H.R. 5911 would amend statutory prohibitions and limitations that restrict the hiring of certain individuals convicted of criminal offenses by insured depository institutions and insured credit unions. Under current law, some convictions prohibit a person from being employed by such institutions without prior consent of the National Credit Union Administration (NCUA) or the Federal Deposit Insurance Corporation (FDIC). Under H.R. 5911, both agencies would be required to issue a rule to provide additional exemptions from consent requirements. The bill also would direct the FDIC and NCUA to establish new procedures governing the review of consent applications and further define what offenses require agency consent. Lastly, each agency would be required to report to the Congress on the outcomes of those changes.
The operating costs for the FDIC and NCUA are classified as direct spending. Using information from both of those agencies, CBO estimates that each agency would require about two employees to complete the bill’s requirements over a three-year period, increasing gross direct spending by about $2 million over the 2022-2031 period. However, the NCUA collects fees from credit unions to offset its operating costs; those fees are treated as reductions in direct spending. Thus, on net, CBO estimates that enacting the bill would increase direct spending by $1 million over the same period.