NCUA budget transparency bill OK’d by House committee

Dec. 9, 2015 -- Legislation that would require the NCUA Board to hold annual budget hearings – which would include input on the overhead transfer rate (OTR) -- has been approved and sent to the House floor by the Financial Services Committee, by a vote of 40-16 Wednesday morning.

The legislation, the National Credit Union Administration Budget Transparency Act (H.R. 2287), would require the agency to hold hearings (after notice in the Federal Register) and accept comments on its budget.

The next step for the bill is full House consideration.

NASCUS President and CEO Lucy Ito thanked Financial Services Committee Chairman Jeb Hensarling (R-Texas) and chief sponsors of the legislation, Rep. Mick Mulvaney (R-S.C.) and Kyrsten Sinema (D-Ariz.) for moving forward on the measure. “A formal notice and comment requirement for NCUA’s budget, including the overhead transfer rate, provides oversight, accountability and transparency,” Ito said. “This measure represents not just sound public policy, but can help to ensure an equitable playing field for state and federally chartered credit unions.”

In other action, the Financial Services Committee reported out legislation aimed at establishing uniform national standards for protecting consumer data. H.R. 2205, the “Data Security Act of 2015” (Reps. Randy Neugebauer, R-Texas, and John Carney, D-Del., would establish uniform national standards for protecting consumer payment and personal information while recognizing credit unions’ compliance with the Gramm-Leach-Bliley Act (companion legislation in the Senate, S. 961, has been introduced by Sens. Tom Carper, D-Del., and Roy Blunt, R-Mo.).