RESCUE Act for Black and Community Banks
Bill: H.R.154 | Sponsor: Rep. Rush, Bobby L. (D-IL)
Policy area: Finance and Financial Sector

Summary:
Reenergized Economic Sustainability for Community and Urban Entities Act for Black and Community Banks or the RESCUE Act for Black and Community Banks
This bill establishes programs and requirements related to minority banks, Black banks, community banks, women's banks, and low-income credit unions.
The bill establishes the Office of Black and Community Banks in the Office of the Comptroller of the Currency (OCC) to oversee Black and community banks. The OCC and the Securities and Exchange Commission must exempt these banks from specified securities and federal banking regulations in certain circumstances.
The bill also establishes the Minority Bank Deposit Program. The Department of the Treasury must certify a depository institution or credit union upon successful application as a minority bank, a women's bank, or a low-income credit union. Every federal department and agency is directed to implement standards and procedures to ensure the use of such institutions to serve the financial needs of the department or agency.
The Government Accountability Office must study the use of the new markets tax credit, lower-value home mortgages, and blockchain investments.

To provide regulatory relief for Black and community banks, to codify 
       the Minority Bank Deposit Program, 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 ``Reenergized Economic Sustainability 
for Community and Urban Entities Act for Black and Community Banks'' or 
the ``RESCUE Act for Black and Community Banks''.

SEC. 2. REGULATION OF BLACK AND COMMUNITY BANKS.

    (a) Office of Black and Community Banks.--
            (1) Establishment.--There is established within the Office 
        of the Comptroller of the Currency an office to be known as the 
        ``Office of Black and Community Banks''.
            (2) Supervision and examination of black banks and 
        community banks.--The Comptroller of the Currency, acting 
        through the Office of Black and Community Banks, shall 
        supervise and examine Black banks and community banks.
            (3) Regulatory relief.--
                    (A) In general.--The Comptroller shall issue 
                regulations to partially or completely exempt Black 
                banks and community banks from Federal banking statutes 
                and regulations, to the extent the Comptroller 
                determines it appropriate without endangering the 
                safety and soundness of such banks.
                    (B) Treatment of manual underwriting.--For purposes 
                of risk-based capital requirements for Black banks and 
                community banks, the Comptroller shall issue 
                regulations to assign a lower level of risk to loans 
                that are issued by such banks using manual 
                underwriting, in recognition of the individualized 
                scrutiny provided by manual underwriting.
                    (C) Encouraging small-dollar lending.--The 
                Comptroller shall issue regulations to encourage 
                affordable small-dollar lending by Black banks and 
                community banks by providing regulatory flexibility 
                with respect to such lending.
    (b) Regulatory Relief Under the Securities Laws.--
            (1) Investment products.--With respect to investment 
        products sold by a Black bank or a community bank (or an 
        affiliate of such bank) to individuals in the community in 
        which such bank is located, the Securities and Exchange 
        Commission shall issue regulations to partially or completely 
        exempt the bank from the securities laws and regulations issued 
        under the securities laws, to the extent the Commission 
        determines it appropriate without endangering the protection of 
        investors.
            (2) Securities.--
                    (A) In general.--The Securities and Exchange 
                Commission shall issue regulations to reduce the 
                regulatory burden applicable to Black banks and 
                community banks--
                            (i) under the amendments made by the 
                        Jumpstart Our Business Startups Act;
                            (ii) issuing mortgage-backed securities; 
                        and
                            (iii) issuing securities backed by loans 
                        guaranteed by the Small Business Act.
                    (B) Crowdfunding exemption.--Section 4A of the 
                Securities Act of 1933 (15 U.S.C. 77d-1) shall not 
                apply to Black banks or community banks.
    (c) Conforming Change to Definition of Appropriate Federal Banking 
Agency.--Section 3(q)(1) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(q)(1)) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding at the end the following:
                    ``(D) notwithstanding paragraphs (2) and (3), any 
                Black bank or community bank (as such terms are defined 
                under section 5 of the RESCUE Act for Black and 
                Community Banks);''.

SEC. 3. CODIFICATION OF THE MINORITY BANK DEPOSIT PROGRAM.

    (a) In General.--
            (1) In general.--Section 1204 of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 
        note) is amended to read as follows:

``SEC. 1204. EXPANSION OF USE OF MINORITY BANKS, WOMEN'S BANKS, AND 
              LOW-INCOME CREDIT UNIONS.

    ``(a) Minority Bank Deposit Program.--
            ``(1) Establishment.--There is established a program to be 
        known as the `Minority Bank Deposit Program' to expand the use 
        of minority banks, women's banks, and low-income credit unions.
            ``(2) Administration.--The Secretary of the Treasury, 
        acting through the Fiscal Service, shall--
                    ``(A) on application by a depository institution or 
                credit union, certify whether such depository 
                institution or credit union is a minority bank, women's 
                bank, or low-income credit union;
                    ``(B) maintain and publish a list of all depository 
                institutions and credit unions that have been certified 
                pursuant to subparagraph (A);
                    ``(C) periodically distribute the list described in 
                subparagraph (B) to--
                            ``(i) all Federal departments and agencies;
                            ``(ii) interested State and local 
                        governments; and
                            ``(iii) interested private sector 
                        companies; and
                    ``(D) support the creation of ratings, online Black 
                bank resources, and database products, including online 
                lending and investment facilities.
            ``(3) Inclusion of certain entities on list.--A depository 
        institution or credit union that, on the date of the enactment 
        of this section, has a current certification from the Secretary 
        of the Treasury stating that such depository institution or 
        credit union is a minority bank, women's bank, or low-income 
        credit union shall be included on the list described under 
        paragraph (2)(B).
    ``(b) Expanded Use Among Federal Departments and Agencies.--
            ``(1) In general.--Not later than 1 year after the 
        establishment of the program described in subsection (a), the 
        head of each Federal department or agency shall develop and 
        implement standards and procedures to ensure, to the maximum 
        extent possible as permitted by law, the use of minority banks, 
        women's banks, and low-income credit unions to serve the 
        financial needs of each such department or agency.
            ``(2) Minimum requirement.--Notwithstanding paragraph (1), 
        the head of each Federal department or agency shall ensure that 
        at least 10 percent of the financial needs of each such 
        department or agency are met by the use of minority banks, 
        women's banks, and low-income credit unions.
            ``(3) Report to congress.--Not later than 2 years after the 
        establishment of the program described in subsection (a), and 
        annually thereafter, the head of each Federal department or 
        agency shall submit to Congress a report on the actions taken 
        to increase the use of minority banks, women's banks, and low-
        income credit unions to serve the financial needs of each such 
        department or agency.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Credit union.--The term `credit union' has the 
        meaning given the term `insured credit union' in section 101 of 
        the Federal Credit Union Act (12 U.S.C. 1752).
            ``(2) Depository institution.--The term `depository 
        institution' has the meaning given the term `insured depository 
        institution' in section 3 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813).
            ``(3) Low-income credit union.--The term `low-income credit 
        union' means any entity described in section 19(b)(1)(A)(iv) of 
        the Federal Reserve Act.
            ``(4) Minority.--The term `minority' means any Black 
        American, Native American, Hispanic American, or Asian 
        American.
            ``(5) Minority bank.--The term `minority bank' means any 
        bank described in clause (i), (ii), or (iii) of section 
        19(b)(1)(A) of the Federal Reserve Act for which--
                    ``(A) more than 50 percent of the outstanding 
                shares of which are held by 1 or more minority 
                individuals;
                    ``(B) the majority of the directors on the board of 
                directors of which are minority individuals; and
                    ``(C) a significant percentage of senior management 
                positions of which are held by minority individuals.
            ``(6) Women's bank.--The term `women's bank' means any bank 
        described in clause (i), (ii), or (iii) of section 19(b)(1)(A) 
        of the Federal Reserve Act for which--
                    ``(A) more than 50 percent of the outstanding 
                shares of which are held by 1 or more women;
                    ``(B) the majority of the directors on the board of 
                directors of which are women; and
                    ``(C) a significant percentage of senior management 
                positions of which are held by women.''.
            (2) Conforming amendments.--The following provisions are 
        amended by striking ``1204(c)(3)'' and inserting ``1204(c)'':
                    (A) Section 808(b)(3) of the Community Reinvestment 
                Act of 1977 (12 U.S.C. 2907(b)(3)).
                    (B) Section 40(g)(1)(B) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1831q(g)(1)(B)).
                    (C) Section 704B(h)(4) of the Equal Credit 
                Opportunity Act (15 U.S.C. 1691c-2(h)(4)).
    (b) Amendments to the Community Reinvestment Act.--Section 804(b) 
of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(b)) is 
amended to read as follows:
    ``(b) Cooperation With Minority Banks, Women's Banks, and Low-
Income Credit Unions Considered.--
            ``(1) In general.--In assessing and taking into account, 
        under subsection (a), the record of a financial institution, 
        the appropriate Federal financial supervisory agency shall 
        consider as a factor capital investment, loan participation, 
        and other ventures undertaken by the institution in cooperation 
        with minority banks, women's banks, community development 
        financial institutions, and low-income credit unions provided 
        that these activities help meet the credit needs of local 
        communities in which such institutions and credit unions are 
        chartered.
            ``(2) Definitions.--
                    ``(A) FIRREA definitions.--The terms `low-income 
                credit union', `minority bank', and `women's bank' have 
                the meanings given such terms, respectively, in section 
                1204(c) of the Financial Institutions Reform, Recovery, 
                and Enforcement Act of 1989 (12 U.S.C. 1811 note).
                    ``(B) Community development financial 
                institution.--The term `community development financial 
                institution' has the meaning given in section 103(5) of 
                the Riegle Community Development and Regulatory 
                Improvement Act of 1994 (12 U.S.C. 4702(5)).''.
    (c) Considerations When Assessing Financial Inclusion for Federally 
Chartered Financial Institutions.--
            (1) In general.--In assessing and taking into account the 
        record of a federally chartered financial institution under any 
        financial inclusion assessment process created by the 
        Comptroller of the Currency in any rule relating to the 
        chartering of a financial institution, the Comptroller shall 
        consider as a factor capital investment, loan participation, 
        and other ventures undertaken by the bank in cooperation with 
        Black banks, women's banks, community development financial 
        institutions, and low-income credit unions, provided that these 
        activities help meet the financial needs of local communities 
        in which the federally chartered financial institution provides 
        financial products or services.
            (2) Definitions.--For purposes of this section:
                    (A) Community development financial institution.--
                The term ``community development financial 
                institution'' has the meaning given in section 103(5) 
                of the Riegle Community Development and Regulatory 
                Improvement Act of 1994 (12 U.S.C. 4702(5)).
                    (B) Financial inclusion assessment process.--The 
                term ``financial inclusion assessment process'' means 
                any process relating to the chartering of a financial 
                institution whereby the Comptroller of the Currency 
                assesses and takes into account the financial 
                institution's record of meeting the financial needs of 
                the bank's entire community, including low- and 
                moderate-income neighborhoods, consistent with the safe 
                and sound operation of such bank.
                    (C) Financial product or service.--The term 
                ``financial product or service'' has the meaning given 
                such term in section 1002 of the Dodd-Frank Wall Street 
                Reform and Consumer Protection Act (12 U.S.C. 5481).
                    (D) FIRREA definitions.--The terms ``low-income 
                credit union'' and ``women's bank'' have the meanings 
                given such terms, respectively, in section 1204(c) of 
                the Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 1811 note).

SEC. 4. GAO STUDIES.

    (a) New Markets Tax Credit Study.--The Comptroller General of the 
United States shall carry out a study on the award of the new markets 
tax credit by--
            (1) surveying communities and specifically talking to Black 
        banks, community banks, and CDFIs that wish to receive the tax 
        credit about why they are not receiving the tax credit;
            (2) determining where the tax credit money actually went 
        and what it was used for; and
            (3) to the extent possible, using a case study approach.
    (b) Lower-Value Home Mortgage Loan Study.--The Comptroller General 
of the United States shall carry out a study on mortgage loans with a 
principal amount of $100,000 or less, including--
            (1) who is making such loans currently;
            (2) how communities are encouraging such loans;
            (3) what changes could encourage banks and other persons to 
        provide more such loans; and
            (4) any statutory or regulatory changes that the 
        Comptroller believes may be needed to encourage more such 
        loans.
    (c) Blockchain Study.--The Comptroller General of the United States 
shall carry out a study on blockchain technology and whether such 
technology could be used to increase investment by lower-income 
individuals in start-ups and other crowd-funded companies.

SEC. 5. DEFINITIONS.

    For purposes of this Act:
            (1) Black bank.--The term ``Black bank'' means an insured 
        depository institution--
                    (A) more than 50 percent of the ownership or 
                control of which is held by 1 or more Black 
                individuals; and
                    (B) more than 50 percent of the net profit or loss 
                of which accrues to 1 or more Black individuals.
            (2) CDFI.--The term ``CDFI'' has the meaning given the term 
        ``community development financial institution'' under section 
        103 of the Community Development Banking and Financial 
        Institutions Act of 1994.
            (3) Community bank.--The term ``community bank'' means an 
        insured depository institution with less than $100,000,000 in 
        consolidated assets.
            (4) Comptroller.--The term ``Comptroller'' means the 
        Comptroller of the Currency, except when used in the context of 
        the Comptroller General of the United States.
            (5) Insured credit union.--The term ``insured credit 
        union'' has the meaning given such term under section 101 of 
        the Federal Credit Union Act.
            (6) Insured depository institution.--The term ``insured 
        depository institution''--
                    (A) has the meaning given such term under section 3 
                of the Federal Deposit Insurance Act; and
                    (B) includes an insured credit union.
            (7) Securities laws.--The term ``securities laws'' has the 
        meaning given such term under section 3 of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c).
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