I
105TH CONGRESS
1ST SESSION
H. R. 1722
To amend various banking laws.
IN THE HOUSE OF REPRESENTATIVES
MAY 22, 1997
Mr. FOX of Pennsylvania introduced the following bill; which was referred to
the Committee on Banking and Financial Services, and in addition to the
Committee on Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend various banking laws.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Bank Regulation Ad-
justment Act’’.
SEC. 2. CRIMINAL LIABILITY ESTABLISHED FOR CERTAIN
ACTIVITIES RELATING TO CREDIT CARDS.
Section 134 of the Truth in Lending Act (15 U.S.C.
1644) is amended—
(1) in the provision designated as subsection
(d), by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C);
(2) in the provision designated as subsection
(e), by redesignating paragraphs (1) and (2) as sub-
paragraphs (A) and (B);
(3) by redesignating the provisions designated
as subsections (a) through (f) as paragraphs (1)
through (6), respectively;
(4) by moving the left margin of paragraphs (1)
through (6) (as so redesignated by paragraph (3) of
this section) 2 ems to the right;
(5) by striking ‘‘or’’ at the end of paragraph
(5) (as so redesignated by paragraph (3) of this sec-
tion);
(6) by striking ‘‘obtained—’’ at the end of
paragraph (6) (as so redesignated by paragraph (3)
of this section) and inserting a semicolon;
(7) by inserting immediately after paragraph
(6) (as so redesignated) the following new para-
graphs:
‘‘(7) Whoever, with unlawful or fraudulent in-
tent, utilizes, or conspires to utilize, an instrumen-
tality of interstate or foreign commerce to notify a
creditor in accordance with section 161 that a state-
ment of account contains a billing error with regard
to a transaction, knowing the statement to be cor-
rect with regard to such transaction; or
‘‘(8) Whoever, with unlawful or fraudulent in-
tent, utilizes, or conspires to utilize, an instrumen-
tality of interstate or foreign commerce to notify a
card issuer of an unauthorized use of a credit card
with regard to a transaction knowing the use of the
credit card in connection with such transaction to
have been authorized,’’;
(8) by inserting the following subsection des-
ignation and heading immediately preceding para-
graph (1) (as so redesignated):
‘‘(a) IN GENERAL.—’’; and
(9) by adding at the end the following new sub-
section:
‘‘(b) OBTAINING CREDIT CARD
BY FRAUDULENT
MEANS.—Whoever, with unlawful or fraudulent intent,
utilizes, or conspires to utilize an instrumentality of inter-
state or foreign commerce—
‘‘(1) to submit an application for a credit card
to a credit card issuer knowing the application to be
forged, fictitious, altered, or fraudulent;
‘‘(2) to submit false or misleading information
to a credit card issuer; or
‘‘(3) to apply for 2 or more credit cards from
1 or more credit card issuers within any 1-year pe-
riod,
shall be fined in accordance with title 18, United States
Code, imprisoned for not more than 10 years, or both.’’.
SEC. 3. DECREASE IN CERTAIN BURDENS ASSOCIATED
WITH CURRENCY TRANSACTION REPORTING
REQUIREMENTS.
Section 5313 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(h) ADMINISTRATIVE ACTION REQUIRED.—
‘‘(1) ANNUAL INFLATION ADJUSTMENT.—Any
amount established by the Secretary under sub-
section (a) which defines a transaction for which a
report is required under such subsection shall be ad-
justed annually after December 31, 1997, by the an-
nual percentage increase in the Consumer Price
Index for Urban Wage Earners and Clerical Work-
ers published by the Bureau of Labor Statistics.’’.
‘‘(2) INFREQUENT FILERS.—
‘‘(A) IN GENERAL.—If the number of re-
ports filed by a depository institution under
subsection (a) averages less than 50 per month,
the depository institution may file such reports
on a quarterly basis.
‘‘(B) REPORTING OF SUSPICIOUS TRANS-
ACTIONS
NOT
AFFECTED.—Subparagraph (A)
shall not be construed as affecting any obliga-
tion of a depository institution to promptly re-
port any suspicious transaction in accordance
with section 5318(g).’’.
SEC. 4. REPEAL OF ‘‘DUE ON DEMAND’’ REQUIREMENT FOR
LOANS TO INSIDERS.
Section 22(g) of the Federal Reserve Act (12 U.S.C.
375a) is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘and’’ after the semicolon
at the end of subparagraph (B);
(B) by striking ‘‘; and’’ at the end of sub-
paragraph (C) and inserting a period; and
(C) by striking subparagraph (D);
(2) by striking paragraph (6); and
(3) by redesignating paragraphs (7), (8), (9),
and (10) as paragraphs (6), (7), (8), and (9), re-
spectively.
SEC. 5. REPEAL OF AUTHORITY TO ASSESS EXAMINATION
FEES ON STATE DEPOSITORY INSTITUTIONS.
(a) STATE MEMBER BANKS.—The 8th undesignated
paragraph of section 9 of the Federal Reserve Act (12
U.S.C. 326) is amended by striking the penultimate sen-
tence (relating to assessments for examinations).
(b) NONMEMBER
STATE
DEPOSITORY
INSTITU-
TIONS.—Section 10(e)(1) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1820(e)(1)) is amended by inserting
‘‘Federal’’ before ‘‘depository institution’’.
SEC. 6. EFFECTIVE DATE OF BANKING REGULATIONS.
(a) IN GENERAL.—Except as provided in subsection
(b), no regulation prescribed by any Federal banking
agency shall take effect before the end of the 180-day pe-
riod beginning on the date the regulation is published in
final form in the Federal Register unless the Federal law
under which such regulation is prescribed specifies an ef-
fective date for such regulation.
(b) EXCEPTIONS FOR REGULATIONS REDUCING BUR-
DENS
ON DEPOSITORY INSTITUTIONS.—Subsection (a)
shall not apply to any regulation the purpose of which is
to reduce the administrative burden on depository institu-
tions.
(c) DEFINITIONS.—For purposes of this section, the
terms ‘‘depository institution’’ and ‘‘Federal banking
agency’’ have the meaning given to such terms in section
3 of the Federal Deposit Insurance Act.
SEC. 7. OTHER PROVISIONS.
(a) FIELD OF MEMBERSHIP AUTHORITY.—Section
109 of the Federal Credit Union Act (12 U.S.C. 1759)
is amended by striking ‘‘Federal credit union membership
shall be limited to groups having a common bond’’ and
inserting ‘‘the membership of any Federal credit union
shall be limited to groups having common bonds’’.
(b) EXPANSION OF VOTING PERIOD BEFORE CON-
VERSION TO ANOTHER FORM OF DEPOSITORY INSTITU-
TION.—Any regulation prescribed by the National Credit
Union Administration under the Federal Credit Union Act
which requires a vote by the members of an insured credit
union (as defined in section 101(7) of the Federal Credit
Union Act) in a special meeting or by mail to approve or
disapprove a proposal by the credit union to transfer all
or any portion of the deposits of the credit union to an
insured depository institution (as defined in section 3(c)
of the Federal Deposit Insurance Act) shall allow the cred-
it union to provide notice of such vote up to 90 days before
the date of the vote.
SEC. 8. EXEMPTION FOR FEES AND INCOME ATTRIBUTABLE
TO CERTAIN ASSETS OF DEPOSITORY INSTI-
TUTIONS.
Notwithstanding any other provision of Federal law,
the fees and income received by a depository institution
(as defined in section 3(c) of the Federal Deposit Insur-
ance Act) which are attributable to the 1st $350,000,000
of the total assets of such institution shall be excluded
from gross income of such institution for purposes of any
Federal tax on income for taxable years of the institution
which begin after December 31, 1997.
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