S 62

112th CONGRESS
1st Session

S. 62

To amend the Federal Deposit Insurance Act to modify requirements relating to the location of bank branches on Indian reservations, and for other purposes.

IN THE SENATE OF THE UNITED STATES

January 25 (legislative day, January 5), 2011

Mr. INOUYE introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs


A BILL

To amend the Federal Deposit Insurance Act to modify requirements relating to the location of bank branches on Indian reservations, 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 `Indian Reservation Bank Branch Act of 2009'.

SEC. 2. REGULATIONS GOVERNING INSURED DEPOSITORY INSTITUTIONS.

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

      `(5) ELECTION BY INDIAN TRIBES TO PERMIT BRANCHING OF BANKS ON INDIAN RESERVATIONS-

        `(A) DEFINITIONS- In this paragraph, the following definitions shall apply:

          `(i) DE NOVO BRANCH- The term `de novo branch' means a branch of a State bank that--

            `(I) is originally established by the State bank as a branch; and

            `(II) does not become a branch of the State bank as a result of--

`(aa) the acquisition by the State bank of an insured depository institution (or a branch of an insured depository institution); or

`(bb) the conversion, merger, or consolidation of any such institution or branch.

          `(ii) HOME STATE-

            `(I) IN GENERAL- The term `home State' means the State in which the main office of a State bank is located.

            `(II) BRANCHES ON INDIAN RESERVATIONS- The term `home State' with respect to a State bank, the main office of which is located within the boundaries of an Indian reservation (in a case in which State law permits the chartering of such a main office on an Indian reservation), means--

`(aa) the State in which the Indian reservation is located; or

`(bb) for an Indian reservation that is located in more than 1 State, the State in which the portion of the Indian reservation containing the main office of the State bank is located.

          `(iii) HOST RESERVATION- The term `host reservation', with respect to a bank, means an Indian reservation located in a State other than the home State of the bank in which the bank maintains, or seeks to establish and maintain, a branch.

          `(iv) INDIAN RESERVATION-

            `(I) IN GENERAL- The term `Indian reservation' means land subject to the jurisdiction of an Indian tribe.

            `(II) INCLUSIONS- The term `Indian reservation' includes--

`(aa) any public domain Indian allotment;

`(bb) any land area located within the outer geographic boundaries recognized as an Indian reservation by a Federal treaty, Federal regulation, decision or order of the Bureau of Indian Affairs or any successor agency thereto, or statute in force with respect to a federally recognized tribal nation;

`(cc) any former Indian reservation in the State of Oklahoma; and

`(dd) any land held by a Native village, Native group, Regional Corporation, or Village Corporation under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

          `(v) INDIAN TRIBE- The term `Indian tribe' has the same meaning as in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

          `(vi) TRIBAL GOVERNMENT-

            `(I) IN GENERAL- The term `tribal government' means the business council, tribal council, or similar legislative or governing body of an Indian tribe--

`(aa) the members of which are representatives elected by the members of the Indian tribe; and

`(bb) that is empowered to enact laws applicable within the Indian reservation of the Indian tribe.

            `(II) MULTITRIBAL RESERVATIONS- The term `tribal government', with respect to an Indian reservation within the boundaries of which are located more than 1 Indian tribe, each of which has a separate council, means a joint business council or similar intertribal governing council that includes representatives of each applicable Indian tribe.

            `(III) INCLUSION- The term `tribal government' includes a governing body of any Regional Corporation or Village Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)).

        `(B) APPROVAL BY CORPORATION- Subject to subparagraph (C), in addition to any other authority under this section to approve an application to establish a branch within the boundaries of an Indian reservation, the Corporation may approve an application of a State bank to establish and operate a de novo branch within the boundaries of 1 or more Indian reservations (regardless of whether the Indian reservations are located within the home State of the State bank), if there is in effect within the host reservation a law enacted by the tribal government of the host reservation that--

          `(i) applies with equal effect to all banks located within the host reservation; and

          `(ii) specifically permits any in-State or out-of-State bank to establish within the host reservation a de novo branch.

        `(C) CONDITIONS-

          `(i) ESTABLISHMENT- An application by a State bank to establish and operate a de novo branch within a host reservation shall not be subject to the requirements and conditions applicable to an application for an interstate merger transaction under paragraphs (1), (3), and (4) of section 44(b).

          `(ii) OPERATION- Subsections (c) and (d)(2) of section 44 shall not apply with respect to a branch of a State bank that is established and operated pursuant to an application approved under this paragraph.

          `(iii) PROHIBITION-

            `(I) IN GENERAL- Except as provided in subclause (II), no State nonmember bank that establishes or operates a branch on 1 or more Indian reservations solely pursuant to paragraph (5) may establish any additional branch outside of such Indian reservation in any State in which the Indian reservation is located.

            `(II) EXCEPTION- Subclause (I) shall not apply if a State nonmember bank described in that subclause would be permitted to establish and operate an additional branch under any other provision of this section, without regard to the establishment or operation by the State nonmember bank of a branch on the subject Indian reservation.'.

SEC. 3. BRANCH BANKS.

    Section 5155 of the Revised Statutes of the United States (12 U.S.C. 36) is amended by inserting after subsection (g) the following:

    `(h) Election by Indian Tribes To Permit Branching of National Banks on Indian Reservations-

      `(1) DEFINITIONS- In this subsection, the following definitions shall apply:

        `(A) DE NOVO BRANCH- The term `de novo branch' means a branch of a national bank that--

          `(i) is originally established by the national bank as a branch; and

          `(ii) does not become a branch of the national bank as a result of--

            `(I) the acquisition by the national bank of an insured depository institution (or a branch of an insured depository institution); or

            `(II) the conversion, merger, or consolidation of any such institution or branch.

        `(B) HOME STATE-

          `(i) IN GENERAL- The term `home State' means the State in which the main office of a national bank is located.

          `(ii) BRANCHES ON INDIAN RESERVATIONS- The term `home State', with respect to a national bank, the main office of which is located within the boundaries of an Indian reservation, means--

            `(I) the State in which the Indian reservation is located; or

            `(II) for an Indian reservation that is located in more than 1 State, the State in which the portion of the Indian reservation containing the main office of the national bank is located.

        `(C) HOST RESERVATION- The term `host reservation', with respect to a national bank, means an Indian reservation located in a State other than the home State of the bank in which the bank maintains, or seeks to establish and maintain, a branch.

        `(D) INDIAN RESERVATION-

          `(i) IN GENERAL- The term `Indian reservation' means land subject to the jurisdiction of an Indian tribe.

          `(ii) INCLUSIONS- The term `Indian reservation' includes--

            `(I) any public domain Indian allotment;

            `(II) any land area located within the outer geographic boundaries recognized as an Indian reservation by a Federal treaty, Federal regulation, decision or order of the Bureau of Indian Affairs or any successor agency thereto, or statute in force with respect to a federally recognized tribal nation;

            `(III) any former Indian reservation in the State of Oklahoma; and

            `(IV) any land held by a Native village, Native group, Regional Corporation, or Village Corporation under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

        `(E) INDIAN TRIBE- The term `Indian tribe' has the same meaning as in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

        `(F) TRIBAL GOVERNMENT-

          `(i) IN GENERAL- The term `tribal government' means the business council, tribal council, or similar legislative or governing body of an Indian tribe--

            `(I) the members of which are representatives elected by the members of the Indian tribe; and

            `(II) that is empowered to enact laws applicable within the Indian reservation of the Indian tribe.

          `(ii) MULTITRIBAL RESERVATIONS- The term `tribal government', with respect to an Indian reservation within the boundaries of which are located more than 1 Indian tribe, each of which has a separate council, means a joint business council or similar intertribal governing council that includes representatives of each applicable Indian tribe.

          `(iii) INCLUSION- The term `tribal government' includes a governing body of any Regional Corporation or Village Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)).

      `(2) APPROVAL BY COMPTROLLER- Subject to paragraph (3), in addition to any other authority under this section to approve an application to establish a national bank branch within the boundaries of an Indian reservation, the Comptroller may approve an application of a national bank to establish and operate a de novo branch within the boundaries of an Indian reservation (regardless of whether the Indian reservation is located within the home State of the national bank), if there is in effect within the host reservation a law enacted by the tribal government of the host reservation that--

        `(A) applies with equal effect to all banks located within the host reservation; and

        `(B) specifically permits any in-State or out-of-State bank to establish within the host reservation a de novo branch.

      `(3) CONDITIONS-

        `(A) ESTABLISHMENT- An application by a national bank to establish and operate a de novo branch within a host reservation shall not be subject to the requirements and conditions applicable to an application for an interstate merger transaction under paragraphs (1), (3), and (4) of section 44(b) of the Federal Deposit Insurance Act (12 U.S.C. 1831u(b)).

        `(B) OPERATION- Subsections (c) and (d)(2) of section 44 of that Act (12 U.S.C. 1831u) shall not apply with respect to a branch of a national bank that is established and operated pursuant to an application approved under this subsection.

        `(C) PROHIBITION-

          `(i) IN GENERAL- Except as provided in clause (ii), no national bank that establishes or operates a branch on 1 or more Indian reservations solely pursuant to subsection (h) may establish any additional branch outside of such Indian reservation in the State in which the Indian reservation is located.

          `(ii) EXCEPTION- Clause (i) shall not apply if a national bank described in that clause would be permitted to establish and operate an additional branch under any other provision of this section or other applicable law, without regard to the establishment or operation by the national bank of a branch on the subject Indian reservation.'.

END