Removing Barriers Blog

Credit Union Bills Advance in Alabama, Florida and Tennessee
Posted April 28, 2017 by CUNA Advocacy

Recently, the League of Southeastern Credit Unions (LSCU) successfully championed an Alabama bill, S. 27, that extends the credit union examination period to 18 months. After an extensive League lobbying effort, Governor Kay Ivey signed the bill this week. Previously state-chartered credit unions were required to be examined annually. Reducing the frequency of examinations removes unnecessary pressure on credit union resources and permits credit unions to allocate those resources to member service.

In Florida, LSCU-supported legislation, H. 1347, that exempts credit unions from lawsuits under the Florida Deceptive and Unfair Trades Practices Act (FDUTPA) was sent to Governor Rick Scott. Currently, banks and savings and loans associations are exempted from FDUTPA, while credit unions are still subject to enforcement and lawsuits under the Act. The bill was bipartisan and supported by the overwhelming majority of lawmakers. LSCU is engaging with the Governor to ensure the measure is signed.

In Tennessee, legislation that increases the amount that a credit union can pay out from a deceased member’s account or safe deposit box, was enacted. Previously credit unions could only pay out $10,000 but under H. 150, credit unions can pay out $15,000. The change gives credit unions greater flexibility to assist the families of deceased members.

Leagues in 10 states are seeking to advance 15 bills to modernize state credit union acts. CUNA has been working closely with these leagues and has provided research and technical support of these measures.