WASHINGTON-Several issues important to credit unions couldreceive the signature of the president by the end of thecongressional session, while others are likely to flounder arounduntil next legislation session, according to credit unionlobbyists. With only about six weeks left to the scheduledlegislative session-no one is sure how long it will really last,but predictions go through early November-credit unions are comingdown to the wire on what can be accomplished in the legislativearena. The community has been preparing though. With NAFCU'sCongressional Caucus coming up September 21-24-NAFCU just announcedthe addition of Senate Banking Committee Member Tom Carper (D-Del.)to its growing list of lawmakers and other Beltway dignitaries toaddress the group-and about half of CUNA's 46 scheduled Hike theHills to come in September and October, there should be no lack ofcredit union information on Capitol Hill. Senate Banking CommitteeChairman Richard Shelby (R-Ala.) was expected to introduce hisversion of the Fair and Accurate Credit Transaction Act (H.R. 2622)by the end of last week, CUNA Vice President of Legislative Affairsand Senior Legislative Counsel Gary Kohn told reporters. Thislegislation has a self-imposed deadline in that the preemptions inthe Fair Credit Reporting Act are set to expire at the end of 2003.Without these provisions, credit unions and other lenders wouldhave to dredge through each state's credit report handling laws,which would increase the cost of compliance and, therefore, credit.Rumor is, Kohn said, that Shelby's bill may only have a two-yearextension on the federal preemption of credit reporting laws, whichare due to expire at the end of the year. He added that the billcould go to mark up as early as the week of September 15 and couldreach the House floor at the same time. The recent Californiaprivacy law, the toughest yet passed by a state, has also thrown awrench into H.R. 2622's progress. Senator Barbara Boxer (D-Calif.)has asked that the bill not preempt state laws or at the very leastinclude a grandfather clause. NAFCU sent a letter last week, urgingpassage of the FACT Act, as passed by the House Financial ServicesCommittee in a 61-3 vote, as soon as possible. “As you are wellaware, the Fair Credit Reporting Act (FCRA) reauthorizationprovisions included in the FACT Act are absolutely vital to thenation's credit system,” NAFCU President and CEO wrote. “Withoutpassage of H.R. 2622, credit will become both more expensive andless available. The legislation also includes important consumerprovisions that credit unions and their members support such asaccess to free credit reports, improved dispute resolutionprocesses for consumers, and additional identity theftprotections.” Both NAFCU Director of Political and LegislativeAffairs Brad Thaler and Kohn said they expect an effort to pass theVeterans' Affairs, Housing and Urban Development, and IndependentAgencies Appropriations legislation by the end of September, whichis the end of the federal government's fiscal year, but it couldtake as long as through mid-October. According to Thaler, theSenate VA-HUD subcommittee cancelled its mark up of the billshortly before deadline, but the full Appropriations Committee wasscheduled to consider the bill last Thursday afternoon. The Senateis expected to amend the bill to include $800,000 in technicalassistance grants for low-income credit unions and $700,000 inloans through the Community Development Revolving Loan Fund, hesaid. This is half-a-million less than NCUA's total request, butalso half-a-million more than the agency has received from Congressin the past for the fund. It is also $500,000 more than the Housebill, which only allots $1 million solely for the technicalassistance grants. The bill will also include an appropriation forTreasury's Community Development Financial Institutions Fund, fromwhich many community development credit unions receive grants, andthe borrowing ceiling for the Central Liquidity Facility. Finally,Thaler said he expects a conference report on H.R. 1474, the CheckTruncation Act, by the end of September. Kohn said the bill has the“highest likelihood” to become law of many of the other creditunion-supported issues. The bill is aimed at allowing banks totruncate their checks, which was a major problem after 9/11 whenairlines were grounded. Credit unions have been truncating checkssince the 1970s but the bill will allow them to do it earlier inthe process for greater cost savings. Not so Fast Other majorissues for credit unions, like bankruptcy reform and regulatoryrelief, may have to wait until next congressional session for asignature from President George W. Bush. The House may attempt tobring the Financial Services Regulatory Relief Act (H.R. 1375) tothe floor in September or early October, Kohn said. According toThaler, staff members of Financial Services Committee think theymay have reached an agreement on the provision regarding regulationof Industrial Loan Companies, which had been the final stickingpoint. Still, the Senate has yet to act and Shelby has notindicated his next move though his staff has been looking into it.Additionally, though lawmakers still express interest in reformingthe bankruptcy code, legislation to do so (H.R. 975) is currentlyfloating in limbo. Kohn gave the bill a “fifty-fifty” chance ofpassage for this year. “There's no indication yet that anything'sgoing to happen,” he admitted. “However we have had a series ofdiscussions with Senate leadership with both the Republican andDemocratic side and we do have reason to believe that there is aninterest and a willingness to try to get this thing moving. If thatis the case, then we're confident they'll find a way to get thatdone.” Individual Development Account legislation is doing aboutthe same, according to CUNA Legislative Manager Leon Peace. TheHouse Charitable Contributions bill (H.R. 7) includes an IDA-typeprovision that does not include tax credits. The Senate passed itsCARE bill (S. 476) with an IDA provision April 9 by an overwhelming95-5 vote. IDAs offer low-income households a matching savingsaccount up to $500 and gives the financial institutions holding theaccounts tax credits. Pension reform (H.R. 1776) is faring slightlybetter. If House Democrats, who were locked out of the mark upafter walking out, are not accommodated, this bill could be pushedon to next year's calendar. Following the Democrat's exit, theoriginally bi-partisan bill was quickly approved by the remainingRepublicans. While House Ways and Means Committee Chairman BillThomas (R-Calif.) is considering a second mark up of thelegislation, the staff proceeded over the August recess with formalpreparations for the bill as if it passed the committee. In arecent development, the House Financial Services Committee hasscheduled a hearing for Sept. 10 on Government Sponsored Enterpriseregulation, according to Thaler, and a hearing in the SenateBanking Committee can be expected before adjournment. At least twobills have been introduced to merge the Office of Federal HousingEnterprise Oversight with other agencies, one with the Office ofThrift Supervision and the other with the Federal Housing FinanceBoard, creating new agencies under Treasury. All this comesfollowing the discovery of questionable accounting practices atFreddie Mac. Currently, the target adjournment date set by both theHouse and Senate is Oct. 3, but observers expect the congressionalsession to continue as far out as early [email protected]