The 2018 state legislative session was challenging for anyone at the state Capitol, and was more of a session of “what didn’t pass” with most industries saw their key issues fail early in the session. However, it was a very strong year for credit union interests. For a final wrap of the top 55 issues please see the adjacent article – but from a lobbying perspective, here were the top 10 wins for credit unions:
- Credit Union Charter Enhancements one of the Few Bills to Pass! H.B. 780 reflects the work between DBF, credit unions and others to enact positive changes for the industry. Credit union provisions include nomenclature protections, a process for state-chartered credit unions to utilize federal powers, strengthened liability language for directors, added protections for director emeritus roles, outlining ability to purchase or fund specific life insurance plans, and eliminating the unnecessary regulatory burden to report all employee loans to the board. However, this bill did not happen by accident nor move forward on its own volition. GCUA was engaged with the DBF last year to secure the ideas developed with a credit union task force, engaged the two banking trades prior the state session beginning, and was a part of a core group that spent significant time lobbying legislators and other interests to move it forward. GCUA is pleased to see it as one of the few bills to go to the Governor with the credit union provisions intact.
- Change in Regulations on Credit Insurance Obtained. GCUA consistently looks for avenues to alleviate regulatory burden, and work with the DBF in and out of the state session for a working relationship to advance improvements. However, relief can come from other areas and other relationships that have been developed over the years. GCUA worked with the Insurance Commissioner’s office to pass H.B. 938 to do just that, and provide a different manner to obtain one company-wide license for credit insurance sales as opposed to licensing each individual.
- Real Estate Lending Operations Protected. Does your credit union offer mortgages? HELOCs? Lend money towards the purchase of mobile homes (or real property that has a mobile home on it)? Lend to members of the military? Secure any type of loan using real property? Then this session could have impacted you and how you serve your members. 2018 had more than its normal share of bills that could have impacted lending, and GCUA was heavily engaged in securing amendments, speaking with legislators on concerns, testifying in hearings, and ensuring that your credit union operations were not impacted.
- Compliance Issues Adverted. This year there were many issues addressed in the halls of the Capitol to prevent credit unions from having compliance issues in in the future. These were tackled with a variety of lobbying tactics: from research on potential implications and engagement with legislator (such as with S.B. 465 on interest and usury), procuring amendments to bills to protect credit union operations (such as with H.B. 775 on getting consistency in regulation of appraisal management companies), and stopping outright negative issues through regular interaction with legislators (as with H.B. 66 on wire transfer fees).
- Auto Lending Operations Secured.During the session there were 42 bills that sought changes that could impact credit union auto lending operations. These included bills surrounding towing issues, where GCUA worked to protect notification standards to lienholders; TAVT bill hearings watched to protect credit union operations; electronic titling bills, and ignition interlock bills that were monitored to protect second-chance auto lending programs.
- Amid a Sea of Tax Bills, Credit Unions Were Protected.There were 212 bills that sought changes in tax law that required close monitoring on behalf of credit unions due to potential implications. And amid the large number of hearings on tax reform, reducing tax credits, and looking for other avenues of income for the state, credit unions were protected.
- Member Interactions Protected. H.B. 689 sought to expedite the payment of funeral expenses when an individual dies without a will, and without a joint member on his or her account, and was an issue that resonated with legislators. And while the funeral home needs to receive payment, the changes sought would inadvertently place financial institutions in the awkward position between the family and the funeral home, and create the situation of disregarding the requests of the deceased family members (and uncertainty of what took precedence). GCUA worked closely and often with Rep. Williams to create a compromise, and while it did not pass, GCUA looks forward to continuing to work on this issue to insure payment but protect against uncertainty and likely frustration on those still grieving of where the member’s funds went.
- Open Door with Power of Attorney Reform: Lobbying is the outcome of year-round effort, and not limited to the session. A consistent example of this can be seen with Chuck Efstration (R-Dacula)’s efforts with power of attorney reform. GCUA had held a Hike at Home meeting with him back in the summer of 2016 to create a relationship, was engaged with him during the 2017 effort to reform the power of attorney statue, worked with him in the summer of 2017 where he participated in a compliance call for credit unions to educate them on the changes, and credit unions were a part of his working group that discussed the provisions of the new bill H.B. 897 before it was introduced this year in 2018.
- Uncovered Issue! Each day of the session all the new bills introduced are reviewed carefully – but many groups forgo looking at “local” bills, which are typically innocuous measures, and go through the process quite differently due to the type of changes they contain (no hearings, no debate, and are voted on quietly in the process). But an ounce of paranoia is worth a pound of cure as GCUA uncovered an issue with local bill H.B. 1036, alerted like-minded industry groups, and engaged the legislator to procure an amendment. This bill would create the unintended consequence of invalidating titles and disrupting mortgage lending (as well as title insurance) for any loan that involves real property in Fulton County, and finding the bill when we did provided time for the quick turnaround to ensure the version that passed contained the amendment needed to protect lending.
- Positioning Credit Unions for Success. It is interesting to see other groups’ state Legislature strategy. Some introduce bills with no realistic intent of pursuing them, only to obtain press on an issue. Some push multiple topics and lose rather large issues for their industry as the political capital has been spent on other issues. And some groups view each and every issue as the one “war” – instead of its being one step in an overall strategy. For credit unions, positioning the industry on a legislative front is something that is pursued systematically – analyzing the issues, the political environment, the people and any applicable coalitions, the engagement of legislators, and the political capital it takes not just to achieve legislative success in pushing forward bills – but preventing the negative ones from happening. It takes being aware of other industries’ legislative fights and lobbying successfully to prevent credit unions from becoming unintended collateral damage, and teeing up issues for the future. It takes having credit unions build strong connections with legislators so they see the positions being lobbied from an in-district view. And by utilizing this strategy, it positions credit unions for consistent success!
