[Congressional Record Volume 157, Number 10 (Tuesday, January 25, 2011)]
[Senate]
[Pages S174-S177]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INOUYE:
  S. 62. 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; to the Committee on Banking, 
Housing, and Urban Affairs.
  Mr. INOUYE. Mr. President, I rise to introduce a bill that would 
provide authority for the establishment of branch banking facilities on 
Indian reservations so that the Federally-chartered Native American 
Bank could enable access to financial services to Indian tribes and 
their citizens.
  Many years ago, as part of my service as Chairman of the Senate 
Indian Affairs Committee, I met with tribal leaders to discuss the 
challenges of economic development in Indian country. At that time, I 
suggested that they might give consideration to a means by which tribal 
governments could pool their resources and thereby provide the capital 
that other tribal governments could employ on a short-term loan basis 
to undertake reservation-based projects that held the potential of 
stimulating economic growth in their tribal communities.
  The tribal leaders with whom I met were very interested in this idea, 
and in the ensuing years, went forward and established the Native 
American Bank--which is headquartered in Denver--but continues to 
manage its first affiliated bank on the Blackfeet Indian Reservation in 
Montana.
  As my colleagues know, there are few financial institutions located 
either on or near Indian reservations, and sadly, there is evidence 
that some financial institutions have found it apparently necessary to 
either charge very high rates that they associate with the risk of 
doing business in Indian country, or to deny financial assistance 
altogether.
  The Native American Bank has stepped into that latter void and has 
been providing meaningful financial services to tribal governments and 
their citizens for a number of years.
  This bill contains amendments to the McFadden Act that have been 
carefully sculpted to address only this narrow expansion of capacity on 
the part of financial institutions serving Indian country.
  Mr. President I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 62

       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

[[Page S177]]

       ``(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.''.
                                 ______