Bank Regulation Adjustment Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bank Regulation Adjustment 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 subparagraphs (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 section);
            (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 paragraphs:
            ``(7) Whoever, with unlawful or fraudulent intent, 
        utilizes, or conspires to utilize, an instrumentality of 
        interstate or foreign commerce to notify a creditor in 
        accordance with section 161 that a statement of account 
        contains a billing error with regard to a transaction, knowing 
        the statement to be correct with regard to such transaction; or
            ``(8) Whoever, with unlawful or fraudulent intent, 
        utilizes, or conspires to utilize, an instrumentality 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 designation and 
        heading immediately preceding paragraph (1) (as so 
        redesignated):
    ``(a) In General.--''; and
            (9) by adding at the end the following new subsection:
    ``(b) Obtaining Credit Card by Fraudulent Means.--Whoever, with 
unlawful or fraudulent intent, utilizes, or conspires to utilize an 
instrumentality of interstate 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 period,
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 subsection:
    ``(h) Administrative Action Required.--
            ``(1) Annual inflation adjustment.--Any amount established 
        by the Secretary under subsection (a) which defines a 
        transaction for which a report is required under such 
        subsection shall be adjusted annually after December 31, 1997, 
        by the annual percentage increase in the Consumer Price Index 
        for Urban Wage Earners and Clerical Workers published by the 
        Bureau of Labor Statistics.''.
            ``(2) Infrequent filers.--
                    ``(A) In general.--If the number of reports 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 transactions not 
                affected.--Subparagraph (A) shall not be construed as 
                affecting any obligation of a depository institution to 
                promptly report 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 
                subparagraph (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), respectively.

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 sentence (relating to assessments for examinations).
    (b) Nonmember State Depository Institutions.--Section 10(e)(1) of 
the Federal Deposit Insurance 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 period 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 
effective date for such regulation.
    (b) Exceptions for Regulations Reducing Burdens on Depository 
Institutions.--Subsection (a) shall not apply to any regulation the 
purpose of which is to reduce the administrative burden on depository 
institutions.
    (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 Conversion to Another Form of 
Depository Institution.--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 credit 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 INSTITUTIONS.

    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 Insurance 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.

Summary: Bank Regulation Adjustment Act - Amends the Truth in Lending Act to establish a criminal penalty for specified activities pertaining to fraudulent use of credit cards, including obtaining a credit card by fraudulent means. 
Amends Federal monetary law to mandate annual inflation adjustments with respect to specified transactions for which a domestic financial institution is required to file currency transaction reports. 
Permits filers of infrequent currency transaction reports to file on a quarterly basis. 
Amends the Federal Reserve Act to repeal:  (1) the "due on demand" requirement for "insider loans" to executive bank officers; (2) reporting requirements pertaining to such loans; and (3) the authority of the Board of Governors of the Federal Reserve System to assess examination fees against State depository institutions. 
Amends the Federal Deposit Insurance Act to restrict to Federal depository institutions the assessment of examination fees by the Federal Deposit Insurance Corporation. 
States that the effective date for banking regulations shall be at the end of the 180-day period beginning on the date the regulation is published in final form in the Federal Register (unless Federal law specifically prescribes otherwise). 
Amends the Federal Credit Union Act to expand Federal credit union membership from groups having a common bond to groups having common bonds. 
Declares that any regulation prescribed by the National Credit Union Administration which requires a vote by the membership to approve or disapprove a proposal to transfer credit union deposits to an insured depository institution shall allow the credit union to provide notice of such vote up to 90 days before the date of the vote. 
Excludes from the gross income of a depository institution, for Federal tax purposes, the fees and income it receives which are attributable to the first $350 million of its total assets.