Bank Service Company Examination Coordination Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 2270 To amend the Bank Service Company Act to provide improvements with respect to State banking agencies, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 26, 2021 Mr. WILLIAMS of Texas (for himself and Mr. MEEKS) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provi- sions as fall within the jurisdiction of the committee concerned A BILL To amend the Bank Service Company Act to provide im- provements with respect to State banking agencies, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Bank Service Company 4 Examination Coordination Act of 2021’’. 5 SEC. 2. BANK SERVICE COMPANY ACT IMPROVEMENTS. 6 The Bank Service Company Act (12 U.S.C. 1861 et 7 seq.) is amended— 8 VerDate Sep 11 2014 01:30 May 26, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2270.IH H2270 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 2270 IH (1) in section 1(b)— 1 (A) by redesignating paragraphs (2) 2 through (9) as paragraphs (3) through (10), re- 3 spectively; and 4 (B) by inserting after paragraph (1) the 5 following: 6 ‘‘(2) the term ‘State banking agency’ shall have 7 the same meaning given the term ‘State Bank Su- 8 pervisor’ under section 3 of the Federal Deposit In- 9 surance Act;’’; 10 (2) in section 5(a), by inserting ‘‘, in consulta- 11 tion with the State banking agency,’’ after ‘‘banking 12 agency’’; and 13 (3) in section 7— 14 (A) in subsection (a)— 15 (i) in the first sentence, by inserting 16 ‘‘or State banking agency’’ after ‘‘appro- 17 priate Federal banking agency’’; and 18 (ii) in the second sentence, by striking 19 ‘‘Federal banking agency that supervises 20 any other shareholder or member’’ and in- 21 serting ‘‘Federal or State banking agency 22 that supervises any other shareholder or 23 member’’; 24 (B) in subsection (c)— 25 VerDate Sep 11 2014 01:30 May 26, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2270.IH H2270 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 2270 IH (i) by inserting ‘‘or a State banking 1 agency’’ after ‘‘appropriate Federal bank- 2 ing agency’’; and 3 (ii) by striking ‘‘such agency’’ each 4 place such term appears and inserting 5 ‘‘such Federal or State agency’’; 6 (C) by redesignating subsection (d) as sub- 7 section (f); 8 (D) by inserting after subsection (c) the 9 following: 10 ‘‘(d) AVAILABILITY OF INFORMATION.—Information 11 obtained pursuant to the regulation and examination of 12 service providers under this section or applicable State law 13 may be furnished by and accessible to Federal and State 14 agencies to the same extent that supervisory information 15 concerning depository institutions is authorized to be fur- 16 nished to and required to be accessible by Federal and 17 State agencies under section 7(a)(2) of the Federal De- 18 posit Insurance Act (12 U.S.C. 1817(a)(2)) or State law, 19 as applicable. 20 ‘‘(e) COORDINATION WITH STATE BANKING AGEN- 21 CIES.—Where a State bank is principal shareholder or 22 principal member of a bank service company or where a 23 State bank is any other shareholder or member of the 24 bank service company, the appropriate Federal banking 25 VerDate Sep 11 2014 01:30 May 26, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2270.IH H2270 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 2270 IH agency, in carrying out examinations authorized by this 1 section, shall— 2 ‘‘(1) provide reasonable and timely notice to the 3 State banking agency; and 4 ‘‘(2) to the fullest extent possible, coordinate 5 and avoid duplication of examination activities, re- 6 porting requirements, and requests for informa- 7 tion.’’; 8 (E) in subsection (f), as so redesignated, 9 by inserting ‘‘, in consultation with State bank- 10 ing agencies,’’ after ‘‘appropriate Federal bank- 11 ing agencies’’; and 12 (F) by adding at the end the following: 13 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec- 14 tion shall be construed as granting authority for a State 15 banking agency to examine a bank service company where 16 no such authority exists in State law.’’. 17 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 18 The budgetary effects of this Act, for the purpose of 19 complying with the Statutory Pay-As-You-Go Act of 2010, 20 shall be determined by reference to the latest statement 21 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 22 Act, submitted for printing in the Congressional Record 23 by the Chairman of the House Budget Committee, pro- 24 VerDate Sep 11 2014 01:30 May 26, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2270.IH H2270 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 2270 IH vided that such statement has been submitted prior to the 1 vote on passage. 2 Æ VerDate Sep 11 2014 01:30 May 26, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2270.IH H2270 pbinns on DSKJLVW7X2PROD with BILLS