June 3, 2014
Tuesday Edition
Alabama Credit Union Association legislative update

Inside the Republican and Democratic Primaries
For the past four years the Republican Party has dominated Alabama politics and that trend looks to continue as we head into the 2014 elections. While Democrats and Republicans are placing candidates in all of the major congressional and statewide races, most of your winners will be decided this evening and Democrats are likely only to hold on to the one congressional seat that they currently hold, AL-7. The one congressional race that has seen the most action is AL-6, the seat that is open due to the retirement of Rep. Spencer Bachus.

The LSCU endorsed current Alabama House Member Paul DeMarco (R-Homewood) in the race. The early indication is that DeMarco is most likely securely in the run-off election that will be held in a few weeks. The League has had numerous meetings with DeMarco and feels that he is the best candidate for credit union issues. The major question to be decided is who will face DeMarco in the run-off. Polling currently has DeMarco in first with 31 percent of the vote and current State Sen. Scott Beason in second with 20 percent. Beason is the local Tea Party favorite and that will carry a lot of weight in this election. Rounding out the top four are Birmingham businessman Will Brooke and Dr. Chad Mathis, each at 13 percent. At this point Beason, Brooke and Mathis are battling for the second place finish and the opportunity to face DeMarco head to head. 

In Alabama’s statewide elections, the top three offices are very safe to stay in the hands of the incumbents. Gov. Robert Bentley, Lt. Gov. Kay Ivey, and State Treasurer Young Boozer all look to have easy re-election bids all the way through November. The race for secretary of state and state auditor are more contentious due to these being open seats; but all three will be decided after the Republican primary and run-off.

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Washington wire

NCUA’s Proposed Rule on risk-based capital
Even though the comment period is closed, the League and CUNA's efforts to educate lawmakers and to encourage them to intervene with the NCUA continue. In addition to the 324 Members of the House who sent the King-Meeks letter, several senators have also weighed in.

CUNA and League discussions with members of Congress, particularly on the Senate Banking Committee and the House Financial Services Committee – the committees with oversight responsibilities over NCUA – continue. It is expected that members of these committees and other concerned Members of Congress will weigh in on the proposal in the coming weeks. As part of that effort, you are encouraged to reach out to your senators to educate them regarding your concerns with the proposal and the impact it would have on your state and to encourage them to write the NCUA as others have done.

Financial Services Markup
The House Financial Services Committee delayed a mark-up of 13 bills that was scheduled last Thursday. Since the House is out of session this week, it is expected the mark-up will take place the week of June 9 when the House is back in session.

Click here to read this week's complete legislative update. 

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Merchants want extension to decide if to appeal interchange loss to Supreme Court

The merchant coalition in  NACS v. Board of Governors of the Federal Reserve System filed an application Friday with the Supreme Court seeking an additional 30 days to decide whether to file a petition for writ of certiorari. In plainer terms, the merchants have filed a document which a losing party may file with the Supreme Court asking the high court to review the decision of a lower court.The merchants' petition is currently due to be filed by June 19. The 30-day extension, if granted, would move the deadline to July 21.

In early May, the merchants let an important deadline pass and did not request a rehearing of their case--making an appeal to the Supreme Court their only option to move forward--if they indeed do choose to move forward.

The merchant interchange claims challenged the Fed's implementation of a Dodd-Frank Act-imposed debit interchange cap as too high. CUNA and its partner members of The Clearing House Coalition maintain that the cap, in fact, is too restrictive.

A ruling in March by the U.S. Court of Appeals for the District of Columbia Circuit unanimously rejected claims that the Fed interchange rules violated the plain text of the Durbin Amendment to the Dodd-Frank Act. The ruling became official May 12.

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Military payday lending report released

The U.S. Department of Defense recently made public a report that looks into the Military Lending Act. The report, named the "Military Payday Lending Report," specifically determines whether changes to the act are needed to protect military members from predatory lenders. This report has been released to the Hill and offices within the Pentagon.

The report shows a justification for amendments to the Military Lending Act which protects covered borrowers from continuing and evolving predatory lending practices. The report finds that 11 percent of enlisted military members use payday lenders with annual percentage rates over 36 percent APR. Financial counselors and military attorneys say that the high price of credit contributes to military members resorting to predatory lenders. 

Any credit union that deals specifically with military members is encouraged to look at the report. Visit the LSCU Top Stories to read the full report.

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CU awards 15 FL students with four-year scholarships

Fifteen students from South Florida will have their college educations paid for in full, thanks to South Florida Educational FCU, which awarded a total of $197,000 to the winners of its college scholarship program this year.

The winners of the 19th annual Hubert O. Sibley scholarship award were named in May. 

"We take pride in helping these students fulfill their educational goals," said Michael DiBenedetto, president/CEO of the Miami-based $843 million-asset credit union. "It's a great feeling to be able to help fund their college efforts."

All 15 students receive a full-ride to any of Florida's 11 state universities through the Florida Prepaid University Plan. The scholarships cover tuition and fees for 120 undergraduate credit hours, or about four full school years.

Scholarships through this program, founded in 1995, have been extended to 278 students, totaling about $3 million.

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In This Issue
Tuesday Edition
Alabama Credit Union Association legislative update
Washington wire
Merchants want extension to decide if to appeal interchange loss to Supreme Court
Military payday lending report released
CU awards 15 FL students with four-year scholarships
LSCU & Affiliates Media


2014 Alabama Cooperative Image Campaign Ad 
The LSCU Cooperative Image Campaign features a TV ad illustrating the credit union difference. Viewers are sent to www.betternameforbanking.com to learn more.



2014 Florida Cooperative Image Campaign Ad
The LSCU Cooperative Image Campaign features a TV ad illustrating the credit union difference. Viewers are sent to www.betternameforbanking.com to learn more.

Upcoming Event Deadlines
June 18 Last Day for Early Bird Rate – LSCU BSA Essentials & Advanced Workshops – Mobile, AL
June 18 Last Day for Early Bird Rate – LSCU BSA Essentials & Advanced Workshops – Huntsville, AL
July 1 Last Day for Early Bird Rate – Southeast Supervisory Committee Conference – Point Clear, AL
July 15 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Mobile, AL
July 15 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Huntsville, AL
Upcoming League Events
TODAY - Improving Teller Performance
June 4 - Recover Unauthorized ACH Withdrawals
June 6-13 - SE CUNA Management School
June 11-14 - Southeastern CU Conference
June 11 - CTR Report Line by Line
June 12Handling Difficult Members
June 17IRA Rollovers & Transfers
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