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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5419 Introduced in House (IH)]

<DOC>

114th CONGRESS
  2d Session
                                H. R. 5419

 To amend the Federal Credit Union Act to extend the examination cycle 
 of the National Credit Union Administration to 18 months for certain 
                 credit unions, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 2016

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

_______________________________________________________________________

                                 A BILL

 
 To amend the Federal Credit Union Act to extend the examination cycle 
 of the National Credit Union Administration to 18 months for certain 
                 credit unions, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Union Examination Reform Act 
of 2016''.

SEC. 2. EXTENSION OF EXAMINATION CYCLE OF THE NATIONAL CREDIT UNION 
              ADMINISTRATION TO 18 MONTHS.

    (a) Federal Credit Union Examinations.--Section 106 of the Federal 
Credit Union Act (12 U.S.C. 1756) is amended--
            (1) by striking ``Federal credit unions'' and inserting the 
        following:
    ``(a) In General.--Federal credit unions''; and
            (2) by adding at the end the following:
    ``(b) 18-Month Examination Cycle for Certain Credit Unions.--
            ``(1) In general.--An examination of a Federal credit union 
        described under subsection (a) may only be carried out once 
        during each 18-month period with respect to a Federal credit 
        union that--
                    ``(A) has total assets of less than $1,000,000,000;
                    ``(B) is well capitalized, as such term is defined 
                under section 216(c)(1);
                    ``(C) was found in its most recent examination to 
                be well managed, and its composite rating (under the 
                Uniform Financial Institutions Rating System or an 
                equivalent rating under a comparable rating system)--
                            ``(i) was a 1, in the case of a Federal 
                        credit union that has total assets of more than 
                        $200,000,000; or
                            ``(ii) was a 1 or a 2, in the case of a 
                        Federal credit union that has total assets of 
                        not more than $200,000,000; and
                    ``(D) is not currently subject to a formal 
                enforcement proceeding or order by the Administration.
            ``(2) Safety and soundness exception.--Paragraph (1) shall 
        not apply to a Federal credit union if the Administration 
        determines--
                    ``(A) that such credit union should be examined 
                more often than every 18 months because of safety and 
                soundness concerns; or
                    ``(B) that such credit union has violated the 
                law.''.
    (b) Insured Credit Union Examinations.--Section 204 of the Federal 
Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the 
following:
    ``(h) 18-Month Examination Cycle for Certain Credit Unions.--
            ``(1) In general.--An examination of an insured credit 
        union described under subsection (a) may only be carried out 
        once during each 18-month period with respect to an insured 
        credit union that--
                    ``(A) has total assets of less than $1,000,000,000;
                    ``(B) is well capitalized or adequately 
                capitalized, as such terms are defined, respectively, 
                under section 216(c)(1);
                    ``(C) was found in its most recent examination to 
                be well managed, and its composite rating (under the 
                Uniform Financial Institutions Rating System or an 
                equivalent rating under a comparable rating system)--
                            ``(i) was a 1, in the case of an insured 
                        credit union that has total assets of more than 
                        $200,000,000; or
                            ``(ii) was a 1 or a 2, in the case of an 
                        insured credit union that has total assets of 
                        not more than $200,000,000; and
                    ``(D) is not currently subject to a formal 
                enforcement proceeding or order by the Administration.
            ``(2) Safety and soundness exception.--Paragraph (1) shall 
        not apply to an insured credit union if the Administration 
        determines--
                    ``(A) that such credit union should be examined 
                more often than every 18 months because of safety and 
                soundness concerns; or
                    ``(B) that such credit union has violated the 
                law.''.
    (c) Budget Savings Report.--Not later than the end of the 180-day 
period beginning on the date of the enactment of this Act, the National 
Credit Union Administration shall issue a report to the Congress 
analyzing how the amendments made by this section affect the budget of 
the Administration.
    (d) Rulemaking.--Not later than the end of the 100-day period 
beginning on the date of the enactment of this Act, the National Credit 
Union Administration shall issue regulations to carry out the 
amendments made by this Act.
                                 <all>
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