[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5911 Referred in Senate (RFS)]
<DOC>
117th CONGRESS
2d Session
H. R. 5911
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 12, 2022
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To amend the Federal Deposit Insurance Act and the Federal Credit Union
Act to expand employment opportunities for those with a previous minor
criminal offense, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Hiring in Banking Act''.
SEC. 2. FEDERAL DEPOSIT INSURANCE ACT.
Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is
amended--
(1) by inserting after subsection (b) the following:
``(c) Exceptions.--
``(1) Certain older offenses.--
``(A) In general.--With respect to an individual,
subsection (a) shall not apply to an offense if--
``(i) it has been 7 years or more since the
offense occurred; or
``(ii) the individual was incarcerated with
respect to the offense and it has been 5 years
or more since the individual was released from
incarceration.
``(B) Offenses committed by individuals 21 or
younger.--For individuals who committed an offense when
they were 21 years of age or younger, subsection (a)
shall not apply to the offense if it has been more than
30 months since the sentencing occurred.
``(C) Limitation.--This paragraph shall not apply
to an offense described under subsection (a)(2).
``(2) Expungement and sealing.--With respect to an
individual, subsection (a) shall not apply to an offense if--
``(A) there is an order of expungement, sealing, or
dismissal that has been issued in regard to the
conviction in connection with such offense; and
``(B) it is intended by the language in the order
itself, or in the legislative provisions under which
the order was issued, that the conviction shall be
destroyed or sealed from the individual's State or
Federal record, even if exceptions allow the record to
be considered for certain character and fitness
evaluation purposes.
``(3) De minimis exemption.--
``(A) In general.--Subsection (a) shall not apply
to such de minimis offenses as the Corporation
determines, by rule.
``(B) Confinement criteria.--In issuing rules under
subparagraph (A), the Corporation shall include a
requirement that the offense was punishable by a term
of three years or less confined in a correctional
facility, where such confinement--
``(i) is calculated based on the time an
individual spent incarcerated as a punishment
or a sanction, not as pretrial detention; and
``(ii) does not include probation or parole
where an individual was restricted to a
particular jurisdiction or was required to
report occasionally to an individual or a
specific location.
``(C) Bad check criteria.--In setting the criteria
for de minimis offenses under subparagraph (A), if the
Corporation establishes criteria with respect to
insufficient funds checks, the Corporation shall
require that the aggregate total face value of all
insufficient funds checks across all convictions or
program entries related to insufficient funds checks is
$2,000 or less.
``(D) Designated lesser offenses.--Subsection (a)
shall not apply to certain lesser offenses (including
the use of a fake ID, shoplifting, trespass, fare
evasion, driving with an expired license or tag, and
such other low-risk offenses as the Corporation may
designate) if 1 year or more has passed since the
applicable conviction or program entry.''; and
(2) by adding at the end the following:
``(f) Consent Applications.--
``(1) In general.--The Corporation shall accept consent
applications from an individual and from an insured depository
institution or depository institution holding company on behalf
of an individual that are filed separately or contemporaneously
with a regional office of the Corporation.
``(2) Sponsored applications filed with regional offices.--
Consent applications filed at a regional office of the
Corporation by an insured depository institution or depository
institution holding company on behalf of an individual--
``(A) shall be reviewed by such office;
``(B) may be approved or denied by such office, if
such authority has been delegated to such office by the
Corporation; and
``(C) may only be denied by such office if the
general counsel of the Corporation (or a designee)
certifies that the denial is consistent with this
section.
``(3) Individual applications filed with regional
offices.--Consent applications filed at a regional office by an
individual--
``(A) shall be reviewed by such office; and
``(B) may be approved or denied by such office, if
such authority has been delegated to such office by the
Corporation, except with respect to--
``(i) cases involving an offense described
under subsection (a)(2); and
``(ii) such other high-level security cases
as may be designated by the Corporation.
``(4) National office review.--The national office of the
Corporation shall--
``(A) review any consent application with respect
to which a regional office is not authorized to approve
or deny the application; and
``(B) review any consent application that is denied
by a regional office, if the individual requests a
review by the national office.
``(5) Forms and instructions.--
``(A) Availability.--The Corporation shall make all
forms and instructions related to consent applications
available to the public, including on the website of
the Corporation.
``(B) Contents.--The forms and instructions
described under subparagraph (A) shall provide a sample
cover letter and a comprehensive list of items that may
accompany the application, including clear guidance on
evidence that may support a finding of rehabilitation.
``(6) Consideration of criminal history.--
``(A) Regional office consideration.--In reviewing
a consent application, a regional office shall--
``(i) primarily rely on the criminal
history record of the Federal Bureau of
Investigation; and
``(ii) provide such record to the applicant
to review for accuracy.
``(B) Certified copies.--The Corporation may not
require an applicant to provide certified copies of
criminal history records unless the Corporation
determines that there is a clear and compelling
justification to require additional information to
verify the accuracy of the criminal history record of
the Federal Bureau of Investigation.
``(7) Consideration of rehabilitation.--Consistent with
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et
seq.), the Corporation shall--
``(A) conduct an individualized assessment when
evaluating consent applications that takes into account
evidence of rehabilitation, the applicant's age at the
time of the conviction or program entry, the time that
has elapsed since conviction or program entry, and the
relationship of individual's offense to the
responsibilities of the applicable position;
``(B) consider the individual's employment history,
letters of recommendation, certificates documenting
participation in substance abuse programs, successful
participating in job preparation and educational
programs, and other relevant mitigating evidence; and
``(C) consider any additional information the
Corporation determines necessary for safety and
soundness.
``(8) Scope of employment.--With respect to an approved
consent application filed by an insured depository institution
or depository institution holding company on behalf of an
individual, if the Corporation determines it appropriate, such
approved consent application shall allow the individual to work
for the same employer (without restrictions on the location)
and across positions, except that the prior consent of the
Corporation (which may require a new application) shall be
required for any proposed significant changes in the
individual's security-related duties or responsibilities, such
as promotion to an officer or other positions that the employer
determines will require higher security screening credentials.
``(9) Coordination with the ncua.--In carrying out this
section, the Corporation shall consult and coordinate with the
National Credit Union Administration as needed to promote
consistent implementation where appropriate.
``(g) Definitions.--In this section:
``(1) Consent application.--The term `consent application'
means an application filed with Corporation by an individual
(or by an insured depository institution or depository
institution holding company on behalf of an individual) seeking
the written consent of the Corporation under subsection (a)(1).
``(2) Criminal offense involving dishonesty.--The term
`criminal offense involving dishonesty'--
``(A) means an offense under which an individual,
directly or indirectly--
``(i) cheats or defrauds; or
``(ii) wrongfully takes property belonging
to another in violation of a criminal statute;
``(B) includes an offense that Federal, State, or
local law defines as dishonest, or for which dishonesty
is an element of the offense; and
``(C) does not include--
``(i) a misdemeanor criminal offense
committed more than one year before the date on
which an individual files a consent
application, excluding any period of
incarceration; or
``(ii) an offense involving the possession
of controlled substances.
``(3) Pretrial diversion or similar program.--The term
`pretrial diversion or similar program' means a program
characterized by a suspension or eventual dismissal or reversal
of charges or criminal prosecution upon agreement by the
accused to restitution, drug or alcohol rehabilitation, anger
management, or community service.''.
SEC. 3. FEDERAL CREDIT UNION ACT.
Section 205(d) of the Federal Credit Union Act (12 U.S.C. 1785(d))
is amended by adding at the end the following:
``(4) Exceptions.--
``(A) Certain older offenses.--
``(i) In general.--With respect to an
individual, paragraph (1) shall not apply to an
offense if--
``(I) it has been 7 years or more
since the offense occurred; or
``(II) the individual was
incarcerated with respect to the
offense and it has been 5 years or more
since the individual was released from
incarceration.
``(ii) Offenses committed by individuals 21
or younger.--For individuals who committed an
offense when they were 21 years of age or
younger, paragraph (1) shall not apply to the
offense if it has been more than 30 months
since the sentencing occurred.
``(iii) Limitation.--This subparagraph
shall not apply to an offense described under
paragraph (1)(B).
``(B) Expungement and sealing.--With respect to an
individual, paragraph (1) shall not apply to an offense
if--
``(i) there is an order of expungement,
sealing, or dismissal that has been issued in
regard to the conviction in connection with
such offense; and
``(ii) it is intended by the language in
the order itself, or in the legislative
provisions under which the order was issued,
that the conviction shall be destroyed or
sealed from the individual's State or Federal
record, even if exceptions allow the record to
be considered for certain character and fitness
evaluation purposes.
``(C) De minimis exemption.--
``(i) In general.--Paragraph (1) shall not
apply to such de minimis offenses as the Board
determines, by rule.
``(ii) Confinement criteria.--In issuing
rules under clause (i), the Board shall include
a requirement that the offense was punishable
by a term of three years or less confined in a
correctional facility, where such confinement--
``(I) is calculated based on the
time an individual spent incarcerated
as a punishment or a sanction, not as
pretrial detention; and
``(II) does not include probation
or parole where an individual was
restricted to a particular jurisdiction
or was required to report occasionally
to an individual or a specific
location.
``(iii) Bad check criteria.--In setting the
criteria for de minimis offenses under clause
(i), if the Board establishes criteria with
respect to insufficient funds checks, the Board
shall require that the aggregate total face
value of all insufficient funds checks across
all convictions or program entries related to
insufficient funds checks is $2,000 or less.
``(iv) Designated lesser offenses.--
Paragraph (1) shall not apply to certain lesser
offenses (including the use of a fake ID,
shoplifting, trespass, fare evasion, driving
with an expired license or tag, and such other
low-risk offenses as the Board may designate)
if 1 year or more has passed since the
applicable conviction or program entry.
``(5) Consent applications.--
``(A) In general.--The Board shall accept consent
applications from an individual and from an insured
credit union on behalf of an individual that are filed
separately or contemporaneously with a regional office
of the Board.
``(B) Sponsored applications filed with regional
offices.--Consent applications filed at a regional
office of the Board by an insured credit union on
behalf of an individual--
``(i) shall be reviewed by such office;
``(ii) may be approved or denied by such
office, if such authority has been delegated to
such office by the Board; and
``(iii) may only be denied by such office
if the general counsel of the Board (or a
designee) certifies that the denial is
consistent with this section.
``(C) Individual applications filed with regional
offices.--Consent applications filed at a regional
office by an individual--
``(i) shall be reviewed by such office; and
``(ii) may be approved or denied by such
office, if such authority has been delegated to
such office by the Board, except with respect
to--
``(I) cases involving an offense
described under paragraph (1)(B); and
``(II) such other high-level
security cases as may be designated by
the Board.
``(D) National office review.--The national office
of the Board shall--
``(i) review any consent application with
respect to which a regional office is not
authorized to approve or deny the application;
and
``(ii) review any consent application that
is denied by a regional office, if the
individual requests a review by the national
office.
``(E) Forms and instructions.--
``(i) Availability.--The Board shall make
all forms and instructions related to consent
applications available to the public, including
on the website of the Board.
``(ii) Contents.--The forms and
instructions described under clause (i) shall
provide a sample cover letter and a
comprehensive list of items that may accompany
the application, including clear guidance on
evidence that may support a finding of
rehabilitation.
``(F) Consideration of criminal history.--
``(i) Regional office consideration.--In
reviewing a consent application, a regional
office shall--
``(I) primarily rely on the
criminal history record of the Federal
Bureau of Investigation; and
``(II) provide such record to the
applicant to review for accuracy.
``(ii) Certified copies.--The Board may not
require an applicant to provide certified
copies of criminal history records unless the
Board determines that there is a clear and
compelling justification to require additional
information to verify the accuracy of the
criminal history record of the Federal Bureau
of Investigation.
``(G) Consideration of rehabilitation.--Consistent
with title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.), the Board shall--
``(i) conduct an individualized assessment
when evaluating consent applications that takes
into account evidence of rehabilitation, the
applicant's age at the time of the conviction
or program entry, the time that has elapsed
since conviction or program entry, and the
relationship of individual's offense to the
responsibilities of the applicable position;
``(ii) consider the individual's employment
history, letters of recommendation,
certificates documenting participation in
substance abuse programs, successful
participating in job preparation and
educational programs, and other relevant
mitigating evidence; and
``(iii) consider any additional information
the Board determines necessary for safety and
soundness.
``(H) Scope of employment.--With respect to an
approved consent application filed by an insured credit
union on behalf of an individual, if the Board
determines it appropriate, such approved consent
application shall allow the individual to work for the
same employer (without restrictions on the location)
and across positions, except that the prior consent of
the Board (which may require a new application) shall
be required for any proposed significant changes in the
individual's security-related duties or
responsibilities, such as promotion to an officer or
other positions that the employer determines will
require higher security screening credentials.
``(I) Coordination with fdic.--In carrying out this
subsection, the Board shall consult and coordinate with
the Federal Deposit Insurance Corporation as needed to
promote consistent implementation where appropriate.
``(6) Definitions.--In this subsection:
``(A) Consent application.--The term `consent
application' means an application filed with Board by
an individual (or by an insured credit union on behalf
of an individual) seeking the written consent of the
Board under paragraph (1)(A).
``(B) Criminal offense involving dishonesty.--The
term `criminal offense involving dishonesty'--
``(i) means an offense under which an
individual, directly or indirectly--
``(I) cheats or defrauds; or
``(II) wrongfully takes property
belonging to another in violation of a
criminal statute;
``(ii) includes an offense that Federal,
State, or local law defines as dishonest, or
for which dishonesty is an element of the
offense; and
``(iii) does not include--
``(I) a misdemeanor criminal
offense committed more than one year
before the date on which an individual
files a consent application, excluding
any period of incarceration; or
``(II) an offense involving the
possession of controlled substances.
``(C) Pretrial diversion or similar program.--The
term `pretrial diversion or similar program' means a
program characterized by a suspension or eventual
dismissal or reversal of charges or criminal
prosecution upon agreement by the accused to
restitution, drug or alcohol rehabilitation, anger
management, or community service.''.
SEC. 4. REVIEW AND REPORT TO CONGRESS.
Not later than the end of the 2-year period beginning on the date
of enactment of this Act, the Federal Deposit Insurance Corporation and
the National Credit Union Administration shall--
(1) review the rules issued to carry out this Act and the
amendments made by this Act on--
(A) the application of section 19 of the Federal
Deposit Insurance Act (12 U.S.C. 1829) and section
205(d) of the Federal Credit Union Act (12 U.S.C.
1785(d));
(B) the number of applications for consent
applications under such sections; and
(C) the rates of approval and denial for consent
applications under such sections;
(2) make the results of the review required under paragraph
(1) available to the public; and
(3) issue a report to Congress containing any legislative
or regulatory recommendations for expanding employment
opportunities for those with a previous minor criminal offense.
SEC. 5. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee,
provided that such statement has been submitted prior to the vote on
passage.
Passed the House of Representatives May 11, 2022.
Attest:
CHERYL L. JOHNSON,
Clerk.