Promoting Diversity and Inclusion in Banking Act of 2021

IB Union Calendar No. 269 117TH CONGRESS 2D SESSION H. R. 2516 [Report No. 117–355] To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to require Federal banking regulators to include a diversity and inclusion component in the Uniform Financial Institutions Rating Sys- tem, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 14, 2021 Mr. GREEN of Texas introduced the following bill; which was referred to the Committee on Financial Services JUNE 7, 2022 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 April 14, 2021] VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2516 RH A BILL To amend the Dodd-Frank Wall Street Reform and Con- sumer Protection Act to require Federal banking regu- lators to include a diversity and inclusion component in the Uniform Financial Institutions Rating System, and for other purposes. VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2516 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Promoting Diversity 4 and Inclusion in Banking Act of 2021’’. 5 SEC. 2. DIVERSITY AND INCLUSION RATINGS. 6 (a) IN GENERAL.—The Dodd-Frank Wall Street Re- 7 form and Consumer Protection Act (12 U.S.C. 5301 et seq.) 8 is amended by inserting after section 342 the following: 9 ‘‘SEC. 342A. DIVERSITY AND INCLUSION RATINGS. 10 ‘‘(a) IN GENERAL.—The Board of Governors, the 11 Comptroller of the Currency, the Corporation, and the Na- 12 tional Credit Union Administration Board, in assigning 13 a rating to a depository institution under the Uniform Fi- 14 nancial Institutions Rating System (or an equivalent rat- 15 ing by any such agency under a comparable rating system) 16 shall include a diversity and inclusion component that ex- 17 amines— 18 ‘‘(1) whether the depository institution has effec- 19 tive policies in place to encourage diversity and in- 20 clusion in the hiring practices of the institution; 21 ‘‘(2) whether the depository institution provides 22 training to the employees of the institution, that is 23 appropriate to the size and resources of the institu- 24 tion, on diversity and inclusion; and 25 VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2516 RH ‘‘(3)(A) with respect to a depository institution 1 with total consolidated assets of $1,000,000,000 or 2 less, whether such depository institution has des- 3 ignated an individual to serve as a Diversity and In- 4 clusion Officer who reports to the Chief Executive Of- 5 ficer of the institution on all diversity and inclusion 6 matters; or 7 ‘‘(B) with respect to a depository institution 8 with total consolidated assets of more than 9 $1,000,000,000, whether such depository institution— 10 ‘‘(i) has designated an individual to serve 11 as a Diversity and Inclusion Officer; and 12 ‘‘(ii) has established a committee for diver- 13 sity and inclusion that holds meetings quarterly 14 and that includes in its membership the Diver- 15 sity and Inclusion Officer designated under 16 clause (i) and the Chief Executive Officer of the 17 institution. 18 ‘‘(b) APPLICATION TO MINORITY DEPOSITORY INSTI- 19 TUTIONS.—In carrying out subsection (a) with respect to 20 minority depository institutions, the Board of Governors, 21 the Comptroller of the Currency, the Corporation, and the 22 National Credit Union Administration Board shall— 23 VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2516 RH ‘‘(1) assign such institutions the most favorable 1 rating with respect to the diversity and inclusion 2 component described under subsection (a); and 3 ‘‘(2) exempt such institutions from any examina- 4 tion procedures related to the diversity and inclusion 5 component described under subsection (a). 6 ‘‘(c) DEFINITIONS.—In this section: 7 ‘‘(1) DEPOSITORY INSTITUTION.—The term ‘de- 8 pository institution’ means a depository institution 9 or a credit union. 10 ‘‘(2) MINORITY DEPOSITORY INSTITUTION.—The 11 term ‘minority depository institution’ means an enti- 12 ty that is— 13 ‘‘(A) a minority depository institution, as 14 defined in section 308 of the Financial Institu- 15 tions Reform, Recovery, and Enforcement Act of 16 1989 (12 U.S.C. 1463 note); or 17 ‘‘(B) considered to be a minority depository 18 institution by— 19 ‘‘(i) the appropriate Federal banking 20 agency; or 21 ‘‘(ii) the National Credit Union Ad- 22 ministration, in the case of an insured cred- 23 it union.’’. 24 VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2516 RH (b) CLERICAL AMENDMENT.—The table of contents for 1 the Dodd-Frank Wall Street Reform and Consumer Protec- 2 tion Act is amended by inserting after the item relating 3 to section 342 the following: 4 ‘‘Sec. 342A. Diversity and inclusion ratings.’’. VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6213 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6213 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS Union Calendar No. 269 117TH CONGRESS 2D SESSION H. R. 2516 [Report No. 117–355] A BILL To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to require Federal banking regulators to include a diversity and in- clusion component in the Uniform Financial In- stitutions Rating System, and for other purposes. JUNE 7, 2022 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 01:19 Jun 08, 2022 Jkt 029200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\H2516.RH H2516 kjohnson on DSK79L0C42PROD with BILLS