[Congressional Record Volume 147, Number 176 (Tuesday, December 18, 2001)]
[Senate]
[Pages S13465-S13467]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD (for himself, Mrs. Clinton, Mr. Shelby, and Mr. 
        Feingold):
  S. 1839. A bill to amend the Bank Holding Company Act of 1956, and 
the Revised Statutes of the United States to prohibit financial holding 
companies and national banks from engaging, directly or indirectly, in 
real estate brokerage or real estate management activities, and for 
other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. ALLARD. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1839

       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 ``Community Choice in Real 
     Estate Act''.

     SEC. 2. CLARIFICATION THAT REAL ESTATE BROKERAGE AND 
                   MANAGEMENT ACTIVITIES ARE NOT BANKING OR 
                   FINANCIAL ACTIVITIES.

       (a) Bank Holding Company Act of 1956.--Section 4(k) of the 
     Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Real estate brokerage and real estate management 
     activities.--
       ``(A) In general.--The Board may not determine that real 
     estate brokerage activity or real estate management activity 
     is an activity that is financial in nature, is incidental to 
     any financial activity, or is complementary to a financial 
     activity.
       ``(B) Real estate brokerage activity defined.--For purposes 
     of this paragraph, the term `real estate brokerage activity' 
     means any activity that involves offering or providing real 
     estate brokerage services to the public, including--
       ``(i) acting as an agent for a buyer, seller, lessor, or 
     lessee of real property;
       ``(ii) listing or advertising real property for sale, 
     purchase, lease, rental, or exchange;
       ``(iii) providing advice in connection with sale, purchase, 
     lease, rental, or exchange of real property;
       ``(iv) bringing together parties interested in the sale, 
     purchase, lease, rental, or exchange of real property;
       ``(v) negotiating, on behalf of any party, any portion of a 
     contract relating to the sale, purchase, lease, rental, or 
     exchange of real property (other than in connection with 
     providing financing with respect to any such transaction);
       ``(vi) engaging in any activity for which a person engaged 
     in the activity is required to be registered or licensed as a 
     real estate agent or broker under any applicable law; and
       ``(vii) offering to engage in any activity, or act in any 
     capacity, described in clause (i), (ii), (iii), (iv), (v), or 
     (vi).
       ``(C) Real estate management activity defined.--For 
     purposes of this paragraph,

[[Page S13467]]

     the term `real estate management activity' means any activity 
     that involves offering or providing real estate management 
     services to the public, including--
       ``(i) procuring any tenant or lessee for any real property;
       ``(ii) negotiating leases of real property;
       ``(iii) maintaining security deposits on behalf of any 
     tenant or lessor of real property (other than as a depository 
     institution for any person providing real estate management 
     services for any tenant or lessor of real property);
       ``(iv) billing and collecting rental payments with respect 
     to real property or providing periodic accounting for such 
     payments;
       ``(v) making principal, interest, insurance, tax, or 
     utility payments with respect to real property (other than as 
     a depository institution or other financial institution on 
     behalf of, and at the direction of, an account holder at the 
     institution);
       ``(vi) overseeing the inspection, maintenance, and upkeep 
     of real property, generally; and
       ``(vii) offering to engage in any activity, or act in any 
     capacity, described in clause (i), (ii), (iii), (iv), (v), or 
     (vi).
       ``(D) Exception for company property.--This paragraph shall 
     not apply to an activity of a bank holding company or any 
     affiliate of such company that directly relates to managing 
     any real property owned by such company or affiliate, or the 
     purchase, sale, or lease of property owned, or to be used or 
     occupied, by such company or affiliate.''.
       (b) Revised Statutes of the United States.--Section 
     5136A(b) of the Revised Statutes of the United States (12 
     U.S.C. 24a(b)) is amended by adding at the end the following 
     new paragraph:
       ``(4) Real estate brokerage and real estate management 
     activities.--
       ``(A) In general.--The Secretary may not determine that 
     real estate brokerage activity or real estate management 
     activity is an activity that is financial in nature, is 
     incidental to any financial activity, or is complementary to 
     a financial activity.
       ``(B) Definitions.--For purposes of this paragraph, the 
     terms `real estate brokerage activity' and `real estate 
     management activity' have the same meanings as in section 
     4(k)(8) of the Bank Holding Company Act of 1956.
       ``(C) Exception for company property.--This paragraph shall 
     not apply to an activity of a national bank, or a subsidiary 
     of a national bank, that directly relates to managing any 
     real property owned by such bank or subsidiary, or the 
     purchase, sale, or lease of property owned, or to be owned, 
     by such bank or subsidiary.''.
                                 ______