< Back to H.R. 3407 (104th Congress, 1995–1996)

Text of the Thrift Charter Merger Commission Act of 1996

This bill was introduced on May 7, 1996, in a previous session of Congress, but was not enacted. The text of the bill below is as of May 7, 1996 (Introduced).

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HR 3407 IH

104th CONGRESS

2d Session

H. R. 3407

To establish the Thrift Charter Merger Commission, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

May 7, 1996

Mr. ROTH introduced the following bill; which was referred to the Committee on Banking and Financial Services, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To establish the Thrift Charter Merger Commission, 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; PURPOSES.

    (a) SHORT TITLE- This Act may be cited as the ‘Thrift Charter Merger Commission Act of 1996’.

    (b) PURPOSE- It is the purpose of this Act to establish a nonpartisan commission to--

      (1) examine the complex legal and public policies issues involved in the proposed elimination of savings association charters and the conversion of such institutions into banks, the short- and long-term consequences of such proposed actions on the financial services industry and consumers, and other related issues;

      (2) make recommendations to the Congress on the most efficient, fairest, and least disruptive way to achieve the conversion of such institutions into banks and resolve the legal, policy, and other issues relating to the holding companies of such associations; and

      (3) review ways to rationalize the regulation of depository institutions and reorganize the Federal banking agencies.

SEC. 2. ESTABLISHMENT.

    There is hereby established a commission to be known as the ‘Thrift Charter Merger Commission’ (hereafter in this Act referred to as the ‘Commission’).

SEC. 3. MEMBERSHIP.

    (a) NUMBER AND APPOINTMENT-

      (1) IN GENERAL- The Commission shall be composed of 8 members appointed by the President, by and with the advise and consent of the Senate, from among individuals especially qualified to serve on such Commission by reason of their education, training, and experience.

      (2) NOMINATION SCHEDULE- The President shall transmit to the Senate the nominations for appointment to the Commission by no later than February 15, 1997.

      (3) CONSULTATION WITH CONGRESS- In selecting individuals for nomination for appointments to the Commission, the President should consult with--

        (A) the Speaker of the House of Representatives concerning the appointment of 2 members;

        (B) the majority leader of the Senate concerning the appointment of 2 members;

        (C) the minority leader of the House of Representatives concerning the appointment of 1 member; and

        (D) the minority leader of the Senate concerning the appointment of 1 member.

      (4) PROHIBITION ON APPOINTMENT OF FEDERAL OFFICERS OR EMPLOYEES TO COMMISSION- No officer or employee of any Federal department or agency, including any member of the Board of Governors of the Federal Reserve System, may be appointed as a member of the Commission.

      (5) BALANCE OF INTERESTS- Recognizing that the individuals with the experience and expertise which qualify them for service on the Commission are likely to have been employed by or represented depository institutions or Federal banking agencies, the President, in the consultations pursuant to paragraph (3) and the selection of individuals for nominations for appointments to the Commission, shall seek to attain a balance in the interests represented, at the time of the nomination or in the past, by members of the Commission.

    (b) CHAIRPERSON- At the time the President nominates individuals for appointment to the Commission, the President shall designate one such individual who shall serve as Chairperson of the Commission.

    (c) TERMS- Each member of the Commission shall serve for the life of the Commission.

    (d) PUBLIC MEETINGS-

      (1) IN GENERAL- Each meeting of the Commission, other than meetings in which classified information is to be discussed, shall be open to the public.

      (2) OPEN TO MEMBERS OF CONGRESS- All the proceedings, information, and deliberations of the Commission shall be open, upon request, to the following:

        (A) The Chairman and the ranking minority party member of the Committee on Banking, Housing, and Urban Affairs of the Senate, or such other members of such committee as may be designated by such Chairman or ranking minority party member.

        (B) The Chairman and the ranking minority party member of the Subcommittee on Financial Institutions and Regulatory Relief of the Committee on Banking, Housing, and Urban Affairs of the Senate, or such other members of such subcommittee as may be designated by such Chairman or ranking minority party member.

        (C) The Chairman and the ranking minority party member of the Committee on Banking and Financial Services of the House of Representatives, or such other members of the committee as may be designated by such Chairman or ranking minority party member.

        (D) The Chairman and ranking minority party member of the Subcommittee on Financial Institutions and Consumer Credit of the Committee on Banking and Financial Services of the House of Representatives, or such other members of the subcommittee as may be designated by such Chairman or ranking minority party member.

    (e) VACANCIES- A vacancy on the Commission shall be filled in the same manner as the original appointment.

    (f) PAY AND TRAVEL EXPENSES-

      (1) PAY OF MEMBERS OF COMMISSION-

        (A) IN GENERAL- Each member of the Commission, other than the Chairperson, shall be paid at a rate equal to the daily equivalent of the minimum annual rate of basic pay payable for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the actual performance of duties vested in the Commission.

        (B) CHAIRPERSON- The Chairperson of the Commission shall be paid for each day referred to in subparagraph (A) at a rate equal to the daily equivalent of the minimum annual rate of basic pay payable for level III of the Executive Schedule under section 5314 of title 5, United States Code.

      (2) TRAVEL EXPENSES- Members shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code.

    (g) NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT- The Federal Advisory Committee Act shall not apply with respect to the Commission.

SEC. 4. DIRECTOR AND STAFF OF COMMISSION.

    (a) DIRECTOR-

      (1) APPOINTMENT- The Commission shall have a Director who shall be appointed by the Commission.

      (2) PAY- The Director shall be paid at the rate of basic pay payable for level IV of the Executive Schedule.

    (b) STAFF-

      (1) APPOINTMENT- The Director, with the approval of the Commission, may appoint and fix the pay of such additional personnel as the Director considers appropriate.

      (2) PAY- An individual appointed pursuant to paragraph (1) may not receive pay in excess of the annual rate of basic pay payable for level V of the Executive Schedule.

    (c) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS- The Director and staff of the Commission may be--

      (1) appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service; and

      (2) paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates.

    (d) EXPERTS AND CONSULTANTS- The Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed the daily equivalent of the annual rate of basic pay payable for level V of the Executive Schedule.

    (e) STAFF OF FEDERAL AGENCIES-

      (1) IN GENERAL- Upon request of the Director, the head of any Federal department or agency may detail, on a reimbursable basis, any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this Act.

      (2) LIMIT ON DETAILS FROM BANKING AGENCIES- Not more than 1/3 of the staff of the Commission at any time may be employees detailed from Federal banking agencies.

SEC. 5. POWERS OF COMMISSION.

    (a) HEARINGS AND SESSIONS- The Commission may, for the purpose of carrying out this Act, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Commission considers appropriate.

    (b) POWERS OF MEMBERS AND AGENTS- Any member or agent of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take by this section.

    (c) OBTAINING OFFICIAL DATA-

      (1) IN GENERAL- The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this Act.

      (2) TRANSMITTAL BY AGENCIES- Upon request of the Chairperson of the Commission, the head of a department or agency of the United States shall furnish information to the Commission.

    (d) MAILS- The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the United States.

    (e) ADMINISTRATIVE SUPPORT SERVICES- Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out its responsibilities under this Act.

    (f) CONTRACT AUTHORITY- The Commission may contract with and compensate government and private agencies or persons for the lease of space and the provision of other services, without regard to section 3709 of the Revised Statutes.

SEC. 6. DUTIES OF COMMISSION.

    (a) IN GENERAL- The Commission shall carry out the purposes of this Act.

    (b) CONSIDERATION OF SPECIFIC ISSUES- In addition to such other issues as the Commission may find appropriate to review, and make recommendations with respect to, in order to carry out the purposes of this Act, the Commission shall consider and make recommendations with respect to the following issues:

      (1) CONVERSION PERIOD- The appropriate period of time during which a savings association would be required to convert to a bank charter or liquidate.

      (2) FORM OF BANK CHARTER- The form of any bank charter to which savings associations would be required to convert and the bank powers which would be associated with any such charter, including the feasibility of establishing a community bank charter with more limited commercial banking powers than full-service banks.

      (3) APPLICABILITY TO STATE-CHARTERED THRIFTS- The manner in which legislation requiring the conversion of savings associations to banks would be applied to State-chartered savings associations.

      (4) TREATMENT OF THRIFT POWERS- The treatment of powers of savings associations which are not permitted for banks following any conversion of a savings association to a bank.

      (5) TREATMENT OF THRIFT HOLDING COMPANIES- The extent to which the conversion of savings associations to banks should require a change in the existing savings and loan holding company framework, the powers of such companies (including diversified savings and loan holding companies), and the regulation of such companies (including consideration of the most appropriate regulator for such companies) and the appropriate period of time during which any such change should be implemented.

      (6) FICO CARRYING COSTS- All appropriate sources of funds for paying interest on, and other costs incurred in connection with the obligations issued by the Financing Corporation, including the surplus funds of the Federal Reserve System, net earnings of the deposit insurance funds, banks, savings associations, credit unions, Government corporations and other Government sponsored enterprises, unexpended funds appropriated to the Resolution Trust Corporation, and any other feasible source of funds.

      (7) RECAPITALIZATION OF THE SAIF- The manner in which the Savings Association Insurance Fund should be recapitalized.

      (8) BRANCHING- The appropriate treatment, after any conversion of an savings association to a bank, of branches which the savings association was operating before the conversion.

      (9) REGULATIONS- The extent to which the regulations applicable to savings associations differ from regulations applicable to banks, and the extent to which a transition period and special transition rules may be appropriate with regard to those areas where such regulations differ in connection with the conversions of savings associations to banks.

      (10) FEDERAL HOME LOAN BANK MEMBERSHIP- The manner in which membership eligibility and withdrawal requirements with respect to Federal home loan banks shall apply to savings associations following any conversion of the associations to banks and the extent to which banks should have unlimited access to advances from such home loan banks.

      (11) REORGANIZATION OF FEDERAL BANKING AGENCIES- The manner in which Federal banking agencies should be reorganized, consolidated, or abolished.

      (12) TREATMENT OF BANKING AGENCY EMPLOYEES DURING AND AFTER ANY REORGANIZATION- The appropriate treatment of employees of Federal banking agencies who are or would be affected by any reorganization, consolidation, or abolition of any Federal banking agency.

      (13) ‘OAKAR’ BANKS- The appropriate treatment of banks which have deposits insured by the Savings Association Insurance Fund pursuant to section 5(d)(3) of the Federal Deposit Insurance Act in connection with the conversion of savings associations to banks.

    (c) PREPARATION OF IMPLEMENTING BILL- After completing consideration of the issues required to be considered by the Commission, the Commission shall prepare a bill consisting only of--

      (1) provisions directly related to--

        (A) the conversion of savings associations to banks;

        (B) issues directly related to such conversions (including the issues specified in subsection (b)); and

        (C) other purposes of this Act;

      (2) if changes in existing laws or new statutory authority is required to carry out the purposes of this Act, provisions, necessary to carry out such purposes, either repealing or amending existing laws or providing new statutory authority; and

      (3) provisions necessary for purposes of complying with section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 in connection with such legislative provisions.

SEC. 7. REPORTS AND IMPLEMENTING BILL.

    (a) INTERIM REPORTS- The Commission may submit to the President and the Congress interim reports as the Commission considers appropriate.

    (b) FINAL REPORT-

      (1) REPORT REQUIRED- The Commission shall submit a final report to the President and the Congress not later than October 1, 1997.

      (2) CONTENTS- The final report shall contain a detailed statement of the findings and conclusions of the Commission, together with a final draft version of the implementing bill prepared pursuant to section 6(c) and such recommendations for administrative actions as the Commission considers appropriate.

    (c) FINAL IMPLEMENTING BILL-

      (1) IN GENERAL- Before the later of December 1, 1997, or 30 legislative days after submitting the final report with the final draft version of the implementing bill to the Congress pursuant to subsection (b)(2), the Commission shall, after taking into account such comments on the final draft version of the implementing bill as have been transferred to the Commission by any committee of the House of Representatives or the Senate (which has jurisdiction over legislation involving subject matters

which would be affected by the implementing bill), the Commission shall submit a final implementing bill to the House of Representatives and the Senate.

      (2) COMPUTATION OF LEGISLATIVE DAYS- In computing the number of legislative days for purposes of paragraph (1), there shall be excluded any day on which either House of the Congress is not in session.

SEC. 8. CONSIDERATION OF BILL IMPLEMENTING PURPOSES OF THIS ACT.

    (a) RULES OF HOUSE OF REPRESENTATIVES AND SENATE- The provisions of this section are enacted by the Congress--

      (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they are deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of implementing bills described in section 6(c) and they supersede other rules only to the extent that they are inconsistent therewith; and

      (2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House.

    (b) IMPLEMENTING BILL DEFINED- For purposes of this section, the term ‘implementing bill’ means only a bill of either House of Congress which is submitted by the Commission pursuant to section 7(c) and introduced as provided in subsection (c) (of this section).

    (c) INTRODUCTION AND REFERRAL-

      (1) INTRODUCTION ON DAY OF SUBMISSION- On the day on which an implementing bill is submitted to the House of Representatives and the Senate by the Commission under section 7(c), the implementing bill submitted shall be--

        (A) introduced (by request) in the House by the majority leader of the House, for himself and the minority leader of the House, or by Members of the House designated by the majority leader and minority leader of the House; and

        (B) introduced (by request) in the Senate by the majority leader of the Senate, for himself and the minority leader of the Senate, or by Members of the Senate designated by the majority leader and minority leader of the Senate.

      (2) SUBSEQUENT INTRODUCTION IF A HOUSE IS NOT IN SESSION- If either House is not in session on the day on which an implementing bill is submitted, the implementing bill shall be introduced in that House, as provided paragraph (1), on the first day after such date of submission on which the House is in session.

      (3) COMMITTEE REFERRALS- An implementing bill introduced in either House pursuant to paragraph (1) or (2) shall be referred by the presiding officer of such House to the appropriate committee, or, in the case of a bill containing provisions within the jurisdiction of 2 or more committees, jointly to such committees for consideration of those provisions within their respective jurisdictions.

    (d) AMENDMENTS PROHIBITED-

      (1) IN GENERAL- No amendment to an implementing bill shall be in order in either the House of Representatives or the Senate.

      (2) NO MOTION TO SUSPEND APPLICATION OF SUBSECTION- No motion to suspend the application of this subsection shall be in order in either House.

      (3) NO UNANIMOUS CONSENT REQUESTS- A request to suspend the application of this subsection by unanimous consent shall not be in order in either House and it shall not be in order for the presiding officer in either House to entertain any such request.

    (e) PERIOD FOR COMMITTEE AND FLOOR CONSIDERATION-

      (1) COMMITTEE CONSIDERATION- If any committee of either House to which an implementing bill has been referred has not reported such bill to such House as of the close of the 45th day after the introduction of the bill, the committee shall be automatically discharged from further consideration of the bill and the bill shall be placed on the appropriate calendar.

      (2) VOTE ON FINAL PASSAGE- A vote on final passage of an implementing bill shall be taken in each House on or before the close of the 15th day after the bill is reported by the committee or committees of that House to which the bill was referred, or after such committee or committees have been discharged from further consideration of the bill.

      (3) CONSIDERATION BY 1 HOUSE AFTER PASSAGE OF BILL BY OTHER HOUSE- If, before the passage by 1 House of an implementing bill of such House, the House receives the same implementing bill from the other House, then--

        (A) the procedure in that House shall be the same as if no implementing bill had been received from the other House; but

        (B) the vote on final passage shall be on the implementing bill of the other House.

      (4) COMPUTATION OF LEGISLATIVE DAYS- For purposes of this subsection, in computing a number of days in either House, there shall be excluded any day on which that House is not in session.

    (f) PROCEDURAL RULES FOR FLOOR CONSIDERATION IN THE HOUSE-

      (1) HIGHLY PRIVILEGED MOTION-

        (A) IN GENERAL- A motion in the House of Representatives to proceed to the consideration of an implementing bill shall be highly privileged and not debatable.

        (B) MOTION NOT AMENDABLE- An amendment to the motion described in subparagraph (A) shall not be in order.

        (C) NO MOTION TO RECONSIDER- No motion to reconsider the vote by which the motion described in subparagraph (A) is agreed to or disagreed to shall be in order in the House of Representatives.

      (2) DEBATE-

        (A) TIME LIMIT- Debate in the House of Representatives on an implementing bill shall be limited to not more than 20 hours, which shall be divided equally between those favoring and those opposing the bill.

        (B) NONDEBATABLE MOTION TO FURTHER LIMIT DEBATE- A motion to further limit debate on an implementing bill shall not be debatable.

      (3) NO MOTION TO RECONSIDER OR RECOMMIT- It shall not be in order in the House of Representatives to move to recommit an implementing bill or to move to reconsider the vote by which an implementing bill is agreed to or disagreed to.

      (4) MOTIONS TO POSTPONE CONSIDERATION OR PROCEED TO CONSIDERATION OF OTHER BUSINESS NONDEBATABLE- Motions to postpone, made in the House of Representatives with respect to the consideration of an implementing bill, and motions to proceed to the consideration of other business, shall be decided without debate.

      (5) APPEALS FROM RULINGS OF THE CHAIR NONDEBATABLE- All appeals from the decisions of the Chair relating to the application of the Rules of the House of Representatives to the procedure relating to an implementing bill shall be decided without debate.

      (6) RULES OF THE HOUSE OTHERWISE APPLY- Except to the extent specifically provided in the preceding paragraphs of this subsection, consideration of an implementing bill in the House of Representatives shall be governed by the Rules of the House of Representatives applicable to other bills in similar circumstances.

    (g) PROCEDURAL RULES FOR FLOOR CONSIDERATION IN THE SENATE-

      (1) PRIVILEGED MOTION-

        (A) IN GENERAL- A motion in the Senate to proceed to the consideration of an implementing bill shall be privileged and not debatable.

        (B) MOTION NOT AMENDABLE- An amendment to the motion described in subparagraph (A) shall not be in order.

        (C) NO MOTION TO RECONSIDER- A motion to reconsider the vote by which the motion described in subparagraph (A) is agreed to or disagreed to shall not be in order in the Senate.

      (2) DEBATE-

        (A) TIME LIMIT GENERALLY- Debate in the Senate on an implementing bill, and all debatable motions and appeals in connection with the debate on such bill, shall be limited to not more than 20 hours which shall be equally divided between, and controlled by, the majority leader and the minority leader or their designees.

        (B) TIME LIMIT ON DEBATABLE MOTIONS OR APPEALS- Debate in the Senate on any debatable motion or appeal in connection with an implementing bill shall be limited to not more than 1 hour, to be equally divided between, and controlled by, the mover and the manager of the bill, except that in the event the manager of the bill is in favor of any such motion or appeal, the time in opposition thereto, shall be controlled by the minority leader or his designee.

        (C) ALLOTMENT OF TIME DURING CONSIDERATION OF DEBATABLE MOTION OR APPEAL- The majority leader and the minority leader may, from time under their control on the passage of an implementing bill, allot additional time to any Senator during the consideration of any debatable motion or appeal.

        (D) NONDEBATABLE MOTION TO FURTHER LIMIT DEBATE- A motion in the Senate to further limit debate is not debatable.

      (3) NO MOTION TO RECOMMIT- It shall not be in order in the Senate to move to recommit an implementing bill.

SEC. 9. TERMINATION.

    The Commission shall terminate 30 days after the final text of the implementing bill has been submitted to the Congress pursuant to section 7(c).

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for the fiscal years 1997 and 1998 such sums as may be necessary to carry out this Act.

SEC. 11. BUDGET ACT COMPLIANCE.

    Any spending authority (as defined in subparagraphs (A) and (C) of section 401(c)(2) of the Congressional Budget Act of 1974) authorized by this Act shall be effective only to such extent and in such amounts as are provided in appropriation Acts.