Bank Service Company Examination Coordination Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1230 To amend the Bank Service Company Act to provide improvements with respect to State banking agencies, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 20, 2021 Mr. CRAMER (for himself, Ms. WARREN, Ms. LUMMIS, Ms. HIRONO, Mrs. FEINSTEIN, Mr. ROUNDS, and Mr. BOOZMAN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 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 (1) in section 1(b)— 9 VerDate Sep 11 2014 21:59 May 13, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1230.IS S1230 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1230 IS (A) by redesignating paragraphs (2) 1 through (9) as paragraphs (3) through (10), re- 2 spectively; and 3 (B) by inserting after paragraph (1) the 4 following: 5 ‘‘(2) the term ‘State banking agency’ shall have 6 the same meaning given the term ‘State Bank Su- 7 pervisor’ under section 3 of the Federal Deposit In- 8 surance Act;’’; 9 (2) in section 5(a), by inserting ‘‘, in consulta- 10 tion with the State banking agency,’’ after ‘‘banking 11 agency’’; and 12 (3) in section 7— 13 (A) in subsection (a)— 14 (i) in the first sentence, by inserting 15 ‘‘or State banking agency’’ after ‘‘appro- 16 priate Federal banking agency’’; and 17 (ii) in the second sentence, by striking 18 ‘‘Federal banking agency that supervises 19 any other shareholder or member’’ and in- 20 serting ‘‘Federal or State banking agency 21 that supervises any other shareholder or 22 member’’; 23 (B) in subsection (c)— 24 VerDate Sep 11 2014 21:59 May 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1230.IS S1230 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1230 IS (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 21:59 May 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1230.IS S1230 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1230 IS 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 21:59 May 13, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1230.IS S1230 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1230 IS vided that such statement has been submitted prior to the 1 vote on passage. 2 Æ VerDate Sep 11 2014 21:59 May 13, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S1230.IS S1230 kjohnson on DSK79L0C42PROD with BILLS