Title: Fair Hiring in Banking Act
Policy area: Finance and Financial Sector

Summary:
Fair Hiring in Banking Act
This bill creates exceptions to the restriction on hiring persons convicted of certain criminal offenses involving dishonesty or a breach of trust to a position with an insured depository institution or an insured credit union. Currently, a waiver must be obtained from the Federal Deposit Insurance Corporation or the National Credit Union Administration to allow the employment of such a person.
Specifically, a waiver is not needed if it has been 7 years or more since the offense occurred or if the individual was incarcerated with respect to the offense and it has been 5 years or more since the individual was released from incarceration. The need for a waiver also does not apply to conduct committed before age 21 and it has been at least 30 months since the sentencing. Individuals with a criminal record that is expunged, sealed, or pardoned are also exempt from waiver requirements.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5911 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 5911

To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to expand employment opportunities for those with a previous minor 
               criminal offense, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 2021

Mrs. Beatty (for herself and Mr. Auchincloss) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to expand employment opportunities for those with a previous minor 
               criminal offense, 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 ``Fair Hiring in Banking Act''.

SEC. 2. FEDERAL DEPOSIT INSURANCE ACT.

    Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is 
amended--
            (1) by inserting after subsection (b) the following:
    ``(c) Exceptions.--
            ``(1) Certain older offenses.--
                    ``(A) In general.--With respect to an individual, 
                subsection (a) shall not apply to an offense if--
                            ``(i) it has been 7 years or more since the 
                        offense occurred; or
                            ``(ii) the individual was incarcerated with 
                        respect to the offense and it has been 5 years 
                        or more since the individual was released from 
                        incarceration.
                    ``(B) Offenses committed by individuals 21 or 
                younger.--For individuals who committed an offense when 
                they were 21 years of age or younger, subsection (a) 
                shall not apply to the offense if it has been more than 
                30 months since the sentencing occurred.
                    ``(C) Limitation.--This paragraph shall not apply 
                to an offense described under subsection (a)(2).
            ``(2) Expungement and sealing.--With respect to an 
        individual, subsection (a) shall not apply to an offense if--
                    ``(A) there is an order of expungement, sealing, or 
                dismissal that has been issued in regard to the 
                conviction in connection with such offense; and
                    ``(B) it is intended by the language in the order 
                itself, or in the legislative provisions under which 
                the order was issued, that the conviction shall be 
                destroyed or sealed from the individual's State or 
                Federal record, even if exceptions allow the record to 
                be considered for certain character and fitness 
                evaluation purposes.
            ``(3) De minimis exemption.--
                    ``(A) In general.--Subsection (a) shall not apply 
                to such de minimis offenses as the Corporation 
                determines, by rule.
                    ``(B) Confinement criteria.--In issuing rules under 
                subparagraph (A), the Corporation shall include a 
                requirement that the offense was punishable by a term 
                of three years or less confined in a correctional 
                facility, where such confinement--
                            ``(i) is calculated based on the time an 
                        individual spent incarcerated as a punishment 
                        or a sanction, not as pretrial detention; and
                            ``(ii) does not include probation or parole 
                        where an individual was restricted to a 
                        particular jurisdiction or was required to 
                        report occasionally to an individual or a 
                        specific location.
                    ``(C) Bad check criteria.--In setting the criteria 
                for de minimis offenses under subparagraph (A), if the 
                Corporation establishes criteria with respect to 
                insufficient funds checks, the Corporation shall 
                require that the aggregate total face value of all 
                insufficient funds checks across all convictions or 
                program entries related to insufficient funds checks is 
                $2,000 or less.
                    ``(D) Designated lesser offenses.--Subsection (a) 
                shall not apply to certain lesser offenses (including 
                the use of a fake ID, shoplifting, trespass, fare 
                evasion, driving with an expired license or tag, and 
                such other low-risk offenses as the Corporation may 
                designate) if 1 year or more has passed since the 
                applicable conviction or program entry.''; and
            (2) by adding at the end the following:
    ``(f) Consent Applications.--
            ``(1) In general.--The Corporation shall accept consent 
        applications from an individual and from an insured depository 
        institution or depository institution holding company on behalf 
        of an individual that are filed separately or contemporaneously 
        with a regional office of the Corporation.
            ``(2) Sponsored applications filed with regional offices.--
        Consent applications filed at a regional office of the 
        Corporation by an insured depository institution or depository 
        institution holding company on behalf of an individual--
                    ``(A) shall be reviewed by such office;
                    ``(B) may be approved or denied by such office, if 
                such authority has been delegated to such office by the 
                Corporation; and
                    ``(C) may only be denied by such office if the 
                general counsel of the Corporation (or a designee) 
                certifies that the denial is consistent with this 
                section.
            ``(3) Individual applications filed with regional 
        offices.--Consent applications filed at a regional office by an 
        individual--
                    ``(A) shall be reviewed by such office; and
                    ``(B) may be approved or denied by such office, if 
                such authority has been delegated to such office by the 
                Corporation, except with respect to--
                            ``(i) cases involving an offense described 
                        under subsection (a)(2); and
                            ``(ii) such other high-level security cases 
                        as may be designated by the Corporation.
            ``(4) National office review.--The national office of the 
        Corporation shall--
                    ``(A) review any consent application with respect 
                to which a regional office is not authorized to approve 
                or deny the application; and
                    ``(B) review any consent application that is denied 
                by a regional office, if the individual requests a 
                review by the national office.
            ``(5) Forms and instructions.--
                    ``(A) Availability.--The Corporation shall make all 
                forms and instructions related to consent applications 
                available to the public, including on the website of 
                the Corporation.
                    ``(B) Contents.--The forms and instructions 
                described under subparagraph (A) shall provide a sample 
                cover letter and a comprehensive list of items that may 
                accompany the application, including clear guidance on 
                evidence that may support a finding of rehabilitation.
            ``(6) Consideration of criminal history.--
                    ``(A) Regional office consideration.--In reviewing 
                a consent application, a regional office shall--
                            ``(i) primarily rely on the criminal 
                        history record of the Federal Bureau of 
                        Investigation; and
                            ``(ii) provide such record to the applicant 
                        to review for accuracy.
                    ``(B) Certified copies.--The Corporation may not 
                require an applicant to provide certified copies of 
                criminal history records unless the Corporation 
                determines that there is a clear and compelling 
                justification to require additional information to 
                verify the accuracy of the criminal history record of 
                the Federal Bureau of Investigation.
            ``(7) Consideration of rehabilitation.--Consistent with 
        title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et 
        seq.), the Corporation shall--
                    ``(A) conduct an individualized assessment when 
                evaluating consent applications that takes into account 
                evidence of rehabilitation, the applicant's age at the 
                time of the conviction or program entry, the time that 
                has elapsed since conviction or program entry, and the 
                relationship of individual's offense to the 
                responsibilities of the applicable position;
                    ``(B) presume that the individual is rehabilitated 
                if four years have passed since the individual's 
                offense and the individual has no subsequent 
                convictions; and
                    ``(C) consider the individual's employment history, 
                letters of recommendation, certificates documenting 
                participation in substance abuse programs, successful 
                participating in job preparation and educational 
                programs, and other relevant mitigating evidence.
            ``(8) Scope of employment.--With respect to an approved 
        consent application filed by an insured depository institution 
        or depository institution holding company on behalf of an 
        individual, if the Corporation determines it appropriate, such 
        approved consent application shall allow the individual to work 
        for the same employer (without restrictions on the location) 
        and across positions, except that the prior consent of the 
        Corporation (which may require a new application) shall be 
        required for any proposed significant changes in the 
        individual's security-related duties or responsibilities, such 
        as promotion to an officer or other positions that the employer 
        determines will require higher security screening credentials.
    ``(g) Definitions.--In this section:
            ``(1) Consent application.--The term `consent application' 
        means an application filed with Corporation by an individual 
        (or by an insured depository institution or depository 
        institution holding company on behalf of an individual) seeking 
        the written consent of the Corporation under subsection (a)(1).
            ``(2) Criminal offense involving dishonesty.--The term 
        `criminal offense involving dishonesty'--
                    ``(A) means an offense under which an individual, 
                directly or indirectly--
                            ``(i) cheats or defrauds; or
                            ``(ii) wrongfully takes property belonging 
                        to another in violation of a criminal statute;
                    ``(B) includes an offense that Federal, State, or 
                local law defines as dishonest, or for which 
                dishonestly is an element of the offense; and
                    ``(C) does not include--
                            ``(i) a misdemeanor criminal offense 
                        committed more than one year before the date on 
                        which an individual files a consent 
                        application, excluding any period of 
                        incarceration; or
                            ``(ii) an offense involving the possession, 
                        sale, manufacturing, or distribution of 
                        controlled substances.
            ``(3) Pretrial diversion or similar program.--The term 
        `pretrial diversion or similar program' means a program 
        characterized by a suspension or eventual dismissal or reversal 
        of charges or criminal prosecution upon agreement by the 
        accused to restitution, drug or alcohol rehabilitation, anger 
        management, or community service.''.

SEC. 3. FEDERAL CREDIT UNION ACT.

    Section 205(d) of the Federal Credit Union Act (12 U.S.C. 1785(d)) 
is amended by adding at the end the following:
            ``(4) Exceptions.--
                    ``(A) Certain older offenses.--
                            ``(i) In general.--With respect to an 
                        individual, paragraph (1) shall not apply to an 
                        offense if--
                                    ``(I) it has been 7 years or more 
                                since the offense occurred; or
                                    ``(II) the individual was 
                                incarcerated with respect to the 
                                offense and it has been 5 years or more 
                                since the individual was released from 
                                incarceration.
                            ``(ii) Offenses committed by individuals 21 
                        or younger.--For individuals who committed an 
                        offense when they were 21 years of age or 
                        younger, paragraph (1) shall not apply to the 
                        offense if it has been more than 30 months 
                        since the sentencing occurred.
                            ``(iii) Limitation.--This subparagraph 
                        shall not apply to an offense described under 
                        paragraph (1)(B).
                    ``(B) Expungement and sealing.--With respect to an 
                individual, paragraph (1) shall not apply to an offense 
                if--
                            ``(i) there is an order of expungement, 
                        sealing, or dismissal that has been issued in 
                        regard to the conviction in connection with 
                        such offense; and
                            ``(ii) it is intended by the language in 
                        the order itself, or in the legislative 
                        provisions under which the order was issued, 
                        that the conviction shall be destroyed or 
                        sealed from the individual's State or Federal 
                        record, even if exceptions allow the record to 
                        be considered for certain character and fitness 
                        evaluation purposes.
                    ``(C) De minimis exemption.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply to such de minimis offenses as the Board 
                        determines, by rule.
                            ``(ii) Confinement criteria.--In issuing 
                        rules under clause (i), the Board shall include 
                        a requirement that the offense was punishable 
                        by a term of three years or less confined in a 
                        correctional facility, where such confinement--
                                    ``(I) is calculated based on the 
                                time an individual spent incarcerated 
                                as a punishment or a sanction, not as 
                                pretrial detention; and
                                    ``(II) does not include probation 
                                or parole where an individual was 
                                restricted to a particular jurisdiction 
                                or was required to report occasionally 
                                to an individual or a specific 
                                location.
                            ``(iii) Bad check criteria.--In setting the 
                        criteria for de minimis offenses under clause 
                        (i), if the Board establishes criteria with 
                        respect to insufficient funds checks, the Board 
                        shall require that the aggregate total face 
                        value of all insufficient funds checks across 
                        all convictions or program entries related to 
                        insufficient funds checks is $2,000 or less.
                            ``(iv) Designated lesser offenses.--
                        Paragraph (1) shall not apply to certain lesser 
                        offenses (including the use of a fake ID, 
                        shoplifting, trespass, fare evasion, driving 
                        with an expired license or tag, and such other 
                        low-risk offenses as the Board may designate) 
                        if 1 year or more has passed since the 
                        applicable conviction or program entry.
            ``(5) Consent applications.--
                    ``(A) In general.--The Board shall accept consent 
                applications from an individual and from an insured 
                credit union on behalf of an individual that are filed 
                separately or contemporaneously with a regional office 
                of the Board.
                    ``(B) Sponsored applications filed with regional 
                offices.--Consent applications filed at a regional 
                office of the Board by an insured credit union on 
                behalf of an individual--
                            ``(i) shall be reviewed by such office;
                            ``(ii) may be approved or denied by such 
                        office, if such authority has been delegated to 
                        such office by the Board; and
                            ``(iii) may only be denied by such office 
                        if the general counsel of the Board (or a 
                        designee) certifies that the denial is 
                        consistent with this section.
                    ``(C) Individual applications filed with regional 
                offices.--Consent applications filed at a regional 
                office by an individual--
                            ``(i) shall be reviewed by such office; and
                            ``(ii) may be approved or denied by such 
                        office, if such authority has been delegated to 
                        such office by the Board, except with respect 
                        to--
                                    ``(I) cases involving an offense 
                                described under paragraph (1)(B); and
                                    ``(II) such other high-level 
                                security cases as may be designated by 
                                the Board.
                    ``(D) National office review.--The national office 
                of the Board shall--
                            ``(i) review any consent application with 
                        respect to which a regional office is not 
                        authorized to approve or deny the application; 
                        and
                            ``(ii) review any consent application that 
                        is denied by a regional office, if the 
                        individual requests a review by the national 
                        office.
                    ``(E) Forms and instructions.--
                            ``(i) Availability.--The Board shall make 
                        all forms and instructions related to consent 
                        applications available to the public, including 
                        on the website of the Board.
                            ``(ii) Contents.--The forms and 
                        instructions described under clause (i) shall 
                        provide a sample cover letter and a 
                        comprehensive list of items that may accompany 
                        the application, including clear guidance on 
                        evidence that may support a finding of 
                        rehabilitation.
                    ``(F) Consideration of criminal history.--
                            ``(i) Regional office consideration.--In 
                        reviewing a consent application, a regional 
                        office shall--
                                    ``(I) primarily rely on the 
                                criminal history record of the Federal 
                                Bureau of Investigation; and
                                    ``(II) provide such record to the 
                                applicant to review for accuracy.
                            ``(ii) Certified copies.--The Board may not 
                        require an applicant to provide certified 
                        copies of criminal history records unless the 
                        Board determines that there is a clear and 
                        compelling justification to require additional 
                        information to verify the accuracy of the 
                        criminal history record of the Federal Bureau 
                        of Investigation.
                    ``(G) Consideration of rehabilitation.--Consistent 
                with title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.), the Board shall--
                            ``(i) conduct an individualized assessment 
                        when evaluating consent applications that takes 
                        into account evidence of rehabilitation, the 
                        applicant's age at the time of the conviction 
                        or program entry, the time that has elapsed 
                        since conviction or program entry, and the 
                        relationship of individual's offense to the 
                        responsibilities of the applicable position;
                            ``(ii) presume that the individual is 
                        rehabilitated if four years have passed since 
                        the individual's offense and the individual has 
                        no subsequent convictions; and
                            ``(iii) consider the individual's 
                        employment history, letters of recommendation, 
                        certificates documenting participation in 
                        substance abuse programs, successful 
                        participating in job preparation and 
                        educational programs, and other relevant 
                        mitigating evidence.
                    ``(H) Scope of employment.--With respect to an 
                approved consent application filed by an insured credit 
                union on behalf of an individual, if the Board 
                determines it appropriate, such approved consent 
                application shall allow the individual to work for the 
                same employer (without restrictions on the location) 
                and across positions, except that the prior consent of 
                the Board (which may require a new application) shall 
                be required for any proposed significant changes in the 
                individual's security-related duties or 
                responsibilities, such as promotion to an officer or 
                other positions that the employer determines will 
                require higher security screening credentials.
            ``(6) Definitions.--In this subsection:
                    ``(A) Consent application.--The term `consent 
                application' means an application filed with the Board 
                by an individual (or by an insured credit union on 
                behalf of an individual) seeking the written consent of 
                the Board under paragraph (1)(A).
                    ``(B) Criminal offense involving dishonesty.--The 
                term `criminal offense involving dishonesty'--
                            ``(i) means an offense under which an 
                        individual, directly or indirectly--
                                    ``(I) cheats or defrauds; or
                                    ``(II) wrongfully takes property 
                                belonging to another in violation of a 
                                criminal statute;
                            ``(ii) includes an offense that Federal, 
                        State, or local law defines as dishonest, or 
                        for which dishonestly is an element of the 
                        offense; and
                            ``(iii) does not include--
                                    ``(I) a misdemeanor criminal 
                                offense committed more than one year 
                                before the date on which an individual 
                                files a consent application, excluding 
                                any period of incarceration; or
                                    ``(II) an offense involving the 
                                possession, sale, manufacturing, or 
                                distribution of controlled substances.
                    ``(C) Pretrial diversion or similar program.--The 
                term `pretrial diversion or similar program' means a 
                program characterized by a suspension or eventual 
                dismissal or reversal of charges or criminal 
                prosecution upon agreement by the accused to 
                restitution, drug or alcohol rehabilitation, anger 
                management, or community service.''.

SEC. 4. REVIEW AND REPORT TO CONGRESS.

    Not later than the end of the 2-year period beginning on the date 
of enactment of this Act, the Federal Deposit Insurance Corporation and 
the National Credit Union Administration shall--
            (1) review the rules issued to carry out this Act and the 
        amendments made by this Act on--
                    (A) the application of section 19 of the Federal 
                Deposit Insurance Act (12 U.S.C. 1829) and section 
                205(d) of the Federal Credit Union Act (12 U.S.C. 
                1785(d)); and
                    (B) the rates of approval and denial for consent 
                applications under such sections;
            (2) make the results of the review required under paragraph 
        (1) available to the public; and
            (3) issue a report to Congress containing any legislative 
        or regulatory recommendations for expanding employment 
        opportunities for those with a previous minor criminal offense.
                                 <all>