WASHINGTON-After California's Gary Miller was targeted for defeat by credit unions' first Super PAC last year it was hard to imagine that Miller, who won an eighth congressional term anyway in the state's new 31st House district, would be positioned to be the next credit union champion in Congress-as he was last week.
Miller, a Republican who ripped the credit union lobby soon after the 2012 primary for backing his opponent, announced during a House hearing on regulatory relief for credit unions that he will be the first to introduce a bill that would put in place many changes that have been sought by credit unions.
"While I fully support effective federal regulation in the financial services sector, it is clear that credit unions did not contribute to the financial crisis," said Miller during the hearing before the House Financial Services Committee. "That's why I am drafting legislation that will help ease the regulatory burden on credit unions while ensuring that the consumer protection-driven intent behind the regulations is maintained."
Credit unions could not have picked a less likely champion.
Miller let his anger show during NAFCU's Congressional Caucus in September 2012 after the California league poured $250,000 into the primary. The money came via a new Super PAC called Restoring Our Democracy, which tried to help elect former Arrowhead CU executive Pete Aguilar to the redrawn 31st House District.
"If someone did that to you, would you support them?" Miller said during the NAFCU conference in an unusually frank retort.
The credit union lobby has spent the time since then making amends to Miller, who is vice chairman of the powerful financial services panel that has jurisdiction over credit union issues. After the ill-fated primary, credit union lobby groups made several PAC contributions to Miller and tried to convince him the league's financial support for Aguilar was necessary because of Aguilar's CU background, and not an effort aimed at his own defeat. There have been numerous signs of forgiveness by Miller since then.
What The Bill Includes
"Congressman Miller has always been a very strong supporter of all community-based financial institutions, especially credit unions," said Dan Berger, chief lobbyist for NAFCU, which was blindsided by Miller's remarks at last year's conference. "It appears to me, if it is good public policy for his constituents in his district, he has a reputation for pursuing it. As a businessman, he understands the positive economic impact that credit unions provide for his constituents."
Among other provisions, Miller's regulatory relief legislation will:
* Enable NCUA to step in where appropriate and modify a CFPB rule as long as the modified rule still meets CFPB's objective.
* Authorize a risk-based capital system.
* Require that the CFPB and NCUA conduct a cost-benefit analysis after three years of a new regulation.
* Modernize the CLF.
* Provide flexibility for NCUA to grant a FCU parity in connection with broader state rules.
* Update investment options for credit unions.
