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.

Summary: Community Choice in Real Estate Act - Amends the Bank Holding Company Act of 1956, and the Revised Statutes of the United States, to prohibit the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, respectively, from determining that real estate brokerage activity or real estate management activity is financial in nature, is incidental to any financial activity, or is complementary to a financial activity. (In effect, prohibits financial holding companies and national banks from engaging, directly or indirectly, in real estate brokerage or real estate management activities.) Exempts from such prohibition: (1) activities of a bank holding company (or any affiliate) that directly relate to managing any real property owned by national banks or their affiliates; and (2) the right, power, or ability of any financial holding company to engage in any activity, or acquire or retain the shares of any company engaged in an activity authorized for financial holding companies on December 6, 2001 ("grandfather clause").

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, 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.
                    ``(E) Current activities not affected.--No 
                provision of this paragraph, or any determination made 
                pursuant to any such provision, may be construed as 
                prohibiting, restricting, altering, or otherwise 
                affecting, the right, power, or ability of any 
                financial holding company to engage in any activity, or 
                acquire or retain the shares of any company engaged in 
                an activity, if engaging in such activity, or acquiring 
                or retaining such shares, was authorized for financial 
                holding companies on December 6, 2001.''.
    (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.
                    ``(D) Current activities not affected.--No 
                provision of this paragraph, or any determination made 
                pursuant to any such provision, may be construed as 
                prohibiting, restricting, altering, or otherwise 
                affecting, the right, power, or ability of any national 
                bank, or a subsidiary of a national bank, to engage in 
                any activity, or acquire or retain the shares of any 
                company engaged in an activity, if engaging in such 
                activity, or acquiring or retaining such shares, was 
                authorized for national banks, or subsidiaries of 
                national banks, on December 6, 2001.''.