The House Financial Services Committee advanced H.R. 6889 this week (the Credit Union Board Modernization Act), which provides federal credit unions with flexibility for scheduling their board meetings.

"The bill was an excellent example of bipartisanship advancing by a voice vote," said Jeremy Empol, senior vice president of federal government affairs for the California and Nevada Credit Union Leagues.

H.R. 6889 allows strong performing and well-managed federal credit unions the ability to move board meetings to six per-year. De Novo credit unions (those in their first five years of existence), as well as those that cannot meet CAMELS score requirements (Capital Adequacy / Asset Quality / Management / Earnings / Liquidity Risk / Sensitivity to Market Risk), are not eligible.

The debate was very swift, as there is mass consensus on this issue, including 90 evenly split bipartisan co-sponsors.

The bill, authored by Rep. Juan Vargas (D-Chula Vista, CA), has been centered on a coalition that began with the Leagues. Of the congressional delegations from California and Nevada, four of four (100 percent) within the Nevada delegation are listed as cosponsors, and 30 of 53 (56 percent) from the California delegation have co-sponsored (or authored in Vargas' case). The bill is likely to move out of the full House in early September.

The post-partisan consensus continues in the Senate, with the companion bill (S. 4325) being co-sponsored by 10 senators, including Sens. Dianne Feinstein (D-CA) and Alex Padilla (D-CA).

"We are grateful for the leadership of Mr. Vargas, a strong credit union ally on the House Financial Services Committee," Empol said.

'Overdraft Protection Act' Update
The committee is also considering H.R. 4277, the Overdraft Protection Act, which would create a regulatory framework around overdraft protection products. However, the prospects of this overdraft bill are mixed as consensus is lacking.

California Update

• The California State Legislature reconvenes this Monday (Aug. 1) in a dash to move bills from the assembly and senate floors to Gov. Gavin Newsom for signature. The California Credit Union League is working on Senate Bill 1323 (forced sale of foreclosure within the non-judicial process), Senate Bill 975 (economic coercion allowing cancellation of a debt), two bills that will impact GAP Waivers (Assembly Bill 2311 and Senate Bill 1311), and a handful of potential last minute budget trailer bills, such as Accessory Dwelling Unit (ADU) financing.
  
  

More from Congress

• A credit card interchange bill was introduced in the Senate, where Sen. Richard Durbin (D-IL) is the co-leader.
• The American Data Privacy and Protection Act has advanced out of a House subcommittee with strong bipartisan support.
• The House of Representatives passed a remote online notary bill.
  
  

Federal and CA State Regulatory Update

• The Consumer Financial Protection Bureau (CFPB) will reportedly be issuing guidance regarding peer-to-peer digital payment networks (such as Zelle) with a focus on payment scams.
• State-chartered credit unions in California should be receiving a voluntary survey from the California Department of Financial Protection and Innovation (DFPI) on cryptocurrency services. The League encourages credit unions to respond even if they don’t offer these services or have no plans to do so.
• The California Privacy Protection Agency (CPPA) has begun the formal rulemaking process to adopt proposed regulations implementing the Consumer Privacy Rights Act of 2020 (CPRA), a law amending and building on the California Consumer Privacy Act (CCPA). The League is preparing a comment letter.
  
  

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