,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #agej  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #be1 #bjac ,mr4
 ,luetkemey] 7= himself1 ,mr4           
,we/morel&1 & ,mr4 ,g>y ,g4 ,mill] (    
,cali=nia7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,f9ancial   
,s]vices  ,a ,,bill  ,to enhance !      
ability ( community f9ancial in/itutions
 to fo/] economic gr[? & s]ve _!        
communities1 boo/ small bus9esses1      
increase individual sav+s1 & = o!r      
purposes4  #a4 ,%ort title2 table (     
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,community ,l5d+ ,enhancem5t
 & ,regulatory ,relief ,act ( #bjac or !
 ,,cle> ,relief ,act ( #bjac4  7b7      
,table ( cont5ts ,! table ( cont5ts =   
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title2 table ( cont5ts4 ,sec4 #b4       
,*anges requir$ to small bank hold+     
company policy /atem5t on assessm5t (   
f9ancial & manag]ial factors4 ,sec4 #c4 
,escr[ requirem5ts4 ,sec4 #d4 ,exception
 to annual privacy notice requirem5t "u 

! ,gramm-,lea*-,bliley ,act4 ,sec4 #e4  
,acc\nt+ pr9ciples co/-b5efit           
requirem5ts4 ,sec4 #f4 ,community bank  
exemption f annual managem5t assessm5t (
 int]nal controls requirem5t ( !        
,s>banes-,oxley ,act ( #bjjb4 ,sec4 #g4 
,c]ta9 loans includ$ z qualifi$         
mortgages4 ,sec4 #h4 ,increase 9 small  
s]vic] exemption4 ,sec4 #i4 ,apprais]   
qualification ?re%old4 ,sec4 #aj4       
,coord9ation among f9ancial in/itutions4
  #b4 ,*anges requir$ to small bank     
hold+ company policy /atem5t on         
assessm5t ( f9ancial & manag]ial factors
  7a7 ,small bank hold+ company policy  
/atem5t on assessm5t ( f9ancial &       
manag]ial factors  7#a7 ,9 g5]al ,be=e !
 end ( ! #f-mon? p]iod beg9n+ on ! date 
( ! enactm5t ( ?is ,act1 ! ,bo>d (      
,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all
 publi% 9 ! ,f$]al ,regi/] propos$      
revisions to ! ,small ,bank ,hold+      
,company ,policy ,/atem5t on ,assessm5t 
( ,f9ancial & ,manag]ial ,factors 7#ab  
,c4,f4,r4 "p #bbe--;app5dix ,c7 t       

provide t ! policy %all apply to a bank 
hold+ company :i* has pro =ma           
consolidat$ assets ( less ?an           
#e1jjj1jjj1jjj & t--  7,a7 is n engag$ 9
 any nonbank+ activities involv+        
significant lev]age2 &  7,b7 does n h a 
significant am\nt ( out/&+ debt t is    
held by ! g5]al public4  7#b7 ,adju/m5t 
( am\nt ,! ,bo>d ( ,gov]nors ( ! ,f$]al 
,res]ve ,sy/em %all annually adju/ !    
doll> am\nt ref]r$ to 9 p>agraph 7#a7 9 
! ,small ,bank ,hold+ ,company ,policy  
,/atem5t on ,assessm5t ( ,f9ancial &    
,manag]ial ,factors by an am\nt equal to
 ! p]c5tage increase1 = ! mo/ rec5t ye>1
 9 total assets held by all insur$      
depository in/itutions1 z det]m9$ by !  
,bo>d4  7b7 ,increase 9 debt-to-,equity 
ratio ( small bank hold+ company ,be=e !
 end ( ! #f-mon? p]iod beg9n+ on ! date 
( ! enactm5t ( ?is ,act1 ! ,bo>d (      
,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all
 publi% 9 ! ,f$]al ,regi/] propos$      
revisions to ! ,small ,bank ,hold+      
,company ,policy ,/atem5t on ,assessm5t 

( ,f9ancial & ,manag]ial ,factors 7#ab  
,c4,f4,r4 "p #bbe--;app5dix ,c7 su* t ! 
debt-to-equity ratio all[able = a small 
bank hold+ company 9 ord] to rema9      
eligible to pay a corporate divid5d & to
 rema9 eligible = exp$it$ process+      
proc$ures "u ,regulation ,y ( ! ,bo>d ( 
,gov]nors ( ! ,f$]al ,res]ve ,sy/em w\ld
 increase f #a3a to #c3a4  #c4 ,escr[   
requirem5ts  7a7 ,9 g5]al ,section      
#abi;,d7c7 ( ! ,tru? 9 ,l5d+ ,act1 z    
add$ by section #adfa7;a7 ( !           
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act1 is am5d$--   
7#a7 by r$esignat+ p>agraphs 7#a71 7#b71
 7#c71 & 7#d7 z subp>agraphs 7,a71 7,b71
 7,c71 & 7,d7 & mov+ su* subp>agraphs #b
 ems to ! "r2  7#b7 /rik+ ,! ,bo>d &    
ins]t+ ! foll[+3  7#a7 ,9 g5]al ,! ,bo>d
  2 &  7#c7 by add+ at ! end ! foll[+   
new p>agraph3  7#b7 ,treatm5t ( loans   
held by small] cr$itors ,! ,bo>d %all1  
by regulation1 exempt f ! requirem5ts ( 
subsection 7a7 any loan secur$ by a fir/
 li5 on a consum]'s pr9ciple dwell+1 if 

su* loan is held by a cr$itor ) assets (
 #aj1jjj1jjj1jjj or less4  4  #d4       
,exception to annual privacy notice     
requirem5t "u ! ,gramm-,lea*-,bliley    
,act ,section #ejc ( !                  
,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4
 #fhjc7 is am5d$ by add+ at ! end !     
foll[+3  7f7 ,exception to annual notice
 requirem5t ,a f9ancial in/itution t--  
7#a7 provides nonpublic p]sonal         
in=mation only 9 accordance ) !         
provisions ( subsection 7b77#b7 or 7e7 (
 section #ejb or regulations prescrib$  
"u section #ejd7;b71 &  7#b7 has n *ang$
 its policies & practices ) reg>d to    
disclos+ nonpublic p]sonal in=mation f !
 policies & practices t 7 disclos$ 9 !  
mo/ rec5t disclosure s5t to consum]s 9  
accordance ) ?is subsection1  %all n be 
requir$ to provide an annual disclosure 
"u ?is subsection until su* "t z !      
f9ancial in/itution fails to comply )   
any crit]ia describ$ 9 p>agraph 7#a7 or 
7#b74  4  #e4 ,acc\nt+ pr9ciples        
co/-b5efit requirem5ts ,section #ai7;b7 

( ! ,securities ,act ( #aicc 7#ae       
,u4,s4,c4 #ggs7b77 is am5d$ by add+ at !
 end ! foll[+3  7#c7 ,g5]ally accept$   
acc\nt+ pr9ciples co/-b5efit requirem5ts
 ,! ,commission or its designee %all    
conduct analyses ( ! co/s & b5efits     
7includ+ economic b5efits7 ( any new or 
am5d$ acc\nt+ pr9ciple describ$ "u      
p>agraph 7#a71 & may n recognize su* new
 or am5d$ acc\nt+ pr9ciple1 unless !    
,commission or its designee det]m9es t !
 b5efits to inve/ors ( su* new or am5d$ 
acc\nt+ pr9ciple significantly outweigh 
its co/s4  4  #f4 ,community bank       
exemption f annual managem5t assessm5t (
 int]nal controls requirem5t ( !        
,s>banes-,oxley ,act ( #bjjb ,section   
#djd ( ! ,s>banes-,oxley ,act ( #bjjb   
7#ae ,u4,s4,c4 #gbfb7 is am5d$ by add+ !
 foll[+ new subsection3  7d7 ,community 
bank exemption  7#a7 ,9 g5]al ,?is      
section %all n apply 9 any ye> to any   
insur$ depository in/itution :i*1 z ( ! 
close ( ! prec$+ ye>1 _h total assets1 z
 det]m9$ on a consolidat$ basis1 (      

#aj1jjj1jjj1jjj or less4  7#b7 ,adju/m5t
 ( am\nt ,! ,commission %all annually   
adju/ ! doll> am\nt 9 p>agraph 7#a7 by  
an am\nt equal to ! p]c5tage increase1 =
 ! mo/ rec5t ye>1 9 total assets held by
 all depository in/itutions1 z report$  
by ! ,f$]al ,deposit ,insurance         
,corporation4  4  #g4 ,c]ta9 loans      
includ$ z qualifi$ mortgages ,section   
#abi;,c7b77#b7 ( ! ,tru? 9 ,l5d+ ,act   
7#ae ,u4,s4,c4 #afci;c7b77#b77 is       
am5d$--  7#a7 9 subp>agraph 7,a7--  7,a7
 9 clause 7viii71 by /rik+ & at ! end2  
7,b7 9 clause 7ix71 by /rik+ ! p]iod at 
! end & ins]t+ 2 &2 &  7,c7 by add+ at !
 end ! foll[+3  7x7 t is orig9at$ &     
reta9$ 9 portfolio = a p]iod ( at lea/  
#c ye>s by a cr$itor hav+ less ?an      
#aj1jjj1jjj1jjj 9 total assets4  2 &    
7#b7 9 subp>agraph 7,e7--  7,a7 by /rik+
 ,! ,bo>d may1 by regulation & ins]t+ ,!
 ,bureau %all1 by regulation2 &  7,b7 by
 am5d+ clause 7iv7 to read z foll[s3    
7iv7 t is ext5d$ by a cr$itor t--  7,i7 
orig9ates & reta9s ! balloon loans 9    

portfolio = a p]iod ( at lea/ #c ye>s2 &
  7,,ii7 toge!r ) all affiliates1 has   
total assets ( #aj1jjj1jjj1jjj or less4 
4  #h4 ,increase 9 small s]vic]         
exemption ,section #f ( ! ,real ,e/ate  
,settlem5t ,proc$ures ,act ( #aigd 7#ab 
,u4,s4,c4 #bfje7 is am5d$ by add+ at !  
end ! foll[+3  7n7 ,small s]vic]        
exemption ,! ,bureau %all1 by           
regulation1 provide exemptions to1 or   
adju/m5ts =1 ! provisions ( ?is section 
= s]vic]s t s]vice #bj1jjj or few]      
mortgage loans1 9 ord] to r$uce         
regulatory burd5s :ile appropriately    
balanc+ consum] protections4  4  #i4    
,apprais] qualification ?re%old ,section
 #aaab7;b7 ( ! ,f9ancial ,in/itutions   
,re=m1 ,recov]y1 & ,en=cem5t ,act (     
#aihi 7#ab ,u4,s4,c4 #ccda7;b77 is      
am5d$--  7#a7 by /rik+ may e/abli% a    
?re%old level at or & ins]t+ %all       
e/abli% a ?re%old level ( #bej1jjj12 &  
7#b7 by /rik+ transactions1 if & ins]t+ 
transactions4 ,ea* ,f$]al f9ancial      
in/itutions regulatory ag5cy & !        

,resolution ,tru/ ,corporation may      
e/abli% a high] ?re%old ?an #bej1jjj1   
if4  #aj4 ,coord9ation among f9ancial   
in/itutions ,*apt] #ec ( title #ca1     
,unit$ ,/ates ,code1 is am5d$--  7#a7 by
 ins]t+ aft] section #eccb ! foll[+ new 
section3  #eccc4 ,coord9ation among     
f9ancial in/itutions  7a7 ,9 g5]al ,9 ! 
case ( an entry receiv$ via an automat$ 
cle>+ h\se1 no receiv+ depository       
f9ancial in/itution %all be requir$ to  
v]ify t ! entry is n a prohibit$        
transaction1 if ! orig9at+ depository   
f9ancial in/itution has w>rant$1        
pursuant to ! automat$ cle>+ h\se rules 
gov]n+ su* entry or o!rwise1 t !        
orig9at+ depository f9ancial in/itution 
has compli$ ) ! sanctions programs      
adm9i/]$ by ! ,(fice ( ,=eign ,assets   
,control 9 connection ) su* entry4  7b7 
,def9itions ,= purposes ( ?is section3  
7#a7 ,automat$ cle>+ h\se ,! t]m        
automat$ cle>+ h\se means a funds       
transf] sy/em gov]n$ by rules :i*       
provide = ! int]bank cle>+ ( electronic 

entries = p>ticipat+ depository f9ancial
 in/itutions4  7#b7 ,depository f9ancial
 in/itution ,! t]m depository f9ancial  
in/itution means--  7,a7 any insur$     
depository in/itution1 z su* t]m is     
def9$ "u section #c ( ! ,f$]al ,deposit 
,insurance ,act 7#ab ,u4,s4,c4 #ahac72  
7,b7 any depository in/itution :i* is   
eligible to apply to become an insur$   
depository in/itution "u section #e ( ! 
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahae72  7,c7 any insur$ cr$it
 union1 z def9$ 9 section #aja ( !      
,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4
 #ageb72 &  7,d7 any cr$it union :i* is 
eligible to apply to become an insur$   
cr$it union pursuant to section #bja ( !
 ,f$]al ,cr$it ,union ,act 7#ab         
,u4,s4,c4 #agha74  7#c7 ,entry ,! t]m   
entry means an ord] to reque/ = !       
transf] ( funds ?r\gh an automat$ cle>+ 
h\se4  7#d7 ,orig9at+ depository        
f9ancial in/itution ,! t]m orig9at+     
depository f9ancial in/itution means a  
depository f9ancial in/itution t        

transmits entries via an automat$ cle>+ 
h\se = transmittal to a receiv+         
depository f9ancial in/itution4  7#e7   
,prohibit$ transaction ,! t]m prohibit$ 
transaction means a funds transf]       
orig9at$ on behalf ( a p]son to or f :om
 funds transf]s are re/rict$ by a       
sanctions program adm9i/]$ by ! ,(fice (
 ,=eign ,assets ,control1 includ+ p]sons
 appe>+ on ! li/ ( specially designat$  
nationals & block$ p]sons ma9ta9$ by !  
,(fice ( ,=eign ,assets ,control4  7#f7 
,receiv+ depository f9ancial in/itution 
,! t]m receiv+ depository f9ancial      
in/itution means a depository f9ancial  
in/itution t receives entries via an    
automat$ cle>+ h\se f an orig9at+       
depository f9ancial in/itution = debit  
or cr$it to ! acc\nts ( its cu/om]s4  2 
&  7#b7 9 ! table ( cont5ts = su* *apt] 
by ins]t+ aft] ! item relat+ to section 
#eccb ! foll[+ new item3  #eccc4        
,coord9ation among f9ancial in/itutions4
  4