June 2019

In this issue, we cover the 2019 Legislative Session and what it means for Louisiana credit unions. Additionally, Dennis Dollar weighs in on the latest move by the NCUA concerning Risk Based Capital in an exclusive partner update for member credit unions.

2019 State Legislative Session Recap: New Laws Affecting Louisiana Credit Unions
The Louisiana Legislature kicked off the 2019 session on April 8 and concluded Thursday June 6, with the fall elections sitting in the back of everyone's minds. Most members, along with Gov. John Bel Edwards, will be up for re-election so lawmakers were reluctant to take big risks just a few months before they appear on the ballot.

Prior to the April 8th start date your league was deep in the trenches attending functions, and monitoring more than 140 bills in addition to our own that could potentially impact credit unions. 

With the help of our strategic partners Adams & Reese, and Kudulis, Reisinger, Price (KRP), LCUL drafted Senate Bill 126: Safety Deposit Abandonment, Beneficiary Deposit Cap, Expelling Members with Cause. Senator Ed Price and credit union representatives introduced Senate Bill 126, which was voted favorably from both the Senate and House Commerce Committees prior to being signed on June 11.  

Wynter Roy (EFCU Financial) and Jeff Conrad (Pelican State CU) testified on behalf of Louisiana credit unions along with Bob Gallman, LCUL CEO, and Rob Rieger with Adams & Reese (pictured above)  on both committee hearing dates.

During the course of the session, the original list of monitored bills was downsized to 56. Of those 56, eight passed that would directly impact credit unions in some capacity. So what do these new laws mean for you? With the help of KRP, we've put together a summary of those bills and the impact they will have on Louisiana credit unions.

Click here to download the summary.

These topics and more will be covered at LCUL's upcoming New Laws & Compliance Conference set for October 9-10 at the Golden Nuggets in Lake Charles.

Dennis Dollar Weighs In on NCUA Board Extending Risk-Based Capital Effective Date
Last Thursday, League partner Dollar Associates, LLC distributed a client update regarding NCUA extending the risk-based capital effective date, virtually ensuring it will never go into effect. In the update, Dennis Dollar provides an interesting perspective on what this means for credit unions. With ten years of market changes, two NCUA Chairman ascensions and at least one serious congressional effort to delay RBC from going into effect as scheduled, he believes that this action - by far the most significant indicator of what to expect from the NCUA Board under new Chairman Rodney Hood - will require the RBC rule to be re-written dramatically if it is to ever become effective.

Click here to download the latest Dollar Associate Client Update.

LCUL  provided comment last year on the proposed changes to the Rule.  In the letter, LCUL supported NCUA's proposed changes to the Rule, however the delay in the effective date of the Rule should be used to continue to find ways to improve the Rule.  Click here to read the comment letter.