H.R. 1697: Communities First Act

112th Congress · introduced 2011-05-03 · Finance and Financial Sector · Latest: Subcommittee Hearings Held.

federal

Follow this bill, step by step

Where it came from: introduced 2011-05-03 · official record
Who proposed it: Rep. Luetkemeyer, Blaine [R-MO-9] · what a sponsor is
What happened next: no floor votes in our records yet. Why?
Where it stands now: Subcommittee Hearings Held. Not final yet: this can still change. We check for updates every day.
If it becomes law and spends money: follow the money to money laws, then agencies and contracts and grants.

What does this mean?

Official title

Communities First Act

Plain summary

Community Banks Serving Their Communities First Act or Communities First Act - Revises regulatory requirements for community banks, including through amendments to: (1) the Federal Deposit Insurance Act to permit certain insured depository institutions to submit a short form report of condition, and (2) the Sarbanes-Oxley Act of 2002 to exempt certain small-sized depository institutions from the annual management assessment of internal controls requirements. Directs the Board of Governors of the Federal Reserve System (Federal Reserve Board) to publish in the Federal Register certain proposed revisions to the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors relating to: (1) certain bank holding companies with pro forma consolidated assets of less than $1 billion, and (2) an increased debt-to-equity ratio allowable for a small bank holding company. Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC) to: (1) ensure that information, documents, and reports accurately and appropriately reflect the business model of a registered security issuer; (2) approve any new or amended generally accepted accounting principle only if it would have no negative economic impact on certain small-sized insured depository institutions; (3) increase the shareholder registration threshold for certain banks and bank holding companies; and (4) terminate the registration of any class of security, in the case of a bank or bank holding company, whose holders of record are reduced to less than 1700 persons. Amends the Consumer Financial Protection Act of 2010 to: (1) authorize the Financial Stability Oversight Council to set aside a final regulation prescribed by the Consumer Financial Protection Bureau (CFPB) if the Council decides that it would be inconsistent with the safe and sound operation of U.S. financial institutions, or could adversely impact disproportionately a subset of the banking industry; and (2) repeal the authority of the Federal Reserve Board to delegate to the CFPB its authority to examine persons for compliance with federal consumer financial laws. Amends the Truth in Lending Act (TILA) to instruct the Federal Reserve Board to exempt from escrow or impound account requirements any loan secured by a first lien on a consumer's principal dwelling, if the loan is held by a creditor with assets of $10 billion or less. Amends the Gramm-Leach-Bliley Act to exempt certain financial institutions from furnishing a mandatory annual privacy notice. Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to: (1) assess, for certain guaranteed business and industry loans for rural communities under $5 million, a one-time fee of 1% or less of the loan's guaranteed principal; and (2) establish a preferred certified lender's program for specified lenders. Amends the Right to Financial Privacy Act of 1978 to require a government authority to reimburse fees incurred by certain small-sized financial institutions with assets of $10 billion or less for all records required to be furnished for federal law enforcement or investigative purposes. Authorizes specified institutions to amortize losses or write-downs on a quarterly straight-line basis over a 10-year period for purposes of capital calculation under the Financial Institutions Examination Council's Consolidated Reports of Condition. Authorizes an insured depository institution, for purposes of determining statutory capital requirements or measuring capital, to average, over a five-year period, the appraised value of any real estate securing a loan held by the institution. Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding review of reliance on credit ratings to direct federal regulatory agencies to require, in specified circumstances, that ratings-based determinations be confirmed by an analysis of the probability of a loss from holding an asset. Amends the Equal Credit Opportunity Act with respect to requirements with which a financial institution must comply in collecting data for evaluation of a credit application by a women-owned, minority-owned, or small business. Applies such requirements only to financial institutions having over $1 billion in assets (thus exempting smaller financial institutions). Amends the Internal Revenue Code to: (1) defer income recognition on long-term certificates of deposit held by cash basis individuals, (2) exclude from gross income any interest on loans secured by agricultural real property, (3) increase the cap on qualified small issue bonds, (4) allow certain FDIC-insured financial institutions with $10 billion or less in gross assets to elect partnership (limited liability company) tax treatment, and (5) set forth special rules for Roth IRAs for individuals under age 26 (young savers' accounts). Reduces by 20% (up to $250,000) the aggregate tax for a community bank, and by 50% (up to $500,000) for community banks operating in specified distressed areas. Allows similar aggregate tax reductions for small-sized community banks that are subchapter S corporations. Subjects to certain IRS principles a qualifying investment in specified small bank issuers in the same manner as if such investment had been made by the Department of the Treasury. Prescribes requirements for a five-year net operating loss carryback for 2010 and 2011 for certain community banks. Increases to 200 the shareholder limit for small business subchapter S corporations. Permits the issuance of preferred stock for subchapter S corporations.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

What a vote does

A “Yea” vote

If it passes both chambers and is signed, it becomes law.

A “Nay” vote

If it is not passed, current law stays as it is.

PSI Sci description of the legislative step (not an opinion).

What does this mean? (plain words)

Official text

Communities First Act

Source: Congressional Research Service summary (Introduced in House)

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How did my representative vote? · This bill's floor votes

Officials and money

Sponsor: Rep. Luetkemeyer, Blaine [R-MO-9] · 91 cosponsors

Cost estimate: No cost estimate published yet.

Cosponsors on this site

Tim Walberg (R-MI), Emanuel Cleaver (D-MO), Robert J. Wittman (R-VA), Mike Quigley (D-IL), Bill Cassidy (R-LA), Jim Costa (D-CA), Scott DesJarlais (R-TN), Sam Graves (R-MO), Marlin A. Stutzman (R-IN), Marsha Blackburn (R-TN), Martin Heinrich (D-NM), Pete Sessions (R-TX), Judy Chu (D-CA) and 31 more.

No linked floor roll calls in our collected records yet. This does not mean the bill has never had a vote. Check the official bill history.

Words on this page, explained (8)

Appraisal: An estimate of what property is worth. In Texas, county appraisal districts set the value that property taxes are based on.
Authorization: A law that creates or continues a government program and says what it may do, often with a suggested spending ceiling. An authorization alone does not provide money; a separate appropriation does.
Bond: A way to borrow money. A government sells bonds to raise money now and promises to pay it back with interest over time. Bonds repaid from taxes often need voter approval.
Exemption: A rule that removes certain people, property or activities from a tax or requirement.
Federal Register: The official daily publication of the U.S. government for agency rules, proposed rules, public notices and presidential documents.
Rulemaking: The process agencies use to write regulations that carry out laws passed by Congress or a legislature. Usually an agency publishes a proposed rule, takes public comments, then publishes a final rule.
Securities: Financial investments that can be bought and sold, such as stocks and bonds.
Statute: A written law passed by a legislature. A statute can be changed by a later law; changing a constitution needs an amendment.

Plain meanings written from linked sources. All words.

Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-112hr1697.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/112/hr>

Record fed-us-cong112-hr1697 · catalog fed-us-congress-bills-cong112 · updated 2026-11-15 by psicol fed-bills-cong112