WASHINGTON—State credit union advocacy led to the governors of New Hampshire and New Mexico signing credit union-friendly bills into law in recent weeks, while other pro-credit union bills in Delaware, Washington, Montana and Tennessee await signatures, CUNA reported.
In New Hampshire, Gov. Chris Sununu signed into law a bill that loosens credit union branching restrictions by giving the regulator the authority to approve out-of-state credit unions to branch into New Hampshire.
The Cooperative Credit Union Association’s (CCUA) New Hampshire Advocacy Committee had several members submit oral and written testimony in support of the bill, and CCUA President/CEO Paul Gentile helped lead efforts as the bill went through the public hearing process, CUNA noted.
New Mexico Gov. Susana Martinez signed a data breach notification bill into law earlier this month, a bill strongly supported by the Credit Union Association of New Mexico.
According to CUNA, bills awaiting a governor’s signature include:
- Delaware: A bill that would allow Delaware to become the 23rd state to allow prize-linked savings accounts. Specifically, it explicitly authorizes such programs in Delaware and clarifies that such programs do not constitute prohibited gambling or lottery practices.
- Washington: A bill that would update credit union governance, board of director powers and responsibilities, clarify low-income designations for credit unions and update the parity provision allowing state-chartered credit unions the same powers as federally chartered credit unions.
- Montana: A measure to authorize credit unions and banks to conduct prize-linked savings promotional programs. Montana's credit unions lobbied extensively for the bill and Gov. Steve Bullock has until May 9 to sign it.
- Tennessee: A bill allowing the amount that a credit union can pay out from a deceased member’s account or safe deposit box to increase to $15,000 from $10,000. The change would give credit unions greater flexibility to assist the families of deceased members during difficult times.
Results In Washington State
Separately, strategic collaboration between Washington credit unions and the Northwest Credit Union Association has resulted in passage of Senate Bill 5144, which modernizes the state’s Credit Union Act. Of the state’s 91 credit unions, 55 have state charters and are impacted by the legislation. The policy advancement continues a tradition in the region of updating the Act approximately every two years, the league stated.
“Washingtonians have entrusted credit unions to protect $47.6 billion in assets,” said league President and CEO of the NWCUA, Troy Stang. “Credit unions reinvest those assets into the members, and into the communities they serve. A stronger Credit Union Act will enable state-chartered credit unions to better serve their members.”
A key improvement to the Act amends the low-income credit union (LICU) designation so credit unions may qualify without the need to apply. This is in alignment with existing policy for federally-chartered credit unions. The legislation also streamlines responsibilities of the board of directors, clearing some confusing language, and allowing more delegation of duties to the CEO. The role of the supervisory committee also has been clarified to ensure audits are performed and financials are independently verified, the league said.
Other provisions of SB 5144 include elimination of the outdated term, “purchasing shares,” and updating of the Federal Parity Date to 2017.
President and CEO of Shelton-based Our Community Credit Union, Bert Fisher, believes the updates to Washington’s Credit Union Act will help member-owned, not-for-profit credit unions to continue to “do some extraordinary things in our communities.”
“We recognize that we need to be proactive in making sure the Washington Credit Union Act is reflective of the current financial environment and consumer behaviors,” Fisher said. “As our members are confronted with a changing financial landscape, it’s critical that we have laws that are responsive to those changes.”
Fisher is a member of NWCUA’s board of directors, and testified in favor of the legislation.
Washington Governor Jay Inslee signed the measure April 19.