A bill to amend the Federal Deposit Insurance Act to provide for the return of excess amounts in Federal deposit insurance funds to financial institutions for use in their communities, with such distributions allocated according to the historical basis of contributions made to the funds by such institutions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Deposit Insurance Fairness and 
Economic Opportunity Act''.

SEC. 2. DIVIDEND OF EXCESS DEPOSIT INSURANCE FUNDS TO INSURED 
              DEPOSITORY INSTITUTIONS.

    Section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(2)) is amended by inserting after subparagraph (C) the 
following:
                    ``(D) Dividend of excess deposit insurance funds.--
                            ``(i) In general.--Notwithstanding 
                        subsection (e)(2), the Board of Directors shall 
                        distribute any excess amounts described in 
                        clause (ii) to insured depository institutions 
                        insured by the Bank Insurance Fund or the 
                        Savings Association Insurance Fund, as 
                        applicable, in the form of a dividend, the 
                        allocation of which shall be made in accordance 
                        with clause (iii).
                            ``(ii) Dividend distribution criteria.--
                        Excess amounts shall be distributed as 
                        dividends in accordance with this subparagraph 
                        to the extent that--
                                    ``(I) the amount of funds in the 
                                Bank Insurance Fund exceeds 1.40 
                                percent of the total estimated deposits 
                                insured by that Fund; and
                                    ``(II) the amount of funds in the 
                                Savings Association Insurance Fund 
                                exceeds 1.40 percent of the total 
                                estimated deposits insured by that 
                                Fund.
                            ``(iii) Basis for distribution of 
                        dividend.--
                                    ``(I) In general.--Solely for the 
                                purpose of dividend distribution under 
                                this subparagraph, the Corporation 
                                shall determine the relative 
                                contribution of each insured depository 
                                institution to the Bank Insurance Fund 
                                and the Savings Association Insurance 
                                Fund, as applicable, for calculating 
                                the share of the institution of any 
                                dividend determined under this 
                                subparagraph, taking into account the 
                                factors described in subclause (II).
                                    ``(II) Factors for distribution.--
                                In implementing this subparagraph, the 
                                Corporation shall take into account 
                                with respect to an insured depository 
                                institution (including any predecessor 
                                thereto)--
                                            ``(aa) the ratio of the 
                                        assessment base of the insured 
                                        depository institution on 
                                        December 31, 1996, that is 
                                        attributable to a particular 
                                        insurance fund, to the 
                                        assessment base attributable to 
                                        that insurance fund of all 
                                        eligible insured depository 
                                        institutions on that date;
                                            ``(bb) the total amount of 
                                        assessments paid on or after 
                                        January 1, 1997, by the insured 
                                        depository institution to that 
                                        insurance fund;
                                            ``(cc) that portion of 
                                        assessments paid by the insured 
                                        depository institution that 
                                        reflects higher levels of risk 
                                        assumed by such institution; 
                                        and
                                            ``(dd) such other factors 
                                        as the Corporation may 
                                        determine to be appropriate.
                            ``(iv) Rule of construction.--For purposes 
                        of this subparagraph, references to the `Bank 
                        Insurance Fund' and the `Savings Association 
                        Insurance Fund' shall include any successor to 
                        such fund or funds.''.

SEC. 3. REGULATIONS.

    The Federal Deposit Insurance Corporation shall promulgate such 
regulations as may be necessary to carry out section 7(b)(2)(D) of the 
Federal Deposit Insurance Act, as added by this Act.

Summary: Deposit Insurance Fairness and Economic Opportunity Act - Amends the Federal Deposit Insurance Act to direct the Board of Directors of the Federal Deposit Insurance Corporation to distribute in the form of a dividend any excess amounts remaining from semiannual assessments imposed upon insured depository institutions (excess deposit insurance funds).

Defines excess amounts as the amount of funds exceeding 1.40 percent of the total estimated deposits insured by theBank Insurance Fund or the Savings Association Insurance Fund.