[Congressional Record Volume 143, Number 90 (Tuesday, June 24, 1997)]
[House]
[Pages H4230-H4231]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 RIEGLE-NEAL CLARIFICATION ACT OF 1997

  Mrs. ROUKEMA. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the bill (H.R. 1306) to amend the Federal Deposit 
Insurance Act to clarify the applicability of host

[[Page H4231]]

State laws to any branch in such State of an out-of-State bank, with 
Senate amendments thereto, and concur in the Senate amendments.
  The Clerk read the title of the bill.
  The Clerk read the Senate amendments, as follows:

       Senate amendments:
       Page 2, lines 2 and 3, strike out ``Clarification'' and 
     insert ``Amendments''.
       Page 2, line 5, before ``Subsection'' insert:
       (a) Activities of Branches of Out-of-State Banks.--
       Page 3, strike out lines 3 through 7 and insert:
       ``(3) Savings provision.--No provision of this subsection 
     shall be construed as affecting the applicability of--
       ``(A) any State law of any home State under subsection (b), 
     (c), or (d) of section 44; or
       ``(B) Federal law to State banks and State bank branches in 
     the home State or the host State.
       Page 3, after line 10 insert:
       (b) Law Applicable to Interstate Branching Operations.--
     Section 5155(f)(1) of the Revised Statutes (12 U.S.C. 
     36(f)(1)) is amended by adding at the end the following:
       ``(C) Review and report on actions by comptroller.--The 
     Comptroller of the Currency shall conduct an annual review of 
     the actions it has taken with regard to the applicability of 
     State law to national banks (or their branches) during the 
     preceding year, and shall include in its annual report 
     required under section 333 of the Revised Statutes (12 U.S.C. 
     14) the results of the review and the reasons for each such 
     action. The first such review and report after the date of 
     enactment of this subparagraph shall encompass all such 
     actions taken on or after January 1, 1992.''.
       Page 3, after line 10 insert:

     SEC. 3. RIGHT OF STATE TO OPT OUT.

       Nothing in this Act alters the right of States under 
     section 525 of Public Law 96-221.
       Amend the title so as to read: ``An Act to amend Federal 
     law to clarify the applicability of host State laws to any 
     branch in such State of an out-of-State bank, and for other 
     purposes.''.

  Mrs. ROUKEMA (during the reading). Mr. Speaker, I ask unanimous 
consent that the Senate amendments be considered as read and printed in 
the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New Jersey?
  There was no objection.
  The SPEAKER pro tempore. Is there objection to the original request 
of the gentlewoman from New Jersey?
  Mr. VENTO. Mr. Speaker, reserving the right to object, I would take 
this opportunity to acknowledge changes that were made in this time-
sensitive legislation by the other body.
  I yield to the gentlewoman from New Jersey [Mrs. Roukema], the 
subcommittee chairman, for an explanation.

                              {time}  1030

  Mrs. ROUKEMA. Mr. Speaker, on May 21, 1997, the House considered H.R. 
1306, the Riegle-Neal Clarification Act of 1997. It was considered 
under suspension of the rules. The bill passed the House unanimously 
and without controversy. This bill had strong bipartisan support and 
clarifies the ambiguities of the Riegle-Neal interstate bill and 
preserves the dual banking system by allowing an out-of-State branch of 
a State bank to offer the same products allowed in its home State as 
long as the host State banks or national bank branches in the State may 
exercise those same powers.
  In addition, the bill provides that the host State law will apply to 
those out-of-State branches to the extent that it also applies to 
national banks.
  This bill does not authorize, and I stress this, does not authorize 
new powers for State banks. It preserves the right of a State to decide 
how banks it charters and supervises are operated and what activities 
those banks can conduct.
  On June 12, 1997, the Senate passed H.R. 1306 with the following 
amendments: First, retitles the bill as the Riegle-Neal Amendment Act 
of 1997; second, ensures that a Federal law that applies to a State 
chartered bank also applies to branches of that bank and other States; 
third, requires the Comptroller of the Currency to include in its 
annual report to Congress a review and report of actions taken with 
regard to the applicability of State law to branches of national banks, 
including a review of all such actions taken since January 1, 1992; and 
fourth, and finally, it preserves a State's right to opt out of the 
Depository Institutions Regulatory and Monetary Control Act of 1980. 
That act authorized State chartered banks to charge interest rates 
comparable to those available to federally chartered banks.
  H.R. 1306's intent was to provide parity between national and State 
chartered banks in an interstate environment as well as to ensure the 
viability of the dual banking system is unaffected by the Senate's 
changes and those changes are acceptable, it is my understanding, to 
both the majority and the minority members of the Committee on Banking 
and Financial Services.
  It is essential that this legislation be enacted into law as soon as 
possible. On June 1, interstate branching became effective in 48 of the 
50 States. In the interstate environment that now exists, State banks 
will be at a distinct disadvantage to national banks if we fail to take 
this action today. Failure to remedy this disadvantage will certainly 
have a negative and counterproductive effect on our dual banking 
system.
  Mr. VENTO. Further reserving the right to object, Mr. Speaker, the 
House passed H.R. 1306 on suspension calendar on June 1. The deadline 
for State action to limit interstate branching within the States was 
June 1, and although we are a bit tardy, this bill is no less important 
to maintain the viability of State bank charters today, than it was in 
May.
  As has been explained by the subcommittee chairman, the title was 
changed, the application of Federal law to out-of-State State banks is 
further clarified. A State's right to opt out of the Depository 
Institutions Deregulation and Monetary Control Act was preserved, and, 
importantly, as this measure does not impact the Comptroller of the 
Currency's administration of national banking law resulting in the 
preemption of State laws when such preemption is warranted for national 
banks, thus opening up preemption capabilities for out-of-State State 
banks, the Senate amendments propose that an annual report be required 
of the OCC to show when and where preemption of State law took place in 
a previous year.
  Mr. Speaker, I have no objection to this, and I urge support for the 
bill.
  Mr. Speaker, reserving the right to object, I would like to take this 
opportunity to acknowledge that changes were made to this time-
sensitive legislation by the other body, and would yield to the 
subcommittee chairwoman, Mrs. Roukema from New Jersey, for an 
explanation.
  Continuing my reservation, the House passed H.R. 1306 on the 
suspension calendar in an attempt to enact law prior to June 1, 1997, 
the deadline for State action to limit interstate branching with the 
States. Although we are a bit tardy, this bill is no less important to 
maintain the viability for the State bank charter today, than it was in 
May.
  As has been explained, the title was changed; the application of 
Federal law to out-of-State State banks was further clarified; a 
State's right to opt out of the DIDA [the Depository Institutions' 
Deregulation and Monetary Control Act] was preserved; and, importantly, 
as this measure will not impact the Comptroller of the Currency's 
administration of national bank law resulting in the preemption of 
State laws when such preemption is warranted for national banks--thus 
opening up preemption capabilities for out-of-State State banks--the 
Senate amendments propose that an annual report will be required of the 
OCC to show when and where preemption of State law took place in the 
previous year.
  Mr. Speaker, I will not object to moving this bill which will help 
preserve a healthy dual banking system. I withdraw my reservation to 
object and ask my colleagues for their support on this measure, H.R. 
1306 as amended.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore (Mr. Radanovich). Is there objection to the 
original request of the gentlewoman from New Jersey?
  There was no objection.
  A motion to reconsider was laid on the table.

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