*
A House-Senate bill which would make it harder for the government to seize the assets of someone arrested for criminal activity obtained final passage April 11-and was hailed by supporters, CUNA and NAFCU.
The Civil Asset Forfeiture Reform Bill (H.R. 1658) shifts the burden of proof in civil asset seizure cases from the individual to the government which must now prove with "clear and convincing" evidence that the property was used in a criminal act.
Under the old law-passed in the thrall of drug cartel suppression efforts-the government could seize the assets of suspects who had not even been arrested, and withhold it until defendants proved the property was not linked to the commission of a crime.
Credit unions opposed this because of the difficulty of recovering collateral seized during criminal investigations.
"This legislation properly shifts the burden of proof in asset seizure cases to the government," said CUNA President Dan Mica, "and creates a more balanced, rational, and fair system which credit unions that have been involved in this process told us was badly needed."
"NAFCU is delighted that the House has passed the Civil Asset Forfeiture Reform Act," stated NAFCU President Fred Becker, Jr.. "The bill changes the burden of proof in forfeiture cases to require the government to prove, by a clear preponderance of the evidence, that the property targeted for seizure was connected to a crime....We expect the legislation to be on the president's desk in short order."
*
In another Hill development undoubtedly hailed by community bankers as a further leveling of the "playing field" with CUs, the House passed H.R. 4067 which would permit them to pay interest on business checking accounts.
Small community banks have charged that the current law-which prohibits business checking account interest payments-puts them at a competitive disadvantage with larger banks, which can accomplish the same end through more expensive "sweep" accounts.
In order to promote passage of the bill, America's Community Bankers (ACB) agreed to a provision that would make the interest ban repeal effective three years after law enactment, but which would permit banks to make-on an interim basis-24 funds transfers a month between business checking and interest-bearing accounts.
A companion bill in the Senate (S. 576) that would permit business checking account interest payments as of January 1, 2001 awaits consideration.
Credit unions can already pay dividends on their business checking accounts.
*
A parliamentary fix seems to be in the works for reconciliation of House and Senate versions of the bankruptcy reform bill, stalled over controversial national minimum wage and business tax cut riders in the Senate (S. 625) version.
At press time, an informal-and confidential-Senate compromise over the two stumbling blocks had been delivered to the House Judiciary Committee, but the "informal," 10-person conference committee proposed by Speaker-of-the-House Dennis Hastert (R-Ill.) to duplicate the Senate's work-around still lacked the appointment of five Democrats.
House Minority Leader Richard Gephardt (D-Mo.) reportedly has resisted doing so because he is skeptical of the whole "informal" conference committee process.
Bankruptcy reform passed in the Senate on February 2 by a vote of 83-14-1 and in the House (H.R. 833) on May 5 by a 313-108 vote. Only the House version-because of its reaffirmation protections for CUs-is fully acceptable to the CU community. -
gmcorrigan@mindspring.com
