REDUCED ASSESSMENT RATE FOR DEPOSITS ATTRIBUTABLE TO LIFELINE ACCOUNTS.

SEC. 232. REDUCED ASSESSMENT RATE FOR DEPOSITS ATTRIBUTABLE TO LIFELINE ACCOUNTS. (a) Qualification of Lifeline Accounts by Federal Reserve Board.— 105 STAT. 2309 (1) In general.— The Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation shall establish minimum requirements for accounts providing basic transaction services for consumers at insured depository institutions in order for such accounts to qualify as lifeline accounts for purposes of this section and section 7(b)(10) of the Federal Deposit Insurance Act. (2) Factors to be considered.— In determining the minimum requirements under paragraph (1) for lifeline accounts at insured depository institutions, the Board and the Corporation shall consider the following factors: (A) Whether the account is available to provide basic transaction services for individuals who maintain a balance of less than $1,000 or such other amount which the Board may determine to be appropriate. (B) Whether any service charges or fees to which the account is subject, if any, for routine transactions do not exceed a minimal amount. (C) Whether any minimum balance or minimum opening requirement to which the account is subject, if any, is not more than a minimal amount. (D) Whether checks, negotiable orders of withdrawal, or similar instruments for making payments or other transfers to third parties may be drawn on the account. (E) Whether the depositor is permitted to make more than a minimal number of withdrawals from the account each month by any means described in subparagraph (D) or any other means. (F) Whether a monthly statement itemizing all transactions for the monthly reporting period is made available to the depositor with respect to such account or a passbook is provided in which all transactions with respect to such account are recorded. (G) Whether depositors are permitted access to tellers at the institution for conducting transactions with respect to such account. (H) Whether other account relationships with the institution are required in order to open any such account. (I) Whether individuals are required to meet any prerequisite which discriminates against low-income individuals in order to open such account. (J) Such other factors as the Board may determine to be appropriate. (3) Definitions.— For purposes of this subsection— (A) Board.— The term “Board” means the Board of Governors of the Federal Reserve System. (B) Insured depository institution.— The term “insured depository institution” has the meaning given to such term in section 3(c)(2) of the Federal Deposit Insurance Act. (C) Lifeline account.— The term “lifeline account” means any transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act) which meets the minimum requirements established by the Board under this subsection. (b) Reduced Assessment Rates for Lifeline Account Deposits.— 105 STAT. 2310 (1) Reporting lifeline account deposits.— Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)) (as amended by sections 122, 123, and 141 of this Act) is amended by redesignating paragraphs (6), (7), (8), (9), and (10) as paragraphs (7), (8), (9), (10), and (11), respectively, and by inserting after paragraph (5) the following new paragraph: “(6) Lifeline account deposits.— In the reports of condition required to be reported under this subsection, the deposits in lifeline accounts (as defined in section 232(a)(3)(C) of the Bank Enterprise Act of 1991) shall be reported separately.”. (2) Assessment rates applicable to lifeline deposits.— Section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)) is amended by redesignating paragraph (10) (as so redesignated by section 103(b) of this Act) as paragraph (11) and by inserting after paragraph (9) the following new paragraph: “(10) Assessment rate for lifeline account deposits.— Notwithstanding any other provision of this subsection, that portion of the average assessment base of any insured depository institution which is attributable to deposits in lifeline accounts (as reported in the institution’s reports of condition pursuant to subsection (a)(6)) shall be subject to assessment at the assessment rate of Vi the maximum rate.”. (3) Assessment procedure.— Section 7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended— (A) by striking subclause (II) of clause (i) and inserting the following new subclause: “(II) such Bank Insurance Fund member’s average assessment base for the immediately preceding semiannual period (minus any amount taken into account under clause (iii) with respect to lifeline account deposits); and”; and (B) by striking subclause (II) of clause (ii) and inserting the following new subclause: “(II) such Savings Association Insurance Fund member’s average assessment base for the immediately preceding semiannual period (minus any amount taken into account under clause (iii) with respect to lifeline account deposits); and”; and (C) by adding at the end the following new clause: “(iii) the semiannual assessment due from any Bank Insurance Fund member or Savings Association Insurance Fund member with respect to lifeline account deposits for any semiannual assessment period shall be the product of— “(I) ½ the assessment rate applicable with respect to such deposits pursuant to paragraph (10) during that semiannual assessment period; and “(II) the portion of such member’s average assessment base for the immediately preceding semiannual period which is attributable to deposits in lifeline accounts (as reported in the institution’s reports of condition pursuant to subsection (a)(6)).”. (c) Availability of Funds.— The provisions of this section shall not take effect until appropriations are specifically provided in advance. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this section.