WASHINGTON–CUNA has joined with the American Bankers Association in sending a letter to Congress regarding cannabis-related legislation.
CUNA President Jim Nussle and ABA President Rob Nichols sent the letter to the House Committee on Financial Services prior to markup of the Secure and Fair Enforcement (SAFE) Banking Act of 2019, which would permit depository institutions to serve the needs of their customers/members in states where cannabis is legal without fear of federal prosecution.
“Although we do not take a position on the legalization of marijuana, our members are committed to serving the financial needs of their communities – including those that have voted to legalize cannabis,” the letter states. “The current threat of criminal and civil liability under federal law is suppressing the provision of vital financial services in the thirty-three states that have legalized cannabis in some form.
“The SAFE Banking Act of 2019 provides a mechanism for the cannabis industry and its service providers to deposit their cash in regulated financial institutions, which allows our members to meet the needs of their communities and helps those communities reduce cash-motivated crimes, increase the efficiency of tax collections, and improve the financial transparency of the cannabis industry,” the letter continues.
CUNA and the ABA told the committee that if Congress doesn’t act a “significant portion of economic activity, including those businesses with only indirect connections to the cannabis industry, such as vendors, suppliers, and utility companies, risk being marginalized from the financial system in states with legal cannabis industries.”
Letters Sent on Data Security, Privacy
Separately, CUNA is calling on Congress to recognize data security as an issue of national security.
In letters to a Senate subcommittee, CUNA said “data privacy and security have become major concerns for consumers as concern over misuse of personally identifiable information (PII) by businesses and foreign states increases with every breach misuse of this data. Since 2005, there have been more than 10,000 data breaches, exposing as nearly 12 billion consumer records – costing credit unions, banks and consumers hundreds of millions of dollars.”
Noting credit unions operate under the Gramm-Leach Bliley Act (GLBA) and are examined by both NCUA and the CFPB, the trade group said other entities such as retailers and merchants are not subject to security standards as financial services providers.
In the letters, CUNA stressed several points credit unions are seeking to advance for federal privacy and data security legislation, including:
- Data privacy and security are hand in glove
- Everyone should follow the same rules
- There should be one rule for the road
- Breach disclosure and consumer notification are important but these requirements alone won’t enhance security or privacy
- Entities that jeopardize consumer privacy and security should be held accountable through private right of action and regulatory enforcements
CUNA further argued that Europe’s General Data Protection Regulation (GDPR) and California’s California Consumer Privacy Act (CCPA) show foreign governments and states are “not willing to sit on the sidelines and neither should Congress. Action is required to ensure that all Americans can enjoy robust protection of their most important personal data from misuse and theft.”
The CUNA letter to the Senate Commerce Subcommittee on Manufacturing, Trade and Consumer hearing can be found here.
Consumers First Act
Letter to House Financial Services Committee on Markup of HR 1500, the “Consumers First Act.”
In its letter, CUNA said it has long advocated for a multimember, bipartisan commission at the Consumer Financial Protection Bureau (CFPB), but is concerned with several provisions of the bill, including the dilution of the Credit Union Advisory Council (CUAC).
CUNA said it believes the Consumers First Act would be a more effective instrument of sustainable change if the bill was grounded in improving the Bureau’s leadership structure through the adoption of a multimember, bipartisan commission, rather than the current single director structure.
The full letter can be found here.