SEATAC, Wash.—Credit unions in Idaho, Washington and Oregon are reporting a number of victories as respective legislatures wrap up their sessions.
According to the Northwest Credit Union Association, which represents the three states, those victories include:
Idaho: Credit Union Act Updated
The NWCUA noted the last time the Idaho Credit Union Act saw any significant updates, it cost 32 cents to mail a letter; a gallon of gas was $1.23, and the Spice Girls were all the rage in pop culture.
At that time, Gem State credit unions protected $1.3 billion in financial assets for 389,210 members. There was no such thing as mobile banking, and “share drafts” were about to become the greatest thing since sliced bread (which, by the way, cost $1.17 a loaf), the NWCUA noted.
Today, Idaho credit unions serve nearly one million members, and protect $8.6 billion of their financial assets.
A collaborative effort between the Idaho Department of Finance (DFI), credit unions, the Northwest Credit Union Association and legislative leadership resulted in targeted updates and modernization of the Act governing state-chartered credit unions, the NWCUA said.
The bill that Governor Butch Otter signed into law modernizes Board, Supervisory Committee, and credit union bond requirements.
Washington: Unlimited Public Funds and Cannabis Banking Advance
Washington Governor Jay Inslee has signed a credit union priority bill into law, which will give local governments smarter options for their public funds deposits. Currently, those municipal governments’ deposits in credit unions are capped at $250,000, limiting their ability to make competitive choices, the NWCUA said.
The new law opens doors for municipalities in 34 of the state’s 39 counties to local financial service and better returns on tax dollars.
Under the new law, municipalities will be able to deposit unlimited public funds above the $250,000 insurance limit, into credit unions located in counties populated by 300,000 or fewer people.
The law takes effect in early June.
“This is watershed legislation,” said NWCUA President and CEO Troy Stang. “Free and fair markets can only thrive when consumers and the municipalities protecting their tax dollars have choice. Now, they will.”
In addition, Gov. Inslee signed legislation exempting financial institutions that provide services to legal marijuana-related businesses, researchers, armored car services, and laboratories, from any state criminal law.
As of the end of 2017, 1,856 legal marijuana businesses were operating in the Evergreen State, generating over $1.4 billion in sales and $315 million in tax revenue.
“Still, federal law and Justice Department policies saddle the financial services industry serving legal canna businesses, with layers of regulatory red tape,” the NWCUA said. “As a result, the businesses are operating in high-cash situations. The legislation is expected to help get cash off the streets and into safe banking environments.”
Oregon: Data Breach Legislation Approved
The Oregon Legislature adjourned “sine die” eight days ahead of its constitutional deadline—but not before approving SB 1551, which addresses data breaches.
“The consumer protection bill was passed in direct response to last year’s Equifax data breach that compromised the private information of more than 145 million Americans,” said the NWCUA. “Under Senate Bill 1551, consumers will be able to place a credit freeze with each credit reporting agency without cost, at any time for any reason. The removal of a freeze, or temporary lifting of a freeze, also is free.”
In addition, the bill will require organizations responsible for a data breach to notify all impacted consumers within 45 days, which will result in credit unions also receiving this critical information in a more timely manner, the NWCUA reported.