I 

115TH CONGRESS 

1ST SESSION H. R. 1116 

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 

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, 

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’’. 


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1 SEC. 2. REGULATIONS APPROPRIATE TO BUSINESS MOD2 ELS. 

3 (a) IN GENERAL.—For any regulatory action occur4 ring after the date of the enactment of this Act, each Fed5 eral financial institutions regulatory agency shall— 

6 (1) take into consideration the risk profile and 

7 business models of each type of institution or class 

8 of institutions subject to the regulatory action; 

9 (2) determine the necessity, appropriateness, 

10 and impact of applying such regulatory action to 

11 such institutions or classes of institutions; and 

12 (3) tailor such regulatory action in a manner 

13 that limits the regulatory compliance impact, cost, li14 ability risk, and other burdens, as appropriate, for 

15 the risk profile and business model of the institution 

16 or class of institutions involved. 

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

18 requirements of subsection (a), each Federal financial in19 stitutions regulatory agency shall consider— 

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

21 by itself and in conjunction with the aggregate effect 

22 of other regulations, has on the ability of the appli23 cable institution or class of institutions to serve 

24 evolving and diverse customer needs; 

25 (2) the potential impact of examination manu26 als, regulatory actions taken with respect to thirdVerDate Sep 11 2014 00:38 Feb 24, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1116.IH H1116

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1 party service providers, or other regulatory directives 

2 that may be in conflict or inconsistent with the tai3 loring of such regulatory action described in sub4 section (a)(3); and 

5 (3) the underlying policy objectives of the regu6 latory action and statutory scheme involved. 

7 (c) NOTICE OF PROPOSED AND FINAL RULE8 MAKING.—Each Federal financial institutions regulatory 

9 agency shall disclose in every notice of proposed rule10 making and in any final rulemaking for a regulatory ac11 tion how the agency has applied subsections (a) and (b). 

12 (d) REPORTS TO CONGRESS.— 

13 (1) INDIVIDUAL AGENCY REPORTS.— 

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

15 after the date of the enactment of this Act and 

16 annually thereafter, each Federal financial in17 stitutions regulatory agency 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 on the specific actions taken to tailor the regu22 latory actions of the agency pursuant to the re23 quirements of this Act. 

24 (B) APPEARANCE BEFORE THE COMMIT25 TEES.—The head of each Federal financial inVerDate Sep 11 2014 00:38 Feb 24, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1116.IH H1116

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1 stitution regulatory agency shall appear before 

2 the Committee on Financial Services of the 

3 House of Representatives and the Committee 

4 on Banking, Housing, and Urban Affairs of the 

5 Senate after each report is made pursuant to 

6 subparagraph (A) to testify on the contents of 

7 such report. 

8 (2) FIEC REPORTS.— 

9 (A) IN GENERAL.—Not later than 3 

10 months after each report is submitted under 

11 paragraph (1), the Financial Institutions Ex12 amination Council shall report to the Com13 mittee on Financial Services of the House of 

14 Representatives and the Committee on Bank15 ing, Housing, and Urban Affairs of the Senate 

16 on— 

17 (i) the extent to which regulatory ac18 tions tailored pursuant to this Act result in 

19 different treatment of similarly situated in20 stitutions of diverse charter types; and 

21 (ii) the reasons for such differential 

22 treatment. 

23 (B) APPEARANCE BEFORE THE COMMIT24 TEES.—The Chairman of the Financial Institu25 tions Examination Council shall appear before 


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1 the Committee on Financial Services of the 

2 House of Representatives and the Committee 

3 on Banking, Housing, and Urban Affairs of the 

4 Senate after each report is made pursuant to 

5 subparagraph (A) to testify on the contents of 

6 such report. 

7 (e) LIMITED LOOK-BACK APPLICATION.— 

8 (1) IN GENERAL.—Each Federal financial insti9 tutions regulatory agency shall conduct a review of 

10 all regulations adopted during the period beginning 

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

12 introduction of this Act in the House of Representa13 tives and ending on the date of the enactment of 

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

15 such regulations. 

16 (2) REVISION.—If the application of the re17 quirements of this Act to any such regulation re18 quires such regulation to be revised, the applicable 

19 Federal financial institutions regulatory agency shall 

20 revise such regulation within 3 years of the enact21 ment of this Act. 

22 (f) DEFINITIONS.—In this Act, the following defini23 tions shall apply: 

24 (1) FEDERAL FINANCIAL INSTITUTIONS REGU25 LATORY AGENCIES.—The term ‘‘Federal financial inVerDate Sep 11 2014 00:38 Feb 24, 2017 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1116.IH H1116

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1 stitutions regulatory agencies’’ means the Office of 

2 the Comptroller of the Currency, the Board of Gov3 ernors of the Federal Reserve System, the Federal 

4 Deposit Insurance Corporation, the National Credit 

5 Union Administration, and the Bureau of Consumer 

6 Financial Protection. 

7 (2) REGULATORY ACTION.—The term ‘‘regu8 latory action’’ means any proposed, interim, or final 

9 rule or regulation, guidance, or published interpreta10 tion. 

Æ 


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