NACHA Government Relations Update - Dec. 1, 2016

Posted November 30, 2016

U.S. Treasury Proposes to Adopt Same Day ACH, Targets August 30, 2017 to Begin Receiving Same Day ACH Credits
The Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service) published a proposal to amend its regulation governing the use of the Automated Clearing House (ACH) Network by Federal agencies. The proposed regulation adopts, with some exceptions, the NACHA Operating Rules as the rules governing the use of the ACH Network by Federal agencies. Fiscal Services issued this proposed rule to address changes that NACHA Membership has made to the NACHA Operating Rules since the publication of the 2013 NACHA Operating Rules & Guidelines. These changes include amendments set forth in the 2014, 2015, and 2016 NACHA Operating Rules & Guidelines books.
Highlights include, but are not limited to, adopting Same Day ACH and will begin receiving same-day credits August 30, 2017. As NACHA anticipated from executive level meetings, Fiscal Services did not adopt the Unauthorized Entry Fee.
NACHA appreciates that Treasury and the Federal government continue to recognize the value of maintaining consistency between the regulation governing Federal agency payments and the NACHA Operating Rules. NACHA encourages our members to submit comments to Treasury prior to the January 30, 2017 deadline.
NACHA Meets with Reserve Bank Operations and Payments Systems Staff
On Nov. 14, 2016, Jan Estep, Mike Herd and Bill Sullivan met with Federal Reserve’s Reserve Bank Operations and Payment Systems staff as part of the quarterly meeting schedule. A portion of the meeting included dialogue with Fed staff on the recent joint advance notice of proposed rulemaking. The ANPRM breaks the enhanced cyber-risk standards into five categories. Category 1: Cyber Risk Governance, Category 2: Cyber Risk Management, Category 3: Internal Dependency Management, Category 4: External Dependency Management, Category 5: Incident Response, Cyber Resilience, and Situational Awareness.
Trump Selects Steve Mnuchin for Treasury Nominee
The Trump Transition Team announced Steve Mnuchin as their Treasury Nominee. A major focus will be the roll back of Dodd-Frank, which he contends crimps bank lending, as well as a simplification of financial regulation.
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House Democratic Leader Nancy Pelosi Prevails in Democratic Leadership Election
House Democratic Leader Nancy Pelosi has defeated a challenge from Rep. Tim Ryan to remain the leader of the Democratic Party in the House for the 115th Congress. The vote was 134-63 via secret ballot. Several of Ryan’s proposals were adopted in the vote, which include expanded leadership positions for freshman members. 
CFPB Appeals Courts Decision in PHH v. CFPB
On Nov. 18, 2016, the CFPB petitioned the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) for an en banc review of PHH v. CFPB. The petition, which was expected, argues that this case represents “what may be the most important separation-of-powers case in a generation.” Last month, the appeals court panel declared the bureau "unconstitutionally structured" and said it put too much power in a single director. It placed the bureau under the authority of the president.
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CFPB Holds Field Hearing in Order to Seek Information on Consumer Data Access
On Nov. 17, 2016, the CFPB held a field hearing in Utah on the growing debate over the future of finance: who controls the consumer data that's vital to both startups and traditional financial companies. The issue is that third-party financial aggregators, who enable customers to view financial data from multiple accounts and institutions in a single place, complained that banks were preventing access to data. Representatives for tech firms, and most consumer advocates, have longed lobbied hailed for access and praised the CFPB's inquiry. The CFPB has issued an RFI into consumer access and the sharing of financial records. This could be the first step toward rulemaking in the governance of financial data.
Leadership in the 115th Congress
A combination of events will spell changes to the leadership of both parties in both Chambers in the 115th Congress. In the Senate, the retirement of Democratic Leader Harry Reid (NV) and the ascension of Sen. Chuck Schumer (NY) to that position creates an opening in the leadership hierarchy.
On the House side, the GOP’s leadership races are the largest source of potential intrigue. Continuing a theme that has repeated itself over the last few years, the conservative Freedom Caucus may attempt to run one or more of its Members for elected leadership positions in the next Congress.
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Legislative Tool Kit
House 2016 Calendar (also in bottom right hand bar)
Senate 2016 Calendar (also in bottom right hand bar)​​

Access: Public