I 

115TH CONGRESS 

1ST SESSION H. R. 1264 

To provide an exemption from rules and regulations of the Bureau of Consumer Financial protection for community financial institutions, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2017 

Mr. WILLIAMS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To provide an exemption from rules and regulations of the 

Bureau of Consumer Financial protection for community 

financial institutions, 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 ‘‘Community Financial 

5 Institution Exemption Act’’. 

6 SEC. 2. EXEMPTION FOR COMMUNITY FINANCIAL INSTITU7 TIONS. 

8 Section 1022(b) of the Consumer Financial Protec9 tion Act of 2010 (12 U.S.C. 5512(b)) is amended— 


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1 (1) in paragraph (3), by amending the heading 

2 to read as follows: ‘‘GENERAL EXEMPTIONS’’; 

3 (2) by redesignating paragraph (4) as para4 graph (5); and 

5 (3) by inserting after paragraph (3) the fol6 lowing: 

7 ‘‘(4) SPECIFIC EXEMPTION FOR COMMUNITY FI8 NANCIAL INSTITUTIONS.— 

9 ‘‘(A) IN GENERAL.—Community financial 

10 institutions shall be exempt from all rules and 

11 regulations issued by the Bureau. 

12 ‘‘(B) EXCEPTION.—The Bureau may re13 voke an exemption provided under subpara14 graph (A) with respect to a specific rule or reg15 ulation and a specific class of community finan16 cial institutions if— 

17 ‘‘(i) the Bureau makes a detailed, 

18 written finding that such class of commu19 nity financial institutions has engaged in a 

20 pattern or practice of activities that have 

21 been detrimental to the interests of con22 sumers and are of a type that the specific 

23 rule or regulation is intended to address; 


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1 ‘‘(ii) the Bureau consults with the 

2 Federal banking agencies with respect to 

3 such revocation; and 

4 ‘‘(iii) each Federal banking agency 

5 provides the Bureau with a written notice 

6 stating that the Federal banking agency 

7 agrees with such revocation. 

8 ‘‘(C) EFFECTIVE DATE; EFFECT ON PRIOR

9 RULES.— 

10 ‘‘(i) EFFECTIVE DATE.—This para11 graph shall take effect with respect to 

12 rules and regulations issued or modified 

13 after the date of enactment of this para14 graph. 

15 ‘‘(ii) EFFECT ON PRIOR RULES.—This 

16 paragraph shall not prohibit the Bureau 

17 from modifying a rule or regulation issued 

18 prior to the date of enactment of this para19 graph with respect to community financial 

20 institutions if the effect of such modifica21 tion is to expand a current exemption or to 

22 reduce the costs and the regulatory burden 

23 associated with complying with such rule 

24 or regulation. 


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1 ‘‘(D) DEFINITIONS.—For purposes of this 

2 paragraph: 

3 ‘‘(i) COMMUNITY FINANCIAL INSTITU4 TION.—The term ‘community financial in5 stitution’ means an insured depository in6 stitution or credit union with less than 

7 $50,000,000,000 in consolidated assets. 

8 ‘‘(ii) FEDERAL BANKING AGENCY.— 

9 The term ‘Federal banking agency’ means 

10 the Board of Governors, the Office of the 

11 Comptroller of the Currency, the Corpora12 tion, and the National Credit Union Ad13 ministration.’’. 

Æ 


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