I
107TH CONGRESS
1ST SESSION
H. R. 746
To amend the Federal Deposit Insurance Act to require periodic cost of
living adjustments to the maximum amount of deposit insurance available
under such Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 2001
Mr. HEFLEY (for himself, Mr. GILLMOR, Mr. JONES of North Carolina, Mrs.
JONES of Ohio, Mrs. KELLY, Mr. RILEY, Mr. BOSWELL, Mr. COMBEST,
Mr. STENHOLM, Ms. BALDWIN, Mr. BERRY, Mr. BOUCHER, Mr. BRYANT,
Mr. DAVIS of Illinois, Ms. DEGETTE, Mr. DOYLE, Mr. EDWARDS, Mrs.
EMERSON, Mr. GOODE, Mr. GORDON, Mr. HILL, Mr. HINOJOSA, Mr.
ISTOOK, Mr. JOHNSON of Illinois, Mr. LAHOOD, Mr. LATHAM, Mr.
MCINNIS, Mr. NETHERCUTT, Mr. NORWOOD, Mr. OSBORNE, Mr. PETER-
SON of Pennsylvania, Mr. RUSH, Mr. SCHAFFER, Mr. SESSIONS, Mr.
SMITH of New Jersey, Mr. TANCREDO, Mr. TERRY, Mr. THUNE, and Mr.
UDALL of Colorado) introduced the following bill; which was referred to
the Committee on Financial Services
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 such Act,
and for other purposes.
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 ‘‘Federal Deposit Insur-
ance Corporation Adjustment Act’’.
SEC. 2. PERIODIC ADJUSTMENT TO MAXIMUM AMOUNT OF
DEPOSIT INSURANCE COVERAGE.
(a) IN GENERAL.—Section 11(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended
by striking subparagraph (B) and inserting the following
new subparagraph:
‘‘(B) NET
AMOUNT
OF
INSURED
DE-
POSIT.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the net amount due to any depositor
at an insured depository institution shall
not exceed $100,000, as determined in ac-
cordance with subparagraphs (C) and (D).
‘‘(ii) INFLATION ADJUSTMENT.—As of
the 1st day of the 3-year period beginning
on January 1, 2002, and the 1st day of
each subsequent 3-year period, the max-
imum net amount due to any depositor at
an insured depository institution under
clause (i) shall be increased by the product
of—
‘‘(I) the amount described in
clause (i); and
‘‘(II) the cost of living adjust-
ment determined under section 1(f)(3)
of the Internal Revenue Code of 1986
at the beginning of each such 3-year
period, in accordance with clause (iii).
‘‘(iii) RULE
OF
APPLICATION.—Sec-
tion 1(f)(3)(B) of the Internal Revenue
Code of 1986 shall be applied, for purposes
of clause (ii) of this subsection, by sub-
stituting ‘calendar year 1980’ for ‘calendar
year 1992’.
‘‘(iv) ROUNDING.—If the amount de-
termined under clause (ii) for any period is
not a multiple of $1,000, the amount so
determined shall be rounded to the nearest
$1,000.
‘‘(v) PUBLICATION.—Not later than
January 15 of the 1st year of each 3-year
period referred to in clause (ii), the Board
of Directors shall publish in the Federal
Register the maximum net amount which
may be due to any depositor at an insured
depository institution during such 3-year
period.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraphs (2)(A) and (3)(A) of section
11(a) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)) are each amended by striking
‘‘$100,000’’ and inserting ‘‘the amount determined
under paragraph (1)(B)’’.
(2) Paragraph (6) of section 11(m) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(m)) is
amended by striking ‘‘$100,000’’ and inserting ‘‘the
amount determined under subsection (a)(1)(B)’’.
(3) The following provisions of the Federal De-
posit Insurance Act are each amended by striking
‘‘$100,000’’ and inserting ‘‘the amount determined
under section 11(a)(1)(B)’’.
(A) Paragraphs (1) and (3) of section 7(i)
(12 U.S.C. 1817(i)).
(B) Subsection (d) of section 43 (12
U.S.C. 1831t).
Æ