 ment of this Act. 

4 (f) DEFINITIONS.—In this Act, the following defini5 tions shall apply: 

6 (1) FEDERAL FINANCIAL INSTITUTIONS REGU7 LATORY AGENCIES.—The term ‘‘Federal financial in8 stitutions regulatory agencies’’ means the Office of 

9 the Comptroller of the Currency, the Board of Gov10 ernors of the Federal Reserve System, the Federal 

11 Deposit Insurance Corporation, the National Credit 

12 Union Administration, and the Bureau of Consumer 

13 Financial Protection. 

14 (2) REGULATORY ACTION.—The term ‘‘regu15 latory action’’ means any proposed, interim, or final 

16 rule or regulation, guidance, or published interpreta17 tion. 


sradovich on DSK3GMQ082PROD with BILLS
Union Calendar No. 446 

115TH CONGRESS 

2D SESSION H. R. 1116 

[Report No. 115–588] 

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 

MARCH 6, 2018 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


sradovich on DSK3GMQ082PROD with BILLS