I 

117TH CONGRESS 

1ST SESSION H. R. 2270 

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 

MARCH 26, 2021 

Mr. WILLIAMS of Texas (for himself and Mr. MEEKS) introduced the following 

bill; which was referred to the Committee on Financial Services, and in 

addition to the Committee on the Budget, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

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

for other purposes. 

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 2021’’. 

6 SEC. 2. BANK SERVICE COMPANY ACT IMPROVEMENTS. 

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

8 seq.) is amended— 


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1 (1) in section 1(b)— 

2 (A) by redesignating paragraphs (2) 

3 through (9) as paragraphs (3) through (10), re4 spectively; and 

5 (B) by inserting after paragraph (1) the 

6 following: 

7 ‘‘(2) the term ‘State banking agency’ shall have 

8 the same meaning given the term ‘State Bank Su9 pervisor’ under section 3 of the Federal Deposit In10 surance Act;’’; 

11 (2) in section 5(a), by inserting ‘‘, in consulta12 tion with the State banking agency,’’ after ‘‘banking 

13 agency’’; and 

14 (3) in section 7— 

15 (A) in subsection (a)— 

16 (i) in the first sentence, by inserting 

17 ‘‘or State banking agency’’ after ‘‘appro18 priate Federal banking agency’’; and 

19 (ii) in the second sentence, by striking 

20 ‘‘Federal banking agency that supervises 

21 any other shareholder or member’’ and in22 serting ‘‘Federal or State banking agency 

23 that supervises any other shareholder or 

24 member’’; 

25 (B) in subsection (c)— 


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

2 agency’’ after ‘‘appropriate Federal bank3 ing agency’’; and 

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

5 place such term appears and inserting 

6 ‘‘such Federal or State agency’’; 

7 (C) by redesignating subsection (d) as sub8 section (f); 

9 (D) by inserting after subsection (c) the 

10 following: 

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

12 obtained pursuant to the regulation and examination of 

13 service providers under this section or applicable State law 

14 may be furnished by and accessible to Federal and State 

15 agencies to the same extent that supervisory information 

16 concerning depository institutions is authorized to be fur17 nished to and required to be accessible by Federal and 

18 State agencies under section 7(a)(2) of the Federal De19 posit Insurance Act (12 U.S.C. 1817(a)(2)) or State law, 

20 as applicable. 

21 ‘‘(e) COORDINATION WITH STATE BANKING AGEN22 CIES.—Where a State bank is principal shareholder or 

23 principal member of a bank service company or where a 

24 State bank is any other shareholder or member of the 

25 bank service company, the appropriate Federal banking 


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1 agency, in carrying out examinations authorized by this 

2 section, shall— 

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

4 State banking agency; and 

5 ‘‘(2) to the fullest extent possible, coordinate 

6 and avoid duplication of examination activities, re7 porting requirements, and requests for informa8 tion.’’; 

9 (E) in subsection (f), as so redesignated, 

10 by inserting ‘‘, in consultation with State bank11 ing agencies,’’ after ‘‘appropriate Federal bank12 ing agencies’’; and 

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

14 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec15 tion shall be construed as granting authority for a State 

16 banking agency to examine a bank service company where 

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

18 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 

19 The budgetary effects of this Act, for the purpose of 

20 complying with the Statutory Pay-As-You-Go Act of 2010, 

21 shall be determined by reference to the latest statement 

22 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

23 Act, submitted for printing in the Congressional Record 

24 by the Chairman of the House Budget Committee, proVerDate Sep 11 2014 01:30 May 26, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2270.IH H2270

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1 vided that such statement has been submitted prior to the 

2 vote on passage. 

Æ 


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