[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 62 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 62

   To amend the Federal Deposit Insurance Act to modify requirements 
 relating to the location of bank branches on Indian reservations, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 25 (legislative day, January 5), 2011

  Mr. Inouye introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Deposit Insurance Act to modify requirements 
 relating to the location of bank branches on Indian reservations, 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 ``Indian Reservation Bank Branch Act 
of 2009''.

SEC. 2. REGULATIONS GOVERNING INSURED DEPOSITORY INSTITUTIONS.

    Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(d)) is amended by adding at the end the following:
            ``(5) Election by indian tribes to permit branching of 
        banks on indian reservations.--
                    ``(A) Definitions.--In this paragraph, the 
                following definitions shall apply:
                            ``(i) De novo branch.--The term `de novo 
                        branch' means a branch of a State bank that--
                                    ``(I) is originally established by 
                                the State bank as a branch; and
                                    ``(II) does not become a branch of 
                                the State bank as a result of--
                                            ``(aa) the acquisition by 
                                        the State bank of an insured 
                                        depository institution (or a 
                                        branch of an insured depository 
                                        institution); or
                                            ``(bb) the conversion, 
                                        merger, or consolidation of any 
                                        such institution or branch.
                            ``(ii) Home state.--
                                    ``(I) In general.--The term `home 
                                State' means the State in which the 
                                main office of a State bank is located.
                                    ``(II) Branches on indian 
                                reservations.--The term `home State' 
                                with respect to a State bank, the main 
                                office of which is located within the 
                                boundaries of an Indian reservation (in 
                                a case in which State law permits the 
                                chartering of such a main office on an 
                                Indian reservation), means--
                                            ``(aa) the State in which 
                                        the Indian reservation is 
                                        located; or
                                            ``(bb) for an Indian 
                                        reservation that is located in 
                                        more than 1 State, the State in 
                                        which the portion of the Indian 
                                        reservation containing the main 
                                        office of the State bank is 
                                        located.
                            ``(iii) Host reservation.--The term `host 
                        reservation', with respect to a bank, means an 
                        Indian reservation located in a State other 
                        than the home State of the bank in which the 
                        bank maintains, or seeks to establish and 
                        maintain, a branch.
                            ``(iv) Indian reservation.--
                                    ``(I) In general.--The term `Indian 
                                reservation' means land subject to the 
                                jurisdiction of an Indian tribe.
                                    ``(II) Inclusions.--The term 
                                `Indian reservation' includes--
                                            ``(aa) any public domain 
                                        Indian allotment;
                                            ``(bb) any land area 
                                        located within the outer 
                                        geographic boundaries 
                                        recognized as an Indian 
                                        reservation by a Federal 
                                        treaty, Federal regulation, 
                                        decision or order of the Bureau 
                                        of Indian Affairs or any 
                                        successor agency thereto, or 
                                        statute in force with respect 
                                        to a federally recognized 
                                        tribal nation;
                                            ``(cc) any former Indian 
                                        reservation in the State of 
                                        Oklahoma; and
                                            ``(dd) any land held by a 
                                        Native village, Native group, 
                                        Regional Corporation, or 
                                        Village Corporation under the 
                                        Alaska Native Claims Settlement 
                                        Act (43 U.S.C. 1601 et seq.).
                            ``(v) Indian tribe.--The term `Indian 
                        tribe' has the same meaning as in section 4 of 
                        the Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 450b).
                            ``(vi) Tribal government.--
                                    ``(I) In general.--The term `tribal 
                                government' means the business council, 
                                tribal council, or similar legislative 
                                or governing body of an Indian tribe--
                                            ``(aa) the members of which 
                                        are representatives elected by 
                                        the members of the Indian 
                                        tribe; and
                                            ``(bb) that is empowered to 
                                        enact laws applicable within 
                                        the Indian reservation of the 
                                        Indian tribe.
                                    ``(II) Multitribal reservations.--
                                The term `tribal government', with 
                                respect to an Indian reservation within 
                                the boundaries of which are located 
                                more than 1 Indian tribe, each of which 
                                has a separate council, means a joint 
                                business council or similar intertribal 
                                governing council that includes 
                                representatives of each applicable 
                                Indian tribe.
                                    ``(III) Inclusion.--The term 
                                `tribal government' includes a 
                                governing body of any Regional 
                                Corporation or Village Corporation (as 
                                defined in section 3 of the Alaska 
                                Native Claims Settlement Act (43 U.S.C. 
                                1602)).
                    ``(B) Approval by corporation.--Subject to 
                subparagraph (C), in addition to any other authority 
                under this section to approve an application to 
                establish a branch within the boundaries of an Indian 
                reservation, the Corporation may approve an application 
                of a State bank to establish and operate a de novo 
                branch within the boundaries of 1 or more Indian 
                reservations (regardless of whether the Indian 
                reservations are located within the home State of the 
                State bank), if there is in effect within the host 
                reservation a law enacted by the tribal government of 
                the host reservation that--
                            ``(i) applies with equal effect to all 
                        banks located within the host reservation; and
                            ``(ii) specifically permits any in-State or 
                        out-of-State bank to establish within the host 
                        reservation a de novo branch.
                    ``(C) Conditions.--
                            ``(i) Establishment.--An application by a 
                        State bank to establish and operate a de novo 
                        branch within a host reservation shall not be 
                        subject to the requirements and conditions 
                        applicable to an application for an interstate 
                        merger transaction under paragraphs (1), (3), 
                        and (4) of section 44(b).
                            ``(ii) Operation.--Subsections (c) and 
                        (d)(2) of section 44 shall not apply with 
                        respect to a branch of a State bank that is 
                        established and operated pursuant to an 
                        application approved under this paragraph.
                            ``(iii) Prohibition.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), no State 
                                nonmember bank that establishes or 
                                operates a branch on 1 or more Indian 
                                reservations solely pursuant to 
                                paragraph (5) may establish any 
                                additional branch outside of such 
                                Indian reservation in any State in 
                                which the Indian reservation is 
                                located.
                                    ``(II) Exception.--Subclause (I) 
                                shall not apply if a State nonmember 
                                bank described in that subclause would 
                                be permitted to establish and operate 
                                an additional branch under any other 
                                provision of this section, without 
                                regard to the establishment or 
                                operation by the State nonmember bank 
                                of a branch on the subject Indian 
                                reservation.''.

SEC. 3. BRANCH BANKS.

    Section 5155 of the Revised Statutes of the United States (12 
U.S.C. 36) is amended by inserting after subsection (g) the following:
    ``(h) Election by Indian Tribes To Permit Branching of National 
Banks on Indian Reservations.--
            ``(1) Definitions.--In this subsection, the following 
        definitions shall apply:
                    ``(A) De novo branch.--The term `de novo branch' 
                means a branch of a national bank that--
                            ``(i) is originally established by the 
                        national bank as a branch; and
                            ``(ii) does not become a branch of the 
                        national bank as a result of--
                                    ``(I) the acquisition by the 
                                national bank of an insured depository 
                                institution (or a branch of an insured 
                                depository institution); or
                                    ``(II) the conversion, merger, or 
                                consolidation of any such institution 
                                or branch.
                    ``(B) Home state.--
                            ``(i) In general.--The term `home State' 
                        means the State in which the main office of a 
                        national bank is located.
                            ``(ii) Branches on indian reservations.--
                        The term `home State', with respect to a 
                        national bank, the main office of which is 
                        located within the boundaries of an Indian 
                        reservation, means--
                                    ``(I) the State in which the Indian 
                                reservation is located; or
                                    ``(II) for an Indian reservation 
                                that is located in more than 1 State, 
                                the State in which the portion of the 
                                Indian reservation containing the main 
                                office of the national bank is located.
                    ``(C) Host reservation.--The term `host 
                reservation', with respect to a national bank, means an 
                Indian reservation located in a State other than the 
                home State of the bank in which the bank maintains, or 
                seeks to establish and maintain, a branch.
                    ``(D) Indian reservation.--
                            ``(i) In general.--The term `Indian 
                        reservation' means land subject to the 
                        jurisdiction of an Indian tribe.
                            ``(ii) Inclusions.--The term `Indian 
                        reservation' includes--
                                    ``(I) any public domain Indian 
                                allotment;
                                    ``(II) any land area located within 
                                the outer geographic boundaries 
                                recognized as an Indian reservation by 
                                a Federal treaty, Federal regulation, 
                                decision or order of the Bureau of 
                                Indian Affairs or any successor agency 
                                thereto, or statute in force with 
                                respect to a federally recognized 
                                tribal nation;
                                    ``(III) any former Indian 
                                reservation in the State of Oklahoma; 
                                and
                                    ``(IV) any land held by a Native 
                                village, Native group, Regional 
                                Corporation, or Village Corporation 
                                under the Alaska Native Claims 
                                Settlement Act (43 U.S.C. 1601 et 
                                seq.).
                    ``(E) Indian tribe.--The term `Indian tribe' has 
                the same meaning as in section 4 of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450b).
                    ``(F) Tribal government.--
                            ``(i) In general.--The term `tribal 
                        government' means the business council, tribal 
                        council, or similar legislative or governing 
                        body of an Indian tribe--
                                    ``(I) the members of which are 
                                representatives elected by the members 
                                of the Indian tribe; and
                                    ``(II) that is empowered to enact 
                                laws applicable within the Indian 
                                reservation of the Indian tribe.
                            ``(ii) Multitribal reservations.--The term 
                        `tribal government', with respect to an Indian 
                        reservation within the boundaries of which are 
                        located more than 1 Indian tribe, each of which 
                        has a separate council, means a joint business 
                        council or similar intertribal governing 
                        council that includes representatives of each 
                        applicable Indian tribe.
                            ``(iii) Inclusion.--The term `tribal 
                        government' includes a governing body of any 
                        Regional Corporation or Village Corporation (as 
                        defined in section 3 of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 1602)).
            ``(2) Approval by comptroller.--Subject to paragraph (3), 
        in addition to any other authority under this section to 
        approve an application to establish a national bank branch 
        within the boundaries of an Indian reservation, the Comptroller 
        may approve an application of a national bank to establish and 
        operate a de novo branch within the boundaries of an Indian 
        reservation (regardless of whether the Indian reservation is 
        located within the home State of the national bank), if there 
        is in effect within the host reservation a law enacted by the 
        tribal government of the host reservation that--
                    ``(A) applies with equal effect to all banks 
                located within the host reservation; and
                    ``(B) specifically permits any in-State or out-of-
                State bank to establish within the host reservation a 
                de novo branch.
            ``(3) Conditions.--
                    ``(A) Establishment.--An application by a national 
                bank to establish and operate a de novo branch within a 
                host reservation shall not be subject to the 
                requirements and conditions applicable to an 
                application for an interstate merger transaction under 
                paragraphs (1), (3), and (4) of section 44(b) of the 
                Federal Deposit Insurance Act (12 U.S.C. 1831u(b)).
                    ``(B) Operation.--Subsections (c) and (d)(2) of 
                section 44 of that Act (12 U.S.C. 1831u) shall not 
                apply with respect to a branch of a national bank that 
                is established and operated pursuant to an application 
                approved under this subsection.
                    ``(C) Prohibition.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), no national bank that establishes 
                        or operates a branch on 1 or more Indian 
                        reservations solely pursuant to subsection (h) 
                        may establish any additional branch outside of 
                        such Indian reservation in the State in which 
                        the Indian reservation is located.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply if a national bank described in that 
                        clause would be permitted to establish and 
                        operate an additional branch under any other 
                        provision of this section or other applicable 
                        law, without regard to the establishment or 
                        operation by the national bank of a branch on 
                        the subject Indian reservation.''.
                                 <all>