Bank Service Company Examination Coordination Act of 2021

Bill: 117-s-1230
Sponsor: full_name: Sen. Cramer, Kevin [R-ND]
Introduced: 2021-04-20
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Government information and archives

Intergovernmental relations

State and local government operations
Latest action: action_date: 2021-04-20
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-04-20
action_desc: Introduced in Senate
text: <p><b>Bank Service Company Examination Coordination Act of 2021</b></p> <p>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&nbsp;information related to examinations and regulations between federal and state agencies. </p>

tv_txt: II 117th CONGRESS 1st Session S. 1230 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.

1. Short title This Act may be cited as the Bank Service Company Examination Coordination Act of 2021 . 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. . 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.