,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #dgfg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,octob] #ba1 #bjai,mr4 ,mc,henry introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices1 & 9 addition to ! ,committee on ,agriculture1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to promote innovation 9 f9ancial s]vices1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,f9ancial ,s]vices ,innovation ,act ( #bjai4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,def9itions4 ,sec4 #c4 ,ag5cy id5tification ( regulatory areas4 ,sec4 #d4 ,e/abli%m5t ( ,,fsio at ag5cies4 ,sec4 #e4 ,,fsio ,liaison ,committee & *air4 ,sec4 #f4 ,petition to ag5cy4 ,sec4 #g4 ,ag5cy det]m9ation ( petition4 ,sec4 #h4 ,en=ceable compliance agreem5t4 ,sec4 #i4 ,report to ,congress4 ,sec4 #aj4 ,fund+4 #b4 ,def9itions ,9 ?is ,act1 ! foll[+ def9itions %all apply3 7#a7 ,ag5cy regulation ,! t]m ag5cy regulation means-- 7,a7 a rule 7z def9$ 9 section #eea ( title #e1 ,unit$ ,/ates ,code7 issu$ by an ag5cy2 7,b7 guidance issu$ by an ag5cy2 or 7,c7 a publi%$ propos$ or int]im rule1 policy /atem5t1 directive1 adjudication1 or int]pretation ( an ag5cy4 7#b7 ,ag5cy ,! t]m ag5cy means ea* ( ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,bureau ( ,consum] ,f9ancial ,protection1 ! ,commodity ,futures ,trad+ ,commission1 ! ,dep>tm5t ( ! ,treasury1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ! ,f$]al ,trade ,commission1 ! ,national ,cr$it ,union ,adm9i/ration ,bo>d1 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 & ! ,securities & ,ex*ange ,commission4 7#c7 ,cov]$ p]son ,! t]m cov]$ p]son means a p]son t (f]s or int5ds to (f] a f9ancial innovation by submitt+ a petition to a ,f9ancial ,s]vices ,innovation ,(fice at "o or m ag5cies4 7#d7 ,en=ceable compliance agreem5t ,! t]m en=ceable compliance agreem5t means a contractual agreem5t describ$ "u section #h4 7#e7 ,f9ancial innovation ,! t]m f9ancial innovation means an innovative f9ancial s]vice or product1 ! deliv]y ( :i* is enabl$ by te*nology1 t is or may be subject to an ag5cy regulation or ,f$]al /atute4 7#f7 ,f9ancial ,s]vices ,innovation ,(fice or ,,fsio ,! t]m ,f9ancial ,s]vices ,innovative ,(fice or ,,fsio means an (fice e/abli%$ 9 an ag5cy pursuant to section #e4 #c4 ,ag5cy id5tification ( regulatory areas ,n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is ,act1 & biannually !reaft]1 ea* ag5cy %all publi% 9 ! ,f$]al ,regi/] a nonexclusive li/ t id5tifies #c or m areas ( exi/+ regulation-- 7#a7 t apply or may apply to a f9ancial innovation2 & 7#b7 t ! ag5cy w\ld consid] modify+ or waiv+ if ! ag5cy 7 to receive a petition "u section #f relat+ to t regulation4 #d4 ,e/abli%m5t ( ,,fsio at ag5cies 7a7 ,9 g5]al ,ea* ag5cy %all e/abli% a ,f9ancial ,s]vices ,innovation ,(fice 7kn[n z ,,fsio7 to promote f9ancial innovations & to assi/ a cov]$ p]son ^: petition has be5 approv$ "u section #g4 7b7 ,director ,ea* ag5cy %all appo9t an individual to s]ve z ! ,director ( ! ag5cy's ,,fsio4 7c7 ,duties 7#a7 ,g5]al duties ,ea* ag5cy1 act+ ?r\gh ! ag5cy's ,,fsio1 %all-- 7,a7 support ! developm5t ( f9ancial innovations2 7,b7 coord9ate ) ,f,s,i,os at o!r ag5cies to %>e in=mation & data2 & 7,c7 e/abli% proc$ures to r$uce ! "t & co/ ( (f]+ a f9ancial innovation to ! public & enable great] access to f9ancial innovations4 7#b7 ,duties = petitions ,) respect to a cov]$ p]son ^: petition has be5 approv$ "u section #g1 ea* ,,fsio %all-- 7,a7 "w ) ! cov]$ p]son to address issues ( h[ exi/+ regulatory frameworks apply to ! f9ancial innovation t is ! subject ( ! petition2 7,b7 assi/ ! cov]$ p]son 9 comply+ ) ! requirem5ts ( ,f$]al regulators ( ! f9ancial innovation2 & 7,c7 assi/ ! cov]$ p]son 9 respond+ to any *all5ges to a modification or a waiv] grant$ "u subsection 7d74 7d7 ,waiv] au?ority ,) respect to a cov]$ p]son ^: petition has be5 approv$ "u section #g1 if an ag5cy has a rational basis = do+ s & if ! ag5cy det]m9es t a provision ( a ,f$]al /atute "u :i* ! ag5cy has rulemak+ au?ority or an ag5cy regulation is unduly burd5some to ! cov]$ p]son1 ! ag5cy %all1 act+ ?r\gh ! ag5cy's ,,fsio1 modify or waive ! application ( ! ,f$]al /atute or ! ag5cy regulation4 7e7 ,t]m9ation ( o!r programs2 transf] ( au?ority ,n lat] ?an #ij days aft] ! e/abli%m5t ( a ,,fsio at an ag5cy1 ! ag5cy %all modify any (fices or programs at ! ag5cy t promote f9ancial innovations or assi/ cov]$ p]sons 9 develop+ f9ancial innovations to op]ate )9 ! ,,fsio4 ,any legal action or proce$+ comm5c$ by or aga9/ su* (fice or program ( ! ag5cy1 includ+ no-action lett]s & /aff advisory op9ions1 %all be transf]r$ to ! ,,fsio ( t ag5cy4 7f7 ,report ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 & annually !reaft]1 ea* ag5cy %all submit a report to ,congress & to ! ,f9ancial ,/ability ,ov]sight ,c\ncil1 & %all pres5t te/imony to ,congress1 on ! activities ( ! ,,fsio1 includ+ a description ( ! petitions consid]$1 ! rationale = acceptance or rejection ( petitions1 & ! ef=ts ( ! ,,fsio to enc\rage f9ancial innovations4 7g7 ,sunset ,if an ag5cy has n receiv$ a petition describ$ 9 section #f )9 #e ye>s ( ! date ( ! e/abli%m5t ( ! ag5cy's ,,fsio1 ! ag5cy %all elim9ate ! ,,fsio1 :ile cont9u+ to honor any en=ceable compliance agreem5t ( ano!r ag5cy4 #e4 ,,fsio ,liaison ,committee & *air 7a7 ,e/abli%m5t ,n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ag5cies %all e/abli% a committee to be kn[n z ! ,,fsio ,liaison ,committee4 7b7 ,memb]s ,! ,,fsio ,liaison ,committee %all be compos$ ( ! ,director ( ea* ,,fsio (fice & a ,/ate bank+ sup]visor select$ by ! ,conf]5ce ( ,/ate ,bank ,sup]visors 7or a successor organization74 7c7 ,duties ,! ,,fsio ,liaison ,committee %all-- 7#a7 consult on ! adm9i/ration1 coord9ation1 & ov]sight ( ea* ag5cy's ,,fsio2 7#b7 facilitate ! coop]ation ( ea* ,,fsio to ensure t ag5cies %>e in=mation & data on petitions submitt$ "u section #f2 7#c7 monitor regulatory proposals & developm5ts relat$ to f9ancial innovations2 7#d7 enc\rage ! application ( uni=m pr9ciples & /&>ds at ea* ,,fsio2 & 7#e7 hold public field he>+s #d times a ye> to in=mally provide-- 7,a7 in=mation & advice to ! public & cov]$ p]sons2 & 7,b7 a =um to ga!r in=mation f ! public & cov]$ p]sons4 7d7 ,meet+s ,! ,,fsio ,liaison ,committee %all meet at lea/ twice a ye>4 7e7 ,*air 7#a7 ,e/abli%m5t ,! fir/ ,*air ( ! ,,fsio ,liaison ,committee %all be elect$ by ! memb]s4 ,! ,*air %all s]ve = a t]m ( #b ye>s & !reaft] ! *airman%ip %all rotate among ! memb]s ( ! committee4 7#b7 ,p[]s ( ! ,*air ,! ,*air is au?oriz$ to c>ry out ! int]nal adm9i/ration ( ! ,,fsio ,liaison ,committee1 includ+ ! appo9tm5t & sup]vision ( employees & ! di/ribution ( tasks among memb]s1 employees1 & adm9i/rative units4 7f7 ,te/imony ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,*air ( ! ,,fsio ,liaison ,committee %all pres5t te/imony to ,congress on ! activities ( ! ,,fsio ,liaison ,committee4 7g7 ,fund+ 7#a7 ,comp5sation ( memb]s ,ea* memb] ( ! ,,fsio ,liaison ,committee %all s]ve )\t additional comp5sation b %all be entitl$ to reasonable exp5ses incurr$ 9 c>ry+ out (ficial duties z su* a memb]4 7#b7 ,g5]al exp5ses ,! co/s & exp5ses ( ! ,,fsio ,liaison ,committee1 includ+ ! sal>ies ( employees1 %all be split equally betwe51 & paid by1 ea* ag5cy o!r ?an an ag5cy t has elim9at$ ! ag5cy's ,,fsio pursuant to section #d7;g74 #f4 ,petition to ag5cy 7a7 ,9 g5]al ,a cov]$ p]son may submit a petition to an ag5cy1 ?r\gh ! ag5cy's ,,fsio1 9 su* =m & 9 su* mann] z ! ag5cy's ,,fsio may require1 to reque/ to ent] into an en=ceable compliance agreem5t conta9+ a modification or waiv] ( an ag5cy regulation or ,f$]al /atutory requirem5t "u :i* ! ag5cy has sup]visory or rulemak+ au?ority ) respect to ! cov]$ p]son or a f9ancial innovation ! cov]$ p]son (f]s or int5ds to (f]4 7b7 ,cont5ts ,9 a petition submitt$ "u ?is section1 ! cov]$ p]son %all-- 7#a7 submit an alt]native compliance /rategy t proposes a me?od to comply ) ! ag5cy regulation or ,f$]al /atutory requirem5t2 & 7#b7 demon/rate t "u ! alt]native compliance /rategy1 ! f9ancial innovation-- 7,a7 w\ld s]ve ! public int]e/2 7,b7 improves access to f9ancial products or s]vices2 & 7,c7 does n pres5t sy/emic risk to ! ,unit$ ,/ates f9ancial sy/em & promotes consum] protection4 7c7 ,multip>ty petitions ,"o or m cov]$ p]sons t (f] or int5d to (f] simil> f9ancial innovations may jo9tly submit a petition "u ?is section4 7d7 ,safe h>bor 7#a7 ,9 g5]al ,dur+ ! p]iod aft] a cov]$ p]son submits a petition "u ?is section & be=e ! ag5cy receiv+ ! petition makes a det]m9ation on ! petition pursuant to section #g1 an ag5cy may n take an en=cem5t action aga9/ a cov]$ p]son relat+ to ! f9ancial innovation t 0 ! subject ( ! petition4 7#b7 ,injunctive relief ,if an ag5cy det]m9es t a f9ancial innovation describ$ "u p>agraph 7#a7 pres5ts an imm$iate dang] to consum]s or pres5ts sy/emic risk to ! ,unit$ ,/ates f9ancial sy/em1 ! ag5cy may apply to a c\rt ( compet5t jurisdiction = injunction to prohibit a cov]$ p]son f (f]+ su* f9ancial innovation dur+ ! p]iod describ$ 9 p>agraph 7#a74 7e7 ,notice & comm5t 7#a7 ,9 g5]al ,n lat] ?an #cj days aft] receiv+ a petition1 ! ag5cy t receives ! petition %all publi% ! petition 9 ! ,f$]al ,regi/] & provide a #fj-;day p]iod = public notice & comm5t4 7#b7 ,exception = notice & comm5t p]iod ,! ag5cy t receives ! petition may waive ! notice & comm5t p]iod describ$ 9 p>agraph 7#a7 if su* ag5cy det]m9es t ! cov]$ p]son submitt+ ! petition is simil>ly situat$ to ano!r cov]$ p]son t has be5 grant$ approval ( a petition pursuant to section #g4 7#c7 ,confid5tiality ,! ag5cy %all ma9ta9 ! confid5tiality ( any nonpublicly available data or in=mation 9 any petition submitt$ "u ?is section4 ,! ag5cy %all give reasonable consid]ation to ma9ta9+ ! confid5tiality ( data or in=mation id5tifi$ by ! cov]$ p]son 9 ! petition submitt+ "u ?is section z nonpublicly available data or in=mation4 #g4 ,ag5cy det]m9ation ( petition 7a7 ,9 g5]al ,n lat] ?an #cj days aft] ! end ( ! comm5t p]iod describ$ "u section #f1 or if ! comm5t p]iod 0 waiv$1 n lat] ?an #fj days aft] receipt ( a petition "u section #f1 ! head ( ! ag5cy receiv+ ! petition %all complete a review ( ! petition & notify ! cov]$ p]son1 9 writ+1 ( ! ag5cy's det]m9ation ( ! petition4 7b7 ,approval ,if ! cov]$ p]son submitt+ ! petition %[s t x is m likely ?an n t ! cov]$ p]son meets ! requirem5ts = e/abli%+ an alt]native compliance /rategy1 ! ag5cy %all-- 7#a7 approve ! petition2 & 7#b7 ent] into an en=ceable compliance agreem5t ) ! cov]$ p]son 9 accordance ) ! requirem5ts ( section #h4 7c7 ,disapproval 7#a7 ,explanation ,if ! ag5cy rejects a petition1 ! ag5cy head %all provide ! cov]$ p]son ) a writt5 notice expla9+ ! reason = reject+ ! petition1 includ+-- 7,a7 evid5ce t ! cov]$ p]son did n satisfy ! requirem5ts = e/abli%+ an alt]native compliance /rategy2 7,b7 an id5tification ( ! rules or regulations ( ! ag5cy applicable to ! cov]$ p]son ) respect to ! f9ancial innovation2 & 7,c7 a description (-- 7i7 any b5eficial effects1 includ+ an id5tification ( p]sons likely to b5efit1 f reject+ ! petition2 7ii7 any pot5tial co/s1 includ+ an id5tification ( p]sons likely to be> ! co/s1 ( reject+ ! petition2 & 7iii7 ! basel9e us$ by ! ag5cy to measure ! likely economic consequ5ces ( reject+ ! petition4 7#b7 ,resubmittal ,n lat] ?an #ij days aft] receiv+ a notice ( disapproval1 a cov]$ p]son may revise & resubmit a petition to ! ag5cy "u section #f4 7d7 ,moratorium ,if an ag5cy disapproves a petition submitt$ 9 good fai? "u ?is section1 ! ag5cy %all provide ! cov]$ p]son notice & a reasonable am\nt ( "t be=e ! ag5cy takes an en=cem5t action aga9/ ! cov]$ p]son relat+ to ! f9ancial innovation t 0 ! subject ( ! petition4 7e7 ,judicial review ,a cov]$ p]son may seek judicial review ( an ag5cy's det]m9ation on a petition 9 accordance ) sub*apt] ,,ii ( *apt] #e ( title #e1 ,unit$ ,/ates ,code1 & *apt] #g ( title #e1 ,unit$ ,/ates ,code 7commonly kn[n z ! ,adm9i/rative ,proc$ure ,act74 #h4 ,en=ceable compliance agreem5t 7a7 ,9 g5]al ,if an ag5cy approves a petition "u section #g1 ! cov]$ p]son may ent] into an en=ceable compliance agreem5t ) ! ag5cy1 :i* %all include ! t]ms "u :i* ! cov]$ p]son may develop or (f] ! approv$ f9ancial innovation to ! public & any requirem5ts ( ! cov]$ p]son & any ag5cy ) respect to ! f9ancial innovation4 7b7 ,requirem5ts ,ea* ag5cy1 by rule1 %all e/abli% requirem5ts relat+ to en=ceable compliance agreem5ts t include-- 7#a7 proc$ures = modify+ ! t]ms ( ! agreem5t2 7#b7 consequ5ces = failure to comply ) ! t]ms ( ! agreem5t2 7#c7 a compliance exam9ation process t-- 7,a7 solicits fe$back f o!r ag5cies on ! agreem5t2 & 7,b7 occurs n less frequ5tly ?an annually2 7#d7 a t]m9ation date = ! agreem5t t is at lea/ #a ye> aft] ! date on :i* ! agreem5t is ent]$ into2 7#e7 proc$ures = ext5d+ ! t]m9ation date2 7#f7 proc$ures = judicial review ( ano!r ag5cy's or ,/ate's *all5ge to ! agreem5t 9 accordance ) sub*apt] ,,ii ( *apt] #e ( title #e1 ,unit$ ,/ates ,code1 & *apt] #g ( title #e1 ,unit$ ,/ates ,code 7commonly kn[n z ! ,adm9i/rative ,proc$ure ,act72 & 7#g7 proc$ures = ma9ta9+ ! confid5tiality ( any in=mation disclos$ to ! ag5cy 9 mak+ ! agreem5t4 7c7 ,multip>ty agreem5ts ,) respect to a f9ancial innovation t is ! subject ( an en=ceable compliance agreem5t ent]$ into "u ?is section1 an ag5cy t did n ent] into su* en=ceable compliance agreem5t may jo9 z a p>ty to ! en=ceable compliance agreem5t ent]$ into pursuant to ?is section4 7d7 ,limitation on en=cem5t actions 7#a7 ,9 g5]al ,if a cov]$ p]son & an ag5cy ent] into an en=ceable compliance agreem5t-- 7,a7 ano!r ag5cy may n comm5ce an en=cem5t action aga9/ ! cov]$ p]son ) respect to ! f9ancial innovation t is ! subject ( ! en=ceable compliance agreem5t2 & 7,b7 a ,/ate may n comm5ce an en=cem5t action aga9/ ! cov]$ p]son ) respect to ! f9ancial innovation t is ! subject ( ! en=ceable compliance agreem5t1 if ! cov]$ p]son provides ! ,/ate )-- 7i7 ! en=cem5t compliance agreem5t2 & 7ii7 a /atem5t ( policies & proc$ures ! cov]$ p]son has 9 place to comply ) ,/ate laws t are applicable to ! f9ancial innovation4 7#b7 ,/ate exception = consum] h>m ,not)/&+ p>agraph 7#a77;,b71 a ,/ate may comm5ce an en=cem5t action aga9/ a cov]$ p]son ) respect to a f9ancial innovation t is ! subject ( an en=ceable compliance agreem5t if1 9 an action br\ght by ! ,/ate 9 a c\rt ( compet5t jurisdiction1 ! c\rt det]m9es t ! ag5cy's action 0 arbitr>y & caprici\s & ! f9ancial innovation has sub/antially h>m$ consum]s )9 su* ,/ate4 7e7 ,arbitration ,a cov]$ p]son may elect to arbitrate any action initiat$ by ano!r p]son relat+ to a f9ancial innovation t is ! subject ( ! en=ceable compliance agreem5t4 #i4 ,report to ,congress ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 & annually !reaft]1 ! ,f9ancial ,/ability ,ov]sight ,c\ncil %all submit to ,congress a report on ! aggregate impact ( en=ceable compliance agreem5ts ent]$ into "u ?is ,act1 :i* %all include-- 7#a7 ! numb] & *>act]i/ics ( ! agreem5ts2 7#b7 ! mo/ innovative & lea/ burd5some tools t ! ag5cy's ,,fsio has implem5t$ = a*iev+ regulatory ends2 7#c7 /rategies implem5t$ to coord9ate & facilitate int]ag5cy coop]ation among ag5cy ,f,s,i,os2 7#d7 ! exi/+ ,f$]al & ,/ate laws1 regulations1 or practices 7includ+ guidance mat]ials1 exam9ations1 & en=cem5t proce$+s & settlem5ts7 t ! ,f9ancial ,/ability ,ov]sight ,c\ncil id5tifies z ! mo/ burd5some to innovation 9 develop+ or provid+ f9ancial products & s]vices1 t adv]sely affect competition 9 ! f9ancial s]vices indu/ry1 or t re/rict improvem5ts = consum]s ( f9ancial products or s]vices2 & 7#e7 an id5tification ( ! ov]lap or fragm5tation ( regulation ( f9ancial products or s]vices & recomm5dations = r$uc+1 consolidat+1 or elim9at+ su* ov]lap or fragm5tation4 #aj4 ,fund+ ,! co/s ( c>ry+ out ! requirem5ts ( ?is ,act 7except z specifi$ 9 section #e7;g77 %all be split equally betwe51 & paid by1 ea* ag5cy = fiscal ye>s #bjag ?r\gh #bjba4