Bill Summary
The Bank Service Company Examination Coordination Act of 2019 is an amendment to the Bank Service Company Act which aims to improve cooperation between state banking agencies and federal banking agencies. It amends the definition of "State banking agency" and requires federal banking agencies to consult with state banking agencies during examinations. It also allows for the sharing of information between federal and state agencies and encourages coordination to avoid duplication of examination activities. This act also includes a rule stating that it does not grant authority for state banking agencies to examine bank service companies where no such authority exists in state law. The budgetary effects of this act will be determined by the latest statement submitted to Congress prior to the vote on passage.
Possible Impacts
1. The Bank Service Company Examination Coordination Act of 2019 could affect people who work in the banking industry, as it includes improvements to the Bank Service Company Act that may change the way banks are regulated and examined.
2. Individuals who work for State banking agencies may be affected by this legislation, as they will now have a defined term and responsibilities under the amended Bank Service Company Act.
3. People who own shares or are members of a bank service company may be affected by this legislation, as it outlines the obligations of the Federal or State banking agencies in coordinating and avoiding duplication of examination activities.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 241 Referred in Senate (RFS)]
<DOC>
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 improvements with
respect to State banking agencies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bank Service Company Examination
Coordination Act of 2019''.
SEC. 2. BANK SERVICE COMPANY ACT IMPROVEMENTS.
The Bank Service Company Act (12 U.S.C. 1861 et seq.) is amended--
(1) in section 1(b)--
(A) by redesignating paragraphs (2) through (9) as
paragraphs (3) through (10), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) the term `State banking agency' shall have the same
meaning given the term `State Bank Supervisor' under section 3
of the Federal Deposit Insurance Act;'';
(2) in section 5(a), by inserting ``, in consultation with
the State banking agency,'' after ``banking agency''; and
(3) in section 7--
(A) in subsection (a)--
(i) in the first sentence, by inserting
``or State banking agency'' after ``appropriate
Federal banking agency''; and
(ii) 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'';
(B) in subsection (c)--
(i) by inserting ``or a State banking
agency'' after ``appropriate Federal banking
agency'';
(ii) by striking ``such agency'' each place
such term appears and inserting ``such Federal
or State agency'';
(C) by redesignating subsection (d) as subsection
(f);
(D) by inserting after subsection (c) the
following:
``(d) 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.
``(e) 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--
``(1) provide reasonable and timely notice to the State
banking agency; and
``(2) to the fullest extent possible, coordinate and avoid
duplication of examination activities, reporting requirements,
and requests for information.'';
(E) in subsection (f), as so redesignated, by
inserting ``, in consultation with State banking
agencies,'' after ``appropriate Federal banking
agencies''; and
(F) by adding at the end the following:
``(g) 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.''.
SEC. 3. 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.
Attest:
CHERYL L. JOHNSON,
Clerk.