Financial Institution Customer Protection Act of 2016
Latest action · Feb 8, 2016 Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedFeb 5, 2015
- Passed HouseFeb 4, 2016
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Financial Institution Customer Protection Act of 2016
(Sec. 2) This bill prohibits a federal banking agency from formally or informally suggesting, requesting, or ordering a depository institution to terminate either a specific customer account, or group of customer accounts, or otherwise restrict or discourage it from entering into or maintaining a banking relationship with a specific customer or group of customers, unless: (1) the agency has a material reason to do so, and (2) the reason is not based solely on reputation risk.
The "material reason" criterion shall be satisfied if an agency believes that a specific customer or group of customers poses a threat to national security, including any belief that they are involved in terrorist financing.
Unless the appropriate agency determines that the customer or group of customers has used due diligence to avoid doing business with any entity described below, the bill deems the criteria addressing "material reason" to be met if the agency believes a customer or group of customers is, or is acting as, a conduit for an entity which:
- poses a threat to national security;
- is involved in terrorist financing;
- is an agency of the government of Iran, North Korea, Syria, or any country listed from time to time on the State Sponsors of Terrorism list;
- is either located in, or subject to the jurisdiction of, any of such countries; or
- does business with any entity located in such countries.
If an appropriate federal banking agency orders a depository institution to terminate a specific customer account or a group of customer accounts, the depository institution shall inform the customer or customers of the justification for the termination.
No notice may be given to the customer, however, if the agency requests or orders a depository institution to terminate a customer account (or a group of customer accounts) based upon a belief that customer or those customers pose a threat to national security or are otherwise described above.
(Sec. 3) The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is amended to revise requirements for summoning witnesses and requiring production of books or other records the Attorney General deems relevant or material to a civil investigation in contemplation of a civil proceeding which may result in civil penalties for specified violations.
Recorded votes 2
Newest first. Open one to see how every member voted.
| Roll call | Question | Result | Date |
|---|---|---|---|
| House 63 | On Passage | Passed250–169 | Feb 4, 2016 |
| House 62 | On Motion to Recommit with Instructions | Failed177–240 | Feb 4, 2016 |
Cosponsors 30
Members who signed on, in the order they did. Signatures ran from Feb 5, 2015 to Nov 16, 2015; 2 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-FL | Alcee L. Hastings | Original | Feb 5, 2015 |
| R-OH | Steve Stivers | Original | Feb 5, 2015 |
| R-SC | Mick Mulvaney | Feb 11, 2015 | |
| D-FL | Patrick Murphy | Mar 17, 2015 | |
| D-CA | Tony Cárdenas | Mar 17, 2015 | |
| R-AZ | Paul A. Gosar | Mar 19, 2015 | |
| R-TN | Marsha Blackburn | Mar 23, 2015 | |
| R-OH | Robert E. Latta | Mar 26, 2015 | |
| R-FL | Dennis A. Ross | May 5, 2015 | |
| R-IN | Marlin A. Stutzman | May 5, 2015 | |
| R-TX | Blake Farenthold | May 20, 2015 | |
| R-MI | Fred Upton | May 20, 2015 | |
| R-TX | Pete Sessions | May 20, 2015 | |
| R-FL | Carlos Curbelo | May 21, 2015 | |
| R-TN | Stephen Lee Fincher | Jun 3, 2015 | |
| R-TX | Randy Neugebauer | Jun 8, 2015 | |
| R-MN | Tom Emmer | Jun 9, 2015 | |
| R-CO | Scott R. Tipton | Jun 10, 2015 | |
| R-FL | Bill Posey | Jun 11, 2015 | |
| R-TX | Roger Williams | Jun 16, 2015 | |
| R-KY | Andy Barr | Jun 17, 2015 | |
| R-PA | Keith J. Rothfus | Jul 10, 2015 | |
| R-IL | Randy Hultgren | Jul 29, 2015 | |
| R-NM | Stevan Pearce | Jul 29, 2015 | |
| R-FL | David W. Jolly | Sep 8, 2015 | |
| R-KS | Lynn Jenkins | Sep 8, 2015 | |
| R-TN | Scott DesJarlais | Sep 11, 2015 | |
| R-MO | Sam Graves | Oct 22, 2015 | |
| R-IL | Rodney Davis | Oct 26, 2015 | |
| R-IN | Luke Messer | Nov 16, 2015 |
Committees 2
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Feb 5, 2015Markup Jul 29, 2015Reported Jan 28, 2016 |
| Consumer Protection and Financial Institutions Subcommittee | Hearings Jun 11, 2015 | |
| Senate | Banking, Housing, and Urban Affairs Committee | Referred Feb 8, 2016 |
Actions 27
Everything that happened, newest first.
- Feb 8, 2016Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Feb 4, 2016Considered under the provisions of rule H. Res. 595. (consideration: CR H570-583; text of amendment in the nature of a substitute: CR H578)
- Feb 4, 2016Resolution provides for consideration of H.R. 1675 and H.R. 766.
- Feb 4, 2016House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 595 and Rule XVIII.
- Feb 4, 2016The Speaker designated the Honorable Alexander X. Mooney to act as Chairman of the Committee.
In the Congressional Record 3
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| House · Extensions | Debate and remarks E116, H570–H583Text printed H578Amendments H578, H579Motions H581Recorded votes H582, H583Castor motion to recommit (certify that no depository institutions has broken certain laws before applying certain requirements)enact | Blaine Luetkemeyer R-MO, Brad Sherman D-CA (amendment), Dennis A. Ross R-FL, Denny Heck D-WA, Earl Blumenauer D-OR, J. French Hill R-AR, Jeb Hensarling R-TX, Kathy Castor D-FL (motion), Keith Ellison D-MN, Luke Messer R-IN, Maxine Waters D-CA, Mick Mulvaney R-SC, Paul A. Gosar R-AZ (amendment), Randy Neugebauer R-TX, Roger Williams R-TX, Scott R. Tipton R-CO, Sean P. Duffy R-WI | Feb 4, 2016 |
| House · Senate | Debate and remarks H510–H519, S535Text printed H510Amendments H517Recorded votes H517, H518consideration (H. Res. 595), previous question | Doug Collins R-GA, Earl L. "Buddy" Carter R-GA, Elizabeth Warren D-MA, Jared Polis D-CO (amendment), Michael M. Honda D-CA, Steve Stivers R-OH | Feb 3, 2016 |
| House | Declaratory Statements H497 | — | Feb 2, 2016 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Congressional Budget Office cost estimate
- Sep 4, 2015H.R. 766, Financial Institution Customer Protection Act of 2015As ordered reported by the House Committee on Financial Services on July 29, 2015
Constitutional authority
The sponsor’s statement, as printed in the Congressional Record, vol. 161, no. 20, February 5, 2015, page H856.
Printed hearings 3
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| Serial No. 114-90 | SETTLING THE QUESTION: DID BANK SETTLEMENT AGREEMENTS SUBVERT CONGRESSIONAL APPROPRIATIONS POWERS?104 pages | Financial Services Committee | May 19, 2016 |
| Serial No. 114-31 | EXAMINING LEGISLATIVE PROPOSALS TO PRESERVE CONSUMER CHOICE AND FINANCIAL INDEPENDENCE132 pages | Financial Services Committee | Jun 11, 2015 |
| S. Hrg. 114-8 | REGULATORY RELIEF FOR COMMUNITY BANKS AND CREDIT UNIONS171 pages | Banking, Housing, and Urban Affairs Committee | Feb 12, 2015 |
CRS reports 1
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 1
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| R44035 | “Regulatory Relief” for Banking: Selected Legislation in the 114th Congress Archived | Report | Nov 23, 2016 |
Amendments 2
Amendments offered to this bill.
| Amendment | Description | Offered by | Status |
|---|---|---|---|
| HAmdt 927 | Amendment clarifies that the bill does not prevent Federal banking regulators from requesting or requiring a financial institution to terminate a relationship with a customer because (1) the customer poses a threat to national security, (2) is engaged in terrorist financing, (3) is doing business with Iran, North Korea, Syria, or another State Sponsor of Terrorism, or (4) is doing business with an entity in any of those countries. | Brad Sherman D-CA | On agreeing to the Sherman amendment (A001) Agreed to by voice vote. |
| HAmdt 928 | Amendment requires financial institutions to provide notice to customers if their account is ordered terminated by a Federal banking regulator. | Paul A. Gosar R-AZ | On agreeing to the Gosar amendment (A002) Agreed to by voice vote. |
Related bills 3
Companion bills and other measures the record links to this one.
Titles 4
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To provide requirements for the appropriate Federal banking agencies when requesting or ordering a depository institution to terminate a specific customer account, to provide for additional requirements related to subpoenas issued under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and for other purposes.
- Short Titles as Introduced
- Financial Institution Customer Protection Act of 2015
- Short Titles as Reported to House
- Financial Institution Customer Protection Act of 2015
- Short Titles as Passed House
- Financial Institution Customer Protection Act of 2016
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Administrative law and regulatory procedures
- Asia
- Bank accounts, deposits, capital
- Banking and financial institutions regulation
- Business records
- Congressional oversight
- Consumer affairs
- Department of the Treasury
- Evidence and witnesses
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve System
- Finance and Financial Sector
- Government information and archives
- Iran
- Judicial procedure and administration
- Middle East
- National Credit Union Administration
- North Korea
- Syria
- Terrorism
Text 4
Each version as it was printed, newest first.
- Feb 8, 2016Referred in Senate
- Feb 4, 2016Engrossed in House
- Jan 28, 2016Reported in House
- Feb 5, 2015Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
