2022 General Assembly Sessions: Overview of Legislation of Interest to Credit Unions
Legislation of Interest to Credit Unions
Wood Rogers summary
- H.B. 209/S.B. 329 – State–chartered Credit Unions; Activities Authorized for Federally Charted Credit Unions
Grants state-chartered credit unions the power to engage in any activity, service, or other practice that is authorized for a federally-chartered credit union provided: (i) written notice is given to the Commissioner of the Bureau of Financial Institutions at least 45 days prior to engaging in the activity, service, or practice along with other information the Commissioner may require; and (ii) the credit union engages in such activity, service, or practice under the same terms, conditions, and limitations that are applicable to a federally-chartered credit union. “Activity, service, or practice” does not include credit union field of membership matters. The Commissioner is given the authority to restrict the activity, service, or practice for supervisory, legal or safety and soundness reasons.
- H.B. 268/S.B. 326 – Credit Unions; Priority of Shares
Removes a provision that shares of a member shall be subordinate to all other obligations of the credit union. The legislation will facilitate the ability of credit unions to issue subordinated debt.
- H.B. 95 – Department of Social Services; Requirement that Financial Institutions Furnish Records and Information
Requires a financial institution to cooperate in any investigation of alleged adult abuse, neglect, or exploitation conducted by a local department of social services (“DSS”). The financial institution shall make any financial records or information relevant to such investigation available upon request of DSS. Financial institutions may also voluntarily report information or records relevant to a report or investigation to the DSS or to a court-appointed guardian ad litem for the adult who is the subject of the investigation. A financial institution that reports such information or records is immune from civil or criminal liability absent gross negligence or willful misconduct.
- H.B. 496/S.B.687 – Financial Exploitation of Adults
Changes the term “incapacitated adult” to “vulnerable adult” for purposes of the criminal statute dealing with the abuse and neglect of such adults. “Vulnerable adult” is defined as any person 18 years or older who is impaired by reason of mental illness, intellectual or developmental disability, physical illness or disability, or other causes, including age, to the extent the adult lacks sufficient understanding or capacity to make, communicate, or carry out reasonable decisions concerning his well-being or has one or more limitations that substantially impair the adult’s ability to independently provide for his daily needs or safeguard his person, property, or legal interests.
- H.B. 497/S.B. 124 – Misuse of Power of Attorney
Provides that an agent under a power of attorney who knowingly and intentionally engages in financial exploitation of an incapacitated adult is guilty of a Class 1 misdemeanor. Upon such conviction, the authority of the agent to act under the power of attorney terminates.
- H.B. 263 – Banks; Virtual Currency Custody Servicers
Permits a bank to provide its customers with virtual currency custody services in a fiduciary or non-fiduciary capacity so long as the bank has adequate protocols in place to effectively manage the associated risks.
- H.B. 1153/S.B. 303 – Mortgage Brokers; Dual Compensation
Removes the prohibition on dual compensation for a person who acts as a mortgage broker and a real estate broker or salesperson in connection with any real estate transaction. A mortgage broker who acts as a real estate broker or salesperson must provide a borrower a written disclosure at the time the mortgage broker services are first offered to the borrower.
- H.B. 1234 – Enforcement of Judgements
Provides that no execution shall be issued or an action brought on a judgment dated, extended, or renewed, prior to July 1, 2021, including a judgment in favor of the Commonwealth and a judgment rendered in another state or country, up to and including 20 years from the date of such judgment or domestication of such judgment or up to and including 20 years from the date of such extension or renewal of such judgment, whichever is later. Also allows a judgment creditor’s assignee or such assignee’s attorney or authorized agent to go through the process to extend the limitations period. Under current law, no such execution or judgment may be issued or brought 20 years from the date of such judgment only.
- H.B. 1194 – Affordable Housing Grants
Authorizes an industrial development authority to make grants associated with the construction of affordable housing.
- S.B. 47 – Housing Opportunity Tax Credits
Removes the $15 million credit cap imposed on the Virginia Housing Opportunity Tax Credit and allows taxpayers to receive a state-level credit in an amount substantially similar to the amount of federal credit allocated or allowed by the Virginia Housing Development Authority for 10 years. Under the current law, the Virginia Housing Development Authority is required to allocate the credit for one year only. *This bill is currently being finalized in Special Session.
- H.B. 1309/S.B. 756 – Resilient Virginia Revolving Fraud
Creates the Resilient Virginia Revolving Fund. Provides guidelines for deposits, expenditures, and investments and requires an annual audit of the Virginia Resources Authority. The Fund may be used for loans or to refinance projects for local governments or to give grants to them or by local governments for loans or grants to Virginians eligible for projects for resilience purposes. Establishes guidelines for the priority of such loans and grants. When these resilience loans are secured by liens, such liens will be subordinate to all liens on the property unless all existing lienholders give prior written consent for the resilience liens to rank on parity with liens for unpaid local taxes.
- H.B. 1325 – Commercial Property Assessed Clean Energy (C-PACE) Financing
Changes the existing authorization for local governments to finance, by ordinance, clean energy, resiliency, and stormwater management programs such as to authorize the financing of eligible improvements to eligible properties under C-PACE loan programs. Permits localities to delegate billing, collection, and remittance of C-PACE loan payments to a third party.
- H.B. 1173/S.B. 632 – Fair Labor Standards Act; Overtime
Replaces the current provisions of the Virginia Overtime Wage Act with the provision that any employer that violates the overtime wage requirements of the federal Fair Labor Standards Act, and any related laws and regulations, shall be liable to its employee for remedies or other relief available under Fair Labor Standards Act. Requires an employer to compensate employees of a derivative carrier at a rate not less than one and one-half times the employee’s regular rate of pay for any hours worked in excess of 40 hours in any one workweek.
Requires the Secretary of Labor to convene a work group that includes certain industry representatives and legislators to review overtime issues and the Virginia Overtime Wage Act and requires the work group to submit a report on its findings and recommendations to the Governor and the Chairmen of the House Committees on Appropriations and Commerce and Energy and the Senate Committees on Finance and Appropriations and Commerce and Labor by November 1, 2022.
* All legislation described above becomes effective on July 1, 2022.
Joseph E. “Jay” Spruill, III
Woods Rogers PLC
jspruill@woodsrogers.com
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