II

104TH CONGRESS

1ST SESSION S. 562

To provide for State bank representation on the Board of Directors of

the Federal Deposit Insurance Corporation, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 15, 1995

Mr. GRAMM (for himself and Mr. SHELBY) introduced the following bill; which

was read twice and referred to the Committee on Banking, Housing, and

Urban Affairs

A BILL

To provide for State bank representation on the Board of

Directors of the Federal Deposit Insurance Corporation,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘State Bank Represen5 tation Act’’.
2

S 562 IS

1 SEC. 2. STATE BANK REPRESENTATION ON FDIC BOARD OF

2 DIRECTORS.

3 (a) IN GENERAL.—Section 2(a)(1) of the Federal

4 Deposit Insurance Act (12 U.S.C. 1812(a)(1)) is amend5 ed—

6 (1) by striking ‘‘5 members’’ and inserting ‘‘6

7 members’’;

8 (2) in subparagraph (B), by striking ‘‘and’’ at

9 the end;

10 (3) in subparagraph (C), by striking the period

11 at the end and inserting ‘‘; and’’; and

12 (4) by adding at the end the following:

13 ‘‘(D) 1 of whom shall be appointed by the

14 President, by and with the advice and consent

15 of the Senate, from among individuals serving

16 as State bank commissioners or supervisors (or

17 the functional equivalent thereof) as of the date

18 on which the appointment is made.’’.

19 (b) LIMITATION.—Section 2(b) of the Federal De20 posit Insurance Act (12 U.S.C. 1812(b)) is amended—

21 (1) in paragraph (1), by striking ‘‘appointed

22 members’’ and inserting ‘‘members appointed pursu23 ant to subsection (a)(1)(C)’’; and

24 (2) in paragraph (2), by striking ‘‘appointed

25 members’’ and inserting ‘‘members appointed pursu26 ant to subsection (a)(1)(C)’’.
3

S 562 IS

1 (c) TERMS.—Section 2(c)(1) of the Federal Deposit

2 Insurance Act (12 U.S.C. 1812(c)(1)) is amended—

3 (1) by striking ‘‘Each appointed member’’ and

4 inserting the following:

5 ‘‘(A) IN GENERAL.—Each member ap6 pointed pursuant to subsection (a)(1)(C)’’; and

7 (2) by adding at the end the following:

8 ‘‘(B) STATE BANK REPRESENTATIVES.—

9 ‘‘(i) IN GENERAL.—Except as pro10 vided in clause (ii), each member appointed

11 pursuant to subsection (a)(1)(D) shall be

12 appointed for a single term of 2 years.

13 ‘‘(ii) EXCEPTION.—If a member ap14 pointed pursuant to subsection (a)(1)(D)

15 ceases to be a State banking commissioner

16 or supervisor (or functional equivalent

17 thereof) on a date prior to the expiration

18 of the 2-year period described in clause (i),

19 such member’s membership on the Board

20 of Directors shall terminate on that date.’’.

21 (d) VACANCIES.—Section 2(d)(1) of the Federal De22 posit Insurance Act (12 U.S.C. 1812(d)(1)) is amended—

23 (1) by striking ‘‘Any vacancy’’ and inserting the

24 following:
4

S 562 IS

1 ‘‘(A) IN GENERAL.—Subject to the restric2 tions contained in subparagraph (B), any va3 cancy’’; and

4 (2) by adding at the end the following:

5 ‘‘(B) RESTRICTIONS.—

6 ‘‘(i) SAME INDIVIDUAL.—In filling a

7 vacancy on the Board of Directors pursu8 ant to subsection (a)(1)(D), the President

9 may not appoint an individual who has

10 previously served as a member of the

11 Board of Directors pursuant to subsection

12 (a)(1)(D).

13 ‘‘(ii) SAME STATE.—In filling a va14 cancy on the Board of Directors pursuant

15 to subsection (a)(1)(D) (other than a va16 cancy occurring under subsection

17 (c)(1)(B)(ii)), the President may not ap18 point an individual who is serving as the

19 State bank commissioner or supervisor (or

20 functional equivalent thereof) of the same

21 State as the member most recently ap22 pointed pursuant to subsection (a)(1)(D).’’.

23 (e) NONCOMPENSATION; TRAVEL EXPENSES.—Sec24 tion 2 of the Federal Deposit Insurance Act (12 U.S.C.

25 1812) is amended by adding at the end the following:
5

S 562 IS

1 ‘‘(g) PERSONNEL MATTERS RELATING TO STATE

2 BANK REPRESENTATIVES.—Members of the Board of Di3 rectors appointed pursuant to subsection (a)(1)(D)—

4 ‘‘(1) shall serve without compensation; and

5 ‘‘(2) shall be allowed travel expenses, including

6 per diem in lieu of subsistence, at rates authorized

7 for employees of agencies under subchapter I of

8 chapter 57 of title 5, United States Code, while

9 away from their homes or regular places of business

10 in the performance of services for the Board of

11 Directors.’’.

Æ