TOPEKA, Kan. — With Kansas banks seeking to impose new field ofmembership limits, credit unions across the state were pumping uptheir lobbying activities last week to thwart banker-backedamendments to a CU-supported codification bill.

“Consumers should have the right to choose where they conducttheir financial business,” declared the Kansas Credit UnionAssociation in opposing FOM changes to its codification bill.

The latest attack on CU expansion began to surface in House andSenate committees in January and follows banker-backed hearingswhich started in 2006 to curb branch expansion by state CUs. Thebanking lobby has been urging lawmakers to restrict FOM growthaccording to strict federal guidelines.

If enacted with banker-added changes, CU operations would beneedlessly and “negatively impacted,” warned the KCUA.

The KCUA maintains FOM laws have worked well for 60 years withno need to alter them.

“This is all a matter of credit unions trying to protect therights of consumers,” said Haley DaVee, political affairsspecialist for KCUA.

In defeating bank bills, KCUA officials said they wereencouraged by support voiced by Senate Minority Leader AnthonyHensley (D-Topeka) who said, “I will do everything in my power tomaintain the status quo,” referring to a rival bill introduced bythe Kansas Bankers Association.

Late last month under guidance of KCUA, CU members joined by18,069 Kansas consumers presented a petition to legislators “toprotect their credit union.”

Two years ago, the Kansas CU industry faced formidableopposition from the current chair of the Senate FinancialInstitutions and Insurance Committee Ruth Teichman, a Staffordbanker. Teichman, a Republican who is from a well-connected bankingfamily, had suggested more study was needed to determine “whethercredit unions have grown beyond their original mission.”

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