State & Federal Legislative and Regulatory Updates to Note

Professional taking notes

While the California State Legislature’s bill introduction deadline is Feb. 18, the California Credit Union League will have a better idea on what to expect in the coming year by this date.

California Legislature Updates
Meanwhile, a proposed single-payer health care bill (and a state constitutional amendment addressing its funding mechanism) is pending a vote on the Assembly Floor. In conjunction, a proposed payroll tax on employers would impact credit unions. The League has signed on to a Cal Chamber coalition letter in opposition to this proposal and will keep credit unions posted on the latest updates.

Additionally, a COVID-19 paid-leave supplemental bill framework was announced this week, and there have also been rumors regarding a potential state-level bill mimicking the federal Community Reinvestment Act (CRA). Nothing is concrete right now as there is no bill language yet. The League will keep credit unions posted with updates.

Lastly, the Assembly Banking and Finance Committee and the Assembly Housing and Community Development Committee are holding a joint hearing regarding Accessory Dwelling Units (ADUs) financing on Feb. 7 at 9:30 a.m. (Pacific). It’s a great opportunity for credit unions to listen-in and hear San Mateo CU share its story as a panelist. Email Robert Wilson and Emily Udell for more information.

California DFPI's Credit Union Regulations
The state’s Department of Financial Protection and Innovation has finalized amendments to its regulations for credit unions, including permissible investments for state-chartered credit unions, technical changes, and other modifications. Read more here.

CUNA's Governmental Affairs Conference (Feb. 27 – March 3)
The Capitol Hill vicinity in Washington, D.C. is still operating under visitor restrictions due to public health conditions and security issues. Click here for the Leagues' latest update on GAC regulatory meetings, congressional office visits, political activities, hotel information, and additional California and Nevada Credit Union Leagues items to note during this annual Credit Union National Association political event.

Those registered for GAC should save the date for the Leagues' legislative briefing on Feb. 16 at 1 p.m. (Pacific). They will receive a Zoom teleconference invitation and also be provided a legislative and regulatory background information package before that meeting.

The Leagues will likely have nearly a dozen in-person meetings scheduled with members of Congress, while all others will take place in a virtual/online format (mostly the week before GAC). Please email Jeremy Empol if you are attending GAC and would like to participate in an onsite and/or virtual congressional visit. (For board members and others who were registered by an executive assistant, please make sure CUNA’s emails are being directly forwarded to those registrants. There are important check-in procedures continually being updated by CUNA.)

Yesterday’s NCUA Board Meeting
The National Credit Union Administration (NCUA) board held its first open meeting of 2022 and approved a proposed rule on succession planning. Additionally, the board was briefed on the agency's 2022 supervisory priorities and the status of the Central Liquidity Facility (CLF) following the statutory expiration of its enhanced authority. Read more here.

NCUA's Diversity Self-Assessment
The Leagues encourage your credit union to participate in the NCUA’s 2021 Credit Union Diversity Self-Assessment. The submission deadline has been extended to Jan. 31, 2022. After that date, the self-assessment portal will remain open, but submissions will become part of the 2022 data set. Read the Letter to Credit Unions 22-CU-01 for more information.

Consumer Financial Protection Bureau's RFI on Fees
The CFPB has issued a request for information (RFI) on fees imposed by financial services providers, essentially seeking public input on bank account, credit card, and other product fees (“junk fees”). The bureau’s efforts will be used to craft rules on supervision and enforcement resources. The Leagues are keeping an eye on this.

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