IIB 

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. 

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


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HR 241 RFS

1 SECTION 1. SHORT TITLE. 

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

3 Examination Coordination Act of 2019’’. 

4 SEC. 2. BANK SERVICE COMPANY ACT IMPROVEMENTS. 

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

6 seq.) is amended— 

7 (1) in section 1(b)— 

8 (A) by redesignating paragraphs (2) 

9 through (9) as paragraphs (3) through (10), re10 spectively; and 

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

12 following: 

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

14 the same meaning given the term ‘State Bank Su15 pervisor’ under section 3 of the Federal Deposit In16 surance Act;’’; 

17 (2) in section 5(a), by inserting ‘‘, in consulta18 tion with the State banking agency,’’ after ‘‘banking 

19 agency’’; and 

20 (3) in section 7— 

21 (A) in subsection (a)— 

22 (i) in the first sentence, by inserting 

23 ‘‘or State banking agency’’ after ‘‘appro24 priate Federal banking agency’’; and 

25 (ii) in the second sentence, by striking 

26 ‘‘Federal banking agency that supervises 


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HR 241 RFS

1 any other shareholder or member’’ and in2 serting ‘‘Federal or State banking agency 

3 that supervises any other shareholder or 

4 member’’; 

5 (B) in subsection (c)— 

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

7 agency’’ after ‘‘appropriate Federal bank8 ing agency’’; 

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

10 place such term appears and inserting 

11 ‘‘such Federal or State agency’’; 

12 (C) by redesignating subsection (d) as sub13 section (f); 

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

15 following: 

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

17 obtained pursuant to the regulation and examination of 

18 service providers under this section or applicable State law 

19 may be furnished by and accessible to Federal and State 

20 agencies to the same extent that supervisory information 

21 concerning depository institutions is authorized to be fur22 nished to and required to be accessible by Federal and 

23 State agencies under section 7(a)(2) of the Federal De24 posit Insurance Act (12 U.S.C. 1817(a)(2)) or State law, 

25 as applicable. 


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1 ‘‘(e) COORDINATION WITH STATE BANKING AGEN2 CIES.—Where a State bank is principal shareholder or 

3 principal member of a bank service company or where a 

4 State bank is any other shareholder or member of the 

5 bank service company, the appropriate Federal banking 

6 agency, in carrying out examinations authorized by this 

7 section, shall— 

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

9 State banking agency; and 

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

11 and avoid duplication of examination activities, re12 porting requirements, and requests for informa13 tion.’’; 

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

15 by inserting ‘‘, in consultation with State bank16 ing agencies,’’ after ‘‘appropriate Federal bank17 ing agencies’’; and 

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

19 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec20 tion shall be construed as granting authority for a State 

21 banking agency to examine a bank service company where 

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

23 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 

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

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


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HR 241 RFS

1 shall be determined by reference to the latest statement 

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

3 Act, submitted for printing in the Congressional Record 

4 by the Chairman of the House Budget Committee, pro5 vided that such statement has been submitted prior to the 

6 vote on passage. 

Passed the House of Representatives September 10, 

2019. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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