Title: Financial Institutions Due Process Act of 2017
Policy area: Finance and Financial Sector

Summary:
Financial Institutions Due Process Act of 2017
This bill amends the Federal Financial Institutions Examination Council Act of 1978 to establish an Independent Examination Review Panel. The panel shall have exclusive jurisdiction of an appeal of a final material supervisory determination of a federal financial institutions regulatory agency.
A financial institution may request from a federal financial institutions regulatory agency a written determination of the agency's: (1) permission to take an action, and (2) interpretation of a law or regulation. An agency must respond to such a request within a specified timeframe.
The bill also establishes timeframes within which a federal financial institutions regulatory agency must: (1) conduct an exit interview with respect to the examination of a financial institution, and (2) provide a final examination report.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 924 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 924

To amend the Federal Financial Institutions Examination Council Act of 
 1978 to establish a three-judge independent examination review panel.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 7, 2017

 Mr. Rothfus introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Financial Institutions Examination Council Act of 
 1978 to establish a three-judge independent examination review panel.

    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 ``Financial Institutions Due Process 
Act of 2017''.

SEC. 2. TIMELINESS OF EXAMINATION REPORTS.

    The Federal Financial Institutions Examination Council Act of 1978 
(12 U.S.C. 3301 et seq.) is amended by adding at the end the following:

``SEC. 1012. TIMELINESS OF EXAMINATION REPORTS.

    ``(a) In General.--
            ``(1) Final examination report.--A Federal financial 
        institutions regulatory agency shall provide a final 
        examination report to a financial institution not later than 60 
        days after the later of--
                    ``(A) the exit interview for an examination of the 
                institution; or
                    ``(B) the provision of additional information by 
                the institution relating to the examination.
            ``(2) Exit interview.--With respect to an examination of a 
        financial institution by a Federal financial institutions 
        regulatory agency, if the financial institution is not subject 
        to a resident examiner program, the exit interview for such 
        examination shall occur not later than the end of the 9-month 
        period beginning on the commencement of the examination, except 
        that such period may be extended by the Federal financial 
        institutions regulatory agency by providing written notice to 
        the financial institution describing with particularity the 
        reasons that a longer period is needed.
    ``(b) Examination Materials.--Upon the request of a financial 
institution, the Federal financial institutions regulatory agency shall 
include with a final examination report an appendix listing all 
examination or other factual information relied upon by the agency in 
support of a material supervisory determination.''.

SEC. 3. INDEPENDENT EXAMINATION REVIEW PANEL.

    (a) In General.--The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by section 2, 
is further amended by adding at the end the following new section:

``SEC. 1013. INDEPENDENT EXAMINATION REVIEW PANEL.

    ``(a) In General.--
            ``(1) Establishment.--There is established in the executive 
        branch the Independent Examination Review Panel (in this 
        section referred to as the `Panel').
            ``(2) Judges.--The Panel shall consist of three judges, 
        appointed as follows:
                    ``(A) One judge appointed by the Council with 
                extensive financial institutions regulatory agency 
                experience.
                    ``(B) One judge appointed by the Securities and 
                Exchange Commission with legal and public accounting 
                experience.
                    ``(C) One judge appointed by the Council, selected 
                from candidates with private sector senior management-
                level experience with legal or public accounting 
                background and recommended to the Council by a 
                financial institution or a financial institution trade 
                association.
            ``(3) Terms.--
                    ``(A) In general.--Each judge appointed to the 
                Panel shall serve for a term of 3 years, except as 
                provided in subparagraph (B). No judge may be appointed 
                to serve more than 2 terms.
                    ``(B) Terms of initial appointees.--Of the judges 
                first appointed to the Panel--
                            ``(i) the judge appointed pursuant to 
                        paragraph (2)(A) shall be appointed for a term 
                        of 1 year;
                            ``(ii) the judge appointed pursuant to 
                        paragraph (2)(B) shall be appointed for a term 
                        of 2 years; and
                            ``(iii) the judge appointed pursuant to 
                        paragraph (2)(C) shall be appointed for a term 
                        of 3 years.
            ``(4) Requirements for appointment.--An individual 
        appointed under subparagraph (B) or (C) of paragraph (2) 
        shall--
                    ``(A) be a licensed attorney and a certified public 
                accountant authorized to practice under the laws of a 
                State, the District of Columbia, the Commonwealth of 
                Puerto Rico, or any other territory or possession of 
                the United States; and
                    ``(B) have relevant subject matter education and 
                work-related experience, including working knowledge of 
                generally accepted accounting principles, as determined 
                by the entity making the appointment.
    ``(b) Jurisdiction.--The Panel shall have exclusive jurisdiction of 
an appeal of a final material supervisory determination of a Federal 
financial institutions regulatory agency. The Panel shall determine the 
merits of the appeal, after an opportunity for a hearing on the record.
    ``(c) Standard of Review.--In an appeal heard by the Panel under 
this section, the Panel may not defer to the opinions of an examiner or 
a Federal financial institutions regulatory agency, but shall 
independently determine the appropriateness of the Federal financial 
institutions regulatory agency's decision based upon the relevant 
statutes, regulations, judicial precedents, and previous decisions of 
the Panel.
    ``(d) Notice.--
            ``(1) In general.--A financial institution seeking an 
        appeal under this section shall file a written notice with the 
        Panel within 30 days after receiving the final material 
        supervisory determination from the agency, or within 270 days 
        after receiving the final examination report, whichever occurs 
        first.
            ``(2) Contents of notice.--The written notice shall 
        identify the final material supervisory determination that is 
        the subject of the appeal and a statement of the reasons why 
        the financial institution believes such determination should be 
        modified.
    ``(e) Information To Be Provided to Institution Prior to Hearing 
Before the Panel.--Any information relied upon by a Federal financial 
institutions regulatory agency in a final examination report that is 
not in the possession of a financial institution requesting an appeal 
under this section may be requested by the financial institution and, 
if requested, shall be delivered promptly by the agency to the 
financial institution.
    ``(f) Hearing.--If a financial institution requests a hearing 
before the Panel in connection with an appeal by the financial 
institution under this section, the hearing shall--
            ``(1) take place not later than 60 days after the date on 
        which the notice of the appeal was received by the Panel; and
            ``(2) be conducted pursuant to the procedures set forth 
        under sections 556 and 557 of title 5, United States Code.
    ``(g) Decision.--A decision by the Panel on an appeal under this 
section shall be made not later than--
            ``(1) 60 days after the date on which the notice of appeal 
        is filed with the Panel; or
            ``(2) 30 days after the date on which a hearing under 
        subsection (f) has concluded, if a hearing is requested by the 
        financial institution.
    ``(h) Right to Judicial Review.--A financial institution and the 
Federal financial institution regulatory agency that made the material 
supervisory determination appealed under this section shall have the 
right to petition for review of the decision of the Panel under this 
section by filing a petition for review not later than 60 days after 
the date on which the decision was made in the United States Court of 
Appeals for the District of Columbia Circuit or the circuit in which 
the financial institution is located.
    ``(i) Reports and Publication.--
            ``(1) Reports.--The Panel shall, within 90 days of the end 
        of each calendar year, report final decisions made under 
        subsection (g) during such calendar year to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives. Such reports may not contain confidential or 
        privileged information shared by financial institutions.
            ``(2) Publication.--Any report submitted under paragraph 
        (1) shall be made available on the Council's website in such a 
        manner that such reports may serve as precedent for future 
        disputes.
    ``(j) Expenses.--
            ``(1) In general.--The reasonable costs and expenses 
        incurred by the Panel shall be paid by the Council.
            ``(2) Salaries.--Compensation for the judges appointed to 
        the Panel under this section shall be determined by the Council 
        and based upon the fair market value of the level of service 
        and time provided considering the training, knowledge, and 
        experience needed to properly and professionally carry out the 
        duties required.
    ``(k) Retaliation Prohibited.--A Federal financial institutions 
regulatory agency may not--
            ``(1) retaliate against a financial institution, including 
        service providers, or any institution-affiliated party, for 
        exercising appellate rights under this section; or
            ``(2) delay or deny any agency action that would benefit a 
        financial institution or any institution-affiliated party on 
        the basis that an appeal under this section is pending under 
        this section.''.
    (b) Definition.--Section 1003 of the Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3302) is amended--
            (1) in paragraph (2), by striking ``and'';
            (2) in paragraph (3), by adding ``and'' at the end; and
            (3) by adding at the end the following new paragraph:
            ``(4) the term `material supervisory determinations' has 
        the meaning given such term in section 309(f) of the Riegle 
        Community Development and Regulatory Improvement Act of 1994 
        (12 U.S.C. 4806(f)).''.

SEC. 4. TIMELINESS OF REQUIRED PERMISSION, REGULATORY, AND REPORTING 
              GUIDANCE.

    The Federal Financial Institutions Examination Council Act of 1978 
(12 U.S.C. 3301 et seq.), as amended by section 3, is further amended 
by adding at the end the following new section:

``SEC. 1014. TIMELINESS OF REQUIRED PERMISSION, REGULATORY, AND 
              REPORTING GUIDANCE.

    ``(a) Request for Permission or Guidance.--A financial institution 
may request a written determination by a Federal financial institutions 
regulatory agency of--
            ``(1) the agency's permission to take an action where 
        permission is mandated by regulation;
            ``(2) the agency's interpretation of a law or regulation; 
        and
            ``(3) the agency's interpretation of generally accepted 
        accounting principals or accounting objectives, standards, and 
        requirements under section 37 of the Federal Deposit Insurance 
        Act.
    ``(b) Contents of Request.--A request made under subsection (a) 
shall be in writing and contain all the information needed to 
communicate to the Federal financial institutions regulatory agency the 
following:
            ``(1) The nature of the request.
            ``(2) Applicable facts relating to the matter.
            ``(3) Applicable law, regulation, or generally accepted 
        accounting principals relating to the matter.
            ``(4) Discussion relative to the nature of the request 
        summarizing the financial institution's position or summary of 
        the request.
    ``(c) Response to Request.--A Federal financial institutions 
regulatory agency receiving a request under subsection (a) shall--
            ``(1) within 60 days of receiving the request--
                    ``(A) provide the financial institution making the 
                request with written notification that the agency 
                received the request and stating whether the request 
                contains the information required under subsection (b); 
                and
                    ``(B) if the request does not contain the 
                information required under subsection (b), provide the 
                financial institution with an explanation of what 
                information is missing; and
            ``(2) within 120 days of receiving the request, if the 
        request contains the information required under subsection (b), 
        make a determination on the request and provide the financial 
        institution with a written notice of such determination.
    ``(d) Appeal.--For purposes of section 1013(b), the following 
actions are deemed a final agency material supervisory determination:
            ``(1) Any determination made under subsection (c)(2).
            ``(2) Any failure by a Federal financial institutions 
        regulatory agency to comply with a deadline require by this 
        section.
            ``(3) Any determination by a Federal financial institutions 
        regulatory agency under subsection (c)(1)(B) that a request 
        does not contain the information required under subsection (b).
    ``(e) Reports and Publication.--Each Federal financial institutions 
regulatory agency shall, within 120 days after making a determination 
under subsection (c)(2), publish a summary of the determination, in 
order to offer guidance to the applicable industry. The summary may not 
contain confidential or privileged information about the financial 
institution, financial institution clients, or agency personnel.''.
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