To authorize the President to establish an advisory commission to study the merger of the BIF and SAIF funds and the implications for the banking and thrift industries of such a merger.

sense of the congress

    Section 1. It is the sense of the Congress that--
            (1) while there have been massive governmental efforts and 
        expenditure of funds to complete the resolution of the thrift 
        crisis and despite improvement in the condition of most 
        segments of the thrift industry, there is a risk that the 
        structure of the deposit insurance funds since FIRREA could 
        undermine even the healthiest segments of the thrift industry 
        by impeding their ability to compete and precipitating another 
        costly crisis in that industry. The structural issues involve--
                    (a) the presence of two separate insurance funds, 
                the BIF and SAIF funds;
                    (b) the projected, substantial disparity in deposit 
                insurance premiums to be paid by BIF and SAIF members 
                and the potential for a competitive imbalance;
                    (c) the presence of a designated reserve ratio of 
                1.25 percent of insured deposits for BIF and SAIF 
                funds; and
                    (d) the effect which existing debt obligations have 
                on the ability of the SAIF fund to accumulate reserves 
                and to become fiscally sound.
            (2) to ensure the continued availability of housing credit 
        and to avoid another costly crisis in the thrift industry as a 
        result of some of these structural impediments involving the 
        FIRREA-mandated separate fund concept, an Advisory Commission 
        shall be formed to advise the President and the Congress on the 
        viability of merging or maintaining the separation of the 
        deposit insurance funds and the impact of such action on the 
        health of the BIF and SAIF funds, the confidence of depositors 
        in the federal deposit insurance system, and the regulation of 
        and competitive balance between banks and thrifts.

                establishment of an advisory commission

    Sec. 2. There is hereby established an Advisory Commission to be 
known as the Advisory Commission on BIF and SAIF funds (thereafter 
referred to as the ``Advisory Commission'').
    (a) Membership of the Advisory Commission.--
            (1) Number and appointment.--The Advisory Commission shall 
        be composed of 7 members appointed no later than ninety days 
        after the date of the enactment of this Act. The members shall 
        be appointed as follows:
                    (A) Two citizens of the United States appointed by 
                the President.
                    (B) One citizen of the United States appointed by 
                the President pro tempore of the Senate upon the 
                recommendation of the majority leader of the Senate.
                    (C) One citizen of the United States appointed by 
                the President pro tempore of the Senate upon the 
                recommendation of the minority leader of the Senate.
                    (D) One citizen of the United States appointed by 
                the Speaker of the House upon the recommendation of the 
                majority leader of the House of Representatives.
                    (E) One citizen of the United States appointed by 
                the Speaker of the House upon the recommendation of the 
                minority leader of the House of Representatives.
                    (F) The Secretary of the Treasury or his designate.
            (2) Additional qualifications.--
                    (A) In general.--Members of the Advisory Commission 
                who are appointed under any subparagraph of paragraph 
                (1) shall be appointed from among individuals who are 
                specially qualified to serve on the Advisory Commission 
                by virtue of their education, training, or experience.
                    (B) Limitation.--Of the total number of members of 
                the Advisory Commission who are described in 
                subparagraph (A), not more than one such member may be, 
                at the time of any such member's appointment and during 
                any such member's service on the Advisory Commission--
                            (i) a director, officer, or employee of any 
                        savings association;
                            (ii) a director, officer, or employee of 
                        any bank; or
                            (iii) a director, officer, employee or 
                        agent of any consumer organization.
            (3) Terms.--Members shall be appointed for the life of the 
        Advisory Commission.
            (4) Chairperson.--The chairperson of the Advisory 
        Commission shall be the Secretary of the Treasury or his 
        designate.
            (5) Quorum.--A majority of the members of the Advisory 
        Commission shall constitute a quorum for the transaction of 
        business.
            (6) Voting.--Each member of the Advisory Commission shall 
        be entitled to 1 vote, which shall be equal to the vote of 
        every other member of the Advisory Commission.
            (7) Vacancies.--No vacancy on the Advisory Commission shall 
        affect the powers of the Advisory Commission and any such 
        vacancy shall be filled in the manner in which the original 
        appointment was made.
            (8) Compensation and expenses.--
                    (A) No basic pay.--Except as provided in 
                subparagraph (B), members of the Advisory Commission 
                shall receive no additional pay, allowances, or 
                benefits by reason of their service on the Advisory 
                Commission.
                    (B) Per diem and travel expenses.--Members of the 
                Advisory Commission who are appointed from among 
                private citizens of the United States may be allowed 
                travel expenses, including per diem, in lieu of 
                substance, as authorized by law for persons serving 
                intermittently in the government service to the extent 
                that funds are available for such purposes.
            (9) Meetings.--The Advisory Commission shall meet at the 
        call of the Chairperson or a majority of the members.
    (b) Functions of the Advisory Commission.--
            (1) Contents and specific recommendations.--The Advisory 
        Commission shall conduct an investigation and evaluation of and 
        shall report and make recommendations on the future status of 
        the deposit insurance system.
            (2) Issues to be considered.--Pursuant to its 
        responsibilities under this section the Advisory Commission 
        shall consider the following issues:
                    (A) An analysis of whether a deposit insurance 
                premium disparity between banks and thrifts is likely 
                and the competitive impact thereof.
                    (B) The practical justification for maintaining two 
                separate Federal deposit funds.
                    (C) The impact on the soundness of the Federal 
                deposit insurance system by the continuation of a 
                separate insurance fund for banks and savings 
                associations.
                    (D) Whether a merger of the Bank Insurance Fund and 
                Savings Association Insurance Fund can be accomplished 
                in a manner which is equitable and the legal and 
                structural impediments which need to be addressed in 
                such a merger.
                    (E) The timing of a merger of the two funds, should 
                such occur.
                    (F) Whether the designated ratio of reserves of 
                1.25 per centum of insured deposits, which must now be 
                held by each deposit insurance fund, is appropriate in 
                light of current and future needs and considerations.
                    (G) The impact of any remaining regulatory 
                differences between banks and thrifts on the soundness 
                of a merged fund.
                    (H) The impact of a fund merger on a consolidation 
                of the bank and thrift regulatory agencies.
            (3) Final report.--
                    (A) Report required.--Not later than the end of the 
                one-year period beginning on the date of the enactment 
                of this Act, the Advisory Commission shall submit to 
                the President, the Committee on Banking, Finance and 
                Urban Affairs of the House of Representatives, and the 
                Committee on Banking, Housing and Urban Affairs of the 
                Senate, a final report which contains a detailed 
                statement of the findings and conclusions of the 
                Advisory Board, including such recommendations for 
                administrative and legislative action as the Advisory 
                Commission determines to be appropriate.
                    (B) Majority vote.--A recommendation may be made by 
                the Advisory Commission to the President and to the 
                Congress only if it is adopted by a majority of the 
                members of the Advisory Commission.
                    (C) Additional, dissenting, and supplemental 
                views.--The report required under subparagraph (A) 
                shall contain any additional, dissenting, or 
                supplemental views of any member of the Advisory 
                Commission.
    (c) Powers of the Advisory Board.--
            (1) Hearings.--The Advisory Commission may hold such 
        hearings and sit and act at such times and places as the 
        Advisory Commission may find advisable.
            (2) Rules and regulations.--The Advisory Commission may 
        adopt such rules and regulations as may be necessary to 
        establish its procedures and to govern the manner of 
        operations, organizations, and personnel.
            (3) Assistance from federal agencies.--
                    (A) Information.--The Advisory Commission may 
                request from the head of any Federal agency or 
                instrumentality such information as the Advisory 
                Commission may require for the purpose of this section. 
                Each such agency or instrumentality shall furnish such 
                information to the Advisory Commission upon request 
                made by the Chairperson of the Advisory Commission.
                    (B) Administrative support services and 
                personnel.--Upon request of the Chairperson of the 
                Advisory Commission, the head of any Federal agency or 
                instrumentality shall, to the extent possible and 
                subject to the discretion of such head--
                            (i) make any of the facilities and services 
                        of such agency or instrumentality available to 
                        the Advisory Commission; and
                            (ii) detail any of the personnel of such 
                        agency or instrumentality to the Advisory 
                        Commission, on a nonreimbursable basis, to 
                        assist the Advisory Commission in carrying out 
                        its duties under this section, except that any 
                        expenses of the Advisory Commission incurred 
                        under this clause shall be subject to the 
                        limitation on total expenses set forth in 
                        subsection (d)(2).
            (4) Mails.--The Advisory Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other Federal agencies.
            (5) Contracting.--The Advisory Commission may, to such 
        extent and in such amounts as provided in advance in 
        appropriation Acts, enter into contracts with State agencies, 
        private firms, institutions, and individuals for the purpose of 
        conducting research or surveys necessary to enable the Advisory 
        Commission to discharge its duties under this section, subject 
        to the limitation on total expenses set forth in subsection 
        (d)(2).
            (6) Staff.--
                    (A) In general.--Subject to such rules and 
                regulations as may be adopted by the Advisory 
                Commission and the limitation on total expenses set 
                forth in subsection (e)(2), the Chairperson of the 
                Advisory Commission may appoint, terminate, and fix the 
                compensation of an executive director and such 
                additional staff as the Chairperson deems advisable to 
                assist the Advisory Commission.
                    (B) Pay rates.--Individuals appointed under 
                subparagraph (A) may be paid at rates not to exceed a 
                rate equal to the maximum rate for GS-18 of the General 
                Schedule under section 5332 of title 5, United States 
                Code.
                    (C) Certain provisions of title 5, united states 
                code, not applicable.--Appointments may be made under 
                subparagraph (A) without regard to--
                            (i) provisions of title 5, United States 
                        Code, concerning appointments in the 
                        competitive service, and
                            (ii) provisions of chapter 51 and 
                        subchapter III of chapter 53 of such title, or 
                        of any other provision of law relating to 
                        number, classification, and General Schedule 
                        rates.
            (7) Advisory committee.--The Advisory Commission shall be 
        considered an advisory committee under the Federal Advisory 
        Committee Act.
    (d) Expenses of Advisory Board.--
            (1) In general.--Any expense of the Advisory Commission 
        shall be paid from such funds as may be available to the 
        Secretary of the Treasury.
            (2) Limitation.--The total expenses of the Advisory 
        Commission shall not exceed $500,000.
            (3) GAO audit.--Prior to the termination of the Advisory 
        Commission pursuant to subsection (f), the Comptroller General 
        of the United States shall conduct an audit of the financial 
        books and records of the Advisory Commission to determine that 
        the limitation on expenses under paragraph (2) has not been 
        exceeded, and shall include its determination in an opinion to 
        be included in the report of the Advisory Commission.
    (e) Termination of the Advisory Commission.--The Advisory 
Commission shall cease to exist on the date that is thirty days after 
the date on which the Advisory Commission submits the report required 
under subsection (b)(3).

Summary: Expresses the sense of the Congress with respect to the continued availability of housing credit and the avoidance of a thrift industry crisis caused by specified structural impediments involving a separate fund concept mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Establishes the Advisory Commission on BIF and SAIF Funds to investigate and advise the President and the Congress on: (1) the viability of merging or maintaining the separation of the deposit insurance funds, and (2) the future status of the deposit insurance system.