Legislative Update for March 2013

March 6, 2013

CUNA Governmental Affairs Conference (GAC)

The CUNA GAC shed new light last week on the credit union movement’s national priorities, with President and CEO Bill Cheney unveiling the national association’s new “Unite to Win” vision and advocates from around the country meeting with their legislators to discuss supplemental capital and member business lending.

Read more about the MBL and supplemental capital bills introduced in Congress this year, along with on-the-ground coverage of the GAC:

• Cheney Unveils ‘Unite for Good’ Vision at CUNA GAC
• Inside the GAC: Cheney Shares Strategic Vision, Matz Discusses Retooled NCUA
• Northwest Credit Unions Have Impact in Meetings with Federal Legislators
• Rep. Denny Heck: Credit Unions will Help Americans Reclaim the Dream
• Keesee States Case for Supplemental Capital at CUNA GAC
• With Gabel as Emcee, NCUF Presents Herb Wegner Memorial Awards
• NWCUA’s Gabel in Spotlight at Herb Wegner Awards
• Credit Unions Busy Preparing for CUNA GAC

Credit Unions in Congress

Bills have been introduced in the House of Representatives that would give credit unions access to supplemental capital and more than double the member business lending (MBL) cap. Several of Oregon and Washington’s elected officials were appointed to significant committee posts this year as well, which could prove important for credit unions as Congress considers credit union legislation, comprehensive tax reform and significant budget issues. Read more:

• Credit Union Tax Exemption Expected to Come Before Congress in 2013
• Northwest’s Elected Officials Appointed to Important Congressional Committees
• MBL Bill Introduced in House, Supplemental Capital Bill Expected Today
• Congressman Heck Appointed to House Financial Services Committee
• What’s on the Horizon at the Federal Level in 2013?

Oregon State Legislature

Even as credit union-friendly legislation moves through the State Legislature, Oregon bankers have begun to wage a coordinated attack on the state’s credit unions, working to blur public perception of the distinction between for-profit banks and not-for-profit financial cooperatives in an effort to undermine the credit union tax exemption. Read more:

• March 13: Oregon Credit Union Day at the Capitol
• Oregon Senate Committee Holds Hearing on Foreclosure Mediation Bill
• Oregon Bankers’ Attack on Credit Unions Not Likely to be Popular with Voters
• Credit Union Bills Make Headway in Oregon, Washington State Legislatures
• Oregon Legislature in Session, Considering Bills Stemming from Bankers’ Anti-Credit Union Task Force

Washington State Legislature

Two companion bills sponsored by the NWCUA have breezed through their houses of origin this year. HB 1582 passed the House by a 96-0 vote in March, and SB 5302 unanimously passed the Senate in late February. Both would impact credit union governance and investments, most notably by allowing board and supervisory committee members to be provided with “reasonable compensation.” Read more about the bill’s progress and implications:

• NWCUA-Sponsored Bill Unanimously Passes Washington State House
• What HB 1582 Really Means for Washington State-Chartered Credit Unions
• Washington Legislative Week in Review: NWCUA Issues Call to Action in Support of HB 1582
• Washington Legislative Week in Review: Bills Continue Steady Progress as Deadlines Draw Near
• NWCUA-Sponsored Bills Receive Do-Pass Committee Recommendations
• Credit Union Advocates Flock to Olympia as Committees Discuss Board Governance Bills
• Picture This: Highlights from Washington Credit Union Day at the Capitol
• Two NWCUA-Sponsored Bills to Receive Committee Hearings in Washington Thursday
• Washington Legislative Week in Review: Committees, Hearings and Credit Union Day at the Capitol
• Washington Legislative Week in Review: Legislature in Session, NWCUA Establishes State Priorities

Tax Reform

Congress is taking a hard look at tax policies and procedures this year, and while no mention of the credit union tax exemption has yet been made, credit unions are continuously monitoring the situation at the federal and state levels. Read more:

• Ways and Means Committee Considering Comprehensive Tax Reform
• Credit Union Tax Exemption Expected to Come Before Congress in 2013

Financial Reality Fairs

A fast-growing tool for providing financial education to young people has also proven to be an effective way to give legislators a first-hand look at the credit union difference. Read more about this convergence of advocacy and community outreach:

• Credit Unions’ Financial Education Outreach in Spotlight Feb. 7
• Financial Reality Fair Prepares Students for Real Life

Regulatory Advocacy Update

The NWCUA remains vigilant on the regulatory front, working closely with regulators, government agencies and legislators to monitor and ease the regulatory burden. Read the following reports for a detailed account of our recent activity:

• Washington DFI Issues Two Regulatory Interpretations, More Expected
• DCBS to Issue Administrative Rule in Line with Model Credit Union Act Subcommittee Recommendation
• New Joint Rule on Appraisals for Higher-Priced Mortgages Released
• NCUA Exam Focus for 2013 Emphasizes Risk Management
• Be Successful in the Year Ahead: What You Need to Know from Your Regulator

Consumer Financial Protection Bureau (CFPB)

• The CFPB’s activity has spiked in its second full year of operation, and 2013 has already seen a number of significant rules and regulations handed down from the consumer agency. The NWCUA has established and maintained a positive working relationship with key leaders of the CFPB, and that dialogue has given Northwest credit unions an opportunity to voice their concerns and have questions answered directly by bureau decision-makers. Read more about the CFPB’s series of mortgage-lending rules, the NWCUA’s successful advocacy effort in raising the asset threshold for defining small credit unions, and about the Association’s interactions with the CFPB:
• CFPB Regional Director Discusses Agency Priorities, Mortgage-Lending Rules with Northwest Credit Unions
• CFPB’s Chow to Discuss Regulations, Hear Feedback from Northwest Credit Unions
• NCUA Hosts CFPB Director for Town Hall Meeting
• Steady Stream of Mortgage Servicing Rules Continues from CFPB
• CFPB Issues Highly Anticipated Ability-to-Repay Mortgage Rule
• CFPB Issues Semiannual Regulatory Agenda, Mortgage Lending Changes Anticipated
• CFPB Releases Updated HDMA Asset-Size Exemption Threshold

• Small Credit Union Threshold Raised to $50 million After Successful Advocacy Efforts
• CFPB Releases Updated HDMA Asset-Size Exemption Threshold

Low-Income Credit Union Designation

Through a partnership between the NCUA and NASCUS, the simplified opt-in process for receiving the low-income credit union (LICU) designation extended last year to federally chartered credit unions is now available to state-chartered credit unions as well. For more details, read this full report.

Advocates on the Move

Credit union advocates are participating at every level of our political advocacy process. By demonstrating our interest in campaigns and elections, credit union professionals, volunteers and members can make sure that candidates understand our issues and structure and gain an appreciation of the political abilities of the credit union movement. Even in races in which the credit union-supported loses the election, we have still made important progress, as credit unions will have further established their reputation for being actively involved in the political process. We must be seen as an active, viable, and important constituency.

Here is some of the most recent activity:

• Keesee States Case for Supplemental Capital at CUNA GAC
• OSU Federal Recognized for Innovative CULAC Fundraiser
• iQ Credit Union Raises the Bar for Credit Union Day at the Capitol
• Small Credit Union Threshold Raised to $50 million After Successful Advocacy Efforts

 

Questions? Contact a member of the Association’s Legislative Affairs team:

Jennifer Wagner, Vice President of Legislative Advocacy
Mark Minickiello, Vice President of Legislative Affairs
Pam Leavitt, Policy Advisor

Posted in Compliance, Compliance News.