‘‘(2) has not changed its policies and practices 
with regard to disclosing nonpublic personal infor-
mation from the policies and practices that were dis-
closed in the most recent disclosure sent to con-
sumers in accordance with this subsection, 
shall not be required to provide an annual disclosure under 
this subsection until such time as the financial institution 
fails to comply with any criteria described in paragraph 
(1) or (2).’’. 
SEC. 6. CHANGES REQUIRED TO SMALL BANK HOLDING 
COMPANY POLICY STATEMENT ON ASSESS-
MENT OF FINANCIAL AND MANAGERIAL FAC-
TORS. 
(a) SMALL
BANK
HOLDING
COMPANY
POLICY 
STATEMENT ON ASSESSMENT OF FINANCIAL AND MANA-
GERIAL FACTORS.— 
(1) IN GENERAL.—Before the end of the 6- 
month period beginning on the date of the enact-
ment of this Act, the Board of Governors of the 
Federal Reserve System shall publish in the Federal 
Register proposed revisions to the Small Bank Hold-
ing Company Policy Statement on Assessment of Fi-
nancial and Managerial Factors (12 C.F.R. part 
225—appendix C) that provide that the policy shall 
apply to a bank holding company which has pro 
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emcdonald on DSK67QTVN1PROD with BILLS
forma 
consolidated 
assets 
of 
less 
than 
$5,000,000,000 and that— 
(A) is not engaged in any nonbanking ac-
tivities involving significant leverage; and 
(B) does not have a significant amount of 
outstanding debt that is held by the general 
public. 
(2) ADJUSTMENT OF AMOUNT.—The Board of 
Governors of the Federal Reserve System shall an-
nually adjust the dollar amount referred to in para-
graph (1) in the Small Bank Holding Company Pol-
icy Statement on Assessment of Financial and Man-
agerial Factors by an amount equal to the percent-
age increase, for the most recent year, in total assets 
held by all insured depository institutions, as deter-
mined by the Board. 
(b) INCREASE IN DEBT-TO-EQUITY RATIO OF SMALL 
BANK HOLDING COMPANY.—Before the end of the 6- 
month period beginning on the date of the enactment of 
this Act, the Board of Governors of the Federal Reserve 
System shall publish in the Federal Register proposed re-
visions to the Small Bank Holding Company Policy State-
ment on Assessment of Financial and Managerial Factors 
(12 C.F.R. part 225—appendix C) such that the debt-to- 
equity ratio allowable for a small bank holding company 
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in order to remain eligible to pay a corporate dividend and 
to remain eligible for expedited processing procedures 
under Regulation Y of the Board of Governors of the Fed-
eral Reserve System would increase from 1:1 to 3:1. 
SEC. 7. MEMBERSHIP OF BOARD OF GOVERNORS OF THE 
FEDERAL RESERVE SYSTEM. 
(a) INCLUSION
OF
A PERSON WITH COMMUNITY 
BANK EXPERIENCE.—The first undesignated paragraph 
of section 10 of the Federal Reserve Act (12 U.S.C. 241) 
is amended by inserting after the second sentence the fol-
lowing: ‘‘The Board shall at all times have as a member 
at least 1 person with demonstrated experience working 
in or supervising community banks having less than 
$10,000,000,000 in total assets’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of enactment 
of this Act and apply to appointments made on and after 
that effective date, excluding any nomination pending in 
the Senate on that date. 
SEC. 8. DESIGNATION OF RURAL AREA. 
(a) APPLICATION.—Not later than 90 days after the 
date of the enactment of this Act, the Bureau of Consumer 
Financial Protection shall establish an application process 
under which a person who lives or does business in a State 
may, with respect to an area identified by the person in 
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such State that has not been designated by the Bureau 
as a rural area for purposes of a Federal consumer finan-
cial law (as defined under section 1002 of the Consumer 
Financial Protection Act of 2010), apply for such area to 
be so designated. 
(b) EVALUATION CRITERIA.—When evaluating an 
application submitted under subsection (a), the Bureau 
shall take into consideration the following factors: 
(1) Criteria used by the Director of the Bureau 
of the Census for classifying geographical areas as 
rural or urban. 
(2) Criteria used by the Director of the Office 
of Management and Budget to designate counties as 
metropolitan or micropolitan or neither. 
(3) Criteria used by the Secretary of Agri-
culture to determine property eligibility for rural de-
velopment programs. 
(4) The Department of Agriculture rural-urban 
commuting area codes. 
(5) A written opinion provided by the State’s 
bank supervisor, as defined under section 3(r) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(r)). 
(6) Population density. 
(c) PUBLIC COMMENT PERIOD.— 
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(1) IN GENERAL.—Not later than 60 days after 
receiving an application submitted under subsection 
(a), the Bureau shall— 
(A) publish such application in the Federal 
Register; and 
(B) make such application available for 
public comment for not fewer than 90 days. 
(2) LIMITATION
ON
ADDITIONAL
APPLICA-
TIONS.—Nothing in this section shall be construed 
to require the Bureau, during the public comment 
period with respect to an application submitted 
under subsection (a), to accept an additional appli-
cation with respect to the area that is the subject of 
the initial application. 
(d) DECISION ON DESIGNATION.—Not later than 90 
days after the end of the public comment period under 
subsection (c)(1) for an application, the Bureau shall— 
(1) grant or deny such application, in whole or 
in part; and 
(2) publish such grant or denial in the Federal 
Register, along with an explanation of what factors 
the Bureau relied on in making such determination. 
(e) SUBSEQUENT APPLICATIONS.—A decision by the 
Bureau under subsection (d) to deny an application for 
an area to be designated as a rural area shall not preclude 
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