Deposit Insurance Reform Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 3928 To amend the Federal Deposit Insurance Act to permit an insured depository institution to elect to have a higher standard maximum deposit insurance amount applicable to commercial deposits of the institution and to require higher assessments of such an institution, to amend the Federal Credit Union Act to provide a similar program for insured credit unions, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 7, 2023 Mr. SCHIFF introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Federal Deposit Insurance Act to permit an insured depository institution to elect to have a higher standard maximum deposit insurance amount applicable to commercial deposits of the institution and to require higher assessments of such an institution, to amend the Federal Credit Union Act to provide a similar program for insured credit unions, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:28 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3928.IH H3928 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3928 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Deposit Insurance Re- 2 form Act of 2023’’. 3 SEC. 2. ELECTION OF HIGHER STANDARD MAXIMUM DE- 4 POSIT INSURANCE AMOUNT FOR COMMER- 5 CIAL DEPOSITS. 6 Section 11 of the Federal Deposit Insurance Act (12 7 U.S.C. 1821) is amended by adding at the end the fol- 8 lowing: 9 ‘‘(x) ELECTION OF HIGHER STANDARD MAXIMUM 10 DEPOSIT INSURANCE AMOUNT FOR COMMERCIAL DEPOS- 11 ITS.— 12 ‘‘(1) MULTIPLE LEVELS OF DEPOSIT INSUR- 13 ANCE.—The Corporation shall establish multiple lev- 14 els of standard maximum deposit insurance amounts 15 that are applicable to commercial deposits and are 16 above the amount defined under subsection 17 (a)(1)(E). 18 ‘‘(2) ELECTION.—An insured depository institu- 19 tion may elect to apply a standard maximum deposit 20 insurance amount established under paragraph (1) 21 to the commercial deposits of the insured depository 22 institution. 23 ‘‘(3) DEPOSIT INSURANCE FUND ASSESS- 24 MENTS.—The Corporation shall set the assessment 25 rate of an insured depository institution making an 26 VerDate Sep 11 2014 23:28 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3928.IH H3928 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 3928 IH election under paragraph (2) at such higher rate as 1 is necessary to reflect the increased risk to the De- 2 posit Insurance Fund from the failure of an insured 3 depository institution with a higher standard max- 4 imum deposit insurance. 5 ‘‘(4) RULEMAKING.—The Corporation shall 6 issue such rules as may be necessary to carry out 7 this subsection. 8 ‘‘(5) COMMERCIAL DEPOSITS DEFINED.—In 9 this subsection, the term ‘commercial deposits’ 10 means any deposits other than deposits of an indi- 11 vidual (unless the individual is operating in the ca- 12 pacity of a sole proprietorship).’’. 13 SEC. 3. ELECTION OF HIGHER STANDARD MAXIMUM SHARE 14 INSURANCE AMOUNT FOR COMMERCIAL DE- 15 POSITS. 16 Section 207(k) of the Federal Credit Union Act (12 17 U.S.C. 1787(k)) is amended by adding at the end the fol- 18 lowing: 19 ‘‘(7) ELECTION OF HIGHER STANDARD MAX- 20 IMUM SHARE INSURANCE AMOUNT FOR COMMERCIAL 21 DEPOSITS.— 22 ‘‘(A) MULTIPLE LEVELS OF SHARE INSUR- 23 ANCE.—The Board shall establish multiple lev- 24 els of standard maximum share insurance 25 VerDate Sep 11 2014 23:28 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3928.IH H3928 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 3928 IH amounts that are applicable to commercial de- 1 posits and are above the amount defined under 2 paragraph (6). 3 ‘‘(B) ELECTION.—An insured credit union 4 may elect to apply a standard maximum share 5 insurance amount established under subpara- 6 graph (A) to the commercial deposits instead of 7 the amount defined under paragraph (6). 8 ‘‘(C) FUND PREMIUM CHARGES.—The 9 Board shall set the premium charge rate appli- 10 cable to an insured credit union making an elec- 11 tion under subparagraph (B) at such higher 12 rate as is necessary to reflect the increased risk 13 to the Fund from the failure of an insured 14 credit union with a higher standard maximum 15 share insurance amount. 16 ‘‘(D) RULEMAKING.—The Board shall 17 issue such rules as may be necessary to carry 18 out this paragraph. 19 ‘‘(E) COMMERCIAL DEPOSITS DEFINED.— 20 In this paragraph, the term ‘commercial depos- 21 its’ means any deposits other than deposits of 22 an individual (unless the individual is operating 23 in the capacity of a sole proprietorship).’’. 24 Æ VerDate Sep 11 2014 23:28 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3928.IH H3928 pbinns on DSKJLVW7X2PROD with $$_JOB