CU Public Funds Score: One Win in Oregon, Loss in Colorado
When it comes to credit unions and public funds legislation, it's been a mixed bag so far this winter with Oregon Gov. Ted Kulongoski ready to sign a milestone industry bill any day that will enable CUs to bid on municipal funds above $250,000.
The new law takes effect Jan. 1, 2013.
But in Colorado, a bill backed by the Credit Union Association of Colorado got stalled in a House committee, a victim of what legislative sources said were "higher priorities-like balancing the state budget."
The proposed Colorado bill had the backing of Colorado Counties Inc. a municipal group, as well as many rural agencies in bankless towns eager to link up with a CU. However, the press of economic concerns coupled with opposition from the banking lobby has apparently killed the bill, said CUAC, which pledged to resume its campaign for enabling legislation in the next session.
In Oregon, Pamela Leavitt, senior vice president/governmental relations, said her trade group "has asked for a signing ceremony and it remains to be seen whether we'll get it based on a large number of groups that have asked the same" on bills they got enacted during a special session of the legislature.
The new Oregon law, which easily passed both the House and Senate last month, would have taken effect in 2012 but was negotiated two years out "since we are now required to help set up a collaterized pool with the treasurer's office plus there are staffing issues as well."
CUAO agreed to the delay as a supportive move, she said.