H.R.1063 - Farm Credit Administration Independent Authority Act (119th Congress)
Summary
H.R.1063, the Farm Credit Administration Independent Authority Act, aims to affirm the Farm Credit Administration (FCA) as the sole and independent regulator of the Farm Credit System (FCS). The bill mandates the collection of demographic data (race, sex, ethnicity) from small farmer loan applicants and borrowers by FCS lenders, to be reported annually to the FCA. This data will be made publicly available, excluding personally identifiable information. A conforming amendment is made to the Equal Credit Opportunity Act, and a cessation clause is included, linking compliance to similar regulations.
Expected Effects
The bill will likely increase the amount of data collected on small farmers and their access to credit within the FCS. This could lead to better understanding of lending patterns and potential disparities. The bill also reinforces the FCA's regulatory authority over the FCS.
Potential Benefits
- Improved Data Collection: Enhanced data on small farmer demographics can help identify underserved groups.
- Transparency: Public availability of aggregated data promotes accountability.
- Reinforced FCA Authority: Clarifies the FCA's role as the primary regulator.
- Targeted Support: Data can inform policies aimed at supporting small farmers.
- Flexibility: The bill respects borrowers' privacy by allowing them to decline to report demographic data.
Potential Disadvantages
- Increased Administrative Burden: FCS lenders face additional data collection and reporting requirements.
- Privacy Concerns: Despite protections, some borrowers may be hesitant to share personal information.
- Potential for Misinterpretation: Public data could be misinterpreted or misused.
- Compliance Costs: Implementing the new regulations may incur costs for FCS institutions.
- Limited Scope: The bill focuses solely on the FCS, potentially overlooking broader agricultural lending disparities.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8) by regulating financial institutions involved in agricultural lending, which affects interstate commerce. The data collection provisions could raise privacy concerns, but the bill includes safeguards to protect personally identifiable information, potentially mitigating conflicts with the Fourth Amendment. The bill does not appear to infringe upon any other constitutional rights or provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).