*

II

106TH CONGRESS

2D SESSION S. 2589

To amend the Federal Deposit Insurance Act to require periodic cost of

living adjustments to the maximum amount of deposit insurance available

under that Act, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 18, 2000

Mr. JOHNSON (for himself and Mr. TORRICELLI) introduced the following bill;

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

A BILL

To amend the Federal Deposit Insurance Act to require

periodic cost of living adjustments to the maximum

amount of deposit insurance available under that Act,

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 ‘‘Meeting America’s In5 vestment Needs in Small Towns Act of 2000’’.
2

*

•S 2589 IS

1 SEC. 2. PERIODIC ADJUSTMENT TO MAXIMUM AMOUNT OF

2 DEPOSIT INSURANCE COVERAGE.

3 (a) IN GENERAL.—Section 11(a)(1) of the Federal

4 Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended

5 by striking subparagraph (B) and inserting the following:

6 ‘‘(B) NET AMOUNT OF INSURED DE7 POSIT.—

8 ‘‘(i) IN GENERAL.—Subject to clause

9 (ii), the net amount due to any depositor

10 at an insured depository institution shall

11 not exceed $100,000, as determined in ac12 cordance with subparagraphs (C) and (D).

13 ‘‘(ii) INFLATION ADJUSTMENT.—As of

14 the 1st day of the 3-year period beginning

15 on January 1, 2001, and the 1st day of

16 each subsequent 3-year period, the max17 imum net amount due to any depositor at

18 an insured depository institution under

19 clause (i) shall be increased by the product

20 of—

21 ‘‘(I) the amount described in

22 clause (i); and

23 ‘‘(II) the cost of living adjust24 ment determined under section 1(f)(3)

25 of the Internal Revenue Code of 1986,
3

*

•S 2589 IS

1 at the beginning of each such 3-year

2 period, in accordance with clause (iii).

3 ‘‘(iii) RULE OF APPLICATION.—Sec4 tion 1(f)(3)(B) of the Internal Revenue

5 Code of 1986, shall be applied, for pur6 poses of clause (ii) of this subsection, by

7 substituting ‘calendar year 1980’ for ‘cal8 endar year 1992’.

9 ‘‘(iv) ROUNDING.—If the amount de10 termined under clause (ii) for any period is

11 not a multiple of $1,000, the amount so

12 determined shall be rounded to the nearest

13 $1,000.

14 ‘‘(v) PUBLICATION.—Not later than

15 January 15 of the 1st year of each 3-year

16 period referred to in clause (ii), the Board

17 of Directors shall publish in the Federal

18 Register the maximum net amount which

19 may be due to any depositor at an insured

20 depository institution during such 3-year

21 period.’’.

22 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

23 The Federal Deposit Insurance Act (12 U.S.C. 1811 et

24 seq.) is amended—
4

*

•S 2589 IS

1 (1) in paragraphs (1) and (3) of section 7(i)

2 (12 U.S.C. 1817(i)(1), (3)), by striking ‘‘$100,000’’

3 each place it appears and inserting ‘‘the amount de4 termined under section 11(a)(1)(B)’’;

5 (2) in section 11 (12 U.S.C. 1821)—

6 (A) in subsection (a)(2)(A), in the material

7 immediately following clause (v), by striking ‘‘in

8 an amount not to exceed $100,000 per ac9 count’’ the second place it appears;

10 (B) in paragraphs (2)(A) and (3)(A) of

11 subsection (a), by striking ‘‘$100,000’’ each

12 place it appears and inserting ‘‘the amount de13 termined under paragraph (1)(B)’’; and

14 (C) in subsection (m)(6), by striking

15 ‘‘$100,000’’ and inserting ‘‘the amount deter16 mined under subsection (a)(1)(B)’’;

17 (3) in section 18(a)(1)(B) (12 U.S.C.

18 1828(a)(1)(B), by striking ‘‘$100,000’’ and insert19 ing ‘‘[$ll], the bracketed portion to be filled by

20 the amount determined under section 11(a)(1)(B)’’;

21 and

22 (4) in section 43(d) (12 U.S.C. 1831t(d)), by

23 striking ‘‘$100,000’’ and inserting ‘‘the amount de24 termined under section 11(a)(1)(B).’’.

Æ