The Risk-Based Capital Study Act, H.R. 2769, passed the HouseFinancial Services Committee Wednesday afternoon by a vote of50-9.

The bill would require the NCUA to review its risk-based capital rule and report back to Congress the impactthe rule would have on credit unions and their members. It wouldalso require the NCUA to conduct additional research regardingwhether or not it has the legal authority to finalize and enforceRBC2.

NCUA Chairman Debbie Matz said the agency does have legalauthority to implement the Basel-like capital requirements, andin January released a legal opinionfrom Washington-based firm Paul Hastings LLP supporting thatposition. Board Member Mark McWatters called that opinion very weak and said he would vote againstfinalizing the rule.

The so-called stop and study bill cleared committee following a highlypartisan, 90-minute debate in which members of Congress arguedabout Export-Import Bank reauthorization, Obamacare, a possiblegovernment shutdown and even Planned Parenthood.

Rep. Dennis Heck (D-Wash.), one of the original sponsors of thebill, took the mark-up off track when he proposed an amendment thatwould reauthorize the Export-Import Bank. Committee Chairman JebHensarling (R-Texas) declared the amendment to be not germane tothe underlying legislation and the amendment was tabled by a 28-23vote.

Support of the stop and study bill was mostly partisan, withRepublicans generally supporting it and Democrats inopposition.

Rep. Scott Garrett (R-N.J.) noted the bill addressed the harmthat may be occurring to the American people as a result of actionsby the NCUA.

Committee Ranking Member Maxine Waters (D-Calif.) said sheopposed the bill.

“When we have regulators who are willing to take theresponsibility to make sure they're dealing with the risk in theiragency, we should be supportive,” she said. “I'll ask members tooppose this bill because it interferes with our regulators' abilityto do what we've asked them to do, implement Dodd-Frank and preventanother financial crisis.”

NAFCU, which has strongly supported the legislation, was pleasedwith the bill's progress.

“We appreciate Chairman Jeb Hensarling's leadership efforts toadvance regulatory relief for community financial institutions,including credit unions,” NAFCU Vice President of Legislative Affairs Brad Thaler said.“The vote today is a step in the right direction to protect creditunions from the unnecessary and costly consequences of NCUA'ssecond risk-based capital proposal.”

H.R. 2769 was introduced by Reps. Heck, Stephen Fincher(R-Tenn.) and Bill Posey (R-Fla.).

Other bills passed by the committee include H.R. 1266, whichwould remove the CFPB from within the Federal Reserve system andre-establish it as a stand-alone agency governed by a five-member,bipartisan commission, and H.R. 957, which would create anindependent Inspector General for the CFPB who is nominated by thepresident and confirmed by the Senate.