While Congress is on a short recess this week for July 4th, there were some potential fireworks the week prior to this break against a provision that would potentially exclude credit unions from military lease provisions. To combat this, on June 26th CUNA wrote to oppose a provision in the U.S. House version of the National Defense Authorization Act H.R. 5515 that could potentially exclude credit unions from the current resources furnished to them on military bases. In the letter, they cited that this provision would be a detriment to credit unions, while granting banks access to the same bases.
Here’s how it works: Currently, the furnishing of office space and land to on-base credit unions is governed by Section 124 of the Federal Credit Union Act. This language exempts on-base credit unions from costs related to leases, utilities and services on military bases. Section 2808 of the House version of NDAA was intended to treat federal or state chartered insured depository institutions equally with respect to the financial terms of leases, services, and utilities. Unfortunately, its definition of “insured depository institutions” excludes credit unions – a common issue that is seen in bill drafts in the Georgia state Legislature that if left unchecked and uncorrected, could create confusion and burdens if credit unions have to explain why a base should go to the Federal Credit Union Act to receive the same benefits provided to other institutions. And given the large number of bills that are introduced (and amended) in federal government, the avenues for issues such as this are high.
This federal bill is far along in the legislative process, and a provision like this could easily pass unnoticed – and if this provision remains in the bill, it would have a negative impact on those military credit unions and the members they serve. GCUA has engaged U.S. Rep. Austin Scott (R-8), one of the members of the conference committee, to ensure that Georgia credit unions (and all credit unions) are not impacted. Stay tuned!
