Promoting New and Diverse Depository Institutions Act
Bill: H.R.4590 | Sponsor: Rep. Auchincloss, Jake (D-MA)
Policy area: Finance and Financial Sector

Summary:
Promoting New and Diverse Depository Institutions Act
This bill requires federal banking agencies to study and report on the challenges faced by entities attempting to become chartered depository institutions and to develop a strategic plan to assist in the application process. The strategic plan must (1) promote the chartering of minority depository institutions and entities that could be certified as community development financial institutions, and (2) describe actions to increase the number of depository institutions located in underserved areas.
The bill also decreases, beginning September 30, 2022, the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)

To require the Federal banking regulators to jointly conduct a study 
 and develop a strategic plan to address challenges faced by proposed 
    depository institutions seeking de novo depository institution 
                   charters; and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting New and Diverse Depository 
Institutions Act''.

SEC. 2. STUDY AND STRATEGIC PLAN.

    (a) In General.--The Federal banking regulators shall jointly--
            (1) conduct a study about the challenges faced by proposed 
        depository institutions, including proposed minority depository 
        institutions, seeking de novo depository institution charters; 
        and
            (2) submit to the Committee on Financial Services of the 
        House of Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate and publish publically, not 
        later than 18 months after the date of the enactment of this 
        section--
                    (A) an analysis based on the study conducted 
                pursuant to paragraph (1);
                    (B) any findings from the study conducted pursuant 
                to paragraph (1); and
                    (C) any legislative recommendations that the 
                Federal banking regulators developed based on the study 
                conducted pursuant to paragraph (1).
    (b) Strategic Plan.--
            (1) In general.--Not later than 18 months after the date of 
        the enactment of this section, the Federal banking regulators 
        shall jointly submit to the Committee on Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and publish publically 
        a strategic plan based on the study conducted pursuant to 
        subsection (a) and designed to help proposed depository 
        institutions (including proposed minority depository 
        institutions) successfully apply for de novo depository 
        institution charters in a manner that promotes increased 
        availability of banking and financial services, safety and 
        soundness, consumer protection, community reinvestment, 
        financial stability, and a level playing field.
            (2) Contents of strategic plan.--The strategic plan 
        described in paragraph (1) shall--
                    (A) promote the chartering of de novo depository 
                institutions, including--
                            (i) proposed minority depository 
                        institutions; and
                            (ii) proposed depository institutions that 
                        could be certified as community development 
                        financial institutions; and
                    (B) describe actions the Federal banking regulators 
                may take that would increase the number of depository 
                institutions located in geographic areas where 
                consumers lack access to a branch of a depository 
                institution.
    (c) Public Involvement.--When conducting the study and developing 
the strategic plan required by this Act, the Federal banking regulators 
shall invite comments and other feedback from the public to inform the 
study and strategic plan.
    (d) Definitions.--In this Act:
            (1) Depository institution.--The term ``depository 
        institution'' has the meaning given in section 3 of the Federal 
        Deposit Insurance Act, and includes a ``Federal credit union'' 
        and a ``State credit union'' as such terms are defined, 
        respectively, under section 101 of the Federal Credit Union 
        Act.
            (2) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given in section 103 of the Riegle Community Development and 
        Regulatory Improvement Act of 1994.
            (3) Federal banking regulators.--The term ``Federal banking 
        regulators'' means the Board of Governors of the Federal 
        Reserve System, the Comptroller of the Currency, the Federal 
        Deposit Insurance Corporation, the National Credit Union 
        Administration, and the Director of the Bureau of Consumer 
        Financial Protection.
            (4) Minority depository institution.--The term ``minority 
        depository institution'' has the meaning given in section 
        308(b) of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989.
    (e) Reduction.--
            (1) In general.--Subparagraph (A) of section 7(a)(3) of the 
        Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by 
        reducing the dollar figure described in such subparagraph by 
        $5,000,000.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on September 30, 2022.

SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives July 26, 2022.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.