Sec. 11. Establishment of Financial Agent Partnership Program
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Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note) is amended by adding at the end the following: In this subsection: The term financial agent means any national banking association designated by the Secretary to be employed as a financial agent of the Government. The term large financial institution means any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets of not less than $50,000,000,000.
The term small community financial institution means any financial institution that— has total consolidated assets of less than $3,000,000,000; is an entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration; and is— a community development financial institution, as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ); or a minority depository institution, as defined in subsection (b).
The term Program means the Financial Agent Partnership Program established under paragraph (2). The term Secretary means the Secretary of the Treasury. The Secretary shall establish a program to be known as the Financial Agent Partnership Program under which a financial agent designated by the Secretary or a large financial institution may serve as a partner, under guidance or regulations prescribed by the Secretary, and at the request of a small community financial institution, to allow the small community financial institution— to be prepared to perform as a financial agent; to improve capacity to provide services to the customers of the institution; and to participate in contracts awarded by the Secretary under the National Bank Acts of 1863 and 1864.
Any large financial institution participating in a program with the Treasury, if not already required to include a small community financial institution, shall offer not more than 5 percent of every contract under that program to a small community financial institution. As a requirement of participation in any financial arrangement under the Program, a small community financial institution shall accept the risk of the transaction equivalent to the percentage of any fee the institution receives under the Program.
A large financial institution partner may work with small community financial institutions, if necessary, to train professionals to understand any risks involved in a contract under the Program. The Secretary shall— issue guidance or regulations to establish a process under which a financial agent, large financial institution, or small community financial institution may participate in the Program; and not less frequently than once per year, hold outreach events to promote the participation of financial agents, large financial institutions, and small community financial institutions in the Program.
The Office of Minority and Women Inclusion of the Department of the Treasury shall include in the report submitted to Congress under section 342(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5452(e) ) information pertaining to the Program, including— the number of financial agents, large financial institutions, and small community financial institutions participating in the Program; and the number of contracts awarded by the Secretary where a small community financial institution participated in a financial agent agreement awarded to a large financial institution; and the number of outreach events described in paragraph
(4)held during the year covered by such report. . This section and the amendments made by this section shall take effect 90 days after the date of the enactment of this Act.
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