article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Banking Equal Treatment Act of 2000''. SEC. 2. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS. (a) In General.--Section 19(b) of the Federal Reserve Act (12 U.S.C. 461(b)) is amended by adding at the end the following new paragraph: ``(12) Earnings on reserves.-- ``(A) In general.--Balances maintained at a Federal reserve bank by or on behalf of a qualified depository institution may receive earnings to be paid by the Federal reserve bank at least once each calendar quarter at a rate or rates not to exceed the general level of short-term interest rates. ``(B) Regulations relating to payments and distribution.--The Board may prescribe regulations concerning-- ``(i) the payment of earnings in accordance with this paragraph; ``(ii) the distribution of such earnings to the depository institutions which maintain balances at such banks or on whose behalf such balances are maintained; and ``(iii) the responsibilities of depository institutions, Federal home loan banks, and the National Credit Union Administration Central Liquidity Facility with respect to the crediting and distribution of earnings attributable to balances maintained, in accordance with subsection (c)(1)(B), in a Federal reserve bank by any such entity on behalf of depository institutions. ``(C) Qualified depository institution defined.-- The term `qualified depository institution' means-- ``(i) any depository institution that-- ``(I) is an insured depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act) or an insured credit union (as defined in section 101(7) of the Federal Credit Union Act); and ``(II) meets the requirements for affordable transaction accounts in section 4 of the Banking Equal Treatment Act of 2000; and ``(ii) any depository institution that is neither an insured depository institution (as so defined) or an insured credit union (as so defined).''. (b) Authorization for Pass Through Reserves for Member Banks.-- Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 461(c)(1)(B)) is amended by striking ``which is not a member bank''. (c) Technical and Conforming Amendments.--Section 19 of the Federal Reserve Act (12 U.S.C. 461) is amended-- (1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by striking subparagraph (C) and redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; and (2) in subsection (c)(1)(A) (12 U.S.C. 461(c)(1)(A)), by striking ``subsection (b)(4)(C)'' and inserting ``subsection (b)''. SEC. 3. TRANSFER OF FEDERAL RESERVE SURPLUSES. Section 7(b) of the Federal Reserve Act (12 U.S.C. 290) is amended by adding at the end the following new paragraph: ``(4) Additional transfers for fiscal years 2001 through 2005.-- ``(A) In general.--In addition to the amounts required to be transferred from the surplus funds of the Federal reserve banks pursuant to paragraph (1), the Federal reserve banks shall transfer from such surplus funds to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury, such sums as are necessary to equal the net cost of section 19(b)(12), as estimated by the Office of Management and Budget in each of the fiscal years 2001 through 2005. ``(B) Allocation by federal reserve board.--Of the total amount required to be paid by the Federal reserve banks under subparagraph (A) for fiscal years 2001 through 2005, the Board of Governors of the Federal Reserve System shall determine the amount each such bank shall pay in such fiscal year. ``(C) Replenishment of surplus fund prohibited.--No Federal reserve bank may replenish such bank's surplus fund by the amount of any transfer by such bank under subparagraph (A) during the fiscal year for which such transfer is made.''. SEC. 4. AFFORDABLE BANKING SERVICES. (a) In General.--Except as otherwise provided in this section, each insured depository institution shall make available to consumers a consumer transaction account, to be known as an ``affordable transaction account'', with the following features to be prescribed jointly by the Federal banking agencies, by regulation: (1) Initial deposit.--The maximum amount which an insured depository institution may require as an initial deposit, if any. (2) Minimum balance.--The maximum amount an insured depository institution may require as a minimum balance, if any, to maintain such account. (3) Minimum number of free withdrawals.--A minimum of 8 withdrawal transactions, including withdrawals by negotiable or transferable instruments for the purpose of making payments to third parties and electronic fund transfers, during any periodic cycle at no additional charge to the account holder. (4) Maximum monthly service charge.--The maximum amount an insured depository institution may charge per periodic cycle for the use of such account. (b) Fees for Withdrawal Transactions in Excess of Minimum Number of Free Withdrawals.-- (1) In general.--Subject to paragraph (2), in the case of any affordable transaction account-- (A) an insured depository institution may impose a reasonable per-transaction charge for any withdrawal transaction described in subsection (a)(3) other than a transaction required under such subsection to be provided free; or (B) the depository institution may impose the fees and charges normally applied to other consumer transaction accounts available at that depository institution. (2) Limitations.-- (A) Periodic cycle fee adjustment.--The amount of any charge per periodic cycle imposed by an insured depository institution on any affordable transaction account pursuant to paragraph(1)(B) shall be reduced by the charge imposed under subsection (a)(4). (B) Maximum amount.--At no time shall the total amount of fees and charges imposed by an insured depository institution on any affordable transaction account exceed the total amount of fees and charges that is normally applied to other consumer transaction accounts available at the depository institution. (c) Conditions for Opening any Affordable Transaction Account.--An insured depository institution may require as a condition for opening or maintaining any affordable transaction account that-- (1) the holder of the account be a resident of the State in which the account is opened or maintained; and (2) the deposits to the account of recurring payments such as Social Security, wage, or pension payments be made by direct deposit if that form of deposit is available to both the consumer and the depository institution. (d) Other Terms and Conditions.-- (1) In general.--Except as provided in this section and any regulations prescribed under this section, any affordable transaction account may be offered by an insured depository institution subject to the same rules, conditions, and terms normally applicable to other consumer transaction accounts offered by the depository institution. (2) Prohibition on discrimination against affordable transaction account holders in providing other services.--The amount of any fee or charge imposed on a holder of any affordable transaction account by an insured depository institution for specific services provided to such account holder which are not directly related to the maintenance of such account may not exceed the fee or charge imposed by the depository institution for providing the same services in connection with other consumer transaction accounts offered by the depository institution. (e) Affordable Transaction Accounts Not Required for Individuals Who Maintain Other Transaction Accounts.--An insured depository institution shall not be required to permit any person to open or maintain an affordable transaction account pursuant to this section if such person maintains another consumer transaction account either at that depository institution or any other insured depository institution. (f) Alternative Arrangements.--In lieu of the affordable transaction account required by this section, an insured depository institution may make available an alternative form of account or other banking services if the appropriate Federal banking agency determines that such alternative form of account or services are at least as advantageous to consumers as the affordable transaction account. (g) Disclosure Requirements.--. (1) Posted notices.--If an insured depository institution posts in the public area of any office of the institution a notice of the availability of other consumer transaction accounts, the depository institution shall also post equally conspicuous notice in such public area and in the same manner the availability of its affordable transaction accounts. (2) Printed material.--If an insured depository institution makes available in the public area of any office of the institution printed material describing the terms of its other consumer transaction accounts, the depository institution shall also make comparable descriptive printed material concerning the affordable transaction accounts available in the same such area and in the same manner. (h) Definitions.--For purposes of this section, the following definitions shall apply: (1) Consumer transaction account.--For purposes of this section, the term ``consumer transaction account'' means a demand deposit account, negotiable order of withdrawal account, share draft account, or any similar transaction account used primarily for personal, family or household purposes. (2) Depository institution.--The term ``depository institution'' has the same meaning as in section 19(b)(1)(A) of the Federal Reserve Act. (3) Federal banking agency.--The term ``Federal banking agency''-- (A) has the same meaning as in section 3(z) of the Federal Deposit Insurance Act; and (B) includes the National Credit Union Administration Board. (4) Insured depository institution.--The term ``insured depository institution''-- (A) has the same meaning as in section 3(c)(2) of the Federal Deposit Insurance Act; and (B) includes an insured credit union (as defined in section 101(7) of the Federal Credit Union Act. (i) Compliance With More Stringent State Law.--If a depository institution operates in a State the laws of which, including regulations, require a depository institution operating in such State to meet requirements for affordable transaction accounts which are more advantageous to the consumer than the requirements of this section or the regulations prescribed under this section, such depository institution may not be treated as a qualified depository institution for purposes of section 19(b)(12) of the Federal Reserve Act, unless such depository institution meets the requirements of this section and the requirements of such State law. (j) Rule of Construction.--No provision of this section, title LXII of the Revised Statutes of the United States, the Home Owners' Loan Act, the Bank Enterprise Act of 1991, or any other Federal law may be construed as preempting, or providing any basis for the Comptroller of the Currency or the Director of the Office of Thrift Supervision to conclude that Federal law in any way preempts, the law of any State which requires depository institution operating in that State to provide affordable transaction accounts, including the Omnibus Consumer Protection and Banking Deregulation Act of 1994 of the State of New York and the New Jersey Consumer Checking Account Act (as in effect on the the date of the enactment of this Act).
summary: Requires the Federal reserve banks to transfer specified surplus funds to the Board for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury for FY 2001 through 2005. Prohibits replenishment of the surplus fund during the fiscal year for which such transfer is made. Mandates that each insured depository institution make available to consumers a consumer transaction account to be known as an "affordable transaction account". Sets forth operational parameters to be prescribed by the Board.