Promoting Diversity and Inclusion in Banking Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8160 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 SEPTEMBER 4, 2020 Mr. GREEN of Texas (for himself and Ms. WATERS) introduced the following bill; which was referred to the Committee on Financial Services 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. 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 2020’’. 5 VerDate Sep 11 2014 22:58 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8160.IH H8160 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8160 IH SEC. 2. DIVERSITY AND INCLUSION RATINGS. 1 (a) IN GENERAL.—The Dodd-Frank Wall Street Re- 2 form and Consumer Protection Act (12 U.S.C. 5301 et 3 seq.) is amended by inserting after section 342 the fol- 4 lowing: 5 ‘‘SEC. 342A. DIVERSITY AND INCLUSION RATINGS. 6 ‘‘(a) IN GENERAL.—The Board of Governors, the 7 Comptroller of the Currency, the Corporation, and the Na- 8 tional Credit Union Administration Board, in assigning a 9 rating to a depository institution under the Uniform Fi- 10 nancial Institutions Rating System (or an equivalent rat- 11 ing by any such agency under a comparable rating system) 12 shall include a diversity and inclusion component that ex- 13 amines— 14 ‘‘(1) whether the depository institution has poli- 15 cies in place to encourage diversity and inclusion in 16 the hiring practices of the institution; 17 ‘‘(2) whether the depository institution provides 18 training to the employees of the institution on diver- 19 sity and inclusion; and 20 ‘‘(3)(A) with respect to a depository institution 21 with total consolidated assets of $1,000,000,000 or 22 less, whether such depository institution has des- 23 ignated an individual to serve as a Diversity and In- 24 clusion Officer who reports to the Chief Executive 25 VerDate Sep 11 2014 22:58 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8160.IH H8160 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8160 IH Officer of the institution on all diversity and inclu- 1 sion matters; or 2 ‘‘(B) with respect to a depository institution 3 with total consolidated assets of more than 4 $1,000,000,000, whether such depository institu- 5 tion— 6 ‘‘(i) has designated an individual to serve 7 as a Diversity and Inclusion Officer; and 8 ‘‘(ii) has established a committee for diver- 9 sity and inclusion that holds meetings quarterly 10 and that includes in its membership the Diver- 11 sity and Inclusion Officer designated under 12 clause (i) and the Chief Executive Officer of the 13 institution. 14 ‘‘(b) APPLICATION TO MINORITY DEPOSITORY INSTI- 15 TUTIONS.—In carrying out subsection (a) with respect to 16 a minority depository institution (as defined under section 17 308(b) of the Financial Institutions Reform, Recovery, 18 and Enforcement Act of 1989), the Board of Governors, 19 the Comptroller of the Currency, the Corporation, and the 20 National Credit Union Administration Board shall— 21 ‘‘(1) assign such institution the highest rating 22 with respect to the diversity and inclusion compo- 23 nent described under subsection (a); and 24 VerDate Sep 11 2014 22:58 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8160.IH H8160 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8160 IH ‘‘(2) exempt such institution from any examina- 1 tion procedures related to the diversity and inclusion 2 component described under subsection (a).’’. 3 (b) CLERICAL AMENDMENT.—The table of contents 4 for the Dodd-Frank Wall Street Reform and Consumer 5 Protection Act is amended by inserting after the item re- 6 lating to section 342 the following: 7 ‘‘Sec. 342A. Diversity and inclusion ratings.’’. Æ VerDate Sep 11 2014 22:58 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H8160.IH H8160 pbinns on DSKJLVW7X2PROD with BILLS