Sen. Johnson Returns to Work, Vows to Run for Re-Election

WASHINGTON — Senator Tim Johnson (D-S.D.), the second ranking Democrat on the Banking Committee, plans to return to work with the rest of

the Congress in Sep-

tember following a rare brain hemorrhage last December.

“Before I get too far along in my remarks, it must already be clear to you that my speech is not 100 percent,” he told constituents during his first trip to South Dakota since his operation. “My doctors tell me that it will get there and in fact if you ask Barb, she will say that I am already talking too much. So, let me ask one thing of you tonight, if you will bear with me in this, I will promise you that when my speech is back to normal, I will not act like a typical politician and overuse the gift.”

He reassured them: “I am back.” Johnson, who played a key role in federal deposit insurance reform, also told ABC News “I expect to run and to win” in 2008.

PSCU Advising CUs to Turn to 12-Year Olds

ST PETERSBURG, Fla. — Has your credit union considered starting to talk to 12 year olds about the benefits of being a credit union member? If it hasn't maybe it should, according to PSCU Financial Services, the card processing and payments CUSO for more than 500 credit unions that use the First Data Corp. card platform.

PSCU has even rolled out an educational program to help member CUs conduct the conversation with the 79 million people who make up Generation Y. The cooperative has created a series of Webinars in which attendees will learn how to communicate with this media-savvy but ad-weary generation. Topics will include: blogs, viral marketing, social networking outlets and the power of myspace.com.

“As we look to the future, credit unions need to build a strong membership base of young adults. The good news for credit unions is that the values of these young adults are

a perfect match for the mission of our industry,” said David J. Serlo, president and CEO, PSCU Financial Services. “They appreciate corporate re-sponsibility and prefer brands known for involvement with not-for-profit causes and community activism. They therefore favor smaller, local institutions like credit unions that offer personal attention over large national corporations with multi-million-dollar advertising campaigns.”

PSCU said it has created an educational program, dubbed the New Age Program, that focuses on marketing and advertising strategies aimed at each stage of the new generation from age 12 to adulthood.

Treasury, CUs Highlighted As Potential Opponents to Communities First Act

WASHINGTON — Treasury and credit unions were named as possible opponents to the Communities First Act (H.R. 1869) in a July Congressional Research Service report.

The bill would provide some regulatory relief in the way of reporting and documentation in addition to tax measures like repealing the alternative minimum tax at a cost of $842 billion over 10 years, deferral of tax on interest earned on CDs and excluding loans in rural areas from income, according to CRS. It would also expand Subchapter S tax benefits.

The report noted that certain communities, farmers, manufacturers, investment bankers offering municipal bonds, and recipients and issuers of deposit interest on CDs are likely additional supporters. It added, “Opponents may include credit unions, which are not pleased with this measure because banks would get tax benefits while continuing to attack tax benefits of credit unions.” CUNA said the organization is not actively lobbying against the bill, but credit unions would be disappointed to see the measure become law as written.

Additionally, the report stated, “The Department of Treasury may object to the measure's bank-related tax breaks, since it has often opposed many tax relief proposals for bankers and their customers. The measure would alter the tax climate for economic sectors beyond banking, and could thus face additional objections from those not benefited and those–including the Treasury–concerned over nonbank-related revenue losses.”

California Appropriations Committee Passes Data Protection Legislation

SACREMENTO, Calif. — The next stop for the California Credit Union League-backed consumer data protection bill is a full state Senate vote.

The Consumer Data Protection Act (AB 779) passed the California Senate Appropriations Committee Aug. 30 by a vote of 13-2, one step closer to becoming law. The legislation provides much needed protection for consumers faced with the damaging effects of data breaches and would allow financial institutions to recoup the costs of reissuing credit and debit cards.

Consumers would be informed of which retailer lost their card information and when under AB 779. It would make the responsible retailer liable for the cost of replacing the compromised cards, require retailers to follow key provisions of the Payment Card Industry data security standards to ensure proper retention and protection of credit and debit card information.

“The passage of AB 779 in the Senate Appropriations Committee gives us confidence that California legislators are making strides toward ensuring the security of consumers' personal data at the retail level,” California league President and CEO Bill Cheney said.

The bill could get a vote on the Senate floor as early as this week.

Instant Insights /

News Briefs 09/12/2007

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