CUNA announced this week that credit union charter enhancement legislation will be filed soon in Washington, D.C. This legislation will include member business lending and supplemental capital bills. In front of the bills being introduced, CUNA is already seeking congressional support now.
CUNA staff has already been in discussions with members of the Senate Banking Committee. CUNA is asking senators how the appeal of the bills could be maximized through additional tweaks, said CUNA VP of Legislative Affairs Ryan Donovan.
Both bills met banker opposition last year, but "CUNA anticipates the merits of the bills will be considered, and that those merits will win the day," Donovan said.
Rep. Ed Royce (R-Calif.) is preparing the MBL legislation, and Rep. Peter King (R-N.Y.) is readying the supplementary capital bill. Both pieces of legislation will be virtually identical to bills that were introduced last year, Donovan said. There may be some changes to portions of the supplemental capital bill that address transparency and disclosures, he said.
CUNA Senior Vice President of Political Affairs Richard Gose noted that a coalition of small business groups continue to support increasing the MBL cap for credit unions. Banker groups strongly objected to both bills last year, and CUNA pushed back, successfully opposing legislation that would have extended the Transaction Account Guarantee (TAG) for banks. Bankers have also harmed their own bills to prevent credit union legislation from moving forward. "Banks may realize that they need to abandon this scorched-earth policy if they want to get their own legislation passed through Congress," CUNA EVP of Legislative Affairs John Magill pointed out.