I
104TH CONGRESS
2D SESSION
H. R. 3407
To establish the Thrift Charter Merger Commission, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 7, 1996
Mr. ROTH introduced the following bill; which was referred to the Committee
on Banking and Financial Services, and in addition to the Committee on
Rules, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction of
the committee concerned
A BILL
To establish the Thrift Charter Merger Commission, 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; PURPOSES.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Thrift Charter Merger Commission Act of 1996’’.
(b) PURPOSE.—It is the purpose of this Act to estab-
lish a nonpartisan commission to—
(1) examine the complex legal and public poli-
cies issues involved in the proposed elimination of
savings association charters and the conversion of
such institutions into banks, the short- and long-
term consequences of such proposed actions on the
financial services industry and consumers, and other
related issues;
(2) make recommendations to the Congress on
the most efficient, fairest, and least disruptive way
to achieve the conversion of such institutions into
banks and resolve the legal, policy, and other issues
relating to the holding companies of such associa-
tions; and
(3) review ways to rationalize the regulation of
depository institutions and reorganize the Federal
banking agencies.
SEC. 2. ESTABLISHMENT.
There is hereby established a commission to be known
as the ‘‘Thrift Charter Merger Commission’’ (hereafter in
this Act referred to as the ‘‘Commission’’).
SEC. 3. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN
GENERAL.—The Commission shall be
composed of 8 members appointed by the President,
by and with the advise and consent of the Senate,
from among individuals especially qualified to serve
on such Commission by reason of their education,
training, and experience.
(2) NOMINATION
SCHEDULE.—The President
shall transmit to the Senate the nominations for ap-
pointment to the Commission by no later than Feb-
ruary 15, 1997.
(3) CONSULTATION
WITH
CONGRESS.—In se-
lecting individuals for nomination for appointments
to the Commission, the President should consult
with—
(A) the Speaker of the House of Rep-
resentatives concerning the appointment of 2
members;
(B) the majority leader of the Senate con-
cerning the appointment of 2 members;
(C) the minority leader of the House of
Representatives concerning the appointment of
1 member; and
(D) the minority leader of the Senate con-
cerning the appointment of 1 member.
(4) PROHIBITION ON APPOINTMENT OF FED-
ERAL OFFICERS OR EMPLOYEES TO COMMISSION.—
No officer or employee of any Federal department or
agency, including any member of the Board of Gov-
ernors of the Federal Reserve System, may be ap-
pointed as a member of the Commission.
(5) BALANCE
OF
INTERESTS.—Recognizing
that the individuals with the experience and exper-
tise which qualify them for service on the Commis-
sion are likely to have been employed by or rep-
resented depository institutions or Federal banking
agencies, the President, in the consultations pursu-
ant to paragraph (3) and the selection of individuals
for nominations for appointments to the Commis-
sion, shall seek to attain a balance in the interests
represented, at the time of the nomination or in the
past, by members of the Commission.
(b) CHAIRPERSON.—At the time the President nomi-
nates individuals for appointment to the Commission, the
President shall designate one such individual who shall
serve as Chairperson of the Commission.
(c) TERMS.—Each member of the Commission shall
serve for the life of the Commission.
(d) PUBLIC MEETINGS.—
(1) IN GENERAL.— Each meeting of the Com-
mission, other than meetings in which classified in-
formation is to be discussed, shall be open to the
public.
(2) OPEN TO MEMBERS OF CONGRESS.—All the
proceedings, information, and deliberations of the
Commission shall be open, upon request, to the fol-
lowing:
(A) The Chairman and the ranking minor-
ity party member of the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate,
or such other members of such committee as
may be designated by such Chairman or rank-
ing minority party member.
(B) The Chairman and the ranking minor-
ity party member of the Subcommittee on Fi-
nancial Institutions and Regulatory Relief of
the Committee on Banking, Housing, and
Urban Affairs of the Senate, or such other
members of such subcommittee as may be des-
ignated by such Chairman or ranking minority
party member.
(C) The Chairman and the ranking minor-
ity party member of the Committee on Banking
and Financial Services of the House of Rep-
resentatives, or such other members of the com-
mittee as may be designated by such Chairman
or ranking minority party member.
(D) The Chairman and ranking minority
party member of the Subcommittee on Finan-
cial Institutions and Consumer Credit of the
Committee on Banking and Financial Services
of the House of Representatives, or such other
members of the subcommittee as may be des-
ignated by such Chairman or ranking minority
party member.
(e) VACANCIES.—A vacancy on the Commission shall
be filled in the same manner as the original appointment.
(f) PAY AND TRAVEL EXPENSES.—
(1) PAY OF MEMBERS OF COMMISSION.—
(A) IN GENERAL.—Each member of the
Commission, other than the Chairperson, shall
be paid at a rate equal to the daily equivalent
of the minimum annual rate of basic pay pay-
able for level IV of the Executive Schedule
under section 5315 of title 5, United States
Code, for each day (including travel time) dur-
ing which the member is engaged in the actual
performance of duties vested in the Commis-
sion.
(B) CHAIRPERSON.—The Chairperson of
the Commission shall be paid for each day re-
ferred to in subparagraph (A) at a rate equal
to the daily equivalent of the minimum annual
rate of basic pay payable for level III of the Ex-
ecutive Schedule under section 5314 of title 5,
United States Code.
(2) TRAVEL EXPENSES.—Members shall receive
travel expenses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and 5703 of
title 5, United States Code.
(g) NONAPPLICABILITY
OF
FEDERAL
ADVISORY
COMMITTEE ACT.—The Federal Advisory Committee Act
shall not apply with respect to the Commission.
SEC. 4. DIRECTOR AND STAFF OF COMMISSION.
(a) DIRECTOR.—
(1) APPOINTMENT.—The Commission shall
have a Director who shall be appointed by the Com-
mission.
(2) PAY.—The Director shall be paid at the
rate of basic pay payable for level IV of the Execu-
tive Schedule.
(b) STAFF.—
(1) APPOINTMENT.—The Director, with the ap-
proval of the Commission, may appoint and fix the
pay of such additional personnel as the Director con-
siders appropriate.
(2) PAY.—An individual appointed pursuant to
paragraph (1) may not receive pay in excess of the
annual rate of basic pay payable for level V of the
Executive Schedule.
(c) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Commission may
be—
(1) appointed without regard to the provisions
of title 5, United States Code, governing appoint-
ments in the competitive service; and
(2) paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of that
title relating to classification and General Schedule
pay rates.
(d) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code, but at rates
for individuals not to exceed the daily equivalent of the
annual rate of basic pay payable for level V of the Execu-
tive Schedule.
(e) STAFF OF FEDERAL AGENCIES.—
(1) IN GENERAL.—Upon request of the Direc-
tor, the head of any Federal department or agency
may detail, on a reimbursable basis, any of the per-
sonnel of that department or agency to the Commis-
sion to assist it in carrying out its duties under this
Act.
(2) LIMIT ON DETAILS FROM BANKING AGEN-
CIES.—Not more than 1⁄3 of the staff of the Com-
mission at any time may be employees detailed from
Federal banking agencies.
SEC. 5. POWERS OF COMMISSION.
(a) HEARINGS
AND SESSIONS.—The Commission
may, for the purpose of carrying out this Act, hold hear-
ings, sit and act at times and places, take testimony, and
receive evidence as the Commission considers appropriate.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Commission may, if authorized by the
Commission, take any action which the Commission is au-
thorized to take by this section.
(c) OBTAINING OFFICIAL DATA.—
(1) IN GENERAL.—The Commission may secure
directly from any department or agency of the Unit-
ed States information necessary to enable it to carry
out this Act.
(2) TRANSMITTAL
BY
AGENCIES.—Upon re-
quest of the Chairperson of the Commission, the
head of a department or agency of the United States
shall furnish information to the Commission.
(d) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other departments and agencies of the United
States.
(e) ADMINISTRATIVE SUPPORT SERVICES.—Upon
the request of the Commission, the Administrator of Gen-
eral Services shall provide to the Commission, on a reim-
bursable basis, the administrative support services nec-
essary for the Commission to carry out its responsibilities
under this Act.
(f) CONTRACT AUTHORITY.—The Commission may
contract with and compensate government and private
agencies or persons for the lease of space and the provision
of other services, without regard to section 3709 of the
Revised Statutes.
SEC. 6. DUTIES OF COMMISSION.
(a) IN GENERAL.—The Commission shall carry out
the purposes of this Act.
(b) CONSIDERATION OF SPECIFIC ISSUES.—In addi-
tion to such other issues as the Commission may find ap-
propriate to review, and make recommendations with re-
spect to, in order to carry out the purposes of this Act,
the Commission shall consider and make recommendations
with respect to the following issues:
(1) CONVERSION PERIOD.—The appropriate pe-
riod of time during which a savings association
would be required to convert to a bank charter or
liquidate.
(2) FORM OF BANK CHARTER.—The form of
any bank charter to which savings associations
would be required to convert and the bank powers
which would be associated with any such charter, in-
cluding the feasibility of establishing a community
bank charter with more limited commercial banking
powers than full-service banks.
(3) 
APPLICABILITY
TO
STATE-CHARTERED
THRIFTS.—The manner in which legislation requir-
ing the conversion of savings associations to banks
would be applied to State-chartered savings associa-
tions.
(4) TREATMENT
OF
THRIFT
POWERS.—The
treatment of powers of savings associations which
are not permitted for banks following any conversion
of a savings association to a bank.
(5) TREATMENT OF THRIFT HOLDING COMPA-
NIES.—The extent to which the conversion of sav-
ings associations to banks should require a change
in the existing savings and loan holding company
framework, the powers of such companies (including
diversified savings and loan holding companies), and
the regulation of such companies (including consid-
eration of the most appropriate regulator for such
companies) and the appropriate period of time dur-
ing which any such change should be implemented.
(6) FICO CARRYING
COSTS.—All appropriate
sources of funds for paying interest on, and other
costs incurred in connection with the obligations is-
sued by the Financing Corporation, including the
surplus funds of the Federal Reserve System, net
earnings of the deposit insurance funds, banks, sav-
ings associations, credit unions, Government cor-
porations and other Government sponsored enter-
prises, unexpended funds appropriated to the Reso-
lution Trust Corporation, and any other feasible
source of funds.
(7) RECAPITALIZATION
OF
THE
SAIF.—The
manner in which the Savings Association Insurance
Fund should be recapitalized.
(8) BRANCHING.—The appropriate treatment,
after any conversion of an savings association to a
bank, of branches which the savings association was
operating before the conversion.
(9) REGULATIONS.—The extent to which the
regulations applicable to savings associations differ
section 5(d)(3) of the Federal Deposit Insurance Act
in connection with the conversion of savings associa-
tions to banks.
(c) PREPARATION OF IMPLEMENTING BILL.—After
completing consideration of the issues required to be con-
sidered by the Commission, the Commission shall prepare
a bill consisting only of—
(1) provisions directly related to—
(A) the conversion of savings associations
to banks;
(B) issues directly related to such conver-
sions (including the issues specified in sub-
section (b)); and
(C) other purposes of this Act;
(2) if changes in existing laws or new statutory
authority is required to carry out the purposes of
this Act, provisions, necessary to carry out such pur-
poses, either repealing or amending existing laws or
providing new statutory authority; and
(3) provisions necessary for purposes of comply-
ing with section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985 in connec-
tion with such legislative provisions.
SEC. 7. REPORTS AND IMPLEMENTING BILL.
(a) INTERIM REPORTS.—The Commission may sub-
mit to the President and the Congress interim reports as
the Commission considers appropriate.
(b) FINAL REPORT.—
(1) REPORT REQUIRED.—The Commission shall
submit a final report to the President and the Con-
gress not later than October 1, 1997.
(2) CONTENTS.—The final report shall contain
a detailed statement of the findings and conclusions
of the Commission, together with a final draft ver-
sion of the implementing bill prepared pursuant to
section 6(c) and such recommendations for adminis-
trative actions as the Commission considers appro-
priate.
(c) FINAL IMPLEMENTING BILL.—
(1) IN GENERAL.—Before the later of Decem-
ber 1, 1997, or 30 legislative days after submitting
the final report with the final draft version of the
implementing bill to the Congress pursuant to sub-
section (b)(2), the Commission shall, after taking
into account such comments on the final draft ver-
sion of the implementing bill as have been trans-
ferred to the Commission by any committee of the
House of Representatives or the Senate (which has
jurisdiction over legislation involving subject matters
which would be affected by the implementing bill),
the Commission shall submit a final implementing
bill to the House of Representatives and the Senate.
(2) COMPUTATION OF LEGISLATIVE DAYS.—In
computing the number of legislative days for pur-
poses of paragraph (1), there shall be excluded any
day on which either House of the Congress is not in
session.
SEC. 8. CONSIDERATION OF BILL IMPLEMENTING PUR-
POSES OF THIS ACT.
(a) RULES OF HOUSE OF REPRESENTATIVES AND
SENATE.—The provisions of this section are enacted by
the Congress—
(1) as an exercise of the rulemaking power of
the House of Representatives and the Senate, re-
spectively, and as such they are deemed a part of
the rules of each House, respectively, but applicable
only with respect to the procedure to be followed in
that House in the case of implementing bills de-
scribed in section 6(c) and they supersede other
rules only to the extent that they are inconsistent
therewith; and
(2) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner and to the same extent as in
the case of any other rule of that House.
(b) IMPLEMENTING BILL DEFINED.—For purposes
of this section, the term ‘‘implementing bill’’ means only
a bill of either House of Congress which is submitted by
the Commission pursuant to section 7(c) and introduced
as provided in subsection (c) (of this section).
(c) INTRODUCTION AND REFERRAL.—
(1) INTRODUCTION ON DAY OF SUBMISSION.—
On the day on which an implementing bill is submit-
ted to the House of Representatives and the Senate
by the Commission under section 7(c), the imple-
menting bill submitted shall be—
(A) introduced (by request) in the House
by the majority leader of the House, for himself
and the minority leader of the House, or by
Members of the House designated by the major-
ity leader and minority leader of the House;
and
(B) introduced (by request) in the Senate
by the majority leader of the Senate, for himself
and the minority leader of the Senate, or by
Members of the Senate designated by the ma-
jority leader and minority leader of the Senate.
(2) SUBSEQUENT INTRODUCTION IF A HOUSE
IS NOT IN SESSION.—If either House is not in ses-
sion on the day on which an implementing bill is
submitted, the implementing bill shall be introduced
in that House, as provided paragraph (1), on the
first day after such date of submission on which the
House is in session.
(3) COMMITTEE
REFERRALS.—An implement-
ing bill introduced in either House pursuant to para-
graph (1) or (2) shall be referred by the presiding
officer of such House to the appropriate committee,
or, in the case of a bill containing provisions within
the jurisdiction of 2 or more committees, jointly to
such committees for consideration of those provi-
sions within their respective jurisdictions.
(d) AMENDMENTS PROHIBITED.—
(1) IN GENERAL.—No amendment to an imple-
menting bill shall be in order in either the House of
Representatives or the Senate.
(2) NO MOTION TO SUSPEND APPLICATION OF
SUBSECTION.—No motion to suspend the application
of this subsection shall be in order in either House.
(3) NO
UNANIMOUS
CONSENT
REQUESTS.—A
request to suspend the application of this subsection
by unanimous consent shall not be in order in either
House and it shall not be in order for the presiding
officer in either House to entertain any such re-
quest.
(e) PERIOD FOR COMMITTEE AND FLOOR CONSIDER-
ATION.—
(1) COMMITTEE CONSIDERATION.—If any com-
mittee of either House to which an implementing bill
has been referred has not reported such bill to such
House as of the close of the 45th day after the in-
troduction of the bill, the committee shall be auto-
matically discharged from further consideration of
the bill and the bill shall be placed on the appro-
priate calendar.
(2) VOTE ON FINAL PASSAGE.—A vote on final
passage of an implementing bill shall be taken in
each House on or before the close of the 15th day
after the bill is reported by the committee or com-
mittees of that House to which the bill was referred,
or after such committee or committees have been
discharged from further consideration of the bill.
(3) CONSIDERATION BY 1 HOUSE AFTER PAS-
SAGE OF BILL BY OTHER HOUSE.—If, before the
passage by 1 House of an implementing bill of such
House, the House receives the same implementing
bill from the other House, then—
(A) the procedure in that House shall be
the same as if no implementing bill had been
received from the other House; but
(B) the vote on final passage shall be on
the implementing bill of the other House.
(4) COMPUTATION OF LEGISLATIVE DAYS.—For
purposes of this subsection, in computing a number
of days in either House, there shall be excluded any
day on which that House is not in session.
(f) PROCEDURAL RULES
FOR FLOOR CONSIDER-
ATION IN THE HOUSE.—
(1) HIGHLY PRIVILEGED MOTION.—
(A) IN GENERAL.—A motion in the House
of Representatives to proceed to the consider-
ation of an implementing bill shall be highly
privileged and not debatable.
(B) 
MOTION
NOT
AMENDABLE.—An
amendment to the motion described in subpara-
graph (A) shall not be in order.
(C) NO MOTION TO RECONSIDER.—No mo-
tion to reconsider the vote by which the motion
described in subparagraph (A) is agreed to or
disagreed to shall be in order in the House of
Representatives.
(2) DEBATE.—
(A) TIME LIMIT.—Debate in the House of
Representatives on an implementing bill shall
be limited to not more than 20 hours, which
shall be divided equally between those favoring
and those opposing the bill.
(B) NONDEBATABLE MOTION TO FURTHER
LIMIT DEBATE.—A motion to further limit de-
bate on an implementing bill shall not be debat-
able.
(3) NO MOTION TO RECONSIDER OR RECOM-
MIT.—It shall not be in order in the House of Rep-
resentatives to move to recommit an implementing
bill or to move to reconsider the vote by which an
implementing bill is agreed to or disagreed to.
(4) MOTIONS TO POSTPONE CONSIDERATION OR
PROCEED TO CONSIDERATION OF OTHER BUSINESS
NONDEBATABLE.—Motions to postpone, made in the
House of Representatives with respect to the consid-
eration of an implementing bill, and motions to pro-
ceed to the consideration of other business, shall be
decided without debate.
(5) APPEALS
FROM
RULINGS
OF
THE
CHAIR
NONDEBATABLE.—All appeals from the decisions of
the Chair relating to the application of the Rules of
the House of Representatives to the procedure relat-
ing to an implementing bill shall be decided without
debate.
(6) 
RULES
OF
THE
HOUSE
OTHERWISE
APPLY.—Except to the extent specifically provided in
the preceding paragraphs of this subsection, consid-
eration of an implementing bill in the House of Rep-
resentatives shall be governed by the Rules of the
House of Representatives applicable to other bills in
similar circumstances.
(g) PROCEDURAL RULES
FOR FLOOR CONSIDER-
ATION IN THE SENATE.—
(1) PRIVILEGED MOTION.—
(A) IN GENERAL.—A motion in the Senate
to proceed to the consideration of an imple-
menting bill shall be privileged and not debat-
able.
(B) 
MOTION
NOT
AMENDABLE.—An
amendment to the motion described in subpara-
graph (A) shall not be in order.
(C) NO MOTION TO RECONSIDER.—A mo-
tion to reconsider the vote by which the motion
described in subparagraph (A) is agreed to or
disagreed to shall not be in order in the Senate.
(2) DEBATE.—
(A) TIME LIMIT GENERALLY.—Debate in
the Senate on an implementing bill, and all de-
batable motions and appeals in connection with
the debate on such bill, shall be limited to not
more than 20 hours which shall be equally di-
vided between, and controlled by, the majority
leader and the minority leader or their des-
ignees.
(B) TIME LIMIT ON DEBATABLE MOTIONS
OR APPEALS.—Debate in the Senate on any de-
batable motion or appeal in connection with an
implementing bill shall be limited to not more
than 1 hour, to be equally divided between, and
controlled by, the mover and the manager of
the bill, except that in the event the manager
of the bill is in favor of any such motion or ap-
peal, the time in opposition thereto, shall be
controlled by the minority leader or his des-
ignee.
(C) ALLOTMENT OF TIME DURING CONSID-
ERATION
OF
DEBATABLE
MOTION
OR
AP-
PEAL.—The majority leader and the minority
leader may, from time under their control on
the passage of an implementing bill, allot addi-
tional time to any Senator during the consider-
ation of any debatable motion or appeal.
(D) NONDEBATABLE MOTION TO FURTHER
LIMIT DEBATE.—A motion in the Senate to fur-
ther limit debate is not debatable.
(3) NO MOTION TO RECOMMIT.—It shall not be
in order in the Senate to move to recommit an im-
plementing bill.
SEC. 9. TERMINATION.
The Commission shall terminate 30 days after the
final text of the implementing bill has been submitted to
the Congress pursuant to section 7(c).
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for the fiscal
years 1997 and 1998 such sums as may be necessary to
carry out this Act.
SEC. 11. BUDGET ACT COMPLIANCE.
Any spending authority (as defined in subparagraphs
(A) and (C) of section 401(c)(2) of the Congressional
Budget Act of 1974) authorized by this Act shall be effec-
tive only to such extent and in such amounts as are pro-
vided in appropriation Acts.
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