Michigan Senate Set to Take Up CU Modernization Act

PLYMOUTH, Mich. – The full Michigan Senate was expected to take up legislation on Wednesday, Oct. 15 and Thursday, Oct. 16 that will significantly overhaul the state’s credit union laws and regulations for the first time since 1986. The Michigan Credit Union League hoped Senate Bill 496 would be taken up for a vote by the full Senate on Oct. 14, but Patrick LaPine, VP of government affairs said many Senate members, including the bill’s sponsor, Sen. Shirley Johnson (R-13), chairman of the Senate Appropriations Committee, were taken out of session that day by of a revenue sharing conference. An agreement already reached by Senate leaders and representatives of the MCUL and the Michigan Bankers Association has cleared the way for the measure to be passed by the Senate. MCUL President/CEO David Adams said “both banks and credit unions made concessions on issues.” He added that, “Even after concessions were made, we still have a good piece of legislation for Michigan credit unions to be an added incentive for them to be state-chartered credit unions.” The agreement addresses remaining unresolved issues pertaining to Senate Bill 496, and it retains key provisions important to credit unions such as allowing them to establish their own guidelines for membership subject only to safety and soundness provisions enforced by regulators, and permitting CUs to provide limited services to non-members within their fields-of-membership. The compromise agreement also includes a `Do-Not-Oppose’ position by the MBA, which means the legislation should move quickly through the remaining legislative process. Once the Senate passes the measure, it will move to the House Commerce Committee and then the full House for a vote. If there are no changes made to the measure, it will be sent to the governor’s desk for his signature. Adams said the League already has support for the measure lined up on the House side including Speaker of the House Rick Johnson (R-102) and House Commerce Committee Chairman Clark Bisbee (R-64). In addition, many members of the House Commerce Committee are co-sponsors of the measure. LaPine said the League would like to see the bill sent to the governor for signing by mid-December. Adams said 170 credit union representatives participated in Capital Day in Lansing on Oct. 14 to meet with legislators and shore up their support for the bill. The annual event, which Adams described as a “state version of the Hike the Hill visits in Washington, D.C.” is intended to give credit union representatives the opportunity to meet with Senate and House members. During Capital Day, both the state Senate and House each passed a resolution recognizing International Credit Union Week. -