New York credit unions score legislative victory

ALBANY, N.Y. - Credit unions in the Empire State scored a major legislative victory June 12 on the final day of the state legislative session. Both the State Senate and Assembly passed the Field-of-Membership Parity bill (S.8061-a and A.7701-c, respectively), which revises the qualifications for membership in state-chartered credit unions to allow SCCUs to serve, with the approval of the State Superintendent of Banking, groups with multiple common bonds, similar to federal credit unions. Select employee groups that apply to join a credit union's field-of-membership cannot exceed 3,000 members unless the superintendent determines the group is unable to establish its own credit union. In addition, a credit union can extend membership to persons and organizations in an underserved local community, neighborhood or rural district that's determined to be an `investment area' as defined in the Federal Community Development Banking and Financial Institutions Act of 1994. The Senate bill's chief sponsor, Sen. Hugh Farley (R-Fulton, Montgomery, Schenectady and Saratoga counties), chairman of the Senate Banking Committee reiterated his support for credit unions and his position that parity for state-chartered credit unions with federal credit unions is important for them to compete. He promised to continue to work for that. The Assembly bill was sponsored by Assembly Banking Committee Chairman Aurelia Greene (D-Bronx). The FOM parity bill also provides state-chartered credit unions more investment and deposit opportunities. Previously, a credit union was prohibited from selling or issuing shares to another credit union if the sale resulted in the aggregate amount of its shares held by other credit union exceeding 30% of its own capital. The measure removes this limitation. In another legislative victory for the New York State Credit Union League, a bill was passed that allows state and federal credit unions to establish pre-paid burial trust accounts for members.