SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable Transaction Account 
Act''.

SEC. 2. AFFORDABLE BANKING SERVICES.

    (a) In General.--Except as otherwise provided in this section, each 
insured depository institution shall make available to consumers a 
consumer transaction account, to be known as an ``affordable 
transaction account'', with the following features to be prescribed 
jointly by the Federal banking agencies, by regulation:
            (1) Initial deposit.--The maximum amount which an insured 
        depository institution may require as an initial deposit, if 
        any.
            (2) Minimum balance.--The maximum amount an insured 
        depository institution may require as a minimum balance, if 
        any, to maintain such account.
            (3) Minimum number of free withdrawals.--A minimum of 8 
        withdrawal transactions, including withdrawals by negotiable or 
        transferable instruments for the purpose of making payments to 
        third parties and electronic fund transfers, during any 
        periodic cycle at no additional charge to the account holder.
            (4) Maximum monthly service charge.--The maximum amount an 
        insured depository institution may charge per periodic cycle 
        for the use of such account.
    (b) Fees for Withdrawal Transactions in Excess of Minimum Number of 
Free Withdrawals.--
            (1) In general.--Subject to paragraph (2), in the case of 
        any affordable transaction account--
                    (A) an insured depository institution may impose a 
                reasonable per-transaction charge for any withdrawal 
                transaction described in subsection (a)(3) other than a 
                transaction required under such subsection to be 
                provided free; or
                    (B) the depository institution may impose the fees 
                and charges normally applied to other consumer 
                transaction accounts available at that depository 
                institution.
            (2) Limitations.--
                    (A) Periodic cycle fee adjustment.--The amount of 
                any charge per periodic cycle imposed by an insured 
                depository institution on any affordable transaction 
                account pursuant to paragraph (1)(B) shall be reduced 
                by the charge imposed under subsection (a)(4).
                    (B) Maximum amount.--At no time shall the total 
                amount of fees and charges imposed by an insured 
                depository institution on any affordable transaction 
                account exceed the total amount of fees and charges 
                that is normally applied to other consumer transaction 
                accounts available at the depository institution.
    (c) Conditions for Opening Any Affordable Transaction Account.--An 
insured depository institution may require as a condition for opening 
or maintaining any affordable transaction account that--
            (1) the holder of the account be a resident of the State in 
        which the account is opened or maintained; and
            (2) the deposits to the account of recurring payments such 
        as Social Security, wage, or pension payments be made by direct 
        deposit if that form of deposit is available to both the 
        consumer and the depository institution.
    (d) Other Terms and Conditions.--
            (1) In general.--Except as provided in this section and any 
        regulations prescribed under this section, any affordable 
        transaction account may be offered by an insured depository 
        institution subject to the same rules, conditions, and terms 
        normally applicable to other consumer transaction accounts 
        offered by the depository institution.
            (2) Prohibition on discrimination against affordable 
        transaction account holders in providing other services.--The 
        amount of any fee or charge imposed on a holder of any 
        affordable transaction account by an insured depository 
        institution for specific services provided to such account 
        holder which are not directly related to the maintenance of 
        such account may not exceed the fee or charge imposed by the 
        depository institution for providing the same services in 
        connection with other consumer transaction accounts offered by 
        the depository institution.
    (e) Affordable Transaction Accounts Not Required for Individuals 
Who Maintain Other Transaction Accounts.--An insured depository 
institution shall not be required to permit any person to open or 
maintain an affordable transaction account pursuant to this section if 
such person maintains another consumer transaction account either at 
that depository institution or any other insured depository 
institution.
    (f) Alternative Arrangements.--In lieu of the affordable 
transaction account required by this section, an insured depository 
institution may make available an alternative form of account or other 
banking services if the appropriate Federal banking agency determines 
that such alternative form of account or services are at least as 
advantageous to consumers as the affordable transaction account.
    (g) Disclosure Requirements.--
            (1) Posted notices.--If an insured depository institution 
        posts in the public area of any office of the institution a 
        notice of the availability of other consumer transaction 
        accounts, the depository institution shall also post equally 
        conspicuous notice in such public area and in the same manner 
        the availability of its affordable transaction accounts.
            (2) Printed material.--If an insured depository institution 
        makes available in the public area of any office of the 
        institution printed material describing the terms of its other 
        consumer transaction accounts, the depository institution shall 
        also make comparable descriptive printed material concerning 
        the affordable transaction accounts available in the same such 
        area and in the same manner.
    (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Consumer transaction account.--For purposes of this 
        section, the term ``consumer transaction account'' means a 
        demand deposit account, negotiable order of withdrawal account, 
        share draft account, or any similar transaction account used 
        primarily for personal, family or household purposes.
            (2) Depository institution.--The term ``depository 
        institution'' has the same meaning has in section 19(b)(1)(A) 
        of the Federal Reserve Act.
            (3) Federal banking agency.--The term ``Federal banking 
        agency''
                    (A) has the same meaning as in section 3(z) of the 
                Federal Deposit Insurance Act; and
                    (B) includes the National Credit Union 
                Administration Board.
            (4) Insured depository institution.--The term ``insured 
        depository institution''--
                    (A) has the same meaning as in section 3(c)(2) of 
                the Federal Deposit Insurance Act; and
                    (B) includes an insured credit union (as defined in 
                section 101(7) of the Federal Credit Union Act.
    (i) Compliance With More Stringent State Law.--If a depository 
institution operates in a State the laws of which, including 
regulations, require a depository institution operating in such State 
to meet requirements for affordable transaction accounts which are more 
advantageous to the consumer than the requirements of this section or 
the regulations prescribed under this section, such depository 
institution may not be treated as a qualified depository institution 
for purposes of section 19(b)(12) of the Federal Reserve Act, unless 
such depository institution meets the requirements of this section and 
the requirements of such State law.
    (j) Rule of Construction.--No provision of this section, title LXII 
of the Revised Statutes of the United States, the Home Owners' Loan 
Act, the Bank Enterprise Act of 1991, the Alternative Mortgage 
Transaction Parity Act of 1982, or any other Federal law may be 
construed as preempting, or providing any basis for the Comptroller of 
the Currency or the Director of the Office of Thrift Supervision to 
conclude that Federal law in any way preempts, the law of any State 
which requires depository institution operating in that State to 
provide affordable transaction accounts, including the Omnibus Consumer 
Protection and Banking Deregulation Act of 1994 of the State of New 
York and the New Jersey Consumer Checking Account Act (as in effect on 
the date of the enactment of this Act).
Prohibits the imposition of fees upon such account holders which are discriminatory in nature. Authorizes alternative account arrangements.
Requires "affordable transaction accounts" to be posted upon the premises in the same manner as the depository institution posts notice of its other account products.
Mandates depository institution compliance with more stringent State law where applicable.
Affordable Transaction Account Act