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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10542 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10542

To amend the Federal Deposit Insurance Act and the Federal Credit Union 
  Act to authorize a temporary transaction account guarantee program, 
expand deposit and share insurance to cover business payment accounts, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2024

  Ms. Waters introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Deposit Insurance Act and the Federal Credit Union 
  Act to authorize a temporary transaction account guarantee program, 
expand deposit and share insurance to cover business payment accounts, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employee Paycheck and Small Business 
Protection Act''.

SEC. 2. EXPANDED INSURANCE COVERAGE FOR BUSINESS PAYMENT ACCOUNTS.

    (a) Insured Depository Institutions.--
            (1) In general.--Section 11(a) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(a)) is amended--
                    (A) in paragraph (1)(B), by striking ``The net 
                amount'' and inserting ``Except as provided in 
                paragraph (6), the net amount''; and
                    (B) by adding at the end the following:
            ``(6) Expanded insurance coverage for business payment 
        accounts.--
                    ``(A) Insurance required.--Notwithstanding 
                paragraph (1), the Corporation shall establish a 
                program under which the Corporation shall fully insure 
                the deposits that any depositor at an insured 
                depository institution maintains in a covered 
                transaction account in accordance with subparagraph 
                (B).
                    ``(B) Amount.--The Corporation may only provide 
                insurance for deposits under subparagraph (A) in an 
                amount of net deposits up to $100,000,000 per depositor 
                per depository institution.
                    ``(C) Exclusion from net amount of insured 
                deposits.--Any amount of deposits insured under this 
                paragraph shall not be taken into account when 
                computing the net amount due to such depositor under 
                paragraph (1)(B).
                    ``(D) Covered transaction account defined.--In this 
                paragraph, the term `covered transaction account' means 
                a deposit or account maintained at an insured 
                depository institution--
                            ``(i) by a business, non-profit, 
                        municipality, or similar organization;
                            ``(ii) used predominantly for transactions, 
                        including payroll payments, vendor payments, 
                        and any other regular payments made to support 
                        the work or mission of the account holder; and
                            ``(iii) that is non-interest bearing or 
                        that pays interest materially below prevailing 
                        market rates, as determined by the 
                        Corporation.''.
            (2) Applicability.--The amendments made by this subsection 
        shall apply with respect to a covered transaction account (as 
        defined in paragraph (6)(D) of section 11(a) of the Federal 
        Deposit Insurance Act, as added by this section) on the date of 
        the issuance of a final rule described in subsection (d).
    (b) Credit Unions.--
            (1) In general.--Section 207(k) of the Federal Credit Union 
        Act (12 U.S.C. 1787(k)) is amended--
                    (A) in paragraph (1)(A), by inserting ``and except 
                as provided in paragraph (7)'' after ``paragraph (2)''; 
                and
                    (B) by adding at the end the following:
            ``(7) Expanded insurance coverage for business payment 
        accounts.--
                    ``(A) Insurance required.--Notwithstanding 
                paragraph (1), the Board shall establish a program 
                under which the Board shall fully insure the deposits 
                or shares in members accounts of an insured credit 
                union that are covered transaction accounts in 
                accordance with subparagraph (B).
                    ``(B) Amount.--The Board may only provide insurance 
                under subparagraph (A) in an amount of the net deposits 
                or shares up to $100,000,000 per member per insured 
                credit union.
                    ``(C) Exclusion from net amount of insured deposits 
                or shares.--Any amount of deposits or shares insured 
                under this paragraph shall not be taken into account 
                when computing the net amount due under paragraph 
                (1)(A).
                    ``(D) Covered transaction account defined.--In this 
                paragraph, the term `covered transaction account' means 
                a deposit, share, or account maintained at an insured 
                credit union--
                            ``(i) by a business, non-profit, 
                        municipality, or similar organization;
                            ``(ii) used predominantly for transactions, 
                        including payroll payments, vendor payments, 
                        and any other regular payments made to support 
                        the work or mission of the account holder; and
                            ``(iii) that is non-interest bearing or 
                        that pays interest materially below prevailing 
                        market rates, as determined by the Board.''.
            (2) Applicability.--The amendments made by this subsection 
        shall apply with respect to a covered transaction account (as 
        defined in section 207(k)(7)(D) of the Federal Credit Union 
        Act, as added by this section) on the date of the issuance of a 
        final rule described in subsection (d).
    (c) Data Collection and Analysis.--
            (1) In general.--
                    (A) FDIC.--Not later than 90 days after the date of 
                the enactment of this Act, the Federal Deposit 
                Insurance Corporation shall begin collecting and 
                analyzing data from insured depository institutions to 
                establish requirements for the program established 
                under paragraph (6) of section 11(a) of the Federal 
                Deposit Insurance Act, as added by this Act, including 
                to determine the eligibility of covered transaction 
                accounts and the amount of deposits to be insured under 
                such program, as appropriate.
                    (B) NCUA.--Not later than 90 days after the date of 
                the enactment of this Act, the National Credit Union 
                Administration Board shall begin collecting and 
                analyzing data from insured credit unions to establish 
                requirements for the program established under 
                paragraph (7) of section 207(k) of the Federal Credit 
                Union Act, as added by this Act, including to determine 
                the eligibility of covered transaction accounts and the 
                amount of deposits or shares to be insured under such 
                program, as appropriate.
            (2) Elements.--In establishing the eligibility of covered 
        transaction accounts and the amount of deposits or shares to be 
        insured as described in paragraph (1), the Federal Deposit 
        Insurance Corporation and the National Credit Union 
        Administration Board, respectively, shall consider the 
        following:
                    (A) The eligibility of covered transaction accounts 
                and the maximum insurance amount for such deposits or 
                shares to promote safety and soundness of insured 
                depository institutions and insured credit unions, as 
                applicable.
                    (B) The eligibility of covered transaction accounts 
                and the maximum insurance amount for such deposits or 
                shares to promote stability of the financial system of 
                the United States.
                    (C) The eligibility of covered transaction accounts 
                and the maximum insurance amount for such deposits or 
                shares to promote a competitive depository market 
                structure that, as applicable, includes--
                            (i) minority depository institutions (as 
                        defined in section 308 of the Financial 
                        Institutions Reform, Recovery, and Enforcement 
                        Act of 1989) and minority insured credit 
                        unions;
                            (ii) rural depository institutions and 
                        rural insured credit unions;
                            (iii) depository institutions and credit 
                        unions that are community development financial 
                        institutions (as defined in section 103(5) of 
                        the Riegle Community Development and Regulatory 
                        Improvement Act of 1994); and
                            (iv) other large, small, and medium-sized 
                        insured depository institutions and insured 
                        credit unions.
                    (D) The eligibility of covered transaction accounts 
                and the maximum insurance amount for such deposits or 
                shares to ensure holders of covered transaction 
                accounts would be able to meet payment obligations in a 
                timely fashion, including payroll and vendor payment 
                obligations.
                    (E) The expected effect of assessment or premium 
                adjustments on insured depository institutions and 
                insured credit unions, as applicable.
            (3) Publication.--Not later than 18 months after the date 
        of the enactment of this Act, the Federal Deposit Insurance 
        Corporation and the National Credit Union Administration Board 
        shall--
                    (A) make publicly available a report with detailed 
                analyses conducted under this subsection, including 
                aggregated data; and
                    (B) make available to the Committee on Financial 
                Services of the House of Representatives and Committee 
                on Banking, Housing, and Urban Affairs of the Senate 
                the data collected under this subsection.
    (d) Rulemaking.--
            (1) Proposed rulemaking.--
                    (A) In general.--Not later than 18 months after the 
                date of the enactment of this Act, the Federal Deposit 
                Insurance Corporation and the National Credit Union 
                Administration Board shall each issue a proposed rule 
                to carry out the requirements of this section and the 
                amendments made by this section.
                    (B) Additional requirements.--The Federal Deposit 
                Insurance Corporation and the National Credit Union 
                Administration Board shall consult with the Board of 
                Governors of the Federal Reserve System and the 
                Comptroller of the Currency before issuing a proposed 
                rule required under subparagraph (A).
                    (C) Testimony.--The Chairperson of the Federal 
                Deposit Insurance Corporation and the Chairman of the 
                National Credit Union Administration Board shall 
                testify before the Financial Services Committee of the 
                House of Representatives and Committee on Banking, 
                Housing, and Urban Affairs of the Senate, at a time 
                determined by the Chairs of those Committees that is 
                after the date on which the proposed rule described in 
                subparagraph (A) is issued.
            (2) Final rulemaking.--
                    (A) In general.--Not later than 30 months after the 
                date of the enactment of this Act, the Federal Deposit 
                Insurance Corporation and the National Credit Union 
                Administration Board shall each issue a final rule to 
                carry out the requirements of this section and the 
                amendments made by this section.
                    (B) Joint determinations required.--Each rule 
                described under subparagraph (A) shall contain the 
                following, which shall be jointly determined by the 
                Federal Deposit Insurance Corporation and the National 
                Credit Union Administration Board:
                            (i) A definition of the term ``deposits'' 
                        and ``deposits or shares'' that applies to both 
                        programs.
                            (ii) A maximum insurance amount for 
                        deposits or shares held in a covered 
                        transaction account that applies to both 
                        programs.
            (3) Failure to issue a final rule.--If the Federal Deposit 
        Insurance Corporation or the National Credit Union 
        Administration Board do not issue a final rule required under 
        paragraph (2) before the deadline described in that paragraph--
                    (A) the Chair of each agency failing to issue a 
                final rule shall--
                            (i) testify before the Committee on 
                        Financial Services of the House of 
                        Representatives and Committee on Banking, 
                        Housing, and Urban Affairs of the Senate 
                        regarding the reasons why the agency has not 
                        yet issued a final rule; and
                            (ii) submit a report to such Committees 
                        that includes--
                                    (I) an assessment of the benefits 
                                and challenges posed by expanding 
                                deposit or share insurance as required, 
                                as applicable, under the program 
                                established under paragraph (6) of 
                                section 11(a) of the Federal Deposit 
                                Insurance Act (as added by this Act) 
                                and the program established under 
                                paragraph (7) of section 207(k) of the 
                                Federal Credit Union Act (as added by 
                                this Act); and
                                    (II) any recommendations for 
                                administrative or legislative 
                                modifications;
                    (B) the Comptroller General of the United State 
                shall conduct a review of the reports required under 
                subsection (c), along with any other relevant data, and 
                submit to Congress a report on--
                            (i) the benefits and challenges posed by--
                                    (I) the program established under 
                                paragraph (6) of section 11(a) of the 
                                Federal Deposit Insurance Act, as added 
                                by this Act; and
                                    (II) the program established under 
                                paragraph (7) of section 207(k) of the 
                                Federal Credit Union Act, as added by 
                                this Act; and
                            (ii) any recommendations for legislative or 
                        regulatory actions.
    (e) Extension of Deposit Insurance Fund and National Credit Union 
Share Insurance Fund Restoration Plans.--A Deposit Insurance Fund 
restoration plan (as defined under section 7(b)(3)(E) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(b)(3)(E))) or a restoration plan 
for the National Credit Union Share Insurance Fund (as described in 
section 202(c)(2)(D) of the Federal Credit Union Act (12 U.S.C. 
1782(c)(2)(D))) in effect on the date of the enactment of this Act 
shall be extended for a period of 8 years beginning on the effective 
date of a final rule issued by the applicable agency pursuant to 
subsection (d).

SEC. 3. TEMPORARY TRANSACTION ACCOUNT GUARANTEE PROGRAM.

    (a) Insured Depository Institutions.--Section 13 of the Federal 
Deposit Insurance Act (12 U.S.C. 1823) is amended by adding at the end 
the following:
    ``(l) Insurance of Certain Uninsured Deposits To Preserve Financial 
Stability.--
            ``(1) Establishment of program framework.--The Corporation 
        shall, by rule, establish a framework for a Temporary 
        Transaction Account Guarantee Program (the `Program') under 
        which the Corporation fully insures the net amount any 
        depositor at an insured depository institution maintains in a 
        covered transaction account for a single period not to exceed 
        180 days.
            ``(2) Implementation.--The Corporation may implement the 
        Program only if, upon the written recommendation of the Board 
        of Directors (upon a vote of not less than two-thirds of the 
        members of the Board of Directors) and the Board of Governors 
        of the Federal Reserve System (upon a vote of not less than 
        two-thirds of the members of such Board), the Secretary of the 
        Treasury (in consultation with the President) determines that 
        the failure to implement the program would have serious adverse 
        effects on financial stability or economic conditions in the 
        United States.
            ``(3) Eligibility.--An insolvent insured depository 
        institution is not eligible to be enrolled in the Program.
            ``(4) Funding.--In implementing the Program, the 
        Corporation may--
                    ``(A) establish assessments on insured depository 
                institutions that participate in the Program; and
                    ``(B) use amounts available in the Deposit 
                Insurance Fund.
            ``(5) Extension.--The Corporation may extend the period 
        described in paragraph (2) for an additional 90 days if--
                    ``(A) the Board of Directors (upon a vote of not 
                less than two-thirds of the members of the Board of 
                Directors), the Board of Governors of the Federal 
                Reserve System (upon a vote of not less than two-thirds 
                of the members of such Board), and the Secretary (in 
                consultation with the President) determines that the 
                failure to extend such program would have serious 
                adverse effects on financial stability or economic 
                conditions in the United States; and
                    ``(B) the Secretary of the Treasury submits to 
                Congress a report containing data and analysis, 
                including data and analysis from the Board of Directors 
                and the Board of Governors of the Federal Reserve 
                System, justifying such extension.
            ``(6) Testimony.--Not later than 45 days after any 
        implementation of the Program, the Chairperson of the Board of 
        Directors, the Chairman of the Board of Governors of the 
        Federal Reserve System, and the Secretary of the Treasury shall 
        provide testimony to the Committee on Financial Services 
        Committee of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate describing 
        the data, analysis, and justification for implementing the 
        Program.
            ``(7) GAO report.--Not later than 90 days after any 
        implementation of the Program, the Comptroller General of the 
        United States shall submit to Congress a report describing the 
        implementation of the Program.
            ``(8) Covered transaction account defined.--In this 
        subsection, the term `covered transaction account' means a 
        transaction account that is non-interest bearing or that pays 
        interest materially below prevailing market rates, as 
        determined by the Corporation.
            ``(9) Termination.--
                    ``(A) In general.--Any implementation of the 
                Program shall terminate not later than 270 days after 
                the date of implementation unless the Board of 
                Directors (upon a vote of not less than two-thirds of 
                the members of the Board of Directors) and the Board of 
                Governors of the Federal Reserve System (upon a vote of 
                not less than two-thirds of the members of such Board) 
                submits to the Secretary of the Treasury a written 
                recommendation to not terminate the program, and--
                            ``(i) the Secretary of the Treasury--
                                    ``(I) submits to Congress a report 
                                containing data and analysis to justify 
                                not terminating the Program that 
                                includes data and analysis from the 
                                Board of Directors and the Board of 
                                Governors of the Federal Reserve 
                                System; and
                                    ``(II) requests approval from 
                                Congress to extend the Program for a 
                                specified period of time; and
                            ``(ii) a joint resolution of approval is 
                        enacted to extend the Program.
                    ``(B) Procedures for joint resolution of 
                approval.--The procedures provided for congressional 
                consideration of a joint resolution under section 
                1105(d) of the Dodd-Frank Wall Street Reform and 
                Consumer Protection Act shall apply to a joint 
                resolution of approval described under subparagraph 
                (A)(ii).''.
    (b) Insured Credit Unions.--Section 207 of the Federal Credit Union 
Act (12 U.S.C. 1787) is amended by adding at the end the following:
    ``(s) Insurance of Certain Uninsured Deposits To Preserve Financial 
Stability.--
            ``(1) In general.--The National Credit Union Administration 
        Board may establish a program under which the Board fully 
        insures the net amount in member accounts of an insured credit 
        union that are covered transaction accounts for a single period 
        not to exceed 180 days if, upon the written recommendation of 
        such Board (upon a vote of not less than two-thirds of the 
        members of such Board) and the Board of Governors of the 
        Federal Reserve System (upon a vote of not less than two-thirds 
        of the members of such Board), the Secretary of the Treasury 
        (in consultation with the President) determines that the 
        failure to establish such program would have serious adverse 
        effects on financial stability or economic conditions in the 
        United States.
            ``(2) Eligibility.--An insolvent insured credit union is 
        not eligible to be enrolled in a program established under this 
        subsection.
            ``(3) Funding.--To carry out a program under this 
        subsection, the Board may--
                    ``(A) establish assessments on insured credit 
                unions that participate in such a program; and
                    ``(B) use amounts available in the Fund.
            ``(4) Extension.--The National Credit Union Administration 
        Board may extend the period described in paragraph (1) for an 
        additional 90 days if--
                    ``(A) the National Credit Union Administration 
                Board (upon a vote of not less than two-thirds of the 
                members of such Board), the Board of Governors of the 
                Federal Reserve System (upon a vote of not less than 
                two-thirds of the members of such Board), and the 
                Secretary of the Treasury (in consultation with the 
                President) determines that the failure to extend such 
                program would have serious adverse effects on financial 
                stability or economic conditions in the United States; 
                and
                    ``(B) the Secretary of the Treasury submits to 
                Congress a report containing data and analysis, 
                including data and analysis from the Board of Directors 
                and the Board of Governors of the Federal Reserve 
                System, justifying such extension.
            ``(5) Testimony.--Not later than 45 days after the 
        establishment of a program under this subsection, the Chairman, 
        the Chairman of the Board of Governors of the Federal Reserve 
        System, and the Secretary of the Treasury shall provide 
        testimony to the Committee on Financial Services of the House 
        of Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate describing the data, analysis, and 
        justification for establishing the program under this 
        subsection.
            ``(6) GAO report.--Not later than 90 days after the 
        establishment of a program under this subsection, the 
        Comptroller General of the United States shall submit to 
        Congress a report describing the establishment of such program.
            ``(7) Covered transaction account defined.--In this 
        subsection, the term `covered transaction account' means a 
        transaction account that is non-interest bearing or that pays 
        interest materially below prevailing market rates, as 
        determined by the National Credit Union Administration Board.
            ``(8) Termination.--
                    ``(A) In general.--A program established under this 
                subsection shall terminate not later than 270 days 
                after the date of establishment unless the Board (upon 
                a vote of not less than two-thirds of the members of 
                such Board) and the Board of Governors of the Federal 
                Reserve System (upon a vote of not less than two-thirds 
                of the members of such Board) submits to the Secretary 
                of the Treasury a written recommendation to not 
                terminate the program, and--
                            ``(i) the Secretary of the Treasury--
                                    ``(I) submits to Congress a report 
                                containing data and analysis to justify 
                                not terminating the program that 
                                includes data and analysis from the 
                                Board and the Board of Governors of the 
                                Federal Reserve System; and
                                    ``(II) requests approval from 
                                Congress to extend the program for a 
                                specified period of time; and
                            ``(ii) a joint resolution of approval is 
                        enacted to extend the program.
                    ``(B) Procedures for joint resolution of 
                approval.--The procedures provided for congressional 
                consideration of a joint resolution under section 
                1105(d) of the Dodd-Frank Wall Street Reform and 
                Consumer Protection Act shall apply to a joint 
                resolution of approval described under subparagraph 
                (A)(ii).''.
    (c) Modification to Expedited Procedures.--Section 1105(d) of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 
5612(d)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Consideration in the house of representatives.--Upon 
        receipt of a request under subsection (c), a joint resolution 
        introduced in the House of Representatives in connection with 
        such request shall be privileged.''.
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