H.R. 3599 – Reading Mode

111th CONGRESS

1st Session

H. R. 3599

IN THE HOUSE OF REPRESENTATIVES

September 17, 2009

Mr. Cleaver (for himself and Mr. Frank of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Federal Deposit Insurance Act to provide for deposit restricted qualified tuition programs, and for other purposes.

Short title

This Act may be cited as the Deposit Restricted Qualified Tuition Programs Act of 2009.

Deposit restricted qualified tuition programs

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

(y)

Deposit restricted qualified tuition programs

(1)

Definitions

For purposes of this subsection, the following definitions shall apply:

(A)

Deposit restricted qualified tuition program

The term deposit restricted qualified tuition program means a qualified tuition program in which—

(i)

the cash provided by a contributor to such a qualified tuition program may be invested only in deposits insured by the Corporation;

(ii)

the contributor may become a participant in the program by depositing funds into an account at a depository institution participating in the program; and

(iii)

the program may include multiple depository institutions, subject to the requirements of section 529 of the Internal Revenue Code of 1986.

(B)

Qualified tuition program

The term qualified tuition program has the same meaning as in section 529 of the Internal Revenue Code of 1986.

(2)

Treatment

Notwithstanding any other provision of the law, the following provisions shall apply with respect to any deposit restricted qualified tuition program:

(A)

A deposit restricted qualified tuition program shall be deemed to be an identified banking product (as defined in Section 206 of the Gramm-Leach-Bliley Act of 1999) for purposes of the Securities Exchange Act of 1934.

(B)

None of the following shall be treated as a security, as defined in section 2(a)(1) the Securities Act of 1933, section 3(a)(10) of the Securities Exchange Act of 1934, or section 2(a)(36) of the Investment Company Act of 1940:

(i)

The investment of cash in deposits at an insured depository institution through a deposit restricted qualified tuition program.

(ii)

Any certificate of deposit or other instrument evidencing any such deposit.

(iii)

Any participation by a contributor to a deposit restricted qualified tuition program.

(C)

In no event shall a deposit restricted qualified tuition program be deemed to be an issuer of a security or to be an investment company (as defined in section 3(a) of the Investment Company Act of 1940).