DULUTH, Ga.–The League of Southeastern Credit Unions has hosted Virtual Advocacy Conferences in two states.
LSCU hosted a virtual event for members of Georgia Credit Union Affiliates, with an emphasis on how the Peach State’s credit unions have responded to the COVID-19 pandemic, and reported elected officials are aware of the contributions.
Approximately 30 credit union professionals participated in the online event. It also hosted an event in conjunction with Florida’s credit unions.
“If I don’t accomplish anything else here today, from the State of Georgia’s perspective, I wanted to say a huge ‘thank you’ for everything the credit union industry has done to rise up and to become part of a solution during the pandemic,” said Kevin Hagler, commissioner of the Georgia Department of Banking and Finance (DBF). “I know public accolades are typically reserved for the medical workers on the front lines – and they do deserve it. But it’s important to note everybody on this call is also an essential worker.”
According to the LSCU, during the GAC session, participants from credit unions across Georgia heard numerous elected officials, including Gov. Brian Kemp; Lt. Gov. Geoff Duncan; Rep. Clint Crowe (R-110); Majority Leader Rep. Jon Burns (R-159); Sen. Bo Hatchett (R-50); and Sen. Elena Parent (D-42).
Both Hagler and DBF Deputy Commissioner Melissa Sneed discussed the regulatory priorities the DBF will be keeping top of mind over the next year, while Sydney Rubin, senior director of governmental affairs with the League of Southeastern Credit Unions, provided a governmental affairs update.
Blue? Red? Purple?
The Advocacy Conference also included a panel interview between Democratic Strategist Tharon Johnson and Republican Strategist Brian Robinson, co-hosts of the Political Breakfast Podcast. The two pundits debated as to whether Georgia is a blue or red (or purple) state in the wake of the 2020 elections, LSCU reported.
The League of Southeastern CUs said most speakers illustrated the ways in which Georgia officials plan to create opportunity for businesses including credit unions to grow coming out of the pandemic.
Rubin, for instance, said LSCU’s advocacy department will have its eye on whether Remote Online Notarization laws could become permanent, allowing credit unions to continue conducting notarizations virtually. That, in turn, would allow them to function more efficiently and competitively in the “new normal.”
‘Meaningful Approach’
By the same token, Sneed said DBF will be taking a modified stance on the state’s credit unions’ credit union risk management in light of loan adjustments that were made to help members through the pandemic, the GCUA said.
“There are several areas where we will be taking a meaningful and understanding approach just to evaluate the risk management posture of the portfolio in relation to modifications that were largely made during the pandemic – and in some cases continue to be made,” Sneed said. “Really, what we’re looking at is that management has policies and procedures in place for those credit renewals, extensions and modifications under those CARES Act programs.”
Sneed further suggested credit unions make sure they understand how many borrowers required modifications and that they attempt to predict how these may affect the business of the credit union moving forward, according to the GCUA.
The New Thriving
Burns, Crowe and Duncan spoke about how elected officials plan to create an environment that can help credit unions better assess changes they’ve had through the last year and thrive in a “new normal.” Duncan said it’s what credit unions “deserve,” according to the GCUA.
“To think about all the vital roles that credit unions play in helping communities and business grow and in helping individual families be able to achieve their dreams – it really makes you all a priceless commodity. And through COVID, y’all haven’t missed a beat,” he said. “As lieutenant governor, the absolute best thing I can do for credit unions – the absolute best thing I can do – is support and try to procure a strong state economy. And that’s what we plan to do.”
‘Favorable’ Environment in Florida
In the Sunshine State, meanwhile, the League of Southeastern Credit Union said its virtual advocacy even sought to work with state legislators and regulators to remain focused on a favorable operating environment where credit unions can thrive.
Approximately 45 credit union professionals participated in the Florida Credit Union Association’s Virtual Advocacy Conference on March 24.
Florida Lt. Gov. Jeanette Nunez thanked the credit unions present for being “part of the solution” during the COVID-pandemic over the past year – and said the State of Florida remains committed to helping businesses, including CUs, to thrive, LSCU reported.
Event attendees also heard from prominent Florida officials including: Speaker of the House of Representatives Chris Sprowls; Senator Danny Burgess (R-Zephyrhills); Chief Financial Officer Jimmy Patronis; Florida’s Office of Financial Regulation Commissioner Russell Weigel; Associate Regional Director of Programs for NCUA Southern Region II Joe Ostrowidzki; and Chief Bureau of Credit Union Regulation for the Florida Office of Financial Regulation Ben Brinkley.
LSCU President Jared Ross and LSCU Senior Director of Governmental Affairs John Rothell also discussed key legislative priorities that could affect credit unions.
Efforts Highlighted
Each Florida official highlighted the ways in which they plan to clear the way for credit union success in a post-pandemic world. Sprowls, for instance, stressed how seriously the state legislature has been working toward passing a COVID Liability Bill to protect businesses – including credit unions – from frivolous lawsuits pertaining to the pandemic, LSCU reported.
Rothell said the LSCU advocacy team is closely tracking this bill to make sure it pertains directly to credit unions. At the same time, Rothell and associates are also keeping an active eye on an important bill that has nothing to do with COVID – but could still immensely affect how credit unions operate in the near future, LSCU shared.
According to the league, Rothell said Florida’s pending merchant liability legislation is meant to protect state consumers by making sure big tech companies disclose how they’re handling consumer data and whether they sell any of that information. However, certain portions of the legislation – as it reads now – could put undue regulation on credit unions.
“It’s one of the biggest issues we’ve seen this session,” Rothell said. “We wanted to let legislators know that financial institutions are already governed by the Graham-Leach-Bliley Act – and that we don’t sell our members’ information. We should not be a target in this legislation. Right now, the act only exempts the financial data we hold and not the specific financial institutions. So, the LSCU advocacy team is continuing to advocate for an industry exemption.”
Some Luck
Luckily, said LSCU, many Florida officials seem receptive to the credit union message and eager to help them succeed. CFO Patronis, for example, expressed his gratitude for the helpful and positive way in which credit unions interacted with members throughout the pandemic.
Patronis and other officials said that’s why they’re eager to help credit unions continue to thrive in the “new normal.” It was a welcomed message among participants of the 2021 Virtual Advocacy Conference.
“It’s hard to believe, but the Florida Virtual Advocacy Conference flew by because the information was so valuable,” said First Florida Credit Union CEO and President Brent Lister. “I thought it was well worth my time – and while I am looking forward to getting back to in-person events, anyone who did not attend this virtual session missed out.”