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NAFCU's widely-read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know news, including the reintroduction of legislation related to serving marijuana-related businesses (MRBs), insights into the NCUA's Annual Report, a delay to the tax filing deadline, and more.

Lawmakers try marijuana-banking bill again

House Financial Services Committee members Ed Perlmutter, D-Colo., Nydia Velázquez, D-N.Y., Steve Stivers, R-Ohio, and Warren Davidson, R-Ohio, Thursday reintroduced legislation – the SAFE Banking Act – to provide a safe harbor for credit unions and other lenders that serve MRBs in states that have legalized marijuana. The House passed the bill in 2019, but it was never taken up by the Senate. The House also passed these provisions in its proposed HEROES Act relief package last spring.

While NAFCU has not and will not take a position on the legalization or decriminalization of marijuana, the association has developed resources and provides updates on the political and regulatory landscape surrounding marijuana banking to help credit unions better understand the current state of play in this area. NAFCU released an updated marijuana banking brief in December, which highlighted another House-passed bill that aimed to decriminalize marijuana at the federal level and address previous marijuana convictions and tax revenue issues.

Relatedly, the NCUA recently released an enforcement action against a Michigan credit union for compliance failures related to its MRB accounts and Bank Secrecy Act (BSA) requirements.

ICYMI: NAFCU's Morris dives into NCUA's annual report

The NCUA released its 2020 Annual Report earlier this week. For those who haven't made it through the 246-page report, NAFCU Senior Counsel for Research and Policy Andrew Morris provided some key insights on the association's member-only CFO and Cybersecurity & IT Networks. Morris flagged the following issues for credit unions:

• fintech and cybersecurity;
• ACCESS initiative;
• examination and supervision;
• membership and consolidation trends; and
• Share Insurance Fund.

Access the networks to read Morris' insights. An overview of the annual report was also covered in NAFCU Today.

IRS heeds calls to extend tax deadline

The Internal Revenue Service (IRS) Wednesday announced an extension to the individual federal income tax filing deadline from April 15 to May 17. A bipartisan group of more than 100 U.S. Representatives had been urging the agency to do so in light of the coronavirus pandemic and recent changes to tax policy.

The recently-enacted American Rescue Plan Act provided another round of economic impact payments (EIPs), which are sent by the Treasury Department and IRS, expanded several tax credits, and made other changes.

In addition, the IRS earlier this month released guidance on the employee retention tax credit. This guidance incorporates the FAQs the IRS released shortly after enactment of the CARES Act and addresses additional issues, including which businesses are eligible for the credit, when they can claim the credit, and how to calculate the size of the credit. The guidance also outlines how employers who got a paycheck protection program (PPP) loan can claim the credit, which was a change that was authorized under the Consolidated Appropriations Act.

New PPP IFR for American Rescue Plan Act amendments

The Small Business Administration (SBA) Thursday issued another interim final rule (IFR) related to the PPP to incorporate changes made to the program by the most recent coronavirus relief package. The IFR details changes to:

• eligibility, size, affiliation waivers, and certifications requirements for various types of businesses and grants; and
• forgiveness of first- and second-draw PPP loans related to payroll cost exclusions.

NAFCU continues to work with the SBA and Congress on PPP issues to ensure credit unions have the resources and guidance needed to lend effectively through the program. The association is currently monitoring efforts to extend the program – currently set to expire March 31 – by two months and allow the SBA an additional 30 days to process any outstanding loan applications. The Senate is expected to take up the bill next week.

Lawmakers talk DEI, climate change issues

NAFCU's award-winning advocacy team Thursday monitored two hearings as lawmakers on key committees explored issues that could potentially impact credit unions. The Senate Banking Committee looked at ways to protect the financial system from climate change risks, with discussions ranging from investments in pollution-heavy companies, ways lenders could support clean energy initiatives, and climate risk disclosures.

A House Financial Services subcommittee tackled diversity, equity and inclusion (DEI) issues. Subcommittee members and witnesses discussed how disclosure of diversity data could support DEI efforts, and some lawmakers raised concerns about algorithmic biases at fintechs. Rep. Al Green, D-Texas, also referenced his proposed legislation that would require federal banking regulators, including the NCUA, to include a diversity and inclusion component in the Uniform Financial Institutions Rating System.

NAFCU will continue to monitor Congress' efforts on these issues and keep credit unions informed.