April 10, 2014
Thursday Edition
UBIT breakthrough: IRS accepts CU verdicts in cases, opening door to refunds

There is very encouraging news on the issue of unrelated business income tax (UBIT): The Internal Revenue Service has essentially accepted the rulings in two court cases brought by credit unions, clearing a wide range of credit union products and opening the door for credit unions to receive tax refunds. The IRS action may also provide authority for credit unions that have continued to pay UBIT on these products to cease doing so.

In a March 24 memo, the IRS stated specifically that revenue from several income-producing activities is deemed "substantially related income" and is not subject to UBIT.

Those activities are:

  • Sale of checks/fees from a check printing company
  • Debit card program's interchange fees
  • Credit card program's interchange fees
  • Interest from credit card loans
  • ATM per-transaction fees from members
  • Sale of collateral protection insurance
  • Royalty income from the marketing of AD&D insurance (but not ordinary income from direct sales of such insurance)
  • Credit life and credit disability insurance
  • GAP auto insurance

(Income from the last two items are not subject to UBIT if the products are sold to members.)

Click here for the complete memo from the IRS on this topic.

Return to Top
SB 212 passes the Senate Subcommittee on Education Appropriations

This morning, SB 212 by Sen. Dorothy Hukill (R-Port Orange) passed the Senate Subcommittee on Education Appropriations. The bill, which would require high school students to take a course in financial literacy in order to graduate, passed with only one dissenting vote, Sen. Dwight Bullard (D-Cutler Bay). Prior to the vote, Sen. Bullard attempted to amend the bill to change the requirement to a voluntary elective math class on financial literacy. The amendment was soundly defeated and the bill passed as is.

The next stop for SB 212 is the full Senate Committee on Appropriations. The house companion bill, HB 367 by Rep. Heather Fitzenhagen (R-Ft. Myers) was not heard in any of its committees this session. However, with the senate bill still moving, this issue remains alive until the handkerchief falls on Sine Die which is May 2.

Return to Top
La Pine op-ed featured in The Gainesville Sun, Miami Herald

Tuesday's edition of The Gainesville Sun features LSCU & Affiliates President/CEO Patrick La Pine's op-ed on learning financial literacy.

In the op-ed La Pine explains the importance of teaching youth financial literacy and what the League is doing as part of its 2014 legislative priorities to promote financial literacy in the state of Florida. The op-ed also shows what the League's member credit unions are doing on their part to increase youth financial literacy across the state.

To read the op-ed, visit Top Stories on the League's website.

Return to Top
Southeast Credit Union Conference has 45 new exhibitors - view them now with the new virtual exhibit hall

There are 45 first-time exhibitors in the expo hall at this year's Southeast Credit Union Conference. Find out more about these exhibitors quickly and conveniently with the new 2014 Virtual Exhibit Hall.

The Virtual Exhibit Hall provides you with the opportunity to plan and locate the companies you want to visit during the conference. You can also gain insight on the products and services exhibitors are offering and learn more about their organizations.

To find the new vendors just look for the purple stars. Go to the Southeast Credit Union Conference and Expo website and click on the 2014 Virtual Exhibit Hall Map box on the bottom left side of the page and start learning about this year's exhibitors today.

Return to Top
In This Issue
Thursday Edition
UBIT breakthrough: IRS accepts CU verdicts in cases, opening door to refunds
SB 212 passes the Senate Subcommittee on Education Appropriations
La Pine op-ed featured in The Gainesville Sun, Miami Herald
Southeast Credit Union Conference has 45 new exhibitors - view them now with the new virtual exhibit hall
LSCU & Affiliates Media

Florida State GAC
The Florida State GAC wrap up video looks at the more than 30 lawmaker visits, topics discussed and the sessions over the two days including the regulator roundtable. NCUA Region III Director Myra Toeppe talks about her strategy in her first year. 

President's 1Q Video
LSCU president/CEO gives his first quarter video for 2014. He looks at the CUNA GAC, tax reform, and the new Southeast Credit Union Conference. He also talks about the 2014 Dues Rebate.

Upcoming Event Deadlines
Extended to April 22 Last Day for Early Bird Rate for OFAC & Bank Secrecy Act School – Birmingham, AL

Extended to April 22 Last Day for Early Bird Rate – Disaster Recovery Conference – Mobile, AL

Extended to April 24 Last Day for Early Bird Rate – Disaster Recovery Conference – Jacksonville, FL

May 2 Last Day for Early Bird Rate – SAS Credit Union Conference - Tallahassee, FL
Upcoming League Events
TODAY Spring Reg Compliance Update AL
April 15 Managing CUs' BYOD & COPE Policies
April 16 Official Demand for Member Funds
April 17 Examination Findings of the CFPB
April 22 Negotiable Instrument Precautions
April 23 Ability to Repay-Comply with SFPB Rules
April 24 BSA Officer Duties & Update
April 29 Art-Science of Keeping Software Current
April 30 How Board Can Protect Your CU
May 13 SAS Credit Union Conference
Follow Us
© Copyright, League of Southeastern Credit Unions & Affiliates
Phone: 866.231.0545
3692 Coolidge Court | Tallahassee, Florida 32311
22 Inverness Cntr Pky, #200 | Birmingham, Alabama 35242
To ensure delivery, please add 'submissions@lscu.com' to your email address book or Safe Sender List. If you are still having problems receiving our communications, see our white-listing page for more details.

To safely unsubscribe from this group, click here.
Home Action Center Contact Us CU Job Center Forward to a Friend Back Issues Twitter Facebook YouTube