To codify the Minority Bank Deposit Program, and for other purposes.

To codify the Minority Bank Deposit Program, and for other purposes. 1. Findings Congress finds the following: (1) On March 5, 1969, pursuant to Executive Order 11458, the Minority Bank Deposit Program was established as a national program supporting minority-owned business enterprise. It was expanded in 1971 under Executive Order 11625 and in 1979 under Executive Order 12138. The Competitive Equality Banking Act of 1987 ( Public Law 100–86 Public Law 101–73 (2) Under the leadership of President Jimmy Carter, on April 8, 1977, a memorandum for all heads of Federal agencies and departments was signed. This document promoted the use of minority-owned business enterprises by placing deposits in minority banks. The agency assigned to head this program was the Department of the Treasury. (3) The Fiscal Assistant Secretary of the Department of the Treasury is responsible for certifying financial institutions that are eligible for participation in the Minority Bank Deposit Program. (4) Although the program continues today, the overwhelming majority of financial institutions certified under the Minority Bank Deposit Program do not have existing relationships with the Federal agencies which suggests the need for reforms to increase utilization of eligible institutions. 2. Minority Bank Deposit Program (a) In general Section 1204 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1811 1204. Expansion of use of minority banks, women’s banks, and low-income credit unions (a) Minority Bank Deposit Program (1) Establishment There is established a program to be known as the Minority Bank Deposit Program (2) Administration The Secretary of the Treasury, acting through the Fiscal Service, shall— (A) on application by a depository institution or credit union, certify whether such depository institution or credit union is a minority bank, women’s bank, or low-income credit union; (B) maintain and publish a list of all depository institutions and credit unions that have been certified pursuant to subparagraph (A); and (C) periodically distribute the list described in subparagraph (B) to— (i) all Federal departments and agencies; (ii) interested State and local governments; and (iii) interested private sector companies. (3) Inclusion of certain entities on list A depository institution or credit union that, on the date of the enactment of this section, has a current certification from the Secretary of the Treasury stating that such depository institution or credit union is a minority bank, women’s bank, or low-income credit union shall be included on the list described under paragraph (2)(B). (b) Expanded Use Among Federal Departments and Agencies (1) In general Not later than 1 year after the establishment of the program described in subsection (a), the head of each Federal department or agency shall develop and implement standards and procedures to ensure, to the maximum extent possible as permitted by law, the use of minority banks, women’s banks, and low-income credit unions to serve the financial needs of each such department or agency. (2) Report to Congress Not later than 2 years after the establishment of the program described in subsection (a), and annually thereafter, the head of each Federal department or agency shall submit to Congress a report on the actions taken to increase the use of minority banks, women’s banks, and low-income credit unions to serve the financial needs of each such department or agency. (c) Definitions For purposes of this section: (1) Credit union The term credit union insured credit union 12 U.S.C. 1752 (2) Depository institution The term depository institution insured depository institution 12 U.S.C. 1813 (3) Low-income credit union The term low-income credit union (4) Minority The term minority (5) Minority bank The term minority bank (A) more than 50 percent of the outstanding shares of which are held by 1 or more minority individuals; (B) the majority of the directors on the board of directors of which are minority individuals; and (C) a significant percentage of senior management positions of which are held by minority individuals. (6) Women’s bank The term women’s bank (A) more than 50 percent of the outstanding shares of which are held by 1 or more women; (B) the majority of the directors on the board of directors of which are women; and (C) a significant percentage of senior management positions of which are held by women. . (b) Conforming Amendments The following provisions are amended by striking 1204(c)(3) 1204(c) (1) Section 808(b)(3) of the Community Reinvestment Act of 1977 ( 12 U.S.C. 2907(b)(3) (2) Section 40(g)(1)(B) of the Federal Deposit Insurance Act ( 12 U.S.C. 1831q(g)(1)(B) (3) Section 704B(h)(4) of the Equal Credit Opportunity Act ( 15 U.S.C. 1691c–2(h)(4) 3. Amendments to the Community Reinvestment Act Section 804(b) of the Community Reinvestment Act of 1977 ( 12 U.S.C. 2903(b) (b) Cooperation with Minority Banks, Women’s Banks, and Low-Income Credit Unions Considered (1) In general In assessing and taking into account, under subsection (a), the record of a financial institution, the appropriate Federal financial supervisory agency shall consider as a factor capital investment, loan participation, and other ventures undertaken by the institution in cooperation with minority banks, women’s banks, community development financial institutions, and low-income credit unions provided that these activities help meet the credit needs of local communities in which such institutions and credit unions are chartered. (2) Definitions (A) FIRREA definitions The terms low-income credit union minority bank women’s bank 12 U.S.C. 1811 (B) Community development financial institution The term community development financial institution 12 U.S.C. 4702(5) . 4. Considerations when assessing financial inclusion for federally chartered financial institutions (a) In General In assessing and taking into account the record of a federally chartered financial institution under any financial inclusion assessment process created by the Comptroller of the Currency in any rule relating to the chartering of a financial institution, the Comptroller shall consider as a factor capital investment, loan participation, and other ventures undertaken by the bank in cooperation with minority banks, women’s banks, community development financial institutions, and low-income credit unions, provided that these activities help meet the financial needs of local communities in which the federally chartered financial institution provides financial products or services. (b) Definitions For purposes of this section: (1) Community development financial institution The term community development financial institution 12 U.S.C. 4702(5) (2) Financial inclusion assessment process The term financial inclusion assessment process (3) Financial product or service The term financial product or service 12 U.S.C. 5481 (4) FIRREA definitions The terms low-income credit union minority bank women’s bank 12 U.S.C. 1811

Summary: This bill provides statutory authority for the Minority Bank Deposit Program (which encourages the use of minority-owned banks, women-owned banks, and credit unions that serve low-income communities).