The Government Updateis issued by the Innovative Payments Association twenty times a year as a service to members. Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA; Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP. Please address comments and suggestions to: [email protected].
IPA Podcast: The Future of Payments with the Acting Comptroller In the latest episode of the IPA Payments Pod, Brian Tate, the IPA’s CEO, and our members talk with Brian Brooks, the Acting Comptroller of the Currency. In a wide-ranging discussion, they talk about regulating during the COVID19 pandemic and beyond. Looking to the future, they discuss fintech charters, small dollar lending, and digital dollars. The Comptroller also brings up the social justice issues that the country has been facing. He describes how the OCC has launched a new effort “Project REACh,” to address structural issues that affect the ability of Americans to build wealth. You can learn more here. This is an edited version of the audio portion from the IPA’s Summer of Learning session. IPA Elevator The IPA will host its first annual Fintech Elevator on August 26. This event will bring together IPA member companies and venture capitalists to hear pitches from startups in the Fintech space. Don’t miss out on this exciting opportunity to hear from some of the most innovative emerging companies in Fintech! Participating companies include: Registration and additional information can be found here. CONSUMER FINANCIAL PROTECTION BUREAU (CFPB) PayPal Files Response to CFPB in Prepaid Rule Litigation On August 21, PayPal filed its response to the Consumer Financial Protection Bureau’s (Bureau) motion for summary judgement in the ongoing litigation over the Bureau’s Prepaid Rule (Rule). In its response, PayPal refutes the Bureau’s position and reaffirms their position digital wallets are fundamentally different from GPR cards, and that the Bureau’s regulatory approach to digital wallets cannot be reconciled with the Administrative Procedure Act’s requirement of reasoned decision making or with the cost-benefit analysis requirements in the Dodd-Frank Act. Moreover, PayPal also argues that the Bureau lacked statutory authority under EFTA, TILA, and the Dodd-Frank Act to adopt the short-form requirement and the 30-day credit linking ban. It is on these grounds that PayPal again requests that the Court vacate the Rule, declare the Rule unconstitutional as applied to PayPal, and enjoin its enforcement against PayPal. The Bureau will now have the opportunity to file a response to this filing by PayPal, which is due by September 25. CFPB Requests Information on the Impact of the CARD Act Regulations on Small Entities and the Consumer Credit Card Market On August 25, the CFPB released a request for information (RFI) to examine the impact of the rules that implement the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act Rules). According to the Bureau, it is seeking public input on the CARD Act Rules’ economic impact on small entities. The Bureau is also requesting comments from the public on how the consumer credit card market is functioning as part of a Bureau review required by the CARD Act. In reviewing the economic impact of the CARD Act Rules on small entities, the Bureau is seeking to determine whether the regulations should be continued without change or be amended or rescinded. In seeking comments on the consumer credit card market, the Bureau must conduct a review of the market every two years. The full RFI can be found here. FEDERAL RESERVE BOARD OF GOVERNORS Federal Reserve Announces Partnership with MIT on Digital Currency In a speech at the Federal Reserve Bank of San Francisco on August 13, Federal Reserve Board Governor Lael Brainard announced that, in order to enhance the Federal Reserve's (the Fed) understanding of digital currencies, the Federal Reserve Bank of Boston is partnering with researchers at the Massachusetts Institute of Technology in a multiyear effort to build and test a hypothetical central bank digital currency (CBDC). This collaboration follows in-house experiments at the Fed and collaboration with other central banks over the last few years on CBDCs. According to Governor Brainard, the objectives of research and experimentation across the Federal Reserve System are to assess the safety and efficiency of digital currency systems, to inform their understanding of private-sector arrangements, and to give them hands-on experience to understand the opportunities and limitations of possible technologies for digital forms of central bank money. These efforts are intended to ensure that the Fed fully understands the potential as well as the associated risks and possible unintended consequences that new technologies present in the payments arena. Finally, Governor Brainard emphasized that a significant policy process would be required to consider the issuance of a CBDC, along with extensive deliberations and engagement with other parts of the federal government and a broad set of other stakeholders. She further stated that the Federal Reserve has not made a decision whether to undertake a policy process to consider the issuance of a CBDC, as they are taking the time and effort to understand the significant implications of digital currencies and CBDCs around the globe. The text of Governor Brainard’s speech can be accessed here. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) States sue FDIC over 'rent-a-bank' partnerships Seven states and the District of Columbia have filed a lawsuit against the FDIC over a final rule they released earlier this year on the portability of interest rates from banks to non-bank lenders. In the lawsuit, the coalition argues that the FDIC’s final rule conflicts with the Federal Deposit Insurance Act, exceeds the FDIC’s statutory authority and violates the Administrative Procedure Act. Additionally, the lawsuit asserts that the FDIC failed to consider and address the negative effect that its final rule has on consumer financial protections by facilitating predatory lending schemes. A copy of the suit can be found here. Congressional Letter Sent to FDIC on Brokered Deposits NPR On August 14, a joint comment letter from a bipartisan group of members of the House Financial Services Committee was submitted to the FDIC regarding their Notice of Proposed Rulemaking on Brokered Deposits. The letter, which was led by Reps. Roger Williams (R-TX) and Vincente Gonzalez (D-TX), expresses concern that the “facilitation of deposits” definition is overly broad and would not incentivize partnerships between banks and innovative fintech companies. In addition, the letter calls on the FDIC to simplify the primary purpose application process. Polling Indicates No Immediate Post-Convention Bump for Biden, Still Leads Nationally Republican National Convention The Republican National Convention (RNC) is being held from Monday, August 24 – Thursday, August 27 in Charlotte, NC. President Trump is scheduled to deliver his acceptance speech for the Republican nomination for President of the United States remotely on Thursday, August 27. Additional information about the RNC can be found here. California Bill Could Impose “Strict Liability” for Payment Processors California Assembly Bill 3262 would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer. The definition of "Electronic retail marketplace” includes “…an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state…” Some have expressed concern that the inclusion of the phrase “facilitating the placement of products” in the definition of “electronic retail marketplace” could be read broadly to include payment processors and other third parties involved E-commerce transactions at electronic retail marketplaces. The IPA will track this legislation through our monthly IPA State Legislative Tracker. If you do not already receive the State Tracker and would like to, please contact Grant Hannah. New Federal Laws
None. Pending Federal Bills H.R. 189--Financial Institution Customer Protection Act of 2019 Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk. Introduced: Jan. 3, 2019 Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019. Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1 H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019 Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement. Introduced: Jan. 24, 2019 Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019. Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1 H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution. Introduced: Jan. 30, 2019 Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019. Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1 H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. Introduced: Feb. 28, 2019 Status: Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019. Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/1423 H.R. 2514—Counter Act of 2019 Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. Introduced: May 3, 2019 Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019. Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2 H.R. 2630—Cash Always Should be Honored (CASH) Act Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment. Introduced: May 9, 2019 Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019. Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/2630 H.R. 4501— Consumer Transaction Account Protection Act of 2019 Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker. Introduced: September 26, 2019 Status: The bill was referred to the House Committee on Financial Services on September 26, 2019. Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1 H.R. 4767—Financial Services Innovation Act of 2019 Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan. Introduced: Oct. 21, 2019 Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture. Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1 H.R. 6116-- Consumer Financial Protection Commission Act Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions. Introduced: March 5, 2020 Status: The bill was referred to the House Financial Services Committee. Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false H.R. 6241-- Touchless Transactions Act of 2020 Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. Introduced: March 12, 2020 Status: The bill was referred to the House Financial Services Committee. Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack). S. 142—The American Data Dissemination Act Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974. Introduced: Jan. 16. 2019 Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019. Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3 S. 149—Stop Senior Scams Act Summary: The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors. Introduced: Jan. 16, 2019 Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. Sponsor: Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2 S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019 Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties. Introduced: Jan. 17, 2019 Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019 Sponsor: Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1 S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process. Introduced: Feb. 12, 2019 Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019. Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/senate-bill/453 S. 3108— Consumer Transaction Account Protection Act of 2019 Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker. Introduced: December 19, 2020 Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019. Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2 S. 3962— Asset Growth Restriction Act of 2020 Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order. Introduced: June 15, 2020 Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020. Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9 The Government Updateis issued by the Innovative Payments Association twenty times a year as a service to members. Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA; Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP. Please address comments and suggestions to: [email protected].
IPA Day of Payments The IPA’s Day of Payments is just around the corner! Learn from industry experts on how payment products are changing the face of consumer banking. As the payments community continues to expand and financial institutions continue to partner with fintech companies, the time is now to learn more how the payments revolution can help to expand opportunities for more people into the financial services mainstream. Learn how about how different payment products work are driving online and mobile banking, and how they will have an impact on our day-to-day banking lives. If you want to have a hands-on, deep dive into the latest & greatest trends in payments? We’ll cover topics like prepaid, blockchain/cryptocurrency, digital dollar, and more! Don’t miss out! Additional information and registration can be found here. IPA Elevator The IPA will host its first annual Fintech Elevator on August 26. This event will bring together IPA member companies and venture capitalists to hear pitches from startups in the Fintech space. Don’t miss out on this exciting opportunity to hear from some of the most innovative emerging companies in Fintech! Registration and additional information can be found here. FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN) FinCEN Issues FAQs Regarding Customer Due Diligence Requirements On August 3, the Financial Crimes Enforcement Network (FinCEN) issued FAQs regarding customer due diligence requirements. According to FinCEN, these FAQs clarify the regulatory requirements related to obtaining customer information, establishing a customer risk profile, and performing ongoing monitoring of the customer relationship in order to assist covered financial institutions with their compliance obligations in these areas. The FAQs can be accessed here. FEDERAL RESERVE BANK OF ATLANTA Atlanta Fed Releases 2019 Diary of Consumer Payment Choice The Federal Reserve Bank of Atlanta has released its 2019 Diary of Consumer Payment Choice. The Diary measures payment behavior through the daily recording of U.S. consumers' spending. It includes estimates of the number, value, and average value of payments that all U.S. adult consumers made using the various U.S. payment instruments. It also includes estimates of cash held on person by denomination of currency, and it discusses changes in payment choice and cash holdings from 2018 to 2019. Some highlights from the Diary include:
HFSC Chairwoman Waters Introduces the Federal Reserve Racial and Economic Equity Act On August 5, House Financial Services Committee Chair Maxine Waters (D-CA), along with Sens. Elizabeth Warren (D-MA) and Kristen Gillibrand (D-NY), introduced the “Federal Reserve Racial and Economic Equity Act”. This legislation would require the Federal Reserve to use its existing authorities to close racial employment and wage gaps and report on how the gaps change over time. Specifically, the bill would require the U.S. central bank to carry out its functions in a way that “minimizes and eliminates racial disparities in employment, wages, wealth, and access to affordable credit”, including its regulation and supervision of banks and its operation of payments systems. Sen. Bob Menendez (D-NJ) Sends Letter Urging Negotiators to Ban Arbitration Clauses Attached to Relief Payments On August 3, Senator Bob Menendez (D-NJ), a member of both the Senate Banking and Finance Committee, led a joint letter urging lead negotiators of the next COVID-19 stimulus package to prohibit forced arbitration clauses in any form of Economic Impact Payments (EIPs). In brief, the letter argues that arbitration clauses are a bad deal for consumers and further says that opt-out clauses are inadequate as many individuals may not even be aware that arbitration clauses are in the fine print. The letter concludes, “Given that many consumers are not even aware that arbitration clauses are included in EIP debit cards, combined with the unprecedented nature of this pandemic and the need for financial aid, we believe it is improper for the federal government to allow its contractors to include such anti-consumer clauses.” It is important to note that some of the best evidence of the relative benefits of arbitration as compared to other forms of dispute resolution, such as class-action litigation, comes from the Consumer Financial Protection Bureau's 2015 Study on Arbitration. The CFPB's study notes that, as compared with class-action lawsuits, arbitration is quicker, less expensive, and generally more effective than class-action litigation. Senate Banking Committee Ranking Member Sherrod Brown (D-OH), Senate Finance Committee Ranking Member Ron Wyden (D-OR), Sen. Catherine Cortez Masto (D-NV), Sen. Elizabeth Warren (D-MA), Sen. Jack Reed (D-RI), Sen. Chris Van Hollen (D-MD) and Sen. Sheldon Whitehouse (D-RI) also signed the letter. The full letter can be found here. IPA Sends Letter to Maine Treasurer on Revised Unclaimed Property Act On August 12, the IPA sent a letter to the Treasurer of Maine regarding our concerns with provisions of the Maine Revised Unclaimed Property Act. Specifically, the IPA is concerned about the unintended consequences regarding Section 2066 of the Act which prohibits fees or charges on “stored value obligations,” except for an initial issuance fee and a fee for each reload of funds thereafter. To the extent “stored value obligations” covers open loop or reloadable prepaid cards, the IPA notes that these products had previously been explicitly exempted in another section of the Maine code. Money Transmitter Bill Passes New York Senate On July 21, SB 297, a piece of legislation that would affect money transmitters in New York passed the New York State Senate. Specifically, SB 297 requires a complex fraud warning before a money transmitter accepts money for transmission. It has exceptions for when the payment is “not transferred directly to another person and not available for immediate use” and when the payment is “made with a gift certificate …”, which includes open-loop and GPR cards. The bill has been sent to the New York State Assembly and was subsequently referred to the Assembly Banks Committee, where it sits awaiting further action. The bill text can be found here. The IPA will track this bill through our Monthly State Legislative Tracker. If you would like to sign up to receive the Tracker, please contact Grant Hannah, Director of Government Affairs, at [email protected]. IPA Election Snapshot Given that we are now less than 100 days away from the November General Election, the IPA is pleased to announce the launch of our “Election Snapshot”. This periodic update will provide a look at where things stand ahead of November. The Snapshot will consist of a high-level state-of-play (“Snapshot Summary”) as well as slides from Bloomberg Government that provide a more in-depth look. Please find the first Snapshot Summary below and the slides from Bloomberg Government here. Snapshot Summary Party Conventions: Democratic: The Democratic National Convention (DNC) will be held from Monday, August 17 – Thursday, August 20 in Milwaukee, WI. Presumptive Democratic nominee Joe Biden is scheduled to deliver his acceptance speech for the Democratic nomination for President of the United States remotely on Thursday, August 20. Additional information about the DNC can be found here. Republican: The Republican National Convention (RNC) will be held from Monday, August 24 – Thursday, August 27 in Charlotte, NC. President Trump is scheduled to deliver his acceptance speech for the Republican nomination for President of the United States remotely on Thursday, August 27. Additional information about the RNC can be found here. U.S. Senate:
U.S. House of Representatives:
Presidential Race:
New Federal Laws None. Pending Federal Bills
H.R. 189--Financial Institution Customer Protection Act of 2019 Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk. Introduced: Jan. 3, 2019 Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019. Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1 H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019 Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement. Introduced: Jan. 24, 2019 Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019. Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1 H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution. Introduced: Jan. 30, 2019 Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019. Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1 H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. Introduced: Feb. 28, 2019 Status: Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019. Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/1423 H.R. 2514—Counter Act of 2019 Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. Introduced: May 3, 2019 Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019. Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2 H.R. 2630—Cash Always Should be Honored (CASH) Act Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment. Introduced: May 9, 2019 Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019. Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/2630 H.R. 4501— Consumer Transaction Account Protection Act of 2019 Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker. Introduced: September 26, 2019 Status: The bill was referred to the House Committee on Financial Services on September 26, 2019. Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1 H.R. 4767—Financial Services Innovation Act of 2019 Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan. Introduced: Oct. 21, 2019 Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture. Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1 H.R. 6116-- Consumer Financial Protection Commission Act Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions. Introduced: March 5, 2020 Status: The bill was referred to the House Financial Services Committee. Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false H.R. 6241-- Touchless Transactions Act of 2020 Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. Introduced: March 12, 2020 Status: The bill was referred to the House Financial Services Committee. Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack). S. 142—The American Data Dissemination Act Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974. Introduced: Jan. 16. 2019 Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019. Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3 S. 149—Stop Senior Scams Act Summary: The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors. Introduced: Jan. 16, 2019 Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. Sponsor: Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2 S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019 Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties. Introduced: Jan. 17, 2019 Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019 Sponsor: Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1 S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process. Introduced: Feb. 12, 2019 Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019. Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/senate-bill/453 S. 3108— Consumer Transaction Account Protection Act of 2019 Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker. Introduced: December 19, 2020 Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019. Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack). Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2 S. 3962— Asset Growth Restriction Act of 2020 Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order. Introduced: June 15, 2020 Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020. Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 3% chance of enactment (according to govtrack). Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9 |
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