PALM DESERT, Calif.–The board of the California/Nevada Credit Union Leagues will in January of 2016 begin discussion of what “choice” should look like when it comes to membership in the league and CUNA.
That discussion will come, however, after a new proposal on CUNA/league membership is put forward by CUNA CEO Jim Nussle later this year. Nussle told the California/Nevada leagues’ REACH meeting he hopes his plan will be given consideration, but he did not provide any further details.
The California/Nevada league is the latest to acknowledge it is tackling the divisive issue of whether credit unions should be permitted to have the option of belonging to either the league OR CUNA, versus the current requirement that credit unions belong to both. The debate follows a recommendation by the CUNA System Structure and Governance Task Force that called for giving credit unions the option, but that recommendation was rejected by the CUNA board earlier this year.
Several leagues have since announced that they plan to give their member credit unions that option, including the League of Southeastern Credit Unions. One issue that remains open to interpretation, however, is whether the option of belonging to one or the other violates CUNA’s bylaws.
Speaking to the REACH meeting here, league CEO Diana Dykstra made it clear she has heard from credit unions regarding the California and Nevada leagues’ position on the issue.
“In January we will begin to have serious discussion over what choice looks like for California and Nevada credit unions,” said Dykstra.” I don’t want you to think we are ignoring you. It’s loud and clear that our credit unions support change. But we want to do it in a thoughtful manner.”
Dykstra said she has no idea what the league board will decide, but in her comments expressed support for the current dual membership structure. “The power of one system is the envy of every trade association in the United States, and the task force wanted to make sure that was reinforced,” said Dykstra. “(The task force) recognized that offering choice without recognizing the ramifications could result in 50 states and CUNA having differing legislative agendas. Do you think we would win anything then? The only winner in that scenario is the American Bankers Association and the Independent Community Bankers of America.”
Dykstra said the 80-year-old CUNA/league system is interdependent and intertwined, and that “we have to figure this out carefully. I hope you will give us the opportunity to get it right. Let’s not break the system apart today.”