Legislative Accomplishments

Building a Better Future for Community Banks

By the end of the 2018 Minnesota legislative session in May, our government relations team had significant accomplishments to report. 

The ICBM-supported legislation to reform the Residential Property Assessed Clean Energy (PACE) program was signed by Governor Dayton with language that both maintained community bank lien priority and provided strong consumer protections.

The Governor also signed ICBM-supported legislation to criminalize unauthorized interference with point-of-sale terminals, such as ATMs or gas pumps, to collect information from credit, debit or similar cards. 

Beginning in August, it will be a felony to access or attempt to access "an electronic terminal through opening any panel or access door without authorization and placing or attaching, or attempting to place or attach, an electronic device to capture, store, or communicate access device information." The new law will deter card skimmers and give law enforcement more tools to deal with them. Both results will contribute decreased losses for Minnesota consumers and community banks from card skimming.

In April, ICBM also succeeded in educating the public about regulatory relief for community banks an Op-Ed "Put an end to big banks' win-win scenario," published in the Pioneer Press. The article was a part of our push for the passage of the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155), which was signed by President Trump in May.

ICBM's Board of Directors unanimously supported the bill and their support was documented in a letter this past February.

ICBM also advocated for S.2155 to each of our federal-level representatives. While certain Minnesota Senators and Representatives did not support the bill, we were very pleased with the support it received from Rep. Collin Peterson, Rep. Erik Paulsen, Rep. Tom Emmer, Rep. Jason Lewis and Rep. Rick Nolan.

The benefits of the bill have been widely reported but some of the highlights include:

  • "Qualified mortgage" status for mortgage loans originated and retained on a bank's balance sheet.
  • Exemption from escrow requirements for banks that originate 1,000 or fewer first-lien mortgages on principle dwellings.
  • Exemption from collecting the new HMDA data fields for banks that originate fewer than 500 closed-end mortgage loans or fewer than 500 open-end lines of credit.
  • Exemption for rural mortgage portfolio loans of less than $400,000 if unable to find a state certified/licensed appraiser to perform an appraisal in a timely manner.
  • Removes the three-day waiting period required under TILA/RESPA mortgage disclosure when creditor extends a second offer of credit with lower APR.
  • Agencies required to reduce reporting requirements for the first and third quarter call reports for banks that meet appropriate criteria.
  • Simplifies community bank capital requirements by establishing a tangible equity leverage ratio between 8-10 percent; banks exceeding the ratio meet risk-based capital and leverage requirements and are considered "well capitalized."

We will continue to engage federal lawmakers until they all understand that community banks are the lifeblood of our economy and that providing them relief is good for Minnesotans, and for our country.

Ongoing Priorities 

ICBM partners with the Independent Community Bankers of America on federal level issues.

ICBM also supports ending the credit union tax subsidy.

The annual ICBA Capital Summit brings community bankers from across the country to Washington, DC, to advocate for change through the organization’s Plan for Prosperity legislative platform.