HARAHAN, La. (4/14/14)--The Louisiana House Commerce Committee Tuesday approved a bill that would help relieve the burden of maintaining paper records for state credit unions.
Although the practice of electronic document storage is widely accepted in the U.S., current Louisiana law restricts financial institution reliance on electronic storage of certain records, the Louisiana Credit Union League (LCUL) reported.
House Bill 661 will be sent to the House of Representatives for a vote this week.
The bill was drafted by LCUL, Adams & Reese, and the Trimmier Law Firm, with input from the Louisiana Bankers Association. Steve Webb, chief operating officer, Neighbors FCU, a $632 million-asset credit union in Baton Rouge, testified on behalf of Louisiana credit unions in front of the House Commerce Committee in Baton Rouge April 8.
The bill would:
- Allow financial institutions to choose whether to rely on traditional paper records or digitally reproduced records;
- Enhance confidence in digital record storage, retention and file integrity;
- Give certain reproductions of records the same legal status as paper records;
- Allow financial institutions to take advantage of scanning advances of the 21st century;
- Decrease costs for financial institutions and consumers by eliminating the expense of retention of paper documents; and
- Require that reproductions are certified by a representative of a financial institution.
"If passed, this legislation has the potential to benefit all credit unions in Louisiana," said Connie Major, league executive vice president.