[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6162 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 6162

To amend the Federal Deposit Insurance Act to ensure that prepaid funds 
deposited in an insured depository institution satisfy the requirements 
 of the primary purpose exclusion to the definition of deposit broker, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 2016

  Mr. Tipton introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act to ensure that prepaid funds 
deposited in an insured depository institution satisfy the requirements 
 of the primary purpose exclusion to the definition of deposit broker, 
                        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 ``Protect Prepaid Accounts Act of 
2016''.

SEC. 2. LIMITED EXCLUSION FOR PREPAID CARD DEPOSITS.

    (a) In General.--Section 29 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f) is amended by adding at the end the following new 
subsection:
    ``(i) Limited Exclusion for Prepaid Card Deposits.--
            ``(1) In general.--Prepaid funds deposited by an agent or 
        nominee in an insured depository institution shall satisfy the 
        requirements of the primary purpose exclusion to the definition 
        of deposit broker set forth in subsection (g)(2)(I) of this 
        section, unless such agent or nominee controls the deposits and 
        has the contractual right to cause the transfer of such 
        deposits from the insured depository institution then holding 
        the deposits to another insured depository institution selected 
        by such agent or nominee.
            ``(2) Definitions.--In this subsection, the following 
        definitions shall apply:
                    ``(A) Prepaid funds.--The term `prepaid funds' 
                means--
                            ``(i) funds deposited through a prepaid 
                        program (as defined in 1010.100(ff)(4)(iii) of 
                        title 31, Code of Federal Regulations); or
                            ``(ii) funds available from a card, code, 
                        or other device that is not otherwise an 
                        account (as defined in 1005.2(b)(1) of title 
                        31, Code of Federal Regulations) that is 
                        established primarily for personal, household, 
                        or family purposes, where such card, code, or 
                        other device is--
                                    ``(I) issued on a prepaid basis to 
                                a consumer in a specified amount, or is 
                                not issued on a prepaid basis but 
                                capable of being loaded with funds 
                                thereafter; and
                                    ``(II) redeemable at multiple 
                                unaffiliated merchants for goods or 
                                services, usable at automated teller 
                                machines, or usable for person-to-
                                person transfers.''.
    (b) Applicability.--Nothing in this Act or the amendment made by 
this Act shall be construed to limit the application of any provision 
of the Federal Deposit Insurance Act, other than section 29 of such Act 
(12 U.S.C. 1831f), to an insured depository institution (as defined in 
section 3(c) of such Act (12 U.S.C. 1813(c))).
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