I 

116TH CONGRESS 

1ST SESSION H. R. 241 

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 

JANUARY 4, 2019 

Mr. WILLIAMS introduced the following bill; which was referred to the 

Committee on Financial Services 

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 2019’’. 

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)— 


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1 (A) by redesignating paragraphs (2) 

2 through (9) as paragraphs (3) through (10), re3 spectively; and 

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

5 following: 

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

7 the same meaning given the term ‘State Bank Su8 pervisor’ under section 3 of the Federal Deposit In9 surance Act;’’; 

10 (2) in section 5(a), by inserting ‘‘, in consulta11 tion with the State banking agency,’’ after ‘‘banking 

12 agency’’; and 

13 (3) in section 7— 

14 (A) in subsection (a)— 

15 (i) in the first sentence, by inserting 

16 ‘‘or State banking agency’’ after ‘‘appro17 priate Federal banking agency’’; and 

18 (ii) in the second sentence, by striking 

19 ‘‘Federal banking agency that supervises 

20 any other shareholder or member’’ and in21 serting ‘‘Federal or State banking agency 

22 that supervises any other shareholder or 

23 member’’; 

24 (B) in subsection (c)— 


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

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

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.’’. 

Æ 


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