Bank Service Company Examination Coordination Act of 2019

IIB 116TH CONGRESS 1ST SESSION H. R. 241 IN THE SENATE OF THE UNITED STATES SEPTEMBER 11, 2019 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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 VerDate Sep 11 2014 22:55 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H241.RFS H241 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 241 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Bank Service Company 2 Examination Coordination Act of 2019’’. 3 SEC. 2. BANK SERVICE COMPANY ACT IMPROVEMENTS. 4 The Bank Service Company Act (12 U.S.C. 1861 et 5 seq.) is amended— 6 (1) in section 1(b)— 7 (A) by redesignating paragraphs (2) 8 through (9) as paragraphs (3) through (10), re- 9 spectively; and 10 (B) by inserting after paragraph (1) the 11 following: 12 ‘‘(2) the term ‘State banking agency’ shall have 13 the same meaning given the term ‘State Bank Su- 14 pervisor’ under section 3 of the Federal Deposit In- 15 surance Act;’’; 16 (2) in section 5(a), by inserting ‘‘, in consulta- 17 tion with the State banking agency,’’ after ‘‘banking 18 agency’’; and 19 (3) in section 7— 20 (A) in subsection (a)— 21 (i) in the first sentence, by inserting 22 ‘‘or State banking agency’’ after ‘‘appro- 23 priate Federal banking agency’’; and 24 (ii) in the second sentence, by striking 25 ‘‘Federal banking agency that supervises 26 VerDate Sep 11 2014 22:55 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H241.RFS H241 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 241 RFS any other shareholder or member’’ and in- 1 serting ‘‘Federal or State banking agency 2 that supervises any other shareholder or 3 member’’; 4 (B) in subsection (c)— 5 (i) by inserting ‘‘or a State banking 6 agency’’ after ‘‘appropriate Federal bank- 7 ing agency’’; 8 (ii) by striking ‘‘such agency’’ each 9 place such term appears and inserting 10 ‘‘such Federal or State agency’’; 11 (C) by redesignating subsection (d) as sub- 12 section (f); 13 (D) by inserting after subsection (c) the 14 following: 15 ‘‘(d) AVAILABILITY OF INFORMATION.—Information 16 obtained pursuant to the regulation and examination of 17 service providers under this section or applicable State law 18 may be furnished by and accessible to Federal and State 19 agencies to the same extent that supervisory information 20 concerning depository institutions is authorized to be fur- 21 nished to and required to be accessible by Federal and 22 State agencies under section 7(a)(2) of the Federal De- 23 posit Insurance Act (12 U.S.C. 1817(a)(2)) or State law, 24 as applicable. 25 VerDate Sep 11 2014 22:55 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H241.RFS H241 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 241 RFS ‘‘(e) COORDINATION WITH STATE BANKING AGEN- 1 CIES.—Where a State bank is principal shareholder or 2 principal member of a bank service company or where a 3 State bank is any other shareholder or member of the 4 bank service company, the appropriate Federal banking 5 agency, in carrying out examinations authorized by this 6 section, shall— 7 ‘‘(1) provide reasonable and timely notice to the 8 State banking agency; and 9 ‘‘(2) to the fullest extent possible, coordinate 10 and avoid duplication of examination activities, re- 11 porting requirements, and requests for informa- 12 tion.’’; 13 (E) in subsection (f), as so redesignated, 14 by inserting ‘‘, in consultation with State bank- 15 ing agencies,’’ after ‘‘appropriate Federal bank- 16 ing agencies’’; and 17 (F) by adding at the end the following: 18 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec- 19 tion shall be construed as granting authority for a State 20 banking agency to examine a bank service company where 21 no such authority exists in State law.’’. 22 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 23 The budgetary effects of this Act, for the purpose of 24 complying with the Statutory Pay-As-You-Go Act of 2010, 25 VerDate Sep 11 2014 22:55 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H241.RFS H241 pamtmann on DSKBC07HB2PROD with BILLS 5 HR 241 RFS shall be determined by reference to the latest statement 1 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 2 Act, submitted for printing in the Congressional Record 3 by the Chairman of the House Budget Committee, pro- 4 vided that such statement has been submitted prior to the 5 vote on passage. 6 Passed the House of Representatives September 10, 2019. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 22:55 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H241.RFS H241 pamtmann on DSKBC07HB2PROD with BILLS