Monday, August 3, 2009
Federal Update
The Senate is in Washington this week to wrap up business before recessing for the August District Work Period. Among the items on the Senate agenda this week are the Agriculture Appropriations Bill, additional funding for the "cash for clunkers" program, a vote of the nomination of Sonya Sotomayor to be an associate justice of the United States Supreme Court, and possibly consideration of the nomination of Debbie Matz to be a member of the National Credit Union Administration Board.
The House of Representatives is not in session this week, having recessed on Friday until September 8th.
We will be following several committee hearings this week, in Washington and elsewhere. On Tuesday, the Senate Banking Committee will hold a hearing entitled, "Strengthening and Streamlining Prudential Banking Supervision." Also on Tuesday, the House Small Business Committee Subcommittee on Finance and Tax will hold a hearing entitled, "Exploring Ways for Small Businesses to Access Capital." This hearing will take place in Salem, Oregon. Rick Hein, President and CEO of OSU Federal Credit Union in Corvallis, Oregon, will testify on behalf of the Credit Union Association of Oregon. On Wednesday, the Senate Banking Committee will hold a hearing entitled, "Examining Proposals to Enhance the Regulation of Credit Rating Agencies."
Tuesday, July 21, 2009
Federal Update
As you know, your Association and CUNA has been very focused on the various proposals to create a Consumer Financial Protection Agency. Earlier this month, House Financial Services Committee Chairman Barney Frank announced an aggressive timeline for getting a bill through his committee by the end of July. This morning, the Chairman announced that the Committee would not consider this legislation until Congress returns from the August recess. CUNA continues to discuss this legislation with lawmakers on both sides of the Capitol. For your reference, a copy of the letter CUNA sent to the members of the Financial Services Committee regarding this legislation can be found here:http://www.cuna.org/download/congress_letter_071409.pdf..
Congress is moving full steam ahead toward the August recess. The House will be in session at least this week and next; the Senate has three more weeks in session before the traditional summer break.
The Senate returned yesterday to resume consideration of the Defense Authorization Bill. The House is also in session to consider several bills under suspension of the rules before turning later this week to consider H.R. 2920, the Statutory Pay-As-You-Go Act, and then the Transportation/HUD Appropriations Act and the Labor-HHS-Education Appropriations Act. It is also possible that the House will consider a Food Safety bill before the week ends.
On Wednesday, the Senate Banking Committee will hold a confirmation hearing on the nomination of Debbie Matz to be a member of the National Credit Union Administration Board. Ms. Matz will be the only witness at this hearing. This hearing will take place at 3:00pm and will be webcast on the Senate Banking Committee website. If confirmed by the Senate, Ms. Matz would be designated Chairman of the NCUA Board by the President.
In addition to this hearing, we are following several other hearings and mark-ups on both sides of the Capitol.
On Tuesday, the House Education and Labor Committee will mark-up H.R. 3221, the Student Aid and Fiscal Responsibility Act. Also on Tuesday, the House Financial Services Committee will hold a hearing on the "Semiannual Monetary Policy Report to Congress." Federal Reserve Board Chairman Bernake will testify. On Tuesday afternoon, the House Financial Services Committee will hold a hearing entitled, "Systemic Risk: Are Some Institutions Too Big to Fail and If So, What Should We Do About It?"
On Wednesday morning, the Senate Banking Committee will hold a hearing on the "Semiannual Monetary Policy Report to Congress." Federal Reserve Board Chairman Bernake will testify. Also on Wednesday, the House Financial Services Committee will hold the first day of hearings entitled, "Regulatory Perspectives on the Obama Administration's Financial Regulatory Reform Proposals." SEC Chairman Mary Shapiro and CFTC Chairman Gary Gensler will testify.
On Thursday, the Senate Banking Committee will hold a hearing on systemic risk regulation. FDIC Chairman Sheila Bair, SEC Chairman Mary Shapiro, and Federal Reserve Board Governor Daniel Tarullo will testify. Also on Thursday, the Senate Judiciary Committee will hold a hearing entitled, "The Worsening Foreclosure Crisis: Is It Time to Consider Bankruptcy Reform?" Witnesses for this hearing have not been announced. Finally, on Thursday, the House Financial Services Committee has announced it may meet to consider pending business. No agenda has been announced; however, the Committee may begin to mark-up the Consumer Financial Protection Agency Act.
On Friday, the House Financial Services Committee will hold the second day of hearings entitled, "Regulatory Perspectives on the Obama Administration's Financial Regulatory Reform Proposals." Witnesses for this hearing have not yet been announced
Thursday, July 9, 2009
Federal Update
First, the Senate Appropriations Committee Subcommittee on Financial Services and General Government approved its appropriations bill yesterday. As you know, Senator Durbin chairs that subcommittee and there was speculation that he might attempt to add interchange fee language to the bill. No amendment was offered, and the bill was approved with no interchange language. Given the nature of the appropriations process, we will still have to watch it carefully going forward, but the scope of opportunity for further action by Senator Durbin on that front is more restricted than it was.
Second, last night, House Financial Services Committee Chairman Barney Frank introduced legislation, H.R. 3126, to authorize a new Consumer Financial Protection Agency, to regulate consumer financial products and have authority over credit unions and others institutions on the regulation and enforcement of consumer protection laws. The bill is 229 pages and CUNA staff is reviewing it now. We will have a summary of the bill available later today. We will be briefing CUNA's Governmental Affairs Committee and CUNA leadership on Friday on the latest developments regarding the proposed agency in light of the new legislation. And, CUNA has been asked to brief the Democratic members of Chairman Frank's Committee regarding our views on the agency and legislation on Tuesday. We will continue to keep you posted as developments unfold on this
Finally, CUNA testified before the Senate Banking Committee Subcommittee on Financial Institutions yesterday. Frank Michael, President and CEO of Allied Credit Union in Stockton, California, did a fantastic job of addressing the effects of the economic crisis on credit unions in rural areas, and the appearance gave us the opportunity to raise several issues of importance to credit unions including the need for legislation eliminating the member business lending cap. A copy of our written testimony, which also addresses the open end lending issues stemming from the recently enacted CARD Act, is available on the CUNA Legislative Affairs Website.
FEDERAL RECAP.
Here is a recap on what has taken place relevant to credit unions during the previous Washington Work Period. Word and PDF versions of this document are available on the CUNA Legislative Affairs website: http://www.cuna.org/gov_affairs/index.html.
Monday, June 1, 2009
Federal Update
The House and the Senate are back this week to begin a four week Washington work period. During this work period, we expect Congress to make headway on appropriations bills, health care reform, and energy legislation. We do not expect significant financial services legislation on the floor during this work period.
The House returns tomorrow and will consider several bill under suspension of the rules. On Wednesday, the House will consider additional bills under suspension of the rules before considering H.R. 31, the Lumbee Recognition Act, H.R. 1385, the Thomasina E. Jordan Indian Tribes of Virginia Federal Recognition Act, H.R. 2200, the Transportation Security Administration Authorization Act and H.R. 626, the Federal Employees Paid Paternal Leave Act. The House may also consider the conference report to accompany H.R. 2346, the Supplemental Appropriations Act, if conferees complete their deliberations before the end of the week.
The Senate convenes today and will consider S. 146, the Railroad Antitrust Enforcement Act. The Senate is also expected to consider the nomination of Regina McCarthy to be assistant administrator of the Environmental Protection Agency and perhaps the conference report on the supplemental appropriations bill, if it becomes available.
We are following several committee meetings on both sides of the Capitol.
On Wednesday, the House Budget Committee will hold a hearing on "Challenges Facing the Economy: The View of the Federal Reserve." Federal Reserve Committee Chairman Bernake will testify. Also on Wednesday, the House Financial Services Committee Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises will hold a hearing on "The Present Conditions and Future Status of Fannie Mae and Freddie Mac." Also on Wednesday, the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on "Remittances: Regulation and Disclosure in the New Environment." CUNA may submit a statement for the record of this hearing.
On Thursday, the Senate Banking Committee will hold a confirmation hearing on Herbert Allison to be assistant secretary for financial stability and administrator of the Troubled Asset Relief Program.
Beginning next week, and continuing through the summer, we expect a number of hearings on regulatory restructurings. In fact, the House Financial Services Committee may have as many as four hearings on issues related to regulatory restructuring this. Expect the Senate Banking Committee to have hearings as well.
This Week at the State Capitol
The Process
The legislature finally adjourned! Not without some troubles though. It seems that because of a lack of adjournment on Friday, May 22, they returned last week to finalize their session. The end of this session however is not the end of the legislature. This is the 52nd legislature -- each legislature lasts two years. We simply completed the first session of the 52nd Legislature. What this means to us is that ANY bill that was NOT heard this session will become active when we arrive at that period of time during next year's session. If the bill was a Senate bill and held up in House committee, then the bill can be brought back up during the period of time house committees are hearing senate bills.
We started with over 3000 bills and almost half are dormant. This means that next year when they file another 3000 new bills we will track those, as well as the 1500 that are dormant. The second session of any legislature is much more confusing than the first!
The Politics
This interim, and all those to follow, will be heavy fundraising times. In the past the off year (the year where elections were not being held) was a time for everyone to save a little money, travel to national conferences and do more interim studies and task forces. However, now that legislators are restricted from raising money during session (Feb-May), they are needing to raise much more during every interim. These members feel pressure to make sure they return to session next year with healthy war chests in order to show others they are strong and an attempt to unseat them would be difficult. There seems to be a new trend to announce as early as possible.
So far we see some races really stacking up. Here is what we are seeing:
Gov: d-Askins, d-Edmondson, r-Fallin, r-Brogdon
Lt Gov: d-Corn, d-Carey, r-Lamb, r-Schwartz
Congress #1: r-Mike Thompson, r-Kevin Calvey
There are several other races obviously, but those incumbents have not yet disclosed their intentions.
The key race people are watching is the US Senate seat held by Tom Coburn. He announced his intention to run so it is doubtful you will see any big names throwing their hat in. It will surely be an exciting year.
We will be developing a more detailed list of what is happening as we hear more.
The Program:
Your Advocacy Team will be meeting this month to develop our interim plan. We are looking specifically at what happened this year and how to make sure we are ready for next year. We are reviewing which legislators we opposed, and which legislators were supportive. We are also identifying which legislators we do not have relationships with regarding our issues. We are tracking all Task Forces and Interim studies as well. We will put together a plan that helps keep our issues in front of those members who will be decision makers next session.
We firmly believe that we are only as good during session as we are during the interim. By nature many will feel like we can relax until late fall, but that would be a mistake. We know that our actions during the next eight months are critical in developing and maintaining the presence we want at the state capitol.