Business Checking Freedom Act of 2003

Bill: 108-hr-758
Sponsor: Rep. Kelly, Sue W. [R-NY-19]
Introduced: 2003-02-13 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative procedure
Automated teller machines
Bank accounts
Bank deposits
Bank reserves
Commerce
Congress
Congressional reporting requirements
Corporate finance
Electronic funds transfers
Federal Reserve System
Fees
Interest
Interest rates
Law
NOW accounts
Science, Technology, Communications
Surveys

Summary:
action_date: 2003-02-13
text: Business Checking Freedom Act of 2003 - Amends Federal law to authorize interest-bearing transaction accounts for all businesses, permitting up to 24 transfers per month (or any greater number the Federal Reserve Board may determine) to another account of the owner in the same institution.
Authorizes the payment of interest by a Federal reserve bank at least quarterly on balances maintained there on behalf of a depository institution.
Amends the Federal Reserve Act to revise the ratio of reserves a depository institution must maintain against its transaction accounts, permitting a ratio of zero.
Directs the Federal Reserve banks in FY 2003 through 2007 to transfer to the Board for transfer to the Secretary of the Treasury, for deposit in the general fund, additional surplus funds equal to the net cost of their interest payments to depository institutions.
action_date: 2003-03-31
text: Business Checking Freedom Act of 2003 - (Sec. 2) Amends Federal law to authorize interest-bearing transaction accounts for all businesses, permitting up to 24 transfers per month (or any greater number the Federal Reserve Board may determine) to another account of the owner in the same institution.
(Sec. 3) Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against the payment of interest on demand deposits. Makes such repeal effective two years from the date of enactment.
(Sec. 4) Authorizes the payment of interest on reserves by a Federal reserve bank at least quarterly on balances maintained there on behalf of a depository institution.
Amends the Federal Reserve Act to require the Board to survey annually and report to Congress on bank fees and services including: (1) checking and other transaction accounts; (2) negotiable order of withdrawal and savings accounts; (3) automated teller machine transactions; and (4) other electronic transactions. Sets forth minimum survey requirements for each such account or transaction. Requires the survey to address minimum balance requirements as well as fees.
Requires the Board to report annually to Congress on the survey results.
Amends the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, to repeal certain reporting requirements.
(Sec. 5) Amends the Federal Reserve Act to revise the ratio of reserves a depository institution must maintain against its transaction accounts, permitting a ratio of zero.
(Sec. 6) Directs the Federal reserve banks to deposit additional surplus funds into the general fund of the Treasury for FY 2003 through 2007 equal to the estimated annual net revenue loss.
Prohibits such banks, during FY 2003 through 2007, from replenishing their respective surplus funds by the amount of any such transfer made to cover interest payments.
action_date: 2003-04-01
text: 
(This measure has not been amended since it was reported to the House on March 31, 2003. The summary of that version is repeated here.)

Business Checking Freedom Act of 2003 - (Sec. 2) Amends Federal law to authorize interest-bearing transaction accounts for all businesses, permitting up to 24 transfers per month (or any greater number the Federal Reserve Board may determine) to another account of the owner in the same institution.
(Sec. 3) Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against the payment of interest on demand deposits. Makes such repeal effective two years from the date of enactment.
(Sec. 4) Authorizes the payment of interest on reserves by a Federal reserve bank at least quarterly on balances maintained there on behalf of a depository institution.
Amends the Federal Reserve Act to require the Board to survey annually and report to Congress on bank fees and services including: (1) checking and other transaction accounts; (2) negotiable order of withdrawal and savings accounts; (3) automated teller machine transactions; and (4) other electronic transactions. Sets forth minimum survey requirements for each such account or transaction. Requires the survey to address minimum balance requirements as well as fees.
Requires the Board to report annually to Congress on the survey results.
Amends the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, to repeal certain reporting requirements.
(Sec. 5) Amends the Federal Reserve Act to revise the ratio of reserves a depository institution must maintain against its transaction accounts, permitting a ratio of zero.
(Sec. 6) Directs the Federal reserve banks to deposit additional surplus funds into the general fund of the Treasury for FY 2003 through 2007 equal to the estimated annual net revenue loss.
Prohibits such banks, during FY 2003 through 2007, from replenishing their respective surplus funds by the amount of any such transfer made to cover interest payments.

Legislative actions:
action_date: 2003-04-02
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2003-04-01
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2003-04-01
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2527-2529)
action_date: 2003-04-01
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H2527-2529)
action_date: 2003-04-01
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 758.
action_date: 2003-04-01
text: Considered under suspension of the rules. (consideration: CR H2527-2533)
action_date: 2003-04-01
text: Mr. Bachus moved to suspend the rules and pass the bill, as amended.
action_date: 2003-03-31
text: Placed on the Union Calendar, Calendar No. 33.
action_date: 2003-03-31
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 108-53.
action_date: 2003-03-31
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 108-53.
action_date: 2003-03-13
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2003-03-13
text: Committee Consideration and Mark-up Session Held.
action_date: 2003-03-05
text: Subcommittee Hearings Held.
action_date: 2003-03-05
text: Referred to the Subcommittee on Financial Institutions and Consumer Credit.
action_date: 2003-02-13
text: Referred to the House Committee on Financial Services.
action_date: 2003-02-13
text: Introduced in House
action_date: 2003-02-13
text: Introduced in House