(iii) the baseline used by the agency to 
measure the likely economic consequences 
of rejecting the petition. 
(2) RESUBMITTAL.—Not later than 90 days 
after receiving a notice of disapproval, a covered per-
son may revise and resubmit a petition to the agency 
under section 6. 
(d) MORATORIUM.—If an agency disapproves a peti-
tion submitted in good faith under this section, the agency 
shall provide the covered person notice and a reasonable 
amount of time before the agency takes an enforcement 
action against the covered person relating to the financial 
innovation that was the subject of the petition. 
(e) JUDICIAL REVIEW.—A covered person may seek 
judicial review of an agency’s determination on a petition 
in accordance with subchapter II of chapter 5 of title 5, 
United States Code, and chapter 7 of title 5, United 
States Code (commonly known as the ‘‘Administrative 
Procedure Act’’). 
SEC. 8. ENFORCEABLE COMPLIANCE AGREEMENT. 
(a) IN GENERAL.—If an agency approves a petition 
under section 7, the covered person may enter into an en-
forceable compliance agreement with the agency, which 
shall include the terms under which the covered person 
may develop or offer the approved financial innovation to 
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the public and any requirements of the covered person and 
any agency with respect to the financial innovation. 
(b) REQUIREMENTS.—Each agency, by rule, shall es-
tablish requirements relating to enforceable compliance 
agreements that include— 
(1) procedures for modifying the terms of the 
agreement; 
(2) consequences for failure to comply with the 
terms of the agreement; 
(3) a compliance examination process that— 
(A) solicits feedback from other agencies 
on the agreement; and 
(B) occurs not less frequently than annu-
ally; 
(4) a termination date for the agreement that 
is at least 1 year after the date on which the agree-
ment is entered into; 
(5) procedures for extending the termination 
date; 
(6) procedures for judicial review of another 
agency’s or State’s challenge to the agreement in ac-
cordance with subchapter II of chapter 5 of title 5, 
United States Code, and chapter 7 of title 5, United 
States Code (commonly known as the ‘‘Administra-
tive Procedure Act’’); and 
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(7) procedures for maintaining the confiden-
tiality of any information disclosed to the agency in 
making the agreement. 
(c) MULTIPARTY AGREEMENTS.—With respect to a 
financial innovation that is the subject of an enforceable 
compliance agreement entered into under this section, an 
agency that did not enter into such enforceable compliance 
agreement may join as a party to the enforceable compli-
ance agreement entered into pursuant to this section. 
(d) LIMITATION ON ENFORCEMENT ACTIONS.— 
(1) IN GENERAL.—If a covered person and an 
agency enter into an enforceable compliance agree-
ment— 
(A) another agency may not commence an 
enforcement action against the covered person 
with respect to the financial innovation that is 
the subject of the enforceable compliance agree-
ment; and 
(B) a State may not commence an enforce-
ment action against the covered person with re-
spect to the financial innovation that is the sub-
ject of the enforceable compliance agreement, if 
the covered person provides the State with— 
(i) the enforcement compliance agree-
ment; and 
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(ii) a statement of policies and proce-
dures the covered person has in place to 
comply with State laws that are applicable 
to the financial innovation. 
(2) 
STATE
EXCEPTION
FOR
CONSUMER 
HARM.—Notwithstanding paragraph (1)(B), a State 
may commence an enforcement action against a cov-
ered person with respect to a financial innovation 
that is the subject of an enforceable compliance 
agreement if, in an action brought by the State in 
a court of competent jurisdiction, the court deter-
mines that the agency’s action was arbitrary and ca-
pricious and the financial innovation has substan-
tially harmed consumers within such State. 
(e) ARBITRATION.—A covered person may elect to ar-
bitrate any action initiated by another person relating to 
a financial innovation that is the subject of the enforceable 
compliance agreement. 
SEC. 9. REPORT TO CONGRESS. 
Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter, the Financial Sta-
bility Oversight Council shall submit to Congress a report 
on the aggregate impact of enforceable compliance agree-
ments entered into under this Act, which shall include— 
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(1) the number and characteristics of the agree-
ments; 
(2) the most innovative and least burdensome 
tools that the agency’s FSIO has implemented for 
achieving regulatory ends; 
(3) strategies implemented to coordinate and 
facilitate interagency cooperation among agency 
FSIOs; 
(4) the existing Federal and State laws, regula-
tions, or practices (including guidance materials, ex-
aminations, and enforcement proceedings and settle-
ments) that the Financial Stability Oversight Coun-
cil identifies as the most burdensome to innovation 
in developing or providing financial products and 
services, that adversely affect competition in the fi-
nancial services industry, or that restrict improve-
ments for consumers of financial products or serv-
ices; and 
(5) an identification of the overlap or frag-
mentation of regulation of financial products or serv-
ices and recommendations for reducing, consoli-
dating, or eliminating such overlap or fragmentation. 
SEC. 10. FUNDING. 
The costs of carrying out the requirements of this 
Act (except as specified in section 5(g)) shall be split 
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equally between, and paid by, each agency for fiscal years 
2017 through 2021. 
Æ 
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