39–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 109–38 

EXPANDED ACCESS TO FINANCIAL SERVICES ACT OF 

2005 

APRIL 12, 2005.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. OXLEY, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 749] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 749) to amend the Federal Credit Union Act to provide 

expanded access for persons in the field of membership of a Federal 

credit union to money order, check cashing, and money transfer 

services, having considered the same, report favorably thereon with 

an amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Committee Votes ...................................................................................................... 3 

Committee Oversight Findings ............................................................................... 3 

Performance Goals and Objectives ......................................................................... 3 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 3 

Committee Cost Estimate ....................................................................................... 3 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 4 

Advisory Committee Statement .............................................................................. 4 

Constitutional Authority Statement ...................................................................... 5 

Applicability to Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 5 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

2 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Expanded Access to Financial Services Act of 2005’’. 

SEC. 2. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE FIELD OF 

MEMBERSHIP. 

Paragraph (12) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757(12)) 

is amended to read as follows: 

‘‘(12) in accordance with regulations prescribed by the Board— 

‘‘(A) to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer 

instruments (including international and domestic electronic fund transfers); and 

‘‘(B) to cash checks and money orders and receive international and domestic electronic fund transfers for persons in the field of membership for 

a fee;’’. 

PURPOSE AND SUMMARY

H.R. 749 amends the Federal Credit Union Act (12 U.S.C. 

1757(12)) to permit federal credit unions to offer check cashing and 

money transfer services to non-members of the credit union as long 

as the individual is within the credit union’s field of membership. 

The bill is designed to lower the costs paid by consumers for these 

services through increased competition in the marketplace. 

BACKGROUND AND NEED FOR LEGISLATION

The past decade has witnessed aggressive outreach by both the 

public and private sectors to groups that have historically chosen 

to conduct their financial affairs outside the traditional banking 

system. Although estimates vary, studies indicate that as many as 

10 million American households do not have bank accounts. In addition, many Americans lack the basic tools for managing their 

money and making wise financial choices. Many banks and credit 

unions have partnered with community-based non-profit organizations to increase the availability of basic banking accounts and financial products for low and moderate-income consumers. Among 

financial regulators, the focus has been on facilitating access by 

historically underserved groups to mainstream financial services, 

and on increasing awareness among consumers of the benefits of 

doing business with federally insured, highly-regulated institutions. 

H.R. 749 promotes outreach to the ‘‘unbanked’’ by allowing credit 

unions to offer low-cost financial products and services to individuals who are within a credit union’s field of membership but not 

yet members. This will also provide credit unions an opportunity 

to establish relationships with ‘‘unbanked’’ members of the community, many of whom are recent immigrants, and empower them 

with the knowledge and tools necessary to open a personal account 

with a mainstream financial institution. 

According to the Pew Hispanic Center and Multilateral Investment Fund, money transfers by individuals living and working in 

the U.S. back to Latin America, currently estimated at $10 billion 

annually, should more than double—to $25 billion—by 2010. These 

so-called ‘‘remittances’’ have traditionally been executed through 

money transfer companies such as Western Union, but are increasingly being offered by depository institutions. Hearings held by the 

Committee during the 108th Congress yielded evidence that over 

the past four years, competition from banks and credit unions offering money transfer services has substantially reduced remittance 

costs for consumers. The average cost today of sending $300 to 

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Mexico is $13–$14, or 4–5% of the amount sent, compared to the 

average cost four years ago, which was between $30–$32, or 10– 

11%. H.R. 749 addresses the explosive growth of the remittance 

market by expanding the ability of credit unions to meet the evergrowing demand for these services, which should have the ancillary 

benefit of bringing more consumers into the financial mainstream. 

HEARINGS

No hearings were held on this legislation in the 109th Congress. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

March 16, 2005, and ordered H.R. 749 reported to the House, as 

amended, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. No record votes were 

taken with in conjunction with the consideration of this legislation. 

A motion by Mr. Oxley to report the bill to the House with a favorable recommendation was agreed to by a voice vote. 

The Committee considered the following amendment: 

An amendment by Mr. Baca, clarifying international and domestic application, was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has previously held hearings 

and made findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

The bill is intended to lower costs paid by consumers for check 

cashing and money transfer services by permitting federal credit 

unions to offer these services. This goal will be achieved by 

enchanced competition in the marketplace. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that this legislation 

would result in no new budget authority, entitlement authority, or 

tax expenditures or revenues. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

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CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, April 1, 2005. 

Hon. MICHAEL G. OXLEY, Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 749, the Expanded Access 

to Financial Services Act of 2005. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Kathleen Gramp. 

Sincerely, 

ELIZABETH M. ROBINSON

(For Douglas Holtz-Eakin, Director). 

Enclosure. 

H.R. 749—Expanded Access to Financial Services Act of 2005 

H.R. 749 would amend current law to allow federal credit unions 

to offer services to nonmembers under certain conditions. Nonmembers would have to pay a fee for the services and would have to 

otherwise be eligible for membership in the credit union. The types 

of services authorized would include domestic and international 

money transfers, money orders, check cashing, and travelers 

checks. 

Based on information from the National Credit Union Administration (NCUA), CBO estimates that the cost of implementing this 

bill would not be significant. The NCUA charges fees to cover its 

administrative costs, so any additional spending would have no net 

effect on direct spending. Enacting this bill would have no effect on 

revenues. 

H.R. 749 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Kathleen Gramp. This 

estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

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CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional 

Authority of Congress to enact this legislation is provided by Article 1, section 8, clause 1 (relating to the general welfare of the 

United States) and clause 3 (relating to the power to regulate interstate commerce). 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section provides the short title of the bill, the ‘‘Expanded Access to Financial Services Act of 2005’’. 

Section 2. Check cashing and money transfer services offered within 

the field of membership 

Section 2 amends Paragraph (12) of section 107 of the Federal 

Credit Union Act (12 U.S.C. 1757(12)) to allow federal credit unions 

to sell negotiable checks, money orders, and other similar transfer 

instruments, including international and domestic electronic fund 

transfers, to anyone eligible for membership, regardless of their 

membership status. Under current law, a credit union is only authorized to provide such services to those who are already members. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

SECTION 107 OF THE FEDERAL CREDIT UNION ACT 

POWERS

SEC. 107. A Federal credit union shall have succession in its corporate name during its existence and shall have power— 

(1) * * * 

* * * * * * * 

ø(12) in accordance with rules and regulations prescribed by 

the Board, to sell to members negotiable checks (including 

travelers checks), money orders, and other similar money 

transfer instruments, and to cash checks and money orders for 

members, for a fee;¿ 

(12) in accordance with regulations prescribed by the Board— 

(A) to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, 

6 

and other similar money transfer instruments (including 

international and domestic electronic fund transfers); and 

(B) to cash checks and money orders and receive international and domestic electronic fund transfers for persons 

in the field of membership for a fee; 

* * * * * * * 

Æ