SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Communist China Subsidy Reduction
Act of 1997''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the People's Republic of China has enjoyed ready access
        to international capital through commercial loans, direct
        investment, sales of securities, bond sales, and foreign aid;
            (2) regarding international commercial lending, the
        People's Republic of China had $48,000,000,000 in loans
        outstanding from private creditors in 1995;
            (3) regarding international direct investment,
        international direct investment in the People's Republic of
        China from 1993 through 1995 totaled $97,151,000,000, and in
        1996 alone totaled $47,000,000,000;
            (4) regarding investment in Chinese securities, the
        aggregate value of outstanding Chinese securities currently
        held by Chinese nationals and foreign persons is
        $175,000,000,000, and from 1993 through 1995 foreign persons
        invested $10,540,000,000 in Chinese stocks;
            (5) regarding investment in Chinese bonds, entities
        controlled by the Government of the People's Republic of China
        have issued 75 bonds since 1988, including 36 dollar-
        denominated bond offerings valued at more than $6,700,000,000,
        and the total value of long-term Chinese bonds outstanding as
        of January 1, 1996, was $11,709,000,000;
            (6) regarding international assistance, the People's
        Republic of China received almost $1,000,000,000 in foreign aid
        grants and an additional $1,566,000,000 in technical assistance
        grants from 1993 through 1995, and in 1995 received
        $5,540,000,000 in bilateral assistance loans, including
        concessional aid, export credits, and related assistance; and
            (7) regarding international financial institutions--
                    (A) despite the People's Republic of China's access
                to international capital and world financial markets,
                international financial institutions have annually
                provided it with more than $4,000,000,000 in loans in
                recent years, amounting to almost a third of the loan
                commitments of the Asian Development Bank and 17.1
                percent of the loan approvals by the International Bank
                for Reconstruction and Development in 1995; and
                    (B) the People's Republic of China borrows more
                from the International Bank for Reconstruction and
                Development and the Asian Development Bank than any
                other country, and loan commitments from those
                institutions to the People's Republic of China
                quadrupled from $1,100,000,000 in 1985 to
                $4,300,000,000 by 1995.

SEC. 3. OPPOSITION OF UNITED STATES TO CONCESSIONAL LOANS TO THE
              PEOPLE'S REPUBLIC OF CHINA.

    Title XV of the International Financial Institutions Act (22 U.S.C.
262o-262o-1) is amended by adding at the end the following:

``SEC. 1503. OPPOSITION OF UNITED STATES TO CONCESSIONAL LOANS TO THE
              PEOPLE'S REPUBLIC OF CHINA.

    ``(a) In General.--The Secretary of the Treasury shall instruct the
United States Executive Directors at each international financial
institution (as defined in section 1702(c)(2) of the International
Financial Institutions Act) to use the voice and vote of the United
States to oppose the provision by the institution of concessional loans
to the People's Republic of China, any citizen or national of the
People's Republic of China, or any entity established in the People's
Republic of China.
    ``(b) Concessional Loans Defined.--As used in subsection (a), the
term `concessional loans' means loans with highly subsidized interest
rates, grace periods for repayment of 5 years or more, and maturities
of 20 years or more.''.

SEC. 4. PRINCIPLES THAT SHOULD BE ADHERED TO BY ANY UNITED STATES
              NATIONAL CONDUCTING AN INDUSTRIAL COOPERATION PROJECT IN
              THE PEOPLE'S REPUBLIC OF CHINA.

    (a) Purpose.--It is the purpose of this section to create
principles governing the conduct of industrial cooperation projects of
United States nationals in the People's Republic of China.
    (b) Statement of Principles.--It is the sense of the Congress that
any United States national conducting an industrial cooperation project
in the People's Republic of China should:
            (1) Suspend the use of any goods, wares, articles, or
        merchandise that the United States national has reason to
        believe were mined, produced, or manufactured, in whole or in
        part, by convict labor or forced labor, and refuse to use
        forced labor in the industrial cooperation project.
            (2) Seek to ensure that political or religious views, sex,
        ethnic or national background, involvement in political
        activities or nonviolent demonstrations, or association with
        suspected or known dissidents will not prohibit hiring, lead to
        harassment, demotion, or dismissal, or in any way affect the
        status or terms of employment in the industrial cooperation
        project. The United States national should not discriminate in
        terms or conditions of employment in the industrial cooperation
        project against persons with past records of arrest or internal
        exile for nonviolent protest or membership in unofficial
        organizations committed to nonviolence.
            (3) Ensure that methods of production used in the
        industrial cooperation project do not pose an unnecessary
        physical danger to workers and neighboring populations or
        property, and that the industrial cooperation project does not
        unnecessarily risk harm to the surrounding environment; and
        consult with community leaders regarding environmental
        protection with respect to the industrial cooperation project.
            (4) Strive to establish a private business enterprise when
        involved in an industrial cooperation project with the
        Government of the People's Republic of China or other state
        entity.
            (5) Discourage any Chinese military presence on the
        premises of any industrial cooperation projects which involve
        dual-use technologies.
            (6) Undertake to promote freedom of association and
        assembly among the employees of the United States national. The
        United States national should protest any infringement by the
        Government of the People's Republic of China of these freedoms
        to the International Labor Organization's office in Beijing.
            (7) Provide the Department of State with information
        relevant to the Department's efforts to collect information on
        prisoners for the purposes of the Prisoner Information
        Registry, and for other reporting purposes.
            (8) Discourage or undertake to prevent compulsory political
        indoctrination programs from taking place on the premises of
        the industrial cooperation project.
            (9) Promote freedom of expression, including the freedom to
        seek, receive, and impart information and ideas of all kinds,
        regardless of frontiers, either orally, in writing or in print,
        in the form of art, or through any media. To this end, the
        United States national should raise with appropriate
        authorities of the Government of the People's Republic of China
        concerns about restrictions on the free flow of information.
            (10) Undertake to prevent harassment of workers who,
        consistent with the United Nations World Population Plan of
        Action, decide freely and responsibly the number and spacing of
        their children; and prohibit compulsory population control
        activities on the premises of the industrial cooperation
        project.
    (c) Promotion of Principles by Other Nations.--The Secretary of
State shall forward a copy of the principles set forth in subsection
(b) to the member nations of the Organization for Economic Cooperation
and Development and encourage them to promote principles similar to
these principles.
    (d) Registration Requirement.--
            (1) In general.--Each United States national conducting an
        industrial cooperation project in the People's Republic of
        China shall register with the Secretary of State and indicate
        that the United States national agrees to implement the
        principles set forth in subsection (b). No fee shall be
        required for registration under this subsection.
            (2) Preference for participation in trade missions.--The
        Secretary of Commerce shall consult the register prior to the
        selection of private sector participants in any form of trade
        mission to China, and undertake to involve those United States
        nationals that have registered their adoption of the principles
        set forth above.
    (e) Definitions.--As used in this section--
            (1) the term ``industrial cooperation project'' refers to a
        for-profit activity the business operations of which employ
        more than 25 individuals or have assets greater than $25,000;
        and
            (2) the term ``United States national'' means--
                    (A) a citizen or national of the United States or a
                permanent resident of the United States; and
                    (B) a corporation, partnership, or other business
                association organized under the laws of the United
                States, any State or territory thereof, the District of
                Columbia, the Commonwealth of Puerto Rico, or the
                Commonwealth of the Northern Mariana Islands.

SEC. 5. PROMOTION OF EDUCATIONAL, CULTURAL, SCIENTIFIC, AGRICULTURAL,
              MILITARY, LEGAL, POLITICAL, AND ARTISTIC EXCHANGES
              BETWEEN THE UNITED STATES AND CHINA.

    (a) Exchanges Between the United States and China.--Agencies of the
United States Government which engage in educational, cultural,
scientific, agricultural, military, legal, political, and artistic
exchanges shall endeavor to initiate or expand such exchange programs
with regard to China.
    (b) Sense of Congress.--It is the sense of the Congress that a
federally chartered not-for-profit organization should be established
to fund exchanges between the United States and China through private
donations.

            Passed the House of Representatives November 6, 1997.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.

Summary: Communist China Subsidy Reduction Act of 1997 - Amends the International Financial Institutions Act to direct the Secretary of the Treasury to instruct the US Executive Directors at each international financial institution to vote to oppose the provision of concessional loans to China, any Chinese citizen or national, or any Chinese entity. Expresses the sense of the Congress that US nationals conducting industrial cooperation projects in China should adhere to certain principles, including: (1) suspending the use of any merchandise that they have reason to believe was produced by convict or forced labor, and refusing to use forced labor in their projects. (2) seeking to ensure that political or religious views, sex, ethnic or national background, or association with dissidents will not prohibit hiring, lead to harassment, demotion, or dismissal, or otherwise affect the employment status of an individual employed in the industrial cooperation project. (3) ensuring that methods of production used in the projects do not pose unnecessary danger to workers and the surrounding neighborhoods and environment. (4) striving to establish private business enterprises when involved in a project with the Government of China. (5) discouraging any military presence on the premises of the project, (6) promoting freedom of association and assembly among employees. (7) providing the Department of State with information relevant to its efforts to collect information on prisoners for purposes of the Prisoner Information Registry. (8) discouraging or preventing compulsory political indoctrination programs from taking place on project premises, (9) promoting freedom of expression of all kinds. And (10) preventing harassment of workers who decide freely the number and spacing of their children, and prohibiting compulsory population control activities on the premises of the project. Directs the Secretary of State to forward a copy of these principles to the member nations of the Organization for Economic Cooperation and Development, and encourage them to promote similar principles. Directs each US national conducting an industrial cooperation project in China to register with the Secretary and indicate whether they agree to implement such principles. Directs the Secretary of Commerce to give preference to US nationals who have adopted such principles when selecting participants for trade missions to China. Directs US agencies that engage in educational, cultural, scientific, agricultural, military, legal, political, and artistic exchanges to initiate and expand such exchange programs with regard to China. Expresses the sense of the Congress that a federally chartered not-for-profit organization should be established to fund exchanges between the United States and China through private donations.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postresearch Chimpanzee Care Act''.

SEC. 2. ESTABLISHMENT OF NATIONAL SANCTUARY SYSTEM FOR FEDERALLY OWNED
              OR SUPPORTED CHIMPANZEES NO LONGER NEEDED FOR RESEARCH.

    Subpart 1 of part E of title IV of the Public Health Service Act
(42 U.S.C. 287 et seq.) is amended by inserting after section 481B the
following section:

               ``sanctuary system for surplus chimpanzees

    ``Sec. 481C. (a) In General.--The Secretary shall provide for the
establishment and operation in accordance with this section of a system
to provide for the lifetime care of chimpanzees that have been used, or
were bred or purchased for use, in research conducted or supported by
the National Institutes of Health, the Food and Drug Administration, or
other agencies of the Federal Government, and with respect to which it
has been determined by the Secretary that the chimpanzees are not
needed for such research (in this section referred to as `surplus
chimpanzees').
    ``(b) Administration of Sanctuary System.--The Secretary shall
carry out this section, including the establishment of regulations
under subsection (d), in consultation with the board of directors of
the nonprofit private entity that receives the contract under
subsection (e) (relating to the operation of the sanctuary system).
    ``(c) Acceptance of Chimpanzees into System.--All surplus
chimpanzees owned by the Federal Government shall be accepted into the
sanctuary system. Subject to standards under subsection (d)(3), any
surplus chimpanzee that is not owned by the Federal Government shall be
accepted into the system if the owner transfers to the Federal
Government title to the chimpanzee.
    ``(d) Standards for Permanent Retirement of Surplus Chimpanzees.--
            ``(1) In general.--The Secretary shall by regulation
        establish standards for operating the sanctuary system to
        provide for the permanent retirement of surplus chimpanzees. In
        establishing the standards, the Secretary shall consider the
        recommendations of the National Research Council applicable to
        surplus chimpanzees that are made in the report published in
        1997 and entitled `Chimpanzees in Research--Strategies for
        Their Ethical Care, Management, and Use'.
            ``(2) Chimpanzees accepted into system.--With respect to
        chimpanzees that are accepted into the sanctuary system,
        standards under paragraph (1) shall include the following:
                    ``(A) A prohibition that the chimpanzees may not be
                used for research. This subparagraph does not prohibit
                noninvasive behavioral studies of the chimpanzees, or
                medical studies conducted during the course of normal
                veterinary care that is provided for the benefit of the
                chimpanzees.
                    ``(B) Provisions regarding the housing of the
                chimpanzees.
                    ``(C) Provisions regarding the behavioral well-
                being of the chimpanzees.
                    ``(D) A requirement that the chimpanzees be cared
                for in accordance with the Animal Welfare Act.
                    ``(E) A requirement that the chimpanzees be
                prevented from breeding.
                    ``(F) A requirement that complete histories be
                maintained on the health and use in research of the
                chimpanzees.
                    ``(G) A requirement that the chimpanzees be
                monitored for the purpose of promptly detecting the
                presence in the chimpanzees of any condition that may
                be a threat to the public health.
                    ``(H) A requirement that chimpanzees posing such a
                threat be contained in accordance with applicable
                recommendations of the Director of the Centers for
                Disease Control and Prevention.
                    ``(I) A prohibition that the chimpanzees may not be
                discharged from the system.
                    ``(J) A provision that the Secretary may, in the
                discretion of the Secretary, accept into the system
                chimpanzees that are not surplus chimpanzees.
                    ``(K) Such additional standards as the Secretary
                determines to be appropriate.
            ``(3) Non-federal chimpanzees offered for acceptance into
        system.--With respect to a surplus chimpanzee that is not owned
        by the Federal Government and is offered for acceptance into
        the sanctuary system, standards under paragraph (1) shall
        include the following:
                    ``(A) A provision that the Secretary may authorize
                the imposition of a fee for accepting such chimpanzee
                into the system, except as follows:
                            ``(i) Such a fee may not be imposed for
                        accepting the chimpanzee if, on the day before
                        the date of the enactment of the Postresearch
                        Chimpanzee Care Act, the chimpanzee was owned
                        by the nonprofit private entity that receives
                        the contract under subsection (e).
                            ``(ii) Such a fee may not be imposed for
                        accepting the chimpanzee if the chimpanzee is
                        owned by an entity that operates a primate
                        center, and if the chimpanzee is housed in the
                        primate center pursuant to the program for
                        regional centers for research on primates that
                        is carried out by the National Center for
                        Research Resources.
                Any fees collected under this subparagraph are
                available to the Secretary for the costs of operating
                the system. Any other fees received by the Secretary
                for the long-term care of chimpanzees (including any
                Federal fees that are collected for such purpose and
                are identified in the report under section 3 of the
                Postresearch Chimpanzee Care Act) are available for
                operating the system, in addition to availability for
                such other purposes as may be authorized for the use of
                the fees.
                    ``(B) A provision that the Secretary may deny such
                chimpanzee acceptance into the system if the capacity
                of the system is not sufficient to accept the
                chimpanzee, taking into account the physical capacity
                of the system; the financial resources of the system;
                the number of individuals serving as the staff of the
                system, including the number of professional staff; the
                necessity of providing for the safety of the staff and
                of the public; the necessity of caring for accepted
                chimpanzees in accordance with the standards under
                paragraph (1); and such other factors as may be
                appropriate.
                    ``(C) A provision that the Secretary may deny such
                chimpanzee acceptance into the system if a complete
                history of the health and use in research of the
                chimpanzee is not available to the Secretary.
                    ``(D) Such additional standards as the Secretary
                determines to be appropriate.
    ``(e) Award of Contract for Operation of System.--
            ``(1) In general.--Subject to the availability of funds
        pursuant to subsection (g), the Secretary shall make an award
        of a contract to a nonprofit private entity under which the
        entity has the responsibility of operating (and establishing,
        as applicable) the sanctuary system.
            ``(2) Requirements.--The Secretary may make an award under
        paragraph (1) to a nonprofit private entity only if the entity
        meets the following requirements:
                    ``(A) The entity has a governing board of directors
                that is composed and appointed in accordance with
                paragraph (3) and is satisfactory to the Secretary.
                    ``(B) The terms of service for members of such
                board are in accordance with paragraph (3).
                    ``(C) The members of the board serve without
                compensation. The members may be reimbursed for travel,
                subsistence, and other necessary expenses incurred in
                carrying out the duties of the board.
                    ``(D) The entity has an executive director meeting
                such requirements as the Secretary determines to be
                appropriate.
                    ``(E) The entity makes the agreement described in
                paragraph (4) (relating to non-Federal contributions).
                    ``(F) The entity agrees to comply with standards
                under subsection (d).
                    ``(G) Such other requirements as the Secretary
                determines to be appropriate.
            ``(3) Board of directors.--For purposes of subparagraphs
        (A) and (B) of paragraph (2):
                    ``(A) The governing board of directors of the
                nonprofit private entity involved is composed and
                appointed in accordance with this paragraph if the
                following conditions are met:
                            ``(i) Such board is composed of not more
                        than 15 voting members.
                            ``(ii) Such members include individuals
                        with expertise and experience in the science of
                        managing captive chimpanzees (including primate
                        veterinary care), appointed from among
                        individuals endorsed by organizations that
                        represent individuals in such field.
                            ``(iii) Such members include individuals
                        with expertise and experience in the field of
                        animal protection, appointed from among
                        individuals endorsed by organizations that
                        represent individuals in such field.
                            ``(iv) Such members include individuals
                        with expertise and experience in the zoological
                        field (including behavioral primatology),
                        appointed from among individuals endorsed by
                        organizations that represent individuals in
                        such field.
                            ``(v) Such members include individuals with
                        expertise and experience in the field of the
                        business and management of nonprofit
                        organizations, appointed from among individuals
                        endorsed by organizations that represent
                        individuals in such field.
                            ``(vi) Such members include representatives
                        from entities that provide accreditation in the
                        field of laboratory animal medicine.
                            ``(vii) Such members include individuals
                        with expertise and experience in the field of
                        containing biohazards.
                            ``(viii) Such members include an additional
                        member who serves as the chair of the board,
                        appointed from among individuals who have been
                        endorsed for purposes of clause (ii), (iii),
                        (iv), or (v).
                            ``(ix) None of the members of the board has
                        been fined for a violation of the Animal
                        Welfare Act.
                    ``(B) The terms of service for members of the board
                of directors are in accordance with this paragraph if
                the following conditions are met:
                            ``(i) The term of the chair of the board is
                        three years.
                            ``(ii) The initial members of the board
                        select, by a random method, one member from
                        each of the four fields specified in
                        subparagraph (A) to serve a term of two years
                        and (in addition to the chair) one member from
                        each of such fields to serve a term of three
                        years.
                            ``(iii) After the initial terms under
                        clause (ii) expire, each member of the board
                        (other than the chair) is appointed to serve a
                        term of two years.
                            ``(iv) An individual whose term of service
                        expires may be reappointed to the board.
                            ``(v) A vacancy in the membership of the
                        board is filled in the manner in which the
                        original appointment was made.
                            ``(vi) If a member of the board does not
                        serve the full term applicable to the member,
                        the individual appointed to fill the resulting
                        vacancy is appointed for the remainder of the
                        term of the predecessor member.
            ``(4) Requirement of matching funds.--The agreement
        required in paragraph (2)(E) for a nonprofit private entity
        (relating to the award of the contract under paragraph (1)) is
        an agreement that, with respect to the costs to be incurred by
        the entity in establishing and operating the sanctuary system,
        the entity will make available (directly or through donations
        from public or private entities) non-Federal contributions
        toward such costs, in cash or in kind, in an amount not less
        than the following, as applicable:
                    ``(A) For expenses associated with establishing the
                sanctuary system (as determined by the Secretary), 10
                percent of such costs ($1 for each $9 of Federal funds
                provided under the contract under paragraph (1)).
                    ``(B) For expenses associated with operating the
                sanctuary system (as determined by the Secretary), 50
                percent of such costs ($1 for each $1 of Federal funds
                provided under such contract).
            ``(5) Establishment of contract entity.--If the Secretary
        determines that an entity meeting the requirements of paragraph
        (2) does not exist, the Secretary may for purposes of paragraph
        (1) make a grant for the establishment of such an entity,
        including paying the cost of incorporating the entity under the
        law of one of the States.
    ``(f) Definitions.--For purposes of this section:
            ``(1) The term `permanent retirement', with respect to a
        surplus chimpanzee, means that the chimpanzee has been accepted
        into the sanctuary system, that under subsection (a) the system
        provides for the lifetime care of the chimpanzee, that under
        subsection (d)(2) the system does not permit the chimpanzee to
        be used in research, that under such subsection the system will
        not discharge the chimpanzee from the system, and that under
        such subsection the system otherwise cares for the chimpanzee.
            ``(2) The term `sanctuary system' means the system
        described in subsection (a).
            ``(3) The term `surplus chimpanzees' has the meaning
        indicated for such term in subsection (a).
    ``(g) Funding.--
            ``(1) In general.--Of the amount appropriated under this
        Act for fiscal year 2000 and each subsequent fiscal year, the
        Secretary, subject to paragraph (2), shall reserve a portion
        for purposes of the operation (and establishment, as
        applicable) of the sanctuary system, except that the Secretary
        may not for such purposes reserve any further funds from such
        amount after the aggregate total of the funds so reserved for
        such fiscal years reaches $15,000,000. The purposes for which
        funds reserved under the preceding sentence may be expended
        include the construction and renovation of facilities for the
        sanctuary system, subject to section 496(b).
            ``(2) Limitation.--Funds may not be reserved for a fiscal
        year under paragraph (1) unless the amount appropriated under
        this Act for such year equals or exceeds the amount
        appropriated under this Act for fiscal year 1998.''.

SEC. 3. REPORT TO CONGRESS REGARDING NUMBER OF CHIMPANZEES AND FUNDING
              FOR CARE OF CHIMPANZEES.

    With respect to chimpanzees that have been used, or were bred or
purchased for use, in research conducted or supported by the National
Institutes of Health, the Food and Drug Administration, or other
agencies of the Federal Government, the Secretary of Health and Human
Services shall, not later than 120 days after the date of the enactment
of this Act, submit to the Congress a report providing the following
information:
            (1) The number of such chimpanzees in the United States,
        whether owned or held by the Federal Government, any of the
        States, or private entities.
            (2) An identification of any requirement imposed by the
        Federal Government that, as a condition of the use of such a
        chimpanzee in research by a non-Federal entity--
                    (A) fees be paid by the entity to the Federal
                Government for the purpose of providing for the care of
                the chimpanzee (including any fees for long-term care);
                or
                    (B) funds be provided by the entity to a State,
                unit of local government, or private entity for an
                endowment or other financial account whose purpose is
                to provide for the care of the chimpanzee (including
                any funds provided for long-term care).
            (3) An accounting for fiscal years 1997 and 1998 of all
        fees paid and funds provided by non-Federal entities pursuant
        to requirements described in subparagraphs (A) and (B) of
        paragraph (2).
            (4) In the case of such fees, a specification of whether
        the fees were available to the Secretary (or other Federal
        officials) pursuant to annual appropriations Acts or pursuant
        to permanent appropriations.

Summary: Postresearch Chimpanzee Care Act - Amends title IV of the Public Health Service Act to direct the Secretary of Health and Human Services to provide for the establishment and operation of a national sanctuary system for all surplus federally owned chimpanzees that are no longer needed in research conducted or supported by the National Institutes of Health, the Food and Drug Administration, or other Federal agencies. Mandates that any surplus chimpanzee that is not owned by the Federal Government be accepted into the system if the owner transfers title to the chimpanzee to the Federal Government. Provides for standards for permanent retirement of surplus chimpanzees into the system. Requires such standards to authorize the Secretary to authorize imposition of a fee for accepting a non-Federal chimpanzee into the system. Outlines provisions for the awarding of contracts for operation of the system. Provides for funding.

Postresearch Chimpanzee Care Act


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Interest Checking Act
of 2001''.

SEC. 2. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.

    (a) Repeal of Prohibition on Payment of Interest on Demand
Deposits.--
            (1) Federal reserve act.--Section 19(i) of the Federal
        Reserve Act (12 U.S.C. 371a) is amended to read as follows:
    ``(i) [Repealed]''.
            (2) Home owners' loan act.--The first sentence of section
        5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C.
        1464(b)(1)(B)) is amended by striking ``savings association may
        not--'' and all that follows through ``(ii) permit any'' and
        inserting ``savings association may not permit any''.
            (3) Federal deposit insurance act.--Section 18(g) of the
        Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to
        read as follows:
    ``(g) [Repealed]''.
    (b) Effective Date.--The amendments made by subsection (a) shall
take effect at the end of the 2-year period beginning on the date of
the enactment of this Act.

SEC. 3. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL
              BUSINESSES.

    Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--
            (1) in subsection (a), by adding at the end the following
        new paragraph:
            ``(3) Exception from paragraph (2) limitation.--Paragraph
        (2) shall not apply to any depository institution which is
        prohibited by the applicable law of its chartering State from
        offering demand deposits and either--
                    ``(A) does not engage in any lending activities; or
                    ``(B) is not an affiliate of any company or
                companies with assets that, in the aggregate, represent
                more than 10 percent of the total assets of the
                depository institution.'';
            (2) by redesignating subsections (b) and (c) as subsections
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following:
    ``(b) Notwithstanding any other provision of law, any depository
institution may permit the owner of any deposit or account which is a
deposit or account on which interest or dividends are paid and is not a
deposit or account described in subsection (a)(2) to make up to 24
transfers per month (or such greater number as the Board may determine
by rule or order), for any purpose, to another account of the owner in
the same institution. Nothing in this subsection shall be construed to
prevent an account offered pursuant to this subsection from being
considered a transaction account (as defined in section 19(b) of the
Federal Reserve Act for purposes of such Act).''.

SEC. 4. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS.

    (a) In General.--Section 19(b) of the Federal Reserve Act (12
U.S.C. 461(b)) is amended by adding at the end the following new
paragraph:
            ``(12) Earnings on reserves.--
                    ``(A) In general.--Balances maintained at a Federal
                reserve bank by or on behalf of a depository
                institution may receive earnings to be paid by the
                Federal reserve bank at least once each calendar
                quarter at a rate or rates not to exceed the general
                level of short-term interest rates.
                    ``(B) Regulations relating to payments and
                distribution.--The Board may prescribe regulations
                concerning--
                            ``(i) the payment of earnings in accordance
                        with this paragraph;
                            ``(ii) the distribution of such earnings to
                        the depository institutions which maintain
                        balances at such banks or on whose behalf such
                        balances are maintained; and
                            ``(iii) the responsibilities of depository
                        institutions, Federal home loan banks, and the
                        National Credit Union Administration Central
                        Liquidity Facility with respect to the
                        crediting and distribution of earnings
                        attributable to balances maintained, in
                        accordance with subsection (c)(1)(B), in a
                        Federal reserve bank by any such entity on
                        behalf of depository institutions.''.
    (b) Authorization for Pass Through Reserves for Member Banks.--
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 461(c)(1)(B))
is amended by striking ``which is not a member bank''.
    (c) Survey of Bank Fees and Services.--Section 19 of the Federal
Reserve Act (as amended by subsections (a) and (b) of this section) is
amended by adding at the end the following new subsection:
    ``(n) Survey of Bank Fees and Services.--
            ``(1) Annual survey required.--The Board shall obtain
        annually a sample, which is representative by type and size of
        the institution and geographic location, of the following
        retail banking services and products provided by insured
        depository institutions and insured credit unions (along with
        related fees and minimum balances):
                    ``(A) Checking and other transaction accounts.
                    ``(B) Negotiable order of withdrawal and savings
                accounts.
                    ``(C) Automated teller machine transactions.
                    ``(D) Other electronic transactions.
                    ``(E) Credit Cards.
            ``(2) Minimum survey requirement.--The annual survey
        described in paragraph (1) shall meet the following minimum
        requirements:
                    ``(A) Checking and other transaction accounts.--
                Data on checking and transaction accounts shall
                include, at a minimum, the following:
                            ``(i) Monthly and annual fees and minimum
                        balances to avoid such fees.
                            ``(ii) Minimum opening balances.
                            ``(iii) Check processing fees.
                            ``(iv) Check printing fees.
                            ``(v) Balance inquiry fees.
                            ``(vi) Fees imposed for using a teller or
                        other institution employee.
                            ``(vii) Stop payment order fees.
                            ``(viii) Nonsufficient fund fees.
                            ``(ix) Overdraft fees.
                            ``(x) Deposit items returned fees.
                            ``(xi) Availability of no-cost or low-cost
                        accounts for consumers who maintain low
                        balances.
                    ``(B) Negotiable order of withdrawal accounts and
                savings accounts.--Data on negotiable order of
                withdrawal accounts and savings accounts shall include,
                at a minimum, the following:
                            ``(i) Monthly and annual fees and minimum
                        balances to avoid such fees.
                            ``(ii) Minimum opening balances.
                            ``(iii) Rate at which interest is paid to
                        consumers.
                            ``(iv) Check processing fees for negotiable
                        order of withdrawal accounts.
                            ``(v) Check printing fees for negotiable
                        order of withdrawal accounts.
                            ``(vi) Balance inquiry fees.
                            ``(vii) Fees imposed for using a teller or
                        other institution employee.
                            ``(viii) Stop payment order fees for
                        negotiable order of withdrawal accounts.
                            ``(ix) Nonsufficient fund fees for
                        negotiable order of withdrawal accounts.
                            ``(x) Overdraft fees for negotiable order
                        of withdrawal accounts.
                            ``(xi) Deposit items returned fees.
                            ``(xii) Availability of no-cost or low-cost
                        accounts for consumers who maintain low
                        balances.
                    ``(C) Automated teller transactions.--Data on
                automated teller machine transactions shall include, at
                a minimum, the following:
                            ``(i) Annual and monthly fees.
                            ``(ii) Card fees.
                            ``(iii) Fees charged to customers for
                        withdrawals, deposits, transfers between
                        accounts, balance inquiries through
                        institution-owned machines.
                            ``(iv) Fees charged to customers for
                        withdrawals, deposits, transfers between
                        accounts, balance inquiries through machines
                        owned by others.
                            ``(v) Fees charged to noncustomers for
                        withdrawals, deposits, transfers between
                        accounts, balance inquiries through
                        institution-owned machines.
                            ``(vi) Point-of-sale transaction fees.
                            ``(vii) Surcharges.
                    ``(D) Other electronic transactions.--Data on other
                electronic transactions shall include, at a minimum,
                the following:
                            ``(i) Wire transfer fees.
                            ``(ii) Fees related to payments made over
                        the Internet or through other electronic means.
                    ``(E) Credit card charges and fees.--Data related
                to credit cards shall include, at a minimum, the
                following:
                            ``(i) Application fees.
                            ``(ii) Annual and monthly fees.
                            ``(iii) Rates of interest charged for
                        purchases and cash advances, when an account is
                        not in default.
                            ``(iv) Rates of interest charged for
                        purchases and cash advances, when an account is
                        in default.
                            ``(v) Average annual finance charges paid
                        by customers.
                            ``(vi) Late payment fees.
                            ``(vii) Cash advance and convenience check
                        fees.
                            ``(viii) Balance transfer fees.
                            ``(ix) Over-the-credit-limit fees.
                            ``(x) Foreign currency conversion fees.
                    ``(F) Other fees and charges.--Data on any other
                fees and charges that the Board determines to be
                appropriate to meet the purposes of this section.
            ``(3) Annual Report to Congress Required.--
                    ``(A) Preparation.--The Board shall prepare a
                report of the results of each survey conducted pursuant
                to paragraph (1) and (2).
                    ``(B) Contents of the report.--In addition to the
                data required to be collected pursuant to paragraphs
                (1) and (2), each report prepared pursuant to
                subparagraph (A) shall include a description of any
                discernible trend, in the Nation as a whole, in each of
                the 50 States, and in each metropolitan statistical
                area (as defined by the Director of the Office of
                Management and Budget), in the cost and availability of
                the retail banking services, including those described
                in paragraphs (1) and (2) (including related fees and
                minimum balances), that delineates differences between
                institutions on the basis of the type of institution,
                the size of the institution and any engagement of the
                institution in multistate activity.
                    ``(C) Submission to congress.--The Board shall
                submit an annual report to the Congress under this
                paragraph not later than June 1, 2002, and not later
                than June 1 of each subsequent year.
            ``(4) Definitions.--For purposes of this subsection, the
        terms `insured depository institution' and `insured credit
        union' mean any depository institution (as defined in
        subsection (b)(1)(A)) the deposits or shares in which are
        insured under the Federal Deposit Insurance Act or the Federal
        Credit Union Act.''.
    (d) Technical and Conforming Amendments.--Section 19 of the Federal
Reserve Act (12 U.S.C. 461) is amended--
            (1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by striking
        subparagraph (C) and redesignating subparagraphs (D) and (E) as
        subparagraphs (C) and (D), respectively; and
            (2) in subsection (c)(1)(A) (12 U.S.C. 461(c)(1)(A)), by
        striking ``subsection (b)(4)(C)'' and inserting ``subsection
        (b)''.

SEC. 5. INCREASED FEDERAL RESERVE BOARD FLEXIBILITY IN SETTING RESERVE
              REQUIREMENTS.

    Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C.
461(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``the ratio of 3 per
        centum'' and inserting ``a ratio not greater than 3 percent
        (and which may be zero)''; and
            (2) in clause (ii), by striking ``and not less than 8 per
        centum,'' and inserting ``(and which may be zero),''.

SEC. 6. TRANSFER OF FEDERAL RESERVE SURPLUSES.

    (a) In General.--Section 7(b) of the Federal Reserve Act (12 U.S.C.
289(b)) is amended by adding at the end the following new paragraph:
            ``(4) Additional transfers to cover interest payments for
        fiscal years 2002 through 2006.--
                    ``(A) In general.--In addition to the amounts
                required to be transferred from the surplus funds of
                the Federal reserve banks pursuant to subsection
                (a)(3), the Federal reserve banks shall transfer from
                such surplus funds to the Board of Governors of the
                Federal Reserve System for transfer to the Secretary of
                the Treasury for deposit in the general fund of the
                Treasury, such sums as are necessary to equal the net
                cost of section 19(b)(12), as estimated by the Office
                of Management and Budget, in each of the fiscal years
                2002 through 2006.
                    ``(B) Allocation by federal reserve board.--Of the
                total amount required to be paid by the Federal reserve
                banks under subparagraph (A) for fiscal years 2002
                through 2006, the Board of Governors of the Federal
                Reserve System shall determine the amount each such
                bank shall pay in such fiscal year.
                    ``(C) Replenishment of surplus fund prohibited.--
                During fiscal years 2002 through 2006, no Federal
                reserve bank may replenish such bank's surplus fund by
                the amount of any transfer by such bank under
                subparagraph (A).''.
    (b) Technical and Conforming Amendment.--Section 7(a) of the
Federal Reserve Act (12 U.S.C. 289(a)) is amended by adding at the end
the following new paragraph:
            ``(3) Payment to treasury.--During fiscal years 2002
        through 2006, any amount in the surplus fund of any Federal
        reserve bank in excess of the amount equal to 3 percent of the
        paid-in capital and surplus of the member banks of such bank
        shall be transferred to the Secretary of the Treasury for
        deposit in the general fund of the Treasury.''.

SEC. 7. RULE OF CONSTRUCTION.

    No provision of this Act, or any amendment made by this Act, shall
be construed as creating any presumption or implication that, in the
case of an escrow account maintained at a depository institution in
connection with a real estate transaction--
            (1) the absorption, by the depository institution, of
        expenses incidental to providing a normal banking function with
        respect to such escrow account;
            (2) the forbearance, by the depository institution, from
        charging a fee for providing any such banking function; and
            (3) any benefit which may accrue to the holder or the
        beneficiary of such escrow account as a result of an action of
        the depository institution described in paragraph (1) or (2),
may be treated as the payment or receipt of interest for purposes of
any provision of Public Law 93-100, the Federal Reserve Act, the Home
Owners' Loan Act, or the Federal Deposit Insurance Act relating to the
payment of interest on accounts or deposits at depository institutions.

            Passed the House of Representatives April 3, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Small Business Interest Checking Act of 2001- Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the proscription against payment of interest on demand deposits. Authorizes certain depository institutions prohibited by State law from offering demand deposits to offer all owners of a interest- or dividend-paying deposit or account to make withdrawals by negotiable or transferable instruments for the purpose of making payments to third parties. Requires that such an institution either: (1) not engage in lending activities. Or (2) not be an affiliate of a company or companies whose aggregate assets represent over ten percent of the institution's total assets. Amends Federal banking law governing interaccount transfers to provide that a depository institution may permit owners of certain interest- or dividend-paying accounts to make up to 24 transfers monthly for any purpose to their other accounts in the same institution. Amends the Federal Reserve Act to authorize a Federal reserve bank to pay interest at least quarterly to a depository institution on any balance it maintains at the reserve bank. Repeals a specified restriction in order to authorize pass-through reserves for member banks . Instructs the Board of Governors of the Federal Reserve System to obtain annually a prescribed survey of designated retail bank fees and services , and report the results annually to Congress. Reformulates the mandatory depository institution reserve ratio to: (1) one that is not greater than three percent, and may be zero, for transaction accounts of $25 million or less. And (2) reduce from eight percent to zero the minimum ratio for transaction accounts exceeding $25 million. Requires the Federal Reserve banks to transfer certain surplus funds for deposit into the general fund of the Treasury equal to the estimated net cost of making the quarterly payments of interest mandated by this Act for FY 2002 through 2006. Prohibits such banks from replenishing surplus funds by the amount of any such transfers during that time period.

To repeal the prohibition on the payment of interest on demand deposits, to increase the number of interaccount transfers which may be made from business accounts at depository institutions, to authorize the Board of Governors of the Federal Reserve System to pay interest on reserves, and for other purposes.


SECTION 1. ALTERNATIVE RETIRED PAY RATES FOR MEMBERS OF THE ARMED
              FORCES WITH A COMBAT-RELATED DISABILITY.

    (a) Alternative Retired Pay Base for Chapter 71 Retired Pay.--
Section 1401 of title 10, United States Code, is amended by adding at
the end the following new subsection:
    ``(c) Alternative Retired Pay Base for Members With a Combat-
Related Disability.--(1) In the case of a member of the armed forces
with a combat-related disability who is entitled to monthly retired pay
computed using a formula specified in subsection (a), the Secretary
concerned shall permit the member to elect to have used in that
formula, in lieu of the retired pay base of the member computed under
section 1406(b) or 1407 of this title, a retired pay base equal to
$2,917, which represents the average monthly salary for high school
graduates in the United States, as determined by the Census Bureau for
2006.
    ``(2) The alternative retired pay base in effect under paragraph
(1) for a calendar year shall be adjusted on December 1 of that year in
the manner provided by section 1401a(b) of this title for use during
the next calendar year.
    ``(3) In this subsection, the term `combat-related disability'
means a disability that is compensable under the laws administered by
the Secretary of Veterans Affairs and that--
            ``(A) is attributable to an injury for which the member was
        awarded the Purple Heart; or
            ``(B) was incurred (as determined under criteria prescribed
        by the Secretary of Defense for purposes of section 1413a of
        this title) as a direct result of armed conflict.''.
    (b) Alternative Retired Pay Base for Retired Pay for Non-Regular
Service.--Section 12739 of such title is amended by adding at the end
the following new subsection:
    ``(e)(1) In the case of a member of the armed forces with a combat-
related disability who is entitled to monthly retired pay computed
under subsection (a), the Secretary concerned shall permit the member
to elect to have used in paragraph (1) of such subsection, in lieu of
the retired pay base of the member computed under section 1406(b) or
1407 of this title, a retired pay base equal to $2,917, which
represents the average monthly salary for high school graduates in the
United States, as determined by the Census Bureau for 2006.
    ``(2) The alternative retired pay base in effect under paragraph
(1) for a calendar year shall be adjusted on December 1 of that year in
the manner provided by section 1401a(b) of this title for use during
the next calendar year.
    ``(3) In this subsection, the term `combat-related disability'
means a disability that is compensable under the laws administered by
the Secretary of Veterans Affairs and that--
            ``(A) is attributable to an injury for which the member was
        awarded the Purple Heart; or
            ``(B) was incurred (as determined under criteria prescribed
        by the Secretary of Defense for purposes of section 1413a of
        this title) as a direct result of armed conflict.''.
    (c) Application of Amendments.--The amendments made by subsections
(a) and (b) shall apply with respect to members of the Armed Forces who
retired or whose names were placed on the temporary disability retired
list after September 11, 2001, except that any recomputation of the
retired pay for a member on account of such amendments who retired or
whose name was placed on the temporary disability retired list before
the date of the enactment of this Act shall be effective only for
months beginning after the date of the enactment of this Act.

SEC. 2. ALTERNATIVE WARTIME DISABILITY COMPENSATION RATES FOR CERTAIN
              VETERANS.

    (a) Alternative Compensation Base for Chapter 11 Wartime Disability
Compensation.--Section 1114 of title 38, United States Code, is amended
by adding at the end the following new subsection:
    ``(t)(1) In the case of a veteran--
                    ``(A) having a covered service-connected disability
                rated as total, the Secretary shall permit the veteran
                to elect to receive, in lieu of the monthly
                compensation rate in effect under subsection (j), a
                monthly compensation equal to $2,917, which represents
                the average monthly salary for high school graduates in
                the United States, as determined by the Census Bureau
                for 2006; and
                    ``(B) having a covered service-connected disability
                rated at a percentage other than total, the Secretary
                shall permit the veteran to elect to receive, in lieu
                of the monthly compensation rate in effect under
                subsections (a) through (i), as applicable, a monthly
                compensation equal to the amount that is the percentage
                of $2,917 that corresponds to the percentage of the
                service-connected disability rating of the veteran.
    ``(2) For purposes of this subsection, the term `covered service-
connected disability' means a service-connected disability that--
            ``(A) is attributable to an injury for which the veteran
        was awarded the Purple Heart; or
            ``(B) was incurred (as determined under criteria prescribed
        by the Secretary of Defense for purposes of section 1413a of
        title 10) as a direct result of armed conflict.''.
    (b) Application of Amendment.--The amendment made by subsection (a)
shall apply with respect to veterans who became eligible to receive
compensation under section 1110 of title 38, United States Code, after
September 11, 2001, except that any recomputation of disability
compensation for a veteran on account of such an amendment who so
became eligible before the date of the enactment of this Act shall be
effective only for months beginning after the date of the enactment of
this Act.

Summary: Directs the Secretary of the military department concerned, in the case of a regular or reserve member of the Armed Forces with a combat-related disability who is entitled to monthly retired pay, to permit such member to elect an alternative retired pay rate based on $2,917, the average monthly salary for high school graduates in the United States. Directs the Secretary of Veterans Affairs, with respect to veterans with service-connected disabilities, to permit such veterans to elect to receive a monthly compensation of $2,917 or a percentage of such amount .

To provide alternative retired pay rates under title 10, United States Code, and alternative disability compensation rates under title 38, United States Code, for members of the Armed Forces with a combat-related disability, with such rates based on the average monthly salary for high school graduates in the United States, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Supporting Education for Returning
Veterans Act of 2008''.

SEC. 2. GRANT PROGRAM FOR SUPPORT OF VETERANS AT INSTITUTIONS OF HIGHER
              EDUCATION.

    Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et
seq.) is amended by adding at the end the following:

  ``PART F--PROGRAM FOR SUPPORT OF VETERANS AT INSTITUTIONS OF HIGHER
                               EDUCATION

``SEC. 781. GRANT PROGRAM FOR SUPPORT OF VETERANS AT INSTITUTIONS OF
              HIGHER EDUCATION.

    ``(a) Grants Authorized.--
            ``(1) In general.--Subject to the availability of
        appropriations, the Secretary is authorized to award grants to
        institutions of higher education to enable the institutions of
        higher education to establish programs that support veterans
        who are students at such institutions by providing and
        coordinating services that address the academic, financial,
        physical, and social needs of such veterans.
            ``(2) Grant period.--A grant awarded under this section
        shall be awarded for a period of 3 years.
    ``(b) Selection of Grant Recipients.--
            ``(1) Application.--An institution of higher education
        seeking a grant under this section shall submit to the
        Secretary an application in such form, at such time, and
        containing such information as the Secretary may require.
            ``(2) Approval.--The Secretary shall, in consultation with
        the Secretary of Veterans Affairs, approve or disapprove each
        application submitted by an institution of higher education
        under paragraph (1). In determining whether to approve or
        disapprove an application, the Secretary shall consider the
        following:
                    ``(A) The number of veterans enrolled as students
                at the institution of higher education.
                    ``(B) The needs of such veterans at such
                institution.
                    ``(C) The ability of such institution to sustain a
                Center of Excellence for Veteran Student Success
                described in subsection (c)(2)(A) after the completion
                of the grant period described in subsection (a)(2).
                    ``(D) The equitable distribution of grants under
                this section among various types and sizes of
                institutions of higher education.
                    ``(E) The equitable geographic distribution of
                grants under this section.
                    ``(F) The equitable distribution of grants under
                this section among rural and urban areas.
    ``(c) Use of Grant Funds.--
            ``(1) Program required.--Each institution of higher
        education receiving a grant under this section shall use the
        grant to establish a program that supports each veteran who is
        a student at such institution by providing and coordinating
        services that address the academic, financial, physical, and
        social needs of such veteran.
            ``(2) Required program activities.--Each program
        established under paragraph (1) shall include the following:
                    ``(A) Establishing a Center of Excellence for
                Veteran Student Success on the campus of the
                institution of higher education that provides a single
                point of contact to coordinate comprehensive support
                services for veterans who are students, including the
                following:
                            ``(i) Admissions.
                            ``(ii) Registration.
                            ``(iii) Financial aid.
                            ``(iv) Veterans benefits.
                            ``(v) Academic advising.
                            ``(vi) Student health.
                            ``(vii) Personal or mental health
                        counseling.
                            ``(viii) Career advising.
                            ``(ix) Disabilities services.
                    ``(B) Establishing a support team for veterans who
                are students, including representatives from the
                student veteran association and veteran service office
                of such institution of higher education, if any.
                    ``(C) Providing a full-time or part-time
                coordinator whose primary responsibility is to
                coordinate the program.
                    ``(D) With respect to such veterans, monitoring the
                rates of enrollment, persistence, and completion of
                programs of education at such institution.
            ``(3) Optional program activities.--With respect to
        veterans who are students at an institution of higher education
        receiving a grant under this section, a program established
        under paragraph (1) by such institution may include the
        following:
                    ``(A) Outreach to, and recruitment of, veterans.
                    ``(B) Supportive instructional services for
                veterans, which may include--
                            ``(i) personal, academic, and career
                        counseling, as an ongoing part of the program;
                            ``(ii) tutoring and academic skill-building
                        instruction assistance, as needed; and
                            ``(iii) assistance with special admissions
                        and transfer of credit from previous
                        postsecondary education or experience.
                    ``(C) Assistance in obtaining student financial
                aid.
                    ``(D) Housing support.
                    ``(E) Providing classes that are limited to
                veterans to help them fulfill general education
                requirements.
                    ``(F) Providing activities designed to ease the
                transition of veterans to life on the campus of such
                institution.
                    ``(G) Support for veteran student organizations and
                veteran student support groups on campus.
                    ``(H) Coordination of academic advising and
                admissions counseling with military bases and National
                Guard and Reserve units in the area.
                    ``(I) Such other support services as the
                institution considers necessary to ensure the success
                of veterans in achieving the veterans' educational and
                career goals.
    ``(d) Evaluation and Accountability Plan.--The Secretary shall
develop an evaluation and accountability plan for programs established
under subsection (c)(1) to measure the impact of such programs,
including an objective measure of whether the rates of enrollment,
persistence, and completion of programs of education at institutions of
higher education by veterans increase as a result of such programs.''.

Summary: Supporting Education for Returning Veterans Act of 2008 - Amends the Higher Education Act of 1965 to authorize the Secretary of Education to award three-year grants to institutions of higher education to establish programs that support veterans who are students by providing and coordinating services that address their academic, financial, physical, and social needs. Requires each grantee to establish a campus Center of Excellence for Veteran Student Success that provides a single point of contact for the coordination of comprehensive support services for students who are veterans. Requires the Secretary to develop an evaluation and accountability plan for measuring the effect such programs have on veterans' success in postsecondary education.

A bill to amend the Higher Education Act of 1965 to authorize the Secretary of Education to provide grants to institutions of higher education to establish programs for the provision of services and support to veterans who are students at such institutions, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mortgage Disclosure Simplification
Act of 2007''.

SEC. 2. REQUIRED DISCLOSURES REGARDING LOAN TERMS.

    The Real Estate Settlement Procedures Act of 1974 is amended by
inserting after section 4 (12 U.S.C. 2603) the following new section:

``SEC. 4A. REQUIRED DISCLOSURES REGARDING LOAN TERMS.

    ``(a) Development.--The Secretary, in consultation with appropriate
Federal lending regulation agencies, shall develop and prescribe
standard written forms under subsection (c) for statement of the
essential terms of a federally related mortgage loan.
    ``(b) Requirement To Use.-- The Secretary shall require that--
            ``(1) the forms developed pursuant to subsection (a) be
        used in all transactions in the United States that involve
        federally related mortgage loans; and
            ``(2) that in any such a transaction--
                    ``(A) the form under subsection (c)(1) shall be
                appropriately and accurately completed by the lender or
                mortgage broker, or both; and
                    ``(B) the completed form under subsection (c)(1)
                shall be provided to the borrower, together with the
                form under subsection (c)(2), not later than three days
                after the application for the federally related
                mortgage loan is made.
    ``(c) Contents.--With respect to a federally related mortgage loan,
the standard written forms required under this subsection are as
follows:
            ``(1) Statement of loan terms.--A single page, written
        disclosure regarding the federally related mortgage loan that,
        when completed by the lender or mortgage broker, or both, sets
        forth, in accordance with such requirements as the Secretary
        shall by regulation establish--
                    ``(A) a best possible estimate of--
                            ``(i) the total loan amount under the
                        federally related mortgage loan;
                            ``(ii) the loan-to-value ratio for the
                        loan;
                            ``(iii) the final maturity date for the
                        loan;
                            ``(iv) the amount and due date for any
                        balloon payment under the loan;
                            ``(v) the amount of any prepayment fee to
                        be charged if the loan is paid in full before
                        the final maturity date for the loan;
                            ``(vi) the initial interest rate under the
                        loan expressed as an annual percentage rate,
                        and the amount of the monthly payment due under
                        such rate;
                            ``(vii) the duration during which such
                        initial interest rate will be charged;
                            ``(viii) the fully indexed rate of interest
                        under the loan expressed as an annual
                        percentage rate and the amount of the monthly
                        payment due under such rate;
                            ``(ix) the maximum possible rate of
                        interest under the loan expressed as an annual
                        percentage rate and the amount of the monthly
                        payment due under such rate;
                            ``(x) the monthly household income of the
                        borrower upon which the loan is based;
                            ``(xi) the amount of initial monthly
                        payment due under the loan, and the amount of
                        such initial monthly payment plus monthly
                        amounts due for taxes and insurance on the
                        property for which the loan is made, both
                        expressed as a percentage of the monthly
                        household income of the borrower;
                            ``(xii) the amount of the fully indexed
                        monthly payment due under the loan, and the
                        amount of such fully indexed monthly payment
                        plus monthly amounts due for taxes and
                        insurance on the property for which the loan is
                        made, both expressed as a percentage of the
                        monthly household income of the borrower;
                            ``(xiii) the aggregate amount of settlement
                        charges for all settlement services provided in
                        connection with the loan, the amount of such
                        charges that are included in the loan amount
                        and the amount of such charges the borrower
                        must pay at closing, the aggregate amount of
                        lender's fees connection with the loan, and the
                        aggregate amount of other fees or required
                        payments in connection with the loan; and
                            ``(xiv) the aggregate amount of fees paid
                        to the mortgage broker in connection with the
                        loan, the amount of such fees paid directly by
                        the borrower, and any additional amount
                        received by the broker from the lender based on
                        the interest rate of the loan (commonly
                        referred to as a yield spread premium);
                    ``(B) a name, telephone number, and electronic mail
                address that may be used by the borrower to obtain
                information regarding the loan; and
                    ``(C) a prominent statement that the amounts to be
                provided by the lender or mortgage broker, or both,
                under the federally related mortgage loan shall be
                subject to final underwriting of the loan.
            ``(2) Statement of definitions and explanations.--A two-
        page written disclosure that sets forth, in accordance with
        such requirements as the Secretary shall, by regulation,
        establish, basic easy-to-understand definitions or
        explanations, of terms relating to residential mortgage loans,
        including each of the following terms: appraised value, types
        of loans, initial interest rate, fully indexed rate of
        interest, maximum possible rate of interest, monthly household
        income, monthly loan payment including taxes and insurance,
        fully indexed housing expense ratio, prepayment fee, balloon
        payment, payment option loan, points, closing costs, settlement
        services, settlement charges, lender's fees, and mortgage
        broker.
    ``(d) Savings Clause.--Notwithstanding disclosure pursuant to
subsection (c)(1)(A) of best possible estimates of the information
required under such subsection with respect to a federally related
mortgage loan, the amounts to be provided by the lender or mortgage
broker, or both, under the loan shall be subject to final underwriting
of the loan.''.

Summary: Mortgage Disclosure Simplification Act of 2007 - Amends the Real Estate Settlement Procedures Act of 1974 to instruct the Secretary of Housing and Urban Development to develop and prescribe standard written forms stating the essential terms of a federally related mortgage loan, which lenders or mortgage brokers shall provide to prospective mortgagors. Requires such disclosures to include: (1) a statement of terms regarding a federally related mortgage loan. And (2) a statement of basic easy-to-understand definitions or explanations of such terms.

To amend the Real Estate Settlement Procedures Act of 1974 to require the submission to each borrower under a federally related mortgage loan of a one-page description of the essential terms of the loan.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Montgomery GI Bill Improvements Act
of 2001''.

SEC. 2. REPEAL OF PAY REDUCTION AND ELECTION NOT TO ENROLL IN BASIC
              EDUCATIONAL ASSISTANCE.

    (a) Pay Reduction.--(1) Section 3011 of title 38, United States
Code, is amended by striking subsection (b).
    (2) Section 3012 of that title is amended by striking subsection
(c).
    (b) Authority To Elect Not To Enroll.--(1) Section 3011(c) of that
title is amended--
            (A) by striking paragraph (1); and
            (B) by redesignating paragraphs (2) and (3) as paragraphs
        (1) and (2), respectively.
    (2) Section 3012(d) of that title is amended--
            (A) by striking paragraph (1); and
            (B) by redesignating paragraphs (2) and (3) as paragraphs
        (1) and (2), respectively.
    (c) Opportunities To Withdraw Election Not To Enroll.--(1) Section
3016(a)(1) of that title is amended by striking ``, and does not make
an election under section 3011(c)(1) or section 3012(d)(1)''.
    (2) Sections 3018A and 3018B of that title are each amended by
adding at the end the following new subsection:
    ``(e) Notwithstanding subsection (b), no reduction in the pay of an
individual under this section shall be made for months beginning on or
after the date that is six months after the date of the enactment of
the Montgomery GI Bill Improvements Act of 2001. Any obligation of an
individual under subsection (b) as of the commencement of such month
shall be deemed to be fully satisfied as of the date of the
commencement of such month.''.
    (3)(A) Section 3018C(e) of that title is amended--
            (i) by striking paragraphs (3) and (4); and
            (ii) by redesignating paragraph (5) as paragraph (3).
    (B) Section 3018C of that title is amended by adding at the end the
following new subsection:
    ``(f) Notwithstanding subsection (b), no reduction in the pay of an
individual under this section shall be made for months beginning on or
after the date that is six months after the date of the enactment of
the Montgomery GI Bill Improvements Act of 2001. Any obligation of an
individual under subsection (b) as of the commencement of such month
shall be deemed to be fully satisfied as of the date of the
commencement of such month.''.
    (d) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect six months after the date of the enactment of this
Act, and apply to individuals whose initial obligated period of active
duty under section 3011 or 3012 of title 38, United States Code, as the
case may be, begins on or after such date.
    (e) Termination of Pay Reductions in Progress.--Any reduction in
the basic pay of an individual referred to in subsection (b) of section
3011 of title 38, United States Code, by reason of such subsection, or
of any individual referred to in subsection (c) of section 3012 of such
title by reason of such subsection, shall cease commencing with months
beginning on or after the date that is six months after the date of the
enactment of this Act, and any obligation of such individual under such
subsection (b) or (c), as the case may be, as of that date shall be
deemed to be fully satisfied as of the date of the commencement of the
first such month.

SEC. 3. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE BY MEMBERS
              WITH 15 YEARS OF ACTIVE DUTY SERVICE.

    (a) Transfer of Entitlement.--Subchapter II of chapter 30 of title
38, United States Code, is amended by adding at the end the following
new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance:
              individuals with 15 years of active duty service
    ``(a) An individual described in subsection (b) who is entitled to
basic educational assistance under this subchapter may transfer, in
whole or in part, such individual's entitlement to such assistance to
the dependents specified in subsection (c).
    ``(b) An individual described in this subsection is any individual
entitled to basic educational assistance under this subchapter who has
completed not less than 15 years of service on active duty as a member
of the Armed Forces.
    ``(c) An individual may transfer entitlement under this section as
follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in
        paragraphs (1) and (2).
    ``(d) An individual transferring entitlement to basic educational
assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such
        entitlement is being transferred and the percentage of such
        entitlement to be transferred to each such dependent; and
            ``(2) specify the period for which the transfer shall be
        effective for each dependent designated under paragraph (1).
    ``(e)(1) Subject to the time limitation for use of entitlement
under section 3031 of this title, an individual may transfer
entitlement under this section at any time without regard to whether
the individual is a member of the Armed Forces when the transfer is
executed.
    ``(2)(A) An individual transferring entitlement under this section
may modify or revoke at any time the transfer of any unused portion of
the entitlement so transferred.
    ``(B) The modification or revocation of the transfer of entitlement
under this paragraph shall be made by the submittal of written notice
of the action to the Secretary.
    ``(f)(1) The use of any entitlement to basic educational assistance
transferred under this section shall be charged against the entitlement
of the individual making the transfer at the rate of one month for each
month of transferred entitlement that is used.
    ``(2) Except as provided under subsection (d)(2) and subject to
paragraph (4), a dependent to whom entitlement is transferred under
this section is entitled to basic educational assistance under this
subchapter in the same manner and at the same rate as the individual
from whom the entitlement was transferred.
    ``(3) The death of an individual transferring an entitlement under
this section shall not affect the use of the entitlement by the
individual to whom the entitlement is transferred.
    ``(4) The administrative provisions of this chapter (including the
provisions set forth in section 3034(a)(1) of this title) shall apply
to the use of entitlement transferred under this section, except that
the dependent to whom the entitlement is transferred shall be treated
as the eligible veteran for purposes of such provisions.
    ``(5) The purposes for which a dependent to whom entitlement is
transferred under this section may use such entitlement shall include
the pursuit and completion of the requirements of a secondary school
diploma (or equivalency certificate).
    ``(f) In the event of an overpayment of basic educational
assistance with respect to a dependent to whom entitlement is
transferred under this section, the dependent and the individual making
the transfer shall be jointly and severally liable to the United States
for the amount of the overpayment for purposes of section 3685 of this
title.
    ``(g) The Secretary shall prescribe regulations for purposes of
this section. Such regulations shall specify the manner and effect of
an election to modify or revoke a transfer of entitlement under
subsection (e)(2), and shall specify the manner of the applicability of
the administrative provisions referred to in subsection (e)(4) to a
dependent to whom entitlement is transferred under this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
3019 the following new item:

``3020. Transfer of entitlement to basic educational assistance:
                            individuals with 15 years of active duty
                            service.''.
    (c) Effective Date.--The amendments made by this section shall take
effect six months after the date of the enactment of this Act.

SEC. 4. EXTENSION OF TIME LIMITATION FOR USE OF ELIGIBILITY AND
              ENTITLEMENT.

    (a) All Volunteer Force Program.--Section 3031 of title 38, United
States Code, is amended--
            (1) by striking ``10-year period'' each place it appears
        (other than subsection (g)) and inserting ``20-year period'';
        and
            (2) in subsection (g), by striking ``the last day'' and all
        that follows through ``Act'' and inserting ``November 30,
        2019,''.
    (b) Educational Assistance for Selected Reserve.--Section 16133(a)
of title 10, United States Code, is amended by striking ``10-year
period'' and inserting ``20-year period''.

SEC. 5. BENEFIT FOR MEMBERS OF SELECTED RESERVE CALLED TO ACTIVE DUTY
              FOR MORE THAN ONE YEAR FOR CONTINGENCY OPERATION.

    (a) Increased Benefit Under Educational Assistance for Selected
Reserve.--Section 16131 of title 10, United States Code, is amended by
adding at the end the following:
    ``(j) In the case of a member of the Selected Reserve entitled to
educational assistance under this chapter who, during the period
referred to in subsection (a) with respect to the member, is called or
ordered to, or retained on, active duty for or in support of a
contingency operation, the rate of the educational assistance allowance
applicable to the member is as follows:
            ``(1) If the member's aggregate period on active duty for
        or in support of a contingency operation is more than one year
        but less than two years--
                    ``(A) for each month of full-time pursuit of a
                program of education, an amount equal to the average of
                the amount otherwise applicable to the person under
                subsection (b)(1)(A) and the amount applicable to an
                individual under section 3015(b)(1) of title 38;
                    ``(B) for each month of three-quarter-time pursuit
                of a program of education, an amount equal to three-
                quarters of the amount determined under subparagraph
                (A);
                    ``(C) for each month of half-time pursuit of a
                program of education, an amount equal to three-quarters
                of the amount determined under subparagraph (A); and
                    ``(D) for each month of less than half-time pursuit
                of a program of education, an appropriately reduced
                amount, as determined under regulations prescribed
                under subsection (b)(1)(D), subject to the limitation
                specified in that subsection.
            ``(2) If the member's aggregate period on active duty for
        or in support of a contingency operation is more than two years
        but less than three years, the amount that would be applicable
        to the member under section 3015(b) of title 38 were the member
        an individual described by that section.
            ``(3) If the member's aggregate period on active duty for
        or in support of a contingency operation is more than three
        years, the amount that would be applicable to the member under
        section 3015(a) of title 38 were the member an individual
        described by that section.''.
    (b) Effect of Active Duty on Entitlement for Basic Assistance for
Service in Selected Reserve.--(1) Clause (ii) of section 3012(a)(1)(A)
of title 38, United States Code, is amended to read as follows:
                            ``(ii) subject to subsection (b) of this
                        section and beginning within one year after
                        completion of the service on active duty
                        described in clause (i) of this clause--
                                    ``(I) serves at least four years of
                                continuous duty in the Selected Reserve
                                during which the individual
                                participates satisfactorily in training
                                as required by the Secretary concerned;
                                or
                                    ``(II) during continuous duty in
                                the Selected Reserve during which the
                                individual participates satisfactorily
                                in training as required by the
                                Secretary concerned, serves on active
                                duty for or in support of a contingency
                                operation (as that term is defined in
                                section 101(a) of title 10) for an
                                aggregate period of not less than one
                                year; or''.
    (2) Section 3015(c) of that title is amended--
            (A) in paragraph (1), by striking ``paragraph (1)'' and
        inserting ``paragraph (1) or (2)''; and
            (B) by adding at the end the following new paragraph:
    ``(3) Paragraph (1) of this subsection also applies to an
individual entitled to an educational assistance allowance under
section 3012 of this title who is described in subsection
(a)(1)(A)(ii)(II) of that section.''.

Summary: Montgomery GI Bill Improvements Act of 2001 - Amends Federal basic educational assistance provisions to eliminate the pay reduction currently required of service members as a precondition to eligibility for benefits Permits certain service members to transfer their entitlement to benefits to their spouses or dependent children. Extends the period after discharge during which former service members may utilize their benefits. Increases benefits available to members of the Selected Reserve called to active duty as part of a contingency operation.

A bill to amend titles 10 and 38, United States Code, to enhance the Montgomery GI Bill, and for other purposes.