[Congressional Record (Bound Edition), Volume 154 (2008), Part 10]
[House]
[Pages 13534-13540]
[From the U.S. Government Publishing Office, www.gpo.gov]




      CREDIT UNION, BANK, AND THRIFT REGULATORY RELIEF ACT OF 2008

  Mr. KANJORSKI. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6312) to advance credit union efforts to promote economic 
growth, modify credit union regulatory standards and reduce burdens, to 
provide regulatory relief and improve productivity for insured 
depository institutions, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6312

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Credit 
     Union, Bank, and Thrift Regulatory Relief Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                         TITLE I--CREDIT UNIONS

Sec. 101. Investments in securities by Federal credit unions.
Sec. 102. Increase in investment limit in credit union service 
              organizations.
Sec. 103. Member business loan exclusion for loans to nonprofit 
              religious organizations.
Sec. 104. Authority of NCUA to establish longer maturities for certain 
              credit union loans.
Sec. 105. Providing the National Credit Union Administration with 
              greater flexibility in responding to market conditions.
Sec. 106. Conversions of certain credit unions to a community charter.
Sec. 107. Credit union participation in the SBA section 504 program.
Sec. 108. Amendments relating to credit union service to underserved 
              areas.
Sec. 109. Short-term payday loan alternatives within field of 
              membership.
Sec. 110. Credit union governance.
Sec. 111. Encouraging small business development in underserved urban 
              and rural communities.

                TITLE II--SAVINGS ASSOCIATION PROVISIONS

Sec. 201. Restatement of authority for Federal savings associations to 
              invest in small business investment companies.
Sec. 202. Removal of limitation on investments in auto loans.
Sec. 203. Repeal of qualified thrift lender requirement with respect to 
              out-of-state branches.
Sec. 204. Small business and other commercial loans.
Sec. 205. Increase in limits on commercial real estate loans.
Sec. 206. Savings association credit card banks.

[[Page 13535]]

                      TITLE III--NOTICE PROVISIONS

Sec. 301. Exception to annual privacy notice requirement under the 
              Gramm-Leach-Bliley Act.

                      TITLE IV--BUSINESS CHECKING

Sec. 401. Short title.
Sec. 402. Interest-bearing transaction accounts authorized for all 
              businesses.
Sec. 403. Interest-bearing transaction accounts authorized.
Sec. 404. Rules of construction.
Sec. 405. Consumer banking costs assessment.

                         TITLE I--CREDIT UNIONS

     SEC. 101. INVESTMENTS IN SECURITIES BY FEDERAL CREDIT UNIONS.

       Section 107 of the Federal Credit Union Act (12 U.S.C. 
     1757) is amended--
       (1) by striking ``A Federal credit union'' and inserting 
     ``(a) In General.--A Federal credit union''; and
       (2) by adding at the end the following new subsection:
       ``(b) Investment for the Credit Union's Own Account.--
       ``(1) In general.--In addition to the investments 
     authorized in subsection (a), a Federal credit union may 
     purchase and hold for its own account such investment 
     securities of investment grade as the Board may authorize by 
     regulation, subject to such limitations and restrictions as 
     the Board may prescribe in the regulations.
       ``(2) Percentage limitations.--
       ``(A) Single obligor.--In no event may the total amount of 
     investment securities of any single obligor or maker held by 
     a Federal credit union for the credit union's own account 
     exceed at any time an amount equal to 10 percent of the net 
     worth of the credit union.
       ``(B) Aggregate investments.--In no event may the aggregate 
     amount of investment securities held by a Federal credit 
     union for the credit union's own account exceed at any time 
     an amount equal to 10 percent of the assets of the credit 
     union.
       ``(3) Investment security defined.--
       ``(A) In general.--For purposes of this subsection, the 
     term `investment security' means marketable obligations 
     evidencing the indebtedness of any person in the form of 
     bonds, notes, or debentures and other instruments commonly 
     referred to as investment securities.
       ``(B) Further definition by board.--The Board may further 
     define the term `investment security'.
       ``(4) Investment grade defined.--The term `investment 
     grade' means with respect to an investment security purchased 
     by a credit union for its own account, an investment security 
     that at the time of such purchase is rated in one of the 4 
     highest rating categories by at least 1 nationally recognized 
     statistical rating organization.
       ``(5) Clarification of prohibition on stock ownership.--No 
     provision of this subsection shall be construed as 
     authorizing a Federal credit union to purchase shares of 
     stock of any corporation for the credit union's own account, 
     except as otherwise permitted by law.''.

     SEC. 102. INCREASE IN INVESTMENT LIMIT IN CREDIT UNION 
                   SERVICE ORGANIZATIONS.

       Section 107(a)(7)(I) of the Federal Credit Union Act (12 
     U.S.C. 1757(7)(I)) (as so redesignated by section 101(1)) is 
     amended by striking ``up to 1 per centum of the total paid'' 
     and inserting ``up to 3 percent of the total paid''.

     SEC. 103. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO 
                   NONPROFIT RELIGIOUS ORGANIZATIONS.

       Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 
     1757a(a)) is amended by inserting ``, excluding loans made to 
     nonprofit religious organizations,'' after ``total amount of 
     such loans''.

     SEC. 104. AUTHORITY OF NCUA TO ESTABLISH LONGER MATURITIES 
                   FOR CERTAIN CREDIT UNION LOANS.

       Section 107(a)(5) of the Federal Credit Union Act (12 
     U.S.C. 1757(5)) (as so redesignated by section 101(1)) is 
     amended in the matter preceding subparagraph (A), by striking 
     ``except as otherwise provided herein'' and inserting ``or 
     any longer maturity as the Board may allow, in regulations, 
     except as otherwise provided in this Act''.

     SEC. 105. PROVIDING THE NATIONAL CREDIT UNION ADMINISTRATION 
                   WITH GREATER FLEXIBILITY IN RESPONDING TO 
                   MARKET CONDITIONS.

       Section 107(a)(5)(A)(vi)(I) of the Federal Credit Union Act 
     (12 U.S.C. 1757(5)(A)(vi)(I)) (as so redesignated by section 
     101(1)) is amended by striking ``six-month period and that 
     prevailing interest rate levels'' and inserting ``6-month 
     period or that prevailing interest rate levels''.

     SEC. 106. CONVERSIONS OF CERTAIN CREDIT UNIONS TO A COMMUNITY 
                   CHARTER.

       Section 109(g) of the Federal Credit Union Act (12 U.S.C. 
     1759(g)) is amended by inserting after paragraph (2) the 
     following new paragraph:
       ``(3) Criteria for continued membership of certain member 
     groups in community charter conversions.--In the case of a 
     voluntary conversion of a common-bond credit union described 
     in paragraph (1) or (2) of subsection (b) into a community 
     credit union described in subsection (b)(3), the Board shall 
     prescribe, by regulation, the criteria under which the Board 
     may determine that a member group or other portion of a 
     credit union's existing membership, that is located outside 
     the well-defined local community, neighborhood, or rural 
     district that shall constitute the community charter, can be 
     satisfactorily served by the credit union and remain within 
     the community credit union's field of membership.''.

     SEC. 107. CREDIT UNION PARTICIPATION IN THE SBA SECTION 504 
                   PROGRAM.

       Section 107(a)(5)(A)(iii) of the Federal Credit Union Act 
     (12 U.S.C. 1757(5)(A)(iii)) (as so redesignated by section 
     101(1)) is amended by inserting ``, and applicable 
     regulations,'' after ``specified in the law''.

     SEC. 108. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO 
                   UNDERSERVED AREAS.

       (a) In General.--Paragraph (2) of section 109(c) of the 
     Federal Credit Union Act (12 U.S.C. 1759(c)(2)) is amended to 
     read as follows:
       ``(2) Exception for underserved areas.--
       ``(A) In general.--Notwithstanding subsection (b), the 
     Board may approve an application by a Federal credit union to 
     allow the membership of such credit union to include any 
     person or organization whose principal residence or place of 
     business is located within a local community, neighborhood, 
     or rural district if--
       ``(i) the Board determines--

       ``(I) at any time after August 7, 1998, that all of the 
     local community, neighborhood, or rural district taken into 
     account for purposes of this paragraph is an underserved area 
     (as defined in section 101(10)); and
       ``(II) at the time of such approval, that the credit union 
     is well capitalized or adequately capitalized (as defined in 
     section 216(c)(1)); and

       ``(ii) before the end of the 24-month period beginning on 
     the date of such approval, the credit union has established 
     and maintains an office or facility in the local community, 
     neighborhood, or rural district at which credit union 
     services are available.
       ``(B) Termination of approval.--Any failure of a Federal 
     credit union to meet the requirement of clause (ii) of 
     subparagraph (A) by the end of the 24-month period referred 
     to in such clause shall constitute a termination, as a matter 
     of law, of any approval of an application under this 
     paragraph by the Board with respect to the membership of such 
     credit union.
       ``(C) Annual credit union reporting requirement.--Any 
     Federal credit union which has an application approved under 
     this paragraph shall submit an annual report to the 
     Administration on the number of members of the credit union 
     who are members by reason of such application and the number 
     of offices or facilities maintained by the credit union in 
     the local community, neighborhood, or rural district taken 
     into account by the Board in approving such application.
       ``(D) Publication by administration.--The Administration 
     shall publish annually a report containing--
       ``(i) a list of all the applications approved under this 
     paragraph prior to the publication of the report;
       ``(ii) the number and locations of the underserved areas 
     taken into account in approving such applications; and
       ``(iii) the total number of members of credit unions who 
     are members by reason of the approval of such 
     applications.''.
       (b) Underserved Area Defined.--Section 101 of the Federal 
     Credit Union Act (12 U.S.C. 1752) is amended--
       (1) by striking ``and'' at the end of paragraph (8);
       (2) by striking the period at the end of paragraph (9) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(10) the term `underserved area'--
       ``(A) means a geographic area consisting of a single census 
     tract or a group of census tracts, each of which--
       ``(i) meets the criteria for--

       ``(I) a low income community, as defined in section 45D(e) 
     of the Internal Revenue Code of 1986; or
       ``(II) an investment area, as defined and designated under 
     section 103(16) of the Community Development Banking and 
     Financial Institutions Act of 1994; and

       ``(ii) is not a tract in which 50 percent or more of the 
     resident families have annual incomes in excess of $75,000 
     (as adjusted periodically by the Board, at the discretion of 
     the Board, to reflect changes in the average Consumer Price 
     Index for all-urban consumers published by the Department of 
     Labor); and
       ``(B) notwithstanding subparagraph (A), includes, with 
     respect to any Federal credit union, any geographic area 
     within which such credit union--
       ``(i) has received approval to provide service before the 
     date of the enactment of the Credit Union, Bank, and Thrift 
     Regulatory Relief Act of 2008 from the National Credit Union 
     Administration; and
       ``(ii) has established a service facility before such date 
     of enactment.''.

     SEC. 109. SHORT-TERM PAYDAY LOAN ALTERNATIVES WITHIN FIELD OF 
                   MEMBERSHIP.

       Section 107(a) of the Federal Credit Union Act (12 U.S.C. 
     1757(5)) (as so redesignated by section 101(1)) is amended--

[[Page 13536]]

       (1) by redesignating paragraphs (16) and (17) as paragraphs 
     (17) and (18), respectively; and
       (2) by inserting after paragraph (15) the end the following 
     new paragraph:
       ``(16) to make short-term unsecured loans as an alternative 
     to payday loans, in amounts not more than $1,000 each and for 
     a term of not more than 90 days, to nonmembers in the field 
     of membership, subject to the same terms and conditions as 
     are applicable under paragraph (5)(A), including the interest 
     rate ceiling, with respect to loans to members, to the extent 
     applicable, and to regulations prescribed by the Board.''.

     SEC. 110. CREDIT UNION GOVERNANCE.

       (a) Expulsion of Members for Just Cause.--Subsection (b) of 
     section 118 of the Federal Credit Union Act (12 U.S.C. 
     1764(b)) is amended to read as follows:
       ``(b) Policy and Actions of Boards of Directors of Federal 
     Credit Unions.--
       ``(1) Expulsion of members for nonparticipation or for just 
     cause.--The board of directors of a Federal credit union may, 
     by majority vote of a quorum of directors, adopt and enforce 
     a policy with respect to expulsion from membership, by a 
     majority vote of such board of directors, based on just 
     cause, including disruption of credit union operations, or on 
     nonparticipation by a member in the affairs of the credit 
     union.
       ``(2) Written notice of policy to members.--If a policy 
     described in paragraph (1) is adopted, written notice of the 
     policy as adopted and the effective date of such policy shall 
     be provided to--
       ``(A) each existing member of the credit union not less 
     than 30 days prior to the effective date of such policy; and
       ``(B) each new member prior to or upon applying for 
     membership.''.
       (b) Term Limits Authorized for Board Members of Federal 
     Credit Unions.--Section 111(a) of the Federal Credit Union 
     Act (12 U.S.C. 1761(a)) is amended by adding at the end the 
     following new sentence: ``The bylaws of a Federal credit 
     union may limit the number of consecutive terms any person 
     may serve on the board of directors of such credit union.''.

     SEC. 111. ENCOURAGING SMALL BUSINESS DEVELOPMENT IN 
                   UNDERSERVED URBAN AND RURAL COMMUNITIES.

       Section 107A(c)(1)(B) of the Federal Credit Union Act (12 
     U.S.C. 1757a(c)(1)(B)) is amended--
       (1) by striking ``or'' after the semicolon at the end of 
     clause (iv);
       (2) by redesignating clause (v) as clause (vi); and
       (3) by inserting after clause (iv) the following new 
     clause:
       ``(v) that is made to a member, the proceeds of which are 
     to be used for commercial, corporate, business, farm or 
     agricultural purposes in an underserved area if such 
     extension of credit--

       ``(I) is made to a person or organization whose principal 
     residence or place of business is located within an 
     underserved area (as defined in section 101(10)) served by 
     the credit union, and is not a business, or a local outlet of 
     a business, operating on a nationwide basis (for purposes of 
     the preceding clause, a locally-owned franchise that consists 
     only of local operations shall not be treated as a business 
     operating on a nationwide basis); or
       ``(II) is secured by real property located within, or is 
     intended to operate as part of a business located within, 
     such underserved area; or''.

                TITLE II--SAVINGS ASSOCIATION PROVISIONS

     SEC. 201. RESTATEMENT OF AUTHORITY FOR FEDERAL SAVINGS 
                   ASSOCIATIONS TO INVEST IN SMALL BUSINESS 
                   INVESTMENT COMPANIES.

       Subparagraph (D) of section 5(c)(4) of the Home Owners' 
     Loan Act (12 U.S.C. 1464(c)(4)) is amended to read as 
     follows:
       ``(D) Small business investment companies.--Any Federal 
     savings association may invest in 1 or more small business 
     investment companies, or in any entity established to invest 
     solely in small business investment companies formed under 
     the Small Business Investment Act of 1958, except that the 
     total amount of investments under this subparagraph may not 
     at any time exceed the amount equal to 5 percent of capital 
     and surplus of the savings association.''.

     SEC. 202. REMOVAL OF LIMITATION ON INVESTMENTS IN AUTO LOANS.

       (a) In General.--Section 5(c)(1) of the Home Owners' Loan 
     Act (12 U.S.C. 1464(c)(1)) is amended by adding at the end 
     the following new subparagraph:
       ``(V) Auto loans.--Loans and leases for motor vehicles 
     acquired for personal, family, or household purposes.''.
       (b) Technical and Conforming Amendment Relating to 
     Qualified Thrift Investments.--Section 10(m)(4)(C)(ii) of the 
     Home Owners' Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii)) is 
     amended by adding at the end the following new subclause:

       ``(VIII) Loans and leases for motor vehicles acquired for 
     personal, family, or household purposes.''.

     SEC. 203. REPEAL OF QUALIFIED THRIFT LENDER REQUIREMENT WITH 
                   RESPECT TO OUT-OF-STATE BRANCHES.

       Section 5(r)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(r)(1)) is amended by striking the last sentence.

     SEC. 204. SMALL BUSINESS AND OTHER COMMERCIAL LOANS.

       (a) Elimination of Lending Limit on Small Business Loans.--
     Section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(c)(1)) is amended by inserting after subparagraph (V) 
     (as added by section 202(a) of this title) the following new 
     subparagraph:
       ``(W) Small business loans.--Small business loans, as 
     defined in regulations which the Director shall prescribe.''.
       (b) Increase in Lending Limit on Other Business Loans.--
     Section 5(c)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 
     1464(c)(2)(A)) is amended by striking ``, and amounts in 
     excess of 10 percent'' and all that follows through ``by the 
     Director''.

     SEC. 205. INCREASE IN LIMITS ON COMMERCIAL REAL ESTATE LOANS.

       Section 5(c)(2)(B)(i) of the Home Owners' Loan Act (12 
     U.S.C. 1464(c)(2)(B)(i)) is amended by striking ``400 
     percent'' and inserting ``500 percent''.

     SEC. 206. SAVINGS ASSOCIATION CREDIT CARD BANKS.

       Section 10(a)(1)(A) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(1)(A)) is amended by inserting ``and such term does 
     not include an institution described in section 2(c)(2)(F) of 
     the Bank Holding Company Act of 1956 for purposes of 
     subsections (a)(1)(E), (c)(3)(B)(i), (c)(9)(C)(i), and 
     (e)(3)'' before the period at the end.

                      TITLE III--NOTICE PROVISIONS

     SEC. 301. EXCEPTION TO ANNUAL PRIVACY NOTICE REQUIREMENT 
                   UNDER THE GRAMM-LEACH-BLILEY ACT.

       Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) 
     is amended by adding the following new subsections:
       ``(c) Exception to Annual Notice Requirement.--A financial 
     institution that--
       ``(1) provides nonpublic personal information only in 
     accordance with the provisions of subsection (b)(2) or (e) of 
     section 502 or regulations prescribed under section 504(b);
       ``(2) does not share information with affiliates under 
     section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act; 
     and
       ``(3) has not changed its policies and practices with 
     regard to disclosing nonpublic personal information from the 
     policies and practices that were disclosed in the most recent 
     disclosure sent to consumers in accordance with this 
     subsection,

     shall not be required to provide an annual disclosure under 
     this subsection until such time as the financial institution 
     fails to comply with any criteria described in paragraph (1), 
     (2), or (3).
       ``(d) Exception to Notice Requirement.--A financial 
     institution shall not be required to provide any disclosure 
     under this section if--
       ``(1) the financial institution is licensed by a State and 
     is subject to existing regulation of consumer confidentiality 
     that prohibits disclosure of nonpublic personal information 
     without knowing and expressed consent of the consumer in the 
     form of laws, rules, or regulation of professional conduct or 
     ethics promulgated either by the court of highest appellate 
     authority or by the principal legislative body or regulatory 
     agency or body of any State of the United States, the 
     District of Columbia, any territory of the United States, 
     Puerto Rico, Guam, American Samoa, the Trust Territory of the 
     Pacific Islands, the Virgin Islands, or the Northern Mariana 
     Islands; or
       ``(2) the financial institution is licensed by a State and 
     becomes subject to future regulation of consumer 
     confidentiality that prohibits disclosure of nonpublic 
     personal information without knowing and expressed consent of 
     the consumer in the form of laws, rules, or regulation of 
     professional conduct or ethics promulgated either by the 
     court of highest appellate authority or by the principal 
     legislative body or regulatory agency or body of any State of 
     the United States, the District of Columbia, any territory of 
     the United States, Puerto Rico, Guam, American Samoa, the 
     Trust Territory of the Pacific Islands, the Virgin Islands, 
     or the Northern Mariana Islands.''.

                      TITLE IV--BUSINESS CHECKING

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Business Checking Fairness 
     Act of 2008''.

     SEC. 402. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED 
                   FOR ALL BUSINESSES.

       Section 2 of Public Law 93-100 (12 U.S.C. 1832) is 
     amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Notwithstanding any other provision of law, any 
     depository institution may permit the owner of any deposit or 
     account which is a deposit or account on which interest or 
     dividends are paid and is not a deposit or account described 
     in subsection (a)(2) to make up to 24 transfers per month (or 
     such greater number as the Board of Governors of the Federal 
     Reserve System may determine by rule or order), for any 
     purpose, to another account of the owner in the same 
     institution. An account offered pursuant to this subsection 
     shall be considered a transaction

[[Page 13537]]

     account for purposes of section 19 of the Federal Reserve Act 
     unless the Board of Governors of the Federal Reserve System 
     determines otherwise.''.

     SEC. 403. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.

       (a) Repeal of Prohibition on Payment of Interest on Demand 
     Deposits.--
       (1) Federal reserve act.--Section 19(i) of the Federal 
     Reserve Act (12 U.S.C. 371a) is amended to read as follows:
       ``(i) [Repealed]''.
       (2) Home owners' loan act.--The first sentence of section 
     5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C. 
     1464(b)(1)(B)) is amended by striking ``savings association 
     may not--'' and all that follows through ``(ii) permit any'' 
     and inserting ``savings association may not permit any''.
       (3) Federal deposit insurance act.--Section 18(g) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended 
     to read as follows:
       ``(g) [Repealed]''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect at the end of the 2-year period beginning 
     on the date of the enactment of this Act.

     SEC. 404. RULES OF CONSTRUCTION.

       In the case of an escrow account maintained at a depository 
     institution for the purpose of completing the settlement of a 
     real estate transaction--
       (1) the absorption, by the depository institution, of 
     expenses incidental to providing a normal banking service 
     with respect to such escrow account;
       (2) the forbearance, by the depository institution, from 
     charging a fee for providing any such banking function; and
       (3) any benefit which may accrue to the holder or the 
     beneficiary of such escrow account as a result of an action 
     of the depository institution described in subparagraph (1) 
     or (2) or similar in nature to such action, including any 
     benefits which have been so determined by the appropriate 
     Federal regulator,

     shall not be treated as the payment or receipt of interest 
     for purposes of this title and any provision of Public Law 
     93-100, the Federal Reserve Act, the Home Owners' Loan Act, 
     or the Federal Deposit Insurance Act relating to the payment 
     of interest on accounts or deposits at depository 
     institutions. No provision of this title shall be construed 
     so as to require a depository institution that maintains an 
     escrow account in connection with a real estate transaction 
     to pay interest on such escrow account or to prohibit such 
     institution from paying interest on such escrow account. No 
     provision of this title shall be construed as preempting the 
     provisions of law of any State dealing with the payment of 
     interest on escrow accounts maintained in connection with 
     real estate transactions.

     SEC. 405. CONSUMER BANKING COSTS ASSESSMENT.

       (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et 
     seq.) is amended--
       (1) by redesignating sections 30 and 31 as sections 31 and 
     32, respectively; and
       (2) by inserting after section 29 the following new 
     section:

     ``SEC. 30. SURVEY OF BANK FEES AND SERVICES.

       ``(a) Biennial Survey Required.--The Board of Governors of 
     the Federal Reserve System shall obtain biennially a sample, 
     which is representative by type and size of the institution 
     (including small institutions) and geographic location, of 
     the following retail banking services and products provided 
     by insured depository institutions and insured credit unions 
     (along with related fees and minimum balances):
       ``(1) Checking and other transaction accounts.
       ``(2) Negotiable order of withdrawal and savings accounts.
       ``(3) Automated teller machine transactions.
       ``(4) Other electronic transactions.
       ``(b) Minimum Survey Requirement.--The biennial survey 
     described in subsection (a) shall meet the following minimum 
     requirements:
       ``(1) Checking and other transaction accounts.--Data on 
     checking and transaction accounts shall include, at a 
     minimum, the following:
       ``(A) Monthly and annual fees and minimum balances to avoid 
     such fees.
       ``(B) Minimum opening balances.
       ``(C) Check processing fees.
       ``(D) Check printing fees.
       ``(E) Balance inquiry fees.
       ``(F) Fees imposed for using a teller or other institution 
     employee.
       ``(G) Stop payment order fees.
       ``(H) Nonsufficient fund fees.
       ``(I) Overdraft fees.
       ``(J) Fees imposed in connection with bounced-check 
     protection and overdraft protection programs.
       ``(K) Deposit items returned fees.
       ``(L) Availability of no-cost or low-cost accounts for 
     consumers who maintain low balances.
       ``(2) Negotiable order of withdrawal accounts and savings 
     accounts.--Data on negotiable order of withdrawal accounts 
     and savings accounts shall include, at a minimum, the 
     following:
       ``(A) Monthly and annual fees and minimum balances to avoid 
     such fees.
       ``(B) Minimum opening balances.
       ``(C) Rate at which interest is paid to consumers.
       ``(D) Check processing fees for negotiable order of 
     withdrawal accounts.
       ``(E) Fees imposed for using a teller or other institution 
     employee.
       ``(F) Availability of no-cost or low-cost accounts for 
     consumers who maintain low balances.
       ``(3) Automated teller transactions.--Data on automated 
     teller machine transactions shall include, at a minimum, the 
     following:
       ``(A) Monthly and annual fees.
       ``(B) Card fees.
       ``(C) Fees charged to customers for withdrawals, deposits, 
     and balance inquiries through institution-owned machines.
       ``(D) Fees charged to customers for withdrawals, deposits, 
     and balance inquiries through machines owned by others.
       ``(E) Fees charged to noncustomers for withdrawals, 
     deposits, and balance inquiries through institution-owned 
     machines.
       ``(F) Point-of-sale transaction fees.
       ``(4) Other electronic transactions.--Data on other 
     electronic transactions shall include, at a minimum, the 
     following:
       ``(A) Wire transfer fees.
       ``(B) Fees related to payments made over the Internet or 
     through other electronic means.
       ``(5) Other fees and charges.--Data on any other fees and 
     charges that the Board of Governors of the Federal Reserve 
     System determines to be appropriate to meet the purposes of 
     this section.
       ``(6) Federal reserve board authority.--The Board of 
     Governors of the Federal Reserve System may cease the 
     collection of information with regard to any particular fee 
     or charge specified in this subsection if the Board makes a 
     determination that, on the basis of changing practices in the 
     financial services industry, the collection of such 
     information is no longer necessary to accomplish the purposes 
     of this section.
       ``(c) Biennial Report to Congress Required.--
       ``(1) Preparation.--The Board of Governors of the Federal 
     Reserve System shall prepare a report of the results of each 
     survey conducted pursuant to subsections (a) and (b) of this 
     section and section 136(b)(1) of the Consumer Credit 
     Protection Act.
       ``(2) Contents of the report.--In addition to the data 
     required to be collected pursuant to subsections (a) and (b), 
     each report prepared pursuant to paragraph (1) shall include 
     a description of any discernible trend, in the Nation as a 
     whole, in a representative sample of the 50 States (selected 
     with due regard for regional differences), and in each 
     consolidated metropolitan statistical area (as defined by the 
     Director of the Office of Management and Budget), in the cost 
     and availability of the retail banking services, including 
     those described in subsections (a) and (b) (including related 
     fees and minimum balances), that delineates differences 
     between institutions on the basis of the type of institution 
     and the size of the institution, between large and small 
     institutions of the same type, and any engagement of the 
     institution in multistate activity.
       ``(3) Submission to the congress.--The Board of Governors 
     of the Federal Reserve System shall submit an biennial report 
     to the Congress not later than June 1, 2009, and before the 
     end of each 2-year period beginning after such date.
       ``(d) Definitions.--For purposes of this section, the term 
     `insured depository institution' has the meaning given such 
     term in section 3 of the Federal Deposit Insurance Act, and 
     the term `insured credit union' has the meaning given such 
     term in section 101 of the Federal Credit Union Act.''.
       (b) Conforming Amendment.--
       (1) In general.--Paragraph (1) of section 136(b) of the 
     Truth in Lending Act (15 U.S.C. 1646(b)(1)) is amended to 
     read as follows:
       ``(1) Collection required.--The Board shall collect, on a 
     semiannual basis, from a broad sample of financial 
     institutions which offer credit card services, credit card 
     price and availability information including--
       ``(A) the information required to be disclosed under 
     section 127(c);
       ``(B) the average total amount of finance charges paid by 
     consumers; and
       ``(C) the following credit card rates and fees:
       ``(i) Application fees.
       ``(ii) Annual percentage rates for cash advances and 
     balance transfers.
       ``(iii) Maximum annual percentage rate that may be charged 
     when an account is in default.
       ``(iv) Fees for the use of convenience checks.
       ``(v) Fees for balance transfers.
       ``(vi) Fees for foreign currency conversions.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on January 1, 2009.
       (c) Repeal of Other Report Provisions.--Section 1002 of 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 and section 108 of the Riegle-Neal Interstate Banking 
     and Branching Efficiency Act of 1994 are hereby repealed.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from

[[Page 13538]]

Pennsylvania (Mr. Kanjorski) and the gentleman from California (Mr. 
Royce) each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania.


                             General Leave

  Mr. KANJORSKI. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks as to this legislation and to insert extraneous material 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. KANJORSKI. Mr. Speaker, I yield myself 4\1/2\ minutes.
  Mr. Speaker, I rise today in strong support of H.R. 6312. This bill 
will make a number of statutory improvements in the laws concerning 
credit unions, banks and thrifts. It will also help consumers assist 
businesses, ease paperwork burdens and promote economic development in 
underserved communities.
  In developing this bill, we have sought to identify an appropriate 
balance between competing interests. I am especially pleased that this 
legislation contains a number of important provisions affecting credit 
unions. Some of these provisions have previously passed the House, 
including the sections concerning the treatment of loans made by credit 
unions to nonprofit religious organizations, the authority of credit 
unions to invest in high-grade securities and the governance of credit 
unions.
  The bill also contains a number of new provisions based on the 
proposals first set out in the Credit Union Regulatory Improvements 
Act, or CURIA. The inclusion of these provisions in this bill is an 
important step forward in our legislative debates about how best to 
ensure that credit unions can better serve their members.
  One provision found in CURIA and contained in this bill we are now 
considering will permit all Federal credit unions, regardless of 
charter type, to expand services to eligible communities that the 
Treasury Department determines meets income, unemployment and other 
distress criteria. This change fixes a drafting error made nearly a 
decade ago when the Congress passed H.R. 1151, the Credit Union 
Membership Access Act.
  Like CURIA, we also make in this bill important and sensible 
modifications to the definition of an ``underserved area.'' Moreover, 
the legislation will allow credit unions to help underserved 
communities in two other important ways:
  First, at the request of the chairman of the Financial Services 
Committee, it will permit credit unions to provide short-term, 
unsecured loans to anyone in their field of membership. Second, it will 
exempt loans made to small businesses operating in underserved areas, 
in census tracts, from the existing member business lending caps. 
Together, these two provisions will help to promote economic 
development and will provide a stable source of funds for businesses 
and individuals.
  Another provision in this bill that permits financial institutions to 
pay interest on business checking accounts will also help small 
business growth. I have worked for more than a decade on this issue, 
and have previously introduced legislation to implement the 
recommendations first made by regulators in 1996.
  Before closing, Mr. Speaker, I want to thank several of my colleagues 
for their assistance in bringing this legislation forward today: The 
gentleman from Massachusetts (Mr. Frank) provided essential guidance 
and assistance in developing this legislative product. Additionally, 
the gentleman from California (Mr. Royce) has stood with me for 5 years 
as we have worked on a bipartisan basis to update the laws governing 
credit unions. I am grateful for his support. The gentleman from Kansas 
(Mr. Moore) also provided important contributions to the package before 
us, especially regarding the reduction of paperwork burdens and the 
collection of needed information about consumer banking services and 
costs.
  In sum, Mr. Speaker, this bill will help credit unions to provide 
better services and to promote economic growth in underdeveloped areas. 
Moreover, H.R. 6312 is, without question, the most significant piece of 
credit union legislation considered in the House in nearly a decade. 
H.R. 6312 will also appropriately ease regulatory burdens but will 
still protect the interests of consumers. It also addresses some of the 
concerns of banks and thrifts.
  Because it is a balanced product, I urge all of my colleagues to 
support H.R. 6312.
  I reserve the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  I rise also in support of this legislation. This is the Credit Union, 
Bank and Thrift Regulatory Relief Act that we have before us.
  As our capital markets continue to change and continue to evolve, the 
regulatory model overseeing our financial institutions must adjust as 
well. This legislation today is a small example of this effort to 
improve the regulatory structure overseeing the banks and the credit 
unions and the thrifts. By reducing the regulatory burdens, H.R. 6312 
allows credit unions and banks and thrifts to devote more resources 
toward better servicing their customers and toward better serving those 
who use these institutions.
  Since the 108th Congress, as Mr. Kanjorski mentioned, he and I have 
coauthored the Credit Union Regulatory Improvements Act in an effort to 
modernize the regulatory model overseeing America's credit unions. We 
have made tremendous strides over the years. That bill, which is called 
CURIA now, has the support of 150 Members of this Chamber, and while 
today's legislation may not go as far as some would like, it is 
important that we not let the perfect be the enemy of the good. The 
Credit Union, Bank and Thrift Regulatory Relief Act has several 
worthwhile provisions which deserve consideration.
  Among other things, this measure clarifies the intent of the Credit 
Union Membership Access Act, which is that all federally chartered 
credit unions should be allowed to serve underserved areas around the 
country. By increasing the field of membership and by exempting member 
business loans made in these underserved areas, this provision will 
allow credit unions to extend credit to these areas. Following a 
hearing in the Financial Services Committee, this provision was 
adjusted to ensure those areas that benefit are, indeed, underserved.
  Additionally, this bill would support the community development work 
of nonprofit religious institutions by excluding such loans from credit 
union business lending caps. I introduced legislation to do just this 
back in 2003 with the intent of closing a longstanding liquidity gap 
between creditors and nonprofit organizations.
  I believe the other major provisions contained in CURIA and which are 
not in today's legislation are important, and I believe they should not 
be forgotten. In particular, I am going to continue to push to 
modernize the capital requirements for our credit unions because we 
must replace the current one-size-fits-all leverage capital requirement 
with a more rigorous, two-part, net worth structure that will more 
closely monitor actual asset risk. This will put credit unions' capital 
requirements on par with those of other FDIC-insured institutions.
  One hundred fifty Members of this Congress have signed on to CURIA, 
and it will remain the ultimate objective for those of us trying to 
bring the regulatory structure of overseeing credit unions into the 
21st century.
  Today's legislation joins regulatory relief for credit unions with 
improvements geared towards thrifts and towards banks. Representative 
Moore's reg relief bill, much of which has been incorporated into this 
measure, will remove several unnecessary regulatory burdens faced by 
these financial institutions, allowing them to better serve their 
customers.
  Among other things, the bill provides savings institutions with 
greater lending flexibility by removing limits on small business and on 
auto loans. The bill also increases the ability of savings associations 
to invest in small business investment companies and to

[[Page 13539]]

make commercial real estate loans. Furthermore, this measure 6312 
authorizes banks and thrifts to pay interest on business checking 
accounts for their customers.
  Again, I would like to thank Chairman Kanjorski, and I would like to 
thank Representative Moore for their work on this legislation. This 
bill is an important step toward removing some of the unnecessary 
regulatory burdens placed on our Nation's financial institutions.
  I have no further speakers on this side, and I yield back the balance 
of my time.
  Mr. KANJORSKI. I yield 5 minutes to the gentleman from Kansas (Mr. 
Moore).
  Mr. MOORE of Kansas. I thank my friend, Mr. Kanjorski, for yielding 
me time.
  I also want to congratulate Mr. Kanjorski and Mr. Royce on their hard 
work in crafting a bipartisan bill to provide reg relief to credit 
unions.
  As you know, the legislation before us today combines important 
provisions from credit union regulatory relief legislation previously 
introduced by Mr. Kanjorski and Mr. Royce with provisions from my 
legislation H.R. 5841, the Bank and Thrift Regulatory Relief Act of 
2008.
  At a time when many businesses are having difficulty obtaining access 
to credit, H.R. 5841 will provide important credit opportunities for 
small- and medium-sized businesses. Among other provisions, this 
legislation would remove the existing limits on small business lending 
for thrifts, thereby enhancing the role of savings associations as 
community leaders. The Homeowners Loan Act currently caps the aggregate 
amount of commercial loans other than small business loans at 10 
percent of a savings association's assets, and it permits commercial 
lending, including small business lending, of up to 20 percent of 
assets.
  According to the Small Business Administration's Office of Advocacy, 
smaller businesses have experienced difficulty in obtaining relatively 
small loans from large commercial banks that set minimum loan amounts 
relatively high. Savings associations are increasingly important 
providers of small business credit and communities throughout the 
country.
  This change, Mr. Chairman, will allow savings associations to 
continue to serve their small business customers and to further 
diversify their assets while also providing businesses with greater 
choice and flexibility to meet their credit needs.
  Additionally, this proposal will significantly reduce the amount of 
time financial institutions spend filling out paperwork, and it will 
free up resources for the thousands of institutions on the front lines 
of community lending.
  For example, the legislation would provide relief to community banks 
and financial institutions from requirements under the Gramm-Leach-
Bliley Act to provide annual privacy notices to their customers, 
detailing their privacy policies and the way they share information.
  While I have consistently advocated for increased protection of 
sensitive financial information, there should be targeted exemptions 
from this requirement to relieve the burden from small banks that do 
not share information with their affiliates and that have not otherwise 
changed their privacy policies.

                              {time}  2015

  This change, Mr. Speaker, will save small businesses millions of 
dollars in compliance costs while also protecting consumers from 
unnecessary and duplicative notices.
  The legislation also contains important provisions that would repeal 
the prohibition against the payment of interest on business checking. 
This prohibition was enacted during the Depression as part of the 
Banking Act of 1933, to protect banks in the heat of competition from 
offering interest levels on deposit balances that might be sustained 
through risky investments.
  In their 1996 report ``Streamlining of Regulatory Requirements,'' the 
Federal banking regulators concluded, however, that the statutory 
prohibition against paying interest on business accounts no longer 
serves a valid public purposes. For example, large financial services 
companies have devised products, such as ``sweep accounts'' that, in 
effect, provide interest on deposit accounts, giving them a competitive 
advantage over small community banks that may not have the capability 
to offer such accounts.
  In addition, most small business owners don't have the minimum 
balances necessary to maintain a sweep account so they are forced to 
keep vital cash in zero-interest checking accounts. Making this small 
change would make a huge difference for small businesses.
  Furthermore, every provision in this bill providing regulatory relief 
for banks and thrifts has been approved previously by Congress in one 
form or another. The bipartisan support for this bill shows just how 
important it is for both businesses and consumers that Congress pass 
this meaningful legislation.
  America's financial services industry is the most effective and 
competitive in the world and my proposal will help us stay out in 
front. Reducing regulatory burdens on businesses and consumers is 
simply the right thing to.
  Mr. Speaker, I thank Chairman Kanjorski and the staff, and I look 
forward to passage of this legislation today.
  Mr. KANJORSKI. Mr. Speaker, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Altmire).
  Mr. ALTMIRE. I thank the gentleman.
  Mr. Speaker, there are over 90 million members of America's credit 
unions, including more than 168,000 in the district I represent. Each 
of them will benefit from passage of this bill, which I strongly 
support. It is a bipartisan piece of legislation that is an excellent 
first step towards improving the regulatory framework for our Nation's 
credit unions and banks.
  Credit unions serve a broad and diverse membership, including many 
low and moderate-income individuals who would otherwise be unable to 
access the services provided by financial institutions. This bill will 
allow Federal credit unions to better serve consumers and provide them 
with greater access to financial products and services.
  I ask my colleagues to support this commonsense and long-overdue 
legislation.
  Mr. KANJORSKI. Mr. Speaker, I yield to the gentleman from Kansas (Mr. 
Moore) who wishes to enter into a colloquy.
  Mr. MOORE of Kansas. As one of the cosponsors of this legislation, I 
would like to engage its primary sponsor, you, Mr. Kanjorski, in a 
colloquy on two questions related to section 111. This section concerns 
the encouragement of small business development in underserved urban 
and rural communities.
  First, I have a question about the meaning of the provision that 
exempts business loans made by credit unions in underserved areas from 
the existing cap on member business lending. Is it the intent of this 
provision that the proceeds from exempt loans will be used to support 
business operations inside underserved areas?
  Mr. KANJORSKI. Yes, the provision would exempt from the cap those 
loans that are used to support business operations in an underserved 
area in order to stimulate economic growth in these areas.
  Mr. MOORE of Kansas. Thank you, Mr. Kanjorski, for that 
clarification.
  Section 111 of the bill also includes language that member business 
loans in an underserved area underwritten by a credit union for a 
business, or a local outlet of a business, operating on a nationwide 
basis, shall not be eligible from exemption from the business lending 
cap.
  It is the phrase ``operating on a nationwide basis'' where I have a 
question. For the purpose of this section, it would seem that a 
business located in an underserved area that meets the other criteria, 
like a small family-owned business but which has a Web site that sells 
their goods to anyone who visits it, would not be treated as a business 
operated on a nationwide basis for the purpose of this section, as the 
economic benefit from those sales is going to that business in the 
underserved area.
  Have I correctly characterized the intent of this section?

[[Page 13540]]


  Mr. KANJORSKI. Yes, you have. As the title of the section indicates, 
the intent of this section is to promote economic growth by encouraging 
small business development in underserved urban and rural communities. 
We want to help businesses and business owners that have a presence 
there, like a mom-and-pop operation with an Internet store. Moreover, 
we have taken steps in the legislation to ensure that a locally owned 
franchise that consists only of local operations shall not be treated 
as a business operating on a nationwide basis.
  Mr. MOORE of Kansas. Thank you for this clarification, Mr. Kanjorski. 
I agree with your assessments.
  Ms. WATERS. Mr. Speaker, I rise in strong support of H.R. 6312, The 
Credit Union, Bank, and Thrift Regulatory Relief Act of 2008. I am 
particularly pleased to speak in favor of this legislation because I 
have always been a strong supporter of credit unions. These 
institutions have been effective in pursuit of their mission to serve 
people of modest means and underserved communities, both of which 
characterize much of my district. Regulatory improvement in this 
industry is long overdue and I want to thank Mr. Kanjorski and Mr. 
Moore for their work on this bill.
  Credit union regulatory relief is especially urgent in light of the 
nation's current financial crisis. We are either at the brink of a 
recession--or already in one--largely because of the crisis in the 
subprime mortgage market that has led to a wave of foreclosures unlike 
any since the Great Depression. In significant part, this crisis 
resulted from certain financial institutions, many of them largely 
unregulated, peddling dangerous mortgage loan products to borrowers who 
did not fully understand the risk they were taking on. Meanwhile, the 
lenders themselves whisked their own risk to the four corners of the 
earth via securitization and the secondary market. Much of the 
Financial Services Committee's work in the past year has involved 
working to enact legislation that prevents this from ever happening 
again.
  Notably, credit unions did not help to create this mess. Indeed, 
analysis of 2006 home mortgage disclosure data reveals that credit 
unions were far less likely than other lenders to make subprime loans 
to low and moderate income households, especially minorities.
  So credit unions were not part of the problem. But they can and must 
be part of the solution. If there is any lesson to be learned from this 
crisis, it is that low or moderate income households and residents of 
underserved communities don't just need access to any credit, but 
rather access to sound and appropriate financial products. Credit 
unions stand ready to provide such products to more people and more 
communities, but need Congressional action to do so. Specifically, H.R. 
6312 would allow credit unions to extend their services to areas with 
high unemployment rates and below median incomes that are generally 
underserved by other depository institutions.
  Critically, it would also allow some people who don't belong to a 
local credit union nonetheless to go to that credit union for short 
term loans, as an alternative to the exorbitant rates charged by payday 
lenders. This is progress in achieving the outcome policymakers must 
pursue in the financial services sector, namely, connecting households 
of modest means with the soundest financial products and institutions 
available to them.
  I urge my colleagues to support this bill.
  Mr. KANJORSKI. Mr. Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Pennsylvania (Mr. Kanjorski) that the House suspend the 
rules and pass the bill, H.R. 6312.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________