[Congressional Record Volume 146, Number 46 (Wednesday, April 12, 2000)]
[Extensions of Remarks]
[Page E543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E543]]
                  BUSINESS CHECKING MODERNIZATION ACT

                                 ______
                                 

                               speech of

                           HON. MARGE ROUKEMA

                             of new jersey

                    in the house of representatives

                        Tuesday, April 11, 2000

  Mrs. ROUKEMA. Mr. Speaker, I rise in strong support of H.R. 4067, the 
Business Checking Modernization Act.
  I agree that repealing the prohibition on paying interest on business 
checking is clearly the right public policy. This prohibition--which is 
anti-small business--is a relic of Depression era banking laws. This 
legislation has been in bills which I've introduced and worked on in 
both the 105th and 106th Congresses. Both the NFIB and U.S. Chamber 
support repeal as well as most of the banking industry--the American 
Bankers Association, America's Community Bankers and others. The real 
question is--and continues to be--what is the appropriate time frame 
for repeal.
  Mr. Leach, I appreciate your willingness to accommodate me in this 
regard. As introduced, H.R. 4067 provided a 1 year transition period, 
which I believe was just too short for many of our small bankers to 
adjust to. While some members have argued for a 6 year transition 
period I don't believe that long a period is warranted. The 3 year 
period which is in H.R. 4067 is fair. This period of time will permit 
banks and thrifts to rework their arrangements with business customers 
so that no one is significantly disadvantaged.
  In addition, I'd like to thank you for including a provision in the 
bill which immediately permits banks and thrifts to provide their 
business customers with up to 24 sweep transactions a month. Adding 
this provision provides flexibility which will assist both banks and 
their customers. Again, it is similar to a provision from my Regulatory 
Burden Relief bills from both the 105th and 106th Congresses. The 
provision would permit banks and thrifts to sweep idle cash out of a 
corporate checking account each business day in a month. It is both 
appropriate and helpful.
  The Business Checking Modernization Act is a good bill. It strikes a 
reasonable balance between the interests of small banks and small 
businesses. I encourage my colleagues to strongly support this 
excellent piece of legislation.

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