January 5, 2023

2023 State Legislative Session Begins

Bill filed to expand credit union field of membership
State lawmakers returned to the Missouri Capitol on Wednesday for the start of the 2023 legislative session. In their opening addresses to their respective chambers, Senate President Pro Tem Caleb Rowden, R-Columbia, and House Speaker Dean Plocher, R-Town and Country, outlined their legislative priorities. Their opening remarks are available in the daily journals of the Senate (bottom of Page 4) and House (bottom of Page 9).

Among bills filed for this session are MBA-supported measures to protect banks that issue credit cards from frivolous lawsuits (Senate Bill 12, sponsored by Sen. Sandy Crawford, R-Buffalo) and to make it a felony to destroy an ATM/ITM machine (Senate Bill 186, sponsored by Sen. Justin Brown, R-Rolla).

Legislation to expand credit union field of membership also was filed (Senate Bill 388). MBA will provide additional information about this bill next week.

The start of this session also marks the beginning of first-year terms for several lawmakers. The House welcomed 48 new members while the Senate welcomed eight new members, including six individuals who served previously in the House.

“With dozens of new lawmakers joining the Missouri House and Senate, it’s essential that bankers meet with these men and women during the legislative session,” said MBA Senior Vice President David Kent. “We strongly encourage you to participate in a Target Banker visit so these lawmakers can hear directly from you about legislation affecting our industry and your customers.”

Dates for 2023 Target Banker visits are posted online. Please contact MBA to reserve your date.

Beginning tomorrow, MBA will publish a summary of legislative activities in the MBA Legislative Update. If you would like to receive this weekly e-newsletter, please contact MBA.

Agencies Issue Regulatory Agenda Addressing Overdraft, NSF Fees, Other Issues

This week, President Biden’s administration issued its Fall 2022 Semiannual Regulatory Agenda that lists rulemakings that departments and agencies expect to initiate or continue during the next six months. Some of the highlights affecting the banking industry follow.

• A final rule implementing Section 1071 of the Dodd-Frank Act concerning small business lending data collection could be issued sooner than March. In December, as previously shared by MBA, Consumer Financial Protection Bureau Director Rohit Chopra told a House committee that the agency would complete the rulemaking for Section 1071 by the end of March.
• A joint rule to modernize the Community Reinvestment Act is expected to be issued in March from the Office of the Comptroller of the Currency, the Federal Reserve and the Federal Deposit Insurance Corporation.
• Although there is currently no formal activity regarding overdraft fees and nonsufficient funds fees, the CFPB is “considering” “pre-rule activity” in November 2023.

MBA staff is monitoring these activities and will share resources to help MBA members comply with these rules.

Banking Regulators Issue Warning on Cryptocurrency Risks

A joint statement issued this week from three regulators highlights several key risks posed by cryptoassets that banks should consider if they wish to offer crypto-related services. The statement from the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency listed several signs of the “significant volatility and the exposure of vulnerabilities in the cryptoasset sector.” Among the risks cited are the following.

• possibility of fraud and scams
• legal uncertainties related to custody practices and ownership rights
• lack of maturity in risk management practices within the crypto sector

In his latest column for The Missouri Banker, MBA President Jackson Hataway discusses the digital financial services ecosystem and its impact in the banking industry.

“I fully believe that digital assets have a place in banking,” Hataway writes. “However, we must be certain that we are moving forward in a safe and sound manner as these assets are developed.”