[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3611 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3611

To increase the number of interaccount transfers which may be made from 
 business accounts at depository institutions, to require the Board of 
  Governors of the Federal Reserve System to pay interest on certain 
                   reserves, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2000

  Mrs. Kelly introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To increase the number of interaccount transfers which may be made from 
 business accounts at depository institutions, to require the Board of 
  Governors of the Federal Reserve System to pay interest on certain 
                   reserves, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Interest Checking Act 
of 2000''.

SEC. 2. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL 
              BUSINESSES.

    Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(b) Notwithstanding any other provision of law, any depository 
institution may permit the owner of any deposit or account which is a 
deposit or account on which interest or dividends are paid and is not a 
deposit or account described in subsection (a)(2) to make up to 24 
transfers per month, for any purpose, to another account of the owner 
in the same institution. Nothing in this subsection shall be construed 
to prevent an account offered pursuant to this subsection from being 
considered a transaction account (as defined in section 19(b) of the 
Federal Reserve Act for purposes of such Act.''.

SEC. 3. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS.

    (a) In General.--Section 19(b) of the Federal Reserve Act (12 
U.S.C. 461(b)) is amended by adding at the end the following new 
paragraph:
            ``(12) Earnings on reserves.--
                    ``(A) In general.--Balances maintained at a Federal 
                reserve bank by or on behalf of a depository 
                institution to meet the reserve requirements of this 
                subsection applicable with respect to such depository 
                institution shall receive earnings to be paid by the 
                Federal reserve bank at least once each calendar 
                quarter at a rate or rates not to exceed the general 
                level of short term interest rates.
                    ``(B) Regulations relating to payments and 
                distribution.--The Board may prescribe regulations 
                concerning--
                            ``(i) the payment of earnings in accordance 
                        with this paragraph;
                            ``(ii) the distribution of such earnings to 
                        the depository institutions which maintain 
                        balances at such banks or on whose behalf such 
                        balances are maintained; and
                            ``(iii) the responsibilities of depository 
                        institutions, Federal home loan banks, and the 
                        National Credit Union Administration Central 
                        Liquidity Facility with respect to the 
                        crediting and distribution of earnings 
                        attributable to balances maintained, in 
                        accordance with subsection (c)(1)(B), in a 
                        Federal reserve bank by any such entity on 
                        behalf of depository institutions which are not 
                        member banks.''.
    (b) Technical and Conforming Amendment.--
            (1) Section 19(b) of federal reserve act.--Section 19(b)(4) 
        of the Federal Reserve Act (12 U.S.C. 461(b)(4)) is amended by 
        striking subparagraph (C).
            (2) Section 19(c) of federal reserve act.--Section 
        19(c)(1)(A) of the Federal Reserve Act (12 U.S.C. 461(c)(1)(A)) 
        is amended by striking ``subsection (b)(4)(C)'' and inserting 
        ``subsection (b)''.

SEC. 4. INCREASED FEDERAL RESERVE BOARD FLEXIBILITY IN SETTING RESERVE 
              REQUIREMENTS.

    Section 19(b)(2) of the Federal Reserve Act (12 U.S.C. 461(b)(2)) 
is amended--
            (1) in clause (i), by striking ``the ratio of 3 per 
        centum'' and inserting ``a ratio not greater than 3 percent 
        (and which may be zero)''; and
            (2) in clause (ii), by striking ``and not less than 8 per 
        centum,'' and inserting ``(and which may be zero),''.
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