S.Amdt. 3859

1. Rewrites section 1044

   Replaces

   Removes section 1044.

   Inserted: SEC. 1044. STATE LAW PREEMPTION STANDARDS FOR NATIONAL BANKS AND SUBSIDIARIES CLARIFIED.

   Inserted: (a) In General.--Chapter One of title LXII of the Revised Statutes of the United States (12 U.S.C. 21 et seq.) is amended by inserting after section 5136B the following new section:

   Inserted: "SEC. 5136C. STATE LAW PREEMPTION STANDARDS FOR NATIONAL BANKS AND SUBSIDIARIES CLARIFIED.

   Inserted: "(a) Definitions.--For purposes of this section--

   Inserted: "(1) the term 'national bank' includes--

   Inserted: "(A) any bank organized under the laws of the United States;

   Inserted: "(B) any affiliate of a national bank;

   Inserted: "(C) any subsidiary of a national bank; and

   Inserted: "(D) any Federal branch established in accordance with the International Banking Act of 1978;

   Inserted: "(2) the terms 'affiliate', 'subsidiary', 'includes', and 'including' have the same meanings as in section 3 of the Federal Deposit Insurance Act; and

   Inserted: "(3) the term 'State consumer law' means any law of a State that regulates the manner, content, or terms and conditions of any financial transaction (as may be authorized for national banks to engage in), or any account related thereto, with respect to a consumer.

   Inserted: "(b) State Consumer Laws of General Application.--Except as provided in subsection (c), and notwithstanding any other provision of Federal law, any consumer protection provision of a State consumer law of general application, shall apply to a national bank operating within the jurisdiction of that State, including any law relating to--

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   Inserted: "(1) unfair or deceptive acts or practices;

   Inserted: "(2) consumer fraud; and

   Inserted: "(3) repossession, foreclosure, and debt collections.

   Inserted: "(c) Exceptions.--

   Inserted: "(1) In general.--Subsection (b) shall not apply with respect to any State consumer law, if--

   Inserted: "(A) the State consumer law discriminates against national banks; or

   Inserted: "(B) the State consumer law is inconsistent with provisions of Federal law, other than this title, but only to the extent of the inconsistency (as determined in accordance with the provision of the other Federal law).

   Inserted: "(2) Rule of construction.--For purposes of paragraph (1), a State consumer law is not inconsistent with Federal law, if the protection that the State consumer law affords consumers is greater than the protection provided under Federal law, as determined by the Bureau of Consumer Financial Protection.

   Inserted: "(d) State Banking Laws Enacted Pursuant to Federal Law.--

   Inserted: "(1) In general.--Except as provided in paragraph (2), and notwithstanding any other provision of Federal law, any State consumer law shall apply to a national bank operating within the jurisdiction of that State, if such State consumer law--

   Inserted: "(A) is applicable to State banks; and

   Inserted: "(B) was enacted pursuant to or in accordance with, and is not inconsistent with, an Act of Congress, including the Gramm-Leach-Bliley Act, the Consumer Credit Protection Act, and the Real Estate Settlement Procedures Act of 1974, that explicitly or by implication, permits States to exceed or supplement the requirements of any comparable Federal law.

   Inserted: "(2) Exceptions.--

   Inserted: "(A) In general.--Paragraph (1) shall not apply with respect to any State law, if--

   Inserted: "(i) the State consumer law discriminates against national banks; or

   Inserted: "(ii) the State consumer law is inconsistent with provisions of Federal law, other than this title, but only to the extent of the inconsistency (as determined in accordance with the provision of the other Federal law).

   Inserted: "(B) Rule of construction.--For purposes of subparagraph (A), a State consumer law is not inconsistent with Federal law, if the protection that the State consumer law affords consumers is greater than the protection provided under Federal law, as determined Bureau of Consumer Financial Protection.

   Inserted: "(e) No Negative Implications for Applicability of Other State Laws.--No provision of this section shall be construed as altering or affecting the applicability to national banks of any State law which is not described in this section.

   Inserted: "(f) Effect of Transfer of Transaction.--State consumer law applicable to a transaction at the inception of the transaction may not be preempted under Federal law solely because a national bank subsequently acquires the asset or instrument that is the subject of the transaction.

   Inserted: "(g) Denial of Preemption Not a Deprivation of a Civil Right.--The preemption of any provision of the law of any State with respect to any national bank shall not be treated as a right, privilege, or immunity for purposes of section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983).".

   Inserted: (b) Clerical Amendment.--The table of sections for chapter one of title LXII of the Revised Statutes of the United States is amended by inserting after the item relating to section 5136B the following new item:

   Inserted: "5136C. State law preemption standards for national banks and subsidiaries clarified.".

   Original wording

   Strike section 1044 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed