Bank Service Company Examination Coordination Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1501 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 MAY 9, 2023 Mr. CRAMER (for himself, Ms. WARREN, Ms. LUMMIS, Ms. HIRONO, Mr. BOOZMAN, and Mr. ROUNDS) 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 2023’’. 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) (12 U.S.C. 1861(b))— 9 VerDate Sep 11 2014 23:05 May 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1501.IS S1501 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1501 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’ has the 6 meaning given the term ‘State bank supervisor’ in 7 section 3 of the Federal Deposit Insurance Act (12 8 U.S.C. 1813);’’; 9 (2) in section 5(a) (12 U.S.C. 1865(a)), by in- 10 serting ‘‘, in consultation with the State banking 11 agency,’’ after ‘‘agency’’; and 12 (3) in section 7 (12 U.S.C. 1867)— 13 (A) in subsection (a)— 14 (i) in the first sentence, by inserting 15 ‘‘or State banking agency’’ after ‘‘agency’’; 16 and 17 (ii) in the second sentence, by insert- 18 ing ‘‘or State banking agency’’ before 19 ‘‘that’’; 20 (B) in subsection (c)— 21 (i) in the matter preceding paragraph 22 (1), by inserting ‘‘or a State banking agen- 23 cy’’ after ‘‘banking agency’’; and 24 VerDate Sep 11 2014 23:05 May 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1501.IS S1501 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1501 IS (ii) by striking ‘‘such agency’’ each 1 place such term appears and inserting 2 ‘‘such Federal or State agency’’; 3 (C) by redesignating subsection (d) as sub- 4 section (f); 5 (D) by inserting after subsection (c) the 6 following: 7 ‘‘(d) AVAILABILITY OF INFORMATION.—Information 8 obtained pursuant to the regulation and examination of 9 service providers under this section or applicable State law 10 may be furnished by and accessible to Federal and State 11 agencies to the same extent that supervisory information 12 concerning depository institutions is authorized to be fur- 13 nished to and required to be accessible by Federal and 14 State agencies under section 7(a)(2) of the Federal De- 15 posit Insurance Act (12 U.S.C. 1817(a)(2)) or State law, 16 as applicable. 17 ‘‘(e) COORDINATION WITH STATE BANKING AGEN- 18 CIES.—If a State bank is principal shareholder, principal 19 member, shareholder, or member of a bank service com- 20 pany, the appropriate Federal banking agency, in carrying 21 out examinations authorized by this section, shall— 22 ‘‘(1) provide reasonable and timely notice to the 23 State banking agency; and 24 VerDate Sep 11 2014 23:05 May 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1501.IS S1501 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1501 IS ‘‘(2) to the fullest extent possible, coordinate 1 and avoid duplication of examination activities, re- 2 porting requirements, and requests for informa- 3 tion.’’; 4 (E) in subsection (f), as so redesignated, 5 by inserting ‘‘, in consultation with State bank- 6 ing agencies,’’ after ‘‘agencies’’; and 7 (F) by adding at the end the following: 8 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec- 9 tion shall be construed as granting authority for a State 10 banking agency to examine a bank service company if no 11 such authority exists in State law.’’. 12 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 13 The budgetary effects of this Act, for the purpose of 14 complying with the Statutory Pay-As-You-Go Act of 2010, 15 shall be determined by reference to the latest statement 16 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 17 Act, submitted for printing in the Congressional Record 18 by the Chairman of the House Budget Committee, pro- 19 vided that such statement has been submitted prior to the 20 vote on passage. 21 Æ VerDate Sep 11 2014 23:05 May 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1501.IS S1501 kjohnson on DSK79L0C42PROD with BILLS