ARLINGTON, Va. -- Nowadays when a member calls up NAFCU with a legislative question, they are promptly directed to the staff expert on the issue.

Whenever new senior staff comes aboard, changes are to be expected. After spending some time at NAFCU, Senior Vice President of Government Affairs Dan Berger sat down with Brad Thaler, director of legislative affairs, and discussed ways "to try to make the lobbying team a little more efficient in terms of knowing issues and being more responsive to members so when members call up we have someone specifically who is the expert on that issue."

For example, NAFCU Associate Director of Legislative Affairs Dillon Shea is the point person on interchange fees and shares the conversion issue with Berger. Though the debate over interchange fees has not gotten beyond the hearing stage at this point in the process, it is a big issue for credit unions that issue or are considering issuing credit and debit cards.

"With interchange, there's been a hearing in Senate Judiciary. Energy & Commerce, as well, held a hearing on the issue...But, the merchants, this is obviously something they're trying to make a push on and we will respond but I don't think they'll be too successful anytime in the near-term," Shea said. The bulk of the interchange fee goes to issuers and retailers are arguing that the fee scales are too complex and not transparent, as well as being anti-trust.

Shea would not make any predictions for legislation on the matter for the next Congress. Crossing the Lines

And conversions to mutual savings banks have been a front-and-center credit union issue for a couple of years. Freshman Congressman Patrick McHenry (R-N.C.) splashed himself on credit unions' radar when he introduced legislation to rein in NCUA's authority over conversion disclosures; Berger was on the other side of that issue with America's Community Bankers at the time, which was the group to push for the legislation.

"[ACB] basically originally drafted legislation to voice concerns they had about the process," Berger explained. "NAFCU probably handled the situation the best in the entire financial services industry in working closely...in educating him on the whole process and looking for common ground to work on. The relationship is still there. I consider Congressman McHenry a friend as well as his staff. There are points that we agree to disagree on but he's got just a terrific open door policy and a terrific staff."

Shea added, "We've spoken with Mr. McHenry quite a bit. He's indicated to us that even he no longer thinks the legislation is necessary and that he thinks most of it can be worked out through the regulatory process. Even though there was quite a response when he first introduced the bill, the way that we've worked with Mr. McHenry since then has worked out pretty well."

An interesting point about Shea's relationship with Republican McHenry and his office is that Shea's background is on the Democratic side, having served on the staff of Representative Darlene Hooley (D-Ore.) before coming to NAFCU. Because credit unions tend to be nonpartisan, it is important to be able to work across party lines.

"I also think it just jibes with the rest of our lobbying philosophy here," Shea said. "We're not necessarily trying to throw bombs but are usually trying to work with people to resolve issues. If you look at Congress now and you look at Congress six years ago, most of the faces are the same. If you try to throw bombs now, they're still probably going to be here several years down the road and ultimately it's probably not going to be the most successful way to go about things." As an example, he pointed out that Spencer Bachus (R-Ala.) voted against H.R. 1151, but NAFCU developed a good rapport with him and got their point of view across and he has become a strong credit union ally and could be the next chairman of the House Financial Services Committee. An Ownership Society

Berger also stated, "From a career development standpoint, it's good for everybody that has a portfolio of issues to be able to take in an issue for a landing, start to finish, instead of just tinkering around the edges or just being involved just a little bit. Everybody has an opportunity to be involved, whether it was the drafting of the legislation, passing it, amending it, working with the coalitions."

Debbie Kwon-Moore, associate director of legislative affairs at NAFCU, said she appreciates the "opportunity to take ownership" and get to know staffers she might not have known. "Data security is my baby," she explained, and she has met with staff of the Veterans Affairs Committee that she may not have worked with otherwise.

"We've been working very hard on meeting with leadership and their staff in addition to all members of Congress, not just the ones in financial services," Kwon-Moore continued. Prior to the August recess, she met with Senate Banking Committee staff on their version of data security, which includes a carve-out for financial institutions covered under Gramm-Leach-Bliley, that NAFCU favors.

The status of the bill in the House was very topsy-turvy throughout the year between the Financial Services Committee bill and Energy & Commerce's version and talk of a potential compromise. "Even knowing that potentially something might not happen prior to the August recess--which that's actually what happened--I don't think it deterred us from maintaining relationships with all members of Congress and letting them know why it's important and how it affects credit unions. That's something we're going to continue doing and also being a resource as well." Down to the Wire

One bill that credit unions are very hopeful for is the Financial Services Regulatory Relief Act. "There are a number of credit union issues in there, a number that we have helped draft over the years as an association we had a particular interest in. We're going to try to focus on moving regulatory relief forward," Thaler, who serves as NAFCU's expert on this and the Credit Union Regulatory Improvements Act, explained.

"There's a desire to get a bill done in both the House and the Senate...In terms of legislative time, particularly in the Senate, they don't have time to bring a regulatory relief bill to the floor for a debate and up and down vote, so essentially, they need a package that can go by unanimous consent in the Senate," he said. Process is crucial in any legislation, particularly in the waning days before elections, and if there is anything objectionable in the bill, it only takes one Senator to hold it up. Additionally, Thaler said while he'd "never say never" about Congress, there really is not time to hold a formal conference to work out the details either.

Do not fear, though. Thaler will not be out of a job if he is proven successful in helping to move the legislation into law. "I'm sure there will always be need for relief from regulatory burden for credit unions," he said. "I suspect there will be provisions, some we know of now and some that may emerge, that will need to be addressed." The Senate version is pared down from the House bill that received wide, bipartisan support in the House this year.

Thaler cautioned, "You may not see coalescing around a large package right away." However, there are still provisions of interest to members of Congress that could continue into the future.

Shea pointed out that NAFCU's Congressional Caucus is held at a critical time in the legislative and political process. "Also from a timing point of view, it does work well with issues like regulatory relief especially where it's almost there and you've got to push it over the finish line," he explained.

"When [members of Congress] hear that ABC Federal Credit Union is having trouble with this particular issue and this little provision that's noncontroversial in a reg relief bill will provide relief to them and help them better serve 150,000 of your constituents' financial services needs, that gets the interest of members of Congress," Thaler added. All agreed that those on the ground and in the trenches present issues more convincingly.

Speaking of running out of time, retiring House Financial Services Committee Chairman Mike Oxley (R-Ohio) is making a push to get legislation through to establish a new regulator for the government-sponsored enterprises. "Chairman Oxley wants something done. Chairman Shelby's on the record numerous times of wanting a bill on the President's desk by the end of the year," Berger outlined. "If you really think about it, each bill, the House bill and the Senate bill are almost 300 pages each, so you have this huge bill of this magnitude and you're talking about one single provision that's left to negotiate, which is the portfolio limits."

He added, "Credit unions use the secondary market because of our capital restrictions. They have to sell mortgages to the secondary market, so it's very important." Money and Politics

NAFCU Political Director Erica Anderson, who has a long resume in politics and political action committees despite her youthful appearance, handles NAFCU/PAC and the associated events as well as NAFCU's grassroots efforts along with Legislative/PAC Assistant Amanda Brabson, a graduate student at the George Washington University Graduate School of Political Management. "We handle all the fundraising...attend events. We make sure NAFCU's represented."

NAFCU is well on track to make its fundraising goal of $300,000 for the cycle, having already raised $219,000, according to Federal Election Commission filings and the group.

On the grassroots side, Anderson explained, "We send out e-mails and correspondence with our members to have them contact their members of Congress trying to get co-sponsors we need [or] constituents calling in on issues. It just depends on the issue."

NAFCU has also been beefing up its Web site (www.nafcu.org) to allow members to look up and contact their members of Congress. Additionally, NAFCU members can look up information about the current congressional campaigns and voting records of constituents, which is important in an election year.

"Just a couple months ago we sent a letter to every member of Congress...with a list of all the federal credit unions in their state or their district," Berger said. The purpose was to arrange meetings or walkthroughs of the credit unions; Financial Services Committee Member Paul Gillmor (R-Ohio) was one of a handful of lawmakers who took the opportunity.

He said NAFCU also plans Get Out the Vote efforts in the near future. What's Not to Love?

"I've been lobbying since my first job out of college and I lobbied for the farm bureau down in Florida. I just love the process," Berger said of his career. "I love the political process. I love the legislative process. I equate it to a chess match. You've got multiple pieces, multiple interest groups out there, multiple constituencies. I like the strategy side of it all. I've been a political junky since junior high."

Thaler said that it is also the challenge for him. "You never know what's going to happen. There's not a typical day necessarily because things are constantly in flux and it forces you to be on top of things and make strategic decisions on different things that are going on so it can be very interesting at times, which can be good and bad, but it's always a challenge," he commented.

The other challenge is making your presence known from among the thousands of competing interest groups out there. "We're not the biggest player in town but we have the reputation and we're very efficient in what we do and I think that helps us. But we're not only in the financial services arena, but we're competing with issues beyond financial services," Thaler said.

How does NAFCU compete with these other forces? "We go to the Hill a lot," Berger interjected.

Kwon-Moore came from a different perspective having been lobbied as Congressman Steven LaTourette's senior legislative assistant. She compared the job to an air traffic controller where she handled several issues at once but did not get to really focus on any one them. "Having handled banking issues, I got to know Brad really well, and with LaTourette being a credit union friend, it was a seamless transition for me to join NAFCU," she commented. "What was really wonderful for me is now I only have to concentrate on credit union issues."

From her perspective as a former staffer, Kwon-Moore said how some constituents do not value their own voice on the Hill because they are not with large firms. "That's something that we really try to get across with our credit union folks that come in for Caucus. Meeting with Senators and representatives and though you may not meet with the actual [member of Congress], it's vital to speak to the person who handles credit union issues because a lot of times, that person is the key to that member of Congress," she said. In particular, Shea said he enjoyed working at NAFCU because they all get together outside of work as well. "I like NAFCU because it's not just that we get along well, we're all friends...We go out together for lunches, for dinners after work all the time, not for any sort of work event," he said.

Which is good because they spend a lot of time working. "It's not necessarily a nine-to-five job," Thaler said.

"It's a nine-to-midnight job," Berger said laughing.

Fundraisers can start early in the morning or run late into the night and on weekends, as can Congress in their legislative work. "I've given up sleep," Thaler quipped, and with a second baby on the way, this is serious business.

"Everybody in D.C., not just us, we follow the congressional calendar," Kwon-Moore said. "That's our official calendar that we follow and so we get used to that. We know Tuesdays, Wednesdays, and Thursdays are going to be long days." She said her husband is a lobbyist too, so she has extra understanding at home.

Additionally, each lobbyist will be taking some time off this fall to work on campaigns. --scooke@cutimes.com

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NAFCU Establishes Issue-Specific Legislative Gurus to Streamline Government Affairs

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