[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5841 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5841

   To provide regulatory relief and improve productivity for insured 
            depository institutions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 17, 2008

    Mr. Moore of Kansas (for himself and Mr. Roskam) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
   To provide regulatory relief and improve productivity for insured 
            depository institutions, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bank and Thrift 
Regulatory Relief Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--NATIONAL BANK PROVISIONS

Sec. 101. National bank directors.
Sec. 102. Business organization flexibility for national banks.
                TITLE II--SAVINGS ASSOCIATION PROVISIONS

Sec. 201. Restatement of authority for Federal savings associations to 
                            invest in small business investment 
                            companies.
Sec. 202. Removal of limitation on investments in auto loans.
Sec. 203. Repeal of qualified thrift lender requirement with respect to 
                            out-of-state branches.
Sec. 204. Small business and other commercial loans.
Sec. 205. Increase in limits on commercial real estate loans.
Sec. 206. Business organization flexibility for Federal savings 
                            associations.
Sec. 207. Savings association credit card banks.
                      TITLE III--NOTICE PROVISIONS

Sec. 301. Exception to annual privacy notice requirement under the 
                            Gramm-Leach-Bliley Act.
                      TITLE IV--BUSINESS CHECKING

Sec. 401. Short title.
Sec. 402. Interest-bearing transaction accounts authorized for all 
                            businesses.
Sec. 403. Interest-bearing transaction accounts authorized.
Sec. 404. Rules of construction.
Sec. 405. Consumer banking costs assessment.

                   TITLE I--NATIONAL BANK PROVISIONS

SEC. 101. NATIONAL BANK DIRECTORS.

    (a) In General.--Section 5146 of the Revised Statutes of the United 
States (12 U.S.C. 72) is amended--
            (1) by striking ``Sec. 5146. Every director must during'' 
        and inserting the following:

``SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS.

    ``(a) Residency Requirements.--Every director of a national bank 
shall, during'';
            (2) by striking ``total number of directors. Every director 
        must own in his or her own right'' and inserting ``total number 
        of directors.
    ``(b) Investment Requirement.--
            ``(1) In general.--Every director of a national bank shall 
        own, in his or her own right,''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Exception for subordinated debt in certain cases.--In 
        lieu of the requirements of paragraph (1) relating to the 
        ownership of capital stock in the national bank, the 
        Comptroller of the Currency may, by regulation or order, permit 
        an individual to serve as a director of a national bank that 
        has elected, or notifies the Comptroller of the bank's 
        intention to elect, to operate as a S corporation pursuant to 
        section 1362(a) of the Internal Revenue Code of 1986, if that 
        individual holds debt of at least $1,000 issued by the national 
        bank that is subordinated to the interests of depositors and 
        other general creditors of the national bank.''.
    (b) Clerical Amendment.--The table of sections for chapter one of 
title LXII of the Revised Statutes of the United States (12 U.S.C. 21 
et seq.) is amended by striking the item relating to section 5146 and 
inserting the following new item:

``5146. Requirements for bank directors''.

SEC. 102. BUSINESS ORGANIZATION FLEXIBILITY FOR NATIONAL BANKS.

    (a) In General.--Chapter one of title LXII of the Revised Statutes 
of the United States (12 U.S.C. 21 et seq.) is amended by inserting 
after section 5136B the following new section:

``SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZATION.

    ``(a) In General.--The Comptroller of the Currency may prescribe 
regulations--
            ``(1) to permit a national bank to be organized other than 
        as a body corporate; and
            ``(2) to provide requirements for the organizational 
        characteristics of a national bank organized and operating 
        other than as a body corporate, consistent with the safety and 
        soundness of the national bank.
    ``(b) Equal Treatment.--Except as provided in regulations 
prescribed under subsection (a), a national bank that is operating 
other than as a body corporate shall have the same rights and 
privileges and shall be subject to the same duties, restrictions, 
penalties, liabilities, conditions, and limitations as a national bank 
that is organized as a body corporate.''.
    (b) Technical and Conforming Amendment.--Section 5136 of the 
Revised Statutes of the United States (12 U.S.C. 24) is amended, in the 
matter preceding the paragraph designated as the ``First'', by 
inserting ``or other form of business organization provided under 
regulations prescribed by the Comptroller of the Currency under section 
5136C'' after ``a body corporate''.
    (c) Clerical Amendment.--The table of sections for chapter one of 
title LXII of the Revised Statutes of the United States (12 U.S.C. 21 
et seq.) is amended by inserting after the item relating to section 
5136B the following new item:

``5136C. Alternative business organization.''.

                TITLE II--SAVINGS ASSOCIATION PROVISIONS

SEC. 201. RESTATEMENT OF AUTHORITY FOR FEDERAL SAVINGS ASSOCIATIONS TO 
              INVEST IN SMALL BUSINESS INVESTMENT COMPANIES.

    Subparagraph (D) of section 5(c)(4) of the Home Owners' Loan Act 
(12 U.S.C. 1464(c)(4)) is amended to read as follows:
                    ``(D) Small business investment companies.--Any 
                Federal savings association may invest in 1 or more 
                small business investment companies, or in any entity 
                established to invest solely in small business 
                investment companies formed under the Small Business 
                Investment Act of 1958, except that the total amount of 
                investments under this subparagraph may not at any time 
                exceed the amount equal to 5 percent of capital and 
                surplus of the savings association.''.

SEC. 202. REMOVAL OF LIMITATION ON INVESTMENTS IN AUTO LOANS.

    (a) In General.--Section 5(c)(1) of the Home Owners' Loan Act (12 
U.S.C. 1464(c)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(V) Auto loans.--Loans and leases for motor 
                vehicles acquired for personal, family, or household 
                purposes.''.
    (b) Technical and Conforming Amendment Relating to Qualified Thrift 
Investments.--Section 10(m)(4)(C)(ii) of the Home Owners' Loan Act (12 
U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the end the 
following new subclause:
                                    ``(VIII) Loans and leases for motor 
                                vehicles acquired for personal, family, 
                                or household purposes.''.

SEC. 203. REPEAL OF QUALIFIED THRIFT LENDER REQUIREMENT WITH RESPECT TO 
              OUT-OF-STATE BRANCHES.

    Section 5(r)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(r)(1)) 
is amended by striking the last sentence.

SEC. 204. SMALL BUSINESS AND OTHER COMMERCIAL LOANS.

    (a) Elimination of Lending Limit on Small Business Loans.--Section 
5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended 
by inserting after subparagraph (V) (as added by section 202(a) of this 
title) the following new subparagraph:
                    ``(W) Small business loans.--Small business loans, 
                as defined in regulations which the Director shall 
                prescribe.''.
    (b) Increase in Lending Limit on Other Business Loans.--Section 
5(c)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is 
amended by striking ``, and amounts in excess of 10 percent'' and all 
that follows through ``by the Director''.

SEC. 205. INCREASE IN LIMITS ON COMMERCIAL REAL ESTATE LOANS.

    Section 5(c)(2)(B)(i) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(2)(B)(i)) is amended by striking ``400 percent'' and inserting 
``500 percent''.

SEC. 206. BUSINESS ORGANIZATION FLEXIBILITY FOR FEDERAL SAVINGS 
              ASSOCIATIONS.

    (a) In General.--Section 5 of the Home Owners' Loan Act (12 U.S.C. 
1464) is amended by adding at the end the following new subsection:
    ``(y) Alternative Business Organization.--
            ``(1) In general.--The Director may prescribe regulations 
        that--
                    ``(A) permit a Federal savings association to be 
                organized other than as a corporation; and
                    ``(B) provide requirements for the organizational 
                characteristics of a Federal savings association 
                organized and operating other than as a corporation, 
                consistent with the safety and soundness of the Federal 
                savings association.
            ``(2) Equal treatment.--Except as otherwise provided in 
        regulations prescribed under subsection (1), a Federal savings 
        association that is operating other than as a corporation shall 
        have the same rights and privileges and shall be subject to the 
        same duties, restrictions, penalties, liabilities, conditions, 
        and limitations as a Federal savings association that is 
        organized as a corporation.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 5(a)(1) of the Home Owners' Loan Act (12 U.S.C. 
        1464(a)(1)) is amended by striking ``organization, 
        incorporation,'' and inserting ``organization (as a corporation 
        or other form of business organization provided under 
        regulations prescribed by the Director under subsection 
        (x)),''.
            (2) The last sentence of section 5(i)(1) of the Home 
        Owners' Loan Act (12 U.S.C. 1464(i)(1)) is amended by striking 
        ``incorporated'' and inserting ``organized''.
            (3) Section 5(o)(1) of the Home Owners' Loan Act (12 U.S.C. 
        1464(a)(1)) is amended by striking ``organization, 
        incorporation,'' and inserting ``organization (as a corporation 
        or other form of business organization provided under 
        regulations prescribed by the Director under subsection 
        (x)),''.

SEC. 207. SAVINGS ASSOCIATION CREDIT CARD BANKS.

    Section 10(a)(1)(A) of the Home Owners' Loan Act (12 U.S.C. 
1467a(a)(1)(A)) is amended by inserting ``and such term does not 
include an institution described in section 2(c)(2)(F) of the Bank 
Holding Company Act of 1956 for purposes of subsections (a)(1)(E), 
(c)(3)(B)(i), (c)(9)(C)(i), and (e)(3)'' before the period at the end.

                      TITLE III--NOTICE PROVISIONS

SEC. 301. EXCEPTION TO ANNUAL PRIVACY NOTICE REQUIREMENT UNDER THE 
              GRAMM-LEACH-BLILEY ACT.

    Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) is 
amended by adding the following new subsections:
    ``(c) Exception to Annual Notice Requirement.--A financial 
institution that--
            ``(1) provides nonpublic personal information only in 
        accordance with the provisions of subsection (b)(2) or (e) of 
        section 502 or regulations prescribed under section 504(b);
            ``(2) does not share information with affiliates under 
        section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act; and
            ``(3) has not changed its policies and practices with 
        regard to disclosing nonpublic personal information from the 
        policies and practices that were disclosed in the most recent 
        disclosure sent to consumers in accordance with this 
        subsection,
shall not be required to provide an annual disclosure under this 
subsection until such time as the financial institution fails to comply 
with any criteria described in paragraph (1), (2), or (3).
    ``(d) Exception to Notice Requirement.--A financial institution 
shall not be required to provide any disclosure under this section if--
            ``(1) the financial institution is licensed by a State and 
        is subject to existing regulation of consumer confidentiality 
        that prohibits disclosure of nonpublic personal information 
        without knowing and expressed consent of the consumer in the 
        form of laws, rules, or regulation of professional conduct or 
        ethics promulgated either by the court of highest appellate 
        authority or by the principal legislative body or regulatory 
        agency or body of any State of the United States, the District 
        of Columbia, any territory of the United States, Puerto Rico, 
        Guam, American Samoa, the Trust Territory of the Pacific 
        Islands, the Virgin Islands, or the Northern Mariana Islands; 
        or
            ``(2) the financial institution is licensed by a State and 
        becomes subject to future regulation of consumer 
        confidentiality that prohibits disclosure of nonpublic personal 
        information without knowing and expressed consent of the 
        consumer in the form of laws, rules, or regulation of 
        professional conduct or ethics promulgated either by the court 
        of highest appellate authority or by the principal legislative 
        body or regulatory agency or body of any State of the United 
        States, the District of Columbia, any territory of the United 
        States, Puerto Rico, Guam, American Samoa, the Trust Territory 
        of the Pacific Islands, the Virgin Islands, or the Northern 
        Mariana Islands.''.

                      TITLE IV--BUSINESS CHECKING

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Business Checking Fairness Act of 
2008''.

SEC. 402. 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 (or such greater number as the Board of Governors 
of the Federal Reserve System may determine by rule or order), for any 
purpose, to another account of the owner in the same institution. An 
account offered pursuant to this subsection shall be considered a 
transaction account for purposes of section 19 of the Federal Reserve 
Act unless the Board of Governors of the Federal Reserve System 
determines otherwise.''.

SEC. 403. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.

    (a) Repeal of Prohibition on Payment of Interest on Demand 
Deposits.--
            (1) Federal reserve act.--Section 19(i) of the Federal 
        Reserve Act (12 U.S.C. 371a) is amended to read as follows:
    ``(i) [Repealed]''.
            (2) Home owners' loan act.--The first sentence of section 
        5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C. 
        1464(b)(1)(B)) is amended by striking ``savings association may 
        not--'' and all that follows through ``(ii) permit any'' and 
        inserting ``savings association may not permit any''.
            (3) Federal deposit insurance act.--Section 18(g) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to 
        read as follows:
    ``(g) [Repealed]''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect at the end of the 2-year period beginning on the date of 
the enactment of this Act.

SEC. 404. RULES OF CONSTRUCTION.

    In the case of an escrow account maintained at a depository 
institution for the purpose of completing the settlement of a real 
estate transaction--
            (1) the absorption, by the depository institution, of 
        expenses incidental to providing a normal banking service with 
        respect to such escrow account;
            (2) the forbearance, by the depository institution, from 
        charging a fee for providing any such banking function; and
            (3) any benefit which may accrue to the holder or the 
        beneficiary of such escrow account as a result of an action of 
        the depository institution described in subparagraph (1) or (2) 
        or similar in nature to such action, including any benefits 
        which have been so determined by the appropriate Federal 
        regulator,
shall not be treated as the payment or receipt of interest for purposes 
of this title and any provision of Public Law 93-100, the Federal 
Reserve Act, the Home Owners' Loan Act, or the Federal Deposit 
Insurance Act relating to the payment of interest on accounts or 
deposits at depository institutions. No provision of this title shall 
be construed so as to require a depository institution that maintains 
an escrow account in connection with a real estate transaction to pay 
interest on such escrow account or to prohibit such institution from 
paying interest on such escrow account. No provision of this title 
shall be construed as preempting the provisions of law of any State 
dealing with the payment of interest on escrow accounts maintained in 
connection with real estate transactions.

SEC. 405. CONSUMER BANKING COSTS ASSESSMENT.

    (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
amended--
            (1) by redesignating sections 30 and 31 as sections 31 and 
        32, respectively; and
            (2) by inserting after section 29 the following new 
        section:

``SEC. 30. SURVEY OF BANK FEES AND SERVICES.

    ``(a) Biennial Survey Required.--The Board of Governors of the 
Federal Reserve System shall obtain biennially a sample, which is 
representative by type and size of the institution (including small 
institutions) and geographic location, of the following retail banking 
services and products provided by insured depository institutions and 
insured credit unions (along with related fees and minimum balances):
            ``(1) Checking and other transaction accounts.
            ``(2) Negotiable order of withdrawal and savings accounts.
            ``(3) Automated teller machine transactions.
            ``(4) Other electronic transactions.
    ``(b) Minimum Survey Requirement.--The biennial survey described in 
subsection (a) shall meet the following minimum requirements:
            ``(1) Checking and other transaction accounts.--Data on 
        checking and transaction accounts shall include, at a minimum, 
        the following:
                    ``(A) Monthly and annual fees and minimum balances 
                to avoid such fees.
                    ``(B) Minimum opening balances.
                    ``(C) Check processing fees.
                    ``(D) Check printing fees.
                    ``(E) Balance inquiry fees.
                    ``(F) Fees imposed for using a teller or other 
                institution employee.
                    ``(G) Stop payment order fees.
                    ``(H) Nonsufficient fund fees.
                    ``(I) Overdraft fees.
                    ``(J) Fees imposed in connection with bounced-check 
                protection and overdraft protection programs.
                    ``(K) Deposit items returned fees.
                    ``(L) Availability of no-cost or low-cost accounts 
                for consumers who maintain low balances.
            ``(2) Negotiable order of withdrawal accounts and savings 
        accounts.--Data on negotiable order of withdrawal accounts and 
        savings accounts shall include, at a minimum, the following:
                    ``(A) Monthly and annual fees and minimum balances 
                to avoid such fees.
                    ``(B) Minimum opening balances.
                    ``(C) Rate at which interest is paid to consumers.
                    ``(D) Check processing fees for negotiable order of 
                withdrawal accounts.
                    ``(E) Fees imposed for using a teller or other 
                institution employee.
                    ``(F) Availability of no-cost or low-cost accounts 
                for consumers who maintain low balances.
            ``(3) Automated teller transactions.--Data on automated 
        teller machine transactions shall include, at a minimum, the 
        following:
                    ``(A) Monthly and annual fees.
                    ``(B) Card fees.
                    ``(C) Fees charged to customers for withdrawals, 
                deposits, and balance inquiries through institution-
                owned machines.
                    ``(D) Fees charged to customers for withdrawals, 
                deposits, and balance inquiries through machines owned 
                by others.
                    ``(E) Fees charged to noncustomers for withdrawals, 
                deposits, and balance inquiries through institution-
                owned machines.
                    ``(F) Point-of-sale transaction fees.
            ``(4) Other electronic transactions.--Data on other 
        electronic transactions shall include, at a minimum, the 
        following:
                    ``(A) Wire transfer fees.
                    ``(B) Fees related to payments made over the 
                Internet or through other electronic means.
            ``(5) Other fees and charges.--Data on any other fees and 
        charges that the Board of Governors of the Federal Reserve 
        System determines to be appropriate to meet the purposes of 
        this section.
            ``(6) Federal reserve board authority.--The Board of 
        Governors of the Federal Reserve System may cease the 
        collection of information with regard to any particular fee or 
        charge specified in this subsection if the Board makes a 
        determination that, on the basis of changing practices in the 
        financial services industry, the collection of such information 
        is no longer necessary to accomplish the purposes of this 
        section.
    ``(c) Biennial Report to Congress Required.--
            ``(1) Preparation.--The Board of Governors of the Federal 
        Reserve System shall prepare a report of the results of each 
        survey conducted pursuant to subsections (a) and (b) of this 
        section and section 136(b)(1) of the Consumer Credit Protection 
        Act.
            ``(2) Contents of the report.--In addition to the data 
        required to be collected pursuant to subsections (a) and (b), 
        each report prepared pursuant to paragraph (1) shall include a 
        description of any discernible trend, in the Nation as a whole, 
        in a representative sample of the 50 States (selected with due 
        regard for regional differences), and in each consolidated 
        metropolitan statistical area (as defined by the Director of 
        the Office of Management and Budget), in the cost and 
        availability of the retail banking services, including those 
        described in subsections (a) and (b) (including related fees 
        and minimum balances), that delineates differences between 
        institutions on the basis of the type of institution and the 
        size of the institution, between large and small institutions 
        of the same type, and any engagement of the institution in 
        multistate activity.
            ``(3) Submission to the congress.--The Board of Governors 
        of the Federal Reserve System shall submit an biennial report 
        to the Congress not later than June 1, 2009, and before the end 
        of each 2-year period beginning after such date.
    ``(d) Definitions.--For purposes of this section, the term `insured 
depository institution' has the meaning given such term in section 3 of 
the Federal Deposit Insurance Act, and the term `insured credit union' 
has the meaning given such term in section 101 of the Federal Credit 
Union Act.''.
    (b) Conforming Amendment.--
            (1) In general.--Paragraph (1) of section 136(b) of the 
        Truth in Lending Act (15 U.S.C. 1646(b)(1)) is amended to read 
        as follows:
            ``(1) Collection required.--The Board shall collect, on a 
        semiannual basis, from a broad sample of financial institutions 
        which offer credit card services, credit card price and 
        availability information including--
                    ``(A) the information required to be disclosed 
                under section 127(c);
                    ``(B) the average total amount of finance charges 
                paid by consumers; and
                    ``(C) the following credit card rates and fees:
                            ``(i) Application fees.
                            ``(ii) Annual percentage rates for cash 
                        advances and balance transfers.
                            ``(iii) Maximum annual percentage rate that 
                        may be charged when an account is in default.
                            ``(iv) Fees for the use of convenience 
                        checks.
                            ``(v) Fees for balance transfers.
                            ``(vi) Fees for foreign currency 
                        conversions.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on January 1, 2009.
    (c) Repeal of Other Report Provisions.--Section 1002 of Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 and section 
108 of the Riegle-Neal Interstate Banking and Branching Efficiency Act 
of 1994 are hereby repealed.
                                 <all>