,,ib ,union ,cal5d> ,no4 #fed #aah? ,,congress #b;d ,session ,h4 ,r4 #gddj ,report ,no4 #aah-gib ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #bc1 #bjbd,mr4 ,mc,henry introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,decemb] #d1 #bjbd;,additional sponsors3 ,mr4 ,donalds & ,mr4 ,emm] ,decemb] #d1 #bjbd,report$ ) an am5dm5t1 committ$ to ! ,committee ( ! ,:ole ,h\se on ! ,/ate ( ! ,union1 & ord]$ to be printed,strike out all aft] ! enact+ clause & ins]t ! "p pr9t$ 9 italic,for text ( introduc$ bill1 see copy ( bill z introduc$ on ,febru>y #bc1 #bjbd ,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 ( #bjbd4 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 or designation ( ,,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 #b4 ,def9itions ,9 ?is ,act1 ! foll[+ def9itions %all apply3 7#a7 ,ag5cy ,! t]m ag5cy means ea* ( ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,bureau ( ,consum] ,f9ancial ,protection1 ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t1 ! ,dep>tm5t ( ! ,treasury1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ! ,national ,cr$it ,union ,adm9i/ration1 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 & ! ,securities & ,ex*ange ,commission4 7#b7 ,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%$1 propos$1 or int]im rule1 policy /atem5t1 directive1 adjudication1 or int]pretation ( an ag5cy4 7#c7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#d7 ,en=ceable compliance agreem5t ,! t]m en=ceable compliance agreem5t means an agreem5t describ$ "u section #h4 7#e7 ,f9ancial innovation ,! t]m f9ancial innovation means a f9ancial product or s]vice 7z def9$ 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha77-- 7,a7 ! deliv]y ( :i* is enabl$ by te*nology2 & 7,b7 t is or may be subject to an ag5cy regulation or ,f$]al /atute4 7#f7 ,,fsio ,! t]m ,,fsio means a ,f9ancial ,s]vices ,innovation ,(fice e/abli%$ pursuant to section #d4 7#g7 ,p]son ,! t]m p]son means an individual1 p>tn]%ip1 company1 corporation1 association1 tru/1 e/ate1 coop]ative organization1 or o!r entity4 #c4 ,ag5cy id5tification ( regulatory areas ,n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is ,act1 & biannually !reaft]1 ea* ag5cy %all publi% 9 ! ,f$]al ,regi/] a nonexclusive li/ t id5tifies #c or m areas ( exi/+ ag5cy regulation-- 7#a7 t apply or may apply to a f9ancial innovation2 & 7#b7 t ! ag5cy w\ld consid] modify+ or waiv+ if ! ag5cy 7 to receive a petition "u section #f relat+ to t regulation4 #d4 ,e/abli%m5t or designation ( ,,fsio at ag5cies 7a7 ,9 g5]al ,ea* ag5cy %all e/abli% or designate an (fice )9 ! ag5cy to be kn[n z ! ,f9ancial ,s]vices ,innovation ,(fice4 ,ea* su* ,f9ancial ,s]vices ,innovation ,(fice %all promote f9ancial innovations & assi/ p]sons ^: petitions are approv$ "u section #g4 7b7 ,adm9i/ration ,ea* ag5cy %all designate an individual to s]ve z ! head ( ! ag5cy's ,,fsio4 7c7 ,duties 7#a7 ,g5]al duties ,! head ( ea* ag5cy's ,,fsio %all-- 7,a7 support ! developm5t ( f9ancial innovations2 7,b7 coord9ate ) ,f,s,i,os at o!r ag5cies to %>e in=mation & data ab\t f9ancial innovations2 7,c7 ^u reque/1 coord9ate ) relevant ,/ate regulatory entities to provide in=mation to ! public ) respect to f9ancial innovations & ag5cy regulations relat$ to su* f9ancial innovations2 & 7,d7 e/abli% proc$ures to r$uce ! regulatory burd5 ( (f]+ a f9ancial innovation to ! public & enable great] access to f9ancial innovations4 7#b7 ,duties = petitions ,) respect to a p]son ) an approv$ petition "u section #g1 ! head ( ea* ag5cy's ,,fsio %all-- 7,a7 "w ) ! p]son to address issues ( h[ exi/+ regulatory frameworks ( ! ag5cy apply to ! f9ancial innovation t is ! subject ( ! petition2 7,b7 assi/ ! p]son 9 comply+ ) any requirem5ts ( ! ag5cy ) respect to ! f9ancial innovation2 & 7,c7 assi/ ! p]son 9 respond+ to any *all5ges to a modification or a waiv] grant$ "u subsection 7d74 7d7 ,waiv] au?ority ,! head ( ea* ag5cy1 act+ ?r\gh ! ag5cy's ,,fsio1 may modify or waive ! application ( an ag5cy regulation ( ! ag5cy or a ,f$]al /atute "u :i* ! ag5cy has rulemak+ au?ority if-- 7#a7 a petition has be5 approv$ "u section #g2 & 7#b7 ! ag5cy det]m9es t compliance ) su* ag5cy regulation or ,f$]al /atute w\ld imp$e ! ability ( a p]son to (f] ! f9ancial innovation t is ! subject ( ! petition4 7e7 ,t]m9ation ( o!r programs2 transf] ( au?ority 7#a7 ,9 g5]al ,n lat] ?an #ij days aft] ! e/abli%m5t or designation ( a ,,fsio at an ag5cy1 ! ag5cy %all modify any (fices or programs at ! ag5cy t promote f9ancial innovations or assi/ p]sons 9 (f]+ f9ancial innovations1 & m]ge or transf] ! op]ations ( su* (fices or programs into ! ,,fsio4 7#b7 ,transf] ( au?ority ,on ! date t is #ij days aft] ! e/abli%m5t or designation ( a ,,fsio at an ag5cy1 ! adm9i/ration ( any rule1 policy1 or prior ag5cy det]m9ations relat+ to promot+ f9ancial innovations or assi/+ p]sons 9 (f]+ f9ancial innovations1 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 pres5t te/imony to ! ,congress & submit a report to ! ,congress & to ! ,f9ancial ,/ability ,ov]sight ,c\ncil on ! activities ( ! ,,fsio ( su* ag5cy1 includ+ a description ( ! petitions consid]$1 ! rationale = acceptance or rejection ( petitions1 & ! ef=ts ( ! ,,fsio to enc\rage f9ancial innovations4 #e4 ,,fsio ,liaison ,committee & *air 7a7 ,e/abli%m5t ,n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ag5cies %all e/abli% a committee to be kn[n z ! ,,fsio ,liaison ,committee4 7b7 ,memb]s ,! ,,fsio ,liaison ,committee %all be compos$ ( ! head ( ea* ,,fsio describ$ "u section #d & 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 ) ! ,,fsio ( ea* ag5cy2 7#b7 facilitate ! coop]ation ( ea* ,,fsio to ensure t ag5cies %>e in=mation & data on petitions submitt$ "u section #f2 7#c7 monitor proposals = ag5cy regulation & developm5ts relat$ to f9ancial innovations2 7#d7 enc\rage ! application ( uni=m pr9ciples & /&>ds at ea* ,,fsio2 & 7#e7 facilitate collaboration ) relevant ,/ate regulatory entities to provide in=mation to ! public ) respect to f9ancial innovations & ag5cy regulations relat$ to su* f9ancial innovations4 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 & annually !reaft]1 ! ,*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* ag5cy4 #f4 ,petition to ag5cy 7a7 ,9 g5]al ,a 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 ( ! ag5cy or ! ,f$]al /atute "u :i* ! ag5cy has rulemak+ au?ority ) respect to-- 7#a7 ! p]son2 or 7#b7 a f9ancial innovation ! p]son (f]s or int5ds to (f]4 7b7 ,cont5ts ,9 a petition submitt$ "u ?is section1 ! p]son %all-- 7#a7 id5tify any requirem5t "u :i* ! ag5cy has rulemak+ au?ority or ! ag5cy regulation ( ! ag5cy = :i* ! p]son is reque/+ a modification or waiv]2 7#b7 expla9 :y su* modification or waiv] is ess5tial to ! op]ation ( ! p]son2 7#c7 submit an alt]native compliance /rategy t proposes a me?od to comply ) su* requirem5t or ag5cy regulation2 7#d7 demon/rate t "u ! alt]native compliance /rategy1 ! f9ancial innovation-- 7,a7 w\ld s]ve ! public int]e/2 7,b7 improves consum] access to a f9ancial product or s]vice2 7,c7 w\ld n pres5t a national security risk to ! ,unit$ ,/ates2 7,d7 w\ld meet ! purposes ( anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism obligations "u ! ,bank ,secrecy ,act2 7,e7 w\ld n pres5t sy/emic risk to ! ,unit$ ,/ates f9ancial sy/em2 & 7,f7 w\ld promote consum] protection2 7#e7 provide a detail$ bus9ess plan2 & 7#f7 propose a date on :i* an en=ceable compliance agreem5t w\ld t]m9ate & expla9 :y su* t]m9ation date w\ld be appropriate4 7c7 ,multip>ty petitions ,"o or m p]sons t (f] or int5d to (f] simil> f9ancial innovations may jo9tly submit a petition "u ?is section4 7d7 ,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 ! p]son submitt+ ! petition is simil>ly situat$ to ano!r 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 ! p]son 9 ! petition submitt$ "u ?is section4 #g4 ,ag5cy det]m9ation ( petition 7a7 ,9 g5]al ,n lat] ?an #cj days aft] ! end ( ! comm5t p]iod describ$ "u section #f 7or if ! comm5t p]iod 0 waiv$1 n lat] ?an #ij days aft] receipt ( a petition "u section #f71 ! head ( ! ag5cy receiv+ ! petition %all complete a review ( ! petition & notify ! p]son :o submitt$ ! petition1 9 writ+1 ( ! ag5cy's det]m9ation ( ! petition4 7b7 ,approval ( petition 7#a7 ,9 g5]al ,an ag5cy %all approve a petition if ! ag5cy has det]m9$ t-- 7,a7 ! alt]native compliance /rategy propos$ by ! p]son 9 ! petition satisfies ! requirem5ts describ$ 9 section #f7;b77#d72 & 7,b7 ! p]son :o submitt$ ! petition has1 ) respect to ! f9ancial innovation ! p]son (f]s or int5ds to (f]1 suffici5tly id5tifi$-- 7i7 ! regulations & ,f$]al /atutes ( :i* ! p]son is seek+ waiv] or modification2 & 7ii7 o!r applicable regulations & ,f$]al /atutes ) :i* ! p]son int5ds to comply4 7#b7 ,notification to ,/ate regulatory ag5cies ,if an ag5cy approves a petition1 ! ag5cy %all1 ) respect to ea* ,/ate regulatory ag5cy ) jurisdiction ov] ! p]son :o submitt$ ! petition or ! f9ancial innovation ab\t :i* ! p]son submitt$ ! petition-- 7,a7 notify su* ,/ate regulatory ag5cy t ! ag5cy has approv$ ! petition2 & 7,b7 provide su* ,/ate regulatory ag5cy in=mation ab\t ! t]ms ( ! en=ceable compliance agreem5t ent]$ into betwe5 ! p]son & ! ag5cy4 7c7 ,disapproval ( petition 7#a7 ,9 g5]al ,an ag5cy may disapprove a petition if ! ag5cy has det]m9$ t-- 7,a7 ! alt]native compliance /rategy propos$ by ! p]son 9 ! petition does n satisfy ! requirem5ts describ$ 9 section #f7;b77#d72 or 7,b7 ! p]son :o submitt$ ! petition has n1 ) respect to ! f9ancial innovation ! p]son (f]s or int5ds to (f]1 suffici5tly id5tifi$-- 7i7 ! regulations & ,f$]al /atutes ( :i* ! p]son is seek+ waiv] or modification2 & 7ii7 o!r applicable regulations & ,f$]al /atutes ) :i* ! p]son int5ds to comply4 7#b7 ,writt5 notice requir$ ,if an ag5cy disapproves a petition ! ag5cy %all provide ! p]son :o submitt$ ! petition ) a writt5 notice expla9+ ! reason = su* disapproval & su* writt5 notice %all include a description (-- 7,a7 any b5efits ( disapprov+ ! petition1 includ+ an id5tification ( p]sons likely to b5efit f ! disapproval ( ! petition2 7,b7 any co/s1 includ+ pot5tial co/s1 ( disapprov+ ! petition1 includ+ an id5tification ( p]sons likely to be> ! co/s associat$ ) ! disapproval ( ! petition2 & 7,c7 ! basel9e us$ by ! ag5cy to det]m9e ! likely economic consequ5ces ( disapprov+ ! petition4 7d7 ,resubmittal ,receipt ( a notice ( disapproval ( a petition "u ?is subsection %all n preclude a p]son f revis+ & resubmitt+ su* petition to ! ag5cy "u section #f4 7e7 ,judicial review ,a 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 ( su* title 7commonly kn[n z ! ,adm9i/rative ,proc$ure ,act74 #h4 ,en=ceable compliance agreem5t 7a7 ,9 g5]al ,if an ag5cy approves a petition "u section #g1 ! p]son :o submitt$ su* petition %all ent] into an en=ceable compliance agreem5t ) su* ag5cy1 :i* %all include-- 7#a7 ! t]ms "u :i* ! approv$ f9ancial innovation may be develop$ or (f]$ to ! public2 & 7#b7 any requirem5ts ( ! p]son & su* 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> & n m ?an #c ye>s aft] ! date on :i* ! agreem5t is ent]$ into2 7#e7 proc$ures & /&>ds = ext5d+ ! t]m9ation date1 includ+ proc$ures & /&>ds = evaluat+ ! effectiv5ess ( ! agreem5t2 & 7#f7 proc$ures = ma9ta9+ ! confid5tiality ( any in=mation disclos$ to ! ag5cy dur+ ! process ( draft+ & ent]+ into agreem5t4 7c7 ,jo9+ ( agreem5t by additional ag5cies ,) 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 ,en=cem5t actions by non-p>ty ag5cies ,an ag5cy t is n a p>ty to an en=ceable compliance agreem5t ent]$ into "u ?is section-- 7#a7 may n attempt to en=ce1 aga9/ ! p]son :o is p>ty to ! en=ceable compliance agreem5t1 any regulation or ,f$]al /atute modifi$ or waiv$ by ! en=ceable compliance agreem5t2 & 7#b7 may cont9ue to en=ce1 aga9/ ! p]son :o is p>ty to ! en=ceable compliance agreem5t1 any regulation or ,f$]al law ov] :i* ! ag5cy has en=cem5t au?ority t has n be5 modifi$ or waiv$ by ! en=ceable compliance agreem5t4 7e7 ,arbitration ,a p]son :o is p>ty to ! en=ceable compliance agreem5t may elect to arbitrate any action initiat$ by ano!r p]son relat+ to a f9ancial innovation t is ! subject ( ! en=ceable compliance agreem5t4 7f7 ,rule ( con/ruction ,no?+ 9 ?is ,act %all be con/ru$ to limit ! ability ( an ag5cy to en=ce ! requirem5ts ( an en=ceable compliance agreem5t ent]$ into "u ?is ,act4 #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 ! ag5cies' ,f,s,i,os h implem5t$ to all[ a f9ancial innovation t is ! subject ( an en=ceable compliance agreem5t to be (f]$2 7#c7 /rategies implem5t$ to coord9ate & facilitate coop]ation among ,f,s,i,os2 7#d7 ! exi/+ ,f$]al laws1 regulations1 or practices t ! ,f9ancial ,/ability ,ov]sight ,c\ncil id5tifies z ! mo/ burd5some to innovation t adv]sely affect competition 9 ! f9ancial s]vices indu/ry1 or t re/rict improvem5ts = consum]s ( f9ancial products or s]vices2 & 7#e7 an id5tification ( ! ov]lap or fragm5tation ( ag5cy regulations ( f9ancial products or s]vices & recomm5dations = r$uc+1 consolidat+1 or elim9at+ su* ov]lap or fragm5tation4 ,decemb] #d1 #bjbd,report$ ) an am5dm5t1 committ$ to ! ,committee ( ! ,:ole ,h\se on ! ,/ate ( ! ,union1 & ord]$ to be pr9t$