Title: To require the Board of Governors of the Federal Reserve System to carry out a quantitative impact study of any proposed real-time payment system under the Faster Payments Initiative before implementing such system.
Policy area: Finance and Financial Sector

Summary:
This bill prohibits the Federal Reserve Board from developing, building, or implementing a real-time payment system until one year after submitting a report to Congress regarding such a system. This report must include a quantitative impact study.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3939 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3939

  To require the Board of Governors of the Federal Reserve System to 
carry out a quantitative impact study of any proposed real-time payment 
 system under the Faster Payments Initiative before implementing such 
                                system.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2019

   Mr. Budd introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To require the Board of Governors of the Federal Reserve System to 
carry out a quantitative impact study of any proposed real-time payment 
 system under the Faster Payments Initiative before implementing such 
                                system.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. QUANTITATIVE IMPACT STUDY REQUIREMENT.

    (a) In General.--The Board of Governors of the Federal Reserve 
System may not take any steps to develop, build, or otherwise implement 
any proposed real-time payment system or any component thereof 
(including a settlement service, liquidity management service, or 
auxiliary services) under the Faster Payments Initiative until after 
the end of the 1-year period beginning on the date that the Board of 
Governors issues a detailed report to the Congress on a comprehensive 
study of the proposed real-time payment system that includes a 
quantitative impact component.
    (b) Contents of Study.--The study described under subsection (a) 
shall include the following:
            (1) Any cybersecurity, privacy concerns, or other risks 
        associated with the Federal government receiving and managing 
        new transaction-level information regarding millions of 
        American citizens, including a threat assessment.
            (2) Whether the Board of Governors would be subject to 
        privacy and security laws and regulations such as the Fair 
        Credit Reporting Act and the Gramm-Leach-Bliley Act, like other 
        payment processors.
            (3) Where customer information would be stored.
            (4) Who would oversee such information.
            (5) Whether the Board of Governors would create a database 
        to view customer transactions.
            (6) An analysis of whether the private sector can provide 
        the system or achieve the objectives of the system with 
        reasonable effectiveness, scope, and equity.
            (7) Whether the Board of Governors has concluded that the 
        private sector cannot achieve the objectives that the Board of 
        Governors seeks to achieve with the system.
            (8) The potential adverse consequences to the private 
        sector in the short term and the long if the Board of Governors 
        offers the system.
            (9) Whether the Board of Governors could achieve the 
        Board's objectives without offering the system, but rather by 
        making changes to its current infrastructure, for example by 
        expanding the operating hours of the National Settlement 
        Service or enhancing the Automated Clearing House's same-day 
        payment capabilities or modernizing the Automated Clearing 
        House to serve as a backup to the existing operating network.
            (10) How the Board of Governors would collaborate with the 
        private sector to ensure interoperability.
            (11) As a regulator of depository institutions and their 
        holding companies, how the Board of Governors would ensure that 
        the Board does not exert undue influence over such institutions 
        and holding companies to use the system.
            (12) How the Board of Governors would ensure that the 
        system would be available to all depository institutions, 
        including community banks, and credit unions, in a manner that 
        is not cost prohibitive.
            (13) The estimate of the Board of Governors for--
                    (A) how long it would take to build the 
                infrastructure and begin operation of the system;
                    (B) how much the system would cost;
                    (C) the annual operating cost of the system; and
                    (D) how long it would take for the Board to recover 
                the costs of building the system.
            (14) A study of the quantitative impact of each of the 
        factors in paragraphs (1) through (13), as applicable.
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