[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3599 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3599

   To amend the Federal Deposit Insurance Act to provide for deposit 
     restricted qualified tuition programs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 17, 2009

Mr. Cleaver (for himself and Mr. Frank of Massachusetts) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Deposit Insurance Act to provide for deposit 
     restricted qualified tuition programs, 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 ``Deposit Restricted Qualified Tuition 
Programs Act of 2009''.

SEC. 2. DEPOSIT RESTRICTED QUALIFIED TUITION PROGRAMS.

    Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(y) Deposit Restricted Qualified Tuition Programs.--
            ``(1) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Deposit restricted qualified tuition 
                program.--The term `deposit restricted qualified 
                tuition program' means a qualified tuition program in 
                which--
                            ``(i) the cash provided by a contributor to 
                        such a qualified tuition program may be 
                        invested only in deposits insured by the 
                        Corporation;
                            ``(ii) the contributor may become a 
                        participant in the program by depositing funds 
                        into an account at a depository institution 
                        participating in the program; and
                            ``(iii) the program may include multiple 
                        depository institutions, subject to the 
                        requirements of section 529 of the Internal 
                        Revenue Code of 1986.
                    ``(B) Qualified tuition program.--The term 
                `qualified tuition program' has the same meaning as in 
                section 529 of the Internal Revenue Code of 1986.
            ``(2) Treatment.--Notwithstanding any other provision of 
        the law, the following provisions shall apply with respect to 
        any deposit restricted qualified tuition program:
                    ``(A) A deposit restricted qualified tuition 
                program shall be deemed to be an `identified banking 
                product' (as defined in Section 206 of the Gramm-Leach-
                Bliley Act of 1999) for purposes of the Securities 
                Exchange Act of 1934.
                    ``(B) None of the following shall be treated as a 
                security, as defined in section 2(a)(1) the Securities 
                Act of 1933, section 3(a)(10) of the Securities 
                Exchange Act of 1934, or section 2(a)(36) of the 
                Investment Company Act of 1940:
                            ``(i) The investment of cash in deposits at 
                        an insured depository institution through a 
                        deposit restricted qualified tuition program.
                            ``(ii) Any certificate of deposit or other 
                        instrument evidencing any such deposit.
                            ``(iii) Any participation by a contributor 
                        to a deposit restricted qualified tuition 
                        program.
                    ``(C) In no event shall a deposit restricted 
                qualified tuition program be deemed to be an issuer of 
                a security or to be an investment company (as defined 
                in section 3(a) of the Investment Company Act of 
                1940).''.
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