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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 59 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                 H. R. 59

 To increase the amount of credit available to fuel economic growth by 
 reducing the regulatory burden imposed upon depository institutions, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

 Mr. Bereuter introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
 To increase the amount of credit available to fuel economic growth by 
 reducing the regulatory burden imposed upon depository institutions, 
                        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 ``Depository Institution Burden Relief 
Act of 1993''.

SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) To increase regulatory efficiency by eliminating 
        duplicative and needless regulatory requirements that are 
        unrelated to assuring the safety and soundness of financial 
        institutions.
            (2) To reduce regulatory compliance burdens on capital-
        efficient depository institutions, especially small, community-
        oriented depository institutions, which come in the form of 
        costly software purchases and hiring additional staff solely 
        for regulatory compliance duties.
            (3) To decrease statutory prescription of regulations of 
        financial institutions.
            (4) To increase the bank regulator's supervisory 
        discretion, and thus, increase some flexibility in its 
        examinations of financial institutions.
            (5) To encourage bank regulators to return to a practice of 
        reviewing its regulations and discarding stale ones.
            (6) To ensure that bank attention is focused on complying 
        with regulations that are designed to ensure safe and sound 
        operation of the institutions.
            (7) To reduce regulatory burdens for banks, the cost of 
        which is eventually borne by the public--either by higher cost 
        of services or in terms of less service.
            (8) To ensure that Federal banking agency resources are 
        targeted at those financial institutions operating in areas 
        where banking services are a problem or in dispute.
            (9) To reduce the cost of regulation of the banking 
        industry to the Federal Government.

                      TITLE I--SUPERVISORY REFORMS

SEC. 101. COORDINATION OF FEDERAL AND STATE EXAMINATIONS TO REDUCE 
              DUPLICATIVE EFFORTS.

    (a) Reciprocity for State Examinations.--Section 10(d)(3) of the 
Federal Deposit Insurance Act (12 U.S.C. 1820(d)(3)) (as amended by 
section 111 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991) is amended to read as follows:
            ``(3) State examinations acceptable.--The examination 
        requirement established under paragraph (1) may be satisfied by 
        an examination of the insured depository institution conducted 
        by the appropriate State bank supervisor during the 12-month 
        period if the appropriate Federal banking agency determines 
        that the State examination carries out the purposes of this 
        subsection.''.
    (b) State Coordination With Federal Examinations.--The appropriate 
Federal banking agencies and appropriate State bank supervisors shall, 
to the greatest extent practicable--
            (1) coordinate examinations of insured depository 
        institutions; and
            (2) obtain and use copies of reports of examinations of 
        insured depository institutions made by any other appropriate 
        Federal banking agency or appropriate State bank supervisor.
    (c) Technical and Conforming Amendment.--Section 3(r) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(r)) is amended to read as 
follows:
    ``(r) Appropriate State Bank Supervisor.--The term `appropriate 
State bank supervisor' means any officer, agency, or other entity of 
any State which has primary regulatory authority over State banks or 
State savings associations in such State.''.

SEC. 102. COORDINATION OF FEDERAL AND STATE REPORTING REQUIREMENTS TO 
              REDUCE DUPLICATIVE EFFORTS.

    (a) State Access to Federal Agency Reports.--The 1st sentence of 
section 7(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(2)(A)) is amended by inserting ``and any appropriate State bank 
supervisor'' after ``The Corporation''.
    (b) State Coordination With Federal Reporting Requirements.--The 
Federal banking agencies and State bank supervisors shall, to the 
greatest extent practicable--
            (1) coordinate the number, types, and frequency of reports 
        (as defined in section 44(b)(4) of the Federal Deposit 
        Insurance Act) required to be submitted by insured depository 
        institutions and the type and amount of information required to 
        be included in such reports; and
            (2) obtain and use copies of reports of condition and other 
        reports submitted by such institutions to any such agency or 
        supervisor.

SEC. 103. CONSOLIDATED REPORTS IN THE CASE OF CAPITAL-EFFICIENT 
              DEPOSITORY INSTITUTION SUBSIDIARIES OF DEPOSITORY 
              INSTITUTION HOLDING COMPANIES.

    (a) In General.--The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended by adding at the end the following new section:

``SEC. 44. REPORT AND REGULATORY RELIEF PROVISIONS.

    ``(a) Consolidated Reports Allowed.--Notwithstanding any provision 
of this Act, title LXII of the Revised Statutes, the Federal Reserve 
Act, the Home Owners' Loan Act, or the Bank Holding Company Act of 1956 
or any regulation prescribed under any such law, any provision of any 
such law which requires the submission of any report to any appropriate 
Federal banking agency by any capital-efficient insured depository 
institution which is a subsidiary of a depository institution holding 
company may be satisfied with respect to such depository institution by 
a consolidated report by the holding company which consolidates the 
information required to meet the requirements of such provision with 
respect to each capital-efficient insured depository institution 
subsidiary of the holding company.''.
    (b) Capital-Efficient Insured Depository Institution Defined.--
Section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)) 
is amended by adding at the end the following new paragraph:
            ``(6) Capital-efficient insured depository institution.--
        The term `capital-efficient insured depository institution' 
        means an insured depository institution which--
                    ``(A) is adequately capitalized (as defined in 
                section 38); and
                    ``(B) has a CAMEL composite rating of 1 or 2 under 
                the Uniform Financial Institution Rating System or an 
                equivalent rating under a comparable system.''.

SEC. 104. APPLICABILITY OF CERTAIN REQUIREMENTS RELATING TO EARLY 
              IDENTIFICATION OF NEEDED IMPROVEMENTS.

    Section 36 of the Federal Deposit Insurance Act (12 U.S.C. 1831m) 
is amended by adding at the end the following new subsection:
    ``(k) Applicability to Capital-Efficient Insured Depository 
Institutions.--This section shall not apply with respect to any 
capital-efficient insured depository institution.''.

SEC. 105. REDUCTION IN SUBMISSION OF DUPLICATIVE INFORMATION.

    Section 44 of the Federal Deposit Insurance Act (as added by 
section 5 of this Act) is amended by inserting after subsection (a) the 
following new subsection:
    ``(b) Reduction in Submission of Duplicative Information.--
            ``(1) Describing information previously submitted.--In the 
        case of any information which--
                    ``(A) is required to be included in a report 
                submitted by any insured depository institution to an 
                appropriate Federal banking agency pursuant to any 
                provision of this Act, title LXII of the Revised 
                Statutes, the Federal Reserve Act, the Home Owners' 
                Loan Act, or the Bank Holding Company Act of 1956, or 
                any regulation prescribed under any such law; and
                    ``(B) was included in a report submitted by such 
                institution (before the date of the submission of the 
                report referred to in subparagraph (A)) to such agency 
                or any other Federal banking agency,
        the requirement to include such information in the report 
        referred to in subparagraph (A) shall be deemed to be met if 
        the report contains an explicit reference to the report in 
        which such information was previously included.
            ``(2) Coordination of information requirements.--
                    ``(A) Submission of duplicative information 
                prohibited.--Notwithstanding any provision of this Act, 
                title LXII of the Revised Statutes, the Federal Reserve 
                Act, the Home Owners' Loan Act, or the Bank Holding 
                Company Act of 1956, or any regulation prescribed under 
                any such law, a Federal banking agency may not require 
                the submission by any insured depository institution of 
                information which is available from any other Federal 
                banking agency.
                    ``(B) Consultation required.--The appropriate 
                Federal banking agencies shall consult with each other 
                through the Financial Institutions Examination Council 
                on a regular basis to--
                            ``(i) coordinate the manner in which 
                        information is collected from insured 
                        depository institutions; and
                            ``(ii) ensure compliance with subparagraph 
                        (A) and section 1012 of the Federal Financial 
                        Institutions Examination Council Act of 1978.
            ``(3) Prohibition on requiring the submission of more than 
        1 copy of any report.--A Federal banking agency may not require 
        the submission of more than 1 copy of any report, including any 
        exhibit or other material required to be filed with any report, 
        submitted by any insured depository institution to such agency.
            ``(4) Reports defined.--For purposes of this section, the 
        term `report' includes any application, notice, or other 
        document.''.

SEC. 106. PROHIBITION ON DATA COLLECTION WHICH IS UNRELATED TO SAFETY 
              AND SOUNDNESS.

    (a) Limitation on Data Collection Authority.--Section 44 of the 
Federal Deposit Insurance Act (as added by section 5 of this Act) is 
amended by inserting after subsection (b) (as added by section 7 of 
this Act) the following new subsection:
    ``(c) Prohibition on Data Collection Which Is Not Related to Safety 
and Soundness.--Notwithstanding any other provision of this Act other 
than section 8, an appropriate Federal banking agency may not require 
an insured depository institution to submit any information which is 
not related to--
            ``(1) the safety or soundness of the institution;
            ``(2) the insured deposits of the institution; or
            ``(3) reserve requirements applicable with respect to the 
        institution,
in connection with any report, application, notice or other document 
otherwise authorized or required under this Act.''.
    (b) Repeal of Other Reporting Burdens.--
            (1) Section 122 of the Federal Deposit Insurance 
        Corporation Improvement Act of 1991 is repealed.
            (2) Section 477 of the Federal Deposit Insurance 
        Corporation Improvement Act of 1991 is repealed.

SEC. 107. REDUCTION OF CALL REPORT BURDENS.

    (a) ``Short Form'' Call Report for Capital-Efficient Depository 
Institutions.--Section 44 of the Federal Deposit Insurance Act (as 
added by section 5 of this Act) is amended by inserting after 
subsection (c) (as added by section 8 of this Act) the following new 
subsection:
    ``(d) `Short Form' Call Report.--
            ``(1) In general.--Notwithstanding any provision of this 
        Act, title LXII of the Revised Statutes, the Federal Reserve 
        Act, or the Home Owners' Loan Act, or any regulation prescribed 
        pursuant to any such provision, no capital-efficient insured 
        depository institution shall be required by any appropriate 
        Federal banking agency to include any information in any report 
        of condition submitted by such institution other than the 
        following information:
                    ``(A) Income statement.
                    ``(B) Balance sheet, including risk-based capital.
                    ``(C) Schedule of off-balance sheet items.
            ``(2) Nonapplicability in case of false or misleading 
        reports.--This subsection shall not apply to any insured 
        depository institution which--
                    ``(A) fails to make any report of condition 
                described in paragraph (1) within the period of time 
                required, or submits a false or misleading report of 
                condition during the 10-year period beginning on the 
                date the appropriate Federal banking agency determines 
                that such action or failure to act has occurred, unless 
                the institution demonstrates to the satisfaction of 
                such agency--
                            ``(i) that--
                                    ``(I) the institution maintains 
                                procedures reasonably adapted to avoid 
                                any inadvertent error; and
                                    ``(II) the failure to file the 
                                report within the period of time 
                                required or the submission of a false 
                                or misleading report was unintentional 
                                and a result of such inadvertent error; 
                                or
                            ``(ii) in the case of a report submitted 
                        after the period of time required, that--
                                    ``(I) the report was minimally 
                                late; and
                                    ``(II) the late submission by the 
                                institution was inadvertent; or
                    ``(B) is required by order to file a report of 
                condition.''.
    (b) Repeal of Publication Requirements.--
            (1) The 5th sentence of section 5211(a) of the Revised 
        Statutes (12 U.S.C. 161(a)) is amended by striking ``; and the 
        statement of resources and liabilities in the same form in 
        which it is made to the Comptroller shall be published in a 
        newspaper'' and all that follows through the period and 
        inserting a period.
            (2) Section 5211(c) of the Revised Statutes (12 U.S.C. 
        161(c)) is amended by striking the 5th sentence.
            (3) Section 7(a)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(a)(1)) is amended by striking the 4th sentence.
            (4) The last sentence of the 6th undesignated paragraph of 
        section 9 of the Federal Reserve Act (12 U.S.C. 324) is amended 
        by striking ``and shall be published'' and all that follows 
        through the end of the sentence and inserting a period.
    (c) Reduction of Other Call Report Burdens.--
            (1) In general.--Before the end of the 120-day period 
        beginning on the date of enactment of this Act, each 
        appropriate Federal banking agency shall review the regulatory 
        burden and costs incurred by insured depository institutions in 
        connection with their preparation of reports of condition.
            (2) Factors to be considered.--In conducting the review 
        required under paragraph (1), each agency shall consider all 
        relevant factors that the agency determines to be necessary to 
        correctly determine the extent of the burden and costs, 
        including--
                    (A) the actual dollar cost to insured depository 
                institutions in preparing such reports;
                    (B) the time and resources expended to meet 
                regulatory directives;
                    (C) the frequency with which the agency has 
                modified the types of information required to be 
                reported in such reports and the costs and burdens 
                associated with complying with such modifications;
                    (D) the types of report of condition information 
                required of other types of insured depository 
                institutions by such institutions' appropriate Federal 
                banking agencies; and
                    (E) the extent to which such costs and burdens 
                impact upon the availability of credit.
            (3) Corrective measures.--
                    (A) In general.--After conducting the review 
                required under paragraph (1), each appropriate Federal 
                banking agency shall, in consultation with the other 
                appropriate Federal banking agencies, revise the 
                agency's report of condition requirements to eliminate 
                any unnecessary burdens and costs.
                    (B) Consideration of burdens and costs.--Before 
                making any subsequent modification in report of 
                condition requirements, each appropriate Federal 
                banking agency shall consider the extent to which such 
                modifications impose unnecessary regulatory burdens and 
                costs upon insured depository institutions.
            (4) Amendment relating to national banks.--Section 5211(a) 
        of the Revised Statutes (12 U.S.C. 161(a)) is amended by adding 
        at the end the following sentence: ``Any change in the form of 
        report of condition made under this subsection shall be 
        effective only once in a particular calendar year, and only 
        after at least 6 months from the date that notice of the change 
        is published in the Federal Register, except that such a change 
        may be effective on a subsequent date or after less notice if 
        the Comptroller makes a specific finding that an additional 
        change in the form or a shorter advance-notice period is 
        necessary because of an emergency or change in Federal law.''.
            (5) Amendment relating to state non-member insured banks.--
        Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 
        1817(a) is amended by adding at the end the following new 
        paragraph:
            ``(10) Transition period for changes in report 
        requirements.--Any change in the form of reports of condition 
        made under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Board of Directors 
        makes a specific finding that an additional change in the form 
        or a shorter advance-notice period is necessary because of an 
        emergency or change in Federal law.''.
            (6) Amendment relating to state member banks.--The 6th 
        undesignated paragraph of section 9 of the Federal Reserve Act 
        (12 U.S.C. 324) is amended by adding at the end the following 
        sentence: ``Any change in the form of report of condition made 
        under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Board of Governors 
        of the Federal Reserve System makes a specific finding that an 
        additional change in the form or a shorter advance-notice 
        period is necessary because of an emergency or change in 
        Federal law.''.
            (7) Amendment relating to savings association.--Section 
        5(v) of the Home Owners' Loan Act (12 U.S.C. 1464(v)) is 
        amended by adding at the end the following new paragraph:
            ``(9) Transition period for changes in report 
        requirements.--Any change in the form of reports of condition 
        made under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Director makes a 
        specific finding that an additional change in the form or a 
        shorter advance-notice period is necessary because of an 
        emergency or change in Federal law.''.
            (8) Amendment relating to credit unions.--Section 202(a)(1) 
        of the Federal Credit Union Act (12 U.S.C. 1782(a)(1)) is 
        amended by adding at the end the following sentence: ``Any 
        change in the form of reports of condition made under this 
        subsection shall be effective only once in a particular 
        calendar year, and only after at least 6 months from the date 
        that notice of the change is published in the Federal Register, 
        except that such a change may be effective on a subsequent date 
        or after less notice if the Board makes a specific finding that 
        an additional change in the form or a shorter advance-notice 
        period is necessary because of an emergency or change in 
        Federal law.''.
            (9) Definitions.--For purposes of this subsection, the 
        terms ``insured depository institution'' and ``appropriate 
        Federal banking agency'' shall have the same meanings as 
        provided in section 3 of the Federal Deposit Insurance Act.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to reports of conditions for periods beginning after 
the first September 30 which occurs not less than 6 months after the 
date of the enactment of this Act.

SEC. 108. REGULATORY STANDARDS FOR CAPITAL-EFFICIENT DEPOSITORY 
              INSTITUTIONS.

    Section 39 of the Federal Deposit Insurance Act (as added by 
section 132 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991) is amended--
            (1) by redesignating subsections (d), (e), (f), and (g) as 
        subsections (e), (f), (g), and (h), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Standards for Capital-Efficient Depository Institutions.--
Subsections (a), (b), and (c) shall not apply with respect to any 
capital-efficient insured depository institution.''.

SEC. 109. AMENDMENT RELATING TO CERTAIN NOTICE REQUIREMENTS.

    Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 1831s) 
is amended by adding at the end the following new subsections:
    ``(d) Applicability to `Outstanding' Institutions.--This section 
shall not apply with respect to any insured depository institution 
which received a rating of `outstanding record of meeting community 
credit needs' in the most recent examination of such institution under 
section 804 of the Community Reinvestment Act of 1977.
    ``(e) Branch Defined.--For purposes of this section, the term 
`branch' shall not include--
            ``(1) an automated teller machine;
            ``(2) a branch acquired through merger, consolidation, 
        purchase, assumption or other method that is located in a local 
        market area currently served by another branch of the acquiring 
        institution;
            ``(3) a branch that is closed and reopened in another 
        location within the same local market area which would continue 
        to provide banking services to substantially all of the 
        customers currently served by the branch that is closed;
            ``(4) a branch that is closed in connection with--
                    ``(A) an emergency acquisition under--
                            ``(i) section 11(n); or
                            ``(ii) subsections (f) or (k) of section 
                        13; or
                    ``(B) any assistance provided by the Corporation 
                under section 13(c); and
            ``(5) any other branch that is closed and for which 
        exemption from the notice requirements of this section would 
        not produce a result inconsistent with the purposes of this 
        section, as determined by the appropriate Federal banking 
        agency by regulation.''.

SEC. 110. REGULATORY BURDEN REVIEW.

    (a) In General.--Before the end of each 4-year period beginning on 
the date of the enactment of this Act, each Federal banking agency, in 
consultation with individuals representing insured depository 
institutions, consumers, community groups, and other interested 
parties, shall--
            (1) review the regulations, policies and procedures, and 
        recordkeeping and documentation requirements used to monitor 
        and enforce compliance with all laws under the jurisdiction of 
        the Federal banking agencies;
            (2) determine whether such regulations, policies, 
        procedures, and requirements impose unnecessary burdens on 
        insured depository institutions; and
            (3) identify and prescribe any revisions of such 
        regulations, policies, procedures, and requirements that could 
        reduce unnecessary burdens on insured depository institutions 
        without in any respect--
                    (A) diminishing either compliance with or 
                enforcement of consumer laws in any respect; or
                    (B) endangering the safety and soundness of insured 
                depository institutions.
    (b) Report.--At the end of each 4-year period beginning on the date 
of the enactment of this Act, each Federal banking agency shall submit 
to the Congress a report describing the revisions identified under 
subsection (a)(3).
    (c) Uniform Regulations.--In prescribing regulations on any matter 
or issuing any interpretation of any such regulation, each appropriate 
Federal banking agency shall ensure, subject to any other applicable 
provision of law, that the regulation, and any formal or informal 
interpretation of such regulation, are uniform with the regulations and 
interpretations of each other appropriate Federal banking agency 
regarding such matter.
    (d) Definitions.--For purposes of this section--
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the meaning given to 
        such term in section 3(q) of the Federal Deposit Insurance Act.
            (2) Insured depository institution.--The term ``insured 
        depository institution'' has the meaning given to such term in 
        section 3(c)(2) of the Federal Deposit Insurance Act.

SEC. 111. REPEAL OF INTERBANK LIABILITY PROVISIONS.

    Section 23 of the Federal Reserve Act (12 U.S.C. 371b-2) is 
repealed.

SEC. 112. APPROVALS FOR CAPITAL-EFFICIENT STATE BANKS.

    Section 24(g) of the Federal Deposit Insurance Act (12 U.S.C. 
1831a(g)) is amended to read as follows:
    ``(g) Determinations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Corporation shall make determinations under this section by 
        regulation or order.
            ``(2) Expedited approval for certain well-qualified insured 
        state banks.--If--
                    ``(A) any State bank which is a capital-efficient 
                insured depository institution files a notice with the 
                Corporation which states the bank's intention to 
                engage, directly or through a subsidiary, in any 
                activity which is subject to subsection (a) or (d) and 
                describes such activity; and
                    ``(B) before the end of the 45-day period beginning 
                on the date such notice is filed the Corporation has 
                not determined that such activity poses a significant 
                risk to the appropriate deposit insurance fund,
        the Corporation shall be deemed to have determined as of the 
        end of such period that such activity poses no significant risk 
        to the appropriate deposit insurance fund.''.

SEC. 113. COMMUNITY REINVESTMENT ACT AMENDMENTS.

    (a) Self-Certification.--The Community Reinvestment Act of 1977 (12 
U.S.C. 2901 et seq.) is amended by adding after section 808 the 
following new sections:

``SEC. 809. SELF-CERTIFICATION.

    ``(a) Scope.--
            ``(1) In general.--This section shall only apply during a 
        calendar year to a regulated financial institution that--
                    ``(A) has not been found to be in violation of 
                section 701(a) of the Equal Credit Opportunity Act, or 
                any other substantive provision of such Act, for the 5-
                year period preceding such calendar year;
                    ``(B) does not currently have a rating of `needs to 
                improve' or `substantial noncompliance' from the 
                appropriate Federal financial supervisory agency under 
                section 807(b); and
                    ``(C) had total assets, as of the preceding 
                December 31, less than $250,000,000.
            ``(2) Indexing of minimum total asset requirement.--For 
        purposes of paragraph (1), the amount referred to in paragraph 
        (1)(C) shall be adjusted annually after December 31, 1992, by 
        the annual percentage increase in the Consumer Price Index for 
        Urban Wage Earners and Clerical Workers published by the Bureau 
        of Labor Statistics.
    ``(b) Modified Reporting.--In lieu of being evaluated under section 
804 and receiving a written evaluation under section 807 during the 
calendar year referred to in subsection (a), a regulated financial 
institution described in subsection (a) shall--
            ``(1) declare in writing to the appropriate Federal 
        financial supervisory agency that--
                    ``(A) the institution is a regulated financial 
                institution described in subsection (a); and
                    ``(B) the institution is in compliance with the 
                requirements of this subsection;
            ``(2) display any notices that may be required by the 
        appropriate Federal financial supervisory agency concerning the 
        institution's compliance with the requirements of this Act; and
            ``(3) make available for public inspection the following 
        information regarding the record of such institution in meeting 
        the credit needs of the institution's entire community:
                    ``(A) An identification of the community served by 
                the institution.
                    ``(B) A list of the types of credit offered by the 
                institution.
                    ``(C) Any public comments received within the 
                previous 2 years regarding the institution's service of 
                the entire community's credit needs.
                    ``(D) Copies of any declaration submitted under 
                paragraph (1).
    ``(c) Penalties.--If the appropriate Federal financial supervisory 
agency finds that a regulated financial institution has submitted 
intentionally false information to the appropriate Federal financial 
supervisory agency or otherwise has willfully violated the requirements 
of subsection (b), such institution--
            ``(1) shall, notwithstanding this section, be subject to 
        the requirements of section 804 for a period of not more than 
        10 years; and
            ``(2) shall be subject to a fine of not more than $10,000.
    ``(d) Community Challenge.--The appropriate Federal financial 
supervisory agency shall investigate any allegation filed against a 
regulated financial institution subject to this section that relates to 
whether such institution is helping to meet the credit needs of the 
institution's entire community, consistent with the safe and sound 
operation of such institution.

``SEC. 810. SAFE HARBOR.

    ``Notwithstanding section 804(2), an application for a deposit 
facility by a regulated financial institution shall not be denied on 
the basis of such institution's compliance with this Act if such 
institution--
            ``(1) received a rating `Outstanding record of meeting 
        community credit needs' or `Satisfactory record of meeting 
        community credit needs' in the institution's last evaluation 
        under section 804; or
            ``(2) maintains continued compliance with section 809.

``SEC. 811. STATE EXAMINATIONS.

    ``The appropriate Federal financial supervisory agency may accept 
examinations conducted by State supervisory agencies pursuant to 
comparable State community reinvestment laws in order to satisfy the 
requirements of this Act.

``SEC. 812. EXPEDITED EXAMINATION PROCEDURES.

    ``(a) In General.--In connection with an examination of a regulated 
financial institution, the appropriate Federal financial supervisory 
agency shall establish a 2-tiered approach to evaluating a regulated 
financial institution pursuant to section 804.
    ``(b) Condition for Comprehensive Examination.--A comprehensive and 
in-depth examination of performance pursuant to section 804 shall only 
be conducted if the appropriate Federal financial supervisory agency is 
not satisfied that credit is being extended throughout the community in 
a nondiscriminatory manner.''.
    (b) Duplicative Information Collection.--Section 804 of the 
Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting instead ``; and''; and
            (3) by adding after paragraph (2) following new paragraph:
                    ``(3) not require a regulated financial institution 
                to collect, prepare, file or maintain data or 
                information for purposes of assessing the institution's 
                record of helping to meet the credit needs of its 
                entire community, if such data or information is also 
                required to be submitted under the Home Mortgage 
                Disclosure Act of 1975.''.
    (c) Public Disclosure.--Section 807(b)(1)(B) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)(B)) is amended by 
striking ``and data''.

SEC. 114. CLARIFICATION OF DEFINITION.

    Section 803(b) of the Community Reinvestment Act of 1977 (12 U.S.C. 
2902(b)) in the 2d paragraph which is designated as paragraph (2) 
(defining regulated financial institution) by inserting ``and does not 
include any bank described in section 2(c)(2)(F) of the Bank Holding 
Company Act of 1956'' before the semicolon.

SEC. 115. ASSESSMENT BASE FOR DEPOSIT INSURANCE PREMIUMS.

    Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) is 
amended--
            (1) in the 3d sentence of subsection (a)(3)--
                    (A) by striking ``, and the reports on such dates 
                shall be the basis for the certified statement to be 
                filed in July pursuant to subsection (c) of this 
                section''; and
                    (B) by striking ``, and the reports on such dates 
                shall be the basis for the certified statement to be 
                filed in January pursuant to subsection (c) of this 
                section''; and
            (2) in subsection (b)(3) (as in effect before the effective 
        date of the amendment made by section 302(a) of Federal Deposit 
        Insurance Corporation Improvement Act of 1991) is amended by 
        adding at the end the following new sentence: ``Notwithstanding 
        the preceding sentence, if the Corporation determines that the 
        implementation of filing of certified statements under 
        subsection (c) would be facilitated, the Corporation may adopt 
        procedures under which the average assessment base is 
        calculated using the assessment base on the last date in the 
        immediately preceding assessment period in which the 
        institution was required to make a report of condition in lieu 
        of the assessment base on the last date in the current 
        assessment period for which the institution was required to 
        make a report of condition.''.

SEC. 116. ECONOMIC ANALYSIS OF CERTAIN BANKING REGULATIONS.

    (a) Statement Required.--An appropriate Federal banking agency that 
certifies, pursuant to section 605(b) of title 5, United States Code, 
that a proposed or final rule will not have a significant economic 
impact on a substantial number of all small banks or savings 
associations, shall publish with such certification a detailed 
statement that contains--
            (1) an explanation of why the rule will not have such an 
        economic impact;
            (2) an estimate of the number of small banks or savings 
        associations affected by the rule;
            (3) an estimate of the costs and benefits to each small 
        bank or savings association attributable to compliance with the 
        rule; and
            (4) in the case of a proposed rule, a request for public 
        comments on the economic impact of and the number of small 
        banks or savings associations affected by the rule.
    (b) Final Rules.--The preamble of each final rule prescribed by an 
appropriate Federal banking agency which has been preceded by a 
proposed rule shall--
            (1) specifically respond to comments from the public 
        addressing the economic impact of, or the number of small banks 
        or savings associations affected by, the proposed rule; and
            (2) explain whether and how the final rule responds to 
        those comments.
    (c) Definitions.--For purposes of this section--
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the meaning given to 
        such term in section 3 of the Federal Deposit Insurance Act.
            (2) Small bank or savings association.--The term ``small 
        bank or savings association'' means a bank or savings 
        association (as defined in section 3 of the Federal Deposit 
        Insurance Act) that has total assets of not more than 
        $250,000,000.
            (3) Substantial number.--The term ``substantial number'' 
        means more than 20 percent.

SEC. 117. OFFICE OF REGULATORY QUALITY.

    The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended by inserting after section 44 (as added by section 5 of this 
Act) the following new section:

``SEC. 45. OFFICE OF REGULATORY QUALITY.

    ``(a) Establishment Required.--Each appropriate Federal banking 
agency shall--
            ``(1) establish, within 180 days of the enactment of this 
        section, a separate Office of Regulatory Quality to determine 
        and monitor the accuracy, consistency and quality of the 
        examination activities of such agency; and
            ``(2) establish the position of director of the Office of 
        Regulatory Quality as the head of such office.
    ``(b) Regional Employees.--
            ``(1) Assignment.--The director of the Office of Regulatory 
        Quality of each appropriate Federal banking agency shall assign 
        1 or more employees of the Office of Regulatory Quality to each 
        regional office of such agency.
            ``(2) Number of employees.--The number of employees 
        assigned to each regional office under paragraph (1) shall be 
        sufficient to adequately monitor and maintain the quality of 
        the examinations of that regional office.
    ``(c) Reports of Complaints or Questions.--Any insured depository 
institution and any officer, director, employee or other representative 
of any insured depository institution may report to the Office of 
Regulatory Quality of the appropriate Federal banking agency 
responsible for the supervision of that insured depository institution 
any complaints or questions that such institution or person may have 
regarding the examination activities of the Federal banking agency or 
any employee of that agency.
    ``(d) Development of Uniform Standards of Accuracy, Consistency, 
and Quality.--
            ``(1) In general.--The directors of the Offices of 
        Regulatory Quality of the appropriate Federal banking agencies 
        shall, on a coordinated basis, develop a uniform form which 
        sets forth the standards upon which the accuracy, consistency 
        and quality of the examination activities of each appropriate 
        Federal banking agency shall be evaluated.
            ``(2) Availability of form.--The forms prepared pursuant to 
        paragraph (1) shall be made available to each insured 
        depository institution for use in evaluating the appropriate 
        Federal banking agencies.
            ``(3) Notice of availability of form.--Upon the completion 
        of any examination involving an insured depository institution, 
        the appropriate Federal banking agency shall notify such 
        institution of the availability of the forms prepared pursuant 
        to paragraph (1).
    ``(e) Response to Questions and Complaints Relating to Agency 
Operations.--
            ``(1) Investigation and response.--An Office of Regulatory 
        Quality shall promptly investigate and respond to each 
        complaint and question received under subsection (c) with 
        respect to the Federal banking agency of which the Office is a 
        part.
            ``(2) Referral.--If an Office receives a complaint or 
        question regarding another Federal banking agency, or an 
        employee of another Federal banking agency, it shall promptly 
        refer such complaint or question to the appropriate Office of 
        Regulatory Quality for that agency.
    ``(f) Access to Agency Records.--The director of an Office of 
Regulatory Quality, and any duly authorized representative of that 
Office, shall have access to, and the right to examine and copy, all 
records and recorded information in any form within the possession or 
control of that Federal banking agency or any employee or 
representative of that agency which the director of the Office of 
Regulatory Quality deems relevant to the investigation under this 
section.
    ``(g) Access to Agency Information.--The director of an Office of 
Regulatory Quality shall have the same right of access to information 
under this section with respect to the appropriate Federal banking 
agency, and the same right to enforce this access, as the Comptroller 
General pursuant to section 716 of title 31, United States Code.
    ``(h) Subpoena Authority; Confidentiality.--
            ``(1) Subpoena authority.--The provisions of section 716(c) 
        of title 31, United States Code, shall apply to the director of 
        an Office of Regulatory Quality, or any representative of that 
        Office, with respect to information which is necessary for the 
        Office to carry out the purposes of this section in the same 
        manner such section applies to the Comptroller of the Currency.
            ``(2) Confidentiality of information, complaint, and 
        complainant.--An Office of Regulatory Quality, and the director 
        and any representative of such Office, shall maintain the 
        confidentiality of--
                    ``(A) any information contained in any form 
                described in subsection (d) which is submitted to the 
                Office;
                    ``(B) any complaint or question received from any 
                insured depository institution or any representative of 
                that institution; and
                    ``(C) the identity of any insured depository 
                institution and any representative of an institution 
                which submits any such form, complaint, or question.
    ``(i) Annual Report.--
            ``(1) Report required.--The director of the Office of 
        Regulatory Quality for each appropriate Federal banking agency 
        shall submit an annual report to the Congress which shall 
        contain information, with respect to the 12-month period for 
        which such report is made, regarding the accuracy, consistency 
        and quality of the examination activities of such agency, the 
        nature and number of complaints and questions received 
        regarding such agency and its employees and the actions taken 
        by that Office of Regulatory Quality to improve the accuracy, 
        consistency and quality of the examination activities of the 
        agency.
            ``(2) Recommendations.--The director of such Office shall 
        also include within that report recommendations to simplify and 
        streamline such examination activities.''.

SEC. 118. PRIORITY OF SAFETY AND SOUNDNESS EXAMINATIONS.

    Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is 
amended by adding at the end the following new subsection:
    ``(g) Priority of Safety and Soundness Examinations.--No insured 
depository institution shall be subject to any routine examination, 
other than an examination for purposes of determining the safety and 
soundness of such institution, more frequently than the frequency at 
which the institution is subject to full-scope, on-site examinations 
required under subsection (d).''.

SEC. 119. BANK HOLDING COMPANY FORMATION THROUGH REORGANIZATIONS.

    (a) Exception to Approval Requirements in Connection With Certain 
Bank Reorganizations.--The 2d sentence of section 3(a) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1842(a)) is amended--
            (1) by striking out ``or (B)'' and inserting in lieu 
        thereof ``(B)''; and
            (2) by inserting before the period at the end the 
        following: ``; or (C) the acquisition by a company of control 
        of a bank in connection with a reorganization described in 
        paragraph (1) of subsection (h) if the requirements of such 
        subsection are met''.
    (b) Expedited Procedures for Certain Reorganizations of Banks Into 
Holding Companies.--Section 3 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1842) is amended by adding at the end thereof the following 
new subsection:
    ``(h) Expedited Procedures for Certain Reorganizations of Banks 
Into Holding Companies.--
            ``(1) Reorganization described.--For purposes of 
        subparagraph (C) of the second sentence of subsection (a), a 
        reorganization is described in this paragraph if--
                    ``(A) the transaction represents the exchange, by 
                the shareholders of the bank, of substantially all of 
                the shares of a capital-efficient bank for shares of a 
                newly-formed bank holding company;
                    ``(B) each shareholder of the newly-formed bank 
                holding company holds, after such exchange, 
                substantially the same proportionate interest in the 
                bank holding company as each such shareholder held in 
                the bank before such exchange, other than any change in 
                the shareholders' proportionate interest in such 
                holding company which resulted from the exercise of 
                dissenting shareholders' rights under State or Federal 
                law; and
                    ``(C) immediately following the reorganization, the 
                resulting bank holding company meets the capital and 
                other financial standards prescribed by the Board by 
                regulation for a bank holding company.
            ``(2) Expedited procedure.--The exception provided by 
        subparagraph (C) of the second sentence of subsection (a) to 
        the approval requirement of such subsection shall apply with 
        respect to a reorganization described in paragraph (1) of this 
        subsection, if--
                    ``(A) the bank referred to in paragraph (1)(A) 
                provides notice to the Board of such reorganization at 
                least 30 days before the date on which such 
                reorganization is scheduled to begin; and
                    ``(B) the Board has not--
                            ``(i) issued an order before such date 
                        disapproving such reorganization; or
                            ``(ii) issued a notice before such date 
                        that the provisions of this subsection are not 
                        applicable to such reorganization by reason of 
                        paragraph (3).
            ``(3) Exception in case of certain nonbanking activities.--
        This subsection shall not apply to any reorganization described 
        in paragraph (1) if, as a result of such reorganization, the 
        bank holding company would be engaging in any activity other 
        than banking or managing and controlling banks.
            ``(4) Capital-efficient bank defined.--The term `capital-
        efficient bank' means a bank which is a capital-efficient 
        insured depository institution (as defined in section 3(c)(6) 
        of the Federal Deposit Insurance Act).''.

SEC. 120. EXPEDITED PROCEDURES FOR CERTAIN BANK HOLDING COMPANIES TO 
              SEEK APPROVAL TO ENGAGE IN CERTAIN NONBANKING ACTIVITIES.

    (a) In General.--Section 4 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1843) is amended by adding at the end the following new 
subsection:
    ``(j) Notice Procedures for Nonbanking Activities.--
            ``(1) General notice procedure.--
                    ``(A) Notice requirement.--In the case of a bank 
                holding company the insured depository institution 
                subsidiaries of which consist only of capital-efficient 
                depository institutions (as defined in section 3(c)(6) 
                of the Federal Deposit Insurance Act), the bank holding 
                company may not engage in any nonbanking activity or 
                acquire or retain ownership or control of the shares of 
                a company engaged in activities pursuant to subsection 
                (c)(8) without providing the Board with written notice 
                of the proposed transaction or activity at least 45 
                days before the transaction or activity is proposed to 
                occur or commence.
                    ``(B) Contents of notice.--
                            ``(i) In general.--The notice submitted to 
                        the Board shall contain such information as the 
                        Board shall prescribe by regulation or by 
                        specific request in connection with a 
                        particular notice.
                            ``(ii) Limitation on information.--The 
                        Board may only require a notice under this 
                        subsection to contain such information as may 
                        be relevant to the nature and scope of the 
                        proposed activities or transaction or to the 
                        Board's evaluation of the criteria contained in 
                        paragraph (2).
                    ``(C) Procedure for agency action.--
                            ``(i) Notice of disapproval.--Any notice 
                        filed under this subsection shall be deemed to 
                        be approved by the Board unless, before the end 
                        of the 45-day period beginning on the date the 
                        Board receives a complete notice under 
                        subparagraph (A), the Board issues an order 
                        disapproving the transaction or activity and 
                        setting forth the reasons for disapproval.
                          ``(ii) Extension of period.--The Board may 
                        extend the 45-day period referred to in clause 
                        (i) for an additional 45 days.
                    ``(D) Approval before end of period.--
                            ``(i) In general.--Any transaction or 
                        activity may commence before the expiration of 
                        any period for disapproval established under 
                        this paragraph if the Board issues a written 
                        notice of approval.
                            ``(ii) Shorter periods by regulation.--The 
                        Board may prescribe regulations which provide 
                        for no notice under this paragraph or for a 
                        shorter notice period with respect to 
                        particular activities or transactions.
                    ``(E) Extension of period.--
                            ``(i) Activities not previously approved.--
                                    ``(I) In general.--In the case of 
                                any notice to engage in, or to acquire 
                                or retain ownership or control of 
                                shares of any company engaged in, any 
                                activity pursuant to subsection (c)(8) 
                                that has not been previously approved 
                                by order or regulation, the Board may 
                                extend the notice period under this 
                                subsection for an additional 90 days.
                                    ``(II) Determination of period in 
                                case of public hearing.--If a public 
                                hearing is conducted in connection with 
                                any proposal referred to in subclause 
                                (I), the Board may extend the notice 
                                period under this subsection for a 
                                period not to exceed 90 days from the 
                                conclusion of the hearing procedure.
                            ``(ii) Section 3 application.--In the case 
                        of any notice filed in connection with an 
                        application under section 3, the Board may 
                        extend the notice period for the time necessary 
                        to complete action on the application under 
                        section 3.
            ``(2) General standards for review.--
                    ``(A) Criteria.--In connection with a notice under 
                this subsection, the Board may consider the following 
                criteria:
                            ``(i) The managerial resources of the 
                        companies involved.
                            ``(ii) The adequacy of the companies 
                        financial resources, including capital, giving 
                        consideration to the financial resources and 
                        capital of others engaged in similar 
                        activities.
                            ``(iii) Any material adverse effect on the 
                        safety and soundness or financial condition of 
                        any insured depository institution affiliate.
                            ``(iv) Whether performance of the activity 
                        by a bank holding company or a subsidiary of 
                        such company can reasonably be expected to 
                        produce benefits to the public, such as greater 
                        convenience, increased competition, or gains in 
                        efficiency, that outweigh possible adverse 
                        effects, such as undue concentration of 
                        resources, decreased or unfair competition, 
                        conflicts of interest, or unsound banking 
                        practices.
                    ``(B) Requirements for disapproval.--The Board 
                shall disapprove any proposed transaction pursuant to a 
                notice filed under this subsection if the Board 
                determines that any insured depository institution 
                subsidiary of the bank holding company--
                            ``(i) is engaging in any unsafe and unsound 
                        practice; or
                            ``(ii) is in an unsafe and unsound 
                        condition.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 4(c)(8) of the Bank Holding Company Act of 1956 
        (12 U.S.C. 1843(c)(8)) is amended--
                    (A) in the 1st clause, by inserting ``subject to 
                subsection (j),'' before ``shares of any company''; and
                    (B) in the 1st complete sentence, by inserting ``, 
                except in the case of a notice filed under subsection 
                (j),'' after ``Board shall consider''.
            (2) The penultimate sentence of section 4(c) of the Bank 
        Holding Company Act of 1956 (12 U.S.C. 1843(c)) is amended by 
        striking ``In the event'' and inserting ``Except with respect 
        to a notice filed under subsection (j), in the event''.

SEC. 121. REDUCTION OF POST-APPROVAL PERIOD FOR BANK HOLDING COMPANY 
              ACQUISITIONS AND BANK MERGERS.

    (a) Bank Holding Company Acquisitions.--The 4th sentence of section 
11(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1849(b)(1)) 
is amended by inserting ``or such shorter period as the Board may 
prescribe with the concurrence of the Attorney General'' before the 
period.
    (b) Depository Institution Mergers.--The last sentence of section 
18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is 
amended by inserting ``or such shorter period as the agency may 
prescribe with the concurrence of the Attorney General'' before the 
period.

SEC. 122. BANK SECRECY ACT AMENDMENTS.

    (a) Staff Commentaries.--Title 31 of the United States Code is 
amended to add the following new section 5327:

``SEC. 5327. STAFF COMMENTARIES.

    ``The Secretary of the Treasury shall review all regulations 
promulgated under this title on an annual basis and seek comment from 
the public pursuant to this review. The Secretary shall publish all 
written rulings interpreting this title, as well as a staff commentary 
to the regulations issued under this title. This commentary shall be 
issued on an annual basis.''.
    (b) Log Requirements.--Section 5325(a)(1) of title 31 of the United 
States Code is amended--
            (1) by striking subparagraphs (A) and (B); and
            (2) by inserting the following new paragraph (1):
            ``(1) the individual has a transaction account with such 
        financial institution and the financial institution verifies 
        that fact through a signature card or other information 
        maintained by such institution in connection with the account 
        of such individual.''.
    (c) Exemption Process.--Section 5318(a)(5) of title 31 of the 
United States Code is amended--
            (1) by inserting ``or exception'' after ``an appropriate 
        exemption''; and
            (2) by inserting ``only after receiving comments from the 
        entities covered by this chapter. The Secretary must take into 
        account the effect that changes to the exemption or exception 
        process will have on the cost and efficiency of the reporting 
        process.'', after the words ``under this subchapter''.
    (d) Customer Filings.--Section 5313(a) of title 31 of the United 
States Code is amended by striking ``, the institution and any other 
participant in the transaction the Secretary may prescribe shall file a 
report'' and inserting ``the person who participates in the transaction 
shall file a report''.
    (e) Inflation Adjustments on CTR Amounts.--Section 5313(a) of title 
31 of the United States Code is amended by inserting after the second 
sentence the following new sentence: ``The Secretary must review the 
reporting requirements mentioned above by September 1 of each calendar 
year to determine if the reporting amount prescribed by the Secretary 
should be adjusted to account for inflation, cost effectiveness of the 
requirement or the usefulness for law enforcement purposes. The 
Secretary must submit a written report to the Congress each year 
disclosing how the reporting threshold decision was reached. The report 
must include an analysis of how the change will affect domestic 
financial institutions.''.

SEC. 123. AGGREGATE LENDING LIMITS FOR SMALL BANKS.

    Section 22(h)(5) of the Federal Reserve Act (12 U.S.C. 375b(5)) is 
amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Small bank exception.--Notwithstanding 
                subparagraph (A), member banks with less than 
                $100,000,000 in deposits may make such extensions of 
                credit in the aggregate to persons specified in 
                subparagraph (A) in an amount not to exceed 2 times the 
                bank's unimpaired capital and unimpaired surplus.''; 
                and
            (3) in subparagraph (D) (as redesignated), by striking 
        ``less than $100,000,000'' and inserting ``between $100,000,000 
        and $250,000,000''.

SEC. 124. EFFECTIVE DATE.

    Except as otherwise explicitly provided in any provision of this 
title, this title and amendments made by this title shall take effect 
at the end of the 6-month period beginning on the date of the enactment 
of this Act.

                    TITLE II--NONSUPERVISORY REFORMS

   Subtitle A--Expedited Funds Availability and Electronic Transfers

SEC. 201. AVAILABILITY SCHEDULES.

    (a) Treasury Checks.--Section 603(a)(2)(A) of the Expedited Funds 
Availability Act (12 U.S.C. 4002(a)(2)(A)) is amended--
            (1) by redesignating clauses (i) and (ii) as clauses (ii) 
        and (iii), respectively; and
            (2) by inserting before clause (ii) (as so redesignated), 
        the following new clause:
                    ``(i) is deposited at a receiving depository 
                institution (other than by use of a propriety ATM) 
                which is staffed by individuals employed by such 
                institution;''.
    (b) Proprietary ATM Exception.--Section 603(a)(2)(E)) of the 
Expedited Funds Availability Act (12 U.S.C. 4002(A)(2)(E)) is amended 
by inserting ``(other than by use of a proprietary ATM)'' after 
``branch of a depository institution''.
    (c) Local Checks.--Section 603(b)(1) of the Expedited Funds 
Availability Act (12 U.S.C. 4002(b)(1)) is amended by striking ``1 
business day'' and inserting ``2 business days''.

SEC. 202. DEFINITION OF A NEW ACCOUNT.

    Section 604(a) of the Expedited Funds Availability Act (12 U.S.C. 
4003(a)) is amended by striking ``30-day period'' and inserting ``90-
day period''.

SEC. 203. AUTHORITY TO ESTABLISH RULES REGARDING PAYMENT SYSTEM LOSSES 
              AND LIABILITIES.

    Section 611(f) of the Expedited Funds Availability Act (12 U.S.C. 
4010(f)) is amended in the first sentence by inserting ``, and other 
entities participating in the payments system, including States and 
political subdivisions of States on which checks are drawn,'' after 
``depository institutions''.

           Subtitle B--Amendments to the Truth in Lending Act

SEC. 211. EXEMPTION FOR CERTAIN BORROWERS.

    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended 
by adding at the end the following new paragraph:
            ``(7) Credit transactions involving a consumer who had 
        individual income on excess of $200,000 in each of the 2 most 
        recent calendar years or who has an individual net worth, or 
        joint net worth with that person's spouse, at the time of the 
        transaction, that exceeds $1,000,000.''.

SEC. 212. TRUTH IN LENDING ACT RIGHT OF RESCISSION.

    Section 125(a) of the Truth in Lending Act (15 U.S.C. 1635(a)) is 
amended by adding at the end the following sentence: ``The creditor 
shall be deemed to have delivered to an obligor the information, 
rescission forms, and statement of material disclosures required 
pursuant to this section notwithstanding any errors included in such 
information, forms or statement, unless any such error is unintentional 
and does not materially understate the cost of the transaction to the 
obligor.''.

                  Subtitle C--Homeownership Amendments

SEC. 221. HOME MORTGAGE DISCLOSURE ACT EXEMPTION.

    The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) 
is amended--
            (1) in section 304 (12 U.S.C. 2803), by striking subsection 
        (i); and
            (2) in section 309 (12 U.S.C. 2808) by adding at the end 
        thereof ``The dollar amount of total assets referred to in this 
        section shall be adjusted annually on January 1 by the annual 
        percentage change in the Consumer Price Index reported for the 
        previous June 1.''.

SEC. 222. HOMEOWNERSHIP DEBT COUNSELING NOTIFICATION.

    Section 106(c)(5) of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x(c)(5)) is repealed.

SEC. 223. ELIMINATION OF DUPLICATIVE DATA COLLECTION.

    Effective 6 months after the date of enactment of this Act, an 
appropriate Federal banking agency shall not require any insured 
depository institution (as defined in section 3(q) of the Federal 
Deposit Insurance Act) to prepare, file, or maintain data to further 
the purposes of, or to fulfill the requirements of, the Fair Housing 
Act if the preparation, filing, or maintenance of such data is required 
under the Home Mortgage Disclosure Act of 1975.

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