A legislative committee is expected to review a proposed billthat would permit Oregon-based credit unions to exercise powersavailable to out-of-state credit unions that are doing business inthe state.

Senate Bill 520 was referred to Oregon's House Committee onBusiness and Labor April 23 after it had been unanimously passed bythe state Senate April 15. The House Committee has not yetscheduled a hearing for the proposed bill.

Harold B. Scoggins III, a Portland, Ore., attorney representingthe Northwest Credit Union Association, said it is increasinglycommon for state-chartered credit unions from other states to serveOregonians. Some of these credit unions are also operatingbranches.

“By our conservative count, there are 114,832 credit unionmembers living in Oregon that are members of a credit unionchartered outside the state,” Scoggins told Oregon's SenateCommittee on General Government, Consumer and Small BusinessProtection.

“These credit unions are competing directly with Oregon creditunions for business with Oregon members. If such (out-of-state)credit unions have powers not available to Oregon credit unions,they may have a competitive advantage over Oregon credit unions inserving those members,” Scoggins said.

To remain competitive in an increasingly national financialmarketplace, Scoggins added, Senate Bill 520 would give Oregon'sDepartment of Consumer and Business Services the authority topermit Oregon credit unions to exercise the same powers availableto out-of-state credit unions doing business in Oregon.

“This will offer the competitive parity with such credit unionsin the same way that the federal parity power equalized competitionwith federal credit unions,” Scoggins said.

According to the NWCUA, the bill also would:

• Clarify the role of the supervisory committee ingovernance-related matters;
• Extend additional liability protection to credit uniondirectors and officers;
• Remove the wording in Oregon law which requires the board to“perform other duties as the members of the credit union from timeto time direct and perform or authorize any action not inconsistentwith this chapter and not specifically reserved by the bylaws forthe members;”
• Remove language in Oregon law which permits a credit union toemploy officers other than the president/chief operating officerand a security officer;
• Make the declaring of dividends a delegable power under Oregonlaw; and
• Increase the limit on loans to one borrower to the larger of$100,000 or 15% of a credit union's equity.