[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7121 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7121
To place post-employment restrictions on certain former employees of
insured depository institutions, insured credit unions, and certain
agencies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 29, 2024
Mr. Schiff (for himself and Mr. Frost) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To place post-employment restrictions on certain former employees of
insured depository institutions, insured credit unions, and certain
agencies, 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 ``Financial Regulators Revolving Door
Enforcement Act''.
SEC. 2. RESTRICTION ON EMPLOYMENT OF CERTAIN FORMER AGENCY EMPLOYEES
AND FORMER SENIOR EMPLOYEES OF INSURED DEPOSITORY
INSTITUTIONS AND CREDIT UNIONS.
(a) 2-Year Restriction on Agency Employment and Consulting.--
(1) In general.--An individual described in paragraph (2)
shall be ineligible for an appointment to a covered agency, and
no officer or employee of the Federal Government may procure
the services of such individual as a consultant for a covered
agency.
(2) Restriction criteria.--An individual described in this
paragraph is an individual who, during the 2-year period ending
on the date such individual accepts compensation as an
employee, officer, or consultant of a covered agency, was
employed as a financial executive officer by--
(A) an insured depository institution that was the
subject of an official action by such agency during the
20-year period ending on such date, including the award
of a Federal contract, an investigation, or the
imposition of a penalty; or
(B) an insured credit union that was the subject of
such an official action by such agency during the 20-
year period ending on such date.
(b) 2-Year Restriction on Private Employment.--An individual may
not, during the 2-year period after the termination date of the service
or employment of such individual as a senior agency employee at a
covered agency, knowingly accept compensation as an employee, officer,
director, or consultant from--
(1) an insured depository institution regulated by such
agency; or
(2) an insured credit union regulated by such agency.
SEC. 3. RESTRICTION ON CONTACT WITH COVERED AGENCY BY FORMER AGENCY
EMPLOYEES.
An individual may not, during the 2-year period after the
termination date of the service or employment of such individual as a
senior agency employee at a covered agency, contact such agency on
behalf of another individual or entity with respect to--
(1) a regulation, rule, or proposed rule of such agency;
(2) a policy of such agency;
(3) the examination activities of such agency;
(4) the distribution of Federal funds from such agency to
an insured depository institution or insured credit union,
including through contract; or
(5) the enforcement activities of such agency.
SEC. 4. REQUIRED DISCLOSURES FOR CERTAIN FORMER AGENCY EMPLOYEES AND
EXECUTIVES OF INSURED DEPOSITORY INSTITUTIONS AND INSURED
CREDIT UNIONS.
(a) Required Disclosure for Certain Former Agency Employees.--
(1) In general.--Not later than 1 year after the first time
an individual who had been a senior agency employee at a
covered agency knowingly accepts compensation as an employee,
officer, director, or consultant from an insured depository
institution or insured credit union regulated by such agency,
such individual shall submit to the head of such agency a
disclosure containing the following information:
(A) The title of each position held by such
individual at such insured depository institution or
insured credit union.
(B) The date on which such individual began working
as an employee, officer, director, or consultant at
such institution or credit union.
(2) Limitation.--Paragraph (1) shall not apply to an
individual on or after the date that is 5 years after the last
date on which such individual was a senior agency employee at a
covered agency.
(b) Required Employment Disclosure for Certain Executives.--
(1) In general.--Not later than 1 year after the earlier of
the first time an individual who was a financial executive
officer becomes a senior agency employee of a covered agency or
enters into a contract with the head of a covered agency to
provide services as a consultant after each period as a
financial executive officer, such individual shall submit to
such head of a covered agency a disclosure, including--
(A) the title of each position previously held by
such individual at an insured depository institution or
insured credit union regulated by such agency; and
(B) the first and late date on which such
individual held each position described in subparagraph
(A).
(2) Limitation.--Paragraph (1) shall not apply to an
individual who, during the 5-year period immediately proceeding
an appointment or the date of a contract described in such
paragraph, was not a financial executive officer.
SEC. 5. TRAINING REQUIREMENT FOR EMPLOYEES OF COVERED AGENCIES.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter, each covered agency
shall provide a training described in subsection (b) to each senior
agency employee.
(b) Training Requirements.--The training required under subsection
(a) shall include information regarding--
(1) avoiding conflicts of interest with respect to insured
depository institutions and insured credit unions;
(2) ethical standards required by the agency providing such
training;
(3) any obligations of senior agency employees under
section 2635.502 of title 5, Code of Federal Regulations (or
any successor regulations);
(4) any legal protections for a whistleblower who reports a
violation of the provisions of this Act, including--
(A) protections against retaliation; and
(B) any incentive available to a whistleblower for
reporting such violation; and
(5) such other matters, as determined by the head of the
agency providing such training.
SEC. 6. REVIEW OF INSURED DEPOSITORY INSTITUTION AND INSURED CREDIT
UNION COMPLIANCE AND POLICIES.
Not later than 1 year after the date of the enactment of this Act
and every 2 years thereafter, each head of a covered agency shall
conduct a review of each insured depository institution and insured
credit union to--
(1) determine if such institution or credit union is in
compliance with the requirements of this Act; and
(2) examine the policies of such institution and credit
union with respect to the requirements of this Act.
SEC. 7. PENALTIES.
(a) In General.--If the Attorney General determines that an
individual, insured depository institution, or insured credit union has
violated a provision of this Act, the Attorney General shall impose a
civil penalty in an amount determined by the Attorney General.
(b) Considerations.--In determining the amount of a penalty under
subsection (a), the Attorney General shall consider--
(1) the severity of such violation, as determined by the
Attorney General;
(2) the number of penalties previously imposed on such
individual, institution, or credit union under subsection (a);
and
(3) whether such individual, institution, or credit union
has been penalized for such violation under section 216 of
title 18, United States Code.
SEC. 8. DEFINITIONS.
In this Act:
(1) Covered agency.--The term ``covered agency'' means the
following:
(A) The Board of Governors of the Federal Reserve
System.
(B) The Bureau of Consumer Financial Protection.
(C) The Federal Deposit Insurance Corporation.
(D) The National Credit Union Administration.
(E) The Office of the Comptroller of the Currency.
(2) Financial executive officer.--The term ``financial
executive officer'' means, with respect to an insured
depository institution or insured credit union--
(A) the president of such institution or credit
union;
(B) a vice president of such institution or credit
union who is the head of a principal business unit,
division, or function (such as sales, administration,
or finance);
(C) an employee of such institution or credit union
who performs a policymaking function; or
(D) an officer of a subsidiary of such institution
or credit union who performs a policymaking function
for such institution or credit union.
(3) Insured credit union.--The term ``insured credit
union'' has the meaning given such term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
(4) Insured depository institution.-- The term ``insured
depository institution'' has the meaning given such term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(5) Senior agency employee.--The term ``senior agency
employee'' means a Federal employee who is--
(A) employed in a position in the executive branch
for which the rate of basic pay is--
(i) determined under subchapter II of
chapter 53 of title 5, United States Code; or
(ii) equal to or greater than 86.5 percent
of the rate of basic pay for level II of the
Executive Schedule, not including any
allowances, premium pay paid under the
provisions of law cited in section 5547(a) of
such title, or locality-based comparability
payments under section 5304 of such title 5, or
similar authority;
(B) appointed by the President to a position under
section 105(a)(2)(A) or 105(a)(2)(B) of title 3, United
States Code;
(C) appointed by the Vice President to a position
under section 106(a)(1)(A) or 106(a)(1)(B) of title 3,
United States Code; or
(D) an active duty commissioned officer of the
uniformed services serving in a position for which the
pay grade, as specified in section 201 of title 37,
United States Code, is pay grade O-7 or above.
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