California DBO Proposal, Nevada Guidance, and More

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The California Credit Union League has shared its concerns in a letter to Governor Gavin Newsom’s office regarding the proposal within his January budget to restructure the Department of Business Oversight (DBO) into what many in financial services have described as “California’s Consumer Financial Protection Bureau” (a miniature state version of the CFPB).

The League has asked the governor to consider the impact of his proposal on credit unions throughout the state and communicated its concerns under four areas: 1) Limited opportunity for public hearings; 2) Financial services providers focused on relief efforts and economic recovery; 3) Heightened concern with UDAAP authority (unfair, deceptive or abusive acts or practices); and 4) Focus on unregulated entities.

This Week in Nevada
Nevada Governor Steve Sisolak has issued Directive 018, the state’s Phase One Reopening Plan that formalizes the reopening announcements he made last week. This directive will remain in effect through May 30 unless terminated or extended to facilitate the state’s ongoing response to the Coronavirus pandemic.
 
The governor also released industry-specific operational guidelines for businesses permitted to reopen in Phase 1, including banking and financial servicesgeneral office environments, and real estate/leasing.
 
Additionally, due to significantly decreased state revenues, Sisolak has declared a fiscal state of emergency, which is the first step needed for lawmakers to leverage funds in the state’s “Rainy Day Fund” (about $400 million). Several steps would still need to be completed by the Interim Finance Committee, secretary of state, and attorney general before this fund can be used.

IRS Stimulus Payment Update
The Internal Revenue Service has accepted bank account information until noon of last Wednesday, May 13, for people who want to receive stimulus payments by direct deposit.

Going forward, the IRS will send the money by check to the address on file, with those payments expected to arrive in late May and June according to a statement from the agency. Taxpayers can submit their information and check on the status of their payment at the IRS’s website.
 
Approximately 130 million people have already received payments worth more than $200 billion. The agency plans to send more than 150 million payments in total.

Webinar Series: ‘Common Operational Risks’
Credit unions are invited to join PolicyWorks, the Leagues’ compliance services provider and partner, for the second and third installments of an important three-part complimentary webinar series on "Pandemic: How to Mitigate 3 Common Operational Risks".

Each webinar in this series — held May 14, 18 and 21 — will focus on common topics due to the enhanced risk from COVID-19. PolicyWorks will examine three areas where credit unions are experiencing vulnerabilities: branch security risks, elder financial exploitation, and cross training.

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