Title: To codify the Minority Bank Deposit Program, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill provides statutory authority for the Minority Bank Deposit Program (which encourages the use of minority-owned banks, women-owned banks, and credit unions that serve low-income communities).

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3741 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3741

  To codify the Minority Bank Deposit Program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 12, 2017

 Mr. Meeks (for himself, Mr. Evans, Mrs. Beatty, Ms. Maxine Waters of 
California, Mr. Clay, Mr. Al Green of Texas, Ms. Sewell of Alabama, Ms. 
   Jackson Lee, Mr. Lawson of Florida, and Mr. Payne) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  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. FINDINGS.

    Congress finds the following:
            (1) On March 5, 1969, pursuant to Executive Order 11458, 
        the Minority Bank Deposit Program was established as a national 
        program supporting minority-owned business enterprise. It was 
        expanded in 1971 under Executive Order 11625 and in 1979 under 
        Executive Order 12138. The Competitive Equality Banking Act of 
        1987 (Public Law 100-86) and the Financial Institutions Reform, 
        Recovery and Enforcement Act of 1989 (Public Law 101-73) 
        include provisions supporting the intent of the Minority Bank 
        Deposit Program.
            (2) Under the leadership of President Jimmy Carter, on 
        April 8, 1977, a memorandum for all heads of Federal agencies 
        and departments was signed. This document promoted the use of 
        minority-owned business enterprises by placing deposits in 
        minority banks. The agency assigned to head this program was 
        the Department of the Treasury.
            (3) The Fiscal Assistant Secretary of the Department of the 
        Treasury is responsible for certifying financial institutions 
        that are eligible for participation in the Minority Bank 
        Deposit Program.
            (4) Although the program continues today, the overwhelming 
        majority of financial institutions certified under the Minority 
        Bank Deposit Program do not have existing relationships with 
        the Federal agencies which suggests the need for reforms to 
        increase utilization of eligible institutions.

SEC. 2. MINORITY BANK DEPOSIT PROGRAM.

    (a) 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); and
                    ``(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.
            ``(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) 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--
                    ``(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--
                    ``(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.''.
    (b) Conforming Amendments.--The following provisions are amended by 
striking ``1204(c)(3)'' and inserting ``1204(c)'':
            (1) Section 808(b)(3) of the Community Reinvestment Act of 
        1977 (12 U.S.C. 2907(b)(3)).
            (2) Section 40(g)(1)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831q(g)(1)(B)).
            (3) Section 704B(h)(4) of the Equal Credit Opportunity Act 
        (15 U.S.C. 1691c-2(h)(4)).

SEC. 3. 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)).''.

SEC. 4. CONSIDERATIONS WHEN ASSESSING FINANCIAL INCLUSION FOR FEDERALLY 
              CHARTERED FINANCIAL INSTITUTIONS.

    (a) 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 minority 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.
    (b) Definitions.--For purposes of this section:
            (1) 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)).
            (2) 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.
            (3) 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).
            (4) 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).
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