Title: Bank Service Company Examination Coordination Act of 2021
Policy area: Finance and Financial Sector

Summary:
Bank Service Company Examination Coordination Act of 2021
This bill requires the coordination of state banking agencies with federal banking agencies in regulating and examining the activities of bank service companies. It also allows for the sharing of information related to examinations and regulations between federal and state agencies.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1230 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 1230

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 20, 2021

   Mr. Cramer (for himself, Ms. Warren, Ms. Lummis, Ms. Hirono, Mrs. 
Feinstein, Mr. Rounds, and Mr. Boozman) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  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 2021''.

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''; and
                            (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.
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