The past year saw many legislative victories for credit unions. Credit union advocates were prepared, ready and active throughout 2021 and made a big difference. Let’s look back on a few of the victories from 2021:
Interchange: The League teamed up with Bankers Association and card companies to defeat legislation for the second consecutive year that would remove state and local sales tax from calculation of interchange fees, protecting 10% of Tennessee credit unions interchange income. This issue is far from over as the Bill has been rolled to the first calendar of 2022. We will be fighting interchange again this year and need our credit union advocates ready!
C-PACE: The League was able to work to amend legislation authorizing municipal backed Commercial-PACE loans to not sit ahead of the first mortgage in lien priority. This is key for our credit unions to keep their right position in the lien priority structure.
Covid-19: The League joined forces with other business groups to help ensure limited liability to credit unions in regards to COVID-19 exposure with exception for cases of gross negligence.
In Washington, DC
IRS Reporting Provision: Credit union advocates truly showed their power late in 2021 with over 800,000 messages to Congress nationwide regarding the IRS Reporting Provision. Introduced as a way to pay for part of the Build Back Better reconciliation bill, the provision would have been a huge burden for credit unions requiring them to report on the inflows and outflows of all accounts totaling over $10,000 in a year.
NDAA Bank Lease Issue: Once again, we were able to ensure the provision to allow bank’s reduced rate leases on military bases was not included in this year’s NDAA. This issue keeps for-profit banks from receiving the same low rate leases on military bases that credit unions do, and prevents the slippery slope of giving for-profit companies reduced cost access to military bases. Defense credit unions are owned by their members, the men and women of the military, and exist to serve them. not make billions in profits like the banks.
We anticipate 2022 will be an active year and together we make the credit union difference! A great opportunity for credit union leaders to come together with both State and Federal Lawmakers, Regulators, State Leaders, and industry experts is Legislative Regulatory Forum. We hope you’ll join us January 24-25, 2022 in Nashville.