ADVOCACY
Advocacy 2013 Alabama Legislative Session Jason Cochran, director, Governmental Affairs (AL), LSCU For the past two years the Republican majority in the Alabama House and Senate has flexed its muscle and passed pieces of legislation that see most of their goals met. Some, such as charter schools, were defeated, but calling the last two sessions “successful” would be an understatement. One common theme in Alabama and most other states is the health of the operating budgets, the Education Trust Fund, and the General Fund. For the first time in a while, it is relatively quiet on that front. That is not to say there won’t be issues, there surely will be, but the Education Trust Fund seems to be in pretty good shape at the moment. Legislators and special interest groups are even talking about raises for teachers and support staff. The General Fund released a sigh of relief when Alabamians, earlier this year, passed an amendment that allowed the transfer of monies from the Oil and Gas Trust Fund to the General Fund. State agencies were able to fend off drastic cuts to personnel for the immediate future. One caveat is that there will be legislation to require the repayment of those dollars introduced in 2013–something that may be easier said than done. One proposed measure that will affect all of this is an early retirement package for employees of the state. It is gaining serious momentum as a cost-cutting measure for the General Fund Budget and legislation will be introduced and supported by the Governor’s office. While there have not been any major announcements of agenda’s from the Republican majority or Democratic minority at this date, Alabama should expect the same as the past two years. The Republicans in the House and Senate have made increasing government efficiency, cutting government waste, and improving on Alabama being a business-friendly state as their top priorities and that will not change. With the budgets in a better condition and redistricting out of the way, an even greater focus will shift to these important agenda items. What will be introduced in 2013 to advance these goals, we will have to wait and see.
Credit unions in Alabama should expect another exciting legislative session in 2013. LSCU has once again put together an aggressive legislative agenda with public deposits and a modernization of the Alabama Credit Union Act as the headliners. In 2012, LSCU introduced legislation that would allow Alabama credit unions the ability to accept public deposits. As many of you are aware, the SAFE Act requires public funds to be deposited into financial institutions that are insured by the FDIC. The 2012 legislation added language that financial institutions insured by the NCUSIF could also accept public deposits. The legislation was heard in the Senate Banking & Insurance Committee, but failed to receive a recorded vote. In 2013, LSCU will continue to advocate and push for the passage of this common sense legislation. Credit unions are insured by the federal government, just as other financial institutions are, and should not be excluded from this right. Another piece of legislation that LSCU will be pursuing is a modernization of the Alabama Credit Union Act. Over the past year, a credit union work group comprised of state-chartered credit unions throughout Alabama met to review the Alabama Credit Union Act and recommend changes that would help state-chartered credit unions. These recommendations have been prioritized, and LSCU is working on legislation for 2013. The Alabama Credit Union Administration (ACUA) also wants to make changes to the Act, so LSCU is currently meeting with the ACUA in hopes of coming together on one, unified bill. There will always be other pieces of legislation that will impact credit unions either positively or negatively. Right of Redemption legislation, bill on electronic titling of vehicles, and others are certainly a possibility for 2013. LSCU plans to support and actively lobby on behalf of credit unions whenever these may arise. Look for weekly updates in eSignal once the session begins on February 5, and be ready and available to contact your representative or senator on credit union issues. If you have any questions or concerns, feel free to contact any of our Governmental Affairs team. ■
LSCU plans to support and actively lobby on behalf of credit unions whenever issues may arise. Look for weekly updates in eSignal, the League’s weekly electronic newsletter once session for both states begins, and be ready and available to contact your representative or senator on credit union issues. If you have any questions or concerns, contact the LSCU Governmental Affairs team.
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A Magazine of the League of Southeastern Credit Unions
SIGNAL: Vol. 3, Issue 4