I 
115TH CONGRESS 
1ST SESSION H. R. 1264 
To provide an exemption from rules and regulations of the Bureau of Con-
sumer Financial protection for community financial institutions, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 28, 2017 
Mr. WILLIAMS introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To provide an exemption from rules and regulations of the 
Bureau of Consumer Financial protection for community 
financial institutions, 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 ‘‘Community Financial 
Institution Exemption Act’’. 
SEC. 2. EXEMPTION FOR COMMUNITY FINANCIAL INSTITU-
TIONS. 
Section 1022(b) of the Consumer Financial Protec-
tion Act of 2010 (12 U.S.C. 5512(b)) is amended— 
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(1) in paragraph (3), by amending the heading 
to read as follows: ‘‘GENERAL EXEMPTIONS’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) SPECIFIC EXEMPTION FOR COMMUNITY FI-
NANCIAL INSTITUTIONS.— 
‘‘(A) IN GENERAL.—Community financial 
institutions shall be exempt from all rules and 
regulations issued by the Bureau. 
‘‘(B) EXCEPTION.—The Bureau may re-
voke an exemption provided under subpara-
graph (A) with respect to a specific rule or reg-
ulation and a specific class of community finan-
cial institutions if— 
‘‘(i) the Bureau makes a detailed, 
written finding that such class of commu-
nity financial institutions has engaged in a 
pattern or practice of activities that have 
been detrimental to the interests of con-
sumers and are of a type that the specific 
rule or regulation is intended to address; 
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‘‘(ii) the Bureau consults with the 
Federal banking agencies with respect to 
such revocation; and 
‘‘(iii) each Federal banking agency 
provides the Bureau with a written notice 
stating that the Federal banking agency 
agrees with such revocation. 
‘‘(C) EFFECTIVE DATE; EFFECT ON PRIOR 
RULES.— 
‘‘(i) EFFECTIVE
DATE.—This para-
graph shall take effect with respect to 
rules and regulations issued or modified 
after the date of enactment of this para-
graph. 
‘‘(ii) EFFECT ON PRIOR RULES.—This 
paragraph shall not prohibit the Bureau 
from modifying a rule or regulation issued 
prior to the date of enactment of this para-
graph with respect to community financial 
institutions if the effect of such modifica-
tion is to expand a current exemption or to 
reduce the costs and the regulatory burden 
associated with complying with such rule 
or regulation. 
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‘‘(D) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) COMMUNITY FINANCIAL INSTITU-
TION.—The term ‘community financial in-
stitution’ means an insured depository in-
stitution or credit union with less than 
$50,000,000,000 in consolidated assets. 
‘‘(ii) FEDERAL
BANKING
AGENCY.— 
The term ‘Federal banking agency’ means 
the Board of Governors, the Office of the 
Comptroller of the Currency, the Corpora-
tion, and the National Credit Union Ad-
ministration.’’. 
Æ 
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