A bill to authorize a grant program to provide for expanded access to mainstream financial institutions.

Summary: Improving Access to Mainstream Financial Institutions Act of 2008 - Authorizes the Secretary of the Treasury to award grants, including multi-year grants, to specified eligible entities to establish an account in a federally insured depository institution for low- and moderate-income individuals who currently do not have such an account. Includes among such eligible entities: (1) Alaska Native Corporations; (2) Native Hawaiian organizations; and (3) labor organizations.

Authorizes the Secretary to award demonstration project grants to eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly, predatory payday loans. Requires such entities to be: (1) tax-exempt charitable organizations; (2) federally insured depository institutions; (3) community development financial institutions; or (4) partnerships comprised of one or more of such entities. Requires grant recipients to offer financial literacy and education opportunities to each consumer provided with a loan pursuant to this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Access to Mainstream 
Financial Institutions Act of 2008''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Alaska native corporation.--The term ``Alaska Native 
        Corporation'' has the same meaning as the term ``Native 
        Corporation'' under section 3(m) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(m)).
            (2) Community development financial institution.--The term 
        ``community development financial institution'' has the same 
        meaning as in section 103(5) of the Community Development 
        Banking and Financial Institutions Act of 1994 (12 U.S.C. 
        4702(5)).
            (3) Federally insured depository institution.--The term 
        ``federally insured depository institution'' means any insured 
        depository institution (as that term is defined in section 3 of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813)) and any 
        insured credit union (as that term is defined in section 101 of 
        the Federal Credit Union Act (12 U.S.C. 1752)).
            (4) Labor organization.--The term ``labor organization'' 
        means an organization--
                    (A) in which employees participate;
                    (B) which exists for the purpose, in whole or in 
                part, of dealing with employers concerning grievances, 
                labor disputes, wages, rates of pay, hours of 
                employment, or conditions of work; and
                    (C) which is described in section 501(c)(5) of the 
                Internal Revenue Code of 1986.
            (5) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' means any organization that--
                    (A) serves and represents the interests of Native 
                Hawaiians; and
                    (B) has as a primary and stated purpose, the 
                provision of services to Native Hawaiians.
            (6) Payday loan.--The term ``payday loan'' means any 
        transaction in which a small cash advance is made to a consumer 
        in exchange for--
                    (A) the personal check or share draft of the 
                consumer, in the amount of the advance plus a fee, 
                where presentment or negotiation of such check or share 
                draft is deferred by agreement of the parties until a 
                designated future date; or
                    (B) the authorization of the consumer to debit the 
                transaction account or share draft account of the 
                consumer, in the amount of the advance plus a fee, 
                where such account will be debited on or after a 
                designated future date.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (8) Tribal organization.--The term ``tribal organization'' 
        has the same meaning as in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).

SEC. 3. EXPANDED ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS.

    (a) Establishment of Program.--The Secretary is authorized to award 
grants, including multi-year grants, to eligible entities to establish 
an account in a federally insured depository institution for low- and 
moderate-income individuals that currently do not have such an account.
    (b) Eligible Entities.--An entity is eligible to receive a grant 
under this section, if such an entity is--
            (1) an organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986, and is exempt from taxation 
        under section 501(a) of such Code;
            (2) a federally insured depository institution;
            (3) an agency of a State or local government;
            (4) a community development financial institution;
            (5) an Indian tribal organization;
            (6) an Alaska Native Corporation;
            (7) a Native Hawaiian organization;
            (8) a labor organization; or
            (9) a partnership comprised of 1 or more of the entities 
        described in the preceding subparagraphs.
    (c) Evaluation and Reports to Congress.--For each fiscal year in 
which a grant is awarded under this section, the Secretary shall submit 
a report to Congress containing a description of the activities funded, 
amounts distributed, and measurable results, as appropriate and 
available.

SEC. 4. LOW COST ALTERNATIVES TO PAYDAY LOANS.

    (a) Establishment of Program.--The Secretary is authorized to award 
demonstration project grants (including multi-year grants) to eligible 
entities to provide low-cost, small loans to consumers that will 
provide alternatives to more costly, predatory payday loans.
    (b) Eligible Entities.--An entity is eligible to receive a grant 
under this section if such an entity is--
            (1) an organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from tax under section 
        501(a) of such Code;
            (2) a federally insured depository institution;
            (3) a community development financial institution; or
            (4) a partnership comprised of 1 or more of the entities 
        described in paragraphs (1) through (3).
    (c) Terms and Conditions.--
            (1) Percentage rate.--For purposes of this section, an 
        eligible entity that is a federally insured depository 
        institution shall be subject to the annual percentage rate 
        promulgated by the National Credit Union Administration's Loan 
        Interest Rates under part 701 of title 12, Code of Federal 
        Regulations (or any successor thereto), in connection with a 
        loan provided to a consumer pursuant to this section.
            (2) Financial literacy and education opportunities.--Each 
        eligible entity awarded a grant under this section shall offer 
        financial literacy and education opportunities, such as 
        relevant counseling services or educational courses, to each 
        consumer provided with a loan pursuant to this section.
    (d) Evaluation and Reports to Congress.--For each fiscal year in 
which a grant is awarded under this section, the Secretary shall submit 
a report to Congress containing a description of the activities funded, 
amounts distributed, and measurable results, as appropriate and 
available.

SEC. 5. PROCEDURAL PROVISIONS.

    (a) Applications.--A person desiring a grant under section 3 or 4 
shall submit an application to the Secretary, in such form and 
containing such information as the Secretary may require.
    (b) Limitation on Administrative Costs.--A recipient of a grant 
under section 3 or 4 may use not more than 6 percent of the total 
amount of such grant in any fiscal year for the administrative costs of 
carrying out the programs funded by such grant in such fiscal year.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary, such sums 
as are necessary to carry out the grant programs authorized by this 
Act, to remain available until expended.

SEC. 7. REGULATIONS.

    The Secretary is authorized to promulgate regulations to implement 
and administer the grant programs authorized by this Act.