,i #aafth ,,congress #ast ,session ,h4 ,r4 #adia ,,in ,,the ,,house ,,of ,,representatives ,march #d1 #bjai,mr4 ,david ,scott of ,georgia 7for himself and ,mr4 ,loudermilk7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committees on ,agriculture1 and ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a ,fin,tech ,council to designate a single primary regulator of eligible ,fin,tech startups1 to create the ,offices of ,financial ,innovation1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,facilitating ,innovation and ,new ,technology so ,entrepreneurs ,create and ,hire ,act of #bjai or the ,,fintech ,act of #bjai4 #b4 ,fin,tech ,council 7a7 ,establishment ,there is established within the ,department of the ,treasury the ,fin,tech ,council1 which shall determine which ,federal financial regulator or regulators should be the ,designated ,financial ,regulator of an eligible ,fin,tech startup4 7b7 ,petition to agency 7#a7 ,in general ,an eligible ,fin,tech startup may submit a petition to the ,fin,tech ,council1 in such form and in such manner as the ,council may require1 to request a determination on which ,federal financial regulators have enforcement authority with respect to the eligible ,fin,tech startup4 7#b7 ,contents ,in a petition submitted under this subsection1 the eligible ,fin,tech startup shall demonstrate that the eligible ,fin,tech startup is offering or intending to offer a financial innovation that-- 7,a7 will serve the public interest2 7,b7 improves access to financial products or services2 7,c7 does not present systemic risk to the ,united ,states financial system2 7,d7 is a new technology or is an innovative use of existing technology2 7,e7 does not pose a risk to consumer protection2 and 7,f7 will not permit unfair1 deceptive1 or abusive acts and practices4 7#c7 ,multiparty ,petitions ,one or more eligible ,fin,tech startups that offer or intend to offer similar financial innovations may jointly submit a petition under this subsection4 7c7 ,determination ,upon the request of an eligible ,fin,tech startup1 the ,fin,tech ,council shall-- 7#a7 determine which one or more ,federal financial regulators should be the regulators primarily responsible for oversight of the eligible ,fin,tech startup2 7#b7 designate such agencies as the ,designated ,financial ,regulator of the eligible ,fin,tech startup2 and 7#c7 notify the eligible ,fin,tech startup and each ,federal financial regulator of such determination4 7d7 ,sole enforcement authority by ,designated ,financial ,regulator ,except for the ,designated ,financial ,regulator1 the ,federal financial regulators may not take any enforcement action against an eligible ,fin,tech startup4 7e7 ,authority ,to review designation 7#a7 ,in general ,with respect to an entity that has had primary regulators designated under subsection 7c77#b71 the ,fin,tech ,council may review the designation on an annual basis1 or pursuant to a request made under paragraph 7#b71 to determine whether-- 7,a7 there has been a material change in the business model of the entity2 7,b7 the entity is no longer an eligible ,fin,tech startup2 7,c7 there are material unseen risks that weren't present at the time of the application2 or 7,d7 the entity can no longer demonstrate that it meets the requirements described under subsection 7b77#b74 7#b7 ,recommendation of review ,if a ,federal financial regulator determines that it would have1 but for the prohibition under subsection 7d71 taken an enforcement action against an entity that has had primary regulators designated under subsection 7c77#b71 the ,federal financial regulator may recommend that the ,fin,tech ,council review such designation under paragraph 7#a74 7#c7 ,authority to rescind designation ,if1 in reviewing a designation under paragraph 7#a71 the ,fin,tech ,council makes a determination under subparagraph 7,a71 7,b71 7,c71 or 7,d7 of paragraph 7#a71 the ,fin,tech ,council may rescind the designation4 7#d7 ,reapplication permitted ,an eligible ,fin,tech startup that loses its designation under this section may reapply for designation4 7#e7 ,notice ,if the ,fin,tech ,council rescinds a designation under this section1 the ,council shall-- 7,a7 immediately notify the entity that was the subject of the designation and the ,congress2 and 7,b7 upon making a final determination1 publicly provide a written explanation of the basis for the ,council's decision with sufficient detail to provide the public with an understanding of the specific basis of the ,council's determination1 including any assumptions related thereof4 7f7 ,two-,year limitation ,after the end of the two-year period beginning on the date an entity first has a primary regulatory designated under subsection 7c77#b7-- 7#a7 any such designation is terminated2 and 7#b7 the entity is not eligible for any future designation under subsection 7c77#b74 #c4 ,office of ,financial ,innovation 7a7 ,establishment 7#a7 ,in general ,each ,federal financial regulator shall establish an ,office of ,financial ,innovation 7,office74 7#b7 ,director ,the head of each ,office shall be a ,director1 who shall be appointed to a #e-year term by1 and report to1 the head of the ,federal financial regulator4 7#c7 ,staffing ,the head of each ,federal financial regulator shall ensure that the regulator's ,office is adequately staffed at all times4 7b7 ,duties ,the duties of the ,office are to-- 7#a7 draft a mission statement1 which shall include the phrase responsible innovation2 7#b7 coordinate and make publicly available efforts made by ,designated ,financial ,regulators related to covered actions so as to reduce the regulatory burden for eligible ,fin,tech startups2 7#c7 establish and maintain an easily-accessible website1 which shall include the ,office's mission statement and a portal where eligible ,fin,tech startups can submit questions or request meetings with the ,office2 7#d7 respond to questions and meeting requests described under paragraph 7#c7 in a timely manner2 7#e7 implement recommendations from the ,advisory ,council of ,fin,tech ,directors2 7#f7 conduct outreach to eligible ,fin,tech startups when a covered action is made public or finalized2 and 7#g7 provide support for the ,director of the ,office with respect to the ,director's duties on the ,advisory ,council of ,fin,tech ,directors4 7c7 ,inclusion in rulemaking ,each ,federal financial regulator shall1 throughout the development of a new rule1 including prior to the publication of a notice of proposed rulemaking in the ,federal ,register1 work with the ,office in assessing the potential effects of the rule on eligible ,fin,tech startups4 ,each ,office shall also advise the applicable ,federal financial regulator on possible alternatives that may lessen the burden on eligible ,fin,tech startups without meaningfully affecting the rule's ability to achieve its purpose4 #d4 ,regulatory harmonization for ,fin,tech 7a7 ,harmonization ,each ,designated ,financial ,regulator shall1 in taking any covered action1 harmonize and coordinate with the other ,designated ,financial ,regulators in order to eliminate duplication and conflicting regulations that will impact eligible ,fin,tech startups4 7b7 ,advisory ,council of ,fin,tech ,directors 7#a7 ,establishment 7,a7 ,in general ,there is established the ,advisory ,council of ,fin,tech ,directors1 which shall consist of-- 7i7 the ,director of each ,office of ,financial ,innovation2 and 7ii7 an independent member appointed by the ,secretary of the ,treasury1 having ,state-banking regulatory expertise4 7,b7 ,compensation ,all members of the ,advisory ,council who are officers or employees of the ,united ,states shall serve without compensation in addition to that received for their services as officers or employees of the ,united ,states4 7#b7 ,purpose ,the purpose of the ,advisory ,council is to provide each ,federal financial regulator with advice on its rules1 regulations1 and policies with regard to how financial innovation is reshaping the regulatory landscape of the financial services marketplace and whether there is any duplication in supervision or material failure in supervision of eligible ,fin,tech startups that is limiting responsible innovation for eligible ,fin,tech startups4 7#c7 ,duties ,the ,advisory ,council shall function solely as an advisory body4 ,its duties shall extend only to providing advice1 including advice in the form of recommendations1 to each ,federal financial regulator4 ,each ,federal financial regulator shall retain full authority to determine actions to be taken and policies to be expressed with respect to matters within its jurisdiction upon which the ,council may provide advice4 7#d7 ,reports 7,a7 ,annual report ,the ,advisory ,council shall annually report to ,congress on the activities of the ,council and any significant financial market and regulatory developments that might impact eligible ,fin,tech startups4 7,b7 ,advice ,the ,advisory ,council shall provide its advice to the ,federal financial regulators through the ,secretary of the ,treasury4 ,the ,advisory ,council need not reach consensus on every issue1 and may choose to provide the ,federal financial regulators with differing views or a range of view4 7#e7 ,meetings ,the ,advisory ,council of ,fin,tech ,directors shall meet at the call of the ,secretary of the ,treasury or a majority of the members then serving1 but not less frequently than annually4 7#f7 ,recordkeeping ,the official records generated by or for the ,advisory ,council shall be handled in accordance with ,general ,records ,schedule #f4b1 or another approved agency records disposition schedule4 ,these records shall be available for public inspection and copying1 subject to section #eeb of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act74 #e4 ,definitions ,for purposes of this ,act3 7#a7 ,covered action ,the term covered action means any regulations1 guidance1 interpretive rules1 interim final rules1 bulletins1 statement of policy1 letters1 examination manuals1 frequently asked questions1 notices1 directives1 or any other authoritative action that would impact an eligible ,fin,tech startup4 7#b7 ,designated ,financial ,regulator ,the term ,designated ,financial ,regulator means-- 7,a7 any ,federal financial regulator or regulators that have been designated under section #b7;c77#b7 with respect to any eligible ,fin,tech startup2 and 7,b7 with respect to an eligible ,fin,tech startup1 the specific ,federal financial regulator or regulators designated under section #b7;c77#b7 for such eligible ,fin,tech startup4 7#c7 ,eligible ,fin,tech startup ,the term eligible ,fin,tech startup means an entity that-- 7,a7 provides an application or product and has no more than #aj1jjj total users of such application or product2 7,b7 has no more than #ae employees2 7,c7 has received less than #e rounds of venture capital2 and 7,d7 has not yet partnered with an insured depository institution 7as defined under section #c of the ,federal ,deposit ,insurance ,act74 7#d7 ,federal financial regulator ,the term ,federal financial regulator means each of the ,board of ,governors of the ,federal ,reserve ,system1 the ,bureau of ,consumer ,financial ,protection1 the ,commodity ,futures ,trading ,commission1 the ,department of ,housing and ,urban ,development1 the ,department of the ,treasury1 the ,farm ,credit ,administration1 the ,federal ,communications ,commission1 the ,federal ,deposit ,insurance ,corporation1 the ,federal ,housing ,finance ,agency1 the ,federal ,trade ,commission1 the ,national ,credit ,union ,administration ,board1 the ,office of the ,comptroller of the ,currency1 and the ,securities and ,exchange ,commission4