[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2592 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2592
To establish a program to promote access to financial services, in
particular for low- and moderate-income persons who lack access to such
services, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 18, 2000
Mr. Sarbanes (for himself, Mr. Daschle, Mr. Dodd, Mr. Kerry, Mr. Bryan,
Mr. Johnson, Mr. Reed, Mr. Schumer, Mr. Bayh, and Mr. Edwards)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing and Urban Affairs
_______________________________________________________________________
A BILL
To establish a program to promote access to financial services, in
particular for low- and moderate-income persons who lack access to such
services, 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 ``First Accounts Act of 2000''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds as follows:
(1) Many low- and moderate-income persons lack adequate
access to basic financial services, such as a low-cost
transaction or savings account at a federally insured
depository institution.
(2) The lack of such basic financial services increases
costs for such persons, reduces their ability to manage their
finances and to save and plan for the future, and limits their
access to other financial products, such as credit cards, home
mortgages, or automobile loans.
(3) Existing products and services may not be adequate to
meet the needs of low- and moderate-income persons for
financial services, such persons may be inadequately informed
about financial issues, and depository institutions may have
insufficient information about such persons to develop suitable
products for them.
(4) Increasing access to basic financial services will
require research and development, incentives to provide basic
accounts and increase access to financial services, and
consumer and depository institution education.
(b) Purpose.--The primary purpose of this Act is to establish a
program to promote access to financial services, in particular for low-
and moderate-income persons who lack access to such services, including
low- and moderate-income persons who do not receive Federal benefits.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Community partner.--The term ``community partner''
means a nonprofit organization, State or local government
agency, quasi-governmental entity, or community development
financial institution (as defined in section 103(5) of the
Community Development and Financial Institutions Act of 1994)
that provides education to low- and moderate-income persons
regarding financial services, or develops or provides financial
services for low- and moderate-income persons or otherwise
facilitates the provision of financial services to such
persons.
(2) Depository institution.--The term ``depository
institution'' means--
(A) any insured depository institution (as defined
in section 3(c) of the Federal Deposit Insurance Act);
and
(B) any insured credit union (as defined in section
101(7) of the Federal Credit Union Act).
(3) Financial services electronic network.--The term
``financial services electronic network'' means an organization
or entity that provides electronic access to an individual's
account at a depository institution, including an automated
teller machine network, point-of-sale network, and a provider
of such services through the Internet.
(4) Indian reservation.--The term ``Indian reservation''
has the same meaning as in section 4(10) of the Indian Child
Welfare Act of 1978 and, to the extent not already included,
includes--
(A) lands held by incorporated Native groups,
regional corporations, and village corporations, as
defined in or established pursuant to the Alaska Native
Claims Settlement Act;
(B) public domain Indian allotments; and
(C) former Indian reservations in the State of
Oklahoma.
(5) Low- and moderate-income.--The term ``low- and
moderate-income'' means a family income that does not exceed--
(A) for nonmetropolitan areas, 80 percent of the
statewide median family income; and
(B) for metropolitan areas, 80 percent of the
greater of statewide median family income or
metropolitan area median family income.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(7) Service area.--
(A) In general.--The term ``service area'' means--
(i) any population census tract for which
the poverty rate is 20 percent or greater,
based on the most recent census data;
(ii) any population census tract--
(I) which is not located within a
metropolitan area; and
(II) for which the median family
income does not exceed 80 percent of
statewide median family income;
(iii) any population census tract--
(I) which is located within a
metropolitan area; and
(II) for which the median family
income does not exceed 80 percent of
the greater of statewide median family
income or the metropolitan area median
family income;
(iv) an Indian reservation; and
(v) any other area that has significant
unmet needs for financial services, as may be
determined by the Secretary.
(B) Application in absence of population census
tracts.--In the case of an area that is not tracted for
population census tracts, the equivalent county
divisions (as defined by the Bureau of the Census for
purposes of defining poverty areas) shall be used in
lieu of a population census tract for purposes of
clauses (i), (ii), and (iii) of subparagraph (A) and in
determining poverty rates and median family income for
purposes of those clauses.
(8) Service population.--The term ``service population''
means individuals, or a group of individuals, who are low- or
moderate-income, or who otherwise lack adequate access to
financial services, as may be determined by the Secretary.
SEC. 4. ESTABLISHMENT OF A PROGRAM FOR EXPANSION OF FINANCIAL SERVICES
TO THE UNDERSERVED.
The Secretary shall establish a program to support and promote--
(1) the expansion of access to financial services, in
particular for low- and moderate-income persons who lack access
to such services, and for other purposes;
(2) the development of new financial products and services
that are adequate to meet the needs of low- and moderate-income
persons for financial services;
(3) education for both low- and moderate-income persons and
depository institutions concerning the availability and use of
financial services for and by such persons; and
(4) such other activities and projects as the Secretary may
determine are consistent with the purpose of this Act.
SEC. 5. POWERS AND AUTHORITIES OF THE SECRETARY.
(a) In General.--In carrying out the program established under
section 4, the Secretary may award grants, enter into cooperative
agreements and contracts, and designate depository institutions as
financial agents of the Treasury, in order to provide for technical
assistance, education, training, or financial services to further the
purpose of this Act.
(b) Specific Powers.--The powers of the Secretary under this Act
shall include the following:
(1) Financial services.--The Secretary may promote access
to financial services by providing financial and technical
assistance to depository institutions for providing low-cost
financial services, including--
(A) electronic transaction accounts;
(B) savings accounts; and
(C) other financial services deemed appropriate by
the Secretary to meet the needs of service areas or
service populations.
(2) Distribution.--The Secretary may promote access to
financial services by providing financial and technical
assistance to depository institutions, financial services
electronic networks, or community partners for expanding the
distribution of financial services to service areas or service
populations, including through financial services electronic
networks.
(3) Education.--The Secretary may promote access to
financial services by--
(A) providing financial education to service areas
or service populations;
(B) providing technical assistance or training to
or by depository institutions or community partners;
and
(C) otherwise promoting financial services to or by
service areas, service populations, depository
institutions, or community partners.
(4) Research and development.--The Secretary may conduct or
support such research and development as the Secretary
considers appropriate in order to further the purpose of this
Act, including the collection of information about access to
financial services.
(c) Selection Criteria.--
(1) In general.--In selecting any depository institution,
community partner, or financial services electronic network as
a recipient of a grant or other assistance under this Act, the
Secretary shall consider--
(A) the likelihood of success of the depository
institution, community partner, or financial services
electronic network in achieving the purpose of the
grant or assistance and carrying out the purpose of
this Act;
(B) the experience of the depository institution,
community partner, or financial services electronic
network in undertaking activities similar to the
activities to be funded or supported by the proceeds of
the grant or other assistance; and
(C) such other factors, including management and
performance criteria, as the Secretary may determine to
be appropriate.
(2) Publication of criteria.--The Secretary shall publish
the selection criteria established pursuant to paragraph (1) in
the Federal Register.
(d) Terms and Conditions.--
(1) In general.--Before providing any assistance under this
Act, the Secretary and each entity to be assisted shall enter
into an agreement that requires such entity to comply with
performance goals and abide by other terms and conditions, as
determined by the Secretary.
(2) Remedial terms and conditions.--The agreement required
by paragraph (1) shall provide that, in the event of fraud,
mismanagement, or noncompliance with the terms of the
agreement, the Secretary shall have discretion to--
(A) require changes to the performance goals;
(B) terminate the agreement or reduce assistance
under the agreement;
(C) require repayment of assistance;
(D) bar an entity from reapplying under the program
established under section 4; or
(E) take such other action as the Secretary may
determine to be appropriate.
(e) Finality of Decisions.--Any determination, including the
selection of recipients of grants and other assistance under this Act,
shall be made in the sole discretion of the Secretary and shall be
final.
(f) Regulations.--The Secretary may prescribe such regulations and
procedures as the Secretary determines to be appropriate to carry out
the program established under section 4 and the purpose of this Act.
SEC. 6. REPORTS.
Not later than 2 years after the date of enactment of this Act, and
annually thereafter, the Secretary shall submit to Congress a report
containing--
(1) a detailed description of the operation of the program
established under section 4;
(2) the findings and conclusions of the Secretary on the
extent to which the program established under section 4 is
meeting the purpose of this Act and the goals of the Secretary
in establishing the program; and
(3) such recommendations for legislative or administrative
action as the Secretary may consider to be appropriate.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--To carry out this Act, there are authorized to be
appropriated to the Secretary, to remain available until expended--
(1) $30,000,000 for fiscal year 2001; and
(2) such sums as may be necessary for each of fiscal years
2002 through 2005.
(b) Administrative Expenses.--
(1) In general.--Of amounts appropriated to the Secretary
under this section, not more than $3,000,000 may be used in any
fiscal year to pay the administrative costs and expenses of the
program established under section 4.
(2) Exclusion of certain costs.--Costs associated with
research and development, training, technical assistance, and
education shall not be considered to be administrative expenses
for purposes of this subsection.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S4201-4202)
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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