Strengthening Cybersecurity for the Financial Sector Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8740 To amend the Bank Service Company Act to cover credit unions to the same extent as such Act covers banks and savings associations, to provide the Director of the Federal Housing Finance Agency with the authority to regulate the provision of services provided to the Government-spon- sored enterprises and Federal Home Loan Banks, and for other purposes. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 12, 2020 Mr. FOSTER introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Bank Service Company Act to cover credit unions to the same extent as such Act covers banks and savings associations, to provide the Director of the Federal Housing Finance Agency with the authority to regulate the provision of services provided to the Govern- ment-sponsored enterprises and Federal Home Loan Banks, 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 ‘‘Strengthening Cyber- 4 security for the Financial Sector Act of 2020’’. 5 VerDate Sep 11 2014 23:33 Nov 25, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8740.IH H8740 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8740 IH SEC. 2. INCLUSION OF CREDIT UNIONS UNDER THE BANK 1 SERVICE COMPANY ACT. 2 The Bank Service Company Act is amended— 3 (1) in section 1(b) (12 U.S.C. 1861(b))— 4 (A) by amending paragraph (1) to read as 5 follows: 6 ‘‘(1) the term ‘appropriate Federal banking 7 agency’— 8 ‘‘(A) has the meaning given that term 9 under section 3 of the Federal Deposit Insur- 10 ance Act (12 U.S.C. 1813); and 11 ‘‘(B) means the National Credit Union Ad- 12 ministration, in the case of a credit union;’’; 13 (B) by amending paragraph (5) to read as 14 follows: 15 ‘‘(5) the term ‘insured depository institution’— 16 ‘‘(A) has the meaning given that term 17 under section 3 of the Federal Deposit Insur- 18 ance Act (12 U.S.C. 1813); and 19 ‘‘(B) means an insured credit union, as de- 20 fined under section 101 of the Federal Credit 21 Union Act (12 U.S.C. 1752);’’; 22 (C) in paragraph (8), by striking ‘‘and’’ at 23 the end; 24 (D) in paragraph (9)— 25 VerDate Sep 11 2014 23:33 Nov 25, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8740.IH H8740 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8740 IH (i) by inserting before ‘‘and’’ the fol- 1 lowing: ‘‘, ‘savings association’,’’; and 2 (ii) by striking the period at the end 3 and inserting a semicolon; and 4 (E) by adding at the end the following: 5 ‘‘(10) the term ‘credit union’ means a Federal 6 credit union or a State credit union; and 7 ‘‘(11) the terms ‘insured credit union’, ‘Federal 8 credit union’, and ‘State credit union’ have the 9 meaning given those terms, respectively, under sec- 10 tion 101 of the Federal Credit Union Act (12 U.S.C. 11 1752).’’; 12 (2) in section 2 (12 U.S.C. 1862), by striking 13 ‘‘banks or savings associations’’ and inserting ‘‘de- 14 pository institutions’’; and 15 (3) in section 4 (12 U.S.C. 1864)— 16 (A) in subsection (c), by striking ‘‘State 17 bank or State savings association’’ each place 18 such term appears and inserting ‘‘State bank, 19 State savings association, or State credit 20 union’’; 21 (B) in subsection (d), by striking ‘‘national 22 bank or Federal savings association’’ each place 23 such term appears and inserting ‘‘national 24 VerDate Sep 11 2014 23:33 Nov 25, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8740.IH H8740 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8740 IH bank, Federal savings association, or Federal 1 credit union’’; and 2 (C) in subsection (f), by striking ‘‘banks or 3 savings associations’’ and inserting ‘‘depository 4 institutions’’. 5 SEC. 3. REGULATION OF SERVICE PROVIDERS BY FHFA. 6 Subpart A of part 2 of subtitle A of the Federal 7 Housing Enterprises Financial Safety and Soundness Act 8 of 1992 (12 U.S.C. 4541 et seq.) is amended by adding 9 at the end the following new section: 10 ‘‘SEC. 1329. REGULATION OF SERVICE PROVIDERS. 11 ‘‘Whenever a Federal Home Loan Bank or enterprise 12 (or any subsidiary or affiliate of such a Bank or enter- 13 prise) causes to be performed for itself, by contract or oth- 14 erwise, any services, whether on or off its premises— 15 ‘‘(1) such performance shall be subject to regu- 16 lation and examination by the Director to the same 17 extent as if such services were being performed by 18 such Bank or enterprise itself on its own premises; 19 and 20 ‘‘(2) the Bank or enterprise shall notify the Di- 21 rector of the existence of the service relationship 22 within thirty days after the making of such service 23 VerDate Sep 11 2014 23:33 Nov 25, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8740.IH H8740 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 8740 IH contract or the performance of the service, whichever 1 occurs first.’’. 2 Æ VerDate Sep 11 2014 23:33 Nov 25, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H8740.IH H8740 pbinns on DSKJLVW7X2PROD with BILLS