103D CONGRESS

2D SESSION H. R. 3841

AMENDMENT
In the Senate of the United States,

April 26 (legislative day, April 11), 1994.

Resolved, That the bill from the House of Representatives (H.R. 3841) entitled ‘‘An Act to amend the Bank Holding Company Act of 1956, the Revised Statutes of the United

States, and the Federal Deposit Insurance Act to provide for

interstate banking and branching’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 TITLE I—INTERSTATE BANKING

2 AND BRANCHING

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Interstate Banking and

5 Branching Act of 1994’’.

6 SEC. 102. INTERSTATE BANKING.

7 (a) IN GENERAL.—Section 3(d) of the Bank Holding

8 Company Act of 1956 (12 U.S.C. 1842(d)) is amended to

9 read as follows:

10 ‘‘(d) STATE BOUNDARIES.—
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1 ‘‘(1) APPROVALS AUTHORIZED.—

2 ‘‘(A) ACQUISITION OF EXISTING BANKS.—

3 The Board may approve an application under

4 this section to permit a bank holding company

5 that is adequately capitalized and adequately

6 managed to acquire control of, or all or substan7 tially all of the assets of, an existing bank lo8 cated outside of the home State of such bank

9 holding company.

10 ‘‘(B) EXISTING BANKS.—For purposes of

11 this subsection, a bank that does not open for

12 business and that has been chartered solely for

13 the purpose of acquiring control of, or all or sub14 stantially all of the assets of, an existing bank

15 shall be deemed to have been in existence for the

16 same period of time as the bank to be acquired.

17 ‘‘(C) COMMUNITY REINVESTMENT COMPLI18 ANCE.—In determining whether to approve an

19 application under subparagraph (A), the Board

20 shall consider the applicant’s record of compli21 ance with applicable Federal and State commu22 nity reinvestment laws.

23 ‘‘(D) STATE LAW.—Subject to paragraphs

24 (2), (4), and (6), a transaction approved under

25 subparagraph (A) may occur without regard to
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1 whether such transaction is permitted under the

2 law of the State in which the bank to be acquired

3 is located.

4 ‘‘(2) CONCENTRATION AND OTHER LIMITS.—The

5 Board may not approve an application under para6 graph (1)(A) if—

7 ‘‘(A) the applicant controls, or upon com8 pletion of the acquisition would control, more

9 than 10 percent of the total deposits held by in10 sured depository institutions in the United

11 States, as determined under regulations of the

12 Board;

13 ‘‘(B) the applicant controls, or upon com14 pletion of the acquisition would control, 25 per15 cent or more of the total deposits held by insured

16 depository institutions in the State in which the

17 bank to be acquired is located, as determined

18 under regulations of the Board, except that the

19 State bank supervisor may waive the applicabil20 ity of this clause on a case-by-case basis if such

21 waiver does not have the effect of discriminating

22 against out-of-State banks, out-of-State bank

23 holding companies, or subsidiaries thereof; or

24 ‘‘(C) the acquisition would result in the ap25 plicant directly or indirectly controlling a bank
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1 that has been in existence for a shorter period of

2 time, if any, than is prescribed by the law of the

3 State in which such bank is located in effect on

4 the date on which the application is filed with

5 the Board, only if such State law—

6 ‘‘(i) does not prescribe a period of more

7 than 5 years; and

8 ‘‘(ii) does not have the effect of dis9 criminating among out-of-State banks, out10 of-State bank holding companies, or subsidi11 aries thereof. A State law in effect on the

12 date of enactment of the Interstate Banking

13 and Branching Act of 1994 that permits

14 bank holding companies from only a limited

15 number of States to acquire banks in exist16 ence for a specified length of time in that

17 State, shall be interpreted, under State and

18 Federal law, as permitting bank holding

19 companies from any State, to acquire a

20 bank in that State, under the terms and

21 conditions of such State law.

22 ‘‘(3) EXCEPTION.—The Board may approve an

23 application under paragraph (1)(A), notwithstanding

24 any provision of paragraph (2), if such application

25 involves the acquisition of one or more banks in de-
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1 fault or in danger of default or with respect to which

2 the Federal Deposit Insurance Corporation provides

3 assistance under section 13(c) of the Federal Deposit

4 Insurance Act.

5 ‘‘(4) NO EFFECT ON ANTITRUST LAWS.—Nothing

6 in this subsection affects Federal or State antitrust

7 laws that do not have the effect of discriminating

8 against out-of-State banks, out-of-State bank holding

9 companies, or subsidiaries thereof.

10 ‘‘(5) NO EFFECT ON STATE TAX AUTHORITY.—No

11 provision of this Act shall be construed as affecting

12 the authority of any State or political subdivision of

13 any State to adopt, apply, and administer any tax

14 or method of taxation to any bank, bank holding com15 pany, or foreign bank or to any affiliate of any bank,

16 bank holding company, or foreign bank to the extent

17 that such tax or tax method is otherwise permissible

18 by or under the Constitution of the United States or

19 other Federal law.

20 ‘‘(6) AFFECT ON STATE CONTINGENCY LAWS.—

21 Nothing in this subsection affects the applicability of

22 a State law that makes an acquisition of a bank con23 tingent upon a requirement to hold a portion of such

24 bank’s assets available for call by a State-sponsored

25 housing entity established pursuant to State law, if—
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1 ‘‘(A) the State law does not have the effect of dis2 criminating against out-of-State banks, out-of-State

3 bank holding companies, or subsidiaries thereof;

4 ‘‘(B) that State law was in effect as of the date

5 of enactment of the Interstate Banking and Branch6 ing Act of 1994;

7 ‘‘(C) the Federal Deposit Insurance Corporation

8 has not determined that compliance with such State

9 law would result in an unacceptable risk to the ap10 propriate deposit insurance fund; and

11 ‘‘(D) the appropriate Federal banking agency for

12 such institution has not found that compliance with

13 such State law would place the institution in an un14 safe or unsound condition.’’.

15 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

16 Section 2 of the Bank Holding Company Act of 1956 (12

17 U.S.C. 1841) is amended by adding at the end the following

18 new subsections:

19 ‘‘(n) INCORPORATED DEFINITIONS.—For purposes of

20 this Act, the terms ‘insured depository institution’, ‘appro21 priate Federal banking agency’, ‘in default’, ‘in danger of

22 default’, and ‘State bank supervisor’ have the same mean23 ings as in section 3 of the Federal Deposit Insurance Act.

24 ‘‘(o) OTHER DEFINITIONS.—For purposes of this

25 Act—
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1 ‘‘(1) the ‘home State’ of a bank holding company

2 is the State in which the total deposits of its banking

3 subsidiaries were largest on July 1, 1966, or the date

4 on which such company became a bank holding com5 pany, whichever is later;

6 ‘‘(2) the ‘home State’ of a bank is—

7 ‘‘(A) in the case of a State bank, the State

8 in which it was chartered; and

9 ‘‘(B) in the case of a national bank, in the

10 State in which its main office is located; and

11 ‘‘(3) a bank holding company is ‘adequately cap12 italized’ if it meets or exceeds all applicable Federal

13 regulatory capital standards.’’.

14 (c) EFFECTIVE DATE.—This section and the amend15 ments made by this section shall become effective 1 year

16 after the date of enactment of this Act.

17 SEC. 103. CONVERSION OF BANKS TO BRANCHES.

18 (a) IN GENERAL.—Section 3 of the Bank Holding

19 Company Act of 1956 (12 U.S.C. 1842) is amended by add20 ing at the end the following new subsection:

21 ‘‘(h) INTERSTATE COMBINATIONS.—

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) COMBINATIONS AUTHORIZED.—Begin24 ning on June 1, 1997, a bank holding company

25 having subsidiary banks located in more than 1
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1 State may combine 2 or more of such banks into

2 a single, resulting bank by means of a merger,

3 consolidation, or other transaction approved by

4 the appropriate Federal banking agency.

5 ‘‘(B) CONTINUED OPERATIONS.—A resulting

6 bank may, subject to the approval of the appro7 priate Federal banking agency, retain and oper8 ate as branches the main offices and any

9 branches which, immediately prior to the trans10 action, were being operated by any combined

11 bank or the resulting bank.

12 ‘‘(C) SURRENDER OF CHARTER AFTER COM13 BINATION.—On the date on which a combination

14 authorized by this paragraph becomes effective,

15 the charters of the combined banks shall be sur16 rendered to the regulatory authority that issued

17 the charters.

18 ‘‘(2) APPLICABILITY.—A combination under

19 paragraph (1) may only be effected in the case of a

20 merger, consolidation, or other transaction that is un21 dertaken by a bank holding company that is ade22 quately capitalized and adequately managed.

23 ‘‘(3) ACTIVITIES OF THE RESULTING BANK.—

24 ‘‘(A) ADDITIONAL BRANCHES.—Following

25 any combination effected under paragraph (1),
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1 the resulting bank may establish, acquire, or op2 erate additional branches at any location where

3 the resulting bank or a combined bank could

4 have established, acquired, or operated a branch

5 under the applicable Federal or State law as if

6 it had not been a party to such combination.

7 ‘‘(B) INTRASTATE BRANCHING.—Except as

8 expressly provided in this subsection, nothing in

9 this subsection shall be deemed to amend, repeal,

10 or preempt, either expressly or by implication,

11 any Federal or State law relating to the estab12 lishment, acquisition, or operation of intrastate

13 branches by national or State banks.

14 ‘‘(C) CONDITIONS.—Prior to granting ap15 proval to effect a combination under paragraph

16 (1), the appropriate Federal banking agency

17 shall consider each bank’s rating under the Com18 munity Reinvestment Act of 1977 and the com19 ments of the appropriate State bank regulatory

20 authorities regarding each bank’s compliance

21 with applicable State community reinvestment

22 laws.

23 ‘‘(D) IMPOSITION OF SHARES TAX BY HOST

24 STATES.—If any branch of an out-of-State bank

25 established pursuant to paragraph (1) or sub-
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1 paragraph (A) of this paragraph continues in

2 operation, a proportionate amount of the value

3 of the shares of the out-of-State bank may be sub4 ject to any bank shares tax levied or imposed by

5 any host State or political subdivision thereof

6 that imposes such tax based upon a method

7 adopted by the host State, which could include

8 allocation and apportionment.

9 ‘‘(4) ACTIVITIES OF BRANCHES.—A State bank

10 that establishes one or more branches in accordance

11 with paragraph (1) or paragraph (3)(A) may not

12 conduct any activity at any branch located in a host

13 State that is not permitted for banks chartered by

14 such host State.

15 ‘‘(5) APPLICABLE LAW.—

16 ‘‘(A) IN GENERAL.—

17 ‘‘(i) NATIONAL BANK BRANCHES.—Any

18 branch of a national bank that is estab19 lished as the result of a combination in ac20 cordance with paragraph (1) or paragraph

21 (3)(A) shall be subject to the laws of the host

22 State, including those that govern intrastate

23 branching, consumer protection, fair lend24 ing, and community reinvestment, as if it
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1 were a branch of a national bank having its

2 main office in that State.

3 ‘‘(ii) STATE BANK BRANCHES.—Any

4 branch of a State bank that is established as

5 the result of a combination in accordance

6 with paragraph (1) or paragraph (3)(A)

7 shall be subject to the laws of the host State,

8 including those that govern intrastate

9 branching, consumer protection, fair lend10 ing, and community reinvestment, as if it

11 were a branch of a bank chartered under the

12 laws of such State.

13 ‘‘(B) FILING REQUIREMENT.—A host State

14 may require any bank located in another State

15 that wishes to establish a branch within the host

16 State as a result of a combination authorized by

17 paragraph (1) to comply with filing require18 ments that—

19 ‘‘(i) are not discriminatory in effect;

20 and

21 ‘‘(ii) are similar in their effect to and

22 are subject to similar sanctions as those

23 that are imposed on a corporation having

24 its main office in another State that is not
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1 engaged in the business of banking and that

2 seeks to engage in business in the host State.

3 ‘‘(6) STATE ELECTION TO PROHIBIT INTERSTATE

4 COMBINATIONS.—

5 ‘‘(A) IN GENERAL.—Paragraph (1) does not

6 apply to a bank holding company located in a

7 State that has enacted a law after the date of en8 actment of this subsection and prior to June 1,

9 1997, that applies equally to all out-of-State

10 banks, and that expressly prohibits interstate

11 combinations involving a bank located in the

12 State, as authorized under paragraph (1).

13 ‘‘(B) EFFECT OF PROHIBITION.—A bank lo14 cated in a State that has in effect a prohibition

15 described in subparagraph (A) may not be com16 bined, and shall have no authority to be com17 bined under paragraph (1), with a bank located

18 outside of that State.

19 ‘‘(C) EFFECT OF STATE ELECTION.—A law

20 enacted by a State pursuant to subparagraph

21 (A) or paragraph (8) shall have no effect on com22 binations that were approved prior to the effec23 tive date or the date of enactment of such law,

24 whichever is later.
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1 ‘‘(7) STATE ELECTION TO PERMIT INTERSTATE

2 COMBINATIONS.—A combination under paragraph (1)

3 may be undertaken prior to June 1, 1997, if each of

4 the States in which 1 or more banks that are to be

5 combined into a single, resulting bank is located has

6 in effect on the date on which the combination is ap7 proved a law that applies equally to all out-of-State

8 banks and that expressly permits interstate combina9 tions by national and State-chartered banks. A State

10 described in the preceding sentence may impose con11 ditions on the branch of the resulting bank located in

12 that State if—

13 ‘‘(A) the conditions do not have the effect of

14 discriminating against out-of-State banks, out15 of-State bank holding companies, or subsidiaries

16 thereof (other than on the basis of a reciprocal

17 treatment requirement);

18 ‘‘(B) the imposition of the conditions is not

19 preempted by Federal law; and

20 ‘‘(C) the conditions do not apply or require

21 performance beyond June 1, 1997.

22 ‘‘(8) COMBINATIONS AFTER JUNE 1, 1997.—A

23 State described in paragraphs (6) or (7) may elect at

24 any later time to permit or withdraw permission for

25 interstate combinations authorized under paragraph
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1 (1) if such State enacts a law that applies equally to

2 all out-of-State banks and that expressly permits (or

3 withdraws permission for, as the case may be) inter4 state combinations by all national and State banks.

5 ‘‘(9) LIMITATIONS.—Nothing in this subsection—

6 ‘‘(A) affects Federal or State antitrust laws

7 that do not have the effect of discriminating

8 against out-of-State banks, out-of-State bank

9 holding companies, or subsidiaries thereof; or

10 ‘‘(B) affects section 5197 of the Revised

11 Statutes or section 27 of the Federal Deposit In12 surance Act.

13 ‘‘(10) RESERVATION OF CERTAIN RIGHTS TO

14 STATES.—Nothing in this subsection limits in any

15 way the right of a State to—

16 ‘‘(A) determine the authority of State banks

17 chartered in that State to acquire, establish, and

18 maintain branches; or

19 ‘‘(B) supervise, regulate, and examine State

20 banks chartered by that State.

21 ‘‘(11) NO EFFECT ON STATE TAX AUTHORITY.—

22 No provision of this Act shall be construed as affect23 ing the authority of any State or political subdivision

24 of any State to adopt, apply, and administer any tax

25 or method of taxation to any bank, bank holding com-
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1 pany, or foreign bank or to any affiliate of any bank,

2 bank holding company, or foreign bank to the extent

3 that such tax or tax method is otherwise permissible

4 by or under the Constitution of the United States or

5 other Federal law.

6 ‘‘(12) DEFINITIONS.—For purposes of this sub7 section—

8 ‘‘(A) the term ‘combined bank’ means any

9 bank participating in a combination under

10 paragraph (1), other than the resulting bank;

11 ‘‘(B) the term ‘host State’ means the State

12 in which a bank establishes or maintains a

13 branch other than the State in which the bank

14 is located and engaged in the business of bank15 ing;

16 ‘‘(C) a bank shall be deemed to be ‘lo17 cated’—

18 ‘‘(i) in the case of a State bank, in the

19 State in which it was chartered; and

20 ‘‘(ii) in the case of a national bank, in

21 the State in which its main office is located;

22 ‘‘(D) the term ‘resulting bank’ means a

23 banking subsidiary of a bank holding company

24 that has resulted from a transaction effected

25 under paragraph (1) involving the combination
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1 of 2 or more subsidiary banks of the bank hold2 ing company located in 2 or more States; and

3 ‘‘(E) the term ‘State bank’ has the same

4 meaning as in section 3 of the Federal Deposit

5 Insurance Act.’’.

6 (b) CONFORMING AMENDMENT TO THE NATIONAL

7 BANK ACT.—Section 5155(c) of the Revised Statutes (12

8 U.S.C. 36(c)) is amended in the first sentence, by striking

9 ‘‘A national banking association’’ and inserting ‘‘Except as

10 provided in section 3(h) of the Bank Holding Company Act

11 of 1956, a national banking association’’.

12 SEC. 104. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE

13 ACT AND THE ACT ENTITLED ‘‘AN ACT TO

14 PROVIDE FOR THE CONSOLIDATION OF NA15 TIONAL BANKING ASSOCIATIONS’’.

16 (a) FEDERAL DEPOSIT INSURANCE ACT AMEND17 MENTS.—Section 18(d) of the Federal Deposit Insurance

18 Act (12 U.S.C. 1828(d)) is amended by adding at the end

19 the following new paragraphs:

20 ‘‘(3) COORDINATION OF EXAMINATION AUTHOR21 ITY.—

22 ‘‘(A) IN GENERAL.—The appropriate State

23 official of a host State may examine a branch

24 operated in such State of a bank chartered by a

25 State other than that host State that resulted
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1 from a combination effected under section 3(h) of

2 the Bank Holding Company Act of 1956—

3 ‘‘(i) for the purpose of determining

4 compliance with host State laws, including

5 those that govern banking, taxation, com6 munity reinvestment, fair lending,

7 consumer protection, and permissible activi8 ties; and

9 ‘‘(ii) to ensure that the activities of the

10 branch are not conducted in an unsafe or

11 unsound manner.

12 ‘‘(B) ENFORCEMENT.—In the event that the

13 State bank supervisor of the host State deter14 mines that there is a violation of the law of the

15 host State concerning the activities being con16 ducted by a branch described in subparagraph

17 (A), the State bank supervisor of the host State

18 may undertake such enforcement actions and

19 proceedings as would be permitted under the law

20 of the host State as if the branch were a bank

21 chartered by that host State.

22 ‘‘(C) COOPERATIVE AGREEMENT.—The

23 State bank supervisors from 2 or more States

24 may enter into cooperative agreements to facili25 tate State regulatory supervision of State-char-
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1 tered banks, including cooperative agreements re2 lating to the coordination of examinations and

3 joint participation in examinations.

4 ‘‘(D) FEDERAL REGULATORY AUTHORITY.—

5 Nothing in this subsection limits in any way the

6 authority of the appropriate Federal banking

7 agency to examine or to take any enforcement

8 actions or proceedings against any bank or

9 branch of a bank for which the agency is the ap10 propriate Federal banking agency.

11 ‘‘(E) REVIEW OF INTERSTATE AGREE12 MENTS.—If the appropriate Federal banking

13 agency determines that the States have reached

14 an agreement under subparagraph (C) that ade15 quately protects the deposit insurance funds, the

16 appropriate Federal banking agency may defer

17 to State examinations of branches operated in

18 the host State by out-of-State banks.

19 ‘‘(4) NO EFFECT ON STATE TAX AUTHORITY.—No

20 provision of this Act shall be construed as affecting

21 the authority of any State or political subdivision of

22 any State to adopt, apply, and administer any tax

23 or method of taxation to any bank, bank holding com24 pany, or foreign bank or to any affiliate of any bank,

25 bank holding company, or foreign bank to the extent
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1 that such tax or tax method is otherwise permissible

2 by or under the Constitution of the United States or

3 other Federal law.’’.

4 (b) NATIONAL BANKING ASSOCIATIONS.—The Act enti5 tled ‘‘An Act to provide for the consolidation of national

6 banking associations’’, approved November 7, 1918 (12

7 U.S.C. 215 et seq.) is amended—

8 (1) in the first sentence of subsection (a) of the

9 first section, by inserting ‘‘, or in any State in which

10 a bank is authorized to engage in an interstate con11 solidation pursuant to section 3(h) of the Bank Hold12 ing Company Act of 1956,’’ after ‘‘located in the same

13 State’’;

14 (2) by inserting before the period at the end of

15 subsection (d) of the first section ‘‘, except that the ap16 plicability of State law to an interstate consolidation

17 undertaken in accordance with section 3(h) of the

18 Bank Holding Company Act of 1956 is determined in

19 accordance with the provisions of that section’’;

20 (3) by adding at the end of the first section the

21 following new subsection:

22 ‘‘(h) An interstate consolidation—

23 ‘‘(1) shall be undertaken under this section pur24 suant to the procedures, restrictions, and require25 ments—
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1 ‘‘(A) set forth in section 3(h) of the Bank

2 Holding Company Act of 1956 as if such inter3 state consolidation were a combination under

4 that section; and

5 ‘‘(B) set forth in this section, to the extent

6 that such procedures, restrictions, and require7 ments are not inconsistent with those of section

8 3(h) of the Bank Holding Company Act of 1956;

9 and

10 ‘‘(2) involving banks that are not affiliated (as

11 such term is defined in section 2 of the Bank Holding

12 Company Act of 1956) shall meet the requirements of

13 section 3(d) of the Bank Holding Company Act of

14 1956, as determined by the Comptroller of the Cur15 rency, as if such consolidation were an acquisition

16 under that section 3(d).’’;

17 (4) in the first sentence of section 2(a)—

18 (A) by striking ‘‘under an agreement not

19 inconsistent with this Act,’’; and

20 (B) by inserting ‘‘or within any State in

21 which a bank is authorized to engage in an

22 interstate merger pursuant to section 3(h) of the

23 Bank Holding Company Act of 1956,’’ after ‘‘lo24 cated within the same State,’’;
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1 (5) in the sixth sentence of section 2(d) by insert2 ing before the period ‘‘, except that the applicability

3 of State law to a merger undertaken in accordance

4 with section 3(h) of the Bank Holding Company Act

5 of 1956 is determined in accordance with the provi6 sions of that section’’;

7 (6) in section 2, by adding at the end the follow8 ing new subsection:

9 ‘‘(h)(1) An interstate merger—

10 ‘‘(A) shall be undertaken under this section

11 pursuant to the procedures, restrictions, and re12 quirements—

13 ‘‘(i) set forth in section 3(h) of the

14 Bank Holding Company Act of 1956 as if

15 such merger were a combination under that

16 section; and

17 ‘‘(ii) set forth in this section, to the ex18 tent that such procedures, restrictions, and

19 requirements are not inconsistent with those

20 of section 3(h) of the Bank Holding Com21 pany Act of 1956; and

22 ‘‘(B) involving banks that are not affiliated

23 (as such term is defined in section 2 of the Bank

24 Holding Company Act of 1956) shall meet the

25 requirements of section 3(d) of the Bank Holding
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1 Company Act of 1956, as determined by the

2 Comptroller of the Currency, as if such merger

3 were an acquisition under that section 3(d).

4 ‘‘(2) Paragraph (1) shall apply to a State mem5 ber bank involved in an interstate merger on the same

6 terms and conditions and subject to the same proce7 dures, restrictions, and requirements as are applicable

8 to the consolidation of branches by a national bank9 ing association involved in an interstate merger.’’;

10 and

11 (7) in paragraph (4) of section 3, by inserting

12 ‘‘or within any State in which a bank is authorized

13 to engage in an interstate consolidation, merger, or

14 other transaction pursuant to section 3(h) of the Bank

15 Holding Company Act of 1956,’’ after ‘‘within the

16 same State,’’.

17 SEC. 105. ACQUISITION OF INTERSTATE BRANCHES BY NA18 TIONAL AND STATE BANKS.

19 (a) ACQUISITION OF INTERSTATE BRANCHES BY

20 STATE BANKS.—Section 18(d) of the Federal Deposit In21 surance Act (12 U.S.C. 1828(d)) is amended by adding at

22 the end the following new paragraphs:

23 ‘‘(4) INTERSTATE BRANCHING BY STATE

24 BANKS.—
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1 ‘‘(A) IN GENERAL.—Beginning on the date

2 of enactment of this paragraph, notwithstanding

3 any other provision of law, a host State may, ex4 pressly by statute and not merely by implica5 tion, permit all out-of-State banks to acquire or

6 establish a branch in the host State on a basis

7 that does not have the effect of discriminating

8 against out-of-State banks, out-of-State bank

9 holding companies, or subsidiaries thereof. A

10 branch established under this paragraph shall be

11 operated in accordance with the procedures, re12 strictions, and requirements set forth in section

13 3(h) of the Bank Holding Company Act of 1956,

14 and the provisions of that section shall apply to

15 the branch as if the branch resulted from a com16 bination effected in accordance with paragraph

17 (1) of that section 3(h).

18 ‘‘(B) FDIC APPROVAL.—A State

19 nonmember bank may acquire, establish, and op20 erate a branch under this paragraph only if the

21 bank is adequately capitalized and adequately

22 managed and with the prior consent of the Cor23 poration.

24 ‘‘(5) DEFINITIONS.—For purposes of this sub25 section—
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1 ‘‘(A) the term ‘host State’ means a State in

2 which a bank acquires, establishes, or maintains

3 a branch, other than the State in which the bank

4 is located and engaged in the business of bank5 ing;

6 ‘‘(B) a bank shall be deemed to be ‘lo7 cated’—

8 ‘‘(i) in the case of a State bank, in the

9 State in which it was chartered; and

10 ‘‘(ii) in the case of a national bank, in

11 the State in which its main office is located;

12 and

13 ‘‘(C) the term ‘adequately capitalized’ has

14 the same meaning as in section 38.’’.

15 (b) INTERSTATE BRANCHING BY NATIONAL BANKS.—

16 Section 5155 of the Revised Statutes (12 U.S.C. 36) is

17 amended—

18 (1) by redesignating subsections (d) through (h)

19 as subsections (e) through (i), respectively; and

20 (2) by inserting after subsection (c) the following

21 new subsection:

22 ‘‘(d) INTERSTATE BRANCHING BY NATIONAL BANKS.—

23 ‘‘(1) APPROVALS AUTHORIZED.—Notwithstand24 ing any other provision of law, the Comptroller of the

25 Currency may approve an application under this
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1 subsection for a national bank that is adequately cap2 italized and adequately managed to acquire or estab3 lish a branch in a host State if the host State ex4 pressly permits, pursuant to section 18(d)(4) of the

5 Federal Deposit Insurance Act, all out-of-State banks

6 to establish such branches. Each such branch shall be

7 operated in accordance with the procedures, restric8 tions, and requirements set forth in section 3(h) of the

9 Bank Holding Company Act of 1956, and the provi10 sions of that section shall apply to the branch as if

11 the branch resulted from a combination effected in ac12 cordance with paragraph (1) of that section 3(h).

13 ‘‘(2) DEFINITIONS.—For purposes of this sub14 section—

15 ‘‘(A) the term ‘host State’ means the State

16 in which a national bank establishes a branch

17 under paragraph (1); and

18 ‘‘(B) the term ‘adequately capitalized’ has

19 the same meaning as in section 38 of the Federal

20 Deposit Insurance Act.’’.

21 SEC. 106. COMMUNITY REINVESTMENT ACT EVALUATION OF

22 BANKS WITH INTERSTATE BRANCHES.

23 (a) IN GENERAL.—Section 807 of the Community Re24 investment Act of 1977 (12 U.S.C. 2906) is amended by

25 adding at the end the following new subsections:
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1 ‘‘(d) INSTITUTIONS WITH INTERSTATE BRANCHES.—

2 ‘‘(1) STATE-BY-STATE EVALUATION.—In the case

3 of a regulated financial institution that maintains

4 domestic branches in 2 or more States, the appro5 priate Federal financial supervisory agency shall

6 prepare—

7 ‘‘(A) a written evaluation of the entire in8 stitution’s record of performance under this title,

9 as required by subsections (a), (b), and (c); and

10 ‘‘(B) for each State in which the institution

11 maintains 1 or more domestic branches, a sepa12 rate written evaluation of the institution’s record

13 of performance within such State under this

14 title, as required by subsections (a), (b), and (c).

15 ‘‘(2) MULTISTATE METROPOLITAN AREAS.—In

16 the case of a regulated financial institution that

17 maintains domestic branches in 2 or more States

18 within a multistate metropolitan area, the appro19 priate Federal financial supervisory agency shall pre20 pare a separate written evaluation of the institution’s

21 record of performance within such metropolitan area

22 under this title, as required by subsections (a), (b),

23 and (c). If the agency prepares a written evaluation

24 pursuant to this paragraph, the scope of the written
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1 evaluation required under paragraph (1)(B) shall be

2 adjusted accordingly.

3 ‘‘(3) CONTENT OF STATE LEVEL EVALUATION.—

4 A written evaluation prepared pursuant to paragraph

5 (1)(B) shall—

6 ‘‘(A) present the information required by

7 subparagraphs (A) and (B) of subsection (b)(1)

8 separately for each metropolitan area in which

9 the institution maintains 1 or more domestic

10 branch offices and separately for the remainder

11 of the nonmetropolitan area of the State if the

12 institution maintains 1 or more domestic branch

13 offices in such nonmetropolitan area; and

14 ‘‘(B) describe how the Federal financial su15 pervisory agency has performed the examination

16 of the institution, including a list of the individ17 ual branches examined.

18 ‘‘(e) DEFINITIONS.—For purposes of this section the

19 following definitions shall apply:

20 ‘‘(1) DOMESTIC BRANCH.—The term ‘domestic

21 branch’ means any branch office or other facility of

22 a regulated financial institution that accepts deposits,

23 located in any State.

24 ‘‘(2) METROPOLITAN AREA.—The term ‘metro25 politan area’ means any primary metropolitan
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1 statistical area, metropolitan statistical area, or con2 solidated metropolitan statistical area, as defined by

3 the Director of the Office of Management and Budget,

4 with a population of 250,000 or more, and any other

5 area identified by the appropriate Federal financial

6 supervisory agency.

7 ‘‘(3) STATE.—The term ‘State’ has the same

8 meaning as in section 3 of the Federal Deposit Insur9 ance Act.’’.

10 (b) SEPARATE PRESENTATION.—Section 807(b)(1) of

11 the Community Reinvestment Act of 1977 (12 U.S.C.

12 2906(b)(1)) is amended—

13 (1) by redesignating subparagraphs (A) through

14 (C) as clauses (i) through (iii), respectively;

15 (2) by striking ‘‘The public’’ and inserting the

16 following:

17 ‘‘(A) CONTENTS OF WRITTEN EVALUA18 TION.—The public’’; and

19 (3) by adding at the end the following new sub20 paragraph:

21 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.—

22 The information required by clauses (i) and (ii)

23 of subparagraph (A) shall be presented sepa24 rately for each metropolitan area in which a reg-
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1 ulated depository institution maintains one or

2 more domestic branch offices.’’.

3 SEC. 107. FLEXIBILITY IN CHOOSING BOARDS OF DIREC4 TORS.

5 Section 5146 of the Revised Statutes (12 U.S.C. 72)

6 is amended in the first sentence by striking ‘‘two-thirds’’

7 and inserting ‘‘a majority’’.

8 SEC. 108. GAO REPORT ON DATA COLLECTION UNDER

9 INTERSTATE BRANCHING.

10 (a) IN GENERAL.—The Comptroller General shall sub11 mit to the Congress, not later than 9 months after the date

12 of enactment of this Act, a report that—

13 (1) examines statutory and regulatory require14 ments for insured depository institutions to collect

15 and report deposit and lending data; and

16 (2) determines what modifications to such re17 quirements are needed, so that implementing the

18 interstate branching provisions contained in this Act

19 results in no material loss of information important

20 to regulatory or congressional oversight of insured de21 pository institutions.

22 (b) CONSULTATION.—The Comptroller General, in pre23 paring the report required by this section, shall consult with

24 individuals representing the appropriate Federal banking
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1 agencies, insured depository institutions, consumers, com2 munity groups, and other interested parties.

3 (c) DEFINITIONS.—For purposes of this section, the

4 terms ‘‘appropriate Federal banking agency’’ and ‘‘insured

5 depository institution’’ have the same meanings as in sec6 tion 3 of the Federal Deposit Insurance Act.

7 SEC. 109. MAXIMUM INTEREST RATE ON CERTAIN FmHA

8 LOANS.

9 (a) IN GENERAL.—Section 307(a) of the Consolidated

10 Farm and Rural Development Act (7 U.S.C. 1927(a)) is

11 amended—

12 (1) in paragraph (3)(A), by striking ‘‘Except’’

13 and inserting ‘‘Notwithstanding the provisions of the

14 constitution or laws of any State limiting the rate or

15 amount of interest that may be charged, taken, re16 ceived, or reserved, except’’; and

17 (2) in paragraph (5)—

18 (A) by striking ‘‘(5) The’’ and inserting

19 ‘‘(5)(A) Except as provided in subparagraph

20 (B), the’’; and

21 (B) by adding at the end the following new

22 subparagraph:

23 ‘‘(B) In the case of a loan made under section 310B

24 as a guaranteed loan, subparagraph (A) shall apply not25 withstanding the provisions of the constitution or laws of
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1 any State limiting the rate or amount of interest that may

2 be charged, taken, received, or reserved.’’.

3 (b) EFFECTIVE DATES.—

4 (1) IN GENERAL.—Except as provided in para5 graphs (2) and (3), the amendments made by sub6 section (a) shall apply to a loan made, insured, or

7 guaranteed under the Consolidated Farm and Rural

8 Development Act (7 U.S.C. 1921 et seq.) in a State

9 on or after the date of enactment of this Act.

10 (2) STATE OPTION.—Except as provided in

11 paragraph (3), the amendments made by subsection

12 (a) shall not apply to a loan made, insured, or guar13 anteed under the Consolidated Farm and Rural De14 velopment Act in a State after the date (that occurs

15 during the 3-year period beginning on the date of en16 actment of this Act) on which the State adopts a law

17 or certifies that the voters of the State have voted in

18 favor of a provision of the constitution or law of the

19 State that states that the State does not want the

20 amendments made by subsection (a) to apply with re21 spect to loans made, insured, or guaranteed under

22 such Act in the State.

23 (3) TRANSITIONAL PERIOD.—In any case in

24 which a State takes an action described in paragraph

25 (2), the amendments made by subsection (a) shall
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1 continue to apply to a loan made, insured, or guar2 anteed under the Consolidated Farm and Rural De3 velopment Act in the State after the date the action

4 was taken pursuant to a commitment for the loan

5 that was entered into during the period beginning on

6 the date of enactment of this Act, and ending on the

7 date on which the State takes the action.

8 TITLE II—BANK AND THRIFT

9 STATUTE OF LIMITATIONS

10 SEC. 201. SHORT TITLE.

11 This title may be cited as the ‘‘Bank and Thrift

12 Statute of Limitations Clarification Act of 1994’’.

13 SEC. 202. AMENDMENT TO FEDERAL DEPOSIT INSURANCE

14 ACT.

15 Section 11(d)(14)(B)(i) of the Federal Deposit Insur16 ance Act (12 U.S.C. 1821(d)(14)(B)(i)) is amended by in17 serting after ‘‘receiver’’ the following: ‘‘, regardless of wheth18 er the claim may have been barred under any otherwise

19 applicable statute of limitation at the date of such appoint20 ment, unless such claim was barred more than 5 years be21 fore the date of such appointment’’.

22 SEC. 203. APPLICABILITY.

23 The amendment made by section 202 shall apply to

24 all actions pending or brought by the Federal Deposit In-
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1 surance Corporation and the Resolution Trust Corporation

2 as conservator or receiver on or after August 9, 1989.

3 TITLE III—FINANCIAL SERVICES

4 SEC. 301. SHORT TITLE.

5 This title may be cited at the ‘‘National Commission

6 on Financial Services Act’’.

7 SEC. 302. ESTABLISHMENT OF NATIONAL COMMISSION ON

8 FINANCIAL SERVICES.

9 (a) ESTABLISHMENT.—There is established a commis10 sion to be known as the ‘‘National Commission on Finan11 cial Services’’ (hereafter in this title referred to as the

12 ‘‘Commission’’).

13 (b) MEMBERSHIP OF THE COMMISSION.—

14 (1) COMPOSITION.—The Commission shall be

15 composed of 7 voting members and 3 nonvoting mem16 bers appointed as follows:

17 (A) Three voting members and 1 nonvoting

18 member to be appointed by the President.

19 (B) Two voting members and 1 nonvoting

20 member to be appointed jointly by the Majority

21 Leader of the Senate and the Speaker of the

22 House of Representatives.

23 (C) Two voting members and 1 nonvoting

24 member appointed jointly by the Minority Lead-
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1 er of the Senate and the Minority Leader of the

2 House of Representatives.

3 (2) QUALIFICATIONS.—

4 (A) VOTING MEMBERS.—

5 (i) IN GENERAL.—Voting members ap6 pointed pursuant to paragraph (1) shall be

7 appointed from among individuals who are

8 users of the financial services system, and

9 shall include representatives of business, ag10 riculture, and consumers.

11 (ii) PROHIBITION.—No voting member

12 of the Commission shall be an employee of

13 the Federal Government or any State gov14 ernment.

15 (B) NONVOTING MEMBERS.—Nonvoting

16 members appointed pursuant to paragraph (1)

17 shall be appointed from among individuals who

18 are experts in finance or in the financial services

19 system.

20 (3) APPOINTMENT.—The appointment of the

21 members of the Commission shall be made not later

22 than June 30, 1994.

23 (4) TERMS.—Members shall be appointed for the

24 life of the Commission.
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1 (5) VACANCIES.—A vacancy in the Commission

2 shall not affect the powers of the Commission and

3 shall be filled in the same manner in which the origi4 nal appointment was made.

5 (6) CHAIRPERSON.—The President shall des6 ignate 1 of the voting members of the Commission to

7 serve as the chairperson of the Commission (hereafter

8 in this title referred to as the ‘‘Chairperson’’).

9 (7) INITIAL MEETING.—Not later than 30 days

10 after the date on which all members of the Commis11 sion have been appointed, the Commission shall hold

12 its first meeting.

13 (8) MEETINGS.—The Commission shall meet at

14 the call of the Chairperson.

15 (9) QUORUM.—A majority of the members of the

16 Commission shall constitute a quorum, but a lesser

17 number of members may hold hearings.

18 SEC. 303. DUTIES OF THE COMMISSION.

19 (a) STUDY.—

20 (1) IN GENERAL.—The Commission shall, after

21 consultation in accordance with paragraph (3), con22 duct a study of all matters relating to the strengths

23 and weaknesses of the United States financial services

24 system in meeting the needs of users of the system, in25 cluding all laws, regulations, and policies that govern
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1 part or all of the financial services industry or that

2 affect the ability of the financial services industry to

3 effectively and efficiently meet the needs of—

4 (A) the United States economy;

5 (B) individual consumers and households;

6 (C) communities;

7 (D) agriculture;

8 (E) small-, medium-, and large-sized busi9 nesses (including the need for debt, equity, and

10 other financial needs);

11 (F) governmental and nonprofit entities;

12 and

13 (G) exporters and other users of inter14 national financial services.

15 (2) MATTERS STUDIED.—The study required

16 under paragraph (1) shall include consideration of—

17 (A) the changes underway in the national

18 and international economies and the financial

19 services industry, and the impact of such changes

20 on the ability of the financial services system to

21 efficiently meet the needs of the United States

22 economy and the users of the system during the

23 next 10 years and beyond;

24 (B) the adequacy of the existing framework

25 of Federal and State laws and regulations, and
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1 the extent to which Federal laws and regulations,

2 in an efficient and cost-effective manner—

3 (i) achieve consumer protection objec4 tives;

5 (ii) promote competition and prevent

6 anticompetitive acts and practices or undue

7 concentration;

8 (iii) ensure that the financial services

9 are delivered in a nondiscriminatory and

10 cost-efficient manner; and

11 (iv) ensure access to the financial serv12 ices system for all potential users of the sys13 tem, regardless of where such users are lo14 cated; and

15 (C) the extent to which the Federal regu16 latory structure impacts the achievement of the

17 objectives in subparagraph (B).

18 (3) CONSULTATION.—Consultation in accordance

19 with this paragraph means consultation with—

20 (A) the Board of Governors of the Federal

21 Reserve System;

22 (B) the Director of the Office of Thrift Su23 pervision;

24 (C) the Chairperson of the Federal Deposit

25 Insurance Corporation;
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1 (D) the Comptroller of the Currency;

2 (E) the Secretary of the Treasury;

3 (F) the Secretary of the Department of

4 Housing and Urban Development;

5 (G) the Securities Exchange Commission;

6 (H) the Commodities Futures Trading

7 Commission;

8 (I) the Director of the Congressional Budget

9 Office; and

10 (J) the Comptroller General of the United

11 States.

12 (b) RECOMMENDATIONS.—Based on the results of the

13 study conducted under subsection (a), the Commission shall

14 develop specific recommendations for changes in laws and

15 regulations to improve the operation of the United States

16 financial services system, including needed changes in the

17 Federal legislative and regulatory policies and in the Fed18 eral regulatory structure that would enhance—

19 (1) the ability of the financial services system, or

20 any part thereof, to respond to the needs of all poten21 tial users of the system;

22 (2) the systemic safety of the financial services

23 system;

24 (3) the cost of financial services to users of the

25 system;
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1 (4) the competitiveness of the various providers

2 of financial services;

3 (5) how funds are allocated to the financial serv4 ices system; and

5 (6) how funds are allocated by the financial serv6 ices system to users of the system or to specific cat7 egories of users.

8 (c) REPORT.—Not later than March 31, 1995, the

9 Commission shall submit to the President, the Speaker of

10 the House of Representatives, and the President pro tempore

11 of the Senate a report describing the activities of the Com12 mission, including the study conducted under subsection (a)

13 and any recommendations developed under subsection (b).

14 SEC. 304. POWERS OF THE COMMISSION.

15 (a) HEARINGS.—The Commission may hold such hear16 ings, sit and act at such times and places, take such testi17 mony, and receive such evidence as the Commission consid18 ers advisable to carry out this section.

19 (b) OBTAINING OFFICIAL DATA.—The Commission

20 may secure directly from any Federal department or agency

21 such information (other than information required by any

22 statute of the United States to be kept confidential by such

23 department or agency) as the Commission considers nec24 essary to carry out its duties under this section. Upon the

25 request of the Chairperson, the head of that department or
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1 agency shall furnish such nonconfidential information to

2 the Commission.

3 (c) POSTAL SERVICES.—The Commission may use the

4 United States mails in the same manner and under the

5 same conditions as other departments and agencies of the

6 Federal Government.

7 SEC. 305. COMMISSION PERSONNEL MATTERS.

8 (a) COMPENSATION OF MEMBERS.—Each member of

9 the Commission who is not an officer or employee of the

10 Federal Government shall be compensated at a rate equal

11 to the daily equivalent of the annual rate of basic pay pre12 scribed for level IV of the Executive Schedule under section

13 5315 of title 5, United States Code, for each day (including

14 travel time) during which such member is engaged in the

15 performance of the duties of the Commission. All members

16 of the Commission who are officers or employees of the Unit17 ed States shall serve without compensation in addition to

18 that received for their services as officers or employees of

19 the United States.

20 (b) TRAVEL EXPENSES.—The members of the Commis21 sion shall be allowed travel expenses, including per diem

22 in lieu of subsistence, at rates authorized for employees of

23 agencies under subchapter I of chapter 57 of title 5, United

24 States Code, while away from their homes or regular places
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1 of business in the performance of services for the Commis2 sion.

3 (c) STAFF.—

4 (1) IN GENERAL.—The Chairperson may, with5 out regard to the civil service laws and regulations,

6 appoint and terminate an executive director and not

7 more than 2 additional professional staff members to

8 enable the Commission to perform its duties. The em9 ployment of an executive director shall be subject to

10 confirmation by the Commission.

11 (2) COMPENSATION.—The Chairperson may fix

12 the compensation of the executive director and other

13 personnel without regard to the provisions of chapter

14 51 and subchapter III of chapter 53 of title 5, United

15 States Code, relating to the classification of positions

16 and General Schedule pay rates, except that the rate

17 of pay for the executive director and other personnel

18 may not exceed the rate payable for level V of the Ex19 ecutive Schedule under section 5316 of title 5, United

20 States Code.

21 (d) DETAIL OF FEDERAL EMPLOYEES.—Upon the re22 quest of the Chairperson, any Federal Government employee

23 may be detailed to the Commission without reimbursement,

24 and such detail shall be without interruption or loss of civil

25 service status or privilege.
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1 (e) PROCUREMENT OF TEMPORARY AND INTERMIT2 TENT SERVICES.—The Chairperson may procure temporary

3 and intermittent services under section 3109(b) of title 5,

4 United States Code, at rates for individuals which do not

5 exceed the daily equivalent of the annual rate of basic pay

6 prescribed for level V of the Executive Schedule under sec7 tion 5316 of title 5, United States Code.

8 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

9 request of the Chairperson, the Administrator of General

10 Services shall provide to the Commission, on a reimbursable

11 basis, the administrative support services necessary for the

12 Commission to carry out its responsibilities under this sec13 tion.

14 SEC. 306. TERMINATION OF COMMISSION.

15 The Commission shall terminate 30 days after the date

16 of submission of the report required under section 303(c).

17 All records and papers of the Commission shall thereupon

18 be delivered by the Administrator of General Services for

19 deposit in the National Archives.

20 SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

21 (a) IN GENERAL.—There are authorized to be appro22 priated such sums as may be necessary to carry out this

23 Act.
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1 (b) AVAILABILITY.—Any sums appropriated under the

2 authorization contained in this section shall remain avail3 able, without fiscal year limitation, until expended.

4 TITLE IV—GENERAL PROVISIONS

5 SEC. 401. MOUNT RUSHMORE COMMEMORATIVE COIN ACT.

6 (a) DISTRIBUTION OF SURCHARGES.—Section 8 of the

7 Mount Rushmore Commemorative Coin Act (104 Stat. 314;

8 31 U.S.C. 5112 note) is amended by striking paragraphs

9 (1) and (2) and inserting the following:

10 ‘‘(1) the first $18,750,000 shall be paid during

11 fiscal year 1994 by the Secretary to the Society to as12 sist the Society’s efforts to improve, enlarge, and ren13 ovate the Mount Rushmore National Memorial; and

14 ‘‘(2) the remainder shall be returned to the Fed15 eral Treasury for purposes of reducing the national

16 debt.’’.

17 (b) RETROACTIVE EFFECT.—If, prior to the enactment

18 of this Act, any amount of surcharges have been received

19 by the Secretary of the Treasury and paid into the United

20 States Treasury pursuant to section 8(1) of the Mount

21 Rushmore Commemorative Coin Act, as in effect prior to

22 the enactment of this Act, that amount shall be paid out

23 of the Treasury to the extent necessary to comply with sec24 tion 8(1) of the Mount Rushmore Commemorative Coin Act,

25 as in effect after the enactment of this Act. Amounts paid
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1 pursuant to the preceding sentence shall be out of funds not

2 otherwise appropriated.

3 (c) NUMISMATIC OPERATING PROFITS.—Nothing in

4 this section shall be construed to affect the Secretary of the

5 Treasury’s right to derive operating profits from numis6 matic programs for use in supporting the United States

7 Mint’s numismatic operations and programs or to allow the

8 distribution of operating profits from the Numismatic Pub9 lic Enterprise Fund to a recipient organization under any

10 numismatic program.

11 SEC. 402. SENSE OF THE SENATE CONCERNING MULTILAT12 ERAL EXPORT CONTROLS.

13 (a) FINDINGS.—The Senate finds that—

14 (1) the United States and its allies have agreed

15 that as of March 31, 1994, the Coordinating Commit16 tee (hereafter referred to as ‘‘COCOM’’), the multilat17 eral body that controlled strategic exports to the

18 former Soviet Union and other Communist States,

19 ceased to exist;

20 (2) no successor has yet been established to re21 place the COCOM;

22 (3) threats to United States security are posed

23 by rogue regimes that support terrorism as a matter

24 of national policy;
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1 (4) a critical element of the United States pro2 posal for a successor to COCOM is that supplier na3 tions agree on a list of militarily critical products

4 and technologies that would be denied to a handful of

5 rogue regimes;

6 (5) some allies of the United States oppose this

7 principle and instead propose that such controls be

8 left to ‘‘national discretion’’, effectively replacing mul9 tilateral export controls with a loose collection of uni10 lateral export control policies which would be adverse

11 for United States security and economic interests;

12 (6) multilateral controls are needed to thwart ef13 forts of Iran, Iraq, North Korea, Libya, and other

14 rogue regimes, to acquire arms and sensitive dual-use

15 goods and technologies that could contribute to their

16 efforts to build weapons of mass destruction; and

17 (7) the United States would be forced to make

18 the difficult choice of choosing between unilateral ex19 port controls under the Export Administration Act of

20 1979, which would put American companies at a

21 competitive disadvantage worldwide, or allowing ex22 ports that could seriously harm the national security

23 interests of the United States.

24 (b) SENSE OF THE SENATE.—It is the sense of the Sen25 ate that—
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1 (1) the President should work to achieve a clear2 ly defined and enforceable agreement with allies of the

3 United States which establishes a multilateral export

4 control system for the proliferation of products and

5 technologies to rogue regimes that would jeopardize

6 the national security of the United States; and

7 (2) the President should persuade allies of the

8 United States to promote mutual security interests by

9 preventing rogue regimes from obtaining militarily

10 critical products and technologies.

Attest:

Secretary.
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