Sec. 705. Fair hiring in banking
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/bill/117/s/4591/is/section-705A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 19 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829 ) is amended— by inserting after subsection
(b)the following: With respect to an individual, subsection
(a)shall not apply to an offense if— it has been 7 years or more since the offense occurred; or the individual was incarcerated with respect to the offense and it has been 5 years or more since the individual was released from incarceration. 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. This paragraph shall not apply to an offense described under subsection (a)(2). With respect to an individual, subsection
(a)shall not apply to an offense if— there is an order of expungement, sealing, or dismissal that has been issued in regard to the conviction in connection with such offense; and 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. Subsection
(a)shall not apply to such de minimis offenses as the Corporation determines, by rule. 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— is calculated based on the time an individual spent incarcerated as a punishment or a sanction, not as pretrial detention; and 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. 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. 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 by adding at the end the following: 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. 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— shall be reviewed by such office; may be approved or denied by such office, if such authority has been delegated to such office by the Corporation; and 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. Consent applications filed at a regional office by an individual— shall be reviewed by such office; and may be approved or denied by such office, if such authority has been delegated to such office by the Corporation, except with respect to— cases involving an offense described under subsection (a)(2); and such other high-level security cases as may be designated by the Corporation. The national office of the Corporation shall— review any consent application with respect to which a regional office is not authorized to approve or deny the application; and review any consent application that is denied by a regional office, if the individual requests a review by the national office. The Corporation shall make all forms and instructions related to consent applications available to the public, including on the website of the Corporation. 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. In reviewing a consent application, a regional office shall— primarily rely on the criminal history record of the Federal Bureau of Investigation; and provide such record to the applicant to review for accuracy. 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. Consistent with title VII of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e et seq. ), the Corporation shall— 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; 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 consider any additional information the Corporation determines necessary for safety and soundness. 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. 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. In this section: 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). The term criminal offense involving dishonesty — means an offense under which an individual, directly or indirectly— cheats or defrauds; or wrongfully takes property belonging to another in violation of a criminal statute; includes an offense that Federal, State, or local law defines as dishonest, or for which dishonesty is an element of the offense; and does not include— 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 an offense involving the possession of controlled substances. 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. . Section 205(d) of the Federal Credit Union Act ( 12 U.S.C. 1785(d) ) is amended by adding at the end the following: With respect to an individual, paragraph
(1)shall not apply to an offense if— it has been 7 years or more since the offense occurred; or the individual was incarcerated with respect to the offense and it has been 5 years or more since the individual was released from incarceration. 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. This subparagraph shall not apply to an offense described under paragraph (1)(B). With respect to an individual, paragraph
(1)shall not apply to an offense if— there is an order of expungement, sealing, or dismissal that has been issued in regard to the conviction in connection with such offense; and 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. Paragraph
(1)shall not apply to such de minimis offenses as the Board determines, by rule. 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— is calculated based on the time an individual spent incarcerated as a punishment or a sanction, not as pretrial detention; and 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. 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. 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. 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. Consent applications filed at a regional office of the Board by an insured credit union on behalf of an individual— shall be reviewed by such office; may be approved or denied by such office, if such authority has been delegated to such office by the Board; and 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. Consent applications filed at a regional office by an individual— shall be reviewed by such office; and may be approved or denied by such office, if such authority has been delegated to such office by the Board, except with respect to— cases involving an offense described under paragraph (1)(B); and such other high-level security cases as may be designated by the Board. The national office of the Board shall— review any consent application with respect to which a regional office is not authorized to approve or deny the application; and review any consent application that is denied by a regional office, if the individual requests a review by the national office. The Board shall make all forms and instructions related to consent applications available to the public, including on the website of the Board. 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. In reviewing a consent application, a regional office shall— primarily rely on the criminal history record of the Federal Bureau of Investigation; and provide such record to the applicant to review for accuracy. 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. Consistent with title VII of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e et seq. ), the Board shall— 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; 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 consider any additional information the Board determines necessary for safety and soundness. 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. 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. In this subsection: 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). The term criminal offense involving dishonesty — means an offense under which an individual, directly or indirectly— cheats or defrauds; or wrongfully takes property belonging to another in violation of a criminal statute; includes an offense that Federal, State, or local law defines as dishonest, or for which dishonesty is an element of the offense; and does not include— 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 an offense involving the possession of controlled substances. 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. . 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— review the rules issued to carry out this section and the amendments made by this section on— 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) ); the number of applications for consent applications under such sections; and the rates of approval and denial for consent applications under such sections; make the results of the review required under paragraph
(1)available to the public; and issue a report to Congress containing any legislative or regulatory recommendations for expanding employment opportunities for those with a previous minor criminal offense.
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