One might say credit unions in the Golden State – the home of two 2016 CU Times Trailblazer Award winners – are on a roll when it comes to political action.

Jeremy Empol, vice president of federal government affairs for the California and Nevada Credit Union Leagues, said the league takes an aggressive approach to ensure its credit union members are engaged in state and federal advocacy.

“Our membership is fired up and they're engaged,” he said. “They are proactive and they're a part of the process that makes it possible for us as the advocacy team to bring successes.”

As part of that engagement, credit union members in California and Nevada work to ensure their members of Congress understand the importance of regulations and laws in the credit union space. This is evidenced by the number of local politicians who have signed letters in favor of credit union initiatives.

For example, 10 members of Congress from California and Nevada recently wrote to the NCUA supporting the field of membership proposal. This was a huge accomplishment for the league, according to Empol, as no other members of Congress wrote to the NCUA in support of the proposal.

Members of Congress who wrote in support of the FOM proposal from California and Nevada included: Reps. Pete Aguilar (D-Calif.), Paul Cook (R-Calif.), John Garamendi (D-Calif.), Brad Sherman (D-Calif.), Ted Lieu (D-Calif.), Doug LaMalfa (R-Calif.), Linda Sanchez (D-Calif.), Ami Bera (D-Calif.), Joe Heck (R-Nev.) and Sen. Barbara Boxer (D-Calif.).

In their joint letter on the FOM proposal, Aguilar and Cook highlighted how the county of San Bernardino – which they share as part of their districts – would be a beneficiary of the new rule.

Empol, who has a background as a lobbyist, said the league's success in the political action space stems from its ability to give members of Congress their constituents' support as well as their credit union members' active support for members of Congress.

“We are able to draw these successes out there and get that feedback from members of Congress putting pressure on the NCUA, or in the case of the FOM rule or the MBL rule, making sure the NCUA has that congressional support so it can carry out that function that will help credit unions,” he said.

In the case of the MBL rule, Empol said California and Nevada credit unions have marked the bill as a priority.

“Our membership depends on us to fulfill their requests, so we've been out there and we've educated members of Congress,” he said.

Empol said of the 10 letters from members of Congress on the MBL rule, nine were from California and one was from Nevada.

Still, the need for support does not end when a rule is finalized. Empol said after the RBC2 rule was complete, he and the league teamed with Rep. Juan Vargas (D-Calif.) to pen a letter to the NCUA expressing concerns about the rule and its potential unintended consequences. The letter, which 12 members of Congress signed, asked the NCUA to consider the concerns.

One part of educating members of Congress includes demonstrating the impact a proposal or rule would make on their constituents. Empol said he draws upon the experiences of the leagues' members for examples of how a rule will either work in favor of a Congress member's district or harm a credit union's ability to serve its members.

For example, a credit union CEO might tell his or her elected official about the obstacles preventing the credit union from doing more business lending, or provide testimonials on the number of jobs the credit union could create after a particular measure is passed, Empol explained.

The cyclical nature of the membership supporting the league and the league supporting the membership also enables success, he said.

“Together we launch this very aggressive advocacy and the results speak for themselves,” Empol said.

Engagement begins with a commitment from the leagues' board and management, Empol said, adding that boards are fully engaged, which helps foster support from member credit unions.

“They do that because of the understanding of their role in advocacy,” he added. “They all have that 100% commitment.”

Peer-to-peer support often allows CEOs who understand the importance of advocacy to speak with other credit union executives, fostering engagement and understanding – and bringing advocacy to a credit union that may not be as engaged.

“It spreads. It's almost viral,” Empol said of the efforts.

He said even some of the smaller credit unions head to the GAC and consider it a priority.

“All of that comes back together,” Empol said, noting that after GAC, one small credit union will tell other small credit unions about its experience, such as how it signed up for a payroll deduction program to provide donations to CULAC, CUNA's Political Action Committee.

“That's part of advocacy,” he said. “That's one-on-one member contact. That's peer-to-peer.”

Thanks to the PAC's efforts, local credit union members can support political candidates who back credit union initiatives.

“It's great to go to Congress and ask them to introduce a bill, but if the membership doesn't want it, then they aren't going to have the votes,” Empol said. “Members of Congress do what their constituents want.”

He added, “Our members have been engaged, and they want the league and CUNA to be successful.”

Part of that success, he said, stems from the presence of two California congressmen who understand the importance of the credit union movement. With Rep. Ed Royce (R-Calf.) and Sherman in their corner, California and Nevada credit unions have two of the best credit union supporters in Washington. Both are popular speakers at credit union-sponsored events and conferences; Empol called them the pentacle of credit union supporters and experts on credit union issues.

Both sit on the influential House Financial Services Committee and signed onto a recent letter penned by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio) calling for CFPB Director Richard Cordray to use the bureau's Dodd-Frank Act authority under section 1022(b)(3)(a) to adapt regulations to exempt any class of entity from its rulemakings.

The league worked with CUNA to create the initiative, which is why Schiff is one of the lead authors, a league spokesperson said. At press time, 329 bipartisan Representatives had agreed to sign, which represents more than 75% of the House. Thirty-nine of California's 53 representatives and all four from Nevada have also agreed to sign.

“Our members do this fantastic job in advocacy and it helps what we are able to accomplish in Congress,” Empol said. “I cannot make an ask of Congress without the support and the engagement of the credit unions.”

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