February 26 - March 2

Transcription

1 February 26 - March 2 CUNA GOVERNMENTAL AFFAIRS CONFERENCE 2017 League of Southeastern Credit Unions & Affiliates 2017 CUNA GAC On Site Contact Information Patrick La Pine, President/CEO, LSCU Jared Ross, SVP, Association Services patrick.lapine@lscu.coop jared.ross@lscu.coop Steve Willis, COO, LEVERAGE Jason Cochran, Sr. Director, Gov. Affairs AL steve.willis@myleverage.com jason.cochran@lscu.coop Kim Gay, Director, Communications Jennifer Martin, Director, Gov. Affairs FL kim.gay@lscu.coop jennifer.martin@lscu.coop Jordan Burroughs, Political Affairs Coordinator FL Blake Westbrook, Political Affairs Manager AL jordan.burroughs@lscu.coop blake.westbrook@lscu.coop John McKechnie, Total Spectrum jmckechnie@totalspectrumga.com Washington Convention Center 801 Mt. Vernon Place NW Washington, DC Grand Hyatt Washington Credit Union National Association 1000 H Street, NW, Washington, DC Pennsylvania Ave. NW, South Bldg. Phone: Fax: Washington, DC

2 2017 CUNA GAC SCHEDULE NOTE: All events listed are at the Washington Convention Center unless otherwise noted. LSCU specific events are in bold. Sunday, February 26, 2017 Noon - 7:30 pm Conference Registration and Welcome Center Open WCC Registration Area 1:15 pm - 2:00 pm First-time Attendee Orientation WCC 202 AB 4:00 pm - 5:00 pm Special Session: Ed (Filene) Talk, Sponsored by CUNA Councils WCC Hall E 5:00 pm 6:30 pm LSCU Welcome Reception Declaration Room, Declaration Level, Grand Hyatt Hotel 5:00 pm - 7:00 pm Exhibit Hall Grand Opening Reception WCC Hall D Monday, February 27, :30 am - 4:15 pm Conference Registration and Welcome Center Open WCC Registration Area 7:45 am - 8:45 am Exhibit Hall Open (continental breakfast) WCC Hall D 9:15 am - 11:30 am Opening General Session Jim Nussle, President/CEO, CUNA; Keynote Speaker Kat Cole, Group Pres. FOCUS Brands WCC Hall E 11:30 am - 1:15 pm Exhibit Hall Open (lunch) WCC Hall D 1:00 pm 2:30 pm General Session: CUNA Annual General Meeting Legislative/Political Briefing WCC Hall E 2:45 pm 3:45 pm Breakout Sessions WCC 6:30 pm - 9:00 pm The National Credit Union Foundation Dinner Presenting the Herb Wegner Memorial Awards (Marriott Marquis Hotel separate ticketed event) Download the League of Southeas App for exclusive CUNA GAC infor

3 Tuesday, February 28, CUNA GAC SCHEDULE 7:30 am - 4:30 pm Conference Registration and Welcome Center Open WCC Registration Area 7:45 am - 8:45 am Exhibit Hall Open - Breakfast WCC Hall D 9:00 am 11:15 am General Session Keynote: General Colin Powell, USA (Ret.) WCC Hall E 11:15 am 1:00 pm Exhibit Hall Open (lunch provided) WCC Hall D 1:15 pm 2:30 pm General Session WCC Hall E 2:30 pm 4:15 pm Exhibit Hall Open WCC Hall D 3:00 pm - 4:15 pm Breakout Sessions WWC 4:15 pm - 5:15 pm NCUA Board Member & Regional Director WWC Welcome Center 5:30 pm 6:30 pm LSCU Attendee Reception Declaration Room Declaration Level, Grand Hyatt Hotel Lawmaker of the Year Awards 8:30 pm - 10:30 pm Late Night at the GAC with Spencer Dueling Pianos (Marriott Marquis Hotel) Wednesday, March 1, 2017 Your Advantage 7:45 am - 11:30 am Conference Registration and Welcome Center Open WCC Registration Area 8:00 am 5:00 pm Capitol Hill Visits as scheduled 8:30 am- 11:00 am General Session: Bob Schieffer WCC Hall E 5:30 am 7:00 pm Maxwell/Herring/Desjardins Awards Reception (by invitation at Marriott Marquis Hotel) MM Independence A-E (ML-4) 7:00 pm - 11:00 pm Closing Reception Marriott Marquis Hotel Thursday, March 2, :00 am 12:00 pm Capitol Hill Visits Continue as scheduled (if needed) Travel Home Safely tern Credit Unions Mobile mation and advocacy materials.

4 LAWMAKERS OF THE YEAR Congressman Bradley Byrne (AL-1) Congressman Dennis Ross (FL-15) Please join the League of Southeastern Credit Unions at Tuesday night s reception honoring the 2016 Federal Lawmakers of the Year. THANK YOU TO OUR SPONSORS Your Advantage

5 CONGRESSIONAL DIRECTORY Alabama District Name Party Office PZC 1 Byrne, Bradley R 119 Cannon House Office Building 2 Roby, Martha R 442 Cannon House Office Building 3 Rogers, Mike R 2184 Rayburn House Office Building 4 Aderholt, Robert R 235 Cannon House Office Building 5 Brooks, Mo R 2400 Rayburn House Office Building 6 Palmer, Gary R 206 Cannon House Office Building 7 Sewell, Terri A. D 2201 Rayburn House Office Building SENATE Shelby, Richard R 304 Russell Senate Office Building SENATE Strange, Luther R G12 Dirksen Senate Office Building Florida District Name Party Office 1 Gaetz, Matt R 507 Cannon House Office Building 2 Dunn, Neal R 433 Cannon House Office Building 3 Yoho, Ted R 511 Cannon House Office Building 4 Rutherford, John R 230 Cannon House Office Building 5 Lawson, Al D 1337 Longworth House Office Building 6 DeSantis, Ron R 1524 Longworth House Office Building 7 Murphy, Stephanie D 1237 Longworth House Office Building 8 Posey, Bill* R 2150 Rayburn House Office Building 9 Soto, Darren D 1429 Longworth House Office Building 10 Demings, Val D 238 Cannon House Office Building 11 Webster, Daniel R 1210 Longworth House Office Building 12 Bilirakis, Gus R 2112 Rayburn House Office Building 13 Crist, Charlie D 427 Cannon House Office Building 14 Castor, Kathy D 2052 Rayburn House Office Building 15 Ross, Dennis* R 436 Cannon House Office Building 16 Buchanan, Vern R 2104 Rayburn House Office Building 17 Rooney, Tom R 2160 Rayburn House Office Building 18 Mast, Brian R 2182 Rayburn House Office Building 19 Rooney, Frances R 120 Cannon House Office Building 20 Hastings, Alcee D 2353 Rayburn House Office Building 21 Frankel, Lois D 1037 Longworth House Office Building 22 Deutch, Ted D 2447 Rayburn House Office Building 23 Wasserman Schultz, Debbie D 1114 Rayburn House Office Building 24 Wilson, Frederica D 2445 Rayburn House Office Building 25 Diaz-Balart, Mario R 440 Cannon House Office Building 26 Curbelo, Carlos R 1404 Longworth House Office Building 27 Ros-Lehtinen, Ileana R 2206 Rayburn House Office Building SENATE Nelson, Bill D 716 Hart Senate Office Building SENATE Rubio, Marco R 284 Russell Senate Office Building 139, , , , , , ,474 1,462,116 1,462, , , , , , , , , , , , , , , , ,116 66, , ,124 72,393 74, , , , ,626 96,093 4,590,137 4,590,137 * indicates members of the House Financial Services Committee, Bold indicates member of the Senate Banking Committee, indicates Member of the Ways and Means Committee Visit the LSCU app for more comprehensive staff information

6 TALKING POINTS GAC Congressional Meeting Outline As you attend meetings on Capitol Hill keep in mind every meeting will be different. Members of Congress represent a wide array of constituents and priorities. To get the most from your meeting we recommend: Be on time. Members and staff often have tight schedules. However, schedules change by the minute on the Hill, and meetings with Members of Congress can become meetings with staff. Staff-level meetings are valuable, as staff are responsible for explaining issues and vote recommendations to their bosses. Plan ahead. You will rarely get through each and every issue. However, it is important to review the materials ahead of time. More in-depth talking points are included in the GAC Materials provided to you when you checked in. Additionally, you should have received an with that information prior to your arrival. Be concise. It is very common for a Member to enter the meeting late and leave early, especially when there are votes that day. Step 1: Introduction LSCU Staff will introduce themselves, thank the member/staff member for their time and ask the group to introduce yourself, your credit union, and provide business cards to the Member and staff. Provide details about your credit union: asset size, location, members served. The member/staff member will have received Project Zip Code numbers prior to your attendance. Step 2: Explain the purpose of your visit and the items you want to discuss Let them know that there are nearly 5,000 credit union representatives attending CUNA s Governmental Affairs Conference Outline our legislative agenda: o Remove barriers to allow credit unions to fully serve their members; o Enhance merchant data security standards to prevent future data breaches; o Preserve the credit union tax status. Step 3: Issues Removing Barriers to Credit Union Service: Regulatory Burden For many Americans, credit unions are their opportunity for affordable financial services, but regulatory burden continues to provide challenges to credit unions and their members. The total financial impact of regulations on credit unions is large and has grown considerably over the past several years. Since 2010, the total financial impact of credit union regulatory burden has increased by $2.8 billion. Credit union members end up paying the price for regulatory burden. o $6.1 Billion in regulatory costs; $1.1 Billion in lost revenue o Alabama: $89.9 Million in regulatory costs; $19.5 Million in lost revenue o Florida: $216.7 Million in regulatory costs; $52.2 Million in lost revenue ASK: Congress should pass legislation that modernizes the CFPB and incentivizes common-sense regulation.

7 TALKING POINTS Common Sense Steps to Addressing Regulatory Burden CFPB Structural Reform: CFPB structural reform is necessary to ensure consumers continue to have access to local credit unions and small banks: One-size-fits-all regulation does not work for main street local credit unions, small banks and the consumers and small businesses they serve. It s created a rigged system favoring the largest institutions who can afford to comply with Washington. Over regulation is hurting consumers, costing them time and money. Local member-owned credit unions know their members better than Washington. Now is the time to reform the CFPB so that it works for credit union members. CFPB Five-Person Commission: The current structure with one powerful director gives too much authority to one person and not enough oversight and accountability. Modernizing the CFPB to include a multi-member Commission would enhance consumer protection by ensuring that diverse perspectives are included in final rules and prevents disruptions caused by personnel changes. Credit union members will benefit from policymaking that includes more voices. This system is much more consistent with the traditions of our democracy. Consult with CFPB on Behalf of Credit Unions: Several of the rules the CFPB has finalized over the past few years have harmed credit unions ability to provide safe and affordable products and services. New mortgage rules, the rule for international remittances, proposals on small dollar lending and arbitration, and CFPB enforcement actions that have conflicted with credit union statutory rights have harmed credit union members by forcing credit unions to eliminate product offerings and in some instances limit credit offerings to riskier borrowers. Credit union members will benefit if the CFPB makes appropriate rule changes and provides clarification to address the impact of its current rules and proposals on credit unions. Increase CFPB Supervisory Threshold: Congress should do more to ensure that the CFPB focuses on abusers of consumers. Local credit unions and small banks do not present significant risk to consumers and have federal prudential regulators capable of supervising compliance with consumer protection law. Increasing the supervisory threshold to $50 billion and indexing it for inflation will allow CFPB to focus supervisory resources on large Wall Street banks and nonbank financial services providers which present the greatest risk to consumers. Regulatory Relief: Congress should have oversight of agency rulemaking for regulations with an economic impact of $100 million or greater and should also provide protection to credit unions for good faith reporting of suspected financial elder abuse. Very well-captured credit unions should have reduced regulatory requirements. We support additional provisions aimed at providing regulatory relief including the provisions addressing the CFPB s rulemaking on arbitration, payday lending, HMDA, remittances, mortgage lending and other rules that stand between local credit unions and their members. Clarify Exemption Authority: The CFPB has statutory authority to exempt local member-owned credit unions from its rulemaking, and its failure to use this authority has harmed consumers seeking safe financial services, including remittances and mortgages, from credit unions by making these services more expensive and less available. Congress should enact legislation to clarify that credit unions are exempt from CFPB rules unless the CFPB demonstrates credit unions are causing consumer harm.

8 TALKING POINTS Address CFPB s Abuse of UDAAP Authority: Through the use of its Unfair, Deceptive and Abusive Actions and Practices (UDAAP) authority, the CFPB has failed consumers by ignoring basic tenets of the rule of law. Regulations should be clear, publicized, stable and just, but the CFPB has used this authority as a broad tool to sweep credit union into proposed regulations consistent with its ideological goals, despite no evidence of harm to consumers. In their supervisory role, they have used this authority to set expectations that conflict with longstanding guidance from prudential regulators. CFPB circumvents the will of Congress and harms consumers by creating an uncertain operating environment for credit unions serving them. Congress should repeal the CFPB s UDAAP authority. Affordable Rental Housing: The renter population in the United States is increasing, creating a considerable gap in rental supply and demand and putting affordable rental housing out of reach for many. Credit unions face statutory barriers to helping finance small rental housing because the Federal Credit Union Act treats loans for 1-4 family, non-occupied residential properties as commercial loans, but similar loans made by banks are considered residential loans. Congress should correct this disparity and encourage credit unions to help with the affordable rental housing crisis. NCUA s Independent Status Must Be Retained: Credit union member deposits fund the NCUA and the National Credit Union Share Insurance Fund (NCUSIF). A separate, independent federal regulator is essential to the safety and soundness and viability of the credit union system. Credit unions would oppose legislation that jeopardizes NCUA s independence or combines them with another regulatory body. NCUA Funding: NCUA s funding mechanism has served the agency very well throughout its history. We oppose legislation that would subject NCUA to the appropriations process. Credit union member resources should not be commingled with Treasury funds, creating a scenario where the government may collect more than is appropriated. That would be tantamount to a tax on credit unions. The NCUA is the appropriate body to determine the resources needed to keep the credit union system safe and sound. Continued Congressional Budget Oversight: Although the NCUA should not be funded by appropriations, its budget process should be open and transparent. Members of the credit union community, the providers of NCUA funds, should have the ability to examine and comment on the budget before adoption. In the last few years, due to Congressional oversight and concerns of credit unions, the NCUA has made their budget process more open and transparent. We truly appreciate the NCUA listening to Congress and credit union members on this matter, so further legislation may not be needed at this time. Stop Merchant Data Breaches Credit unions cover the costs of fraud, blocking transactions, reissuing cards, increasing staffing at call centers and monitoring consumer accounts, but no one compensates the consumers for harm from the information that is lost. Merchants have been vulnerable to large and small data breaches, which costs credit unions and their members significantly and enrich criminal and other cyberterrorists. o Nearly 60% of consumers expect to be a victim of data breach at some point o In 2016, 1,093 data breaches occurred in the U.S., a 40% increase from 2015

9 TALKING POINTS Financial institutions are subject to strict data security standards under the Gramm Leach Bliley Act (GLBA). Retailers are not. o Merchant data breaches have compromised millions of American consumers personal financial information. Causing them to be at risk for identity theft and other fraud. o Retailers are not required to come forward when they are breached, but 60% of consumers would stop shopping at a retailer if they knew they suffered a breach. o More breaches occurred in 2016 by the business community than breaches in the healthcare industry and government combined. ASK: Congress should pass legislation that would impose data security standards on merchants to protect consumers and reduce criminal access to financial information. This legislation should include the following principles: o Strong National Data Protection and consumer notification standards with effective enforcement provisions are needed to ensure those with sensitive data protect the data. o Recognition of Robust Data Protection and notification standards that banks and credit unions are already subject to. o Preemption of Inconsistent State Laws and regulations in favor of strong Federal data protection and notification standards. o Ability for Credit Unions and Banks to Inform customers and members about a breach, including where it occurred. o Shared Responsibility for all those involved in the payments system for protecting consumer data. The costs of a data breach should ultimately be borne by the entity that incurs the breach. Preserve the Credit Union Tax Status Explain that the credit union tax status is good public policy. All consumers benefit from the tax status. Benefits come in the form of lower rates on loans, lower fees, higher returns on deposits and better service in the amount of $10 billion annually (source: NCUA, FDIC and CUNA data). Taxing credit unions would represent a tax increase for more than 102 million Americans. Explain that during the financial crisis, credit unions continued to lend when other lenders pulled out of the market, expanding mortgage lending and small business lending. Taxing credit unions would limit this very important source of capital when people need it most. ASK: Members of Congress should: o Tell Leadership and Ways and Means Committee (House) and Finance Committee (Senate) Members: Don t Tax My Credit Union o Make a public statement or reaffirm their support for the tax status based on structure and mission. Step 4: Conclude and Follow-up Make sure the Member and staff understand the main points, thank them for the meeting and always offer to provide any supplemental materials they may require. When appropriate, get a photo to share on social media. Follow-up with staff after the meeting to thank them again for the meeting and check the progress on the issues discussed.

10 BENEFITS OF MEMBERSHIP/REGULATORY BURDENS Alabama Credit Unions Number of Credit Unions headquartered in the state: 115 Memberships in credit unions headquartered in the state: 1,978, Alabama Credit Union Financial Benefits Benefits arise from Credit Unions providing: Higher yields on savings: Lower fees: $29.7 million $31.8 million Lower loan rates: Savings to non-members: $53.6 million $75.9 million Florida Credit Unions Total Member Benefits $137 Million Number of Credit Unions headquartered in the state: 145 Memberships in credit unions headquartered in the state: 5,339, Florida Credit Union Financial Benefits Benefits arise from Credit Unions providing: Higher yields on savings: Lower fees: $40.6 million $104.7 million Lower loan rates: Savings to non-members: $194.8 million $354.3 million Financial Impact of Regulation on US CUs ($millions) Source: CUNA s calculation using NCUA Dec call Report Data and Cornerstone Advisors, Inc. Regulatory Financial Impact Study. State Number of CU Total Member Benefits $500 Million Assests ($ bil) Members Costs Reduced Revenue Total Impact Total Impact per CU ($thous) Alabama 118 $19 1,918,583 $89 $19.5 $109.4 $927 $57 Florida 156 $49.8 4,964,794 $216.7 $52.2 $269.0 $1,724 $54 Total Impact per Member This study estimates of the total financial impact of regulation draw on detailed data from 53 credit unions nationwide. Because of this, the state-by-state estimates in the attached table are NOT based on study participants in each state. Instead, we applied the study s estimates of the ratios to assets of regulatory costs and reduced revenue for three credit union size groups (less than $115 million, $115 million to $1 billion, and over $1 billion) to the total assets in each state in these three size groupings. Data is as of 2014, the time period over which Cornerstone Advisors collected data.

11 NOTES

12 UPCOMING ADVOCACY EVENTS ALABAMA FLORIDA ADVOCACY CONFERENCE ADVOCACY CONFERENCE March in Montgomery, AL March in Tallahassee, FL Advocacy Luncheon June 15, 2017 HILL the Sept , 2017 lscu.coop southeastcuconference.com