text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``The Business Checking Fairness Act 
  of 2007''.
  
  SEC. 2. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL 
                BUSINESSES.
  
      Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--
              (1) by redesignating subsections (b) and (c) as subsections 
          (c) and (d), respectively; and
              (2) 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 of Governors 
  of the Federal Reserve System may determine by rule or order), for any 
  purpose, to another account of the owner in the same institution. An 
  account offered pursuant to this subsection shall be considered a 
  transaction account for purposes of section 19 of the Federal Reserve 
  Act unless the Board of Governors of the Federal Reserve System 
  determines otherwise.''.
  
  SEC. 3. 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      ``(i) [Repealed]''.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      ``(g) [Repealed]''.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. 4. RULES OF CONSTRUCTION.
  
      In the case of an escrow account maintained at a depository 
  institution for the purpose of completing the settlement of a real 
  estate transaction--
              (1) the absorption, by the depository institution, of 
          expenses incidental to providing a normal banking service 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 subparagraph (1) or (2) 
          or similar in nature to such action, including any benefits 
          which have been so determined by the appropriate Federal 
          regulator,
  shall not be treated as the payment or receipt of interest for purposes 
  of this Act and 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. No provision of this Act shall be construed so 
  as to require a depository institution that maintains an escrow account 
  in connection with a real estate transaction to pay interest on such 
  escrow account or to prohibit such institution from paying interest on 
  such escrow account. No provision of this Act shall be construed as 
  preempting the provisions of law of any State dealing with the payment 
  of interest on escrow accounts maintained in connection with real 
  estate transactions.
  
  SEC. 5. CONSUMER BANKING COSTS ASSESSMENT.
  
      (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
  amended--
              (1) by redesignating sections 30 and 31 as sections 31 and 
          32, respectively; and
              (2) by inserting after section 29 the following new 
          section:
  
  ``SEC. 30. SURVEY OF BANK FEES AND SERVICES.
  
      ``(a) Biennial Survey Required.--The Board of Governors of the 
  Federal Reserve System shall obtain biennially a sample, which is 
  representative by type and size of the institution (including small 
  institutions) 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):
              ``(1) Checking and other transaction accounts.
              ``(2) Negotiable order of withdrawal and savings accounts.
              ``(3) Automated teller machine transactions.
              ``(4) Other electronic transactions.
      ``(b) Minimum Survey Requirement.--The biennial survey described in 
  subsection (a) shall meet the following minimum requirements:
              ``(1) Checking and other transaction accounts.--Data on 
          checking and transaction accounts shall include, at a minimum, 
          the following:
                      ``(A) Monthly and annual fees and minimum balances 
                  to avoid such fees.
                      ``(B) Minimum opening balances.
                      ``(C) Check processing fees.
                      ``(D) Check printing fees.
                      ``(E) Balance inquiry fees.
                      ``(F) Fees imposed for using a teller or other 
                  institution employee.
                      ``(G) Stop payment order fees.
                      ``(H) Nonsufficient fund fees.
                      ``(I) Overdraft fees.
                      ``(J) Fees imposed in connection with bounced-check 
                  protection and overdraft protection programs.
                      ``(K) Deposit items returned fees.
                      ``(L) Availability of no-cost or low-cost accounts 
                  for consumers who maintain low balances.
              ``(2) 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:
                      ``(A) Monthly and annual fees and minimum balances 
                  to avoid such fees.
                      ``(B) Minimum opening balances.
                      ``(C) Rate at which interest is paid to consumers.
                      ``(D) Check processing fees for negotiable order of 
                  withdrawal accounts.
                      ``(E) Fees imposed for using a teller or other 
                  institution employee.
                      ``(F) Availability of no-cost or low-cost accounts 
                  for consumers who maintain low balances.
              ``(3) Automated teller transactions.--Data on automated 
          teller machine transactions shall include, at a minimum, the 
          following:
                      ``(A) Monthly and annual fees.
                      ``(B) Card fees.
                      ``(C) Fees charged to customers for withdrawals, 
                  deposits, and balance inquiries through institution-
                  owned machines.
                      ``(D) Fees charged to customers for withdrawals, 
                  deposits, and balance inquiries through machines owned 
                  by others.
                      ``(E) Fees charged to noncustomers for withdrawals, 
                  deposits, and balance inquiries through institution-
                  owned machines.
                      ``(F) Point-of-sale transaction fees.
              ``(4) Other electronic transactions.--Data on other 
          electronic transactions shall include, at a minimum, the 
          following:
                      ``(A) Wire transfer fees.
                      ``(B) Fees related to payments made over the 
                  Internet or through other electronic means.
              ``(5) Other fees and charges.--Data on any other fees and 
          charges that the Board of Governors of the Federal Reserve 
          System determines to be appropriate to meet the purposes of 
          this section.
              ``(6) Federal reserve board authority.--The Board of 
          Governors of the Federal Reserve System may cease the 
          collection of information with regard to any particular fee or 
          charge specified in this subsection if the Board makes a 
          determination that, on the basis of changing practices in the 
          financial services industry, the collection of such information 
          is no longer necessary to accomplish the purposes of this 
          section.
      ``(c) Biennial Report to Congress Required.--
              ``(1) Preparation.--The Board of Governors of the Federal 
          Reserve System shall prepare a report of the results of each 
          survey conducted pursuant to subsections (a) and (b) of this 
          section and section 136(b)(1) of the Consumer Credit Protection 
          Act.
              ``(2) Contents of the report.--In addition to the data 
          required to be collected pursuant to subsections (a) and (b), 
          each report prepared pursuant to paragraph (1) shall include a 
          description of any discernible trend, in the Nation as a whole, 
          in a representative sample of the 50 States (selected with due 
          regard for regional differences), and in each consolidated 
          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 subsections (a) and (b) (including related fees 
          and minimum balances), that delineates differences between 
          institutions on the basis of the type of institution and the 
          size of the institution, between large and small institutions 
          of the same type, and any engagement of the institution in 
          multistate activity.
              ``(3) Submission to the congress.--The Board of Governors 
          of the Federal Reserve System shall submit an biennial report 
          to the Congress not later than June 1, 2009, and before the end 
          of each 2-year period beginning after such date.
      ``(d) Definitions.--For purposes of this section, the term `insured 
  depository institution' has the meaning given such term in section 3 of 
  the Federal Deposit Insurance Act, and the term `insured credit union' 
  has the meaning given such term in section 101 of the Federal Credit 
  Union Act.''.
      (b) Conforming Amendment.--
              (1) In general.--Paragraph (1) of section 136(b) of the 
          Truth in Lending Act (15 U.S.C. 1646(b)(1)) is amended to read 
          as follows:
              ``(1) Collection required.--The Board shall collect, on a 
          semiannual basis, from a broad sample of financial institutions 
          which offer credit card services, credit card price and 
          availability information including--
                      ``(A) the information required to be disclosed 
                  under section 127(c);
                      ``(B) the average total amount of finance charges 
                  paid by consumers; and
                      ``(C) the following credit card rates and fees:
                              ``(i) Application fees.
                              ``(ii) Annual percentage rates for cash 
                          advances and balance transfers.
                              ``(iii) Maximum annual percentage rate that 
                          may be charged when an account is in default.
                              ``(iv) Fees for the use of convenience 
                          checks.
                              ``(v) Fees for balance transfers.
                              ``(vi) Fees for foreign currency 
                          conversions.''.
              (2) Effective date.--The amendment made by paragraph (1) 
          shall take effect on January 1, 2008.
      (c) Repeal of Other Report Provisions.--Section 1002 of Financial 
  Institutions Reform, Recovery, and Enforcement Act of 1989 and section 
  108 of the Riegle-Neal Interstate Banking and Branching Efficiency Act 
  of 1994 are hereby repealed.
target: Business Checking Fairness Act of 2007 - Amends federal law to authorize interest-bearing or dividend-bearing transaction accounts for all businesses, permitting up to 24 transfers per month to another account of the owner in the same institution.
  
  Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against the payment of interest on demand deposits.
  
  
  
  Amends the Federal Reserve Act to require the Board to survey biennially and report biennially to Congress on bank fees and certain services.
  
  Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, to repeal certain reporting requirements.
  
  Cites practices which shall not be treated as payment or receipt of interest if they relate to an escrow account maintained at a depository institution in connection with a real estate transaction.
feat_title: To repeal the prohibition on the payment of interest on demand deposits, and for other purposes.