March 2008

Issue 3

To our member credit unions,

CUNA GAC Highlights

The CUNA Governmental Affairs Conference (GAC) brought more than just record breaking attendance with over 4700 credit union leaders from across the U.S. (including 54 from Arizona), the event brought quite a bit of excitement. The four day long conference consisted of some rather GAC 2008 high profile keynote speakers such as: General Colin Powell, Chris Matthews, and Dave Barry. The breakout sessions provided both internal and external expert advise from a 360-degree angle on topics including: political & legislative, operational, growth and leadership. Excitement grew as GAC attendees learned of some new legislative developments such as CURRA: the New House Bill introduced on day 1 of the GAC, CURIA's twin Senate Bill that was introduced on day 3 of the GAC, and the much anticipated hearing on CURIA held on day 4 of the GAC. Capitol Hill was of course a major stop for many of the conference attendees. With all these new developments, there was no shortage of fresh information to bring to the Hill Visits. During the evenings, there were awards dinners, receptions and entertainment of plenty including: The World Council of Credit Unions (WOCCU) Reception held at the Embassy of the People's Republic of China, The 20^th Annual Herb Wegner Memorial Awards Dinner, the ACUL hosted reception, Late Night at the GAC (featuring comedian Robert Klein), and The Dora Maxwell Awards Reception.

CURRA: Pushing the possibility of some reg relief:

In addition to CURIA, Congressman Paul Kanjorski (D-Pa) and Congressman Ed Royce Linda Dhaemers, Rep. Giffords, Linda Kennedy, Pat Bodner

(R-Calif.) introduced a new credit union bill on Monday, March 3rd. The two lead sponsors of CURIA introduced The Credit Union Regulatory Relief Act, H.R. 5519 (CURRA) that contains many of the provisions of CURIA but does not contain language to increase credit union member business lending or transform prompt corrective action. This move will bring some regulatory relief to credit unions now while we continue to work on the improvements to member business lending and prompt corrective action. This is part of an overall legislative strategy.

At long last CURIA has an identical twin sister in the Senate:

After actively and avidly promoting the House Bill, CURIA for over a year, we have the ability and option to focus our efforts even further. On Wednesday, March 5^th, Senator Mary Landrieu (R-La) and Senator Joe Lieberman (I-Ct) announced that they were introducing CURIA in the Senate. This bill mirrors exactly what was introduced last March in the House. After Senator Landrieu made her announcement to a cheering GAC crowd, CUNA President Dan Mica joined her onstage and lauded her as "a brand new credit union hero." He also urged the attendees to "let our 90 million members know" in newsletters and in the media. This is the first credit union regulatory improvement introduced in the US Senate.

Finally a Hearing on CURIA:

House Financial Services Committee held a full committee hearing Thursday, March 6th on CURIA. Tom Dorety, CUNA witness and Chairman, made an honest and exceptional case for credit unions and was clearly ahead of the game. Several Members of Congress asked credit union friendly questions and peppered the bankers with comments and questions exposing their inherent weaknesses. This is the kind of movement and attention we have been working towards. All the office visits, phone calls, hike-the-hills, etc. are making a difference. Getting legislation passed in the current environment in Congress is a tough job. We are moving the ball where others are not. Hang in there, the hard work is paying off, and we have every reason to believe that we are on a path to some much-needed legislative relief. If you would like to watch an archived copy of the hearing, click here.

Tempe Schools CU Receives Award Recognition

Tempe Schools Credit Union was presented with a Dora Maxwell Social Tempe Schools receives Dora Maxwell Award with Congressman Harry Mitchell Responsibility Honorable Mention at the CUNA GAC. The Awards reception was held on Wednesday, March 5th where the award was given to credit unions that show longstanding commitment and dedication to community involvement, chapter involvement & credit union development, and commitment to serving the under-served. Tempe Schools received this award in the $100 million-$200 million asset category. Congratulations to Tempe Schools! They are an example and an inspiration to Arizona credit unions, successfully driving home what credit unions are all about, "Where people are worth more than money".

Legislative & Governmental Affairs Update

Matters of Interest from the State Capitol

Lien Perfection Update:
In early February the Arizona Credit Union League began pushing legislation to fix a loophole in the state bankruptcy law and lien perfection. Due to this, an amendment was added to H.B. 2169 that would increase the required timeframe for a lien to be perfected from 10-days to 30-days. We are happy to report that on March 10th the bill passed the Arizona House of Representatives by a vote of 54-3 and has since been sent to the Senate Transportation Committee. If the bill passes the Senate, it will be sent to the Governor for her signature.

Budget Bill Vetoed: On March 12th, Governor Janet Napolitano vetoed a spending freeze bill that passed the legislature earlier in the month. The house passed the bill by a vote of 33-24 and the Senate 17-13. The bill would have frozen state agencies from spending about $580 million. In her veto letter, Gov. Napolitano said that the bill was rejected because it was not a comprehensive plan to handle the budget deficits. Republican leaders said the move was intended to guarantee agencies did not spend all of the money before a solution was made.

Political Affairs & Grassroots Update

The Point of Political Involvement

If you are familiar with the Credit Union Difference (CU Difference) then you are already aware that your employment establishment is not just your run of the mill financial institution. Sure, you provide savings & loans and break room conversation conversation can sometimes be monopolized by current interest rates. When you look around I'm positive you see programs that promote growth as well as programs that prevent loss. Sounds pretty standard, right? But the CU Difference is about people and therefore "social", not necessarily "political", per se.

So the question still begs. Why is political involvement a central driving force in the credit union movement? The answer can be so simple; many of us look right past it. All credit unions are governed by either a state or federal law. Anything that involves the government involves politics. Anything that involves politics involves votes. Votes are the ultimate power in politics; votes for the candidate as well as floor votes for the policy at hand (i.e. CURIA).

The more politically involved credit unions are in the electoral process, the more influence they have in who is representing the credit unions' best interest everyday at the Capitol. Credit unions that encourage political involvement are being proactive in the decision making process to benefit the future of the credit union movement.

Upcoming Political Involvement Opportunities

Arizona Credit Union League invites you to join Congressman Shadegg and his campaign staff to learn more about the Congressman, his platform & what it means for his district (including credit unions), and enjoy a CD 3 Campaign Walk.

When: Saturday April 12th, 2008

8:30 AM to 11:30 AM

Where: First Edition Community Credit Union

10440 N. 32nd St.

Phoenix, AZ 85028

(32nd St & Shea)

For more information contact:

Joy Audet

(602) 264-6701 x 203

Invitation

Credit Unions In the Community

ACUF Offers Scholarship to the World CU Conference in Hong Kong

The Arizona Credit Union Foundation is now accepting applications for the Gary L. Plank Young Credit Union Person scholarship. This scholarship will provide funds to send one young person under the age of 35 to the WOCCU World Credit Union Conference in Hong Kong July 13-16, 2008.

For the past seven years, the Foundation has offered this scholarship to help ensure the future of the credit union movement. The WYCUP program through the World Council is designed to increase the participation of young people throughout the international credit union movement and to recognize outstanding young people who have demonstrated the potential to become the credit union leaders of tomorrow.

Do you have a shining star at your credit union? If so, the nomination form can be found on the ACUS website www.azcreditunions.coop. The nomination form and required documentation must be submitted to the Foundation no later than May 7, 2008. For more information please contact Sandy Watts, 602-264-6701 x 202 or 800-352-0387 x 202.

Regulatory & Compliance Update

This Month in Compliance

Upcoming Legal Update Seminar

The Arizona Credit Union System is pleased to present the 2008 Legal Update Seminar conducted by Eric North. This seminar, being held on March 26^th, will leave you with valuable information and insight into legal trends and compliance matters. Registration details

New FinCen Ruling: CTR filings

FinCen has issued a new ruling intended to clarify currency transaction reports (CTRs) involving sole proprietorships and DBA(s). NCUA's online analysis

NCUA Issues Opinion on Member Business Lending

A recent NCUA opinion letter addresses how credit unions can engage in member business lending without incurring substantial costs in staff hiring. NCUA's opinion letter on Member Business Lending.

Documented Review Recommended For Real Estate Appraisals

Although not a requirement, NCUA issued a recent opinion letter encouraging credit unions to document their review of real estate appraisals in accordance with NCUA's appraisal regulations. NCUA's opinion letter on real estate appraisals.

Confused About Trust Accounts?

CUNA is conducting a webinar on the basics of credit union trust accounts on April 22, 2008. Sign up and learn how to handle these increasingly popular accounts. As an added bonus, with your free CU360 subscription, you will receive a 50% discount off of registration for this event.

http://training.cuna.org/calendar.php?display=webinar

In This Issue

Legislative & Governmental Affairs Update

Political Affairs & Grassroots Update

Credit Unions in the Community

Regulatory & Compliance Update

Credit Union Advocacy Training Core!

System Advocate Spotlight

Election Center 2008

Upcoming Events & Important Dates to Remember

March 26^th, 2008

Legal Update Seminar

Arizona State CU - Phoenix

April 12^th, 2008

Meet & Greet and CD3 Campaign Walk with Rep. John Shagegg

May 7^{th, 2008}

VOS Education Dinner

Airport Hilton

May 13^th, 2008

SO AZ Education Dinner

Tucson Sheraton

June 12th-14th, 2008

ACUS Annual Meeting

Starr Pass Resort & Spa: Tucson

July 15th-25th, 2008

Western CUNA Management School

Credit Union Advocacy Training Core!

CUNA has recently launched their new Advocacy Training Core, an online advocacy-training program. The program is designed to draw more political involvement by creating the best, most informed credit union advocates on both the state and national level.

The program is offered through CPD online, which is CUNA's web-based training service. CPD online offers over 200 courses from accounting to Spanish and now through the new advocacy courses, all credit union staff members and volunteers are eligible to become Certified Credit Union Advocates upon completion of the following four courses: Communicating the Credit Union Difference, Direct Lobbying at the Grassroots Level, Campaign Involvement, Public Affairs & Communications Strategies.

All levels of credit union employees are welcome and encouraged to participate. Political involvement begins with education and remains an ever-evolving world. Continuing education for even the most seasoned and the most politically involved can only help in a positive way.

To register for these courses: click Advocacy Training Core

REAL Solutions

Programs to help credit unions provide real services to real people. Now offered through your Arizona Credit Union League. Click the icon to inquire about the most up to date information regarding this exciting new product.

System Advocate Spotlight

Shining Credit Union Individuals

Congressman Raul Grijalva

U.S. House of Representatives

(D-7)

A Champion for Arizona Credit Unions in Washington D.C.

Last month, in February, on Super Tuesday several individuals representing Arizona credit unions stood outside the polling stations and collected approximately one hundred signatures to ensure Congressman Grijalva would be on the ballot this fall. When Congressman Grijalva has a campaign event, we promote it and ask those who are interested and able to, attend. To be honest, what we do for Congressman Grijalva is simply just not enough. The support that he shows for the credit union movement goes above and beyond and credit union leaders should equally reciprocate that support.

I was fortunate enough to have the opportunity to ask the Congressman a few questions. In his response, he shared with me that the root of his support for the credit union movement really lies in the cooperative structure. He said, "Credit unions have brought people together, allowed them to share their resources, and served the financial needs of their members in good times and bad."

Congressman Grijalva is currently the only Arizona Congressman to co-sponsor CURIA and his support for it extends back to its introduction. He strongly supports this piece of legislation for many reasons including his support for the cooperative structure, and the credit union's tax-exempt status, which both help keep lower interest rates and fees, which is good for his constituency and the people of Arizona in general. But his support for CURIA can really be summed up in these two sentences. "This bill works to modernize credit union net worth standards, advance credit union efforts to promote economic growth, and make needed modifications to credit union activities, governance, and oversight. These changes will help update how credit unions are run, while maintaining stringent but fair regulation and oversight."

Congressman Grijalva is in his third term as a member of Congress and serves the 7^th district of Arizona. He serves as a member of the Committee on Education and Labor, on the Committee on Small Business, and is also a member of the Committee on Natural Resources.

CURIA Update

148 Co-Sponsors