I 
108TH CONGRESS 
1ST SESSION H. R. 3183
To provide for direct and accurate compensation to financial institutions 
for providing various critical depositary and financial agency services 
for or on behalf of the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 25, 2003
Mr. OXLEY (for himself and Mr. FRANK of Massachusetts) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To provide for direct and accurate compensation to financial 
institutions for providing various critical depositary and 
financial agency services for or on behalf of the United 
States, 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 ‘‘Depositary Services 
Efficiency and Cost Reduction Act’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows:
(2) maintain adequate accounting and manage-
ment controls to ensure that payments to financial 
institutions for their banking services provided to 
the Government as depositaries and financial agents 
are accurate and that the arrangements last no 
longer than is necessary. 
(d) REPORTS REQUIRED.—
(1) ANNUAL REPORT.—
(A) IN GENERAL.—For each fiscal year, 
the Secretary of the Treasury shall submit a re-
port to the Congress on the use of compen-
sating balances and on the use of appropria-
tions authorized in section 3 during that fiscal 
year. 
(B) INCLUSION IN BUDGET.—The report 
required under subparagraph (A) may be sub-
mitted as part of the budget submitted by the 
President under section 1105 of the title 31, 
United States Code, for the following fiscal year 
and if so, the report shall be submitted concur-
rently to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate. 
(2) FINAL REPORT FOLLOWING TRANSITION.—
(A) IN GENERAL.—Following completion of 
the transition from the use of compensating 
balances to the use of the appropriations au-
thorized in section 3 to pay financial institu-
tions for their services as depositaries and fi-
nancial agents of the United States, the Sec-
retary of the Treasury shall submit a report on 
the transition to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(B) CONTENTS OF REPORT.—The report 
submitted under subparagraph (A) shall include 
a detailed analysis of—
(i) the cost of transition; 
(ii) the direct costs of the services 
being paid from the appropriations author-
ized under section 3; and 
(iii) the benefits realized from the use 
of direct payment for such services, rather 
than the use of compensating balance ar-
rangements. 
SEC. 5. TECHNICAL AMENDMENT. 
The 2d undesignated paragraph of section 16 of the 
Federal Reserve Act (12 U.S.C. 412) is amended—
(1) in the 3d sentence, by inserting ‘‘or any 
other asset of a Federal reserve bank’’ before the pe-
riod at the end; and 
(2) in the last sentence, by inserting ‘‘, or are 
otherwise held by or on behalf of,’’ after ‘‘in the 
vaults of’’.
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