Excerpts of the report follow (with changes to the law omitted, and available at https://www.congress.gov/congressional-report/117th-congress/house-report/65/1?s=2&r=16)
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Purpose and Summary
Background and Need for Legislation
/1 /Bostock v. Clayton Cty.,
While there is a lack specific data on LGBTQ+ owned businesses due in part to a lack of data collection requirements, recent research demonstrates that LGBTQ+ individuals in
An estimated 70 percent of LGBTQ individuals live in states that do not prohibit credit discrimination based on sexual orientation or gender identity. /9 / Under the current Federal statute, ECOA– which prohibits creditors from denying, discouraging, or applying inconsistent standards to, consumers seeking credit products or loans based on their sex–does not explicitly protect individuals against discrimination based on their sexual orientation or gender identity. However, plenty of legal precedent supports the argument that the prohibition of sex discrimination in ECOA and Regulation B includes protection on the bases of gender identity and sexual orientation. /10 / H.R. 5, the Equality Act, which passed in the
/10 /Letter from CFPB Director
/11 /H.R. 5, 117th Cong. (2021).
Recent research show that there are an estimated 1.4 million LGBT-owned businesses in the
Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) amended ECOA to require financial institutions to collect, maintain, and submit to the
/16 /Public Law 111-203, 124 Stat. 1376 (2010).
The intent of H.R. 1443 is to reaffirm that the term “sex”, as used within ECOA, includes an individual's sexual orientation and gender identity, and to clarify that the sex, sexual orientation, and gender identity of the principal owners of a business should be collected under section 704B of the Equal Credit Opportunity Act as three separate forms of information. Moreover, by creating a definition of LGBTQ-owned businesses in federal law, this, along with the bill's data collection requirements, should help promote investment and fair lending to LGBTQ-owned businesses.
Relatedly, another purpose of this legislation is to encourage the
This bill is supported by
Section 1. Short title
This section states that the title of the bill is the LGBTQ Business Equal Credit Enforcement and Investment Act.
Section 2. Small business loan data collection
This section would amend Section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c-2) to require financial institutions to collect loan applicant data from LGBTQ-owned businesses, and clarifies the self-identified sex, sexual orientation, and gender identity of the principal owners of a business should be collected as three separate forms of information. This section would also add a definition of an LGBTQ-owned business to the ECOA statute and include a Sense of
For the purposes of section 3(c)(6) of House Rule XIII, the following hearings considered issues that would be addressed by H.R. 1443:
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of the
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) of rule X of the Rules of the
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee adopts as its own the estimate of federal mandates regarding H.R. 1443, as amended, prepared by the Director of the
No advisory committees within the meaning of section 5(b) of the Federal Advisory Committee Act were created by this legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional Accountability Act, Pub. L. No. 104-1, H.R. 1443, as amended, does not apply to terms and conditions of employment or to access to public services or accommodations within the legislative branch.
In accordance with clause 9 of rule XXI of the Rules of the
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
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View the full report at https://www.congress.gov/congressional-report/117th-congress/house-report/65/1?s=2&r=16
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