WASHINGTON—The House and Senate are both expected to take up additional regulatory relief legislation before the current Congress adjourns, and both credit union trade groups are lining up behind a number of proposals.
As CUToday.info has reported, S. 2155, the Economic, Growth, Regulatory Relief and Consumer Protection Act, remains the priority, with House leaders saying action will be taken prior to Memorial Day. But the final form that legislation will take remains unknown, and CUNA and NAFCU are working with legislators to craft a number of other bills with a goal of providing regulatory relief.
Specifically, NAFCU President and CEO Dan Berger has urged congressional leaders to act on:
- Capital/risk-based capital (RBC) reform: NAFCU is a strong supporter of the Common Sense Capital Relief Act (HR 5288), which would allow the NCUA to revisit and reconsider its approach to RBC by delaying the rule's effective date for two years to Jan. 1, 2021.
- Data and cybersecurity: Since the Target data breach in 2013, NAFCU has advocated for reforms that would create a safer environment and hold retailers accountable for data and cybersecurity breaches that occur on their end, all while not creating burdensome new requirements on financial institutions. Berger asked that NAFCU-backed draft legislation put forth by House Financial Services Subcommittee Chairman Blaine Luetkemeyer (R-MO) and Rep. Carolyn Maloney (D-NY) be advanced later this year.
- Field of membership: NAFCU wants to see a strengthened federal charter so credit unions' state and federal charters are able to keep pace with each other, Berger wrote. He added the association's support for the Financial Services for the Underserved Act (HR 4665), which would allow all credit unions to add underserved areas to their FOMs.
- Ending lawsuit abuse: "Credit unions are too often targets of demand letters that seek monetary damages for questionable patents or website 'violations' of the Americans with Disabilities Act (ADA)," Berger explained. He added that Congress must step in and seek to curb these abusive practices and urged the Senate to take action on the House-passed, NAFCU-backed ADA Education and Reform Act of 2017 (HR 620).
- Preserving the credit union tax exemption: Thanking Congress and the administration for preserving the credit union tax exemption in the recently passed tax reform law, Berger urged the congressional leaders to continue to protect the exemption as they look to address more tax issues later this year.