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Union Calendar No. 234 

118TH CONGRESS 

1ST SESSION H. R. 1109 

[Report No. 118–290] 

To amend the Bank Service Company Act to provide improvements with 

respect to State banking agencies, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 21, 2023 

Mr. WILLIAMS of Texas (for himself, Mr. MEEKS, and Mr. HILL) introduced 

the following bill; which was referred to the Committee on Financial Services 

DECEMBER 1, 2023 

Additional sponsors: Mr. CASE and Mr. LAWLER

DECEMBER 1, 2023 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on February 21, 2023] 


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•HR 1109 RH

A BILL 

To amend the Bank Service Company Act to provide improvements with respect to State banking agencies, and 

for other purposes. 


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•HR 1109 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bank Service Company 

5 Examination Coordination Act of 2023’’. 

6 SEC. 2. BANK SERVICE COMPANY ACT IMPROVEMENTS. 

7 The Bank Service Company Act (12 U.S.C. 1861 et 

8 seq.) is amended— 

9 (1) in section 1(b)— 

10 (A) in paragraph (8), by striking ‘‘and’’ at 

11 the end; 

12 (B) by redesignating paragraph (9) as 

13 paragraph (10); and 

14 (C) by inserting after paragraph (8) the fol15 lowing: 

16 ‘‘(9) the term ‘State banking agency’ shall have 

17 the same meaning given the term ‘State Bank Super18 visor’ under section 3 of the Federal Deposit Insur19 ance Act; and’’; 

20 (2) in section 5(a), by inserting ‘‘, in consulta21 tion with the State banking agency,’’ after ‘‘banking 

22 agency’’; and 

23 (3) in section 7— 

24 (A) in subsection (a)— 


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•HR 1109 RH

1 (i) in the first sentence, by inserting 

2 ‘‘or State banking agency’’ after ‘‘appro3 priate Federal banking agency’’; and 

4 (ii) in the second sentence, by striking 

5 ‘‘Federal banking agency that supervises 

6 any other shareholder or member’’ and in7 serting ‘‘Federal or State banking agency 

8 that supervises any other shareholder or 

9 member’’; 

10 (B) in subsection (c)— 

11 (i) by inserting ‘‘or a State banking 

12 agency’’ after ‘‘appropriate Federal banking 

13 agency’’; and 

14 (ii) by striking ‘‘such agency’’ each 

15 place such term appears and inserting 

16 ‘‘such Federal or State agency’’; 

17 (C) by redesignating subsection (d) as sub18 section (f); 

19 (D) by inserting after subsection (c) the fol20 lowing: 

21 ‘‘(d) AVAILABILITY OF INFORMATION.—Information 

22 obtained pursuant to the regulation and examination of 

23 service providers under this section or applicable State law 

24 may be furnished by and accessible to Federal and State 

25 agencies to the same extent that supervisory information 


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•HR 1109 RH

1 concerning depository institutions is authorized to be fur2 nished to and required to be accessible by Federal and State 

3 agencies under section 7(a)(2) of the Federal Deposit Insur4 ance Act (12 U.S.C. 1817(a)(2)) or State law, as applicable. 

5 ‘‘(e) COORDINATION WITH STATE BANKING AGEN6 CIES.—Where a State bank is principal shareholder or 

7 principal member of a bank service company or where a 

8 State bank is any other shareholder or member of the bank 

9 service company, the appropriate Federal banking agency, 

10 in carrying out examinations authorized by this section, 

11 shall— 

12 ‘‘(1) provide reasonable and timely notice to the 

13 State banking agency; and 

14 ‘‘(2) to the fullest extent possible, coordinate and 

15 avoid duplication of examination activities, reporting 

16 requirements, and requests for information.’’; 

17 (E) in subsection (f), as so redesignated, by 

18 inserting ‘‘, in consultation with State banking 

19 agencies,’’ after ‘‘appropriate Federal banking 

20 agencies’’; and 

21 (F) by adding at the end the following: 

22 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec23 tion shall be construed as granting authority for a State 

24 banking agency to examine a bank service company where 

25 no such authority exists in State law.’’. 


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Union Calendar No. 234 

118TH CONGRESS 

1ST SESSION H. R. 1109 

[Report No. 118–290] 

A BILL 

To amend the Bank Service Company Act to proagencies, and for other purposes. vide improvements with respect to State banking 

DECEMBER 1, 2023 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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