United States 116th Congress Status: Died 8 D cosponsors

HR 3951 — Payments Modernization Act of 2019

Last action — Referred to the House Committee on Financial Services.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 116th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Payments Modernization Act of 2019 This bill requires the Federal Reserve Board to create a real-time payment system that allows funds to be available to any end user in real time, including funds deposited at a depository institution.

Bill Text

Sections of law this bill changes

4 sections in 1 law

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).

Expedited funds availability · 12 U.S.C. ch. 41 4 sections
  • § 4002 Expedited funds availability schedules Amends

    12 U.S.C. § 4002

    The law today

    (a) Next business day availability for certain deposits (1) Cash deposits; wire transfers Except as provided in subsection (e) and in section 4003 of this title, in any case in which— (A) any cash is deposited in an account at a receiving depository institution staffed by individuals employed by such institution, or (B) funds are received by a depository institution by wire transfer for deposit in an account at such institution, such cash or funds shall be available for withdrawal not later than the business day after the business day on which such cash is deposited or such funds are received for deposit. (2) Government checks; certain other checks Funds deposited in an account at a depository institution by check shall be available for withdrawal not later than the business day after the business day on which such funds are deposited in the case of— (A) a check which— (i) is drawn on the Treasury of the United States; and (ii) is endorsed only by the person to whom it was issued; (B) a check which— (i) is drawn by a State; (ii) is deposited in a receiving depository institution which is located in such State and is staffed by individuals employed by such institution; (iii) is deposited with a special deposit slip which indicates it is a check drawn by a State; and (iv) is endorsed only by the person to whom it was issued; (C) a check which— (i) is drawn by a unit of general local government; (ii) is deposited in a receiving depository institution which is located in the same State as such unit of general local government and is staffed by individuals employed by such institution; (iii) is deposited with a special deposit slip which indicates it is a check drawn by a unit of general local government; and (iv) is endorsed only by the person to whom it was issued; (D) the first $200 deposited by check or checks on any one business day; (E) a check deposited in a branch of a depository institution and drawn on the same or another branch of the same depository institution if both such branches are located in the same State or the same check processing region; (F) a cashier’s check, certified check, teller’s check, or depository check which— (i) is deposited in a receiving depository institution which is staffed by individuals employed by such institution; (ii) is deposited with a special deposit slip which indicates it is a cashier’s check, certified check, teller’s check, or depository check, as the case may be; and (iii) is endorsed only by the person to whom it was issued. (b) Permanent schedule (1) Availability of funds deposited by local checks Subject to paragraph (3) of this subsection, subsections (a)(2), (d), and (e) of this section, and section 4003 of this title, not more than 1 business day shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a local originating depository institution and the business day on which the funds involved are available for withdrawal. (2) Availability of funds deposited by nonlocal checks Subject to paragraph (3) of this subsection, subsections (a)(2), (d), and (e) of this section, and section 4003 of this title, not more than 4 business days shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a nonlocal originating depository institution and the business day on which such funds are available for withdrawal. (3) Time period adjustments for cash withdrawal of certain checks (A) In general Except as provided in subparagraph (B), funds deposited in an account in a depository institution by check (other than a check described in subsection (a)(2)) shall be available for cash withdrawal not later than the business day after the business day on which such funds otherwise are available under paragraph (1) or (2). (B) 5 p.m. cash availability Not more than $400 (or the maximum amount allowable in the case of a withdrawal from an automated t...

    7 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 4003 Safeguard exceptions Amends

    12 U.S.C. § 4003

    The law today

    (a) New accounts Notwithstanding section 4002 of this title, in the case of any account established at a depository institution by a new depositor, the following provisions shall apply with respect to any deposit in such account during the 30-day period (or such shorter period as the Board, jointly with the Director of the Bureau of Consumer Financial Protection, may establish) beginning on the date such account is established— (1) Next business day availability of cash and certain items Except as provided in paragraph (3), in the case of— (A) any cash deposited in such account; (B) any funds received by such depository institution by wire transfer for deposit in such account; (C) any funds deposited in such account by cashier’s check, certified check, teller’s check, depository check, or traveler’s check; and (D) any funds deposited by a government check which is described in subparagraph (A), (B), or (C) of section 4002(a)(2) of this title, such cash or funds shall be available for withdrawal on the business day after the business day on which such cash or funds are deposited or, in the case of a wire transfer, on the business day after the business day on which such funds are received for deposit. (2) Availability of other items In the case of any funds deposited in such account by a check (other than a check described in subparagraph (C) or (D) of paragraph (1)), the availability for withdrawal of such funds shall not be subject to the provisions of section 4002(b), 4002(c), or paragraphs 1 (1) of section 4002(e) of this title. (3) Limitation relating to certain checks in excess of $5,000 In the case of funds deposited in such account during such period by checks described in subparagraph (C) or (D) of paragraph (1) the aggregate amount of which exceeds $5,000— (A) paragraph (1) shall apply only with respect to the first $5,000 of such aggregate amount; and (B) not more than 8 business days shall intervene between the business day on which any such funds are deposited and the business day on which such excess amount shall be available for withdrawal. (b) Large or redeposited checks; repeated overdrafts The Board, jointly with the Director of the Bureau of Consumer Financial Protection, may, by regulation, establish reasonable exceptions to any time limitation established under subsection (a)(2), (b), (c), or (e) of section 4002 of this title for— (1) the amount of deposits by one or more checks that exceeds the amount of $5,000 in any one day; (2) checks that have been returned unpaid and redeposited; and (3) deposit accounts which have been overdrawn repeatedly. (c) Reasonable cause exception (1) In general In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, subsections (a)(2), (b), (c), and (e) of section 4002 of this title shall not apply with respect to any check deposited in an account at a depository institution if the receiving depository institution has reasonable cause to believe that the check is uncollectible from the originating depository institution. For purposes of the preceding sentence, reasonable cause to believe requires the existence of facts which would cause a well-grounded belief in the mind of a reasonable person. Such reasons shall be included in the notice required under subsection (f). (2) Basis for determination No determination under this subsection may be based on any class of checks or persons. (3) Overdraft fees If the receiving depository institution determines that a check deposited in an account is a check described in paragraph (1), the receiving depository institution shall not assess any fee for any subsequent overdraft with respect to such account, if— (A) the depositor was not provided with the written notice required under subsection (f) (with respect to such determination) at the time the deposit was made; (B) the overdraft would not have occurred but for the fact that the funds so deposited a...

    6 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 4006 Miscellaneous provisions Amends

    12 U.S.C. § 4006

    The law today

    (a) After-hours deposits For purposes of this chapter, any deposit which is made on a Saturday, Sunday, legal holiday, or after the close of business on any business day shall be deemed to have been made on the next business day. (b) Availability at start of business day Except as provided in subsections (b)(3) and (c)(1)(B) of section 4002 of this title, if any provision of this chapter requires that funds be available for withdrawal on any business day, such funds shall be available for withdrawal at the start of such business day. (c) Effect on policies of depository institutions No provision of this chapter shall be construed as— (1) prohibiting a depository institution from making funds available for withdrawal in a shorter period of time than the period of time required by this chapter; or (2) affecting a depository institution’s right— (A) to accept or reject a check for deposit; (B) to revoke any provisional settlement made by the depository institution with respect to a check accepted by such institution for deposit; (C) to charge back the depositor’s account for the amount of such check; or (D) to claim a refund of such provisional credit. (d) Prohibition on freezing certain funds in an account In any case in which a check is deposited in an account at a depository institution and the funds represented by such check are not yet available for withdrawal pursuant to this chapter, the depository institution may not freeze any other funds in such account (which are otherwise available for withdrawal pursuant to this chapter) solely because the funds so deposited are not yet available for withdrawal. (e) Employee training on and compliance with requirements of this chapter Each depository institution shall— (1) take such actions as may be necessary fully to inform each employee (who performs duties subject to the requirements of this chapter) of the requirements of this chapter; and (2) establish and maintain procedures reasonably designed to assure and monitor employee compliance with such requirements. (f) Adjustments to dollar amounts for inflation The dollar amounts under this chapter shall be adjusted every 5 years after December 31, 2011, by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as published by the Bureau of Labor Statistics, rounded to the nearest multiple of $25.

    5 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 4008 Regulations and reports by Board Amends

    12 U.S.C. § 4008

    The law today

    (a) In general After notice and opportunity to submit comment in accordance with section 553(c) of title 5, the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe regulations— (1) to carry out the provisions of this chapter; (2) to prevent the circumvention or evasion of such provisions; and (3) to facilitate compliance with such provisions. (b) Regulations relating to improvement of check processing system In order to improve the check processing system, the Board shall consider (among other proposals) requiring, by regulation, that— (1) depository institutions be charged based upon notification that a check or similar instrument will be presented for payment; (2) the Federal Reserve banks and depository institutions provide for check truncation; (3) depository institutions be provided incentives to return items promptly to the depository institution of first deposit; (4) the Federal Reserve banks and depository institutions take such actions as are necessary to automate the process of returning unpaid checks; (5) each depository institution and Federal Reserve bank— (A) place its endorsement, and other notations specified in regulations of the Board, on checks in the positions specified in such regulations; and (B) take such actions as are necessary to— (i) automate the process of reading endorsements; and (ii) eliminate unnecessary endorsements; (6) within one business day after an originating depository institution is presented a check (for more than such minimum amount as the Board may prescribe)— (A) such originating depository institution determines whether it will pay such check; and (B) if such originating depository institution determines that it will not pay such check, such originating depository institution directly notify the receiving depository institution of such determination; (7) regardless of where a check is cleared initially, all returned checks be eligible to be returned through the Federal Reserve System; (8) Federal Reserve banks and depository institutions participate in the development and implementation of an electronic clearinghouse process to the extent the Board determines, pursuant to the study under subsection (f), that such a process is feasible; and (9) originating depository institutions be permitted to return unpaid checks directly to, and obtain reimbursement for such checks directly from, the receiving depository institution. (c) Regulatory responsibility of Board for payment system (1) Responsibility for payment system In order to carry out the provisions of this chapter, the Board of Governors of the Federal Reserve System shall have the responsibility to regulate— (A) any aspect of the payment system, including the receipt, payment, collection, or clearing of checks; and (B) any related function of the payment system with respect to checks. (2) Regulations The Board shall prescribe such regulations as it may determine to be appropriate to carry out its responsibility under paragraph (1). (d) Reports (1) Implementation progress reports (A) Required reports The Board shall transmit a report to both Houses of the Congress not later than 18, 30, and 48 months after August 10, 1987. (B) Contents of report Each such report shall describe— (i) the actions taken and progress made by the Board to implement the schedules established in section 4002 of this title, and (ii) the impact of this chapter on consumers and depository institutions. (2) Evaluation of temporary schedule report (A) Report required The Board shall transmit a report to both Houses of the Congress not later than 2 years after August 10, 1987, regarding the effects the temporary schedule established under section 4002(c) of this title have had on depository institutions and the public. (B) Contents of report Such report shall also assess the potential impact the implementation of the schedule established in section 4002(b) of this title will have on depository institutions and th...

    13 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

How this bill changes current law

12 changes Share ↗

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends the Expedited Funds Availability Act to require real-time availability of deposited funds instead of next business day availability.

  • 12 U.S.C. 4002

    Except as provided in subsection (e) and in section 604, in → In

    Changes the introduction of subsection (a)(1) to remove exceptions for availability timing.

  • 12 U.S.C. 4002

    not later than the business day after the business day on which → in real time when

    Requires that cash deposits and wire transfers be available for withdrawal in real time instead of the next business day.

  • 12 U.S.C. 4002

    not later than the business day after the business day on which → in real time after

    Requires that funds deposited by checks be available in real time rather than by the next business day.

  • 12 U.S.C. 4002

    Next Business Day → Real Time

    Changes the heading of subsection (a) to reflect real-time availability.

  • 12 U.S.C. 4002

    subsection (b) → Permanent Schedule.--Funds deposited in an account at a depository institution by a check drawn on a local or nonlocal originating depository institution shall be available for withdrawal in real time.

    Establishes that all check deposits will be available in real time, eliminating the distinction between local and nonlocal checks.

  • 12 U.S.C. 4002

    subsection (c)

    Removes the temporary availability schedule for checks.

  • 12 U.S.C. 4002

    subsection (d)

    Removes additional provisions related to temporary schedules.

  • 12 U.S.C. 4003

    on the business day after the business day on which such cash or funds are deposited or, in the case of a wire transfer, on the business day after the business day on which → in real time after such cash or funds are deposited or, in the case of a wire transfer, in real time after

    Changes the requirement for availability of funds in new accounts to real time rather than the next business day.

  • 12 U.S.C. 4003

    Next business day → Real time

    Updates headings to reflect the new requirement for real-time availability.

  • 12 U.S.C. 4003

    any such funds deposited in excess of such amount shall be available for withdrawal in real time.

    Specifies that all amounts deposited above a threshold will be available in real time.

  • 12 U.S.C. 4006

    subsections (a) and (b)

    Removes provisions related to after-hours deposits and availability at start of business day.

  • 12 U.S.C. 4008

    subsections (d) and (f)

    Removes outdated provisions regarding regulations and reports.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Financial Services.

Sponsors

Sponsorship breakdown

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1 sponsors · 7 co-sponsors · 539 not signed on

Sponsors (1)

Co-sponsors (7)

Not signed on (539)

539 members have not signed on to this bill.

Show all 539 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HR 3951 do?
Payments Modernization Act of 2019 This bill requires the Federal Reserve Board to create a real-time payment system that allows funds to be available to any end user in real time, including funds deposited at a depository institution.
Who sponsors HR 3951?
HR 3951 is sponsored by García, Jesús G. "Chuy" (Democratic), Tlaib, Rashida (Democratic), Axne, Cynthia (Democratic), Meeks, Gregory W. (Democratic), Lynch, Stephen F. (Democratic), Maloney, Carolyn B. (Democratic), Cleaver, Emanuel (Democratic), and Pressley, Ayanna (Democratic).
What is the current status of HR 3951?
This bill died with 116th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 3951?
Track HR 3951 free on One Click Politics — get push/email alerts when it moves.

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