[Congressional Record Volume 161, Number 126 (Wednesday, August 5, 2015)]
[Senate]
[Pages S6421-S6422]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2638. Mr. BROWN submitted an amendment intended to be proposed by 
him to the bill S. 754, to improve cybersecurity in the United States 
through enhanced sharing of information about cybersecurity threats, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ____. IMPROVED REGULATION AND EXAMINATION OF SERVICE 
                   PROVIDERS.

       (a) Bank Service Company Act.--Section 7 of the Bank 
     Service Company Act (12 U.S.C. 1867) is amended by adding at 
     the end the following:

[[Page S6422]]

       ``(e) Required Examinations.--
       ``(1) In general.--Except as provided in paragraph (3), the 
     appropriate Federal banking agency shall, not less than once 
     during each 12-month period, conduct a full-scope, on-site 
     examination of each bank service company.
       ``(2) State examinations acceptable.--Except as provided in 
     paragraph (3), the examinations required by paragraph (1) may 
     be conducted in alternate 12-month periods, as appropriate, 
     if the appropriate Federal banking agency determines that an 
     examination of the bank service company conducted by the 
     State during the intervening 12-month period carries out the 
     purpose of this subsection.
       ``(3) 18-month rule for certain bank service companies.--
     The examinations conducted under paragraphs (1) and (2) shall 
     be conducted during an 18-month period, tailored as needed to 
     align with a lengthened examination cycle of a bank service 
     company, if the appropriate Federal banking agency determines 
     that a bank service company--
       ``(A) was well managed at the most recent examination of 
     the bank service company;
       ``(B) is not subject to a formal enforcement proceeding or 
     order by the appropriate Federal banking agency (as of the 
     date on which the determination is made); and
       ``(C) satisfies any other requirement that the appropriate 
     Federal banking agency determines is appropriate.
       ``(4) Authority to conduct more frequent examinations.--
     Each appropriate Federal banking agency may examine any bank 
     service company as frequently as the appropriate Federal 
     banking agency determines is necessary.''.
       (b) Home Owners' Loan Act.--Section 5(d)(7) of the Home 
     Owners' Loan Act (12 U.S.C. 1464(d)(7)) is amended by adding 
     at the end the following:
       ``(F) Required examinations.--
       ``(i) In general.--Except as provided in clause (iii), the 
     appropriate Federal banking agency shall, not less than once 
     during each 12-month period, conduct a full-scope, on-site 
     examination of each service company.
       ``(ii) State examinations acceptable.--Except as provided 
     in clause (iii), the examinations required by clause (i) may 
     be conducted in alternate 12-month periods, as appropriate, 
     if the appropriate Federal banking agency determines that an 
     examination of the service company conducted by the State 
     during the intervening 12-month period carries out the 
     purpose of this subparagraph.
       ``(iii) 18-month rule for certain service companies.--The 
     examinations conducted under clauses (i) and (ii) shall be 
     conducted during an 18-month period, tailored as needed to 
     align with a lengthened examination cycle of a service 
     company, if the appropriate Federal banking agency determines 
     that a service company--

       ``(I) was well managed at the most recent examination of 
     the service company;
       ``(II) is not subject to a formal enforcement proceeding or 
     order by the appropriate Federal banking agency (as of the 
     date on which the determination is made); and
       ``(III) satisfies any other requirement that the 
     appropriate Federal banking agency determines is necessary.

       ``(iv) Authority to conduct more frequent examinations.--
     Each appropriate Federal banking agency may examine any 
     service company as frequently as the appropriate Federal 
     banking agency determines is necessary.''.
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