115TH CONGRESS 
2D SESSION 
H. R. 1116 
AN ACT 
To require the Federal financial institutions regulatory agen-
cies to take risk profiles and business models of institu-
tions into account when taking regulatory actions, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taking Account of In-
stitutions with Low Operation Risk Act of 2017’’ or the 
‘‘TAILOR Act of 2017’’. 
SEC. 2. REGULATIONS APPROPRIATE TO BUSINESS MOD-
ELS. 
(a) IN GENERAL.—For any regulatory action occur-
ring after the date of the enactment of this Act, each Fed-
eral financial institutions regulatory agency shall— 
(1) take into consideration the risk profile and 
business models of each type of institution or class 
of institutions subject to the regulatory action; 
(2) determine the necessity, appropriateness, 
and impact of applying such regulatory action to 
such institutions or classes of institutions; and 
(3) tailor such regulatory action in a manner 
that limits the regulatory compliance impact, cost, li-
ability risk, and other burdens, as appropriate, for 
the risk profile and business model of the institution 
or class of institutions involved. 
(b) OTHER CONSIDERATIONS.—In carrying out the 
requirements of subsection (a), each Federal financial in-
stitutions regulatory agency shall consider— 
(1) the impact that such regulatory action, both 
by itself and in conjunction with the aggregate effect 
of other regulations, has on the ability of the appli-
cable institution or class of institutions to serve 
evolving and diverse customer needs; 
(2) the potential impact of examination manu-
als, regulatory actions taken with respect to third- 
party service providers, or other regulatory directives 
that may be in conflict or inconsistent with the tai-
loring of such regulatory action described in sub-
section (a)(3); and 
(3) the underlying policy objectives of the regu-
latory action and statutory scheme involved. 
(c) NOTICE
OF
PROPOSED
AND
FINAL
RULE-
MAKING.—Each Federal financial institutions regulatory 
agency shall disclose in every notice of proposed rule-
making and in any final rulemaking for a regulatory ac-
tion how the agency has applied subsections (a) and (b). 
(d) REPORTS TO CONGRESS.— 
(1) INDIVIDUAL AGENCY REPORTS.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of the enactment of this Act and 
annually thereafter, each Federal financial in-
stitutions regulatory agency shall report to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
on the specific actions taken to tailor the regu-
latory actions of the agency pursuant to the re-
quirements of this Act. 
(B) APPEARANCE BEFORE THE COMMIT-
TEES.—The head of each Federal financial in-
stitution regulatory agency shall appear before 
the Committee on Financial Services of the 
House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate after each report is made pursuant to 
subparagraph (A) to testify on the contents of 
such report. 
(2) FIEC REPORTS.— 
(A) IN
GENERAL.—Not later than 3 
months after each report is submitted under 
paragraph (1), the Financial Institutions Ex-
amination Council shall report to the Com-
mittee on Financial Services of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
on— 
(i) the extent to which regulatory ac-
tions tailored pursuant to this Act result in 
different treatment of similarly situated in-
stitutions of diverse charter types; and
(ii) the reasons for such differential 
treatment. 
(B) APPEARANCE BEFORE THE COMMIT-
TEES.—The Chairman of the Financial Institu-
tions Examination Council shall appear before 
the Committee on Financial Services of the 
House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate after each report is made pursuant to 
subparagraph (A) to testify on the contents of 
such report. 
(e) LIMITED LOOK-BACK APPLICATION.— 
(1) IN GENERAL.—Each Federal financial insti-
tutions regulatory agency shall conduct a review of 
all regulations adopted during the period beginning 
on the date that is seven years before the date of the 
introduction of this Act in the House of Representa-
tives and ending on the date of the enactment of 
this Act, and apply the requirements of this Act to 
such regulations. 
(2) REVISION.—If the application of the re-
quirements of this Act to any such regulation re-
quires such regulation to be revised, the applicable 
Federal financial institutions regulatory agency shall
revise such regulation within 3 years of the enact-
ment of this Act. 
(f) DEFINITIONS.—In this Act, the following defini-
tions shall apply: 
(1) FEDERAL FINANCIAL INSTITUTIONS REGU-
LATORY AGENCIES.—The term ‘‘Federal financial in-
stitutions regulatory agencies’’ means the Office of 
the Comptroller of the Currency, the Board of Gov-
ernors of the Federal Reserve System, the Federal 
Deposit Insurance Corporation, the National Credit 
Union Administration, and the Bureau of Consumer 
Financial Protection. 
(2) REGULATORY
ACTION.—The term ‘‘regu-
latory action’’ means any proposed, interim, or final 
rule or regulation, guidance, or published interpreta-
tion. 
SEC. 3. REDUCTION OF SURPLUS FUNDS OF FEDERAL RE-
SERVE BANKS. 
(a) IN GENERAL.—Section 7(a)(3)(A) of the Federal 
Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by 
striking 
‘‘$7,500,000,000’’ 
and 
inserting 
‘‘$7,385,714,000’’.
(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect on June 1, 2018. 
Passed the House of Representatives March 14, 
2018. 
Attest: 
Clerk.
115TH CONGRESS 
2D SESSION 
H. R. 1116 
AN ACT 
To require the Federal financial institutions regu-
latory agencies to take risk profiles and business 
models of institutions into account when taking 
regulatory actions, and for other purposes.