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FEDERAL VICTORIES

IRS Provision
We defeated a proposed Internal Revenue Service (IRS) reporting provision that would have required credit unions and other financial service providers to report gross cash flow for accountholders as a means to closing the “tax gap.” The Leagues and the Credit Union National Association (CUNA) worked with two congressional representatives from California and Nevada to end this provision:

  • Rep. Stephen Horsford (D-NV) aided by assembling a coalition of House Democrats to formally oppose the issue. Through Rep. Horsford, the Nevada Credit Union League directly lobbied Deputy Treasury Secretary Wally Adeyemo and a team of assistant secretaries to revise and withdraw their proposal.
     
  • Rep. Lou Correa (D-CA) championed a letter signed by 21 House Democrats who opposed the provision and threatened to withhold their vote if the language was included in the final bill.
These two elements brought about the termination of the IRS reporting-requirement proposal.


Legislation Advanced

  • CDRLF: The Leagues partnered with Rep. Norma Torres’ (D-CA) to introduce an amendment to the House-passed Financial Services and General Government Appropriations Bill. It authorizes grants from the Community Development Revolving Loan Fund (CDRLF) to be utilized for grant-writing purposes for credit unions under $100 million in assets.
     
  • H.R. 3958 makes the extended borrowing authority of the National Credit Union Administration’s (NCUA) Central Liquidity Facility permanent. It passed the House Financial Services Committee and is pending on the House Floor.
     
  • H.R. 2133 updates the Federal Credit Union Act, shifting membership expulsions from members to the board of directors. It advanced from the House Financial Services Committee by voice-vote on unified bipartisan support. It is a shining example of how credit union bills should be addressed in Congress. The bill is pending on the House Floor.
     
  • Serving the Underserved: Chairwoman Maxine Waters of the House Financial Services Committee has held two hearings on the Expanding Financial Access for Underserved Communities Act, a bill that would remove field-of-membership to underserved and rural communities. The bill will be introduced this session with an objective of moving from the House before the end of 2022.
     
  • S. 762: Rep. Cortez Masto (D-NV) introduced the Expanding Access to Lending Options Act, which raises the maturity limit to 20 years for non-mortgage loans at federally chartered credit unions. Sen. Alex Padilla (D-CA) is a lead co-sponsor.
     
  • H.R. 1471: Rep. Brad Sherman (D-CA) introduced this bill, providing a one-year safe harbor for the credit union member business lending cap during periods of economic disaster.
     
  • Regulatory Relief: In early February, House Financial Services Committee Chairwoman Maxine Waters (D-CA) requested NCUA Board Chairman Todd Harper to provide federal regulatory relief with respect to stimulus checks and other federal government deposits coming into credit unions.
     
  • Interchange: We halted progress on the introduction of legislation capping credit card interchange fees. Rep. Darrell Issa (R-CA) was examining this issue; however, he withheld his support in favor of examining data security options instead.
     
  • Military Base Access: We defeated military banks’ attempt to gain rent-free access to military bases and instillations, a privilege that exists for credit unions only. Reps. John Garamendi (D-CA) and Jackie Speier (D-CA), Chairs of committees with jurisdiction on this issue, blocked banks from moving forward with their agenda at our request.
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STATE ACCOMPLISHMENTS

California Wins (2021)

  • Sponsored Senate Bill 269: This credit union modernization bill strengthens and modernizes the charter for state-chartered credit unions through updated expulsion and appeals processes, parity with federally chartered credit unions and other financial institutions, changes to the audit committee composition and authorities, and other technical changes.
     
  • Amended Assembly Bill 1177: Requires a robust study of the California Public Banking Option Act — a review that must return to the legislature before any program can be implemented.
     
  • Defeated Senate Bill 449: This would have burdened credit unions with climate reporting requirements.
     
  • Defeated Assembly Bill 756: This would have taxed student loans originated at a financial institution located in California.


Additional California Successes (2018 – 2020)

  • Defeated Assembly Bills 2501 and 1436: Protected credit unions from mandatory forbearance and allowed them to work with their members through the COVID-19 pandemic.
     
  • DFPI: Ensured the status-quo for credit unions during the transition of our state regulator, the Department of Financial Protection and Innovation (DFPI).
     
  • Amended Assembly Bill 857: Protects credit unions against competition from a public bank, and gives credit unions the opportunity to partner with a public bank.
     
  • Supported Senate Bill 1121: Exempts credit unions from the new California Consumer Privacy Act (CCPA) by recognizing0 compliance with the Gramm-Leach-Bliley Act (GLBA).
     
  • Sponsored Assembly Bill 2862: Updates the California credit union charter and gives state-chartered credit unions parity with federally chartered credit unions on escrow law exemption, investments in charitable donation accounts, purchase and sale of whole loans, authorization of investments for employee benefits plan obligations without prior approval, and no more requirement for savings capital structure policies.
     
  • Supported Senate Bill 1055: Empowers credit unions to encourage savings by ensuring that California lottery or raffle rules do not apply when offering Prize Linked Savings Accounts (PLSA).
     
  • Defeated Senate Bill 308: Provided protection from increasing the exemption amount a debtor can shield from creditors through bankruptcy. 


Nevada Victories (2018 – 2021)

Prevented onerous and restrictive requirements to collect debts:

  • Assembly Bill 152: Would have made significant changes to debt collections in the state (bill failed).
     
  • Senate Bill 248: Revises provisions relating to the collection of medical debt. This bill, signed by the Governor, clarifies the definition of “medical debt” to protect credit unions from a more challenging collections process.

Maintained current priority-lien status on commercial PACE properties: 

  • Senate Bill 283: Revises provisions related to Nevada’s Commercial Property Assessed Clean Energy (C-PACE) statutes. This bill, signed by the Governor, contained several amendments and key protections for credit unions.  

Ensured credit unions were not included in a state CRA effort:

  • Senate Bill 145: Creates state-based requirements related to the federal Community Reinvestment Act (CRA). This bill, signed by the Governor, provided reassurance in the committee process that credit unions would not be required to comply with the bill since credit unions are not subject to CRA.  

Prevented an overhaul of the foreclosure auction process that would have delayed the sale of properties: 

  • Senate Bill 159: Would have created bidder’s preference for tenants in foreclosure auctions (bill failed).

Additional legislative actions and outcomes: 

  • Assembly Bill 61: Revises provisions relating to trade practices. This bill was signed by the Governor with the intent to prevent any deceptive trade practices within the state during a state of emergency.
     
  • Assembly Bill 207: Changes provisions related to online businesses and business websites. This bill was signed by the Governor, and the author agreed to limit the bill to businesses that are solely online.
     
  • Assembly Bill 235: Adds financial literacy education requirements for high school students (signed by the Governor).
     
  • Assembly Bill 324: Would have made changes related to digital assets (bill failed).
     
  • Assembly Bill 359: Revises provisions governing deceptive trade practices. This bill, signed by the Governor, contained key negotiations achieved by the Nevada Credit Union League, as well as assurance of the League’s participation in the regulatory process.
     
  • Senate Bill 57: Would have allowed for a special assessment with super-priority lien status (bill failed).
     
  • Senate Bill 144: Would have eliminated a homeowner association’s super-priority lien rights (bill failed).
     
  • Senate Bill 260: Revises provisions related to internet privacy. This bill was signed by the Governor with the exemption included that was negotiated in 2019, which excludes credit unions and other financial institutions regulated by the Gramm-Leach-Bliley Act.

 
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REGULATORY VICTORIES
  • National Credit Union Administration (NCUA): Won a removal of the prohibition on the capitalization of interest in connection with loan workouts and modifications; won an updated derivatives rule which provides flexibility for federal credit unions to manage their interest rate risk; and pushed to have an interim final rule issued regarding prompt corrective action (PCA) to help ensure that federally insured credit unions remain operational and liquid during the pandemic.
     
  • Consumer Financial Protection Bureau (CFPB): Improved the international remittance rules (increasing the safe-harbor threshold to 500, allowing continued use of estimates); increased the Home Mortgage Disclosure Act reporting thresholds (for closed-end mortgages from 25 to 100, and for HELOCS from 25 to 200 after expiration of the current temporary threshold of 500 on Jan. 1, 2022); ensured debt collection rulemaking is limited to third-party debt collectors; ensured revocation of the payday lending rule’s underwriting requirements; and made sure that overdraft rulemaking efforts remain on the bureau’s inactive calendar.
     
  • Federal Reserve Board (FRB): After years of advocacy work and credit union frustration with the transaction limits under Regulation D, the FRB’s six per-month limit on convenient transfers from savings deposits was rescinded.
     
  • California Consumer Privacy Act (CCPA)/California Privacy Rights Act (CPRA) (CCPA/CPRA): The League continues to fully engage in addressing preliminary rulemaking activities in connection with the administration and enforcement of the CCPA/CPRA, providing member credit unions with a summary and a full analysis of the proposed regulations; ensuring credit unions are represented with the newly established California Privacy Protection Agency (CPPA); and submitting a comprehensive comment letter to help mitigate the compliance burden.
     
  • Meetings with regulators: Hosted exclusive meetings with regulators and League members, including NCUA Board Chairman Todd Harper, NCUA Board Vice Chairman Kyle Hauptman, and Federal Housing Finance Agency (FHFA) Acting Director Sandra Thompson. The Leagues also met with NCUA Western Region Director Cherie Freed regarding examination and regional issues.
     
  • Urging all regulators to: Consider the burden regulations have on credit unions and consumers; eliminate antiquated and inconsistent requirements; provide exemptions where appropriate; curb future requirements; and scrutinize proposals to ensure any changes have minimal adverse impacts on credit union members.
     
  • Advocating at the NCUA for: Minimizing the impact of FASB’s Current Expected Credit Loss (CECL) accounting standard by urging the NCUA to have a proactive and collaborative strategy with industry stakeholders to better ensure credit unions are prepared for this major change as the 2023 effective date approaches. Additionally, returning the National Credit Union Share Insurance Fund’s (NCUSIF) normal operating level to 1.30 percent.
     
  • Advocating at the CFPB for: Tailored regulations and greater use of the bureau’s exemption authority; improved collaboration and relationship with the NCUA; development of strong PACE (Property Assessed Clean Energy) loan regulations; improved mortgage origination rules; and expanding the “alternative loans” exemption in the payday lending rule to exempt all NCUA Payday Alternative Loan programs.
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PAC ACCOMPLISHMENTS

California Wins 

  • The California Credit Union League PAC (Political Action Committee) raised more than $450,000 toward state candidates and over $150,546 toward the Credit Union Legislative Action Council (CULAC) for federal candidates through individual giving during the GAC Sweepstakes, June CULAC Challenge, ongoing payroll deduction programs, and one-time donations during REACH 2021. California continued to take first place in fundraising during the GAC Sweepstakes. The League’s PAC has interviewed nine state and federal candidates, attended 19 fundraisers, and hosted 11 in-person and virtual state and federal district meetings, fundraisers and/or check presentations. Over $120,000 for Gov. Gavin Newsom was raised, over $30,000 for U.S. Sen. Alex Padilla, and more than $55,000 for multiple members on the California Assembly Banking Committee (Chair Grayson, Vice Chari Chen, Garcia, and Petrie Norris). The Multi-Chapter PAC Golf Tournament experienced a record-breaking year, raising over $100,000 toward our state PAC. 

Nevada Successes

  • The Nevada Credit Union League raised $45,000 for the Political Administration Fund; $62,000 for the Political Action Committee; and $7,747 for CULAC in individual giving and payroll deduction.
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GRASSROOTS MOMENTUM

California in Action

  • More than 77,000 letters sent to Congress from California credit union advocates opposing the proposed Internal Revenue Service (IRS) reporting provision that was originally included in H.R. 5376, the Build Back Better Act. This would have required financial institutions to turn over personal consumer account data to the IRS. When the California Credit Union League and CUNA activated this major grassroots campaign, California credit unions stepped up. Numerous credit unions pushed the action alert to their staff and membership — and in return, the League saw a huge increase in engagement during this campaign as 78 percent of California participants were new senders.
     
  • More than 4,500 letters sent to the California State Assembly opposing Assembly Bill 1177 (Santiago), the California Public Banking Option Act. To coincide with the lobbying efforts, the League activated a grassroots strategy to combat the proposal. Credit union advocates organized meetings with banking committee members and made direct calls to their capitol offices to relay opposition to the bill. Credit unions achieved a great victory by securing amendments to require a study of the California Public Banking Option Act that must return to the legislature before any program can be implemented.
     
  • Senate District 10 Candidate Forum: With the upcoming vacancy in California State Senate District 10, the League hosted a virtual candidate forum with local credit unions that serve members in the district to vet two prominent candidates — the Mayor of Fremont and a City Councilmember of Hayward.
     
  • Volunteer Leadership: The unique structure of credit unions as not-for-profit, member-owner financial cooperatives with volunteer boards of directors has proven to be a valuable perspective in credit union advocacy. The League’s Volunteer Leadership Committee continues to grow, with 76 volunteers dedicated to advocating for their credit unions. Credit union volunteers attended virtual federal and state lobbying events, gathered for breakfast during the 2021 REACH conference, participated in Connect for the Cause, and contributed to PAC.

Nevada on the Move

  • Nevada credit unions have 1,559 advocates subscribed to Connect for the Cause action alerts, including credit union employees and members. When the Nevada Credit Union League and CUNA activated a major grassroots campaign this year, Nevada credit unions stepped up. More than 2,700 letters were sent to Congress from Nevada credit union advocates opposing the proposed IRS reporting provision that was originally included in H.R. 5376, the Build Back Better Act. This would have required financial institutions to turn over personal consumer account data to the IRS. Numerous credit unions pushed the action alert to their staff and membership — and in return, the League saw a huge increase in engagement during this campaign as 94 percent of Nevada participants were new senders.
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