Title: To prohibit the Federal financial regulators from requiring compliance with the accounting standards update of the Financial Accounting Standards Board related to current expected credit loss ("CECL"), to require the Securities and Exchange Commission to take certain impacts of a proposed accounting principle into consideration before accepting the principle, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill prohibits financial regulators from requiring compliance with the current expected credit loss rule issued by the Financial Accounting Standards Board in June 2016.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7394 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7394

To prohibit the Federal financial regulators from requiring compliance 
   with the accounting standards update of the Financial Accounting 
Standards Board related to current expected credit loss (``CECL''), to 
require the Securities and Exchange Commission to take certain impacts 
of a proposed accounting principle into consideration before accepting 
                 the principle, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 21, 2018

  Mr. Luetkemeyer (for himself and Mr. Budd) introduced the following 
bill; which was referred to the Committee on Financial Services, and in 
     addition to the Committee on Agriculture, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To prohibit the Federal financial regulators from requiring compliance 
   with the accounting standards update of the Financial Accounting 
Standards Board related to current expected credit loss (``CECL''), to 
require the Securities and Exchange Commission to take certain impacts 
of a proposed accounting principle into consideration before accepting 
                 the principle, 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. NON-APPLICATION OF THE CECL RULE BY FEDERAL FINANCIAL 
              REGULATORS.

    (a) In General.--Notwithstanding any other provision of law, a 
Federal financial regulator may not require any person to comply with 
the CECL Rule under any Federal statute or rule.
    (b) Definitions.--In this section:
            (1) CECL rule.--The term ``CECL Rule'' means the accounting 
        standard contained in the Accounting Standards Update No. 2016-
        13 of the Financial Accounting Standards Board, titled 
        ``Financial Instruments-Credit Losses (Topic 326): Measurement 
        of Credit Losses on Financial Instruments'' issued June 2016.
            (2) Federal financial regulator.--The term ``Federal 
        financial regulator'' means the Department of the Treasury, the 
        Board of Governors of the Federal Reserve System, the Office of 
        the Comptroller of the Currency, the Office of Thrift 
        Supervision, the Securities and Exchange Commission, the 
        Commodity Futures Trading Commission, the Federal Deposit 
        Insurance Corporation, the Federal Housing Finance Agency, and 
        the National Credit Union Administration.

SEC. 2. SEC CONSIDERATIONS WHEN RECOGNIZING ACCOUNTING PRINCIPLES.

    Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)) is 
amended by adding at the end the following:
            ``(3) Consideration.--The Commission may not, after the 
        date of enactment of this paragraph, recognize any accounting 
        principle as `generally accepted' under paragraph (1) unless 
        the Commission first takes into consideration the accounting 
        principle's impact on the broader United States economy, market 
        stability, and availability of credit (particularly for small 
        businesses and low- and moderate-income borrowers).''.
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