HR 4332 IH

To protect consumers from exorbitant fees for basic financial services, and for other purposes.

April 13, 2000

Ms. SCHAKOWSKY (for herself, Mr. HINCHEY, Ms. WATERS, and Mr. MARKEY) introduced the following bill; which was referred to the Committee on Banking and Financial Services, and in addition to the Committee on Commerce, 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

To protect consumers from exorbitant fees for basic financial 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; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Financial Consumers' Bill of Rights Act'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purpose.

Sec. 3. Prohibition on exorbitant late fees on credit card accounts.

Sec. 4. Prohibition on exorbitant fees for bounced checks.

Sec. 5. Fair ATM fees for consumers.

Sec. 6. Lifeline banking examination required under Community Reinvestment Act of 1977.

Sec. 7. Preservation of bank fee report requirements.

Sec. 8. Prohibition on arbitration clauses imposed on consumers without their consent.

Sec. 9. Amendment to privacy provisions of the Gramm-Leach-Bliley Act.

Sec. 10. Improved availability of antifraud hotline information.

Sec. 11. Commission on alternatives to the use of Social Security numbers as identifying numbers in public records.

Sec. 12. Three free teller transactions monthly.

SEC. 2. FINDINGS AND PURPOSE.

(a) FINDINGS- The Congress makes the following findings:

(1) A survey conducted jointly by the Consumer Federation of America and Consumer Action 1998 found that 67 of 116 credit card issuers charged late fees in excess of $25 while only two of the credit card issuers surveyed charged no late fee at all.

(2) The 1998 annual survey of Illinois voters by the Coalition for Consumer Rights found that 77 percent of the voters supported a ban on surcharges on a consumer for the use of an automated teller machine operated by a financial institution other than the institution holding the accounts of the consumer.

(3) The 1999 survey of bank fees entitled `Big Banks, Bigger Fees' by the United States Public Interest Research Group found that large banks increased the fee imposed on consumers for writing checks on insufficient funds by 10 percent from 1997 to 1999.

SEC. 3. PROHIBITION ON EXORBITANT LATE FEES ON CREDIT CARD ACCOUNTS.

(a) IN GENERAL- Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following new subsection:

`(h) LIMITATION ON LATE FEES-

`(1) IN GENERAL- In the case of any credit card account under an open-end consumer credit plan, the amount of any fee or additional finance charge which may be imposed for the failure to make a payment on an outstanding balance under such account by a particular date or by the end of a particular period shall not exceed the lesser of--

`(A) the amount equal to two times the amount most recently published by the Board pursuant to paragraph (2); or

`(B) the total balance of credit outstanding with respect to such account as of such date or the end of such period.'.

`(2) ANNUAL DETERMINATION OF AVERAGE COST- The Board shall--

`(A) obtain annually a sample of all creditors which is representative on the basis of geographic location and asset size, of the cost to creditors resulting from failures of consumers to make payments on outstanding balances on credit card accounts under open-end consumer credit plans on a timely basis;

`(B) on the basis of the sample obtained under subparagraph (A), determine the average cost to all creditors resulting from failures described in such subparagraph; and

`(C) publish such amount in the Federal Register.'.

(b) ANNUAL REPORT TO CONGRESS REQUIRED- The Board of Governors of the Federal Reserve System shall prepare and submit to the Congress a report of the results of each survey conducted and determination made pursuant to section 127(h)(2).

(c) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with respect to payments on an outstanding balance on a credit card account under an open-end consumer credit plan which become due after the end of the 6-month period beginning on the date of the enactment of this Act.

SEC. 4. PROHIBITION ON EXORBITANT FEES FOR BOUNCED CHECKS.

(a) IN GENERAL- Section 607 of the Expedited Funds Availability Act (12 U.S.C. 4006) is amended by adding at the end the following new subsection:

`(f) LIMITATION ON FEES FOR INSUFFICIENT FUNDS OF THE DRAWER-

`(1) ORIGINATING DEPOSITORY INSTITUTION- If--

`(A) a check which is drawn on or payable from an account at a depository institution is presented to such depository institution for payment; and

`(B) the amount of the check exceeds the balance in the account,

the amount of any fee or other charge which may be imposed by the depository institution against the account due to the presentment of a check for which there are insufficient funds (whether or not the depository institution pays the check) may not exceed an amount equal to two times the amount most recently published by the Board pursuant to paragraph (4).

`(2) RECEIVING DEPOSITORY INSTITUTION- In the case of a check drawn on an account at an originating institution which is dishonored by the originating institution due to the lack of sufficient funds in such account to pay the check, a receiving depository institution may not impose any fee in connection with handling such check, or any chargeback of any provisional settlement of such check, due to such dishonorment on the person who deposited or otherwise presented such check for negotiation.

`(3) FEES FOR OVERDRAFT PROTECTION NOT AFFECTED- Paragraph (1) shall not be construed as affecting the finance charge otherwise applicable to an extension of credit resulting from the overdraft created in connection with the payment by an originating depository institution of a check for which there were insufficient funds in the consumer's account.

`(4) ANNUAL DETERMINATION OF AVERAGE COST- The Board shall--

`(A) obtain annually, with the cooperation of other Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), a sample of all depository institutions subject to the jurisdiction of the agency, which is representative by geographic location and asset size, of the cost to a depository institution for processing checks for which there are insufficient funds for payment and either making the payment (without taking into account the overdraft created by the payment) or dishonoring and returning such check;

`(B) on the basis of the sample obtained under subparagraph (A), determine the average cost to all depository institutions resulting from processing checks for which there are insufficient funds for payment; and

`(C) publish such amount in the Federal Register.'.

(b) ANNUAL REPORT- The Board of Governors of the Federal Reserve System shall prepare and submit to the Congress a report of the results of each survey conducted and determination made pursuant to section 607(f)(4) of the Expedited Funds Availability Act.

(c) EFFECTIVE DATE- The amendment made by subsection (a) shall apply after the end of the 6-month period beginning on the date of the enactment of this Act.

SEC. 5. FAIR ATM FEES FOR CONSUMERS.

(a) DEFINITIONS- Section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a) is amended--

(1) in paragraph (10), by striking `and' at the end;

(2) in paragraph (11), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following new paragraphs:

`(12) the term `electronic terminal surcharge' means a transaction fee assessed by a financial institution that is the owner or operator of the electronic terminal; and

`(13) the term `electronic banking network' means a communications system linking financial institutions through electronic terminals.'.

(b) IN GENERAL- Section 905 of the Electronic Fund Transfer Act (12 U.S.C. 1693c) is amended by adding at the end the following new subsection:

`(d) LIMITATION ON FEES- With respect to a transaction conducted at an electronic terminal, an electronic terminal surcharge may not be assessed against a consumer if the transaction--

`(1) does not relate to or affect an account held by the consumer with the financial institution that is the owner or operator of the electronic terminal; and

`(2) is conducted through a national or regional electronic banking network.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply after the end of the 6-month period beginning on the date of the enactment of this Act.

SEC. 6. LIFELINE BANKING EXAMINATION REQUIRED UNDER COMMUNITY REINVESTMENT ACT OF 1977.

(a) IN GENERAL- Section 804(a)(1) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(a)(1)) is amended by inserting `and the lifeline banking needs of each such community' after `safe and sound operation of such institution'.

(b) TECHNICAL AND CONFORMING AMENDMENTS-

(1) PURPOSES- Section 802(b) of the Community Reinvestment Act of 1977 (12 U.S.C. 2901(b)) is amended by inserting `and the lifeline banking needs of such local communities' before the period at the end.

(2) EVALUATIONS- Section 807(a)(1) of the Community Reinvestment Act of 1977 (12 U.S.C. 2906(a)(1)) is amended by striking `credit needs' and inserting `credit and lifeline banking needs'.

SEC. 7. PRESERVATION OF BANK FEE REPORT REQUIREMENTS.

(a) IN GENERAL- Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any report required to be submitted under section 1002(b) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

(b) SUNSET OF REPORT- Section 1002(b) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended by adding at the end the following new paragraph:

`(4) SUNSET- Notwithstanding section 108(b) of the Riegle-Neil Interstate Banking and Branching Efficiency Act of 1994, no report shall be required under this subsection after the end of the 10-year period beginning on the date of the enactment of the Financial Services Modernization Act of 1999.'.

(c) CREDIT UNIONS INCLUDED IN SURVEY- Section 1002(a)(1) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended by inserting `, including credit unions' after `insured depository institutions'.

SEC. 8. PROHIBITION ON ARBITRATION CLAUSES IMPOSED ON CONSUMERS WITHOUT THEIR CONSENT.

(a) IN GENERAL- The Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end the following:

`TITLE X--DISPUTE RESOLUTION

`SEC. 1001. SHORT TITLE; TABLE OF CONTENTS

`(a) SHORT TITLE- This title may be cited as the `Consumer Fairness Act'.

`(b) TABLE OF CONTENTS- The table of contents for this title is as follows:

`TITLE X--DISPUTE RESOLUTION

`SEC. 1002. DEFINITIONS.

`For purposes of this title, the following definitions shall apply:

`(1) CONSUMER- The term `consumer' means any individual.

`(2) CONSUMER TRANSACTION- The term `consumer transaction' means the sale or rental of goods, services, or real property, including an extension of credit or the provision of any other financial product or service, to an individual in a transaction entered into primarily for personal, family, or household purposes.

`(3) CONSUMER CONTRACT- The term `consumer contract' means any written, standardized form contract between the parties to a consumer transaction.

`SEC. 1003. PROHIBITION ON ARBITRATION CLAUSES IMPOSED ON CONSUMERS WITHOUT THEIR CONSENT.

`(a) IN GENERAL- A written provision in any consumer transaction or consumer contract which requires binding arbitration (whether by the terms of such transaction or contract directly or at the request of any party to the transaction or contract) to resolve any controversy arising out of or related to the transaction or contract, or the failure to perform the whole or any part of the transaction or contract shall constitute a violation of this title, shall not be enforceable, and shall be treated as an unfair and deceptive trade act or practice under Federal or State law.

`(b) POST-CONTROVERSY AGREEMENTS- Subsection (a) shall not apply with respect to a written agreement to determine by binding arbitration an existing controversy arising out of a consumer transaction or consumer contract if the written agreement has been entered into by the parties to the consumer transaction or consumer contract after the controversy has arisen.

`(c) COMPLIANCE- Compliance with the requirements of this title shall be enforced in the same manner as compliance with the requirements imposed under the preceding title are enforced under section 917 of such title.

`(d) COORDINATION WITH OTHER LAW- No provision of this section shall be construed as annulling, altering, affecting, or superseding any Federal law, or the laws of any State, relating to arbitration in connection with consumer transactions or consumer contracts, except to the extent that those laws are inconsistent with the provisions of this section, and then only to the extent of the inconsistency.'.

(b) APPLICABILITY- The amendments made by this section shall apply to all consumer transactions and consumer contracts entered into on, or after the date of the enactment of this Act, amendments entered into on or after such date of enactment to any consumer transaction or consumer contract without regard to the date such transaction was consummated or such contract entered into, and to all controversies pending or filed on, or arising after, the date of such date of enactment.

SEC. 9. AMENDMENT TO PRIVACY PROVISIONS OF THE GRAMM-LEACH-BLILEY ACT.

Title V of the Gramm-Leach-Bliley Act is amended to read as follows:

`TITLE V--PRIVACY OF CONSUMER INFORMATION

`Subtitle A--Disclosure of Nonpublic Personal Information

`SEC. 501. PROTECTION OF NONPUBLIC PERSONAL INFORMATION.

`(a) PRIVACY OBLIGATION POLICY- It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers' nonpublic personal information.

`(b) FINANCIAL INSTITUTIONS SAFEGUARDS- In furtherance of the policy in subsection (a), each agency or authority described in section 504(a) shall establish by rule or order appropriate standards for the financial institutions subject to their jurisdiction, and the Commission shall establish such standards for any financial institutions not subject to such jurisdiction, relating to administrative, technical, and physical safeguards--

`(1) to insure the security and confidentiality of customer records and information;

`(2) to protect against any anticipated threats or hazards to the security or integrity of such records; and

`(3) to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer.

`SEC. 502. OBLIGATIONS WITH RESPECT TO PERSONAL INFORMATION.

`(a) GENERAL REQUIREMENTS- Except as otherwise provided in this subtitle, a financial institution may not, directly or through any affiliate, disclose or make an unrelated use of any nonpublic personal information collected by the financial institution in connection with any transaction with a consumer in any financial product or any financial service, unless such financial institution provides or has provided to the consumer a notice that complies with section 503 and the rules thereunder.

`(b) OPT-IN REQUIRED FOR INFORMATION TRANSFERS-

`(1) AFFIRMATIVE CONSENT REQUIRED- Each agency or authority described in section 504(a) shall by rule prohibit a financial institution that is subject to its jurisdiction from making available any nonpublic personal information to any affiliate or other person that is not an employee or agent of the institution, unless the consumer to whom the information pertains--

`(A) has affirmatively consented in accordance with such rule to the transfer of such information; and

`(B) has not withdrawn the consent.

`(2) FLEXIBILITY OF FORM- A financial institution may, in complying with paragraph (1), present the opportunity to consent in a clear and conspicuous manner that permits the consumer to consent--

`(A)(i) with respect to both affiliates and nonaffiliated persons;

`(ii) separately with respect to affiliates generally and nonaffiliated persons generally; or

`(iii) separately with respect to specified affiliates and nonaffiliated persons; and

`(B) separately with respect to specified financial and nonfinancial products and services that may be offered to the consumer.

`(3) DENIAL OF SERVICE PROHIBITED- The rule prescribed pursuant to paragraph (1) shall prohibit a financial institution from denying any consumer a financial product or a financial service for the refusal by the consumer to grant the consent required by such rule.

`(c) ACCESS TO AND CORRECTION OF INFORMATION VENDED TO THIRD PARTIES-

`(1) RULE REQUIRED- Each agency or authority described in section 504(a) shall by rule require a financial institution that is subject to its jurisdiction and that makes available nonpublic personal information collected by the financial institution to any person or entity other than an employee or agent of such institution to afford that consumer--

`(A) the opportunity to examine, upon request, all nonpublic personal information that was so made available; and

`(B) the opportunity to dispute the accuracy of any of such information, and to present evidence thereon.

`(d) LIMITATIONS ON THE SHARING OF ACCOUNT NUMBER INFORMATION FOR MARKETING PURPOSES- A financial institution shall not disclose an account number or similar form of access number or access code for a credit card account, deposit account, or transaction account of a consumer to any affiliate or any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail or other electronic means to the consumer.

`(e) LIMITS ON REUSE OF INFORMATION- Except as otherwise provided in this subtitle, an affiliate or a nonaffiliated third party that receives from a financial institution nonpublic personal information under this section shall not, directly or through an affiliate of such receiving third party, disclose such information to any other person that is an affiliate or a nonaffiliated third party of both the financial institution and such receiving third party, unless such disclosure would be lawful if made directly to such other person by the financial institution.

`(f) GENERAL EXCEPTIONS- Subsections (a) and (b) shall not prohibit the disclosure of nonpublic personal information--

`(1) as necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with--

`(A) servicing or processing a financial product or service requested or authorized by the consumer;

`(B) maintaining or servicing the consumer's account with the financial institution; or

`(C) a proposed or actual securitization, secondary market sale (including sales of servicing rights), or similar transaction related to a transaction of the consumer;

`(2) with the consent or at the direction of the consumer;

`(3)(A) to protect the confidentiality or security of the financial institution's records pertaining to the consumer, the service or product, or the transaction therein; (B) to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability; (C) for required institutional risk control, or for resolving customer disputes or inquiries; (D) to persons holding a legal or beneficial interest relating to the consumer; or (E) to persons acting in a fiduciary or representative capacity on behalf of the consumer;

`(4) to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the financial institution, and the institution's attorneys, accountants, and auditors;

`(5) to the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978, to law enforcement agencies (including a Federal functional regulator, the Secretary of the Treasury with respect to subchapter II of chapter 53 of title 31, United States Code, and chapter 2 of title I of Public Law 91-508 (12 U.S.C. 1951-1959), a State insurance authority, or the Federal Trade Commission), self-regulatory organizations, or for an investigation on a matter related to public safety;

`(6)(A) to a consumer reporting agency in accordance with the Fair Credit Reporting Act, or (B) from a consumer report reported by a consumer reporting agency in accordance with the Fair Credit Reporting Act;

`(7) in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal information concerns solely consumers of such business or unit; or

`(8) to comply with Federal, State, or local laws, rules, and other applicable legal requirements; to comply with a properly authorized civil, criminal, or regulatory investigation or subpoena or summons by Federal, State, or local authorities; or to respond to judicial process or government regulatory authorities having jurisdiction over the financial institution for examination, compliance, or other purposes as authorized by law.

`SEC. 503. NOTICE CONCERNING DISCLOSING INFORMATION.

`(a) RULE REQUIRED- Each agency or authority described in section 504(a) shall prescribe rules in accordance with this section to prohibit unfair and deceptive acts or practices in connection with the disclosing of nonpublic personal information or with making unrelated uses of such information. Such rules shall require any financial institution, through the use of a form that complies with the rules prescribed under subsection (b), to clearly and conspicuously disclose to the consumer at the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship--

`(1) the categories of nonpublic personal information that are collected by the financial institution;

`(2) the practices and policies of the financial institution with respect to disclosing nonpublic personal information, or making unrelated uses of such information, including--

`(A) the categories of persons to whom the information is or may be disclosed or who may be permitted to make unrelated uses of such information, other than the persons to whom the information must be provided to effect, administer, or enforce the transaction; and

`(B) the practices and policies of the institution with respect to disclosing or making unrelated uses of nonpublic personal information of persons who have ceased to be customers of the financial institution;

`(3) the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information;

`(4) the practices and policies of the institution with respect to providing consumers the opportunity to examine and dispute information pursuant to the rule prescribed under section 502(c); and

`(5) the right of the consumer under such section to examine, upon request, the nonpublic personal information, to dispute the accuracy of any of such information, and to present evidence thereon.

`(b) DESIGN OF NOTICE REQUIREMENTS- In prescribing the form of a notice for purposes of subsection (a), each agency or authority described in section 504(a) shall ensure that consumers are provided a clear and conspicuous disclosure that permits them to compare differences in the measures that the financial institution takes, and the policies that the institution has established, to protect the consumer's privacy as compared to the measures taken and the policies established by other financial institutions. Such form shall specifically identify the rights the institution affords consumers to grant or deny consent to (1) the disclosing of nonpublic personal information for any purpose other than as required in order to effect, administer, or enforce the consumer's transaction, or (2) the making of an unrelated use of such information.

`(c) ADDITIONAL CONTENTS OF RULES; EXEMPTIVE RULES- Each agency or authority described in section 504(a) shall, by rule, and may by order--

`(1) specify the disclosures and uses of information which, for purposes of this subtitle and the rules prescribed thereunder, may be treated as necessary to effect, administer, or enforce a consumer's transaction with respect to a variety of financial services and financial products;

`(2) specify timing requirements with respect to notices to new and existing customers, which shall not require notices more frequently than annually unless there has been a change in the information required to be disclosed pursuant to subsection (a); and

`(3) provide, consistent with the purposes of this subtitle, exemptions or temporary waivers to, or delayed effective dates for, any requirement of this subtitle or the rules prescribed thereunder.

`SEC. 504. ENFORCEMENT.

`(a) IN GENERAL- This subtitle and the rules prescribed thereunder shall be enforced by the Federal functional regulators, the State insurance authorities, and the Federal Trade Commission with respect to financial institutions and other persons subject to their jurisdiction under applicable law, as follows:

`(1) Under section 8 of the Federal Deposit Insurance Act, in the case of--

`(A) national banks, Federal branches and Federal agencies of foreign banks by the Office of the Comptroller of the Currency;

`(B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, organizations operating under section 25 or 25A of the Federal Reserve Act, bank holding companies by the Board of Governors of the Federal Reserve System;

`(C) banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), insured State branches of foreign banks by the Board of Directors of the Federal Deposit Insurance Corporation; and

`(D) savings association the deposits of which are insured by the Federal Deposit Insurance Corporation by the Director of the Office of Thrift Supervision.

`(2) Under the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal or state chartered credit union.

`(3) Under the Securities Exchange Act of 1934, by the Securities and Exchange Commission with respect to any broker-dealer.

`(4) Under the Investment Company Act of 1940, by the Securities and Exchange Commission with respect to investment companies.

`(5) Under the Investment Advisers Act of 1940, by the Securities and Exchange Commission with respect to investment advisers registered with the Commission under such Act.

`(6) Under the Federal Home Loan Bank Act, by the Federal Housing Finance Board with respect to Federal home loan banks.

`(7) In the case of any person engaged in providing insurance, by the State insurance authority, if that State has elected to become a participating State, notwithstanding any of the limitations of section 104 of the Gramm-Leach-Bliley Act.

`(8) Under the Federal Trade Commission Act, by the Federal Trade Commission for--

`(A) any other financial institution (other than a person engaged in providing insurance) or any other person that is not subject to the jurisdiction of any agency or authority under paragraphs (1) through (6) of this subsection; and

`(B) any person engaged in providing insurance who is domiciled in a State that does not elect to become a participating State.

`(b) ENFORCEMENT OF SECTION 501-

`(1) IN GENERAL- Except as provided in paragraph (2), the agencies and authorities described in subsection (a) shall implement the standards prescribed under section 501(b) in the same manner, to the extent practicable, as standards prescribed pursuant to subsection (a) of section 39 of the Federal Deposit Insurance Act are implemented pursuant to such section.

`(2) EXCEPTION- The agencies and authorities described in paragraphs (3), (4), (5), (7), and (8) of subsection (a) shall implement the standards prescribed under section 501(b) by rule with respect to the financial institutions subject to their respective jurisdictions under subsection (a).

`(c) STATE ACTION FOR VIOLATIONS-

`(1) AUTHORITY OF STATES- In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this subtitle or a rule prescribed under this subtitle, other than section 501 or a rule prescribed under such section, the State--

`(A) may bring an action to enjoin such violation in any appropriate United States district court or in any other court of competent jurisdiction; and

`(B) may bring an action on behalf of the residents of the State to enforce compliance with such rule, to obtain damages, restitution, or other compensation on behalf of residents of such State, or to obtain such further and other relief as the court may deem appropriate.

`(2) RIGHTS OF FEDERAL REGULATORS-

`(A) PRIOR NOTICE- The State shall serve prior written notice of any action under paragraph (1) upon the Federal Trade Commission and provide the Federal Trade Commission with a copy of its complaint, except in any case in which such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action.

`(B) RIGHT TO INTERVENE- The Federal Trade Commission shall transmit the notice received under subparagraph (A) to the agency or authority that has jurisdiction of the subject of the complaint, and such agency or authority shall have the right--

`(i) to intervene in an action under paragraph (1);

`(ii) upon so intervening, to be heard on all matters arising therein;

`(iii) to remove the action to the appropriate United States district court; and

`(iv) to file petitions for appeal.

`(3) INVESTIGATORY POWERS- For purposes of bringing any action under this subsection, no provision of this subsection shall be construed as preventing the chief law enforcement officer, or an official or agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

`(4) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION PENDING- If a Federal agency or authority has instituted a civil action for a violation of this subtitle, no State may, during the pendency of such action, bring an action under this section against any defendant named in the complaint of the Federal agency or authority or such agency for any violation of this subtitle that is alleged in that complaint.

`(d) DEFINITIONS- The terms used in subsection (a)(1) that are not defined in this subtitle or otherwise defined in section 3(s) of the Federal Deposit Insurance Act shall have the meaning given to them in section 1(b) of the International Banking Act of 1978.

`SEC. 505. FAIR CREDIT REPORTING ACT AMENDMENT.

`(a) AMENDMENT- Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended--

`(1) in subsection (d), by striking everything following the end of the second sentence; and

`(2) by striking subsection (e) and inserting in lieu thereof the following:

` `(e) REGULATORY AUTHORITY-

` `(1) The Federal banking agencies referred to in paragraphs (1) and (2) of subsection (b) shall jointly prescribe such regulations as necessary to carry out the purposes of this Act with respect to any persons identified under paragraphs (1) and (2) of subsection (b).

` `(2) The Administrator of the National Credit Union Administration shall prescribe such regulations as necessary to carry out the purposes of this Act with respect to any persons identified under paragraph (3) of subsection (b).

` `(3) The Federal Trade Commission shall prescribe such regulations as necessary to carry out the purposes of this Act with respect to any persons identified under subsection (a).'.

`(b) RELATION TO OTHER PROVISIONS- Except for the amendment made by this section, nothing in this title shall be construed to modify, limit, or supersede the operation of the Fair Credit Reporting Act, and no inference shall be drawn on the basis of the provisions of this title regarding whether information is transaction or experience information under section 603 of such Act.

`SEC. 506. STATE ELECTION TO PARTICIPATE.

`(a) REGULATIONS- The Secretary of the Treasury may promulgate such regulations as may be necessary to establish the procedures governing whether the election required under section 504(a)(7) has been made.

`(b) DEADLINE- The deadline for a State to elect to become a participating state is the first day of the first calendar quarter beginning after the close of the first legislative session of the State legislature that begins on or after the date the regulations required by section 504(a) are issued in final form. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.

`SEC. 507. RELATION TO STATE LAWS.

`(a) IN GENERAL- This subtitle shall not be construed as superseding, altering, or affecting the statutes, regulations, orders, or interpretations in effect in any State, except to the extent that such statutes, regulations, orders, or interpretations are inconsistent with the provisions of this subtitle, and then only to the extent of the inconsistency.

`(b) GREATER PROTECTION UNDER STATE LAW- For purposes of this section, a State statute, regulation, order, or interpretation is not inconsistent with the provisions of this subtitle if the protection such statute, regulation, order, or interpretation affords any person is greater than the protection provided under this subtitle as determined by the Commission or a Federal functional regulator, on its own motion or upon the petition of any interested party.

`SEC. 508. DEFINITIONS.

`As used in this subtitle:

`(1) COMMISSION- The term `Commission' means the Federal Trade Commission.

`(2) FEDERAL FUNCTIONAL REGULATOR- The term `Federal functional regulator' means--

`(A) the Board of Governors of the Federal Reserve System;

`(B) the Office of the Comptroller of the Currency;

`(C) the Board of Directors of the Federal Deposit Insurance Corporation;

`(D) the Director of the Office of Thrift Supervision;

`(E) the National Credit Union Administration Board; and

`(F) the Securities and Exchange Commission.

`(3) FINANCIAL INSTITUTION- The term `financial institution' means any institution the business of which is engaging in financial activities or activities that are incidental or complementary to financial activities, as determined under section 4(k) of the Bank Holding Company Act of 1956.

`(4) NONPUBLIC PERSONAL INFORMATION-

`(A) The term `nonpublic personal information' means personally identifiable financial information--

`(i) provided by a consumer to a financial institution;

`(ii) resulting from any transaction with the consumer or the service performed for the consumer; or

`(iii) otherwise obtained by the financial institution.

`(B) Such term does not include publicly available information, as such term is defined by the regulations prescribed under section 504.

`(C) Notwithstanding subparagraph (B), such term--

(i) shall include any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable information other than publicly available information; but

`(ii) shall not include any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived without using any nonpublic personal information.

`(5) DIRECTORY INFORMATION- The term `publicly available directory information' means subscriber list information required to be made available for publication pursuant to section 222(e) of the Communications Act of 1934 (47 U.S.C. 222(3)).

`(6) UNRELATED USE- The term `unrelated use', when used with respect to information collected by the financial institution in connection with any transaction with a consumer in any financial product or any financial service, means any use other than a use that is necessary to effect, administer, or enforce such transaction.

`(7) AFFILIATE- The term `affiliate' means any company that controls, is controlled by, or is under common control with another company.

`(8) NONAFFILIATED THIRD PARTY- The term `nonaffiliated third party' means any entity that is not an affiliate of, or related by common ownership or affiliated by corporate control with, the financial institution, but does not include a joint employee of such institution.

`(9) NECESSARY TO EFFECT, ADMINISTER, OR ENFORCE- The disclosing or use of nonpublic personal information shall be treated as necessary to effect or administer a transaction with a consumer if the disclosing or use--

`(A) is required, or is a usual, appropriate, or acceptable method, to carry out the transaction or the product or service business of which the transaction is a part, and record or service or maintain the consumer's account in the ordinary course of providing the financial service or financial product, or to administer or service benefits or claims relating to the transaction or the product or service business of which it is a part, and includes--

`(i) providing the consumer or the consumer's agent or broker with a confirmation, statement, or other record of the transaction, or information on the status or value of the financial service or financial product; and

`(ii) the accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial institution or any other party;

`(B) is required, or is one of the lawful or appropriate methods, to enforce the rights of the financial institution or of other persons engaged in carrying out the financial transaction, or providing the product or service;

`(C) is required, or is a usual, appropriate, or acceptable method, for insurance underwriting at the consumer's request or for reinsurance purposes, or for any of the following purposes as they relate to a consumer's insurance: account administration, reporting, investigating, or preventing fraud or material misrepresentation, processing premium payments, processing insurance claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by Federal or State law; or

`(D) the disclosure is required, or is a usual, appropriate or acceptable method, in connection with--

`(i) the authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using a debit, credit or other payment card, check, or account number, or by other payment means;

`(ii) the transfer of receivables, accounts or interests therein; or

`(iii) the audit of debit, credit or other payment information.

Each agency or authority described in section 504(a) shall, consistent with the purposes of this subtitle, prescribe by rule actions that shall, in a variety of financial services, and with respect to a variety of financial products, be treated as necessary to effect, administer, or enforce a financial transaction.

`(10) FINANCIAL SERVICES; FINANCIAL PRODUCTS; TRANSACTION; RELATED TRANSACTION- Each agency or authority described in section 504(a) shall, consistent with the purposes of this subtitle, prescribe by rule definitions of the terms `financial services', `financial products', `transaction', `related transaction', and `unrelated third party' for purposes of this subtitle.

`(11) STATE INSURANCE AUTHORITY- The term `State insurance authority' means, in the case of any person engaged in providing insurance, the State insurance authority of the State in which the person is domiciled.

`(12) CONSUMER- The term `consumer' means an individual who obtains, from a financial institution, financial products or services which are to be used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

`(13) CUSTOMER RELATIONSHIP- The term `time of establishing a customer relationship' shall be defined by the regulations prescribed under section 504.

`SEC. 509. EFFECTIVE DATE.

`This subtitle shall take effect 6 months after the date on which rules are required to be prescribed under section 504(a)(3), except--

`(1) to the extent that a later date is specified in the rules prescribed under section 504; and

`(2) that sections 504 and 506 shall be effective upon the enactment.

`Subtitle B--Fraudulent Access to Financial Information

`SEC. 521. PRIVACY PROTECTION FOR CUSTOMER INFORMATION OF FINANCIAL INSTITUTIONS.

`(a) PROHIBITION ON OBTAINING CUSTOMER INFORMATION BY FALSE PRETENSES- It shall be a violation of this subtitle for any person to obtain or attempt to obtain, or cause to be disclosed or attempt to cause to be disclosed to any person, customer information of a financial institution relating to another person--

`(1) by making a false, fictitious, or fraudulent statement or representation to an officer, employee, or agent of a financial institution;

`(2) by making a false, fictitious, or fraudulent statement or representation to a customer of a financial institution; or

`(3) by providing any document to an officer, employee, or agent of a financial institution, knowing that the document is forged, counterfeit, lost, or stolen, was fraudulently obtained, or contains a false, fictitious, or fraudulent statement or representation.

`(b) PROHIBITION ON SOLICITATION OF A PERSON TO OBTAIN CUSTOMER INFORMATION FROM FINANCIAL INSTITUTION UNDER FALSE PRETENSES- It shall be a violation of this subtitle to request a person to obtain customer information of a financial institution, knowing that the person will obtain, or attempt to obtain, the information from the institution in any manner described in subsection (a).

`(c) NONAPPLICABILITY TO LAW ENFORCEMENT AGENCIES- No provision of this section shall be construed so as to prevent any action by a law enforcement agency, or any officer, employee, or agent of such agency, to obtain customer information of a financial institution in connection with the performance of the official duties of the agency.

`(d) NONAPPLICABILITY TO FINANCIAL INSTITUTIONS IN CERTAIN CASES- No provision of this section shall be construed so as to prevent any financial institution, or any officer, employee, or agent of a financial institution, from obtaining customer information of such financial institution in the course of--

`(1) testing the security procedures or systems of such institution for maintaining the confidentiality of customer information;

`(2) investigating allegations of misconduct or negligence on the part of any officer, employee, or agent of the financial institution; or

`(3) recovering customer information of the financial institution which was obtained or received by another person in any manner described in subsection (a) or (b).

`(e) NONAPPLICABILITY TO INSURANCE INSTITUTIONS FOR INVESTIGATION OF INSURANCE FRAUD- No provision of this section shall be construed so as to prevent any insurance institution, or any officer, employee, or agency of an insurance institution, from obtaining information as part of an insurance investigation into criminal activity, fraud, material misrepresentation, or material nondisclosure that is authorized for such institution under State law, regulation, interpretation, or order.

`(f) NONAPPLICABILITY TO CERTAIN TYPES OF CUSTOMER INFORMATION OF FINANCIAL INSTITUTIONS- No provision of this section shall be construed so as to prevent any person from obtaining customer information of a financial institution that otherwise is available as a public record filed pursuant to the securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934).

`SEC. 522. ADMINISTRATIVE ENFORCEMENT.

`(a) ENFORCEMENT BY FEDERAL TRADE COMMISSION- Compliance with this subtitle shall be enforced by the Federal Trade Commission in the same manner and with the same power and authority as the Commission has under the title VIII, the Fair Debt Collection Practices Act, to enforce compliance with such title.

`(b) NOTICE OF ACTIONS- The Federal Trade Commission shall--

`(1) notify the Securities and Exchange Commission whenever the Federal Trade Commission initiates an investigation with respect to a financial institution subject to regulation by the Securities and Exchange Commission;

`(2) notify the Federal banking agency (as defined in section 3(z) of the Federal Deposit Insurance Act) whenever the Commission initiates an investigation with respect to a financial institution subject to regulation by such Federal banking agency; and

`(3) notify the appropriate State insurance regulator whenever the Commission initiates an investigation with respect to a financial institution subject to regulation by such regulator.

`(c) STATE ACTION FOR VIOLATIONS-

`(1) AUTHORITY OF STATES- In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this subtitle, the State--

`(A) may bring an action to enjoin such violation in any appropriate United States district court or in any other court of competent jurisdiction;

`(B) may bring an action on behalf of the residents of the State to recover damages of not more than $1,000 for each violation; and

`(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorney fees as determined by the court.

`(2) RIGHTS OF FEDERAL REGULATORS-

`(A) PRIOR NOTICE- The State shall serve prior written notice of any action under paragraph (1) upon the Federal Trade Commission and provide the Federal Trade Commission with a copy of its complaint, except in any case in which such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action.

`(B) RIGHT TO INTERVENE- The Federal Trade Commission shall have the right--

`(i) to intervene in an action under paragraph (1);

`(ii) upon so intervening, to be heard on all matters arising therein;

`(iii) to remove the action to the appropriate United States district court; and

`(iv) to file petitions for appeal.

`(3) INVESTIGATORY POWERS- For purposes of bringing any action under this subsection, no provision of this subsection shall be construed as preventing the chief law enforcement officer, or an official or agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

`(4) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION PENDING- If the Federal Trade Commission has instituted a civil action for a violation of this subtitle, no State may, during the pendency of such action, bring an action under this section against any defendant named in the complaint of the Federal Trade Commission or such agency for any violation of this subtitle that is alleged in that complaint.

`SEC. 523. CRIMINAL PENALTY.

`(a) IN GENERAL- Whoever knowingly and intentionally violates, or knowingly and intentionally attempts to violate, section 521 shall be fined in accordance with title 18, United States Code, or imprisoned for not more than 5 years, or both.

`(b) ENHANCED PENALTY FOR AGGRAVATED CASES- Whoever violates, or attempts to violate, section 521 while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period shall be fined twice the amount provided in subsection (b)(3) or (c)(3) (as the case may be) of section 3571 of title 18, United States Code, imprisoned for not more than 10 years, or both.

`SEC. 524. RELATION TO STATE LAWS.

`(a) IN GENERAL- This subtitle shall not be construed as superseding, altering, or affecting the statutes, regulations, orders, or interpretations in effect in any State, except to the extent that such statutes, regulations, orders, or interpretations are inconsistent with the provisions of this subtitle, and then only to the extent of the inconsistency.

`(b) GREATER PROTECTION UNDER STATE LAW- For purposes of this section, a State statute, regulation, order, or interpretation is not inconsistent with the provisions of this subtitle if the protection such statute, regulation, order, or interpretation affords any person is greater than the protection provided under this subtitle as determined by the Commission, on its own motion or upon the petition of any interested party.

`SEC. 525. AGENCY GUIDANCE.

`In furtherance of the objectives of this subtitle, each Federal banking agency (as defined in section 3(z) of the Federal Deposit Insurance Act) and the Securities and Exchange Commission or self-regulatory organizations, as appropriate, shall review regulations and guidelines applicable to financial institutions under their respective jurisdictions and shall prescribe such revisions to such regulations and guidelines as may be necessary to ensure that such financial institutions have policies, procedures, and controls in place to prevent the unauthorized disclosure of customer financial information and to deter and detect activities proscribed under section 521.

`SEC. 526. REPORTS.

`(a) REPORT TO THE CONGRESS- Before the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General, in consultation with the Federal Trade Commission, Federal banking agencies, the Securities and Exchange Commission, appropriate Federal law enforcement agencies, and appropriate State insurance regulators, shall submit to the Congress a report on the following:

`(1) The efficacy and adequacy of the remedies provided in this subtitle in addressing attempts to obtain financial information by fraudulent means or by false pretenses.

`(2) Any recommendations for additional legislative or regulatory action to address threats to the privacy of financial information created by attempts to obtain information by fraudulent means or false pretenses.

`(b) ANNUAL REPORT BY ADMINISTERING AGENCIES- The Federal Trade Commission and the Attorney General shall submit to Congress an annual report on number and disposition of all enforcement actions taken pursuant to this subtitle.

`SEC. 527. DEFINITIONS.

`For purposes of this subtitle, the following definitions shall apply:

`(1) CUSTOMER- The term `customer' means, with respect to a financial institution, any person (or authorized representative of a person) to whom the financial institution provides a product or service, including that of acting as a fiduciary.

`(2) CUSTOMER INFORMATION OF A FINANCIAL INSTITUTION- The term `customer information of a financial institution' means any information maintained by or for a financial institution which is derived from the relationship between the financial institution and a customer of the financial institution and is identified with the customer.

`(3) DOCUMENT- The term `document' means any information in any form.

`(4) FINANCIAL INSTITUTION-

`(A) IN GENERAL- The term `financial institution' means any institution engaged in the business of providing financial services to customers who maintain a credit, deposit, trust, or other financial account or relationship with the institution.

`(B) CERTAIN FINANCIAL INSTITUTIONS SPECIFICALLY INCLUDED- The term `financial institution' includes any depository institution (as defined in section 19(b)(1)(A) of the Federal Reserve Act), any broker or dealer, any investment adviser or investment company, any insurance company, any loan or finance company, any credit card issuer or operator of a credit card system, and any consumer reporting agency that compiles and maintains files on consumers on a nationwide basis (as defined in section 603(p)).

`(C) SECURITIES INSTITUTIONS- For purposes of subparagraph (B)--

`(i) the terms `broker' and `dealer' have the meanings provided in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c);

`(ii) the term `investment adviser' has the meaning provided in section 202(a)(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)); and

`(iii) the term `investment company' has the meaning provided in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3).

`(D) FURTHER DEFINITION BY REGULATION- The Federal Trade Commission, after consultation with Federal banking agencies and the Securities and Exchange Commission, may prescribe regulations clarifying or describing the types of institutions which shall be treated as financial institutions for purposes of this subtitle.'.

SEC. 10. IMPROVED AVAILABILITY OF ANTIFRAUD HOTLINE INFORMATION.

(a) DUTY OF FURNISHERS OF INFORMATION TO CONSUMER REPORTING AGENCY TO PROVIDE NUMBER OF TOLL-FREE ANTIFRAUD HOT LINE- Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)) is amended by adding at the end the following new paragraph:

`(6) DUTY TO PROVIDE TOLL-FREE ANTIFRAUD TELEPHONE HOTLINE NUMBER-

`(A) IN GENERAL- A creditor who furnishes information with respect to a consumer to a consumer reporting agency shall provide such agency with a toll-free telephone number at which the consumer can contact the creditor about potential fraud involving the consumer's relationship with the creditor.

`(B) KEEPING NUMBER CURRENT- If a toll-free telephone number referred to in subparagraph (A) changes, the creditor who maintains the number shall promptly report such change to any consumer reporting agency to whom the prior number was furnished pursuant to such subparagraph.

`(C) CREDITOR DEFINED- For purposes of this paragraph, the term `creditor' has the meaning given such term in section 103.'.

(b) INFORMATION REQUIRED TO BE INCLUDED IN CONSUMER REPORTS- Section 609(a) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at the end the following new paragraphs:

`(6) ANTIFRAUD HOTLINES- The following information relating to fraud hotlines:

`(A) A toll-free telephone number at which the consumer can contact the consumer reporting agency about potential fraud involving the consumer.

`(B) The toll-free telephone number at which the consumer can contact any creditor listed in the report about potential fraud involving the consumer.

`(C) A toll-free telephone number and the address on the World Wide Web at which the consumer can contact the Federal Trade Commission about potential fraud involving the consumer.

`(7) FRAUD ALERT- A statement that the consumer may request the consumer reporting agency to--

`(A) maintain a fraud watch on the consumer's file; and

`(B) request any user of information in the file to contact the consumer before opening or changing any account of or on behalf of the consumer.'.

SEC. 11. COMMISSION ON ALTERNATIVES TO THE USE OF SOCIAL SECURITY NUMBERS AS IDENTIFYING NUMBERS IN PUBLIC RECORDS.

(a) ESTABLISHMENT- There is hereby established the Federal Commission on Alternative Identifying Numbers (hereafter in this section referred to as the `Commission').

(b) DUTIES OF THE COMMISSION- The Commission shall--

(1) develop a model alternative to the use of Social Security numbers as identifying numbers for individuals in public documents, records, and licenses; and

(2) make recommendations for the implementation of a model, and a time-frame for such implementation, that would phase out the use of Social Security numbers as identifying numbers for individuals by any government, any government agency or department, or any other government establishment or public entity, other than for purposes of administering the Social Security Act and the Internal Revenue Code of 1986.

(c) MEMBERSHIP-

(1) NUMBER AND APPOINTMENT- The Commission shall be composed of five members as follows:

(A) The Chairman of the Federal Trade Commission.

(B) One member appointed by the President from among the governors of the several States.

(C) One member appointed by the President from among individuals who are mayors of cities in the United States.

(D) One member appointed by the President from among individuals who, by virtue of their education, training, and experience as representatives of consumer organizations, are especially qualified to represent consumers on the Commission.

(E) One member appointed by the President from among individuals who, by virtue of their education, training, and experience in business or as representatives of businesses, are especially qualified to represent the business community on the Commission.

(2) POLITICAL AFFILIATION- Not more than two members appointed under subparagraphs (B), (C), (D), and (E) of paragraph (1) may be of the same political party.

(3) CONTINUATION OF MEMBERSHIP- If a member was appointed to the Commission as a governor or mayor and the member ceases to be a governor or mayor that member may continue as a member for not longer than the 30-day period beginning on the date that member ceases to be a governor or mayor, as the case may be.

(4) TERMS- Each member appointed under subparagraphs (B), (C), (D), and (E) of paragraph (1) shall be appointed for the life of the Commission.

(5) VACANCIES- A vacancy in the Commission shall be filled in the manner in which the original appointment was made.

(6) NO COMPENSATION- Members of the Commission appointed under subparagraphs (B), (C), (D), and (E) of paragraph (1) shall serve without pay.

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

(8) QUORUM- A majority of the members of the Commission shall constitute a quorum but a lesser number may hold hearings.

(9) CHAIRPERSON- The Chairman of the Federal Trade Commission shall serve as the Chairperson of the Commission.

(c) STAFF-

(1) EXPERTS AND CONSULTANTS- The Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code.

(2) STAFF OF FEDERAL TRADE COMMISSION- The Chairman of the Federal Trade Commission may detail, on a reimbursable basis, any of the personnel of that agency to the Commission to assist it in carrying out its duties under this section.

(d) POWERS OF THE COMMISSION-

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

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

(3) OBTAINING OFFICIAL DATA- The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this section. Upon request of the Chairperson of the Commission, the head of that department or agency shall furnish that information to the Commission.

(4) 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.

(5) 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 section.

(e) REPORT-

(1) IN GENERAL- The Commission shall submit a report to the President and the Congress before the end of the 1-year period beginning on the date of the enactment of this Act.

(2) CONTENTS- The report shall contain a detailed statement of the findings and conclusions of the Commission, together with its recommendations for such legislative and administrative actions as the Commission considers appropriate.

(f) TERMINATION- The Commission shall terminate upon the submission of the report under subsection (e).

SEC. 12. THREE FREE TELLER TRANSACTIONS MONTHLY.

Section 18 of Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection:

`(v) THREE FREE TELLER TRANSACTIONS- Each insured depository institution shall allow each depositor to conduct banking business or otherwise engage in transactions directly with individuals employed by such institution without charge on at least three separate occasions each month.'.

END