Marijuana Banking and NCUA Vendor Authority Left Out of Defense Bill
Several major provisions related to credit unions were not included in the finalized FY23 defense authorization bill. Learn why.
Several other provisions related to credit unions also not included in finalized legislation.
Leaders of House and Senate committees on Tuesday agreed on a FY23 defense authorization bill that does not include several high-priority issues credit union trade groups wanted addressed in the must-pass legislation.
For instance, the bill does not include a House provision that would have provided banks and credit unions a regulatory safe harbor for serving marijuana-related businesses. Senate Democratic leaders have indicated that they want to address in separate legislation several issues dealing with marijuana. However, it is not clear whether that bill could be passed this year.
The defense agreement also does not include a House provision that would have extended the pandemic-related provisions related to the NCUA’s Central Liquidity Facility. However, Sens. Alex Padilla, D-Calif., and Kevin Cramer, R-N.D., this week introduced separate legislation, S. 5183, which would extend those provisions. Again, it is not clear whether that bill will be considered this year.
The bill further does not include a House-passed provision that would have encouraged diversity in the appraisal industry.
Provisions CU Groups Sought to Keep Out of Bill
Credit union trade groups did score victories on two contentious issues.
The defense bill does not include a provision to provide the NCUA with supervisory powers over credit union third-party vendors. NCUA board members had asked Congress to provide them with that authority, which other banking regulators hold. The House-passed defense bill did feature the provision, however it was not included in the deal announced Tuesday.
And the bill does not include controversial legislation that would have required the Federal Reserve to issue rules that would ensure banks that currently use the four-party card processing system be required to use at least one affiliated network in addition to Visa and Mastercard.
What Did Make It in the Legislation?
The bill does include a plan that would make it easier for financial institutions to employ people who have been convicted of certain criminal offenses.