Stay up-to-date and get involved with federal and state issues affecting credit unions
Federal Legislative Issues
Recent high-profile data breaches exposed shortcomings with federal merchant data security standards, which are less stringent than privacy protection requirements for financial institutions.Despite the problems arising from the lack of adequate standards on merchants, the costs of data breaches largely fell on financial institutions.
Thus in the case of credit unions, members pay. According to figures from CUNA, the Target data breach cost credit unions across the nation $30.7 million. While the Home Depot breach cost credit unions $57.4 million. With millions of cards reissued in both cases. Check the links below for more information and to get involved.
Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2018
Sen. Gardner has filed his Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2018 as an Amendment to the criminal justice reform bill currently being debated on the floor of the U.S. Senate. Attached is a letter of support for the amendment from CUNA.
You may recall that this bill exempts states that have legalized marijuana from the Federal Controlled Substances Act, which would provide certainty to financial institutions to provide services to marijuana-related businesses. Also attached is the letter MWCUA sent in June with the Maine League supporting the legislation.
Credit Union Tax Status
The federal tax exemption was granted to credit unions because of their not-for-profit cooperative structure. In talks of balancing the federal budget and comprehensive tax reform, banks have again proposed eliminating the exemption. The materials below explain why the exemption was granted/should be preserved and the benefits conferred on consumers because of credit union’s structure.
Removing Regulatory Barriers
Credit unions face a crisis of creeping complexity with respect to regulatory burden. Every dollar a credit union spends on complying with regulation is a dollar not used for the benefit of its members. Most of the costs of compliance do not vary by size, and therefore proportionately are a much greater burden for smaller as opposed to larger institutions.
NCUA’s Risk Based Capital Proposed Rule (RBC2)
The NCUA recently reissued its risk based capital proposed rule. We ask that Congress consider the new proposal and giving credit unions access to supplemental capital to meet the new risk-based capital requirements.
State Legislative Issues
Check back for more information on state legislative issues in 2018.