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This week, 36 states were in session and legislation was
introduced that would expand both powers and protections for credit unions.
In Oregon, H 2161 would empower credit unions by permitting
amendments to articles of incorporation and bylaws to become automatically
effective unless disapproved by the state regulator. If enacted, the bill also
authorizes credit unions to expel members who create undue risk of loss. The
measure further eliminates the requirement that boards of directors meet at
least 10 times per calendar year and authorizes the regulator to establish
rules regarding meeting frequency.
A data security measure, H 2581, was introduced in Oregon as
well. If enacted, in situations where retailer negligence causes breaches, they
can be held liable to financial institutions for the costs associated with the
breaches. Institutions could recover the costs for reissuing cards, stopping
payments, closing accounts and notifying customers. The bill further directs
state regulators to adopt security standards consistent with the Payment
Card Industry Data Security Standards (“PCI DSS”), which are technical and
business process requirements developed by the credit card industry to enhance
payment card data security.
Texas took steps to permit credit unions to conduct
prize-linked savings programs with the introduction of the Texas Savings
Promotion Act, H 471. The legislation authorizes credit unions to hold the
raffles and outlines their parameters. Last session, the Governor vetoed a prize-linked
savings bill, noting that an amendment to the Texas Constitution is required
for the programs to be legally conducted. As such, TX HJR 37 was introduced.
The bill would amend the Lotteries and Gaming Enterprises; Bingo Games section
of the Texas Constitution to permit lawmakers to authorize “promotional
activities to promote savings.”
Like their colleagues in Texas, Delaware lawmakers are also
considering legislation, H 31, that would permit credit unions to conduct
prize-linked savings programs.
Bills impacting credit unions were introduced in New York.
One measure, A 410, would require credit unions to have a notary public available during business hours and another, A 472,
would bar financial institutions, including credit unions, from retaliating
lawmakers are exploring a bill that would prevent the public from being misled
and protect the reputation of credit unions and other cooperatives. Under H
1236, businesses that are not cooperatives or mutual organizations would be
prohibited from using the terms cooperative, co-op, or mutual in their names or
Champion for the Credit Union Movement
Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.
© 2017 Credit Union National Association
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© 2017 Credit Union National Association |
ADA Compliance Notice & Legal