Page 8 - February 20, 2025 Bulletin

aRTiCLeS

of major sports stadiums and purchasing private planes for their “reporting companies are not currently required to file beneficial
executives. ownership information with FinCEN despite the Supreme
Court’s action in Texas Top Cop Shop.”
Credit unions also used their non-taxed income to purchase a
record number of community banks last year, including the bank
that Bair uses. “These local banks contribute roughly $15 billion Bill Would Expand Treatment
in tax revenue each year, revenue which is reduced each time a Options Under HSA-Qualified High
community bank is assumed by a credit union,” she wrote. Deductible Health Plans
“Credit unions once played an important and proud role
in serving strongly associated, well-defined underserved House lawmakers have introduced a proposed bill to expand
communities. Many still do, and for them, tax benefits could chronic disease treatment options covered by high deductible
be preserved,” Bair wrote. “But too many have been egregiously health plans, such as for individuals with high blood pressure or
abusing their tax benefits, costing the government needed tax asthma.
revenue while creating even more challenges for community The Chronic Disease Flexible Coverage Act would allow
banks, which already struggle with excessive regulatory burdens. employers who offer HDHP coverage the option of including
Policymakers should at the very least use this year’s debate over pre-deductible coverage for certain healthcare services that
tax reform to take a fresh look at credit union policies.” treat common chronic illnesses, according to a summary of the
legislation.
Supreme Court Lifts Barrier to The bill by Reps. Vern Buchanan (R-Fla.) and Jimmy Panetta

Beneficial Ownership Information (D-Calif.) would codify IRS Guidance issued under the Trump
Collection Administration in 2019. The legislation would allow employers
to offer pre-deductible coverage of 14 chronic healthcare services
The U.S. Supreme Court has ordered a stay of a nationwide for employees using an Health Savings Account-qualified HDHP,
injunction preventing enforcement of the Corporate including beta-blockers for patients with congestive heart
Transparency Act and its requirement for businesses to report failure, blood pressure monitors for patients with high blood
their beneficial ownership information to the Financial Crimes pressure, glucometers for patients with diabetes and inhalers for
Enforcement Network. However, other injunctions remain in patients with asthma. It also would allow the list of services to be
effect, and FinCEN has said that reporting companies are not expanded, if necessary.
required to file BOI at this time.
Kevin McKechnie, executive director of the Health Savings
In the case reviewed by the Supreme Court – Texas Top Cop Account Council, said the council supports the legislation. “We
Shop vs. Garland – the plaintiffs challenged the constitutionality urge swift passage of the Chronic Disease Flexible Coverage Act
of the CTA, which requires covered businesses to report their and we look forward to working closely with Reps. Buchanan
BOI to FinCEN. In December, the Fifth Circuit Court of and Panetta to advance this important bipartisan legislation,” he
Appeals reviewed the case and lifted a nationwide injunction said.
previously issued by a district court judge in Texas. However,
three days later, “in order to preserve the constitutional status Banking Committee Forms Working
quo while the merits panel considers the parties’ weighty Groups on Flood Insurance, Bank
substantive arguments,” a panel of Fifth Circuit judges vacated
that decision and once again enjoined enforcement of the Regulator Reform
reporting rule and CTA, putting the reporting requirement on
hold once again. Senate Banking Committee Chairman Tim Scott (R-S.C.) has
announced the formation of three working groups to tackle issues
The Justice Department appealed to the Supreme Court for a ranging from flood insurance to reforming agencies that regulate
stay of the Fifth Circuit injunction. The high court granted that financial institutions.
request, which allows the CTA to be enforced while the courts
weigh the merits of the case. The first working group, led by Sens. John Kennedy (R-La.)
and Mike Rounds (R-S.D.), will seek to develop solutions for
The Texas Top Cop Shop lawsuit is one of several legal a long-term reauthorization of the National Flood Insurance
challenges to the CTA. FinCEN noted that a separate Program. The second working group, led by Sen. Bill Hagerty
nationwide order issued by a different federal judge in Texas – (R-Tenn.), will develop solutions reform the shareholder proposal
Smith v. U.S. Department of the Treasury – remains in place, so and proxy advisor process to mitigate the influence of “activist”
shareholders.

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