I 
115TH CONGRESS 
1ST SESSION 
H. R. 924 
To amend the Federal Financial Institutions Examination Council Act of 
1978 to establish a three-judge independent examination review panel. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 7, 2017 
Mr. ROTHFUS introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Federal Financial Institutions Examination 
Council Act of 1978 to establish a three-judge inde-
pendent examination review panel. 
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 ‘‘Financial Institutions 
Due Process Act of 2017’’. 
SEC. 2. TIMELINESS OF EXAMINATION REPORTS. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended 
by adding at the end the following: 
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‘‘SEC. 1012. TIMELINESS OF EXAMINATION REPORTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) FINAL EXAMINATION REPORT.—A Federal 
financial institutions regulatory agency shall provide 
a final examination report to a financial institution 
not later than 60 days after the later of— 
‘‘(A) the exit interview for an examination 
of the institution; or 
‘‘(B) the provision of additional informa-
tion by the institution relating to the examina-
tion. 
‘‘(2) EXIT INTERVIEW.—With respect to an ex-
amination of a financial institution by a Federal fi-
nancial institutions regulatory agency, if the finan-
cial institution is not subject to a resident examiner 
program, the exit interview for such examination 
shall occur not later than the end of the 9-month pe-
riod beginning on the commencement of the exam-
ination, except that such period may be extended by 
the Federal financial institutions regulatory agency 
by providing written notice to the financial institu-
tion describing with particularity the reasons that a 
longer period is needed. 
‘‘(b) EXAMINATION MATERIALS.—Upon the request 
of a financial institution, the Federal financial institutions 
regulatory agency shall include with a final examination 
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report an appendix listing all examination or other factual 
information relied upon by the agency in support of a ma-
terial supervisory determination.’’. 
SEC. 3. INDEPENDENT EXAMINATION REVIEW PANEL. 
(a) IN GENERAL.—The Federal Financial Institu-
tions Examination Council Act of 1978 (12 U.S.C. 3301 
et seq.), as amended by section 2, is further amended by 
adding at the end the following new section: 
‘‘SEC. 1013. INDEPENDENT EXAMINATION REVIEW PANEL. 
‘‘(a) IN GENERAL.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the executive branch the Independent Examination 
Review Panel (in this section referred to as the 
‘Panel’). 
‘‘(2) JUDGES.—The Panel shall consist of three 
judges, appointed as follows: 
‘‘(A) One judge appointed by the Council 
with extensive financial institutions regulatory 
agency experience. 
‘‘(B) One judge appointed by the Securi-
ties and Exchange Commission with legal and 
public accounting experience. 
‘‘(C) One judge appointed by the Council, 
selected from candidates with private sector 
senior management-level experience with legal 
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or public accounting background and rec-
ommended to the Council by a financial institu-
tion or a financial institution trade association. 
‘‘(3) TERMS.— 
‘‘(A) IN GENERAL.—Each judge appointed 
to the Panel shall serve for a term of 3 years, 
except as provided in subparagraph (B). No 
judge may be appointed to serve more than 2 
terms. 
‘‘(B) TERMS OF INITIAL APPOINTEES.—Of 
the judges first appointed to the Panel— 
‘‘(i) the judge appointed pursuant to 
paragraph (2)(A) shall be appointed for a 
term of 1 year; 
‘‘(ii) the judge appointed pursuant to 
paragraph (2)(B) shall be appointed for a 
term of 2 years; and 
‘‘(iii) the judge appointed pursuant to 
paragraph (2)(C) shall be appointed for a 
term of 3 years. 
‘‘(4) REQUIREMENTS FOR APPOINTMENT.—An 
individual appointed under subparagraph (B) or (C) 
of paragraph (2) shall— 
‘‘(A) be a licensed attorney and a certified 
public accountant authorized to practice under 
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the laws of a State, the District of Columbia, 
the Commonwealth of Puerto Rico, or any other 
territory or possession of the United States; 
and 
‘‘(B) have relevant subject matter edu-
cation and work-related experience, including 
working knowledge of generally accepted ac-
counting principles, as determined by the entity 
making the appointment. 
‘‘(b) JURISDICTION.—The Panel shall have exclusive 
jurisdiction of an appeal of a final material supervisory 
determination of a Federal financial institutions regu-
latory agency. The Panel shall determine the merits of the 
appeal, after an opportunity for a hearing on the record. 
‘‘(c) STANDARD OF REVIEW.—In an appeal heard by 
the Panel under this section, the Panel may not defer to 
the opinions of an examiner or a Federal financial institu-
tions regulatory agency, but shall independently determine 
the appropriateness of the Federal financial institutions 
regulatory agency’s decision based upon the relevant stat-
utes, regulations, judicial precedents, and previous deci-
sions of the Panel. 
‘‘(d) NOTICE.— 
‘‘(1) IN GENERAL.—A financial institution seek-
ing an appeal under this section shall file a written 
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notice with the Panel within 30 days after receiving 
the final material supervisory determination from 
the agency, or within 270 days after receiving the 
final examination report, whichever occurs first. 
‘‘(2) CONTENTS OF NOTICE.—The written no-
tice shall identify the final material supervisory de-
termination that is the subject of the appeal and a 
statement of the reasons why the financial institu-
tion believes such determination should be modified. 
‘‘(e) INFORMATION TO BE PROVIDED TO INSTITU-
TION PRIOR TO HEARING BEFORE THE PANEL.—Any in-
formation relied upon by a Federal financial institutions 
regulatory agency in a final examination report that is not 
in the possession of a financial institution requesting an 
appeal under this section may be requested by the finan-
cial institution and, if requested, shall be delivered 
promptly by the agency to the financial institution. 
‘‘(f) HEARING.—If a financial institution requests a 
hearing before the Panel in connection with an appeal by 
the financial institution under this section, the hearing 
shall— 
‘‘(1) take place not later than 60 days after the 
date on which the notice of the appeal was received 
by the Panel; and 
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‘‘(2) be conducted pursuant to the procedures 
set forth under sections 556 and 557 of title 5, 
United States Code. 
‘‘(g) DECISION.—A decision by the Panel on an ap-
peal under this section shall be made not later than— 
‘‘(1) 60 days after the date on which the notice 
of appeal is filed with the Panel; or 
‘‘(2) 30 days after the date on which a hearing 
under subsection (f) has concluded, if a hearing is 
requested by the financial institution. 
‘‘(h) RIGHT TO JUDICIAL REVIEW.—A financial insti-
tution and the Federal financial institution regulatory 
agency that made the material supervisory determination 
appealed under this section shall have the right to petition 
for review of the decision of the Panel under this section 
by filing a petition for review not later than 60 days after 
the date on which the decision was made in the United 
States Court of Appeals for the District of Columbia Cir-
cuit or the circuit in which the financial institution is lo-
cated. 
‘‘(i) REPORTS AND PUBLICATION.— 
‘‘(1) REPORTS.—The Panel shall, within 90 
days of the end of each calendar year, report final 
decisions made under subsection (g) during such cal-
endar year to the Committee on Banking, Housing, 
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and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representa-
tives. Such reports may not contain confidential or 
privileged information shared by financial institu-
tions. 
‘‘(2) PUBLICATION.—Any report submitted 
under paragraph (1) shall be made available on the 
Council’s website in such a manner that such re-
ports may serve as precedent for future disputes. 
‘‘(j) EXPENSES.— 
‘‘(1) IN GENERAL.—The reasonable costs and 
expenses incurred by the Panel shall be paid by the 
Council. 
‘‘(2) SALARIES.—Compensation for the judges 
appointed to the Panel under this section shall be 
determined by the Council and based upon the fair 
market value of the level of service and time pro-
vided considering the training, knowledge, and expe-
rience needed to properly and professionally carry 
out the duties required. 
‘‘(k) RETALIATION PROHIBITED.—A Federal finan-
cial institutions regulatory agency may not— 
‘‘(1) retaliate against a financial institution, in-
cluding service providers, or any institution-affiliated 
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party, for exercising appellate rights under this sec-
tion; or 
‘‘(2) delay or deny any agency action that 
would benefit a financial institution or any institu-
tion-affiliated party on the basis that an appeal 
under this section is pending under this section.’’. 
(b) DEFINITION.—Section 1003 of the Federal Fi-
nancial Institutions Examination Council Act of 1978 (12 
U.S.C. 3302) is amended— 
(1) in paragraph (2), by striking ‘‘and’’; 
(2) in paragraph (3), by adding ‘‘and’’ at the 
end; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) the term ‘material supervisory determina-
tions’ has the meaning given such term in section 
309(f) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (12 U.S.C. 
4806(f)).’’. 
SEC. 4. TIMELINESS OF REQUIRED PERMISSION, REGU-
LATORY, AND REPORTING GUIDANCE. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended 
by section 3, is further amended by adding at the end the 
following new section: 
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‘‘SEC. 1014. TIMELINESS OF REQUIRED PERMISSION, REGU-
LATORY, AND REPORTING GUIDANCE. 
‘‘(a) REQUEST FOR PERMISSION OR GUIDANCE.—A 
financial institution may request a written determination 
by a Federal financial institutions regulatory agency of— 
‘‘(1) the agency’s permission to take an action 
where permission is mandated by regulation; 
‘‘(2) the agency’s interpretation of a law or reg-
ulation; and 
‘‘(3) the agency’s interpretation of generally ac-
cepted accounting principals or accounting objec-
tives, standards, and requirements under section 37 
of the Federal Deposit Insurance Act. 
‘‘(b) CONTENTS
OF REQUEST.—A request made 
under subsection (a) shall be in writing and contain all 
the information needed to communicate to the Federal fi-
nancial institutions regulatory agency the following: 
‘‘(1) The nature of the request. 
‘‘(2) Applicable facts relating to the matter. 
‘‘(3) Applicable law, regulation, or generally ac-
cepted accounting principals relating to the matter. 
‘‘(4) Discussion relative to the nature of the re-
quest summarizing the financial institution’s posi-
tion or summary of the request. 
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‘‘(c) RESPONSE TO REQUEST.—A Federal financial 
institutions regulatory agency receiving a request under 
subsection (a) shall— 
‘‘(1) within 60 days of receiving the request— 
‘‘(A) provide the financial institution mak-
ing the request with written notification that 
the agency received the request and stating 
whether the request contains the information 
required under subsection (b); and 
‘‘(B) if the request does not contain the in-
formation required under subsection (b), pro-
vide the financial institution with an expla-
nation of what information is missing; and 
‘‘(2) within 120 days of receiving the request, 
if the request contains the information required 
under subsection (b), make a determination on the 
request and provide the financial institution with a 
written notice of such determination. 
‘‘(d) APPEAL.—For purposes of section 1013(b), the 
following actions are deemed a final agency material su-
pervisory determination: 
‘‘(1) Any determination made under subsection 
(c)(2). 
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‘‘(2) Any failure by a Federal financial institu-
tions regulatory agency to comply with a deadline re-
quire by this section. 
‘‘(3) Any determination by a Federal financial 
institutions regulatory agency under subsection 
(c)(1)(B) that a request does not contain the infor-
mation required under subsection (b). 
‘‘(e) REPORTS AND PUBLICATION.—Each Federal fi-
nancial institutions regulatory agency shall, within 120 
days after making a determination under subsection 
(c)(2), publish a summary of the determination, in order 
to offer guidance to the applicable industry. The summary 
may not contain confidential or privileged information 
about the financial institution, financial institution clients, 
or agency personnel.’’. 
Æ 
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