HR 940
· 119th Congress
· Finance and Financial Sector
FAIR Exams Act
Sponsor
Latest action
Placed on the Union Calendar, Calendar No. 176.
Action timeline
Every recorded action on this bill, newest first. Stage badges color-code the legislative path.
Jul 25, 2025
committee
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-216.
Financial Services Committee
Jul 25, 2025
other
Placed on the Union Calendar, Calendar No. 176.
May 21, 2025
committee
Committee Consideration and Mark-up Session Held
Financial Services Committee
May 21, 2025
committee
Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 17.
Financial Services Committee
Feb 04, 2025
introduced
Introduced in House
Feb 04, 2025
introduced
Referred to the House Committee on Financial Services.
Financial Services Committee
Text versions
Each stage of the bill — official text published by GPO. Click any format to read on congress.gov / govinfo.
CRS summaries
Plain-English summaries written by the Congressional Research Service — neutral, nonpartisan staff who summarize bills as they advance through stages. The authoritative description of what each version of the bill does.
00
Introduced in House
Feb 04, 2025
Fair Audits and Inspections for Regulators’ Exams Act or the FAIR Exams Act
This bill establishes new procedures related to the federal examination of financial intuitions. Specifically, the bill establishes the Office of Independent Examination Review within the Federal Financial Institutions Examination Council to adjudicate appeals and investigate complaints from financial institutions concerning examination reports. Under the bill, financial institutions have the right to obtain an independent review of a material supervisory determination contained in a final report of examination. The bill sets forth provisions regarding hearings and final decisions.
The bill also sets deadlines for federal financial regulatory agencies to provide final examination reports and to perform exit interviews of a financial institution. In addition, the agency must list all materials relied upon in support of a material supervisory determination upon the request of the financial institution.
via Congressional Research Service · published through congress.gov
Changelog
ⓘ
How a bill moves through Congress. Each stage produces a new official text. The diff between them shows what changed at that step.
ih / is — Introduced in House / Senate. First filed version.rfh / rfs — Referred to a committee for review.rh / rs — Reported back by the committee to the floor (often with amendments — this is where most language changes happen).pcs / pch — Placed on Calendar for floor consideration.eh / es — Engrossed. Passed by the originating chamber. Text is now what was actually voted on.rdh / rds — Received by the other chamber.eah / eas — Engrossed Amendment. The other chamber passed an amended version.ath / ats — Agreed to. Both chambers settled on the same text.enr — Enrolled. Final reconciled text, sent to the President.pl — Public Law. Signed by the President. It's now law.pp — Public Print. Official printing post-enactment.
Most bills die before eh/es. Going from pcs → enr is the full path through both chambers.
ⓘ
How a bill moves through Congress. Each stage produces a new official text. The diff between them shows what changed at that step.
ih/is— Introduced in House / Senate. First filed version.rfh/rfs— Referred to a committee for review.rh/rs— Reported back by the committee to the floor (often with amendments — this is where most language changes happen).pcs/pch— Placed on Calendar for floor consideration.eh/es— Engrossed. Passed by the originating chamber. Text is now what was actually voted on.rdh/rds— Received by the other chamber.eah/eas— Engrossed Amendment. The other chamber passed an amended version.ath/ats— Agreed to. Both chambers settled on the same text.enr— Enrolled. Final reconciled text, sent to the President.pl— Public Law. Signed by the President. It's now law.pp— Public Print. Official printing post-enactment.
Most bills die before eh/es. Going from pcs → enr is the full path through both chambers.
Line-level diff between text versions of this bill — what actually changed at each legislative stage.
+395
−135
102 unchanged
--- Introduced (House)
+++ Reported (House)
@@ -1,11 +1,14 @@
[From the U.S. Government Publishing Office]
-[H.R. 940 Introduced in House (IH)]
+[H.R. 940 Reported in House (RH)]
<DOC>
+Union Calendar No. 176
119th CONGRESS
1st Session
H. R. 940
+
+[Report No. 119-216]
To amend the Federal Financial Institutions Examination Council Act of
1978 to improve the examination of depository institutions, and for
@@ -22,6 +25,20 @@
Texas) introduced the following bill; which was referred to the
Committee on Financial Services
+July 25, 2025
+
+Additional sponsors: Mr. Haridopolos, Mr. Sessions, Mr. David Scott of
+Georgia, and Mr. Fields
+
+July 25, 2025
+
+Reported with an amendment, committed to the Committee of the Whole
+House on the State of the Union, and ordered to be printed
+[Strike out all after the enacting clause and insert the part printed
+in italic]
+[For text of introduced bill, see copy of bill as introduced on
+February 4, 2025]
+
_______________________________________________________________________
A BILL
@@ -38,62 +55,205 @@
This Act may be cited as the ``Fair Audits and Inspections for
Regulators' Exams Act'' or the ``FAIR Exams Act''.
-SEC. 2. TIMELINESS OF EXAMINATION REPORTS.
+SEC. 2. TIMELINESS OF EXAMINATIONS AND 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
+``SEC. 1012. TIMELINESS OF EXAMINATIONS AND EXAMINATION REPORTS.
+
+``(a) Timeliness of Examinations.--A Federal financial institutions
+regulatory agency shall complete any examination of a financial
+institution within 270 days of commencing 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) Final Examination Report.--A Federal financial institutions
+regulatory agency shall provide a final examination report to a
+financial institution not later than 90 days after the later of--
+``(1) the exit interview for an examination of the
institution; or
-``(B) the provision of additional material
-information by the institution relating to the
-examination.
-``(2) Exit interview.--If a financial institution is not
-subject to a resident examiner program, the exit interview
-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 institution and the Director describing with particularity
-the reasons that a longer period is needed to complete the
-examination.
-``(b) Examination Materials.--Upon the request of a financial
+``(2) the provision of additional material information by
+the institution relating to the examination.
+``(c) Exit Interview Requirement.--Within 30 days of completing an
+examination, a Federal financial institutions regulatory agency shall
+conduct an exit interview with the financial institution's senior
+management, except that such period may be extended by the Federal
+financial institutions regulatory agency by providing written notice to
+the institution and the Board describing with particularity the reasons
+that a longer period is needed to complete the exit interview.
+``(d) Examination Materials.--Upon the request of a financial
institution, the Federal financial institutions regulatory agency shall
include with the final 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 DIRECTOR.
+SEC. 3. 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 2, is further amended
+by adding at the end the following:
+
+``SEC. 1013. TIMELINESS OF REQUIRED PERMISSION, REGULATORY, AND
+REPORTING GUIDANCE.
+
+``(a) Request for Permission or Guidance.--With respect to an
+action that a financial institution is taking or is intending to take,
+the financial institution may request a written determination by the
+applicable Federal financial institutions regulatory agency of--
+``(1) the agency's non-objection to the financial
+institution conducting a particular activity;
+``(2) the agency's interpretation of a law or regulation;
+and
+``(3) the agency's interpretation of generally accepted
+accounting principles or accounting objectives, standards, and
+requirements.
+``(b) Contents of Request.--A request made under subsection (a)
+shall be in writing and contain--
+``(1) the nature of the request;
+``(2) applicable facts relating to the matter;
+``(3) applicable law, regulation, or generally accepted
+accounting principles relating to the matter; and
+``(4) a summary of the request.
+``(c) Response to Request.--A Federal financial institutions
+regulatory agency receiving a request under subsection (a) shall, not
+later than 30 days after receiving the request--
+``(1) provide the financial institution making the request
+with written notification that the agency received the request
+and stating whether the request contains all of the information
+required under subsection (b); and
+``(2) if the request does not contain all of the
+information required under subsection (b), provide the
+financial institution with an explanation of what information
+is missing.
+``(d) Providing Missing Information.--If a Federal financial
+institutions regulatory agency informs the financial institution under
+subsection (c) that the request does not contain all the information
+required under subsection (b), the financial institution may provide
+the missing information to the Federal financial institutions
+regulatory agency during the 30-day period beginning on the date the
+financial institution receives the explanation of the missing
+information under subsection (c).
+``(e) Determination.--A Federal financial institutions regulatory
+agency receiving a request under subsection (a) shall make a
+determination on the request and provide the financial institution with
+a written notice of such determination--
+``(1) if the initial request contains the information
+required under subsection (b), not later than the end of the
+60-day period beginning on the date the Federal financial
+institutions regulatory agency notifies the financial
+institution of the receipt of the request under subsection (c);
+or
+``(2) if the initial request does not contain the
+information required under subsection (b), but the financial
+institution provides the missing information during the 30-day
+period described under subsection (d), not later than the end
+of the 60-day period beginning on the date such missing
+information is provided; or
+``(3) if the initial request does not contain the
+information required under subsection (b), and the financial
+institution does not provide the missing information during the
+30-day period described under subsection (d), not later than
+the end of the 60-day period beginning on the end of such 30-
+day period.
+``(f) Reports and Publication.--Each Federal financial institutions
+regulatory agency shall, within 120 days after making a determination
+under paragraph (5), publish a summary of the determination on the
+public website of the Federal financial institutions regulatory agency.
+Each Federal financial institutions regulatory agency shall redact any
+confidential supervisory information about the financial institution,
+any identifying facts about the financial institution, and any
+sensitive personally identifiable information, and anonymize any un-
+redacted information that could, individually or in the aggregate,
+identify the financial institution.''.
+
+SEC. 4. OFFICE OF INDEPENDENT EXAMINATION REVIEW.
(a) In General.--The Federal Financial Institutions Examination
-Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by section 2
-of this Act, is further amended by adding at the end the following:
-
-``SEC. 1013. OFFICE OF INDEPENDENT EXAMINATION REVIEW.
+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:
+
+``SEC. 1014. OFFICE OF INDEPENDENT EXAMINATION REVIEW.
``(a) Establishment.--There is established in the Council an Office
-of Independent Examination Review.
-``(b) Head of Office.--There is established the position of the
-Independent Examination Review Director, as the head of the Office of
-Independent Examination Review. The Director shall be appointed by the
-President, by and with the advice and consent of the Senate.
-``(c) Staffing.--The Director is authorized to hire staff to
-support the activities of the Office of Independent Examination Review.
-One-fifth of the costs and expenses of the Office, including the
-salaries of its employees, shall be paid by each of the Federal
-financial institutions regulatory agencies. Annual assessments for such
-share shall be levied by the Council based upon its projected budget
-for the year, and additional assessments may be made during the year if
+of Independent Examination Review (the `Office').
+``(b) Board of Independent Examination Review.--
+``(1) In general.--The head of the Office shall be the
+Board of Independent Examination Review, which shall be
+comprised of 3 members, appointed by the President, by and with
+the advice and consent of the Senate.
+``(2) Qualifications.--The President shall appoint the 1
+member of the Board from each of the following classes of
+individuals:
+``(A) Individuals who have been employed by a
+Federal financial institutions regulatory agency.
+``(B) Individuals who--
+``(i) are a licensed attorney or a
+certified public accountant authorized to
+practice under the laws of a State, the
+District of Columbia, or a territory of the
+United States;
+``(ii) have either academic or private
+sector experience;
+``(iii) have relevant work-related
+experience in consumer affairs or compliance
+with consumer protection laws with respect to
+financial institutions; and
+``(iv) are not, and were not during the
+previous 10-year period, employed by a Federal
+banking agency, a Federal reserve bank, or the
+National Credit Union Administration.
+``(C) Individuals--
+``(i) with at least 10 years private sector
+financial services senior management-level
+experience; and
+``(ii) recommended by--
+``(I) an insured depository
+institution;
+``(II) an insured credit union; or
+``(III) a trade association for
+such institutions or credit unions.
+``(3) Prohibition on certain individuals serving as a board
+member.--The President may not appoint an individual as a
+member of the Board if the individual--
+``(A) is, or was during the previous 2-year period,
+employed by a Federal financial institutions regulatory
+agency or a Federal reserve bank;
+``(B) is, or was during the previous 2-year period,
+employed by a financial institution; or
+``(C) is reporting, or was reporting in the past 5
+years, directly or indirectly to a Federal financial
+institutions regulatory agency official who makes
+material supervisory determinations.
+``(4) Consultation.--In appointing members of the Board,
+the President shall consult with the Federal financial
+institutions regulatory agencies and financial institutions.
+``(5) Term.--
+``(A) In general.--Each member of the Board shall
+serve for a term of 3 years.
+``(B) Term limitation.--No individual may serve
+more than 2 full terms on the Board.
+``(6) Political affiliation.--Not more than 2 members of
+the Board shall be members of the same political party.
+``(7) Quorum.--
+``(A) In general.--3 members of the Board shall
+constitute a quorum.
+``(B) Initial quorum.--During the 6-month period
+beginning on the date of enactment of this section, 1
+member of the Board shall constitute a quorum until the
+Board has 3 members.
+``(c) Staffing.--The Board is authorized to hire staff to support
+the activities of the Office of Independent Examination Review. One-
+fifth of the costs and expenses of the Office, including the salaries
+of its employees, shall be paid by each of the Federal financial
+institutions regulatory agencies. Annual assessments for such share
+shall be levied by the Council based upon its projected budget for the
+year, and additional assessments may be made during the year if
necessary.
-``(d) Duties.--The Director shall--
-``(1) receive and, at the discretion of the Director,
+``(d) Duties.--The Board shall--
+``(1) receive and, at the discretion of the Board,
investigate complaints from financial institutions, their
representatives, or another entity acting on behalf of such
institutions, concerning examinations, examination practices,
@@ -108,112 +268,159 @@
financial institutions regulatory agencies to ensure that the
written examination policies of those agencies are being
followed in practice and adhere to the standards for
-consistency, which shall be established, after notice and
-opportunity for comment, by the Council not later than 90 days
-after the date of enactment of this section;
+consistency;
``(4) conduct a continuing and regular program of
examination quality assurance for all examination types
conducted by the Federal financial institutions regulatory
agencies;
``(5) carry out an independent review of any supervisory
-appeal initiated under section 1014; and
+appeal initiated under section 1015; and
``(6) report annually to the Committee on Financial
Services of the House of Representatives, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the
Council, on the reviews carried out pursuant to paragraphs (3)
and (5), including compliance with the requirements set forth
-in section 1012 regarding timeliness of examination reports,
-and the Council's recommendations for improvements in
-examination procedures, practices, and policies.
-``(e) Confidentiality.--The Director shall keep confidential all
-meetings, discussions, and information provided by financial
-institutions. The Council shall keep confidential all information and
-communications exchanged by a financial institution and the Office of
-Independent Examination Review.''.
-(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'' at the end;
-(2) in paragraph (3), by adding ``and'' at the end; and
-(3) by adding at the end the following:
-``(4) the term `Director' means the Independent Examination
-Review Director established under section 1013(b).''.
-
-SEC. 4. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY
+in section 1013 regarding timeliness of examination reports,
+and the Board's recommendations for improvements in examination
+procedures, practices, and policies.
+``(e) Confidentiality.--The Board and the Council shall keep
+confidential--
+``(1) all meetings, discussions, and information provided
+by financial institutions and Federal financial institutions
+regulator agencies that involve confidential supervisory
+information or privileged information;
+``(2) all information and communications exchanged between
+a financial institution and the Office of Independent
+Examination Review; and
+``(3) all information and communications exchanged between
+a Federal financial institutions regulator agency and the
+Office of Independent Examination Review.''.
+(b) Definitions.--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'' at the end; and
+(2) by adding at the end the following:
+``(4) the term `Board' means the Board of Independent
+Examination Review established under section 1014(b);
+``(5) the term `material supervisory determination' has the
+meaning given such term in section 309(c) of the Riegle
+Community Development and Regulatory Improvement Act of 1994;
+``(6) the term `insured depository institution' has the
+meaning given that term in section 3 of the Federal Deposit
+Insurance Act; and
+``(7) the term `insured credit union' has the meaning given
+that term in section 101 of the Federal Credit Union Act.''.
+
+SEC. 5. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY
DETERMINATIONS.
The Federal Financial Institutions Examination Council Act of 1978
-(12 U.S.C. 3301 et seq.), as amended by sections 2 and 3 of this Act,
-is further amended by adding at the end the following:
-
-``SEC. 1014. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY
+(12 U.S.C. 3301 et seq.), as amended by section 4, is further amended
+by adding at the end the following:
+
+``SEC. 1015. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY
DETERMINATIONS.
``(a) In General.--A financial institution shall have the right to
-obtain an independent review of a material supervisory determination
-contained in a final report of examination.
+obtain an independent review, as described in this section, of a
+material supervisory determination contained in a final report of
+examination.
``(b) Notice.--
``(1) Timing.--A financial institution seeking review of a
material supervisory determination under this section shall
-file a written notice with the Director within 60 days after
+file a written notice with the Board within 60 days after
receiving the final report of examination that is the subject
of such review.
-``(2) Identification of determination.--The written notice
-shall identify the material supervisory determination that is
-the subject of the independent examination review, and a
-statement of the reasons why the institution believes that the
-determination is incorrect or should otherwise be modified.
-``(3) Information to be provided to institution.--Any
-information relied upon by the agency in the final report that
-is not in the possession of the financial institution may be
-requested by the financial institution and shall be delivered
-promptly by the agency to the financial institution.
-``(c) Right to Hearing.--
-``(1) In general.--The Director shall--
+``(2) Extension.--The institution may file a written
+request with the Board for an extension of the 60-day time
+period described under paragraph (1), which shall state good
+cause for granting the extension. Such request shall be granted
+in the sole discretion of the Board.
+``(3) Identification of determination.--The written notice
+shall--
+``(A) identify the material supervisory
+determination that is the subject of the requested
+independent examination review;
+``(B) state the reasons why the institution
+believes that the material supervisory determination is
+incorrect or should otherwise be modified; and
+``(C) include--
+``(i) a clear and complete statement of all
+relevant facts and issues;
+``(ii) all arguments that the institution
+wishes to present; and
+``(iii) all relevant and material documents
+in the possession of the institution that the
+institution wishes to be considered.
+``(4) Information made available to institution.--An
+institution seeking an appeal of a material supervisory
+determination may, not later than 7 days after receiving the
+final examination report, request that the Federal financial
+institutions regulatory agency that made the material
+supervisory determination provide the institution with all
+examination and factual information relied upon by the agency
+in making the material supervisory determination. The agency
+shall provide that information to the institution not later
+than 14 days after receiving the request.
+``(c) Determination; Right to Hearing.--
+``(1) In general.--The Board shall--
``(A) determine the merits of the appeal on the
-record; or
+record, including whether the material supervisory
+determination being appealed should be upheld,
+canceled, or modified; or
``(B) at the election of the financial institution,
-refer the appeal to an administrative law judge
-appointed by the Director to conduct a hearing pursuant
-to the procedures set forth under sections 556 and 557
-of title 5, United States Code, which shall take place
-not later than 60 days after the petition for review is
-received by the Director.
-``(2) Timing of decision.--An administrative law judge
-conducting a hearing under paragraph (1)(B) shall issue a
-proposed decision to the Director based upon the record
-established at the hearing.
-``(3) Standard of review.--In any hearing under this
-subsection, neither the administrative law judge nor the
-Director shall defer to the opinions of the examiner or agency,
-but shall independently determine the appropriateness of the
-agency's decision based upon the relevant statutes,
-regulations, other appropriate guidance, and evidence presented
-at the hearing.
-``(d) Final Recommendation.--With respect to an independent review
-under this section, the Director shall make a final recommendation to
-the head of the agency whose supervisory determination was the subject
-of the review not later than 60 days after the record has been closed.
-``(e) Final Agency Determination.--Upon receipt of a final
-recommendation of the Director under subsection (d), the head of an
-agency shall make a final determination of the agency with respect to
-the material supervisory determination not later than the 60 days after
-receiving the recommendation of the Director. In making such final
-determination, the head of the agency shall give deference to the
-recommendation of the Director.
-``(f) Right to Judicial Review.--A financial institution shall have
-the right to petition for review of a final agency determination made
-under subsection (e) by filing a petition for review not later than 60
-days after the date on which the decision is made in the United States
-Court of Appeals for the District of Columbia Circuit or the Circuit in
-which the financial institution is located.
-``(g) Report.--The Director shall report annually to the Committee
-on Financial Services of the House of Representatives, the Committee on
-Banking, Housing, and Urban Affairs of the Senate, and the Council on
-actions taken under this section, including the types of issues that
-the Director has reviewed and the results of those reviews. In no case
-shall such a report contain information about individual financial
-institutions or any confidential or privileged information shared by
-financial institutions.
+conduct a hearing, which shall take place not later
+than 60 days after the petition for review is received
+by the Board.
+``(2) Right to obtain testimony.--A financial institution
+electing for a hearing under paragraph (1)(B) shall have the
+right the obtain testimony under oath from agency employees and
+obtain documents and other evidence at the hearing, or in
+advance of the hearing, according to procedures instituted by
+the Board consistent with those set forth under sections 556
+and 557 of title 5, United States Code.
+``(3) Basis of decision.--The Board shall issue a written
+decision based upon the record of the examination, supplemented
+by the record established at any hearing.
+``(4) Standard of review.--The Board's review of a material
+supervisory determination being appealed under this subsection
+shall be de novo, and the Board shall not defer to the opinions
+of the examiner or agency, but shall independently determine
+the appropriateness of the agency's material supervisory
+determination based upon the relevant statutes, regulations,
+other appropriate guidance, and the evidentiary record.
+``(d) Final Decision.--A decision by the Board on an independent
+review under this section shall--
+``(1) be made not later than 60 days after the record has
+been closed; and
+``(2) be deemed final agency action and shall bind the
+agency whose supervisory determination was the subject of the
+review and the financial institution requesting the review.
+``(e) Right to Judicial Review.--A financial institution shall have
+the right to petition for review of a Board determination made under
+subsection (d) by filing a petition for review not later than 60 days
+after the date on which the decision is made in the United States Court
+of Appeals for the District of Columbia Circuit or the Circuit in which
+the financial institution is located.
+``(f) Referral of Violations.--If the Board, in carrying out this
+section, determines that a financial institution has violated a law or
+regulation, the Board shall refer such determination to the applicable
+Federal financial institutions regulatory agency.
+``(g) Annual Report.--
+``(1) In general.--The Board shall report annually to the
+Committee on Financial Services of the House of
+Representatives, the Committee on Banking, Housing, and Urban
+Affairs of the Senate, and the Council on actions taken under
+this section, including the types of issues that the Board has
+reviewed and the results of those reviews, including
+information on each final determination with respect to a
+material supervisory determination.
+``(2) Confidentiality.--In reporting under paragraph (1),
+the Board shall redact information about individual financial
+institutions and any confidential or privileged information
+shared by financial institutions, and shall anonymize any un-
+redacted information that could, in the aggregate, identify a
+financial institution.
``(h) Retaliation Prohibited.--
``(1) In general.--A Federal financial institutions
regulatory agency may not--
@@ -229,9 +436,32 @@
retaliation includes delaying consideration of, or withholding
approval of, any request, notice, or application that otherwise
would have been approved, but for the exercise of a financial
-institution's rights under this section.''.
-
-SEC. 5. ADDITIONAL AMENDMENTS.
+institution's rights under this section.
+``(i) Rulemaking.--The Board shall issue rules to establish
+procedures for hearings described under this section, including that--
+``(1) a financial institution may appear at the hearing
+personally or through counsel;
+``(2) a financial institution may provide an oral and
+written presentation at the hearing;
+``(3) the Board may ask questions of any person
+participating in the hearing;
+``(4) the hearing may not involve--
+``(A) a cross-examination; or
+``(B) discovery;
+``(5) the hearing shall not be governed by the Federal
+Rules of Evidence; and
+``(6) the Board shall have a verbatim transcript of the
+hearing prepared.
+``(j) Safety and Soundness Exception.--The appeal of a material
+supervisory determination by a financial institution under this section
+shall not affect the authority of a Federal financial institutions
+regulatory agency to enforce the material supervisory determination or
+to take an action based on such material supervisory determination, if
+the Federal financial institutions regulatory agency determines that
+such enforcement or action is necessary to ensure the safety and
+soundness of the financial institution.''.
+
+SEC. 6. ADDITIONAL AMENDMENTS.
(a) Regulator Appeals Process, Ombudsman, and Alternative Dispute
Resolution.--
@@ -240,11 +470,12 @@
4806) is amended--
(A) in the heading, by striking ``regulatory
appeals process, ombudsman,'' and inserting
-``ombudsman'';
+``ombudsman'' (and by conforming the item relating to
+such section in the table of contents accordingly);
(B) by striking subsections (a), (b), and (c);
(C) by redesignating subsections (d), (e), (f), and
(g) as subsections (a), (b), (c), and (d),
-respectively; and
+respectively;
(D) in subsection (b), as so redesignated--
(i) in paragraph (2)--
(I) in subparagraph (B), by
@@ -262,7 +493,7 @@
retaliation includes delaying consideration of, or withholding
approval of, any request, notice, or application that otherwise
would have been approved, but for the exercise of a financial
-institution's rights under this section.''.
+institution's rights under this section.''; and
(E) in paragraph (1)(A) of subsection (c), as so
redesignated--
(i) in clause (ii), by striking ``; and''
@@ -296,8 +527,9 @@
Federal Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3301 et seq.), as amended by sections 2 through 4 of this Act,
is further amended--
-(1) in section 1003 (12 U.S.C. 3302) by striking paragraph
-(1) and inserting the following:
+(1) in section 1003 (12 U.S.C. 3302)--
+(A) by striking paragraph (1) and inserting the
+following:
``(1) the term `Federal financial institutions regulatory
agencies'--
``(A) means the Office of the Comptroller of the
@@ -306,7 +538,12 @@
the National Credit Union Administration; and
``(B) includes the Bureau of Consumer Financial
Protection for purposes of sections 1012 through
-1014;'';
+1015;''; and
+(B) in paragraph (3), by striking the semicolon at
+the end and inserting ``, except that for purposes of
+sections 1012 through 1015, the term `financial
+institution' does not include a credit union that is
+not an insured credit union;'';
(2) in section 1004(a)(4) (12 U.S.C. 3303), by striking
``Consumer Financial Protection Bureau'' and inserting ``Bureau
of Consumer Financial Protection''; and
@@ -315,4 +552,27 @@
fourth''; and
(B) by inserting ``described under section
1003(1)(A)'' after ``agencies''.
-<all>
+Union Calendar No. 176
+
+119th CONGRESS
+
+1st Session
+
+H. R. 940
+
+[Report No. 119-216]
+
+_______________________________________________________________________
+
+A BILL
+
+To amend the Federal Financial Institutions Examination Council Act of
+1978 to improve the examination of depository institutions, and for
+other purposes.
+
+_______________________________________________________________________
+
+July 25, 2025
+
+Reported with an amendment, committed to the Committee of the Whole
+House on the State of the Union, and ordered to be printed
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Cosponsors (9)
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