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
To amend the Bank Service Company Act to provide improvements with respect to State banking agencies, and for other purposes.
This Act may be cited as the
Bank Service Company Examination Coordination Act of 2019.
Bank Service Company Act improvements
The Bank Service Company Act (12 U.S.C. 1861 et seq.) is amended—
in section 1(b)—
by redesignating paragraphs (2) through (9) as paragraphs (3) through (10), respectively; and
by inserting after paragraph (1) the following:
State banking agency shall have the same meaning given the term
State Bank Supervisor under section 3 of the Federal Deposit Insurance Act;
in section 5(a), by inserting
, in consultation with the State banking agency, after
banking agency; and
in section 7—
in subsection (a)—
in the first sentence, by inserting
or State banking agency after
appropriate Federal banking agency; and
in the second sentence, by striking
Federal banking agency that supervises any other shareholder or member and inserting
Federal or State banking agency that supervises any other shareholder or member;
in subsection (c)—
or a State banking agency after
appropriate Federal banking agency;
such agency each place such term appears and inserting
such Federal or State agency;
by redesignating subsection (d) as subsection (f);
by inserting after subsection (c) the following:
Availability of information
Information obtained pursuant to the regulation and examination of service providers under this section or applicable State law may be furnished by and accessible to Federal and State agencies to the same extent that supervisory information concerning depository institutions is authorized to be furnished to and required to be accessible by Federal and State agencies under section 7(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)) or State law, as applicable.
Coordination with State Banking Agencies
Where a State bank is principal shareholder or principal member of a bank service company or where a State bank is any other shareholder or member of the bank service company, the appropriate Federal banking agency, in carrying out examinations authorized by this section, shall—
provide reasonable and timely notice to the State banking agency; and
to the fullest extent possible, coordinate and avoid duplication of examination activities, reporting requirements, and requests for information.
in subsection (f), as so redesignated, by inserting
, in consultation with State banking agencies, after
appropriate Federal banking agencies; and
by adding at the end the following:
Rule of construction
Nothing in this section shall be construed as granting authority for a State banking agency to examine a bank service company where no such authority exists in State law.
Determination of Budgetary Effects
The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled
Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.
Passed the House of Representatives September 10, 2019.
Cheryl L. Johnson,