text: SECTION. 1. SHORT TITLE; TABLE OF CONTENTS.
  
      (a) Short Title.--This Act may be cited as the ``Small Business 
  Assistance and Credit Crunch Relief Act of 1993''.
      (b) Table of Contents.--The following is a table of contents for 
  this Act:
  
  Sec. 1. Short title; table of contents.
  Sec. 2. Findings.
  Sec. 3. Definitions.
  Sec. 4. Capital requirement flexibility.
  Sec. 5. New Federal banking regulations subject to regulatory impact 
                              analysis.
  Sec. 6. Review of statutory and regulatory provisions affecting small 
                              banks.
  Sec. 7. Real estate appraisals.
  Sec. 8. Truth in Lending Act.
  Sec. 9. Community Reinvestment Act.
  Sec. 10. Paperwork reduction study.
  Sec. 11. Sunset provision.
  
  SEC. 2. FINDINGS.
  
      The Congress finds that--
              (1) credit availability is essential for small businesses 
          to expand, to purchase new equipment, and to hire new workers;
              (2) the Nation's small business sector is expected to 
          create 70 percent of the new jobs in the United States in 1993;
              (3) a severe credit crunch is denying small businesses the 
          capital necessary to hire new workers and to grow; and
              (4) the cumulative burden of unnecessary Federal banking 
          regulations has served as a disincentive for small community 
          banks to lend to small businesses.
  
  SEC. 3. DEFINITIONS.
  
      For the purposes of this Act, the following definitions shall 
  apply:
              (1) Incorporated definitions.--The terms ``appropriate 
          Federal banking agency'', ``bank'', ``insured depository 
          institution'', and ``savings association'' have the same 
          meanings as in section 3 of the Federal Deposit Insurance Act.
              (2) Regulatory impact analysis.--The term ``regulatory 
          impact analysis'' means a review of the potential costs and 
          benefits to society of a proposed regulation, and in 
          particular, the costs to small banks and their customers.
              (3) Small bank.--The term ``small bank'' means a bank or 
          savings association with total assets of less than 
          $400,000,000.
  
  SEC. 4. CAPITAL REQUIREMENT FLEXIBILITY.
  
      Section 38(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
  1831o(a)(2)) is amended to read as follows:
              ``(2) Prompt corrective action required; factors to 
          consider.--Each appropriate Federal banking agency and the 
          Corporation (acting in the Corporation's capacity as the 
          insurer of depository institutions under this Act) shall take 
          prompt corrective action to resolve the problems of an insured 
          depository institution after taking into consideration, in 
          addition to the other criteria described in this section--
                      ``(A) the management expertise of the directors, 
                  officers, and employees of the insured depository 
                  institution;
                      ``(B) any recent earnings history that suggests an 
                  improvement in the financial condition of the insured 
                  depository institution;
                      ``(C) the quality of the assets held by the insured 
                  depository institution; and
                      ``(D) the potential disruption to the local economy 
                  if the insured depository institution is closed or 
                  otherwise made subject to sanctions by Federal 
                  regulators.''.
  
  SEC. 5. NEW FEDERAL BANKING REGULATIONS SUBJECT TO REGULATORY IMPACT 
                ANALYSIS.
  
      (a) Regulatory Impact Analysis.--
              (1) In general.--Notwithstanding any other provision of 
          law, no new regulation shall be promulgated by an appropriate 
          Federal banking agency until such agency has conducted a 
          regulatory impact analysis and concluded that the benefits of 
          the proposed regulation outweigh the costs of implementing and 
          complying with the regulation, including the particular 
          benefits and costs of compliance with the proposed regulation 
          for small banks.
              (2) Definition.--For purposes of this subsection, a 
          regulation shall be considered to be ``new'' if it is 
          promulgated, modified, amended, or reissued on or after the 
          date of enactment of this Act.
      (b) Costs.--In reviewing the costs of implementing and complying 
  with a proposed regulation under subsection (a), the appropriate 
  Federal banking agency shall consider the impact of the proposed 
  regulation on--
              (1) the national economy (including the potential for job 
          creation);
              (2) consumers;
              (3) small businesses;
              (4) small banks (including administrative and personnel 
          costs);
              (5) other users of financial services; and
              (6) new paperwork and documentation requirements.
      (c) Benefits.--In reviewing the benefits of a proposed regulation 
  under subsection (a), the appropriate Federal banking agency shall 
  consider the benefits of the proposed regulation to--
              (1) the public;
              (2) taxpayers; and
              (3) the overall safety and soundness of the Nation's 
          banking system.
      (d) Easing Burden on Small Banks.--In conducting the regulatory 
  impact analysis under subsection (a), the appropriate Federal banking 
  agency shall consider including in the proposed regulation a provision 
  that eases the regulatory burden on small banks, including special 
  compliance provisions.
      (e) Estimate Required.--The regulatory impact analysis required by 
  subsection (a) shall include an estimate of the number of small banks 
  and small businesses that will be affected by the regulation.
  
  SEC. 6. REVIEW OF STATUTORY AND REGULATORY PROVISIONS AFFECTING SMALL 
                BANKS.
  
      (a) In General.--Each appropriate Federal banking agency shall 
  conduct a thorough review and evaluation of all--
              (1) statutory provisions affecting small banks; and
              (2) regulatory provisions affecting small banks that have 
          been promulgated by such appropriate Federal banking agency.
      (b) Review.--The review conducted pursuant to subsection (a) shall 
  include--
              (1) an analysis of the purposes of the provision;
              (2) the effectiveness of the provision in achieving such 
          purposes;
              (3) whether any other provision provides an alternative or 
          duplicative means of achieving those purposes;
              (4) the cost imposed by compliance with such provisions 
          upon insured depository institutions and consumers; and
              (5) the relationship between such provision, compliance 
          costs, and the availability of credit in the United States.
      (c) Suspension.--If an appropriate Federal banking agency makes a 
  determination described in subsection (d), the appropriate Federal 
  banking agency shall--
              (1) not later than 90 days after the date of enactment of 
          this Act, submit a written recommendation to the Congress to 
          suspend the applicability of any law that affects small banks 
          (or any portion thereof); and
              (2) not later than 30 days after the date of enactment of 
          this Act, suspend the applicability of any Federal regulation 
          or guideline promulgated by such appropriate Federal banking 
          agency that affects small banks (or any portion thereof).
      (d) Determination.--For the purpose of subsection (c), a 
  determination is described in this subsection if it is a determination 
  by an appropriate Federal banking agency that--
              (1) the law, regulation, or guideline has already 
          accomplished its goal and is therefore no longer necessary;
              (2) the law, regulation, or guideline is not as effective 
          in achieving its intended purpose as other available 
          alternatives that would impose lesser costs on small banks, 
          their customers, or the economy;
              (3) the cost of compliance with the law, regulation, or 
          guideline outweighs the potential benefits sought to be 
          accomplished by the law, regulation, or guideline; or
              (4) the law, regulation, or guideline has an adverse impact 
          on the availability of credit in the United States which 
          substantially outweighs the benefits sought to be accomplished 
          by the law, regulation, or guideline.
      (e) Publication and Effective Date.--Any suspension of the 
  applicability of any Federal regulation or guideline pursuant to 
  subsection (c)(2) shall be published in the Federal Register, and shall 
  become effective 30 days after the date of such publication, unless the 
  appropriate Federal banking agency, for good cause, determines that a 
  shorter period is necessary and in the public interest.
      (f) Consultation and Notification.--
              (1) Consultation.--In making a determination under 
          subsection (d), the appropriate Federal banking agency shall 
          consult with the Secretary of the Treasury, the Chairperson of 
          the Federal Deposit Insurance Corporation, the Chairman of the 
          Board of Governors of the Federal Reserve System, the 
          Comptroller of the Currency, and the Director of the Office of 
          Thrift Supervision.
              (2) Notification.--The appropriate Federal banking agency 
          shall notify the Committee on Banking, Housing, and Urban 
          Affairs of the Senate and the Committee on Banking, Finance and 
          Urban Affairs of the House of Representatives prior to 
          suspending the applicability of a regulation or guideline under 
          subsection (c)(2).
      (g) Restriction.--Nothing in this section authorizes an appropriate 
  Federal banking agency to recommend the suspension of any law, or to 
  suspend any regulation or guideline--
              (1) that is necessary for the safe and sound operation of 
          insured depository institutions; or
              (2) that--
                      (A) prohibits discrimination in the provision of 
                  financial services based on race, sex, national origin, 
                  marital status, or age;
                      (B) relates directly to the conduct of monetary 
                  policy; or
                      (C) pertains to an enforcement proceeding or 
                  supervisory action with respect to a particular 
                  institution or party.
  
  SEC. 7. REAL ESTATE APPRAISALS.
  
      Section 1112(b) of the Financial Institutions Reform, Recovery, and 
  Enforcement Act of 1989 (12 U.S.C. 3341(b)) is amended by inserting ``, 
  which shall be not less than $250,000,'' after ``establish a threshold 
  level''.
  
  SEC. 8. TRUTH IN LENDING ACT.
  
      Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended 
  by adding at the end the following new paragraph:
              ``(7) Credit transactions involving a bank or savings 
          association with total assets of less than $400,000,000, and a 
          consumer who had individual income of more than $200,000 in 
          each of the 2 most recent years, or who, at the time of the 
          transaction, has an individual net worth of more than 
          $1,000,000.''.
  
  SEC. 9. COMMUNITY REINVESTMENT ACT.
  
      (a) Paperwork Reduction.--Section 804(a) of the Community 
  Reinvestment Act of 1977 (12 U.S.C. 2903(a)) is amended--
              (1) in paragraph (1), by striking ``and'' at the end;
              (2) in paragraph (2), by striking the period at the end and 
          inserting ``; and''; and
              (3) by adding at the end the following new paragraph:
              ``(3) minimize the regulatory paperwork burden and costs to 
          small banks associated with compliance with this title.''.
      (b) Applications.--Section 804(a) of the Community Reinvestment Act 
  of 1977 (12 U.S.C. 2903(a)) is amended by adding at the end the 
  following: ``The appropriate Federal financial supervisory agency shall 
  not deny an application for a deposit facility by a regulated financial 
  institution having total assets of less than $400,000,000 on the basis 
  of such institution's compliance with this Act if the institution 
  received a rating on its last evaluation under this section of 
  `Outstanding' in its record of meeting community credit needs, as 
  provided in section 807(b).''.
      (c) Paperwork Reduction for Small Banks.--The Community 
  Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by adding 
  at the end the following new section:
  
  ``SEC. 809. SMALL BANKS.
  
      ``(a) `Outstanding' Rating.--
              ``(1) Paperwork reduction.--Except as provided in paragraph 
          (2), a regulated financial institution that--
                      ``(A) receives a rating under section 804 of 
                  `Outstanding record of meeting community credit needs', 
                  as provided in section 807(b); and
                      ``(B) has total assets of less than $400,000,000;
          shall be exempt from any documentation requirements of this 
          title.
              ``(2) New documentation regulations.--Not later than 30 
          days after the date of enactment of this section, the 
          appropriate Federal financial supervisory agency shall 
          promulgate documentation requirements for the regulated 
          financial institutions described in paragraph (1). Such 
          regulations shall substantially reduce or eliminate the 
          paperwork requirements imposed on such regulated financial 
          institutions.
              ``(3) Disclosure of evaluation criteria.--Not later than 30 
          days after the date of enactment of this section, the 
          appropriate Federal financial supervisory agency shall disclose 
          to each regulated financial institution, in detail, the 
          specific criteria an insured financial institution must satisfy 
          in order to secure a rating of `Outstanding' on an evaluation 
          under section 807(b).
      ``(b) `Substantial Noncompliance' Rating.--A regulated financial 
  institution that receives a rating under section 804 of `Substantial 
  noncompliance in meeting community credit needs', as provided in 
  section 807(b), for 2 or more consecutive years, and has total assets 
  of less than $400,000,000 shall be--
              ``(1) subject to a civil penalty assessed by the 
          appropriate Federal financial supervisory agency in an amount 
          not to exceed $20,000; and
              ``(2) required to enter into a written agreement with the 
          appropriate Federal financial supervisory agency to improve the 
          institution's ability to ascertain and to help meet the credit 
          needs of its local community.''.
  
  SEC. 10. PAPERWORK REDUCTION STUDY.
  
      Not later than 18 months after the date of enactment of this Act, 
  each appropriate Federal banking agency, in consultation with insured 
  depository institutions and other interested parties, shall--
              (1) review the extent to which this Act has--
                      (A) reduced unnecessary internal written policies; 
                  and
                      (B) eliminated such policies, where appropriate, 
                  while maintaining the applicable safety and soundness 
                  requirements; and
              (2) issue a recommendation as to whether the provisions of 
          this Act should be extended beyond the sunset date established 
          in section 11.
  
  SEC. 11. SUNSET PROVISION.
  
      The provisions of this Act and the amendments made by this Act 
  shall remain in effect for a period of 3 years beginning on the date of 
  enactment of this Act.
target: Small Business Assistance and Credit Crunch Relief Act of 1993 - Amends the Federal Deposit Insurance Act to require each appropriate Federal banking agency and the Federal Deposit Insurance Corporation (FDIC) to take into consideration, in resolving the problems of an insured depository institution, the potential disruption to the local economy if the institution is closed or otherwise subjected to sanctions by Federal regulators. 
  Prohibits such an agency from promulgating any new regulation until it has conducted a regulatory impact analysis and concluded that the regulation's benefits outweigh its costs, including the benefits and costs for small banks (those with total assets of less than $400 million). 
  Directs each agency to conduct a thorough review and evaluation of all:  (1) statutory provisions affecting small banks; and (2) regulatory provisions affecting such banks that have been promulgated by such agency. Provides for the suspension of regulations determined to be no longer necessary or ineffective and for the submission to the Congress of a recommendation to suspend the applicability of any Federal law that affects small banks. Requires publication of such suspensions in the Federal Register and appropriate consultation for such determinations. 
  Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to raise from $100,000 to $250,000 the threshold for licensed or certified real estate appraisals on small business loans. 
  Amends the Community Reinvestment Act of 1977 to require the minimization of regulatory paperwork burden and costs of compliance under such Act for small banks with the highest (outstanding) compliance rating as determined under such Act. Exempts small banks rated "outstanding" from any documentation requirements.  Outlines penalties and documentation requirements for small banks receiving a "substantial noncompliance" rating. 
  Requires each appropriate Federal banking agency to:  (1) review the extent to which this Act has reduced and eliminated unnecessary internal written policies; and (2) issue a recommendation as to whether this Act should be extended beyond the sunset date of three years after its enactment.
feat_title: Small Business Assistance and Credit Crunch Relief Act of 1993