2010 Legislative Initiatives
Congress has entered into the second session of the 111th Congress. Be sure to check back for regular updates on these important pieces of legislation. To show your credit union support on these important credit union issues visit Connect for the Cause.

2010 Credit Union Congressional Legislative Issues

• H.R. 4173, the Wall Street Reform and Consumer Protection Act
• H.R. 3380 & S. 2919, the Small Business Lending Enhancement Act
• H.R. 2695 & S.1212, the Credit Card Fair Fee Act
• H.R. 3904 & S. 1799, the Overdraft Protection Act

H.R. 4173, the Wall Street Reform and Consumer Protection Act
The House passed H.R. 4173, the Wall Street Reform and Consumer Protection Act that incorporated the creation of the Consumer Financial Protection Agency (CFPA) and a financial stability oversight council on December 12. The bill has been referred to the Senate for their consideration. The bill would:

Create a new consumer protection agency and applies their regulatory authority to credit unions with more than $10 billion.

Directs the FDIC to assess financial companies, including credit unions, to provide the initial funding for the Stabilization Resolution Fund. The League opposed efforts for credit unions to be included in bailing out systemically risky financial institutions. Rep. Sherman was able to raise the asset threshold from $10 billion to $50 billion.

The Senate will consider a regulatory restructuring bill this year. Chairman Chris Dodd (D-CT) of the Banking Committee appointed bi-partisan pairs of Senators to work on the various regulatory restructuring issues, including systemic risk, derivatives, insurance and the CFPA. Anticipate action this winter-spring.

H.R. 3380 & S. 2919, the Small Business Lending Enhancement Act
Representatives Paul Kanjorski (D-PA) and Ed Royce (R-CA) introduced H.R. 3380 in the summer of 2009. In late 2009, Senator Mark Udall (D-CO) was joined by 6 Senators including California Senator Barbara Boxer in introducing S. 2919. These bills specifically:

Raise the arbitrary member business-lending cap for credit unions from 12.25% to 25% of assets;

Raise the amount exempted from the cap from $50,000 to $250,000.

This remains a top priority for us as it has been estimated that credit unions could free up as much as $10 billion in lending creating 108,000 jobs in the first year of enactment.

H.R. 2695 & S.1212, the Credit Card Fair Fee Act
Merchants led by large retailers continue to pursue legislation to reduce the interchange transaction fee. Credit unions rely upon interchange to offer debit and credit cards to their members.  Retailers and merchants assert that interchange is “just another bank fee.”  Transaction fees not only cover the cost for smaller credit unions to offer credit and debit cards, but also the data security costs associated. Credit unions remain opposed to these bills.

H.R. 3904 & S. 1799, the Overdraft Protection Act
This legislation was introduced both in the House and Senate. Reps. Carolyn Maloney (D-NY) and Barney Frank (D-MA), Chairman of the House Financial Services Committee, have taken the lead in the House. Sen. Chris Dodd (D-CT), Chairman of the Senate Banking Committee, authored legislation in the Senate. 
This legislation would limit fees on overdraft protection products to a requirement of no more than 1 per month/6 year.

This passage of legislation on this issue is very likely. Please check back regularly for updates.