[Pages S8380-S8381]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2379. Mr. MARKEY submitted an amendment intended to be proposed by 
him to the bill S. 1197, to authorize appropriations for fiscal year 
2014 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle E of title VI, add the following:

     SEC. 662. CONSUMER FINANCIAL PRODUCTS PILOT PROGRAM.

       (a) In General.--The Under Secretary of Defense 
     (Comptroller) shall carry out a 5-year pilot program to 
     develop innovative consumer financial products that encourage 
     savings and wealth-creation among members of the Armed Forces 
     on active duty.
       (b) Objectives.--Financial products developed under this 
     section may be designed to--
       (1) increase the rate of savings among members of the Armed 
     Forces on active duty by providing automatic deposit into a 
     savings account of special pay and allowances received by 
     such a member, including special pay and allowances received 
     on account of the deployment of the member;
       (2) reduce the need for high-cost short-term lending 
     services by providing alternatives to members of the Armed 
     Forces on active duty, such as financial institutions 
     providing an option for such members to receive advances on 
     their salary payments--
       (A) in a manner that permits such members to receive pay in 
     more frequent installments; and
       (B) under which any interest or fees on such advances--
       (i) does not exceed the rate described in section 987(b) of 
     title 10, United States Code; and
       (ii) adheres to the Affordable Small-Dollar Loan Guidelines 
     of the Federal Deposit Insurance Corporation;
       (3) address obstacles to traditional consumer banking and 
     lending for members of the Armed Forces with limited credit 
     history; and
       (4) otherwise encourage savings and wealth-creation among 
     members of the Armed Forces on active duty.
       (c) No Exacerbation of Credit Overextension.--The pilot 
     program carried out under this section shall be carried out 
     in a manner that does not exacerbate the incidence of credit 
     overextension among members of the Armed Forces.
       (d) Implementation.--
       (1) Selection of military installations.--The Under 
     Secretary shall select at

[[Page S8381]]

     least 10 military installations on which to implement the 
     pilot program.
       (2) Incorporation into operating agreements.--A financial 
     institution seeking to begin operating on a military 
     installation selected by the Under Secretary under paragraph 
     (1), or seeking to renew an agreement to operate on such an 
     installation, shall--
       (A) agree to offer the consumer financial products 
     developed under this section; and
       (B) notify members of the Armed Forces that are customers 
     of the institution about the availability of the consumer 
     financial products developed under this section.
       (e) Consultation.--In developing consumer financial 
     products under this section, the Under Secretary shall 
     consult with Federal banking regulators with expertise in 
     depository institutions, Federal agencies with experience 
     regulating financial products, and consumer and military 
     service organizations with relevant financial expertise.
       (f) Independent Evaluation.--
       (1) In general.--Not later than the date that is 2 years 
     after the date of the enactment of this Act, and annually 
     thereafter until the end of the pilot program, the Under 
     Secretary shall contract for an independent evaluation of the 
     pilot program carried out under this section. Such evaluation 
     shall--
       (A) include the degree to which the pilot program succeeded 
     in the goals of increasing usage of savings products, 
     programs, and tools among members of the Armed Forces on 
     active duty; and
       (B) be conducted by a contractor with knowledge of consumer 
     financial products and experience in the evaluation of such 
     products.
       (2) Report.--After each evaluation carried out pursuant to 
     paragraph (1), the Under Secretary shall submit to the 
     Committees on Armed Services and Banking, Housing, and Urban 
     Affairs of the Senate and the Committees on Armed Services 
     and Financial Services of the House of Representatives a 
     report containing all findings and conclusions made by the 
     contractor in conducting the evaluation.
       (g) Expansion of Pilot Program.--Notwithstanding subsection 
     (a), the Under Secretary may expand the pilot program, 
     including extending the duration of the program and expanding 
     the program to make it a nationwide program, to the extent 
     determined appropriate by the Under Secretary, if the Under 
     Secretary determines that such expansion is expected to--
       (1) improve the rates of savings among members of the Armed 
     Forces and their families; or
       (2) decrease the need for members of the Armed Forces and 
     their families to rely on payday lenders without exacerbating 
     credit overextension.
       (h) Financial Institution Defined.--In this section, the 
     term ``financial institution'' means an insured depository 
     institution (as defined in section 3(c)(2) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(c)(2))) or a credit 
     union.
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