I 

115TH CONGRESS 

2D SESSION H. R. 7394 

To prohibit the Federal financial regulators from requiring compliance with 

the accounting standards update of the Financial Accounting Standards 

Board related to current expected credit loss (‘‘CECL’’), to require 

the Securities and Exchange Commission to take certain impacts of 

a proposed accounting principle into consideration before accepting the 

principle, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 21, 2018 

Mr. LUETKEMEYER (for himself and Mr. BUDD) introduced the following bill; 

which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To prohibit the Federal financial regulators from requiring 

compliance with the accounting standards update of the 

Financial Accounting Standards Board related to current 

expected credit loss (‘‘CECL’’), to require the Securities 

and Exchange Commission to take certain impacts of 

a proposed accounting principle into consideration before 

accepting the principle, 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, 


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•HR 7394 IH

1 SECTION 1. NON-APPLICATION OF THE CECL RULE BY FED2 ERAL FINANCIAL REGULATORS. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, a Federal financial regulator may not require 

5 any person to comply with the CECL Rule under any Fed6 eral statute or rule. 

7 (b) DEFINITIONS.—In this section: 

8 (1) CECL RULE.—The term ‘‘CECL Rule’’ 

9 means the accounting standard contained in the Ac10 counting Standards Update No. 2016–13 of the Fi11 nancial Accounting Standards Board, titled ‘‘Finan12 cial Instruments–Credit Losses (Topic 326): Meas13 urement of Credit Losses on Financial Instruments’’ 

14 issued June 2016. 

15 (2) FEDERAL FINANCIAL REGULATOR.—The 

16 term ‘‘Federal financial regulator’’ means the De17 partment of the Treasury, the Board of Governors 

18 of the Federal Reserve System, the Office of the 

19 Comptroller of the Currency, the Office of Thrift 

20 Supervision, the Securities and Exchange Commis21 sion, the Commodity Futures Trading Commission, 

22 the Federal Deposit Insurance Corporation, the Fed23 eral Housing Finance Agency, and the National 

24 Credit Union Administration. 


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•HR 7394 IH

1 SEC. 2. SEC CONSIDERATIONS WHEN RECOGNIZING AC2 COUNTING PRINCIPLES. 

3 Section 19(b) of the Securities Act of 1933 (15 

4 U.S.C. 77s(b)) is amended by adding at the end the fol5 lowing: 

6 ‘‘(3) CONSIDERATION.—The Commission may 

7 not, after the date of enactment of this paragraph, 

8 recognize any accounting principle as ‘generally ac9 cepted’ under paragraph (1) unless the Commission 

10 first takes into consideration the accounting prin11 ciple’s impact on the broader United States econ12 omy, market stability, and availability of credit (par13 ticularly for small businesses and low- and mod14 erate-income borrowers).’’. 

Æ 


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