TAILOR Act
Bill: H.R.766 | Sponsor: Rep. Loudermilk, Barry (R-GA)
Policy area: Finance and Financial Sector

Summary:
Taking Account of Institutions with Low Operation Risk Act or the TAILOR Act
This bill requires federal financial regulatory agencies to (1) tailor any regulatory actions so as to limit burdens on the institutions involved, with consideration of the risk profiles and business models of those institutions; and (2) report to Congress on specific actions taken to do so, as well as on other related issues. The bill's tailoring requirement applies not only to future regulatory actions but also to regulations adopted within the last seven years.

To require the Federal financial institutions regulatory agencies to 
  take risk profiles and business models of institutions into account 
        when taking regulatory actions, 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 ``Taking Account of Institutions with 
Low Operation Risk Act'' or the ``TAILOR Act''.

SEC. 2. REGULATIONS APPROPRIATE TO BUSINESS MODELS.

    (a) In General.--For any regulatory action occurring after the date 
of the enactment of this Act, each Federal financial institutions 
regulatory agency shall--
            (1) take into consideration the risk profile and business 
        models of each type of institution or class of institutions 
        subject to the regulatory action;
            (2) determine the necessity, appropriateness, and impact of 
        applying such regulatory action to such institutions or classes 
        of institutions; and
            (3) tailor such regulatory action in a manner that limits 
        the regulatory compliance impact, cost, liability risk, and 
        other burdens, as appropriate, for the risk profile and 
        business model of the institution or class of institutions 
        involved.
    (b) Other Considerations.--In carrying out the requirements of 
subsection (a), each Federal financial institutions regulatory agency 
shall consider--
            (1) the impact that such regulatory action, both by itself 
        and in conjunction with the aggregate effect of other 
        regulations, has on the ability of the applicable institution 
        or class of institutions to serve evolving and diverse customer 
        needs;
            (2) the potential impact of examination manuals, regulatory 
        actions taken with respect to third-party service providers, or 
        other regulatory directives that may be in conflict or 
        inconsistent with the tailoring of such regulatory action 
        described in subsection (a)(3); and
            (3) the underlying policy objectives of the regulatory 
        action and statutory scheme involved.
    (c) Notice of Proposed and Final Rulemaking.--Each Federal 
financial institutions regulatory agency shall disclose in every notice 
of proposed rulemaking and in any final rulemaking for a regulatory 
action how the agency has applied subsections (a) and (b).
    (d) Reports to Congress.--
            (1) Individual agency reports.--
                    (A) In general.--Not later than 1 year after the 
                date of the enactment of this Act and annually 
                thereafter, each Federal financial institutions 
                regulatory agency shall report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate on the specific actions taken to tailor the 
                regulatory actions of the agency pursuant to the 
                requirements of this Act.
                    (B) Appearance before the committees.--The head of 
                each Federal financial institution regulatory agency 
                shall appear before the Committee on Financial Services 
                of the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate after 
                each report is made pursuant to subparagraph (A) to 
                testify on the contents of such report.
            (2) FIEC reports.--
                    (A) In general.--Not later than 3 months after each 
                report is submitted under paragraph (1), the Financial 
                Institutions Examination Council shall report to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate on--
                            (i) the extent to which regulatory actions 
                        tailored pursuant to this Act result in 
                        different treatment of similarly situated 
                        institutions of diverse charter types; and
                            (ii) the reasons for such differential 
                        treatment.
                    (B) Appearance before the committees.--The Chairman 
                of the Financial Institutions Examination Council shall 
                appear before the Committee on Financial Services of 
                the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate after 
                each report is made pursuant to subparagraph (A) to 
                testify on the contents of such report.
    (e) Limited Look-Back Application.--
            (1) In general.--Each Federal financial institutions 
        regulatory agency shall conduct a review of all regulations 
        adopted during the period beginning on the date that is seven 
        years before the date of the introduction of this Act in the 
        House of Representatives and ending on the date of the 
        enactment of this Act, and apply the requirements of this Act 
        to such regulations.
            (2) Revision.--If the application of the requirements of 
        this Act to any such regulation requires such regulation to be 
        revised, the applicable Federal financial institutions 
        regulatory agency shall revise such regulation within 3 years 
        of the enactment of this Act.
    (f) Definitions.--In this Act, the following definitions shall 
apply:
            (1) Federal financial institutions regulatory agencies.--
        The term ``Federal financial institutions regulatory agencies'' 
        means the Office of the Comptroller of the Currency, the Board 
        of Governors of the Federal Reserve System, the Federal Deposit 
        Insurance Corporation, the National Credit Union 
        Administration, and the Bureau of Consumer Financial 
        Protection.
            (2) Regulatory action.--The term ``regulatory action'' 
        means any proposed, interim, or final rule or regulation, 
        guidance, or published interpretation.
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