Title: Payments Modernization Act of 2019
Policy area: Finance and Financial Sector

Summary:
Payments Modernization Act of 2019
This bill requires the Federal Reserve Board to create a real-time payment system that allows funds to be available to any end user in real time, including funds deposited at a depository institution.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3951 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3951

  To amend the Expedited Funds Availability Act to require that funds 
 deposited be available for withdrawal in real time and to require the 
Board of Governors of the Federal Reserve System to create a real time 
                payment system, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2019

 Ms. Pressley (for herself and Mr. Garcia of Illinois) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Expedited Funds Availability Act to require that funds 
 deposited be available for withdrawal in real time and to require the 
Board of Governors of the Federal Reserve System to create a real time 
                payment system, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payments Modernization Act of 
2019''.

SEC. 2. REQUIREMENT THAT FUNDS DEPOSITED BE AVAILABLE FOR WITHDRAWAL IN 
              REAL TIME.

    (a) Expedited Funds Availability Schedules.--Section 603 of the 
Expedited Funds Availability Act (12 U.S.C. 4002) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``Except as provided in 
                        subsection (e) and in section 604, in'' and 
                        inserting ``In''; and
                            (ii) in the matter following subparagraph 
                        (B) by striking ``not later than the business 
                        day after the business day on which'' and 
                        inserting ``in real time when'';
                    (B) in paragraph (2) by striking ``not later than 
                the business day after the business day on which'' and 
                inserting ``in real time after''; and
                    (C) in the subsection heading by striking ``Next 
                Business Day'' and inserting ``Real Time'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Permanent Schedule.--Funds deposited in an account at a 
depository institution by a check drawn on a local or nonlocal 
originating depository institution shall be available for withdrawal in 
real time.'';
            (3) by striking subsection (c);
            (4) by striking subsection (d);
            (5) by redesignating subsections (e) and (f) as subsections 
        (c) and (d), respectively;
            (6) in subsection (c), as redesignated by paragraph (5)--
                    (A) in paragraph (1)(A)--
                            (i) by striking ``Not more than 4 business 
                        days shall intervene between the business day 
                        a'' and inserting ``A'';
                            (ii) by inserting a comma after 
                        ``subparagraph (B)'';
                            (iii) by striking ``is''; and
                            (iv) by striking ``and the business day on 
                        which funds from such deposit are available for 
                        withdrawal'' and inserting ``shall be available 
                        for withdrawal in real time''; and
                    (B) in paragraph (2)--
                            (i) by striking ``, (b), and (c)'' and 
                        inserting ``and (b)''; and
                            (ii) in the paragraph heading by striking 
                        ``Temporary and permanent schedules'' and 
                        inserting ``Permanent schedule''; and
            (7) in subsection (d), as redesignated by paragraph (5), by 
        striking ``(c), or (e)'' and inserting ``or (c)''.
    (b) Safeguard Exceptions.--Section 604 of the Expedited Funds 
Availability Act (12 U.S.C. 4003) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in the matter following subparagraph 
                        (D) by striking ``on the business day after the 
                        business day on which such cash or funds are 
                        deposited or, in the case of a wire transfer, 
                        on the business day after the business day on 
                        which'' and inserting ``in real time after such 
                        cash or funds are deposited or, in the case of 
                        a wire transfer, in real time after''; and
                            (ii) in the paragraph heading by striking 
                        ``Next business day'' and inserting ``Real 
                        time'';
                    (B) in paragraph (2)--
                            (i) by striking ``, 603(c),''; and
                            (ii) by striking ``603(e)'' and inserting 
                        ``603(c)''; and
                    (C) by striking paragraph (3)(B) and inserting the 
                following:
                    ``(B) any such funds deposited in excess of such 
                amount shall be available for withdrawal in real 
                time.'';
            (2) in subsection (b) by striking ``(c), or (e)'' and 
        inserting ``or (c)'';
            (3) in subsection (c)(1) by striking ``(c), and (e)'' and 
        inserting ``and (c)''; and
            (4) in subsection (d) by striking ``(c), and (e)'' and 
        inserting ``and (c)''.
    (c) Miscellaneous Provisions.--Section 607 of the Expedited Funds 
Availability Act (12 U.S.C. 4006) is amended--
            (1) by striking subsections (a) and (b); and
            (2) by redesignating subsections (c) through (f) as 
        subsections (a) through (d), respectively.
    (d) Regulations and Reports by Board.--Section 609 of the Expedited 
Funds Availability Act (12 U.S.C. 4008) is amended--
            (1) by striking subsections (d) and (f); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 3. REAL TIME PAYMENT SYSTEM.

    (a) In General.--The Board of Governors of the Federal Reserve 
System shall create a real time payment system that--
            (1) at a minimum, conforms with the principles outlined in 
        the final report of the Faster Payments Task Force of the 
        Federal Reserve System;
            (2) allows end users have fast access to funds, in speeds 
        approaching real time;
            (3) operates as a utility, allowing end users to reach any 
        other end user, including unbanked, underserved, and cross-
        border end users, regardless of the solution used by the end 
        user;
            (4) prioritizes safety and soundness, consumer health, 
        efficiency, and other relevant public interest considerations;
            (5) provides end users with the confidence and trust in the 
        safety and security of the system by ensuring that--
                    (A) fraud and errors are minimized and resolved 
                quickly; and
                    (B) the assets, accounts, and information of the 
                end user are protected, even as payments cross 
                different solutions;
            (6) has transparent operating information; and
            (7) ensures that there are no volume discounts made that 
        disadvantage smaller financial institutions.
    (b) Real Time Payment System Defined.--In this section, the term 
``real time payment system'' means a payment-by-payment interbank 
settlement system that facilitates settlements in real time and at any 
time, on any day, including weekends and holidays.
                                 <all>